Duke Energy is partnering with infrastructure investor Brookfield, raising $6 billion in funds to increase capital to allow the electric utility to pay down company debt, maintain credit and expand the company’s existing capital plan.
Duke has entered into a definitive agreement with Brookfield that will provide nearly 20% equity interest for the investor, which holds more than $200 billion in assets under management across utilities, transportation and midstream data sectors.
The investment offers a significant premium to Duke’s current public equity valuation and allows the company to continue serving customers in its rapidly growing electric and gas utilities, while strengthening its balance sheet and expanding access to capital for its modernization strategy.
Of the proceeds, $2 billion will fund Duke’s expanded five-year capital plan, now at $87 billion, and $4 billion will be used to displace debt.
“For more than a century, we’ve had the privilege of serving extraordinary Florida communities, which are now some of the most dynamic and fastest growing in the nation,” Duke President and CEO Harry Sideris said.
“We’re pleased to have Brookfield, a highly regarded infrastructure investor, as a long-term partner in Duke Energy Florida. This significant transaction at a compelling valuation best positions Duke Energy to unlock additional capital investments in Duke Energy Florida during this unprecedented growth period. It also materially strengthens Duke Energy’s overall credit profile, which in turn enables us to invest in our energy modernization plans across our entire footprint — all while helping keep prices as low as possible for our customers.”
Duke Energy provides service to 2 million customers across central and western Florida. Its capital plan had been set at $83 billion, but rose by $4 billion to $87 billion. Duke is funding half of that increase with proceeds from the non-controlling equity transaction. The increase to its capital plan will bring the company’s total investment in Florida to more than $16 billion through 2029.
“We are delighted to partner with Duke Energy in a critical business and premier regulated utility like Duke Energy Florida through Brookfield’s Super-Core Infrastructure strategy. We look forward to supporting the continued growth of Duke Energy Florida’s regulated asset base and, accordingly, ensuring excellent service delivery for its customers,” Brookfield infrastructure group CEO Sam Pollock said.
“This transaction underscores our patient strategy of partnering with leading corporates and investing in essential infrastructure assets that underpin economic growth, and that generate stable long-term cash flows across market cycles.”
The expanded capital plan will include grid modernization and resiliency initiatives, along with generation capacity improvements to support Duke’s expanding customer base. The grid modernization and resiliency plan is a critical component in Florida, where active hurricane seasons consistently cause disruptions to service for customers.
“Duke Energy’s commitment to our customers and communities is unwavering, driving us to continuously find innovative ways to meet the moment for our customers. This exciting partnership allows us to do just that,” Duke Energy Florida state President Melissa Seixas said.
“This partnership will create value for all of our communities as we invest in generation, transmission and distribution enhancements that increase reliability, maintain affordability and support future economic development in our state.”
The transaction structure includes an investment into Duke Energy parent company Florida Progress. The $6 billion transaction will allow Brookfield to acquire indirect equity interest in Duke Energy Florida in phases, with $2.8 billion at the first closing in early 2026 and another $200 million by the end of 2026. Duke will receive another $2 billion in 2027 and $1 billion in 2028. Brookfield maintains the option to fund the total transaction soon.
Duke will retain a more than 80% interest in its business and will continue to operate the utility in Florida, while Brookfield will receive commensurate rights with its ownership interest.
While the deal is definitive, the transaction is still subject to closing conditions, including regulatory approval from the Federal Energy Regulatory Commission and a review by the Committee on Foreign Investment, or a determination that such approval is not required as determined by the Nuclear Regulatory Commission.
JP Morgan Securities LLC is Duke’s financial advisor, with Skadden, Arps, Slate, Meagher & Flom LLP serving as its legal advisor. RBC Capital Markets LLC is serving as Brookfield’s financial advisor, with Kirkland & Ellis LLP serving as its legal advisor.
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