Duke Energy Sells 20% Stake in Florida Unit for $6 Billion

U.S. electric utility company Duke Energy has agreed to sell a 19.7% indirect stake in its Florida operations to infrastructure investor Brookfield for $6 billion in cash. This transaction is part of Duke’s strategy to support an expanded capital spending plan over the next five years, which totals $87 billion.

According to the terms of the definitive agreement, Brookfield will invest in Florida Progress, the entity that owns all of Duke Energy Florida. The acquisition will be executed in phases. At the first closing, expected in early 2026, Florida Progress will receive $2.8 billion, followed by an additional $200 million by the end of that year. In 2027, Brookfield will transfer another $2 billion, with the final $1 billion scheduled for 2028. Duke Energy indicated that Brookfield has the option to accelerate the total investment of $6 billion.

The proceeds from this sale will be allocated strategically. A total of $2 billion will be directed towards Duke Energy’s capital plan, while the remaining $4 billion will serve to reduce the holding company’s debt. The firm highlighted that Duke Energy Florida is a vertically integrated utility provider serving approximately 2 million customers across central and western Florida.

“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,” stated Melissa Seixas, the state president of Duke Energy Florida.

Duke Energy’s electric utilities collectively serve 8.6 million customers across various states, including North Carolina, South Carolina, Florida, Indiana, Ohio, and Kentucky. Recent months have seen an uptick in capital spending plans among U.S. power utilities, driven by rising demands from major technology companies for new power capacity. The surge in artificial intelligence and the expansion of data centers are particularly influencing this trend.

The Financial Times reports that electric utilities in the United States are poised to increase their spending by 22.3% this year alone, as they seek to secure new electricity supplies necessary for meeting the growing demands of data centers.

Duke Energy’s decision to partner with Brookfield reflects a broader trend in the energy sector, where utilities are actively seeking to modernize and expand their infrastructure to accommodate the needs of a rapidly evolving marketplace. The financial backing from Brookfield is expected to play a crucial role in facilitating these initiatives.