Duke Energy Florida receives $6 billion funding from Brookfield for a minority share, bolstering its $87 billion long-term improvement strategy
Brookfield Invests $6 Billion in Duke Energy Florida
In a significant move for the energy sector, Brookfield Asset Management has agreed to invest $6 billion to acquire a 19.7% minority stake in Duke Energy Florida (DEF). This investment, announced in August 2025, is set to close in stages between 2026 and 2028, subject to regulatory approvals [1][2][3][4].
The investment comes at a crucial time for Duke Energy, as the utility company is accelerating its $87 billion, five-year capital plan. This plan focuses on grid modernization, clean energy expansion, and serving growth in customer demand across Florida, where Duke Energy Florida serves roughly two million electric customers [1][3][4].
With this investment, Duke Energy Florida will be able to allocate $2 billion directly towards capital improvements under the modernization plan. These improvements will enhance infrastructure resilience and expand clean generation capacity. The remaining $4 billion will be used to reduce corporate-level (holding company) debt, thereby strengthening Duke Energy's balance sheet and credit position [1][2][3][4].
The investment will also help fund a total of $16 billion in capital deployment in Florida through 2029. This will expand generation capacity and improve resilience for Duke Energy Florida's 2 million customers [1][4].
The deal values Duke Energy Florida at a premium to Duke Energy's regulated utility average, further strengthening the utility's credit position [1]. Brookfield will remain a passive minority investor with no operational control, while Duke Energy retains an 80.1% majority interest and continues to lead operations and management in Florida [1][3][4].
Financially, the deal is expected to increase Duke Energy's long-term Funds From Operations to Debt (FFO/debt) ratio target by 100 basis points to 15%, and sustain an expected earnings per share (EPS) growth rate of 5% to 7% through 2029 [4][5].
Harry Sideris, Duke Energy Florida CEO, stated that the deal best positions Duke Energy to unlock additional capital investments in Duke Energy Florida during this unprecedented growth period [6].
This investment aligns with Brookfield's strategy of investing in essential infrastructure assets supporting economic growth [1][3][4]. Brookfield was advised by BMO Capital Markets and RBC Capital Markets, with legal support from Latham & Watkins. The deal marks one of the largest-ever minority investments in a US-regulated utility [7].
Citi and Morgan Stanley & Co. advised Duke Energy, while Sullivan & Cromwell and Gibson Dunn served as legal counsel for Duke Energy [8]. Brookfield's CEO of infrastructure, Sam Pollock, has stated that the transaction underscores their patient strategy of partnering with leading corporates and investing in essential infrastructure assets that underpin economic growth [9].
References: [1] Duke Energy Newsroom. (2025, August). Brookfield to Invest $6 Billion in Duke Energy Florida. Retrieved from https://www.duke-energy.com/news/brookfield-to-invest-6-billion-in-duke-energy-florida
[2] Reuters. (2025, August). Brookfield to invest $6 billion in Duke Energy Florida. Retrieved from https://www.reuters.com/business/energy/brookfield-to-invest-6-billion-in-duke-energy-florida-2025-08-01/
[3] Power Technology. (2025, August). Brookfield invests $6bn in Duke Energy Florida. Retrieved from https://www.powertechnology.net/news/brookfield-invest-6bn-in-duke-energy-florida/
[4] S&P Global Platts. (2025, August). Brookfield invests $6 billion in Duke Energy Florida to accelerate capital plan. Retrieved from https://www.spglobal.com/platts/en/market-insights/latest-news/electric-power/082525-brookfield-invest-6-billion-in-duke-energy-florida-to-accelerate-capital-plan
[5] Seeking Alpha. (2025, August). Duke Energy Corporation (DUK) Q2 2025 Earnings Call Transcript. Retrieved from https://seekingalpha.com/article/4458908-duke-energy-corporation-duk-q2-2025-earnings-call-transcript
[6] Duke Energy Florida Newsroom. (2025, August). Duke Energy Florida CEO on Brookfield Investment. Retrieved from https://www.duke-energy.com/news/duke-energy-florida-ceo-on-brookfield-investment
[7] Bloomberg. (2025, August). Brookfield to Invest $6 Billion in Duke Energy Florida. Retrieved from https://www.bloomberg.com/news/articles/2025-08-01/brookfield-to-invest-6-billion-in-duke-energy-florida
[8] Power Magazine. (2025, August). Brookfield to Invest $6 Billion in Duke Energy Florida. Retrieved from https://www.powermag.com/brookfield-to-invest-6-billion-in-duke-energy-florida/
[9] Infrastructure Investor. (2025, August). Brookfield to invest $6bn in Duke Energy Florida. Retrieved from https://www.infrastructureinvestor.com/news/brookfield-to-invest-6bn-in-duke-energy-florida/
- Brookfield Asset Management's $6 billion investment in Duke Energy Florida will enable Duke Energy to allocate $2 billion directly towards capital improvements, enhancing infrastructure resilience and expanding clean generation capacity.
- The deal between Brookfield and Duke Energy is expected to increase Duke Energy's long-term Funds From Operations to Debt (FFO/debt) ratio target by 100 basis points to 15%, and sustain an expected earnings per share (EPS) growth rate of 5% to 7% through 2029.
- The financing for this transaction will allow Duke Energy Florida to fund a total of $16 billion in capital deployment in Florida through 2029, expanding generation capacity and improving resilience for its 2 million customers.
- With this investment, Duke Energy Florida's 2 million customers will benefit from various infrastructure improvements, as the company accelerates its $87 billion, five-year capital plan focusing on grid modernization, clean energy expansion, and serving growth in customer demand.
- The investment by Brookfield aligns with their strategy of investing in essential infrastructure assets supporting economic growth, further expanding their portfolio in the energy sector.
