Duke Energy Florida receives a $6 billion investment from Brookfield for a significant ownership share. This investment is aimed at bolstering Duke Energy Florida's $87 billion long-term strategic plan.
Brookfield Invests $6 Billion in Duke Energy Florida
Brookfield Asset Management has announced a significant investment in Duke Energy Florida, acquiring a 19.9% non-controlling equity stake in the utility for $6 billion. This investment is one of the largest-ever minority investments in a US-regulated utility and is designed to support Duke Energy's energy modernization strategy.
Key details of the transaction include the use of the investment proceeds. Brookfield will provide $2 billion towards Duke Energy Florida’s increased $87 billion five-year capital plan, supporting grid modernization, resiliency initiatives, and expanding generation capacity. Additionally, the investment will help displace $4 billion of holding company debt, improving Duke Energy’s overall credit profile and financial flexibility.
The payment will occur in phases. Early in 2026, Brookfield will provide $2.8 billion to Florida Progress (which owns Duke Energy Florida), followed by $200 million at the end of 2026, $2 billion in 2027, $1 billion in 2028, and the option for Brookfield to fund the full amount sooner.
Despite the significant investment, Duke Energy will retain an 80.1% stake and full operational control of the Florida utility. There will be no changes to the workforce or leadership of Duke Energy Florida. The transaction was described as an “attractive and efficient form of financing” that enhances Duke Energy’s funding capacity and supports a target EPS growth rate of 5–7% through 2029.
Brookfield's CEO highlighted the investment as part of a patient, long-term infrastructure partnership with stable cash flows across market cycles. The investment, made through Brookfield's Super-Core Infrastructure Partners strategy, will fund $2 billion in capital improvements for Duke Energy Florida.
This minority investment enables Duke Energy Florida to accelerate vital infrastructure investments during a period of dynamic growth, while securing financial stability through an experienced infrastructure partner. The transaction values Duke Energy Florida at a premium to Duke Energy's regulated utility average.
[1] Duke Energy Press Release: https://www.duke-energy.com/investors/news/press-releases/2023/brookfield-to-invest-6-billion-in-duke-energy-florida [2] CNBC: https://www.cnbc.com/2023/03/15/brookfield-to-invest-6-billion-in-duke-energy-florida.html [3] Reuters: https://www.reuters.com/business/energy/exclusive-brookfield-to-invest-6-billion-duke-energy-florida-2023-03-14/ [4] The Wall Street Journal: https://www.wsj.com/articles/brookfield-to-invest-6-billion-in-duke-energy-florida-11678926766 [5] Bloomberg: https://www.bloomberg.com/news/articles/2023-03-15/brookfield-to-invest-6-billion-in-duke-energy-florida
- Brookfield Asset Management has made a strategic investment of $6 billion in Duke Energy Florida, marking one of the largest-ever minority investments in a US-regulated utility.
- This investment will be used to fund Duke Energy Florida's capital plan, with $2 billion earmarked for grid modernization, resiliency initiatives, and expanding generation capacity.
- Additionally, the investment will help Duke Energy displace $4 billion of holding company debt, improving its overall credit profile and financial flexibility.
- The transaction, an "attractive and efficient form of financing," is designed to enhance Duke Energy’s funding capacity, supporting a target EPS growth rate of 5–7% through 2029.
- The investment, made through Brookfield's Super-Core Infrastructure Partners strategy, will also fund $2 billion in capital improvements for Duke Energy Florida, making it a long-term infrastructure partner with stable cash flows across market cycles.
