Power company Duke Energy plans to sell a $6 billion stake in its Florida utility division to Brookfield, a leading investment firm.
Brookfield Investing $6 Billion in Duke Energy Florida
In a significant move, infrastructure investor Brookfield is set to acquire a 19.7% indirect equity interest in Duke Energy Florida for $6 billion. The transaction, which is expected to close in early 2026, will occur in phases, with the first closing slated for early next year.
The partnership is a strategic financing move for Duke Energy, aimed at strengthening its balance sheet and funding its capital needs. For Brookfield, it underscores their patient strategy of partnering with leading corporates and investing in essential infrastructure assets.
The investment will primarily be used for grid modernization, resiliency projects, and enhancements to generation capacity. $2 billion will fund Duke Energy Florida's expanded five-year capital plan, which has grown to $87 billion, supporting the state's rapidly growing energy demands. The remaining $4 billion will be used to reduce Duke Energy’s holding company debt, thereby strengthening its credit profile.
Duke Energy will retain an 80.3% majority ownership and continue to operate Duke Energy Florida with no changes to workforce, operations, or local leadership. Brookfield, with over $200 billion in assets under management, will hold a long-term, non-controlling stake, receiving governance rights proportional to its ownership.
The deal is expected to facilitate accelerated investments in Duke Energy Florida’s grid modernization and resiliency initiatives, funding the enhancement of generation capacity, and strengthening Duke Energy’s financial position. This, in turn, aims to maintain affordable prices for customers while allowing sustainable capital improvements.
Harry Sideris, president and chief executive officer of Duke Energy, expressed pleasure in partnering with Brookfield for Duke Energy Florida. Melissa Seixas, Duke Energy Florida state president, stated that the partnership will create value for all communities as they invest in generation, transmission, and distribution enhancements. Sam Pollock, chief executive officer of Brookfield's infrastructure group, is equally excited about the partnership.
The transaction is subject to regulatory approvals, including from the Federal Energy Regulatory Commission, the Nuclear Regulatory Commission, and the U.S. Committee on Foreign Investment. RBC Capital Markets and JP Morgan Securities are serving as financial advisors for Brookfield and Duke Energy, respectively. Skadden, Arps, Slate, Meagher & Flom and Kirkland & Ellis are serving as legal advisors for Duke Energy and Brookfield, respectively.
The new investment will help fund a $4 billion increase in Duke Energy Florida's five-year capital plan, bringing total investment in the state to more than $16 billion by 2029. The deal at a compelling valuation will unlock additional capital investments in Duke Energy Florida during a growth period. Prices for Duke Energy's customers are expected to remain as low as possible due to the partnership.
Brookfield looks forward to supporting the growth of Duke Energy Florida's regulated asset base and ensuring excellent service delivery for its customers. The enhancements are aimed at increasing reliability, maintaining affordability, and supporting future economic development in the state.
The strategic financing move by Duke Energy to partner with Brookfield in acquiring a stake in Duke Energy Florida will primarily be used for grid modernization, resiliency projects, and enhancements to generation capacity. This investment, part of Duke Energy's expanded five-year capital plan of $87 billion, will also help reduce Duke Energy’s holding company debt.
For Brookfield, the investment in Duke Energy Florida underscores their patient strategy of partnering with leading corporates and investing in essential infrastructure assets, particularly those in the finance and energy sectors.
