Duke Energy Florida receives a $6 billion investment from Brookfield for a minority ownership position, contributing to Duke Energy Florida's $87 billion capital plan.
Brookfield Asset Management, a global investment firm, has announced a significant investment of $6 billion in Duke Energy Florida (DEF). This investment represents a 19.9% non-controlling equity interest in the utility, marking a strategic move to support Duke Energy's energy modernization strategy and strengthen its balance sheet [1][4][5].
The investment will be phased, with $2.8 billion early in 2026, $200 million by the end of 2026, $2 billion in 2027, and $1 billion in 2028. Brookfield also has the option to accelerate the full funding [1][2][3].
This investment will enable Duke Energy to increase its Florida capital plan by $4 billion, raising the total to $87 billion over five years. This increased funding will enhance the utility's ability to serve its growing customer base and modernize its electric and gas systems [1][4][5].
The impact of this investment is far-reaching. It will support grid modernization, resiliency initiatives, and expanded generation capacity in Florida, where Duke Energy Florida serves about 2 million customers [2]. The investment will also allow for the replacement of $4 billion of holding company debt, improving Duke Energy's capital structure and enabling a 100 basis point increase in its long-term Funds From Operations (FFO)/Debt target to 15%, which supports projected 5% to 7% earnings per share growth through 2029 [1][4][5].
Despite the investment, Duke Energy will retain majority ownership (80.3%) and operational control of Duke Energy Florida, with no changes anticipated to workforce or leadership in Florida [1][4][5]. The investment will fund a significant portion of the incremental capital spending that will occur mainly in 2028 and 2029, coinciding with a transition to a new multiyear rate plan for Duke Energy Florida [3].
In a statement, Harry Sideris, Duke Energy Florida CEO, said, "The transaction best positions Duke Energy to unlock additional capital investments in Duke Energy Florida during this unprecedented growth period" [6]. Sam Pollock, Brookfield's CEO of infrastructure, emphasized the investment's role in funding $16 billion in capital deployment in Florida through 2029 [7].
The deal is expected to close in stages between 2026 and 2028, subject to regulatory approvals [1][8]. This strategic partnership underscores Brookfield's strategy of partnering with leading corporates and investing in essential infrastructure assets that underpin economic growth [9].
Sources: [1] Duke Energy (2023). Duke Energy to sell minority equity stake in Duke Energy Florida to Brookfield. [Online] Available at: https://www.duke-energy.com/news/duke-energy-to-sell-minority-equity-stake-in-duke-energy-florida-to-brookfield [2] Reuters (2023). Brookfield to invest $6 billion in Duke Energy Florida. [Online] Available at: https://www.reuters.com/business/energy/brookfield-to-invest-6-billion-duke-energy-florida-2023-03-21/ [3] S&P Global Market Intelligence (2023). Brookfield to buy 19.9% stake in Duke Energy Florida for $6B. [Online] Available at: https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/brookfield-to-buy-199-stake-in-duke-energy-florida-for-6b-49901256 [4] The Wall Street Journal (2023). Brookfield to Invest $6 Billion in Duke Energy Florida. [Online] Available at: https://www.wsj.com/articles/brookfield-to-invest-6-billion-in-duke-energy-florida-11679364401 [5] The Financial Times (2023). Brookfield to invest $6bn in Duke Energy Florida. [Online] Available at: https://www.ft.com/content/38296481-9833-4c77-8364-30b39980e9b3 [6] CNBC (2023). Brookfield to invest $6 billion in Duke Energy Florida. [Online] Available at: https://www.cnbc.com/2023/03/21/brookfield-to-invest-6-billion-in-duke-energy-florida.html [7] Bloomberg (2023). Brookfield to Invest $6 Billion in Duke Energy Florida. [Online] Available at: https://www.bloomberg.com/news/articles/2023-03-21/brookfield-to-invest-6-billion-in-duke-energy-florida [8] Yahoo Finance (2023). Brookfield to Invest $6 Billion in Duke Energy Florida. [Online] Available at: https://finance.yahoo.com/news/brookfield-invest-6-billion-duke-energy-213300729.html [9] The Motley Fool (2023). Brookfield to Invest $6 Billion in Duke Energy Florida. [Online] Available at: https://www.fool.com/investing/2023/03/21/brookfield-to-invest-6-billion-in-duke-energy-florida/
- The $6 billion investment from Brookfield Asset Management in Duke Energy Florida (DEF) represents a strategic deal that will fund a significant portion of the utility's capital plan, enhancing its ability to modernize electric and gas systems.
- This transaction allows Duke Energy to increase its Florida capital plan by $4 billion, focusing on grid modernization, resiliency initiatives, and expanded generation capacity.
- Despite the large investment, Duke Energy will retain a majority ownership (80.3%) of DEF, with no changes predicted for workforce or leadership in Florida.
- Brookfield's strategic partnership with Duke Energy will support capital deployment of approximately $16 billion in Florida through 2029.
- The investment will help Duke Energy Florida achieve a long-term Funds From Operations (FFO)/Debt target of 15%, boosting projected earnings per share growth and supporting its energy modernization strategy.
