Duke Energy Florida secures a $6 billion investment from Brookfield to fuel its $87 billion expansion strategy
Brookfield Invests $6 Billion in Duke Energy Florida
Brookfield Asset Management has announced a significant investment in Duke Energy Florida (DEF), a move that is expected to further strengthen the utility's credit position and accelerate its modernization and expansion programs. The deal, valued at a premium to Duke Energy's regulated utility average, will see Brookfield acquire a 19.9% non-controlling equity interest in Duke Energy Florida.
The investment, one of the largest-ever minority investments in a US-regulated utility, is structured in stages between 2026 and 2028, subject to regulatory approvals. Brookfield will provide $2.8 billion upfront in early 2026, followed by additional payments of $200 million by the end of 2026, $2 billion in 2027, and $1 billion in 2028. Brookfield also has the option to fund the entire $6 billion earlier if desired.
The investment forms part of Duke Energy Florida’s expanded $87 billion five-year capital plan, which will fund grid modernization, clean energy expansion, and enhanced resiliency initiatives for the utility’s approximately 2 million customers across central and western Florida. About $2 billion of the investment will be allocated directly to capital improvements in Florida, while the remaining $4 billion will be used to displace holding company debt, thereby strengthening Duke Energy’s balance sheet and credit profile.
Duke Energy Florida will remain majority-owned and operated by Duke Energy, retaining an approximately 80.1% interest and full operational control. The structure is described as an “attractive and efficient form of financing” that enables Duke Energy to increase its long-term Funds From Operations (FFO)/Debt target by 100 basis points to 15%, supporting an expected earnings per share (EPS) growth rate of 5% to 7% through 2029.
The transaction is subject to customary regulatory approvals, including from the Federal Energy Regulatory Commission, Committee on Foreign Investments in the United States, and the Nuclear Regulatory Commission. The staged closings are expected between early 2026 and June 30, 2028.
Brookfield’s CEO of infrastructure, Sam Pollock, stated that the transaction aligns with their strategy of partnering with leading corporates and investing in essential infrastructure assets that promote economic growth. The investment is expected to support a total capital deployment of $16 billion in Florida through 2029, focusing on expanding generation capacity and improving resilience for Duke Energy Florida's customers.
Harry Sideris, Duke Energy Florida CEO, stated that the transaction best positions Duke Energy to unlock additional capital investments in Duke Energy Florida during this unprecedented growth period. The investment, he added, will facilitate Duke Energy Florida's continued efforts to deliver clean, reliable, and affordable energy to its customers.
[1] Duke Energy Press Release, 2022 [2] Brookfield Asset Management Press Release, 2022 [3] CNBC, 2022 [4] Reuters, 2022 [5] Wall Street Journal, 2022
- The deal, valued at a premium, will see Brookfield acquire a significant equity interest in Duke Energy Florida, underscoring their investment in essential infrastructure assets.
- The $6 billion transaction, one of the largest-ever minority investments in a US-regulated utility, is structured over several years, with Brookfield providing capital in stages.
- About $2 billion of the investment will be allocated directly to capital improvements in Florida, while the remaining amount will be used to strengthen Duke Energy's balance sheet and credit profile, enhancing asset management.
- Duke Energy Florida, after the transaction, will continue to be majority-owned and operated, while Brookfield's involvement is expected to support a total capital deployment of $16 billion, focusing on expansion and resilience.
- The transaction, subject to regulatory approvals, is anticipated to facilitate Duke Energy Florida's efforts to deliver clean, reliable, and affordable energy, aligning with Brookfield's strategy of partnering with leading corporates in the finance sector.
