Duke Energy completes sale of renewables business to Brookfield
Duke Energy completed the sale of its unregulated utility-scale Commercial Renewables business to Brookfield.
The company will use the proceeds from the transaction to strengthen its balance sheet and avoid additional holding company debt issuances. This, in turn, will allow the company to focus on the growth of its regulated businesses. This focus includes investments to enhance grid reliability and help incorporate over 30,000 megawatts of regulated renewable energy into its system by 2035.
“The completion of this sale marks the final step in our transition to a fully regulated utility,” Lynn Good, Duke Energy chair, president, and CEO, said. “As we work to address the growing needs of our customers in our regulated jurisdictions, we will continue investing in cleaner energy resources and significant grid enhancements that will deliver value and energy resiliency to our customers and stakeholders.”
The primary operations of the Commercial Renewables business will remain in Charlotte, N.C. The Duke Energy employees that support the business will transition over to Brookfield to maintain business continuity for its operations and customers.
Morgan Stanley and Wells Fargo Securities are serving as financial advisors to Duke Energy for this transaction. Further, Skadden, Arps, Slate, Meagher & Flom is serving as legal counsel to Duke Energy.
The sale agreement was previously announced on June 12, 2023.
Duke Energy, based in Charlotte, serves 8.2 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio, and Kentucky. Its natural gas unit serves 1.6 million customers in North Carolina, South Carolina, Tennessee, Ohio, and Kentucky.
