Duke Energy said last week it will increase its infrastructure investments to $87 billion to meet rising electricity demand and plans to sell part of its Florida business to help fund the expansion.
The Charlotte-based utility raised its five-year capital expenditure plan by $4 billion, joining other major U.S. utilities investing heavily in power lines and generation to support growing demand from AI-focused data centers, transportation electrification, industrial growth and population increases.
Duke will sell a stake in its Florida utility serving about 2 million customers for $6 billion to Brookfield Asset Management. The sale will occur in phases starting next year. The funds will finance Duke’s capital plan and reduce holding company debt.
The company also plans to use proceeds from the recent sale of its Piedmont Natural Gas business in Tennessee to Spire for $2.8 billion, it announced last week.
“The transactions really position the company for the growth ahead with the capital expansion, generation modernization, and grid work in front of us,” Duke Chief Financial Officer Brian Savoy said.
The expanded infrastructure spending will focus primarily on Florida, where residential and commercial electricity demand is rapidly increasing, Savoy said.
Duke operates in six U.S. states. The U.S. Energy Information Administration has forecast record power consumption for 2025 and 2026 nationwide.
The company beat second-quarter profit estimates, sending shares to a record high, rising about 2.5% in trading.
Duke reported adjusted earnings of $1.25 per share, above analysts’ average estimate of $1.18, according to LSEG data. Revenue rose to $7.5 billion from $7.17 billion a year earlier.
Adjusted earnings from Duke’s electric utilities segment increased to $1.19 billion, compared with $1.12 billion in the same quarter last year, boosted by higher retail rates.
The gas utilities segment posted flat earnings of $6 million, weighed down by increased operating and maintenance costs.
Duke expects rate case hearings in the fourth quarter.
