Duke Energy Agrees To Sell Commercial Distributed Generation Business For $364 Mln

(RTTNews) - Duke Energy Corp (DUK) on Wednesday said it agreed to sell its commercial distributed generation business to an affiliate of ArcLight Capital Partners, LLC a middle market infrastructure investor for $364 million.

The sale of distributed generation business includes REC Solar operating assets, development pipeline, O&M portfolio, and distributed fuel cell projects managed by Bloom Energy.

Duke believes the deal will support its focus on growing its regulated businesses, including investments to enhance grid reliability and help incorporate over 30,000 megawatts of regulated renewable energy onto its system by 2035.

The company expects around $259 million of proceeds from this deal, which it intends to use to strengthen the balance sheet and avoid additional holding company debt issuances associated with these assets.

The transaction is expected to close by the end of 2023.

Employees of the distributed generation business will move to ArcLight.

In pre-market activity, shares of Duke are trading at $90.17 down 0.61% or $0.55 on the New York Stock Exchange.