Duke Energy (NYSE: DUK) has announced a definitive agreement to sell its 50% ownership stake in Pioneer Transmission LLC (Pioneer Transmission) to John Laing Group, a global infrastructure investment firm. This strategic move allows Duke Energy to redirect capital towards its ambitious clean energy initiatives.
Pioneer Transmission, a joint venture with American Electric Power (AEP), operates a crucial 42.5-mile, 765-kilovolt transmission line and associated substation assets. This infrastructure, which became operational in 2018, stretches from Greentown Station to Reynolds Station, west of Lafayette, Indiana. It’s important to note that Pioneer Transmission functions independently from Duke Energy Indiana.
The proceeds from this sale are earmarked for reinvestment into Duke Energy’s state-regulated utilities, specifically fueling its ongoing transition to cleaner energy sources. This divestment underscores Duke Energy’s commitment to modernizing its energy grid and expanding its clean energy portfolio.
The transaction is anticipated to be finalized by the end of 2024, pending customary closing conditions. These conditions include regulatory approvals from the Federal Energy Regulatory Commission and the Indiana Utility Regulatory Commission.
BMO Capital Markets is acting as the financial advisor to Duke Energy for this transaction, while Holland & Hart LLP is serving as legal counsel.
About Duke Energy
Duke Energy, a Fortune 150 company headquartered in Charlotte, N.C., ranks as one of the largest energy holding companies in the United States. It provides essential electric services to 8.4 million customers across North Carolina, South Carolina, Florida, Indiana, Ohio, and Kentucky, managing a total of 54,800 megawatts of energy capacity. Furthermore, its natural gas operations serve 1.7 million customers in North Carolina, South Carolina, Tennessee, Ohio, and Kentucky.
Duke Energy is actively pursuing a significant clean energy transition, prioritizing reliability, affordability, and accessibility. The company is dedicated to achieving net-zero methane emissions from its natural gas business by 2030 and net-zero carbon emissions from electricity generation by 2050. This commitment involves substantial investments in electric grid modernization and the integration of cleaner energy technologies, including enhanced energy storage, renewable energy sources, natural gas, and advanced nuclear technologies.
For further details, please visit duke-energy.com and the Duke Energy News Center. Stay updated by following Duke Energy on social media platforms such as Twitter, LinkedIn, Instagram, and Facebook, and explore illumination for stories highlighting the people and innovations driving the energy transition.
Forward-Looking Statements
This announcement contains forward-looking statements as defined by the Securities Act of 1933 and the Securities Exchange Act of 1934. These statements are based on current management beliefs and assumptions and are identifiable by terms such as “anticipate,” “believe,” “intend,” “estimate,” “expect,” “continue,” and similar expressions. Actual outcomes may differ materially from those suggested in these statements due to various factors. These risks and uncertainties are detailed in Duke Energy’s Form 10-K for the year ending December 31, 2023, and subsequent filings with the Securities and Exchange Commission (SEC), available at www.sec.gov. Duke Energy undertakes no obligation to update or revise any forward-looking statements.
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