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2025-07-29 19:54:10
Duke Energy Divests Tennessee for $2.48 Billion: Where Will the Huge Revenue Go? ⑴ On the evening of July 29th, Duke Energy's Piedmont Natural Gas business agreed to sell its gas distribution business in Tennessee to Spire for $2.48 billion in cash. ⑵ The transaction covers over 200,000 customers in the Nashville area and will be integrated into Spire's new Spire Tennessee business unit. ⑶ Spire CEO Scott Doyle stated that this move will increase its core utility customer base to nearly 2 million homes and businesses, making it a "perfect match" for Spire. ⑷ Spire has secured a fully committed bridge loan from BMO Capital Markets and will finance the deal through a combination of debt, equity, and hybrid securities. ⑸ The transaction is expected to close in the first quarter of next year, subject to approval by regulators and the Tennessee Public Utility Commission. Duke Energy plans to use $800 million of the transaction proceeds to repay Piedmont Natural Gas's debt and offset the majority of its tax burden with tax credits. Duke Energy will use the remaining proceeds to fund its $83 billion five-year capital plan, a move that could significantly fuel its future growth.
