Duke Power to promote business dispensed era trade to ArcLight for $364 million

• Sale anticipated to near by way of year-end 2023
• Transaction helps corporate’s long-term regulated blank calories technique

CHARLOTTE, N.C., July 5, 2023 /PRNewswire/ — Duke Power (NYSE: DUK) as of late introduced it has reached an settlement to promote its business dispensed era trade to an associate of ArcLight Capital Companions, LLC (jointly, “ArcLight”), a number one center marketplace infrastructure investor, for an undertaking cost of $364 million, inclusive of non-controlling tax fairness pursuits. Duke Power expects roughly $259 million of proceeds from this transaction, which is topic to positive commonplace changes and shall be won upon final.

In early June, Duke Power reached a sale settlement for its utility-scale renewables trade platform. The corporate expects to finalize the gross sales for its utility-scale and dispensed era companies by way of the top of 2023 and can make the most of the proceeds to support its steadiness sheet and steer clear of further protecting corporate debt issuances related to those property. Those transactions will fortify Duke Power’s center of attention at the enlargement of its regulated companies, together with investments to improve grid reliability and assist incorporate over 30,000 megawatts of regulated renewable calories onto its machine by way of 2035.

“The sale of our business renewables companies streamlines our portfolio and offers the assets to fortify the long-term wishes of our shoppers in our rising regulated territories,” stated Lynn Just right, Duke Power Chair, President and CEO. “Over the following decade, we plan to take a position important quantities of capital to fund the important calories infrastructure essential to serve our shoppers and fortify our blank calories transition.”

The dispensed era trade being bought contains REC Sun running property, construction pipeline and O&M portfolio, in addition to dispensed gas cellular tasks controlled by way of Bloom Power. Staff of the dispensed era trade will transition to ArcLight to take care of trade continuity for its operations and shoppers.

“Our funding in Duke Power’s business dispensed era trade helps ArcLight’s long-standing process of obtaining running property from main strategics and growing robust stand-alone renewable platforms. We consider that is a fantastic alternative to obtain a chief business dispensed era portfolio, spouse with a skilled crew and construct upon longstanding, top of the range buyer relationships,” stated Marco Gatti, Managing Director at ArcLight.

Dan Revers, Managing Spouse of ArcLight added, “This transaction leverages ArcLight’s deep enjoy in making an investment around the renewables infrastructure sector and using our value-added way to assist pressure asset optimization, which permit us to additional construct upon the portfolio and advance brownfield construction alternatives.”

The sale is topic to delight of commonplace final stipulations, together with the expiration of the ready duration underneath the Hart-Scott-Rodino Act. Regulatory approval by way of the Federal Power Regulatory Fee may also be required for the sale of the Bloom Power dispensed gas cellular property.

BofA Securities, Inc. is serving because the monetary guide and Mayer Brown LLP is serving because the criminal suggest to Duke Power for this transaction. Scotia is serving because the monetary guide and Kirkland & Ellis is serving because the criminal suggest to ArcLight.

Duke Power

Duke Power (NYSE: DUK), a Fortune 150 corporate headquartered in Charlotte, N.C., is certainly one of The us’s greatest calories protecting firms. Its electrical utilities serve 8.2 million shoppers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky, and jointly personal 50,000 megawatts of calories capability. Its herbal fuel unit serves 1.6 million shoppers in North Carolina, South Carolina, Tennessee, Ohio and Kentucky. The corporate employs 27,600 other people.

Duke Power is executing an competitive blank calories transition to succeed in its targets of net-zero methane emissions from its herbal fuel trade by way of 2030 and net-zero carbon emissions from electrical energy era by way of 2050. The corporate has period in-between carbon emission objectives of no less than 50% aid from electrical era by way of 2030, 50% for Scope 2 and sure Scope 3 upstream and downstream emissions by way of 2035, and 80% from electrical era by way of 2040. As well as, the corporate is making an investment in main electrical grid improvements and effort garage and exploring zero-emission energy era applied sciences comparable to hydrogen and complex nuclear. 

Duke Power used to be named to Fortune’s 2023 “Global’s Maximum Admired Corporations” listing and Forbes’ “Global’s Very best Employers” listing. Additional information is to be had at duke-energy.com. The Duke Power Information Heart incorporates information releases, truth sheets, footage and movies. Duke Power’s illumination options tales about other people, inventions, group subjects and environmental problems. Observe Duke Power on Twitter, LinkedIn, Instagram and Fb.

About ArcLight

ArcLight Capital Companions, LLC is an skilled, middle-market, cost upload infrastructure funding company. Based in 2001, ArcLight helped determine infrastructure as an asset elegance by way of pioneering an asset-based non-public fairness way to making an investment in infrastructure and has since constructed an skilled and a success funding platform. Based totally in Boston, ArcLight’s funding crew employs a value-added, operationally in depth funding way that advantages from its devoted in-house technical, operational, and business experts and companions, in addition to the company’s roughly 1,800-person asset control operational spouse. Extra details about ArcLight may also be discovered at www.arclight.com.

Ahead-Having a look Knowledge

This report contains forward-looking statements throughout the which means of Phase 27A of the Securities Act of 1933 and Phase 21E of the Securities Alternate Act of 1934. Ahead-looking statements are according to control’s ideals and assumptions and will steadily be recognized by way of phrases and words that come with “wait for,” “consider,” “intend,” “estimate,” “be expecting,” “proceed,” “will have to,” “may just,” “might,” “plan,” “venture,” “expect,” “will,” “doable,” “forecast,” “goal,” “steering,” “outlook” or different identical terminology. Quite a lot of components might motive precise effects to be materially other than the steered results inside of forward-looking statements; accordingly, there is not any assurance that such effects shall be discovered. Those components come with, however don’t seem to be restricted to:

• The power to put into effect our trade technique, together with our carbon emission aid targets;
• State, federal and overseas legislative and regulatory tasks, together with prices of compliance with present and long term environmental necessities, together with the ones associated with local weather exchange, in addition to rulings that impact value and funding restoration or have an affect on price buildings or marketplace costs;
• The level and timing of prices and liabilities to agree to federal and state rules, laws and criminal necessities associated with coal ash remediation, together with quantities for required closure of positive ash impoundments, are unsure and hard to estimate;
• The power to recuperate eligible prices, together with quantities related to coal ash impoundment retirement responsibilities, asset retirement and building prices associated with carbon emissions discounts, and prices associated with important climate occasions, and to earn an good enough go back on funding thru price case complaints and the regulatory procedure;
• The prices of decommissioning nuclear amenities may just end up to be extra intensive than quantities estimated and all prices will not be absolutely recoverable in the course of the regulatory procedure;
• The affect of unusual exterior occasions, such because the pandemic well being tournament as a consequence of COVID-19, and their collateral penalties, together with the disruption of worldwide provide chains or the commercial job in our provider territories;
• Prices and results of criminal and administrative complaints, settlements, investigations and claims;
• Commercial, business and home enlargement or decline in provider territories or buyer bases as a consequence of sustained downturns of the financial system, decreased buyer utilization because of value pressures from inflation or gas prices, and the commercial well being of our provider territories or permutations in buyer utilization patterns, together with calories potency efforts, herbal fuel development and equipment electrification, and use of other calories assets, comparable to self-generation and dispensed era applied sciences;
• Federal and state laws, rules and different efforts designed to advertise and amplify the usage of calories potency measures, herbal fuel electrification, and dispensed era applied sciences, comparable to non-public sun and battery garage, in Duke Power provider territories may just lead to a discounted choice of shoppers, extra era assets in addition to stranded prices;
• Developments in era;
• Further pageant in electrical and herbal fuel markets and persevered business consolidation;
• The affect of climate and different herbal phenomena on operations, together with the commercial, operational and different results of critical storms, hurricanes, droughts, earthquakes and tornadoes, together with excessive climate related to local weather exchange;
• Converting investor, buyer and different stakeholder expectancies and calls for together with heightened emphasis on environmental, social and governance considerations and prices similar thereto;
• The power to effectively function electrical producing amenities and ship electrical energy to shoppers together with direct or oblique results to the corporate as a consequence of an incident that is affecting the USA electrical grid or producing assets;
• Operational interruptions to our herbal fuel distribution and transmission actions;
• The supply of good enough interstate pipeline transportation capability and herbal fuel provide;
• The affect on amenities and trade from a terrorist or different assault, battle, vandalism, cybersecurity threats, information safety breaches, operational occasions, data era disasters or different catastrophic occasions, comparable to fires, explosions, pandemic well being occasions or different identical occurrences;
• The inherent dangers related to the operation of nuclear amenities, together with environmental, well being, protection, regulatory and monetary dangers, together with the monetary balance of third-party provider suppliers;
• The timing and extent of adjustments in commodity costs and rates of interest and the facility to recuperate such prices in the course of the regulatory procedure, the place suitable, and their affect on liquidity positions and the price of underlying property;
• The result of financing efforts, together with the facility to acquire financing on favorable phrases, which may also be suffering from quite a lot of components, together with credit score rankings, rate of interest fluctuations, compliance with debt covenants and prerequisites, a person application’s era combine, and basic marketplace and financial stipulations;
• Credit score rankings of the Duke Power Registrants could also be other from what is anticipated;
• Declines out there costs of fairness and fixed-income securities and resultant money investment necessities for outlined receive advantages pension plans, different post-retirement receive advantages plans and nuclear decommissioning consider budget;
• Building and construction dangers related to the crowning glory of the Duke Power Registrants’ capital funding tasks, together with dangers associated with financing, timing and receipt of essential regulatory approvals, acquiring and complying with phrases of allows, assembly building budgets and schedules and pleasant running and environmental efficiency requirements, in addition to the facility to recuperate prices from shoppers in a well timed method, or in any respect;
• Adjustments in regulations for regional transmission organizations, together with adjustments in price designs and new and evolving capability markets, and dangers associated with responsibilities created by way of the default of alternative contributors;
• The power to keep watch over operation and upkeep prices;
• The extent of creditworthiness of counterparties to transactions;
• The power to acquire good enough insurance coverage at appropriate prices;
• Worker staff components, together with the possible incapacity to draw and retain key workforce;
• The power of subsidiaries to pay dividends or distributions to Duke Power Company protecting corporate (the Guardian);
• The efficiency of tasks undertaken by way of our nonregulated companies and the good fortune of efforts to put money into and increase new alternatives, in addition to the a success sale of the Business Renewables Disposal Teams;
• The impact of accounting and reporting pronouncements issued periodically by way of accounting standard-setting our bodies and the SEC;
• The affect of United States tax law to our monetary situation, result of operations or money flows and our credit score rankings;
• The affects from doable impairments of goodwill or fairness means funding sporting values;
• Asset or trade acquisitions and tendencies won’t yield the predicted advantages; and
• The movements of activist shareholders may just disrupt our operations, affect our skill to execute on our trade technique, or motive fluctuations within the buying and selling worth of our not unusual inventory.

Further dangers and uncertainties are recognized and mentioned within the Duke Power Registrants’ reviews filed with the SEC and to be had on the SEC’s web page at sec.gov. In mild of those dangers, uncertainties and assumptions, the occasions described within the forward-looking statements would possibly now not happen or would possibly happen to another extent or at a special time than described. Ahead-looking statements discuss best as of the date they’re made and the Duke Power Registrants expressly disclaim any legal responsibility to publicly replace or revise any forward-looking statements, whether or not because of new data, long term occasions or differently.

Media touch for Duke Power: Jennifer Garber
24-Hour: 800.559.3853

Media touch for ArcLight: Joshua Greenwald
646.504.7306

SOURCE Duke Power