Senior decision-makers come together to connect around strategies and business trends affecting utilities.

Post

Hedge fund urges Duke to spin off its Florida utility to unlock value

DW Keefer's picture
Journalist Independent Journalist and Analyst

DW Keefer is a Denver-based energy journalist who writes extensively for national and international publications on all forms of electric power generation, utility regulation, business models...

  • Member since 2017
  • 277 items added with 229,480 views
  • May 21, 2021 3:52 pm GMT
  • 532 views

Elliott Investment Management said Duke Energy Florida and its Midwestern energy company are not generating as much value for shareholders as they could, and called on the utility to spin off the companies so they can focus more deeply on the regions they serve. Duke could generate between $12 billion and $15 billion in value as a result, the firm said.

In a statement, Duke said its board would review the proposal.

Elliott has previously pushed for similar moves at other utilities, and has exchanged proposals with Duke since July 2020.

Your access to Member Features is limited.

One of the hedge fund’s main criticisms was that Duke’s Florida company doesn’t perform as well as its peers in the state. It has higher outage times than Tampa Electric Co. and Florida Power & Light, and its customer rates are often higher than those companies. Duke also ranked lowest among Florida power companies in a J.D. Power customer satisfaction ranking last year, the hedge fund said.

Elliott recommended expanding renewable energy and critical infrastructure investments and keeping customer bills lower. Elliott also asked for new board members and changes to the company’s leadership.

DW Keefer's picture
Thank DW for the Post!
Energy Central contributors share their experience and insights for the benefit of other Members (like you). Please show them your appreciation by leaving a comment, 'liking' this post, or following this Member.
More posts from this member
Discussions
Spell checking: Press the CTRL or COMMAND key then click on the underlined misspelled word.

No discussions yet. Start a discussion below.

Get Published - Build a Following

The Energy Central Power Industry Network is based on one core idea - power industry professionals helping each other and advancing the industry by sharing and learning from each other.

If you have an experience or insight to share or have learned something from a conference or seminar, your peers and colleagues on Energy Central want to hear about it. It's also easy to share a link to an article you've liked or an industry resource that you think would be helpful.

                 Learn more about posting on Energy Central »