Duke Energy responds to investor call to split up
May 18, 2021 - One of the largest shareholders at Duke Energy wants the company to separate into three regional entities — one for the Carolinas, one for Florida and one for the Midwest. Elliott Investment Management said in a letter to Duke that a separation would lead to improved execution, better system reliability, lower costs and increased investment in critical infrastructure, including renewables. In Florida, specifically, Elliott said that, "relative to the other two key Florida investor-owned utilities [Florida Power & Light and Tampa Electric], Duke Energy Florida has residential customer rates that are approximately 30% higher, unit costs that are 40%–120% higher and the lowest rate base growth." Duke Energy (NYSE: DUK) said in a press release that its board of director has reviewed previous proposals from Elliott and determined they are not in the best interest of the company, its shareholders and other stakeholders. Duke, which said it is always open to new ideas to create growth and value, said the board will look at Elliott's latest plan. Duke Energy Florida, headquartered in St. Petersburg, serves about 1.8 million customers. Melissa Seixas was named president of Duke Energy Florida earlier this year.