A Message from Stan Pinegar President – Duke Energy Indiana
Duke Energy / GIC Announcement
Message to Duke Energy Indiana Stakeholders
A Message from Stan Pinegar, President Duke Energy Indiana
Today, Duke Energy announced it signed an agreement with an affiliate of GIC Private Limited for a minority investment into Duke Energy Indiana (DEI). Based on the agreement, GIC – Singapore's sovereign wealth fund and an experienced investor in U.S. infrastructure – will own 19.9 percent of DEI. Duke Energy will continue to be the majority owner and operator of Duke Energy Indiana.
As you know from the various changes we have seen at our company, our commitment to deliver safe and reliable service to our customers and communities has not wavered and it remains our top priority. My role and the responsibilities of our employees that you work with at the Statehouse, in your community and in our economic development efforts will not change. The regulatory authority of the Indiana Utility Regulatory Commission (IURC) over Duke Energy Indiana rates and other activities is unchanged.
The agreement with GIC highlights the value and growth potential of Duke Energy Indiana. The investor recognizes the continued hard work and commitment of our people. The investment is for $2.05 billion. The proceeds from the investment provide a way for Duke Energy to raise the capital needed to fund clean energy investments, grid improvement projects and an improved customer experience across our regulated utilities. Acquiring capital in this manner is advantageous because it is less expensive than issuing new stock or common equity.
GIC was drawn to this investment in part because of our company’s track record of successfully operating the utility. As minority investor, GIC will have some governance rights consistent with its investment stake but daily operations will remain largely unchanged.
Again, I want to reassure you that this transaction does not change in any way our commitments to our employees, our customers or the communities we serve. We will continue our strong history of investing in Indiana. Please know we appreciate your interest in our company and if you need further information please don’t hesitate to contact Laura Johnson or me.
Stan Pinegar State President
Cautionary Note Regarding Forward-Looking Information This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on management’s beliefs and assumptions and can often be identified by terms and phrases that include “anticipate,” “believe,” “intend,” “estimate,” “expect,” “continue,” “should,” “could,” “may,” “plan,” “project,” “predict,” “will,” “potential,” “forecast,” “target,” “guidance,” “outlook” or other similar terminology. Various factors may cause actual results to be materially different than the suggested outcomes within forward-looking statements; accordingly, there is no assurance that such results will be realized. For details on the uncertainties that may cause our actual future results to be materially different than those expressed in our forward-looking statements, see our 2019 Form 10-K and Quarterly Reports on Form 10-Q filed with the SEC and available at the SEC’s website at sec.gov. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than described. Forward-looking statements speak only as of the date they are made. Duke Energy expressly disclaims an obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.