Duke Energy Corp and Xcel Energy Inc are in discussions with private credit lenders to finance portions of their long-term infrastructure investment programmes, in what could mark a significant shift for the US utilities sector, according to a report by Bloomberg citing executives from the firms.
Duke is evaluating private credit funding as part of its $87bn capital expenditure plan. The company has also recently said that it intends to increase its five year capital spending plan up to $110bn. Xcel is weighing similar options to support its $60bn investment strategy. If executed, the moves would mark some of the first large scale private credit financings in the regulated utilities space.
The talks also highlight how infrastructure heavy companies are beginning to view private lenders as strategic partners for long-duration projects, particularly as they balance rising borrowing costs through demand from data centres, and ambitious decarbonisation goals.
