Duke Energy has completed the $2.48 billion sale of its Tennessee Piedmont Natural Gas business to Spire Inc., finalizing a transaction that was initially announced in July 2025 and became effective March 31, 2026.
The deal transfers nearly 3,800 miles of natural gas distribution and transmission pipelines and more than 200,000 customers, primarily in the Greater Nashville area, to Spire. The business will now operate as Spire Tennessee, which becomes the largest investor-owned natural gas utility in the state and a key platform for growth in the region.
More than 200 employees supporting the Tennessee operations have transitioned to Spire to ensure operational continuity, with additional hiring planned to support future expansion. The company emphasized maintaining reliable service while deepening its presence in local communities, including expanding charitable initiatives through its Spire Serves program.
For Spire, the acquisition strengthens its footprint across Missouri, Alabama, Mississippi, and now Tennessee, and is expected to play a significant role in its long-term growth strategy. Spire Tennessee is projected to represent about 20% of the company’s capital investment plan through 2030, supporting anticipated adjusted earnings per share growth of 5% to 7%.
Duke Energy said approximately $800 million of the proceeds will be used to pay down debt at Piedmont Natural Gas, while the remaining $1.5 billion, net of tax, will support its $103 billion regulated capital plan over the next five years. The company is positioning this investment plan to address growing energy demand while maintaining cost efficiency for its more than 10 million customers, alongside continued investments in grid modernization and generation capacity.
Advisors on the transaction included JP Morgan Securities LLC and RBC Capital Markets LLC as financial advisors, with Skadden, Arps, Slate, Meagher & Flom LLP serving as transactional legal advisor. Additional legal and regulatory support was provided by Holland & Knight and McGuireWoods.
The transaction reflects broader consolidation trends across the U.S. energy sector, as utilities focus on regulated growth, infrastructure investment, and expansion in high-growth regions.
KEY QUOTES
“Today marks a significant milestone with the successful transition of our Tennessee natural gas business to Spire. As we enter a period of record investment, this transaction helps efficiently fund our capital plan, a plan built on safely and reliably meeting our communities’ growing energy needs while managing costs for our more than 10 million customers.”
“I want to thank our Tennessee natural gas teammates for their commitment to industry-leading customer service, safety and operational excellence, as well as the Nashville community for trusting us to serve its growing energy needs for more than 40 years. Spire will carry forward best-in-class service and continue delivering value for Tennessee employees, customers, and communities.”
Harry Sideris, President And Chief Executive Officer, Duke Energy
“We’re pleased to welcome Piedmont customers and employees in Tennessee to Spire. This acquisition allows us to expand our core utility business while continuing to do what we do best as a company, safely delivering reliable natural gas to the communities we serve…
Scott Doyle, President And Chief Executive Officer, Spire Inc.;
At Spire, we’ve had the privilege of delivering great service to customers for more than 160 years. Our teams are closely collaborating to deliver a seamless transition and ensure that customers have the same great experience with Spire that they’ve enjoyed with Piedmont. We take pride in being part of the communities where we live and work, and we look forward to building new relationships throughout the Nashville region.”
Joe Hampton, President, Spire Alabama, Gulf And Mississippi, And President, Spire Tennessee
