Duke Energy will sell about 20 percent of its utility business to a new entity called Black Hills Energy, the largest privately held electric utility in the country.
The deal will see Black Hills get about $500 million in debt relief and about $100 million in tax breaks from Duke and other partners, according to the deal’s disclosure documents.
Black Hills will pay about $300 million in taxes and $200 million in interest over a 20-year term, the documents show.
The financing, which was announced on Monday, was expected to be completed by March 2019, but the agreement is subject to regulatory approval.
The new company will be called Black Hill Energy Corp. and will be led by Black Hills CEO David Blight.
Black Hill is owned by billionaire Michael Bloomberg, the New York City mayor.
The announcement comes on the heels of a $9 billion acquisition by Blackwood, the energy company, in 2016.
Bloomberg is a big proponent of coal and nuclear power, and he is also the chairman of the National Renewable Energy Laboratory.
Bloomberg has also been a vocal critic of wind and solar power.
“If you’re not careful, you’re going to end up in the same place as the old coal and gas companies that went bankrupt, and they’re going bankrupt with us,” Bloomberg said at the time.