St. Louis-based Spire Inc. has officially closed a $2.48 billion deal to buy Piedmont Natural Gas’s Tennessee operations from Duke Energy, locking in a major expansion of the hometown utility’s footprint. Effective March 31, 2026, the transaction moves roughly 200,000 Tennessee customers and nearly 3,800 miles of distribution and transmission pipeline into a new unit that will operate as Spire Tennessee. The deal broadens Spire’s regulated reach and positions the company as a bigger investor-owned gas utility in the Nashville metro and surrounding communities.
Spire announced the closing in a PR Newswire release, saying the Tennessee operations will do business under the Spire Tennessee banner and confirming that more than 200 Piedmont Tennessee employees have transitioned to the new unit. "We're pleased to welcome Piedmont customers and employees in Tennessee to Spire," CEO Scott Doyle said in the announcement. The company added that Spire Tennessee is expected to support long-term adjusted earnings-per-share growth and account for a sizeable portion of its multi-year capital plan.
Duke Energy, on the selling side of the table, stressed that the cash infusion will help fund its own capital program. Roughly $800 million of the proceeds are slated to pay down Piedmont debt, with about $1.5 billion expected to support broader utility investments. The company also noted that the Tennessee business includes nearly 3,800 miles of pipeline and serves approximately 205,000 customers. Duke Energy laid out those details in its statement on the sale.
What Spire Bought
The Tennessee business spans the Nashville metro and nearby counties, bringing in residential, commercial and industrial customers that plug directly into Spire's portfolio of regulated utilities. With the addition, Spire’s total customer footprint moves closer to two million accounts. The company projects that the Tennessee unit will represent about 20% of its capital investment plan through 2030 and will drive spending tied to new customer growth and system integrity. Those projections are outlined in materials for investors posted by Spire.
Regulatory Roadmap
Before any of this could close, regulators had to sign off. The transfer required review by the Tennessee Public Utility Commission along with clearance under the Hart-Scott-Rodino process. The TPUC docket shows a pre-hearing schedule, rounds of testimony and public comments as the commission weighed the transaction. The record includes filings from consumer advocates and formal responses from Piedmont and Spire. The full set of public filings and the procedural schedule is available through the Tennessee Public Utility Commission.
How Spire Paid For It
To cover the purchase price, Spire leaned on a mix of new debt and a committed bridge facility arranged by BMO Capital Markets. As part of the financing stack, the company issued junior subordinated notes and senior notes tied to the deal. Regulatory exhibits detail $900 million of junior subordinated notes issued in November 2025 and an $825 million private placement of senior notes associated with the closing. The financing structure is spelled out in Spire’s exhibits filed with the SEC.
What To Watch
For Tennessee customers, the near-term questions are straightforward and very practical: whether tariffs change and what any future rate filings might look like once integration is complete. Both companies say operational teams and current employees will stay in place to keep service running smoothly through the transition.
Back in St. Louis, the acquisition marks a significant growth swing by a locally headquartered utility and signals a shift in where Spire directs its capital and operating focus as it absorbs a larger regulated business. For more background on the closing and the company’s presence downtown, local reporting is available from the St. Louis Business Journal.
