Duke Energy has filed a request with state and federal regulators to combine its two electric utilities in the Carolinas, a move projected to save customers more than $1 billion in future costs. The company is seeking approval from the North Carolina Utilities Commission, the Public Service Commission of South Carolina, and the Federal Energy Regulatory Commission.
The combination would merge Duke Energy Carolinas (DEC) and Duke Energy Progress (DEP), which have operated separately since Duke Energy merged with Progress Energy in 2012. If approved, the merger would take effect on January 1, 2027. According to Duke Energy, there will be no immediate changes to retail customer rates or services before that date.
“Combining our two utilities reduces customer costs, simplifies operations, supports economic growth and promotes regulatory efficiencies, all of which will create value for customers in both states,” said Kodwo Ghartey-Tagoe, executive vice president and CEO of Duke Energy Carolinas. “There will be no immediate changes to retail customer rates or services. We look forward to sharing more details with our customers on how rates will evolve over time if the combination is approved by regulators.”
Duke Energy projects that operating as a single utility would allow for more efficient planning across its combined 52,000-square-mile service area in North Carolina and South Carolina. The company says this would help avoid redundant investments and improve grid reliability.
Since their holding companies merged in 2012, joint dispatch of power generation resources has produced over $1 billion in cumulative savings for customers. However, regulations currently limit further coordination between DEC and DEP; only a full combination can provide additional savings.
The proposed merger aims to streamline operations by eliminating duplicate regulatory filings and proceedings required by maintaining separate rate structures for each utility across two states. Over time after January 2027, DEC and DEP retail rates are expected to blend gradually through future rate cases and rider filings; each state will retain authority over how quickly these integrations occur.
According to Duke Energy’s evaluation based on its most recent resource plan covering up to 2038, retail customer savings from the merger are projected at more than $1 billion during that period—with additional savings anticipated beyond 2038.
Duke Energy Carolinas serves about 2.9 million customers with 20,800 megawatts of energy capacity across North Carolina and South Carolina. Duke Energy Progress supplies electricity to about 1.8 million customers with a capacity of 13,800 megawatts within the same states but over a larger geographic area.
Duke Energy as a whole provides electric service to approximately 8.6 million customers across six states—North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky—and owns roughly 55,100 megawatts of energy capacity nationwide.
The company continues investing in grid upgrades and cleaner generation sources such as natural gas plants as well as nuclear facilities alongside renewables like solar power.
More information about Duke Energy’s activities can be found at duke-energy.com or through their social media channels.
