Duke Energy has filed for regulatory approval to combine its two electric utilities in the Carolinas, a move expected to generate over $1 billion in customer savings through 2038. The proposal would merge Duke Energy Carolinas (DEC) and Duke Energy Progress (DEP), which have operated separately since the 2012 merger of their parent companies.
If approved by state and federal regulators, the combined utility would begin operations on January 1, 2027. There will be no immediate changes to retail rates or services for customers before that date. Retail rates are expected to blend gradually over time, subject to future rate cases and regulatory decisions in North Carolina and South Carolina.
“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.”
The company projects that operating as a single utility will allow it to meet growing energy needs at lower cost by improving planning across its 52,000-square-mile service area in the Carolinas. The merger is also expected to avoid redundant investments, improve grid reliability, and enable more efficient use of resources.
Duke Energy estimates that spreading infrastructure investments over a larger customer base will help moderate rate impacts. Additional operational efficiencies include running fewer and less expensive units, using less fuel, and reducing maintenance costs.
Regulatory approval is required from the North Carolina Utilities Commission, the Public Service Commission of South Carolina, and the Federal Energy Regulatory Commission.
Since their holding companies merged in 2012, DEC and DEP have achieved more than $1 billion in cumulative savings for customers through joint dispatch of power generation resources and other efficiencies. However, current regulations limit further coordination between the two utilities; only a full combination can unlock additional savings.
Over recent years, Duke Energy has modernized its infrastructure with advanced metering systems and updated management platforms but continued to operate separate grids in the Carolinas until now.
The planned combination aims to streamline regulatory compliance by reducing duplicative filings across four different rate structures maintained today for North Carolina and South Carolina customers. A unified approach is also expected to simplify programs, services, and rates over time.
Duke Energy Carolinas supplies electricity to 2.9 million customers with 20,800 megawatts of capacity across a 24,000-square-mile area in North Carolina and South Carolina. Duke Energy Progress serves 1.8 million customers with 13,800 megawatts across a 28,000-square-mile area in both states.
Duke Energy is one of America’s largest energy holding companies with electric utilities serving approximately 8.6 million customers across six states.
For more information about Duke Energy’s initiatives or this proposed combination visit duke-energy.com or the Duke Energy News Center.
