Duke Energy announced on Mar. 10 that it has reached a settlement agreement in South Carolina with several organizations regarding the proposed combination of Duke Energy Carolinas and Duke Energy Progress. The agreement is designed to provide measurable and trackable benefits for customers, including guaranteed savings.
The settlement is significant because it aims to lower costs for customers while supporting economic growth and regulatory efficiency across the Carolinas. If approved, the combination is expected to result in billions of dollars in projected future cost savings shared by customers in both states.
Tim Pearson, Duke Energy’s South Carolina president, said, “Ensuring a win-win for our customers was a priority for Duke Energy and everyone involved in achieving this constructive settlement. We’re grateful to the parties that recognize that this transaction, if approved under the settlement terms, would be in the best interest of our customers. It reduces customer costs, simplifies operations, promotes regulatory efficiencies and supports economic growth across the Carolinas.”
According to Duke Energy, hundreds of millions of dollars in future savings are guaranteed as part of the settlement. These savings will come from more efficient operations leading to lower production costs—such as reduced fuel use and fewer out-of-state energy purchases—and from lower capital costs through improved planning. For example, eliminating 200 megawatts of battery storage from long-range plans while maintaining reliability is cited as a capital cost saving. The company will assess these guaranteed savings over a 14-year period and expects additional savings as its long-range plan evolves.
A new analysis filed in October projects customer savings of about $2.3 billion from 2027 to 2040 after expenses, with further savings anticipated beyond that period. If regulators approve the combination, Duke Energy will annually report achieved customer savings until all transaction costs are covered.
The proposal still requires approval from both the Public Service Commission of South Carolina and North Carolina Utilities Commission; federal approval was granted by the Federal Energy Regulatory Commission on Jan. 30. State decisions are expected in the second quarter of 2026, with an effective date targeted for Jan. 1, 2027 if approved.
