Duke Energy has submitted a request to state and federal regulators seeking approval to combine its two electric utilities in the Carolinas, Duke Energy Carolinas (DEC) and Duke Energy Progress (DEP). The company says this reorganization, which would merge operations that have been separate since the 2012 merger of Duke Energy and Progress Energy, is expected to save customers more than $1 billion through 2038.
If approved, the combination would take effect on January 1, 2027. Customers would not see any immediate changes to their bills or services before that date. Future adjustments to retail rates would be gradual and subject to review by regulators in North Carolina and South Carolina, who will continue to oversee rate integration independently.
“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 says operating as one utility will allow for more efficient planning across its combined 52,000-square-mile service area in the Carolinas. It expects this approach will help avoid redundant investments and improve grid reliability. Spreading infrastructure investments over a larger customer base could also moderate future rate increases.
According to Duke Energy’s analysis, combining DEC and DEP means it can build fewer new resources than if they remained separate. The company anticipates cost savings from running fewer power units and reducing fuel use and maintenance needs.
Since the original holding company merger in 2012, joint dispatching of generation resources has produced more than $1 billion in cumulative savings for customers. However, current regulations limit further coordination between DEC and DEP unless a full combination occurs.
A single utility structure is expected to streamline regulatory compliance by reducing duplicative filings across four current retail rate structures—two each for North Carolina and South Carolina.
Duke Energy serves about 8.6 million electric customers across several states including North Carolina, South Carolina, Florida, Indiana, Ohio, and Kentucky. Its subsidiaries DEC and DEP currently provide electricity to a combined total of approximately 4.7 million residential, commercial, and industrial customers throughout North Carolina and South Carolina.
More information about Duke Energy’s plans can be found at duke-energy.com or through its official news center.
