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 projects that this combination could generate over $1 billion in customer savings through 2038, with further savings expected beyond that period.
Since the 2012 merger of Duke Energy and Progress Energy, DEC and DEP have operated as separate entities. The proposed move is described by the company as a reorganization of corporate divisions rather than a traditional merger. If approved, the effective date for the combination would be January 1, 2027.
“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 plan is part of Duke Energy’s broader efforts to modernize infrastructure in response to growing energy needs in North Carolina and South Carolina. Operating as a single utility would allow for more efficient planning across their combined 52,000-square-mile service area. This approach aims to avoid redundant investments and improve grid reliability.
According to Duke Energy, combining resources would mean fewer new assets are needed compared to operating separately. Infrastructure investments could be spread over a larger customer base, potentially reducing rate impacts. Additionally, operating existing resources more efficiently could lead to lower fuel use and maintenance costs.
Approval from the North Carolina Utilities Commission, Public Service Commission of South Carolina, and Federal Energy Regulatory Commission is required before proceeding.
Retail rates for DEC and DEP customers will not change immediately if the combination is approved; any blending of rates would occur gradually after January 1, 2027 during future rate cases or filings. State regulators will retain authority over how quickly rates are integrated.
Since their holding companies merged in 2012, joint dispatching of power generation resources has produced more than $1 billion in cumulative savings for customers. However, further coordination between DEC and DEP is limited under current regulations; only full combination can unlock additional efficiencies.
Duke Energy highlights several benefits from operating as one utility: improved planning for new generation and transmission assets across a wider region; enhanced reliability through better balancing of distributed generation; simplified programs and rates; and reduced regulatory compliance work due to fewer duplicative filings.
Over recent years most corporate functions have already been merged between DEC and DEP except for grid planning and operations. The company says that unifying these functions now will enable it to serve customers more efficiently while supporting ongoing energy modernization initiatives at lower cost.
Duke Energy Carolinas serves about 2.9 million customers across North Carolina and South Carolina with an energy capacity of 20,800 megawatts. Duke Energy Progress supplies electricity to approximately 1.8 million customers with a capacity of 13,800 megawatts across both states.
Duke Energy overall provides electric service to about 8.6 million customers across six states and owns approximately 55,100 megawatts of energy capacity nationwide.
For more information about Duke Energy’s activities or this proposed combination visit duke-energy.com or follow updates via their official channels.
