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 move could save customers more than $1 billion through 2038, with additional savings expected beyond that period.
The combination is described by Duke Energy as a reorganization of corporate divisions rather than a traditional merger. If approved, it would create a single utility serving the Carolinas, streamlining operations and reducing costs. The proposed effective date for the combined utility is 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.”
Duke Energy stated that there would be no immediate changes to retail rates or services as a result of the combination. Retail rates for DEC and DEP would begin to blend gradually after January 1, 2027, during future rate cases and rider filings. North Carolina and South Carolina will continue regulating retail rates separately.
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. This approach is expected to avoid redundant investments and improve grid reliability. Additionally, spreading infrastructure investments over a larger customer base could help moderate rate impacts.
Duke Energy also indicated that combining resources would enable it to operate existing assets more cost-effectively by running fewer units less frequently, using less fuel, and reducing maintenance costs.
Regulatory approvals are required from the North Carolina Utilities Commission, the Public Service Commission of South Carolina, and the Federal Energy Regulatory Commission. These agencies will maintain oversight of the combined utility.
Since their holding companies merged in 2012, DEC and DEP have already achieved over $1 billion in cumulative savings through joint dispatching of power generation resources and other efficiencies. However, current regulations limit further coordination between them; only a full combination can unlock additional savings according to Duke Energy.
Over recent years since the merger in 2012, Duke Energy has consolidated many corporate functions but continued separate planning and operation of power grids in the Carolinas until now.
DEC currently owns 20,800 megawatts of energy capacity serving about 2.9 million customers across North Carolina and South Carolina. DEP owns 13,800 megawatts serving approximately 1.8 million customers across both states.
Duke Energy serves a total of about 8.6 million electric customers across six states including Florida—and collectively owns over 55 gigawatts of energy capacity nationwide.
