Duke Energy has submitted a request to state and federal regulators to combine its two electric utilities in the Carolinas, Duke Energy Carolinas (DEC) and Duke Energy Progress (DEP). The company expects that this combination will generate billions of dollars in customer savings over time.
The two companies have operated separately since the 2012 merger of their parent companies, though they have already achieved more than $1 billion in cost savings through joint operations such as power generation dispatch. According to Duke Energy, merging the utilities into a single entity would streamline operations, avoid redundant investments, and enable more efficient infrastructure planning across their combined 52,000-square-mile service area.
“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.”
If approved by the North Carolina Utilities Commission, the Public Service Commission of South Carolina, and the Federal Energy Regulatory Commission—which would continue oversight—the effective date for the combination is targeted for January 1, 2027. Retail rates are not expected to change immediately; instead, DEC and DEP retail rates would blend gradually after that date through future rate cases and filings. State regulators would retain independent control over how quickly these rates are integrated.
Duke Energy projects that retail customers could see more than $1 billion in additional savings between 2027 and 2038 due to efficiencies from operating as a single utility. The company also notes that benefits such as improved grid reliability, fewer required new resources for growing demand, lower fuel usage, reduced maintenance costs from less frequent cycling of units on and off, and streamlined regulatory processes could result from the merger.
Over recent years since their initial merger in 2012, DEC and DEP have aligned many corporate functions but kept power grid planning separate. This latest move aims to unify those remaining operational areas for greater efficiency as energy demands grow across North Carolina and South Carolina.
Duke Energy Carolinas serves about 2.9 million customers with 20,800 megawatts of capacity over a 24,000-square-mile area in both states. Duke Energy Progress serves approximately 1.8 million customers with 13,800 megawatts across a larger territory.
Duke Energy’s overall operations include electric service to about 8.6 million customers across six states with total ownership of around 55,100 megawatts of energy capacity.
More information about Duke Energy can be found at duke-energy.com and on its social media channels.
