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 result in customer savings exceeding $1 billion through 2038, building on more than $1 billion in savings already achieved since the companies’ holding firms merged in 2012.
The proposed combination is described by Duke Energy as a reorganization of two corporate divisions into one utility. If approved, the change would take effect January 1, 2027. According to the company, there will be no immediate changes to retail rates or services for customers before that date.
“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 states that operating as a single utility would allow for more efficient planning across its combined 52,000-square-mile service area in North Carolina and South Carolina. The company says this would help avoid redundant investments and improve grid reliability. Spreading infrastructure investments over a larger customer base is expected to moderate rate impacts.
Company officials also note that combining DEC and DEP would enable them to build fewer new resources compared to operating separately. They expect operational cost reductions from running fewer units, using less fuel, and reducing maintenance needs.
Approval is required from the North Carolina Utilities Commission, the Public Service Commission of South Carolina, and the Federal Energy Regulatory Commission. Retail rates for North Carolina and South Carolina will continue to be regulated separately after any merger.
Joint dispatch of power generation resources has been permitted since the companies’ holding firms merged in 2012. That arrangement has produced significant savings for customers; however, further coordination is limited under current regulations unless a full combination occurs.
Since 2012, Duke Energy has worked on aligning operations between DEC and DEP by investing in advanced metering infrastructure and unified management systems.
The company says additional benefits of operating as one utility include improved planning for new generation and transmission assets across both states; strengthened reliability by better balancing distributed generation resources; reduced need for solar production curtailment; simplified programs and rate structures; and reduced regulatory compliance costs due to eliminating duplicative filings.
DEC currently supplies electricity to 2.9 million customers across a 24,000-square-mile area in North Carolina and South Carolina with an energy capacity of 20,800 megawatts. DEP serves 1.8 million customers across a separate 28,000-square-mile area with an energy capacity of 13,800 megawatts.
Duke Energy’s broader operations serve approximately 8.6 million electric customers across six states with a total energy capacity of about 55,100 megawatts.
More information can be found at duke-energy.com or through their official news channels.
