Duke Energy announced on Mar. 10 that it has reached a settlement agreement in South Carolina with several organizations regarding the proposed combination of Duke Energy Carolinas and Duke Energy Progress. The agreement is designed to provide measurable and trackable benefits for customers, including guaranteed savings.
The settlement is significant because it aims to lower costs for customers while supporting economic growth and regulatory efficiency across the Carolinas. If approved, the combination is expected to result in billions of dollars in projected future cost savings shared by customers in both states.
Tim Pearson, Duke Energy’s South Carolina president, said, “Ensuring a win-win for our customers was a priority for Duke Energy and everyone involved in achieving this constructive settlement. We’re grateful to the parties that recognize that this transaction, if approved under the settlement terms, would be in the best interest of our customers. It reduces customer costs, simplifies operations, promotes regulatory efficiencies and supports economic growth across the Carolinas.”
According to Duke Energy, hundreds of millions of dollars in future savings are guaranteed as part of the settlement. These savings are expected through more efficient operations leading to lower production costs—such as reduced fuel use and fewer out-of-state energy purchases—and through more efficient planning resulting in lower capital costs. For example, eliminating 200 megawatts of battery storage from long-range plans will still maintain reliability while reducing expenses. The company projects customer savings of approximately $2.3 billion from 2027 to 2040 based on updated modeling filed with regulators.
If regulators approve the combination, Duke Energy will track and report annual customer savings until all transaction costs are covered. The Federal Energy Regulatory Commission approved the proposal on Jan. 30; decisions from state regulators are expected by mid-2026. If finalized, the effective date would be Jan. 1, 2027.
Duke Energy Carolinas currently supplies electricity to 2.9 million customers across North Carolina and South Carolina with an energy capacity of 20,800 megawatts over a service area of 24,000 square miles. Duke Energy Progress serves another 1.8 million customers with a capacity of 13,800 megawatts over a larger area.
Duke Energy is one of America’s largest energy holding companies and serves electric utilities customers across six states while also providing natural gas services.