Duke Energy has submitted a proposal 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 projects that this combination will save customers more than $1 billion through 2038, following savings of over $1 billion already achieved since 2012.
If approved, the consolidation would not result in any immediate changes to customer bills or services. Retail rates for DEC and DEP would begin to blend gradually after January 1, 2027, as part of future rate cases and filings. North Carolina and South Carolina regulators will continue to set retail rates independently.
Kodwo Ghartey-Tagoe, executive vice president and CEO of Duke Energy Carolinas, stated: “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. 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 proposed reorganization follows years of operational alignment between DEC and DEP since their parent companies merged in 2012. The company says that operating as a single utility would allow for more efficient planning across a combined 52,000-square-mile service area in the Carolinas. This could help avoid redundant investments, improve grid reliability, and moderate rate impacts by spreading infrastructure costs over a larger customer base.
According to Duke Energy’s analysis, running as one utility means fewer new resources would need to be built compared to maintaining separate operations. The company also expects cost reductions from operating existing power generation resources more efficiently—using less fuel and reducing maintenance expenses.
The plan requires approval from the North Carolina Utilities Commission, the Public Service Commission of South Carolina, and the Federal Energy Regulatory Commission.
Duke Energy Carolinas currently owns 20,800 megawatts of capacity serving 2.9 million customers across North Carolina and South Carolina. Duke Energy Progress owns 13,800 megawatts serving 1.8 million customers in those states. Overall, Duke Energy serves about 8.6 million electric customers across six states.
The company continues investing in modernizing its energy infrastructure with upgrades to the electric grid and expansion into cleaner energy sources such as natural gas, nuclear power, renewables, and energy storage. More information can be found at duke-energy.com and through the company’s social media channels.
