CHARLOTTE, N.C. (NCN News) – Electric utility Duke Energy has reached agreements on a proposed merger of Duke Energy Carolinas and Duke Energy Progress in the Carolinas.
Settling parties include the North Carolina Public Staff – the independent agency representing utility customers – the North Carolina Attorney General’s Office, Google, Nucor, Walmart and a variety of other groups.
“We’re pleased that Public Staff and the Attorney General’s Office agree our customers will see significant future cost savings and other meaningful benefits from combining our two utilities,” said Kendal Bowman, Duke Energy’s North Carolina president. “It reduces customer costs, simplifies operations, promotes regulatory efficiencies and supports economic growth across the Carolinas.”
Combining Duke Energy Carolinas and Duke Energy Progress will enable Duke Energy to meet Carolinas’ growing energy needs at a lower cost than would otherwise occur, with estimated savings of billions in projected future costs shared by customers across North Carolina and South Carolina.
There are two Duke Energy entities in North Carolina, as a result of a merger with Progress Energy in 2012. They have historically operated as separate subsidiaries with different service territories, rate structures, and regulatory filings. Duke Energy Carolinas Serves mostly western North Carolina but includes Durham and parts of South Carolina. Duke Energy Progress Serves central and eastern North Carolina, including Raleigh and parts of the Research Triangle area and parts of South Carolina.
As part of the settlement, Duke Energy has guaranteed hundreds of millions of dollars of future savings to customers – savings that can only be achieved through the combination. These savings include both lower production costs through more efficient operation and lower capital costs through more efficient planning.
“Reaching this settlement is an important step in the right direction towards making affordable and reliable energy available to families across the state,” said Nick Jimenez, senior attorney at the Southern Environmental Law Center. “Merging Duke Energy Progress and Carolinas will help bring costs down, providing much-needed relief to customers who are struggling to pay their high energy bills.”
The Southern Alliance for Clean Energy, North Carolina Housing Coalition, North Carolina Justice Center, and Vote Solar, represented by the Southern Environmental Law Center, were among parties that signed the agreement alongside North Carolina Public Staff.
The North Carolina Justice Center supports the proposed merger settlement,” said Claire Williamson, senior energy policy advocate at North Carolina Justice Center. “We will be vigilant to ensure that the promised cost tracking results in actual savings for NC ratepayers and will continue to push Duke Energy, in light of its record profits, to make energy more affordable, particularly for those households that are already struggling to pay their current energy bills.”
“At a time when energy bills are rising, Duke’s merger has the potential to deliver meaningful savings to customers,” said Jake Duncan, southeast senior regulatory director at Vote Solar. “This settlement establishes long-term tracking of the merger’s costs and benefits and guarantees that ratepayers will see lower rates. We’re hopeful it will help families better afford their energy bills for years to come.”
The settlement requires Duke Energy to work with stakeholders on a process for gradually converging retail rates over the course of multiple rate cases to ensure a smooth transition for customers.
Examples of production cost savings include the ability to use less fuel and the ability to avoid or reduce purchases of out-of-state energy. An example of lower capital costs includes the elimination of 200 megawatts of battery storage from Duke Energy’s long-range plan while still maintaining reliability. The guaranteed savings will be assessed over a 14-year period.
Per the agreement, if the combination is approved, Duke Energy will track and annually report to state regulators the customer savings achieved until the transaction has fully covered its costs.
The North Carolina Utilities Commission and the Public Service Commission of South Carolina must still approve the combination, which was approved by federal regulators in January. Independent orders from state regulators are expected in the second quarter of 2026. If approved, the targeted effective date of the combination is Jan. 1, 2027.