Duke Energy Asks Federal For Clearance To Merge Two Carolina Operations

Yesterday, Duke Energy formally asked federal regulators for permission to combine its two electric utility operations in the Carolinas. This merger has been planned for years, and the company predicts it will save customers billions in costs.  

Duke Energy (DEC) and Duke Energy Progress (DEP) have operated as separate utilities since 2021, with the merger of Duke Energy and Progress Energy in 2012. Although these are legally distinct entities that would require a merger, the proposal would function like a reorganization of two corporate divisions into one. 

 The proposed effective date for this merger would be January 1st, 2027.  This merger would need to be approved by the North Carolina Utilities Commission, the Public Service Commission of South Carolina and the Federal Energy Regulatory Commission.  

“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 says that a merger would allow the company to streamline operations and more efficiently allocate resources. Duke Energy projects retail customer savings of more than $1 billion through 2038, after any expenses. The savings are projected to occur between Jan. 1, 2027 – the proposed effective date of the combined utility – and 2038, the close of the planning horizon for the 2023 Carolinas Resource Plan. Additional customer savings would continue to be generated beyond 2038. 

Although customers would not immediately see savings, they would over time as the respective utilities commissions regulate electric rates.