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 generate billions in projected future cost savings shared by customers in both North Carolina and South Carolina.
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 from more efficient operations leading to lower production costs—such as reduced fuel use—and from capital cost reductions like eliminating 200 megawatts of battery storage from long-range plans while maintaining reliability. The company will assess these guaranteed savings over a 14-year period and report annually to state regulators until all transaction costs are covered.
A recent analysis filed in October projects customer savings of about $2.3 billion from 2027 through 2040 after expenses, with additional savings anticipated beyond that period. The Federal Energy Regulatory Commission approved the combination on Jan. 30; however, approvals are still required from both the Public Service Commission of South Carolina and North Carolina Utilities Commission. Independent orders from state regulators are expected in the second quarter of 2026, with an effective date targeted for Jan. 1, 2027 if approved.
Duke Energy Carolinas currently supplies electricity to 2.9 million customers across North Carolina and South Carolina with a capacity of 20,800 megawatts over a service area spanning 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 headquartered in Charlotte, North Carolina. Its electric utilities serve approximately 8.6 million customers across six states.
