Duke Energy has filed a request with 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 operating as one utility could save customers more than $1 billion through 2038, building on cost savings already achieved since the 2012 merger of Duke Energy and Progress Energy.
According to Duke Energy, the proposed combination is a reorganization of two corporate divisions into a single utility. If approved, there will be no immediate changes to retail customer rates or services before 2027. The targeted effective date for the combination is January 1, 2027.
“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.”
The company says that combining DEC and DEP would streamline planning across their combined 52,000-square-mile service area in North Carolina and South Carolina. This would help avoid redundant investments and improve grid reliability. It would also allow for more efficient use of existing resources by running fewer units at lower costs.
Approval from the North Carolina Utilities Commission, the Public Service Commission of South Carolina, and the Federal Energy Regulatory Commission is required for the plan to move forward. These agencies would continue oversight and regulation of the combined utility.
Retail rates are not expected to change immediately following approval; instead, they would begin blending gradually after January 1, 2027 during future rate cases and filings. Regulators in each state would retain independent control over how quickly retail rate integration occurs.
Since their holding companies merged in 2012, joint dispatching of power generation resources has produced over $1 billion in cumulative savings for customers. However, regulations currently limit further coordination between DEC and DEP unless they fully combine operations.
Duke Energy notes that operating as one utility could lead to better planning for new generation and transmission assets across a broader geographic area. The company also expects improved reliability through better balancing of distributed generation resources like solar power.
The merger aims to reduce confusion among customers by moving toward uniform programs and services over time while streamlining regulatory compliance work by eliminating duplicative filings.
Duke Energy Carolinas supplies electricity to about 2.9 million customers with an energy capacity of 20,800 megawatts across North Carolina and South Carolina. Duke Energy Progress serves around 1.8 million customers with a capacity of 13,800 megawatts across both states as well.
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