Duke Energy seeks to merge Carolina utilities, projecting more than $1B
in customer savings
[August 16, 2025]
CHARLOTTE, N.C. (AP) — Duke Energy Corp. says its move to combine
electric utility subsidiaries in North and South Carolina into one
entity could save customers more than $1 billion over a decade.
The Charlotte-based utility said it formally asked federal and state
regulators on Thursday for permission to join together Duke Energy
Carolinas and Duke Energy Progress, which have several million
customers. The savings would come in part from streamlining operations
and spreading out infrastructure expenses.
The two entities have operated separately since the 2012 merger of Duke
Energy and Raleigh-based Progress Energy. Duke Energy, which likens the
request to moving two company divisions into one, said in a news release
that it wants the change to be effective Jan. 1, 2027.
The two entities combined own 34,600 megawatts of energy capacity,
producing electricity for 4.7 million residential, commercial and
industrial customers in service areas covering 52,000 square miles
(134,680 square kilometers). Duke Energy is the dominant electric
utility in North Carolina.
Under the current setup, Duke Energy must maintain four different
retail-rate structures — two for each subsidiary in each state — and
produce four annual filings for state regulators who approve rates —
creating confusion for the public. If the combination is approved, the
company said, rates would blend gradually between the sets of customers.
The company says a combination means fewer resources would be needed to
meet electric demands compared to if the two entities remained separate.
They could run fewer energy production units, using less fuel and
spending less on maintenance, the release said. The two entities already
work together on managing electricity demand and other efficiencies.
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Duke Energy employees work on power lines in Charlotte, N.C., Feb.
14, 2012. (AP Photo/Chuck Burton, File)
“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 at
Duke Energy Carolinas. “There will be no immediate changes to retail
customer rates or services.”
Duke Energy, one of the nation's largest electric holding companies,
said it projects retail customer savings from the combination to reach
more than $1 billion through 2038. That's after any expenses, with
additional savings expected after that.
Duke Energy Carolinas’ coverage area spans much of central and western
North and South Carolina, including Charlotte and Durham in North
Carolina, and Greenville and Spartanburg in South Carolina.
Duke Energy Progress generally covers eastern and central North and
South Carolina -- including Raleigh, Fayetteville and Wilmington in
North Carolina and Florence and Sumter in South Carolina. But its
coverage area also includes Asheville, North Carolina, in the west.
The combination needs approval from North Carolina Utilities Commission,
the Public Service Commission of South Carolina and the Federal Energy
Regulatory Commission. They would all continue to regulate the combined
utility.
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