Duke Energy announced on Mar. 10 that it has reached settlement agreements with several organizations, including the North Carolina Public Staff and the North Carolina Attorney General’s Office, regarding its proposed combination of Duke Energy Carolinas and Duke Energy Progress. The agreement is designed to provide measurable benefits and cost savings for customers in both North Carolina and South Carolina.
The settlement is significant because it guarantees hundreds of millions of dollars in future savings for customers, which can only be achieved through the merger of the two utilities. These savings are expected to come from more efficient operations and planning, such as reduced fuel use, fewer out-of-state energy purchases, and the elimination of planned battery storage while maintaining reliability.
Kendal Bowman, Duke Energy’s North Carolina president, said, “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. It reduces customer costs, simplifies operations, promotes regulatory efficiencies and supports economic growth across the Carolinas.”
The guaranteed savings will be assessed over a 14-year period. A recent analysis filed in October projected customer savings of approximately $2.3 billion from 2027 to 2040 after expenses, with additional savings anticipated into the 2040s. If approved by state regulators, Duke Energy will track and report annual customer savings until all transaction costs are covered.
Other parties joining the settlement include Google, Nucor, Walmart, North Carolina Housing Coalition, North Carolina Justice Center, North Carolina Sustainable Energy Association, Southern Alliance for Clean Energy, Vote Solar and others. The Federal Energy Regulatory Commission approved the combination on Jan. 30; approvals from state commissions in North Carolina and South Carolina are still pending with decisions expected in the second quarter of 2026. If finalized, the merger would take effect Jan. 1, 2027.
Duke Energy Carolinas currently supplies electricity to 2.9 million customers across a service area spanning both states with a capacity of 20,800 megawatts. Duke Energy Progress serves another 1.8 million customers with a capacity of 13,800 megawatts.
