Duke Energy asking for permission to combine 2 utilities into single entity
The company claims customers will save more than $1 billion in future costs and see no bill or service changes before 2027.
CHARLOTTE, N.C. — Duke Energy is asking state and federal regulators to let it combine its two electric utilities in the Carolinas into one entity.
On Thursday, the company said it was requesting permission to merge Duke Energy Carolinas (DEC) and Duke Energy Progress (DEP), which have operated as two separate entities since Duke Energy merged with Progress Energy in 2012. While Duke Energy says this is legally considered a merger, the company’s announcement said the proposed combination is more of a reorganization of two corporate divisions into one that promises to save customers more than $1 billion through 2038.
Duke Energy said this would create a single utility that streamlines operations and reduces costs for customers. It aims to officially combine on Jan. 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’s announcement claims operating as a single utility would allow it to meet growing energy needs in the region at a lower cost for customers across Duke Energy’s 52,000-square-mile service area, allowing it to improve grid reliability while reducing the need to build resources and use less expensive units.
Duke Energy said it will need approval from the North Carolina Utilities Commission, the Public Service Commission of South Carolina, and the Federal Energy Regulatory Commission, which will oversee and regulate the proposed combined utility.
The company also promises that retail rates won’t change immediately, but rather that DEC and DEP rates will start to blend over time in future rate cases and rider filings made after Jan. 1, 2027. Customers in North Carolina and South Carolina will still see rates regulated by their states’ regulatory bodies, who will have independent discretion over the pace of retail rate integration.
Duke Energy also said other benefits include new energy generation and transmission, better reliability, less confusion, and more regulatory efficiencies.
In 2024, Duke Energy lowered electric rates in the Carolinas, but did hike up rates in South Carolina. In 2025, North Carolina’s Senate passed a bill by overriding Gov. Josh Stein’s veto that eliminated the carbon reduction mandate and allowed the company to charge customers for building new power plants before construction is completed. In July 2025, the utility asked South Carolina regulators for a rate hike.
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