Duke Energy has filed with state and federal regulators to combine its two Carolinas electric utilities, Duke Energy Carolinas (DEC) and Duke Energy Progress (DEP). The proposed reorganization aims to operate the utilities as a single entity by January 1, 2027, potentially saving customers more than $1 billion in future costs through 2038.

Operating separately since the 2012 merger of Duke Energy and Progress Energy, the utilities currently function under some regulatory limitations that restrict deeper operational coordination. The full combination would streamline operations, reduce redundant investments, and improve grid reliability across their combined 52,000-square-mile service area in North and South Carolina.

Kodwo Ghartey-Tagoe, EVP and CEO of Duke Energy Carolinas, noted that the merger would reduce customer costs, support economic growth, and simplify operations, while assuring that no immediate changes to retail rates or services will occur before 2027.

The companies serve approximately 4.7 million customers and own a combined energy capacity of 34,600 megawatts. Regulators in both states and the Federal Energy Regulatory Commission must approve the plan.

Duke Energy expects the combined utility to facilitate more efficient infrastructure planning, reduce fuel and maintenance costs, and enable regulatory efficiencies by consolidating rate structures and filings.

Retail rates will remain separate for North and South Carolina initially, with gradual blending possible over time. Additional savings are expected beyond 2038 as well.