Duke Energy Reaches Agreement With South Carolina Customer Groups, Others on Proposed Combination of Duke Energy Carolinas, Duke Energy Progress

Duke Energy and a variety of organizations have reached a settlement agreement in South Carolina on the proposed combination of Duke Energy Carolinas and Duke Energy Progress designed, officials say, to provide measurable, trackable benefits for customers.

Details of the settlement can be found here.

“Ensuring a win-win for our customers was a priority for Duke Energy and everyone involved in achieving this constructive settlement," said Tim Pearson, Duke Energy's South Carolina president. "We're grateful to the parties that recognize that this transaction, if approved under the settlement terms, would be in the best interest of our customers. It reduces customer costs, simplifies operations, promotes regulatory efficiencies and supports economic growth across the Carolinas."

Officials say combining Duke Energy Carolinas and Duke Energy Progress will enable Duke Energy to meet the Carolinas' growing energy needs at a lower cost than would otherwise occur, with estimated savings of billions in projected future costs shared by customers across both states.

As part of the settlement, Duke Energy has guaranteed hundreds of millions of dollars of future savings to customers – savings that can only be achieved through the combination. These savings include both lower production costs (through more efficient operation) and lower capital costs (through more efficient planning).

Examples of production cost savings include the ability to use less fuel and the ability to avoid or reduce purchases of out-of-state energy.

An example of lower capital costs includes the elimination of 200 megawatts of battery storage from Duke Energy's long-range plan while still maintaining reliability. The guaranteed savings will be assessed over a 14-year period.  

Officials said more savings are expected over time as the company's long-range plan evolves.

A new analysis of the potential cost savings was filed in October based on updated modeling supporting the 2025 South Carolina IRP Update – that analysis projected customer savings of approximately $2.3 billion from 2027 to 2040, after any expenses, with additional savings expected in the 2040s and beyond.

Per the agreement, Duke Energy will track and annually report to state regulators the customer savings achieved until the transaction has fully covered its costs.