Duke Energy Seeks to Merge Utilities in North Carolina and South Carolina, Aiming for $1 Billion in Customer Savings

Duke Energy has filed a request to merge its two electric utilities in North Carolina and South Carolina, aiming to save customers $1 billion. The utility claims that operating as one entity will lead to increased efficiency and reduced costs. The merger requires approval from state and federal regulators.

Duke Energy Corp. has filed a request with state and federal regulators to merge its two electric utilities in North Carolina and South Carolina, aiming to save customers more than $1 billion over a decade. The Charlotte-based utility, which operates Duke Energy Carolinas and Duke Energy Progress, seeks approval to combine these entities into a single entity effective January 1, 2027. The merger is expected to streamline operations, spread out infrastructure expenses, and reduce regulatory complexities [1].

The two utilities, which have operated separately since the 2012 merger of Duke Energy and Progress Energy, currently have a combined energy capacity of 34,600 megawatts, serving 4.7 million residential, commercial, and industrial customers across 52,000 square miles in North and South Carolina. The merger would simplify the current setup, which requires Duke Energy to maintain four different retail-rate structures and produce four annual filings for state regulators [1].

Duke Energy estimates that the merger could lead to significant cost savings through streamlined operations and the elimination of duplicate regulatory proceedings. The company projects retail customer savings of more than $1 billion through 2038. Additionally, the combined utility would be better positioned to invest in new technologies and improve grid reliability [2].

The merger requires approval from the North Carolina Utilities Commission, the Public Service Commission of South Carolina, and the Federal Energy Regulatory Commission. Duke Energy has indicated that there will be no immediate changes to retail customer rates or services, but rates will blend gradually between the sets of customers if the combination is approved [1].

Duke Energy has cited several benefits of the merger, including increased efficiency, reduced costs, and improved regulatory compliance. The company has also noted that the merger will support economic growth and promote regulatory efficiencies in both states [2].

The merger comes at a time when Duke Energy is also seeking permission to build two natural gas-powered generators in Rowan County. The company predicts that in the next 15 years, Carolina customers’ annual electric use will increase by about 58,000 gigawatt-hours [3].

References:
[1] https://finance.yahoo.com/news/duke-energy-seeks-merge-carolina-205253495.html
[2] https://www.charlotteobserver.com/news/business/article311707578.html
[3] https://www.utilitydive.com/news/duke-energy-merge-carolina-utilities/757776/