Duke Energy Reaches Agreements with North Carolina Customer Advocates, NC Attorney General's Office and Others on Proposed Combination of Duke Energy Carolinas, Duke Energy Progress

Duke Energy and a variety of organizations have reached settlement agreements on the proposed combination of Duke Energy Carolinas and Duke Energy Progress designed to provide measurable, trackable benefits for customers.

Settling parties include the North Carolina Public Staff – the independent agency representing utility customers – the North Carolina Attorney General's Office, Google, Nucor, Walmart and a variety of other intervening groups.

"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," said Kendal Bowman, Duke Energy's North Carolina president. "It reduces customer costs, simplifies operations, promotes regulatory efficiencies and supports economic growth across the Carolinas."

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 North Carolina and South Carolina.

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.

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 in the 2025 Carolinas Resource Plan – that analysis projected customer savings of approximately $2.3 billion from 2027 to 2040, after any expenses, with additional savings expected in the 2040s.

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

Others joining the settlement in North Carolina are:

• North Carolina Housing Coalition
• North Carolina Justice Center
• North Carolina Sustainable Energy Association
• Southern Alliance for Clean Energy
• Vote Solar

The North Carolina Utilities Commission and the Public Service Commission of South Carolina must still approve the combination, which was approved by the Federal Energy Regulatory Commission on Jan. 30. Independent orders from state regulators are expected in the second quarter of 2026. If approved, the targeted effective date of the combination is Jan. 1, 2027.