Duke Energy finalizes two initiatives to deliver more than $5 billion in cost-saving benefits to customers

Duke Energy finalizes two initiatives to deliver more than $5 billion in cost-saving benefits to customers

• Estimated $2.3 billion in savings for customers expected from combination of Carolinas utilities
• Safe, reliable, low-cost power plant operations and new investments to deliver up to $3.1 billion in tax savings for customers to keep costs lower over time

CHARLOTTE, N.C., May 4, 2026 /PRNewswire/ -- Duke Energy is committed to providing safe and reliable energy at the lowest possible cost and is delivering on that promise with more than $5 billion in cost-saving benefits to the customers and communities it serves.

Savings will be achieved through operational innovation and efficiencies designed to lower costs, while protecting reliability and supporting long-term economic growth. These actions are part of our unwavering commitment to deliver affordable energy for our customers across all our states, leveraging our scope and scale to achieve top-tier cost management.

At the core of these benefits is Duke Energy's proposed combination of the company's two electric utilities in the Carolinas – Duke Energy Carolinas and Duke Energy Progress.

Why it matters: Approved last week by the North Carolina Utilities Commission and Public Service Commission of South Carolina after a settlement with nearly all parties, the combination is projected to provide approximately $2.3 billion in net customer savings from 2027 to 2040, compared with a scenario in which the utilities remained separate, with additional savings expected in the 2040s and beyond.

• All savings will flow to customers. The targeted effective date of the utility combination is Jan. 1, 2027.

More good news: Duke Energy last week also completed a new, multi-year agreement to sell up to $3.1 billion in net tax credits, including nuclear and solar production tax credits and investment tax credits expected to be generated between 2025 and 2028 in Florida and the Carolinas, delivering long-term savings to customers.

• The agreement locks in pricing and ensures the ability to monetize this substantial amount of credits over this time period.
• The net value of these credits, generated through highly reliable operation of Duke Energy nuclear plants and solar sites, as well as investment in these and other technologies, will be returned to customers through rates over time, subject to approval by regulators.

Our view: "These actions reflect Duke Energy's relentless focus to operate more efficiently, reduce long-term customer costs and strengthen the energy future of the states we serve," said Harry Sideris, president and CEO of Duke Energy. "As our customers face rising costs across the board for everything from gasoline to groceries to other necessities of life, our commitment is to turn over every stone and use every tool we can to help our customers navigate these challenging times, manage their energy use and save – while also delivering the high quality of service they expect and deserve."

Zoom in: Here are just a few of the steps we have taken to reduce costs where possible and deliver savings to customers across all of our states:

• Returning $210 million of savings to Carolinas customers in 2025-2026 through nuclear production tax credits.
• Saving Carolinas customers nearly $600 million on recovery from major storms like Helene through storm bonds.
• Shared with Florida customers approximately $65 million in production tax credits in 2025. That amount grows each year as more solar power is placed in service.
• By enhancing the efficiency of our Florida natural gas plants in 2025, we've achieved the output of a new power plant without building one – saving more than $340 million in fuel costs. Customers are estimated to save an additional $150 million to $200 million annually in reduced fuel costs from fleet enhancement investments through 2027.
• To protect existing customers in every state we serve, our contracts with large-load customers, like data centers, now include additional provisions to help ensure these facilities pay the costs of delivering service to their sites, and those costs are not transferred to other customers.  

What they're saying:

Duke Energy North Carolina President Kendal Bowman: "We're pleased the commission agrees our North Carolina customers will see significant future cost savings and other meaningful benefits from combining our two utilities in the Carolinas. It will reduce customer costs, simplify operations, promote regulatory efficiencies, and support economic growth across the Carolinas. We're grateful to the organizations that joined the settlement agreement and recognize the meaningful benefits combining our two utilities will deliver to our customers."

S.C. Governor Henry McMaster: "Duke Energy continues to deliver for the people of South Carolina. This approval will help keep energy reliable and affordable while meeting the demands of our state. It strengthens our ability to power homes and support businesses, ensuring South Carolina remains a place where opportunity and prosperity continue well into the future."

N.C. Chamber President and CEO Gary Salamido: "As North Carolina stands at a pivotal moment in its energy trajectory, we applaud Duke Energy's efforts to pursue innovative solutions that help keep costs down for customers. Reliable, cost-effective energy is essential to keeping our communities strong and ensuring North Carolina remains the top state to do business."

Associated Industries of Florida President & Chief Executive Officer Brewster B. Bevis: "Duke Energy Florida is continuing to focus on delivering record-level reliability, while keeping costs as low as possible. The company's investments in technology and infrastructure support the state's rapid growth, meet the demands of commercial customers and make Florida an even better place to conduct business."

Duke Energy
Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, N.C., is one of America's largest energy holding companies. The company's electric utilities serve 8.7 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky, and collectively own 55,700 megawatts of energy capacity. Its natural gas utilities serve 1.6 million customers in North Carolina, South Carolina, Ohio and Kentucky.

Duke Energy is executing an energy modernization strategy, keeping customer value at the forefront as it invests in electric grid upgrades and efficient generation resources to strengthen the system and serve growing energy needs.

More information is available at duke-energy.com. Follow Duke Energy on X, LinkedIn, Instagram, TikTok and Facebook for stories about the people and innovations powering its communities. 

Contact: Jeff Brooks

24-Hour: 800.559.3853

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SOURCE Duke Energy