Settlement reached in Duke Energy Carolinas merger case

The Southern Environmental Law Center says the groups it represented have reached a settlement with Duke Energy regarding the utility’s request at the South Carolina Public Service Commission to combine its Carolinas and Progress subsidiaries.

The settlement, if approved by the commission, commits Duke to deliver on cost savings for South Carolina customers and explore important energy-saving opportunities, according to a news release from Southern Environmental Law Center, which represented the Coastal Conservation League, Southern Alliance for Clean Energy, Upstate Forever and Vote Solar. The agreement follows a similar settlement at the North Carolina Utilities Commission.

The settlement requires Duke to:

• Work with stakeholders on a process for gradually converging retail rates over the course of multiple rate cases to ensure a smooth transition for customers.
• Develop a method for tracking benefits from the merger over the next 14 years and compensate SC customers with shareholder funding if expected benefits don’t occur.
• Evaluate improved rate design options for fast-charging electric vehicle stations.
• Explore additional expansion of its demand response programs to deliver cost-effective savings to customers.

“The merger includes important safeguards for Duke to deliver on the benefits promised to South Carolina customers, expand energy-saving opportunities, and streamline the transition process,” said Kate Mixson, SELC senior attorney, in the news release. “We look forward to engaging with Duke and other stakeholders as the process unfolds.”

“The Coastal Conservation League recognizes that energy affordability is a major concern for families and small businesses across the Carolinas,” Taylor Allred, State Energy & Climate Program director at the Coastal Conservation League, said in the release. “We are hopeful that the terms of this merger agreement will help to provide some relief in the face of rising energy cost burdens.”

Maggie Shober, research director at Southern Alliance for Clean Energy, said the settlement is an opportunity for energy cost savings for customers.

“This merger between Duke’s electric utilities in the Carolinas is one of many opportunities Commissioners will have this year to protect customers from rising bills,” she said in the release. “We applaud the Commission’s close review of this settlement and approval if it verifies savings for customers.”

“As energy costs continue to rise, it is critical that Duke’s merger will result in meaningful savings for South Carolina customers,” Michael Coleman, state policy director at Upstate Forever, said in the release. “We are optimistic that the agreement will ensure those savings are tracked and achieved while supporting broader efforts to deliver clean and affordable energy solutions for our communities.”

Duke Energy is a Fortune 150 company headquartered in Charlotte.

“At a time when many South Carolina families are struggling with rising energy bills, it’s critical that this merger delivers real savings for customers,” Jake Duncan, Southeast senior regulatory director at Vote Solar, said in the release. “This settlement puts important guardrails in place to make sure Duke follows through on its promises, with long-term tracking of merger benefits and protections for customers if those savings don’t materialize.”

Duke Energy’s electric utilities serve 8.6 million customers, according to a Duke Energy fact sheet.