Duke Energy (NYSE: DUK) reached a settlement agreement in South Carolina regarding the proposed combination of its Duke Energy Carolinas and Duke Energy Progress subsidiaries, according to a company statement.

The settlement guarantees hundreds of millions of dollars in future customer savings through the merger. Duke Energy filed an analysis in October projecting customer savings of approximately $2.3 billion from 2027 to 2040, with additional savings expected beyond 2040.

The guaranteed savings include reduced production costs through more efficient operations and lower capital costs through improved planning. Examples include reduced fuel usage, decreased out-of-state energy purchases, and elimination of 200 megawatts of battery storage from Duke Energy's long-range plan while maintaining reliability. The guaranteed savings will be assessed over a 14-year period.

"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.

The Federal Energy Regulatory Commission approved the combination on January 30. The Public Service Commission of South Carolina and North Carolina Utilities Commission must still approve the merger, with independent orders expected in the second quarter of 2026. If approved, the combination would take effect January 1, 2027.

Duke Energy Carolinas owns 20,800 megawatts of energy capacity and serves 2.9 million customers across North Carolina and South Carolina. Duke Energy Progress owns 13,800 megawatts of capacity and serves 1.8 million customers in the same states.

Under the agreement, Duke Energy will track and annually report customer savings to state regulators until the transaction covers its costs.