RALEIGH, N.C. (AP) — Duke Energy Progress has agreed to purchase the generating capacity of ElectriCities in a $1.2 billion deal expected to translate into lower power bills for thousands of eastern North Carolina residents.

Duke announced its deal Monday with the North Carolina Eastern Municipal Power Agency, which includes 32 towns in the eastern part of the state. Formed in 1978, the regional power agency has 270,000 retail customers and is managed by ElectriCities of North Carolina, headquartered in Raleigh.