NextEra, Dominion file paperwork on proposed merger, getting SCC review clock ticking

NextEra Energy and Dominion Energy have formally filed applications seeking regulatory approval of their proposed $66.8 billion merger with the Virginia State Corporation Commission, starting the clock – and it’s a quick one – on the state review.

“This is a combination centered on customers, communities and employees,” said Robert Blue, the chair, president and CEO of Dominion Energy, per a joint release from the two companies, who are working toward having the merger finalized in the second half of 2027, “subject to customary closing conditions and approvals by the shareholders of NextEra Energy and Dominion Energy” and state and federal regulatory reviews.

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ICYMI

• NextEra Energy wants to buy Dominion Energy: This one’s about data centers, AI
• Word for the good guys who oppose the Next Era-Dominion merger: Good luck
• Virginia groups pushing for changes to laws governing utility mergers
• Ghazala Hashmi takes leadership role on state review of proposed NextEra-Dominion merger

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The Virginia review has become a subject of much frustration from environmental advocates, given that, according to Attorney General Jay Jones, the SCC has just 180 days to review the multibillion-dollar merger.

Jones, in a statement released by his office, said he and his staff “will fight for transparency and accountability throughout this process, because at the end of the day it is consumers and ratepayers like you who will be expected to foot the bill long after the Commission renders its decision.”

“We will aggressively advocate for what is in the ratepayer’s best interests, not just for the next few years, but for the long term. We are prepared to fulfill our obligation under the law, and we will fight for you every step of the way,” Jones said.

Clean Virginia, a powerful environmental lobby, is pushing the Virginia General Assembly to put teeth to the AG’s words – suggesting in a public release that lawmakers request Gov. Abigail Spanberger to call a legislative special session, with the goal to pass legislation to “extend the review timeline for corporate mergers to at least 12 months and provide the SCC and the Attorney General’s Division of Consumer Counsel with the resources needed for a comprehensive review.”

“This deal would hand Virginia’s electric grid to a company with a troubling track record of raising bills in Florida, heavily interfering in state politics and prioritizing corporate profit over the public interest,” said Brennan Gilmore, executive director of Clean Virginia. “Virginia deserves a rigorous, transparent review with strong standards. Everything we know about NextEra’s record demands that this deal be rejected.”

More reactions

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• “With data center energy contracts with Dominion now over 70GW — nearly triple our existing peak load and the equivalent of 70 new nuclear reactors at an average cost of $15 billion per reactor — there are huge future costs on the line for electric ratepayers and Virginia,“ said Chris Miller, president of the Piedmont Environmental Council. “How the cost of this new infrastructure is met, what guardrails are in place to protect consumers, and how the impacts of meeting such explosive power demand are mitigated remain unanswered. This merger further muddies those waters, adding a new layer of opaqueness and distance from residents of Virginia who are paying the bills and feeling the impacts from transmission lines and power plants. The SCC needs to ensure that the impacts on communities and conservation resources are the responsibility of the utility and are paid for by the data center industry.”
• “As Virginians, we don’t want to cede decision-making for our largest electric utility to out-of-state corporate interests that won’t live with the consequences of those decisions,” said Peter Anderson, energy policy director at Appalachian Voices. “The companies are actually touting their combined ability to bring new gas-fired generation online, clearly indicating their intention to ignore the law’s mandate that carbon-emitting units retire by 2045 and leaving customers at risk of paying for costly, unneeded projects. The SCC must ensure that Dominion Virginia customers aren’t stuck with higher bills, unnecessary gas plants and more pollution.”
• “We, along with many others throughout the state, will be scrutinizing this proposed acquisition, which comes at an especially consequential time for Dominion customers,” said Southern Environmental Law Center Senior Attorney Nate Benforado. “In the last few years, residential customer bills have risen dramatically, in large part due to data center growth and fossil fuel prices. To make matters worse, Dominion plans to meet data center demands with a massive build out of harmful methane gas power plants and potentially even new pipelines, which will burden customers higher bills, harm our health and air quality, and saddle our state with damaging infrastructure. The proposed acquisition—which based on public statements appears focused on profiting off this data center growth—raises real concerns that this deal could make these very real problems worse for Virginians, not better.”
• “NextEra’s CEO has been clear about what this deal is meant to accomplish. He wants NextEra to be the go-to utility for the data center boom across Dominion’s service territory, home to the largest concentration of data centers in the world,” said Melissa Thomas, policy director at the Climate Equity Working Group. “That may be good for NextEra’s executives and shareholders, but Virginia families are the ones who bear the risk. Florida customers have already seen what that can look like. The State Corporation Commission should reject this merger.”
• “The size and speed of this massive merger is cause for alarm,” said Dr. Mary Finley-Brook, an energy researcher at the University of Richmond. “This utility clearly aims to become too big to be held accountable. This takeover should be blocked because NextEra has shown they can’t be trusted. The company has demonstrated a lack of sincere commitment to environmental protections, backing away from previous emissions reductions, while promoting greenwashed hype with the hope to confuse and distract. The reality is that NextEra aims to expand data centers and energy hubs without regard for the health and well-being of our neighborhoods. As a parent, I am deeply worried that NextEra’s expansion plans include necessary safeguards for healthy communities and a livable future.”