If you haven’t heard of the proposed merger of Dominion Energy and NextEra Energy, and, like me, have an electric bill that keeps getting higher, you may want to learn more about what this merger could mean to you. To do that, you can find many articles online. Here are some relevant considerations as you do your research.
In Virginia, there are several types of utilities, but the large ones (called Phase 1) are regulated by the State Corporation Commission. A Phase 1 utility has a monopoly within its service territory; that means you as a customer have no choice about what company provides your electricity.
Dominion Energy is a Phase 1 utility. When it wants to take an action that would affect its customers’ rates, it must ask the SCC for permission. Dominion and NextEra filed their request for a merger on July 15. Under state law, the SCC has a maximum of six months to make its decision. Sometime within that six months, folks like you and me, who believe they might be affected, can contact the SCC and state their views on what the merger would mean to them and whether they want the SCC to approve or deny it.
The SCC is now considering whether to approve the proposed merger. If it’s approved, then Dominion Energy would become part of NextEra Energy, a very large utility that operates in Florida and other states. An approved merger would make NextEra Energy “the World’s Largest Regulated Electric Utility Business” (according to its website).
NextEra has said it would give its Dominion customers a $10/month credit for four years, for a total of $480. Sounds good maybe, but the SCC has already approved rate increases during that period that total more than $480.
The SCC is offering the public the chance to make their voices heard through Nov. 10. Here are some important dates from the SCC calendar:
- Nov. 2: Last day to register as a public witness for the telephonic hearings on Nov. 5, and 10
- Nov. 5: Public witness testimony telephonically 8:30 a.m. to 11 a.m.
- Nov. 5: Public witness testimony in person 2 p.m. to 5 p.m. in 2nd-floor courtroom at 1300 E. Main St., Richmond
- Nov. 9: Public witness testimony telephonically 4 p.m. to 7 p.m.
- Nov. 9: Last day to submit written comments
- Nov. 10: Public witness testimony telephonically 4 p.m. to 7 p.m.
If you want to be a public witness, you can do so in person, by phone, or by written comments. Beginning Nov. 17, the SCC will conduct formal proceedings, called an evidentiary hearing. The public can attend or listen in but not speak.
Why would you want to be a public witness or contact the SCC? Because …
- You have a Dominion electric bill that’s already too high and you are very concerned that the merger will mean your bill will go higher.
- You are a Harrisonburg Electric Commission customer; you know that HEC gets almost all of its electricity from Dominion. But you are not included in the $480 bill credit and will be impacted by price increases.
- You receive your electricity from an electric cooperative or a municipal electric utility that obtains some or all of its electricity from Dominion or might need to do so in the future.
- You have friends or family members who fall into one of the three above categories.
- You are an Appalachian Power (ApCo) customer but are concerned that NextEra might want to acquire ApCo in addition to Dominion Energy.
- You believe it’s inevitable that this merger would have a huge impact on Virginia’s utility structure and that the potential risks are too great.
How can you submit a comment? …
Go to this SCC webpage: scc.virginia.gov/about-the-scc/dominion-nextera-merger-updates/ and follow the instructions there.
What sort of comment could you make? Here are some examples, but say what you believe …
If you are not in favor
- You are not clear whether your electric bills would increase and you can’t afford higher bills, so you want the SCC to deny the merger request.
- You are uncomfortable that an out-of-state giant utility would have so much control over Virginia’s electricity generation and distribution.
- You don’t believe the SCC can gather all the needed information and assess that information in just six months and ask them to extend the decision period.
- The merger proposal doesn’t provide assurances about the benefits or outline the drawbacks of the merger for customers like you.
- If you think the proposed merger is about servicing the large number of data centers VA has been approving and adding more of them, you are concerned about how the newly formed company would be ready to take on such projects while continuing to guarantee that it has the capacity to provide the necessary electricity to all customers.
- You believe the merger could bring more large transmission line projects to where you live and would negatively affect the quality of life in your community.
- You are concerned that NextEra Energy will add more air polluting power plants in Virginia or import energy from such plants in other states.
If you are in favor
- You believe bigger is better and you think the SCC should approve the merger.
- You believe the merger would enable Virginia to approve more data centers, that large-scale data center developments are important drivers of economic benefits to many Virginia communities.
- You believe NextEra would bring improved results for customers over what Dominion has provided.
Whether or not you offer a comment to the SCC, you may wish to listen to the “evidentiary hearing” that will begin Nov. 17 in Richmond.
This link will tell you how to join the SCC’s webcast of the proceedings: scc.virginia.gov/case-information/webcasting.
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