RICHMOND, Va. — Gov. Abigail Spanberger said Thursday she will formally intervene in the proposed $67 billion merger between Dominion Energy and Florida-based NextEra Energy, becoming the first Virginia governor to take such action before the State Corporation Commission.Her office says she will be the first Virginia governor to take such action before the State Corporation Commission.In a Washington Post op-ed, Spanberger said she is “deeply skeptical” about whether selling Virginia’s largest state-regulated utility to an out-of-state company would benefit the commonwealth.”That is why I will be taking the legal step of ‘intervening’ in this proposed merger,” Spanberger wrote. “I know this action is unprecedented by a Virginia governor — but so, too, is the size of this proposed merger and its potential impact on the commonwealth.”The SCC is reviewing the proposed acquisition, which would create what the companies describe as the world’s largest regulated electric utility.Regulators could approve the deal, reject it or impose conditions before the merger can move forward.Spanberger said her administration’s involvement will focus on three priorities, lowering energy costs for Virginia families and businesses, protecting utility workers, and ensuring continued investment in reliable and clean energy production.”If two large corporations stand to benefit financially from this merger, so, too, should the Virginians who pay the bills,” she wrote.
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Dominion Energy Chair, President and CEO Robert M. Blue said the company welcomes the governor’s participation and believes the proposal addresses her stated priorities.”The transaction includes $1.78 billion in NextEra shareholder-funded bill credits for Virginia customers, as well as long-term benefits from greater purchasing power and lower borrowing costs. It also includes strong employment protections and career opportunities for Virginia employees, as well as commitments to maintain a significant Virginia presence, headquarters and local leadership,” Blue said.Blue added that the company is confident the SCC’s review will demonstrate the benefits of the proposal.”We are confident its established, fact-based review will demonstrate the benefits this proposal offers Virginia,” Blue said.The governor’s announcement comes as public scrutiny of the deal intensifies.Dozens of Virginians rallied in Richmond last month, urging regulators and state leaders to closely examine the proposal amid concerns about corporate consolidation and future utility costs.”People are really just concerned about the consolidation of power,” Dominion customer Jennifer Corpus said during the July rally.Dominion and NextEra have defended the merger as beneficial for customers and workers.
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In filings with regulators and during recent earnings calls, the companies said the deal would include roughly $1.8 billion in bill credits, which executives estimate could lower residential energy bills by about $10 per month for two years.The companies have also pledged $55 million in capital investments over five years, an 18-month job protection guarantee for Dominion employees and $10 million annually for charitable causes over the next five years.”This transaction represents a truly transformational opportunity to bring together two world-class utilities,” Dominion CEO Bob Blue said during a recent earnings call.NextEra CEO John Ketchum said the merger would create long-term job opportunities and strengthen the combined company’s ability to meet rising electricity demand.He said the deal would more than double the size of the combined company by 2032.”Which would mean good jobs for many years to come for our talented teams across the four states we would serve, and across America where we operate,” Ketchum said.The merger proposal has drawn particular attention because of Virginia’s rapidly growing data center industry and concerns over who pays for the infrastructure needed to support increased energy demand.Spanberger highlighted recent efforts by her administration to require data centers to shoulder more of those costs, including a push that resulted in the SCC ordering data centers to pay for transmission infrastructure built specifically for their facilities rather than shifting those costs onto residential customers.She also pointed to a statewide tax on data center energy consumption that she said was designed to ensure the industry pays “its fair share.””To be clear: Taking this action does not mean I intend to make the SCC’s decision for it,” Spanberger wrote. “Instead, I am seeking to make sure Virginians have a voice in the process.”The SCC has 180 days to review the merger application.The proposal also faces reviews from federal regulators and utility commissions in North Carolina and South Carolina. Dominion and NextEra have said they expect the transaction to close in the second half of 2027.This is a developing story. Email the CBS 6 Newsroom if you have additional information to share.
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