Dominion Energy’s merger plan sharpens affordability questions for N. Va. lawmakers

A proposed merger between Dominion Energy and NextEra Energy raises new possibilities and further questions in the race to match Virginia’s booming energy demand.

NextEra, which seeks to create the world’s largest regulated electric utility business through the $67 billion acquisition, has framed the plan as a path toward reducing energy costs in an era of rising need, driven in part by the construction of new data centers to power AI.

“We are bringing NextEra Energy and Dominion Energy together because scale matters more than ever — not for the sake of size, but because scale translates into capital and operating efficiencies,” NextEra President and CEO John Ketchum said in a press release announcing the plan last week. “It enables us to buy, build, finance and operate more efficiently, which translates into more affordable electricity for our customers in the long run.”

Seeking to close the transaction in the next 12 to 18 months, NextEra is pursuing approval from the Federal Energy Regulatory Commission and the Virginia State Corporation Commission (SCC), in addition to similar commissions in North Carolina and South Carolina.

As of yesterday (Tuesday), a formal application still hadn’t been filed with Virginia SCC. However, some Northern Virginia lawmakers say they will be keeping a close watch on this merger, seeking to ensure that creating such a large utility actually has the promised effect of driving down energy costs — a key policy goal, but a notoriously difficult one to achieve.

“Virginia is facing unprecedented energy demand and needs to consider every possible solution,” Del. Alfonso Lopez (D-3) told ARLnow. “However, any proposed merger must have appropriate oversight and help protect ratepayers — not leave them vulnerable to increased rate hikes. My colleagues and I will closely monitor these developments and continue working to bring down energy costs for Virginia families.”

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