Staff at Virginia's State Corporation Commission have recommended that regulators reject the proposed $67 billion merger of Dominion Energy and Florida-based NextEra Energy as currently proposed, saying the companies have not proved the deal would leave Virginians with adequate service at just and reasonable rates.
Source: Virginia Business
In filings made Monday after a months-long investigation, five SCC staff members concluded the merger would expose Dominion Energy Virginia to the additional financial and business risks of NextEra's unregulated, competitive businesses, and that the companies' merger commitments are not sufficient to ensure Dominion keeps the resources to serve its customers after the deal.
Governor demands a six-year rate freeze
The same day, Gov. Abigail Spanberger said the SCC should reject the merger unless the two utilities agree to freeze Virginia residential base rates for six years and triple the monthly bill credits offered to customers. Her administration's filing seeks a $29 monthly rebate for four years, compared with the companies' proposed $10-a-month credit, and says large data centres should bear the cost of their own energy needs rather than families.
Source: WHRO
Separately, Monitoring Analytics — the independent watchdog for the PJM regional grid — filed a protest with the Federal Energy Regulatory Commission urging it to reject the merger, arguing it would create “an unprecedented amount of economic and political power for NextEra,” deter competition and affect PJM's governance.
The recommendation is not the final decision. The SCC's commissioners must decide whether to approve the merger by January 15, 2027. Staff also recommended safeguards if the deal proceeds, including extending workforce protections to 10 years after the merger.
The case is one of the biggest utility decisions Virginia regulators have faced, landing as household electricity bills climb and data-centre growth drives up demand for power across the state. Dominion and NextEra must prove under Virginia law that adequate service at just and reasonable rates “will not be impaired or jeopardized” by the merger — the test SCC staff say they have not yet met.