Virginia's proposed Dominion Energy-NextEra Energy merger is drawing pushback over a basic but high-stakes question: Will families actually benefit if the deal moves forward?
Virginia Lt. Gov. Ghazala Hashmi wants regulators to slow down and take a deeper look before a utility giant gets even bigger.
What's happening?
Before Dominion Energy and NextEra Energy can submit their merger application, they must respond to a standard list of questions from the State Corporation Commission.
According to WTVR CBS 6, Hashmi wants the pre-filing process expanded from 28 questions to 64.
Hashmi says the usual six-month commission review is not enough for a merger this large.
If the transaction is approved, the outlet said, the combined company would become the largest energy company in the country.
TCD Picks » Good Store Spotlight
Get 10% off your next purchase with code TCD10
Hashmi's proposed list would press the companies for details on costs, benefits, risks, governance, competition, and customer impacts.
Hashmi has said her main concern is affordability.
"We know that electric costs are rising. The monthly electric bill is something that many families are having challenges in paying, and if this acquisition means increased costs for our families, that's my top-line concern," she said, per CBS 6.
Why does it matter?
Dominion Energy President Ed Baine said the merger would provide $1.8 billion in bill credits to customers, with those credits continuing for two years after the deal closes.
TCD Picks » Quince Spotlight
💡These best-sellers from Quince deliver affordable, sustainable luxury for all
What's being done?
Hashmi's letter looks to give regulators a fuller picture of the proposal before the formal review period begins.
Her push for 64 questions instead of 28 would require Dominion and NextEra to explain more about how the merger would function, what it would cost, who would lead the combined company, and what customer protections would be available.
Dominion expects to file its formal merger application in the coming months.
"We've got a company from another state that is proposing to acquire our large electric utility," Hashmi said, per CBS 6. "I think we need to be careful, and ensure that five years, 10 years down the line, we're not going to regret this decision."
Baine, meanwhile, said, "If you look roughly, if you allocate across the classes, it's roughly a $10 per month credit for a residential customer."
Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.
