Virginia Republicans urge special session to extend Dominion, NextEra merger review

Virginia lawmakers want more time to examine a proposed mega-merger that could influence electric rates, long-term energy planning, and the bargaining position of millions of customers.

What's happening?

If it goes through, Dominion Energy's proposed merger with Florida-based NextEra Energy would create the largest utility in the country, according to the Virginia Mercury. Opponents say Virginia should not be pressured to approve the deal ahead of everyone else.

Roanoke County Republicans Sen. David Suetterlein and Del. Joe McNamara have asked Gov. Abigail Spanberger to convene a special legislative session so lawmakers can weigh whether Virginia's review window for the Dominion-NextEra merger should be expanded.

The State Corporation Commission has only six months to decide the application, the Virginia Mercury noted. The proposed transaction is worth about $67 billion and would unite 10 million customers, 110 gigawatts of generation, and a 130-gigawatt connection queue.

In a release, Suetterlein and McNamara said Virginia's leverage would shrink if the state is made to act first. 

"By forcing Virginia to be the first state to approve, Virginians lose negotiating strength, and our ratepayers will suffer the economic consequences," the lawmakers said. 

The merger must also be cleared by regulators in North Carolina and South Carolina, as well as the Federal Energy Regulatory Commission and the Nuclear Regulatory Commission. Before the case clock began, Virginia Lieutenant Gov. Ghazala Hashmi criticized the proposal and sent the applicants 64 questions, which remain unanswered, per the Mercury.

Why does it matter?

For Virginians, the issue is about more than a change in corporate ownership. The merger could influence electricity costs, the consumer protections attached to the deal, and whether the state secures the strongest terms available before a transaction of this scale proceeds.

The lawmakers pointed to $2.25 billion in bill credits promised to customers in the three states. They say that if Virginia approves the deal before the others do, stronger concessions won later elsewhere might never be passed along to Virginia households. As they put it, per the Mercury, "If Virginia acts first, later concessions secured elsewhere may never reach Virginia customers."

The debate also includes bigger concerns about climate policy and oversight. Spanberger has said she wants a clearer picture of the merger's possible effects on jobs and renewable energy investment in Virginia. Advocacy groups, meanwhile, have pointed to NextEra's political lobbying and its history of unsuccessful utility merger efforts in other states.

What's being done?

Suetterlein and McNamara argue that an August special session is the only way to give the General Assembly enough time to extend the review period before the six-month deadline becomes an issue. Under Virginia law, legislation passed in a special session typically takes effect four months later, which they say would make any later session much less useful.

Dominion has said it will keep communicating about the merger and will continue carrying out its responsibilities to Virginia customers. Bill Murray, Dominion's senior vice president of corporate affairs and communications, said, per the Mercury: "The person responsible for the Dominion footprint today, in terms of public policy, government affairs, is me. After this closes it's me."

Spanberger, meanwhile, described the issue in broader terms: "How will this merger potentially really ensure that Virginia is working towards our renewable energy goals, but also that as we are continuing to expand our generation that we are doing so in a way that is sustainable and affordable?"

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