The proposed $67 billion combination of Dominion Energy and NextEra has lost support from one of Virginia's top officials. Lt. Gov. Ghazala Hashmi said the takeover wouldn't be good for the state.
Her objections center on affordability. Residents told her they fear the enlarged utility could add to monthly electric bills that have already been climbing.
Here's what to know
As the Virginia Mercury reported, Hashmi is the first statewide elected official to object to the deal. She argued that the merger would create the country's largest regulated utility without enough safeguards for customers if rates rise.
Before taking that position, she held a five-city listening tour that included Loudoun County, Norfolk, Richmond, Charlottesville, and Roanoke.
At a news conference in Richmond, Hashmi said conversations with industry officials, reviews of expert analysis, and feedback from hundreds of Virginians led her to conclude the merger shouldn't proceed, as the Mercury detailed. The concern she said surfaced most often was the possibility that utility bills would keep climbing after years of higher energy costs.
State Sen. Mike Jones also spoke out against the proposal, saying he is concerned the companies are more focused on serving data centers than residents. He dismissed the companies' revised pledges, including four years of bill credits and a headquarters office in Richmond, as insufficient.
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"A promise and a press release is not protection on a power bill," Jones said, per the Mercury.
More background
The merger's potential costs and benefits may not fall evenly.
NextEra and Dominion say a combined company could cut some costs as the business buys energy infrastructure in bulk and benefits from better credit ratings. Hashmi said those potential corporate benefits wouldn't necessarily lead to lower or more affordable bills for households, according to the Mercury.
In Loudoun, residents wondered who would benefit from the new infrastructure tied to Virginia's data center boom and who would pay for it.
In Charlottesville and Roanoke, residents asked about regional cost allocation and the companies' clean energy commitments.
In Norfolk, the concerns were especially acute because of climate and flood risks, the Mercury reported. A report by Hashmi noted residents questioned both storm resilience and financial vulnerability in a city where an Army Corps of Engineers study identified a heightened risk of severe flooding and where officials are working through a $6.1 billion plan for coastal storm protection.
What's being done?
State regulators are reviewing the merger, and the State Corporation Commission has already expanded the record.
An SCC examiner decided Oct. 2 that records tied to NextEra's past bid for a Florida utility belong in the case file following a motion from Clean Virginia, a clean energy advocacy group, according to the Mercury.
Lawmakers are also pressing company leaders. During an Energy Commission of Virginia hearing, state Sen. Scott Surovell questioned NextEra Vice Chairman Armando Pimentel about unsuccessful acquisition efforts in Texas, Hawai'i, and South Carolina as well as whether the merger would include adequate "ring fencing," or financial protections, to prevent abuses such as excess dividend transfers.
Meanwhile, Attorney General Jay Jones and other leaders have argued for a longer SCC review period. The commission has also added three in-person public hearings along with three days of telephonic testimony and written comments.
Regulators must decide on the deal by Jan. 11 unless they extend the timeline.
"The public wanted assurances that this most essential public good will remain safe and will remain reliable," Hashmi said. "They want assurances that this merger is going to bring a public benefit, rather than increased financial hardships, to our ratepayers."
Where can I learn more?
These stories examine merger scrutiny and the pressure on power bills in Virginia.
• Officials demanded a 64-question review of the Dominion-NextEra merger.
• Households faced an $8 jump in Dominion bills as fuel costs rose.
• Virginia lawmakers expanded a shared solar program to widen affordable access in Appalachia.
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