Virginia lawmaker says Dominion-NextEra 'backroom deal' would hike bills, sink trust

A $67 billion proposal to merge two utility giants is facing heavy opposition in Virginia, where opponents say the deal could raise the prices residents pay for electricity.

U.S. Representative Eugene Vindman has now joined the calls to reject the merger, saying it would increase bills and further damage public confidence.

What's happening?

Dominion Energy and Florida-based NextEra Energy announced the proposed merger on May 16, according to the Prince William Times. If regulators approve it, the new company would be the largest utility in the United States, with 10 million customers and supplying 110 gigawatts of power.

In a letter to the Virginia State Corporation Commission, Vindman asked regulators to turn down the proposal and labeled it a "backroom deal." He said the merger would further weaken Virginians' trust that their utility is acting in the public interest. Vindman also cited billing trends at NextEra's Florida subsidiary, Florida Power & Light. 

Records show that Florida Power & Light customers' bills rose by a staggering 33% over the past five years. 

Yet, Dominion disputes that this would happen in Virginia. The company said Virginia customers would receive $1.78 billion in bill credits paid for by NextEra shareholders over two years, which it says would cut $10 from monthly residential bills, according to the Prince William Times. It also said the Virginia State Corporation Commission would continue to control electricity rates in the state, according to the outlet.

Why does it matter?

For almost every household, electricity is not optional. Even relatively small monthly increases can add pressure to budgets already strained by inflation across housing, groceries, insurance, and transportation costs.

Critics also argue the merger could place even more power in the hands of a massive utility while shifting risk onto customers, especially if the promised savings do not hold up over time.

The region's deep ties to energy-hungry data centers are another source of concern. The combined company would also have to contend with another 100 gigawatts in pending data center demand, on top of the 110 gigawatts it is already supplying, according to the Prince William Times.

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