CHARLOTTESVILLE, VA (CVILLE RIGHT NOW) – Gov. Abigail Spanberger will intervene at the State Corporation Commission (SCC) level about the proposed $67 billion merger between Virginia-based Dominion Energy and Florida-based NextEra, according to a Thursday morning release from the Governor’s Office.
Spanberger is expected to push for certain assurances from Dominion as it goes before the State Corporation Commission for approval of the deal.
A Dominion spokesperson told Cville Right Now on Thursday morning that the company was working on a response to the Governor’s announcement.
The Governor, according to the announcement, will hold an afternoon virtual media briefing on her action, which the release said is “the first time a Governor of Virginia has taken such an action at the State Corporation Commission (SCC).”
The announcement referenced a new Washington Post op-ed she herself wrote that outlined some of her reasoning.
“The Governor outlined the three non-negotiable priorities that will guide her involvement as the SCC conducts its review: delivering more affordable energy bills for Virginia families and small businesses, protecting Virginia’s utility workforce, and accelerating Virginia’s progress toward producing affordable, reliable, local, and clean power into the future,” according to the announcement.
“We welcome the Governor’s participation in the regulatory process and agree with her priorities of affordability, protecting Virginia jobs and supporting the Commonwealth’s energy future,” Dominion Energy Chair, President and CEO Robert M. Blue told Cville Right Now in a statement. “Those priorities are at the core of this proposal. The transaction includes $1.78 billion in NextEra shareholder-funded bill credits for Virginia customers, as well as long-term benefits from greater purchasing power and lower borrowing costs. It also includes strong employment protections and career opportunities for Virginia employees, as well as commitments to maintain a significant Virginia presence, headquarters and local leadership. The proposal will leverage NextEra Energy’s expertise as the world’s leading clean energy developer to help meet Virginia’s growing energy needs.
“As the Governor noted, the SCC is the appropriate forum to evaluate this transaction and balance the interests of the Commonwealth, and we are confident its established, fact-based review will demonstrate the benefits this proposal offers Virginia,”
The merger will create the world’s largest regulated electric utility business, serving approximately 10 million customer accounts across Virginia, Florida, North Carolina and South Carolina.
The company will be more than 80% regulated and own 110 gigawatts of generation across a variety of energy sources.
The merger comes in the midst of a historic demand for energy. Virginia is far from an exception, as its large amount of data centers, particularly in Northern Virginia, has heavily contributed to a stark increase in demand.
Dominion spokesperson Tim Eberly told Cville Right Now on Tuesday the company was anticipating energy demands in Virginia to double over the next 20 years, with the company planning to add 33 new gigawatts of new power generation over the next two decades in response.
Dominion CEO Robert Blue, who will stay with the newly merged company as President and CEO of Regulated Utilities and join its Board of Directors, said the merger “brings together two strong operating platforms and creates an even stronger energy partner for Virginia, North Carolina, South Carolina and Florida, with the scale and balance sheet to deliver the generation, transmission and grid investments our customers and economies need.”
Blue added the company is committed to retaining its teams in NextEra’s current headquarters of Juno Beach, Florida, and Dominion’s headquarters of Richmond. Both buildings will serve as the new company’s dual headquarters, and the company is also keeping Dominion Energy South Carolina’s team and operational headquarters in Cayce.
