Dominion Energy on Monday said it updated some of the terms for its proposed merger in Virginia with Florida electric company NextEra, as the company seeks to win over Democratic skeptics.
If approved by state regulators, the $67 billion deal is expected to be the largest utility merger in U.S. history. The companies this week promised their “enhanced” package would create an additional 1,000 jobs in Virginia, double a $10 monthly residential bill credit from two years to four years, and invest in the state’s economy and supply chain through a $100 million workforce development fund, as well as up to a $1 billion annual, five-year Virginia supplier program. As part of the expanded deal, the proposed merger would also expand low-income financial assistance by increasing EnergyShare, Dominion Energy’s shareholder-funded energy bill assistance program, by $100 million through 2038.
“This is a Virginia-first package, and it starts with customers,” NextEra Energy President John Ketchum said. “This package would help Virginia build more of the clean energy and infrastructure it needs faster, so the Commonwealth can reduce its reliance on expensive imported power. And it would do that while positioning Virginia as a major energy leader, bringing NextEra Energy jobs, good-paying supplier jobs, workforce investment, economic development and national-scale energy technology and innovation to Virginia. This is the kind of customer-focused, job-creating package this combination makes possible.”
The merger was announced in May and could be approved by the State Corporation Commission by the end of the year. The SCC is set to hold an evidentiary hearing in the case in mid-November.
Dominion Energy’s effort to sweeten the terms of the deal for consumers comes as Gov. Abigail Spanberger (D-VA) and mostly Democratic critics in the state legislature have questioned the proposal over concerns that it could give the company outsize power and raise energy rates for consumers.
Lawmakers most recently pressed Spanberger to call a special session so they could extend the time period that state regulators have to review the merger. The governor declined to do so earlier this month, arguing lawmakers already had a chance to extend the SCC’s timeline for review, though she still vowed to continue pressing Dominion, noting she has already taken the “unprecedented” step of formally intervening and participating in the SCC case.
On Monday, Dominion sought to appeal to critics by assuring them it would protect consumers from rate hikes.
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“We are also reaffirming our support for the State Corporation Commission, Governor and General Assembly’s efforts to protect residential and small business customers from costs associated with serving data centers,” the company wrote.
Dominion and NextEra filed their merger application with the SCC on July 15. Under Virginia law, the SCC has 180 days to make a decision, meaning the commission’s review is expected to run into January.
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[ H/T Washington Examiner ]
