RICHMOND, Va. — NextEra Energy announced Monday it will acquire Dominion Energy in an all-stock deal valued at about $67 billion, creating what the companies say would be the world's largest regulated electric utility business by market capitalization.
The merger comes as artificial intelligence drives unprecedented electricity demand across the United States, with the combined company positioned to serve approximately 10 million utility customer accounts across Florida, Virginia, North Carolina and South Carolina.
"Electricity demand is rising faster than it has in decades. Projects are getting larger and more complex," NextEra CEO John Ketchum said in a statement. "We are bringing NextEra Energy and Dominion Energy together because scale matters more than ever— not for the sake of size, but because scale translates into capital and operating efficiencies."
Ketchum will serve as chairman and CEO of the combined company, while current Dominion CEO Robert Blue will remain as president and CEO of regulated utilities and serve on the board of directors.
The deal represents one of the biggest proposed mergers this year and highlights the growing energy needs driven by data centers and AI infrastructure.
Richmond-based Dominion helps power hundreds of data centers across Virginia and provides regulated electricity service to 3.6 million homes and businesses in Virginia, North Carolina and South Carolina.
Juno Beach, Florida-based NextEra owns Florida Power & Light Company, which serves about 12 million people across Florida.
Bob McNab, an economics professor at Old Dominion University in Norfolk, said the merger is less about power customers and more about fueling the growth of AI data centers, particularly in Virginia, where Dominion Energy helps power hundreds of data centers across the state.
"Everybody's opening up their bills from their mailbox or getting that email and just groaning about the cost of electricity, and this probably does not mean those bills are going to go down," McNab said.
McNab said demand for electricity is only expected to grow as more data centers move to the commonwealth.
"Regardless of the merger, prices of electricity are going to continue to rise, because we've seen rising demand from industrial customers, largely data centers," McNab said.
In December, NextEra and Google Cloud announced an expansion of their partnership to build new data center campuses across the U.S.
Under the agreement, Dominion shareholders will receive 0.8138 shares of NextEra Energy for each Dominion share they own, plus a one-time cash payment of $360 million at closing.
NextEra stockholders will own 74.5% of the combined business, while Dominion stockholders will own 25.5%.
The combined company will maintain dual headquarters in Juno Beach, Florida, and Richmond, Virginia, while keeping Dominion Energy South Carolina's operational headquarters in Cayce, South Carolina. The business will operate under the NextEra name and trade under the "NEE" ticker symbol on the New York Stock Exchange.
The merger comes amid growing consumer pushback against rising electricity bills linked to AI data centers. Officials and lawmakers in at least six states — including Arizona, Indiana, Maryland, New Jersey, New York and Pennsylvania — are taking new steps to block utility rate increases, with some pressing utilities to change how they finance major system upgrades.
The deal requires approval from both companies' shareholders and various regulatory bodies, including the Federal Energy Regulatory Commission, the Nuclear Regulatory Commission, the Virginia State Corporation Commission, the North Carolina Utilities Commission and the Public Service Commission of South Carolina.
In a statement, Clean Virginia executive director Brennan Gilmore called on those in power to take a long look at the proposed merger.
"Before Virginia ratepayers are locked into a relationship with NextEra Energy, every policymaker and regulator in the Commonwealth needs to understand what NextEra has done in Florida and ask hard questions about whether Virginians can expect anything different," said Gilmore. "Virginians don't choose their electric utility. That's why the law requires utilities to serve the public interest — and precisely why any merger must be judged by one standard: does it make life better for the people who have no other option?”
Housing Families First, a local nonprofit that helps families keep the lights on, say they are worried higher energy costs could push more households into financial hardship.
"We're really going to be working towards how can we be thinking ahead, which oftentimes is something that families don't get to do when they're in crisis," Cindy Moussavou, deputy director of Housing Families First, said. "Our staff are geared up to counsel through, you know, what are the costs looking like? Are we able to make those payments? Do we need to access a payment plan with you?"
McNab said the merger could eventually help stabilize costs, but only if the company can successfully expand energy generation fast enough to meet demand.
"If that bet doesn't pay off, then you have to ask yourself, who ends up paying for that mistimed merger, and that would largely be residential customers," McNab said.
The transaction is expected to close in 12 to 18 months if approved.
Shares of Dominion jumped more than 9.6% in morning trading Monday, while NextEra's stock fell 5%.
This is a developing story. Email the CBS 6 Newsroom if you have additional information to share.
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