Lawmakers warn $67B Dominion-NextEra merger could spike energy bills

CHESTERFIELD COUNTY, Va. — A group of 14 federal legislators is warning that a proposed $67 billion merger between Dominion Energy and NextEra could make electricity rates worse for American families — who are already facing a 15% rise in residential electricity prices since January 2025.

Legislators say families are projected to spend an average of $110 more on electricity bills in 2026 than they did last year.

On Wednesday, Reps. Suhas Subramanyam and Eugene Vindman, along with 12 other legislators, sent a letter to the Federal Energy Regulatory Commission raising concerns about the deal.

"This megamerger may consolidate competitive power markets and raise electricity rates even more for American families," the letter said.

At the heart of the legislators' concerns is the scale of the combined company, which would become the largest regulated utility in the world. The merged entity would function as both a massive power generator and a massive power-providing utility — a structure lawmakers say poses significant risks.

Specifically, the letter warned that approving the merger could allow the combined company to unfairly favor its affiliates, pass costs onto ratepayers, block investments in cheaper energy sources, and potentially evade scrutiny from federal and state regulators.

Lawmakers also cautioned against taking the proposed bill credits at face value, pointing to NextEra's 2014 attempt to merge with Hawaii's utilities. During that effort, the company offered similar bill credits — but regulators ultimately rejected the deal.

"This is a playbook NextEra has used before. During the company's 2014 merger attempt with Hawaii's utilities, the company promised the state's utility commissioners that it would offer residential customers credits to offset increased electricity costs. Yet Hawaii's regulators rejected the merger after it determined that NextEra's rate credit assurances were 'inadequate' and that the merger would prevent robust competition in Hawaii's energy markets. FERC should similarly be skeptical of promises for rate credits in this case," the letter said.

Legislators are urging FERC to deny the merger application unless NextEra and Dominion can show the transaction will have no harmful effect on competition, rates, or regulation.

"There is precedent for FERC blocking acquisitions that fail to meet these standards. For example, in 2019, FERC blocked GridLiance's purchase of transmission lines and related facilities from People's Electric Cooperative based on concerns that the transaction would raise energy prices on households. And in 2013, FERC blocked Saddle Mountain Power's purchase of a power plant from MACH Gen because the transaction would significantly increase market concentration," the letter said.

CBS 6 is committed to sharing community voices on this important topic. Email your thoughts to the CBS 6 Newsroom.