RICHMOND, Va. —A proposed merger between Dominion Energy and NextEra would create one of the largest utilities in the country, and some state lawmakers and regulators are already raising questions about what the deal could mean for Virginia customers.
During a recent Commission on Electric Utility Regulation meeting, a Dominion executive, a state regulator, and a utility merger expert answered questions about the proposed deal.
"The merger...is probably some of the biggest utility news this state has seen in decades," Senator Scott Surovell said.
Dominion President Ed Baine said the merger would provide immediate relief to customers, including about $1.8 billion in bill credits to Virginia customers.
"If you look roughly, if you allocate across the classes, it's roughly a $10 per month credit for a residential customer," Baine said.
Commissioners questioned whether customers could eventually end up paying for the cost of the merger.
"Can you describe what you might propose that would protect rate payers from having to pay the costs of the merger?" Surovell asked during the meeting.
"Yeah, that's a great question, but merger related costs wouldn't be recovered from customers," Baine said.
Baine also said state regulators would continue to review any customer charges.
The company expects to file its formal merger application in the third quarter. After that, the State Corporation Commission, or SCC, will have up to 180 days to decide whether to approve the deal.
Watch: Dominion Energy and NextEra Energy agree to combine utility companies. What that means for Richmond.
One of the biggest questions raised during the hearing was whether the SCC has enough time to fully review a merger of this size.
"The answer that is yes. I mean, again, the commission has been reviewing mergers, acquisitions, transfers of assets for many years," Kim Pate with the SCC said.
Pate said the commission has staff with years of experience working on this case.
Commissioners also asked whether Virginia could lose influence if Dominion becomes part of a much larger company.
Baine said Dominion plans to keep major operations, leadership, and jobs in Virginia. He added there will be an 18-month job protection for Dominion employees and that hiring is not stopping.
"To give you a sense of what we're doing today, just in our Virginia utility, we're hiring 600 to 800 people every year to support our growth," Baine said.
Baine said there will be headquarters in both Florida and Virginia.
But utility merger expert Scott Hempling warned commissioners that the bigger issue is who controls the company.
"What is being transferred is control. All decisions ultimately are controlled by the owners, and the owner will be Nextera," Hempling said.
During public comment, multiple speakers — including those from Florida, where Florida Power and Light is a subsidiary of NextEra — urged lawmakers to proceed with caution.
"I'm here today to urge this body to keep Nextera out of Virginia," Shelby Green, a Florida resident, said.
Critics pointed to NextEra's track record in Florida.
"In Florida, the company oversaw the largest residential rate increase in American history... If this merger moves forward without strong guard rails, Virginia rate payers could face the same kind of unchecked cost increases," Jimmie Jarvis of Progress Virginia said.
Others brought up NextEra's past attempts to combine with companies in Texas and Hawaii.
"Regulators in other states have recently rejected similar proposed mergers, raising serious concerns about the impact to rate payers," Brandon Praileau of Virginia Solar United Neighbors said.
The SCC said there will be opportunities for the public to comment on the merger once the formal application is filed.
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