Gov. Spanberger urges rate freeze; SCC staff recommends denial of Dominion-NextEra merger

RICHMOND, Va. — The proposed $67 billion merger between Dominion Energy and NextEra Energy is facing new opposition, with State Corporation Commission staff recommending regulators deny the deal as currently proposed and Gov. Abigail Spanberger calling for a six-year freeze on residential base electricity rates.

In testimony filed Monday, SCC staff said the two companies have failed to prove the merger would not jeopardize reliable electricity service at reasonable rates.

Watch: NextEra CEO pitches Dominion merger; critics demand Robo memo answers

“Staff concludes that the Merger as proposed in the Joint Petition should be denied by the Commission,” staff wrote.

At the center of staff’s concerns are the financial risks associated with NextEra’s unregulated businesses and whether commitments made by the companies go far enough to protect Virginia customers.

"The Merger, if approved, would not be easily undone and would have very long-lasting impacts in Virginia," the filing states.

However, SCC staff is not closing the door on the merger altogether.

Instead, staff is calling for additional protections, including an independent Dominion Energy Virginia board of directors, restrictions on dividends and a requirement to maintain current Virginia employee levels for 10 years.

Watch: Dominion Energy CEO defends NextEra merger

Staff also wants another regulatory proceeding seven to eight years after the merger closes to examine whether Dominion is still providing adequate service at just and reasonable rates.

If Dominion and NextEra agree to the additional requirements outlined in the testimony, staff said it would not oppose approval of the merger.

The governor is also calling for significant changes before the merger moves forward.

In a separate SCC filing, Spanberger called for residential base electricity rates to be frozen for six years and for customers to receive nearly $1,400 in bill credits over four years.

The governor is also calling for monthly bill credits to triple to $29 for four years.

Spanberger is pushing for additional guarantees to protect Virginia jobs, ensure data centers pay for their own energy needs, strengthen investments in clean energy and establish enforceable commitments to hold both companies accountable.

Without those changes, Spanberger is urging the SCC to deny the merger.

“As Governor, I will continue to advocate aggressively on behalf of Virginians over the coming months, and I remain deeply skeptical that the proposed $67 billion merger, as currently structured, will adequately protect consumers and deliver meaningful public benefits. Without enforceable commitments that meaningfully prioritize ratepayers, lower energy costs, protect Virginia’s utility workforce, and advance Virginia’s energy goals, the State Corporation Commission should reject this merger.”

CBS 6 reached out to NextEra and Dominion Energy about these developments. A NextEra spokesperson responded saying their team is reviewing the filings and will address the issues raised.

"As expected in a proceeding of this size and significance, today's testimony reflects a wide range of viewpoints and interests," Neil Nissan, NextEra Spokesperson, said.

Nissan went on to say the merger, as it stands currently, represents a generational investment to Virginians.

"The proposed combination of Dominion Energy and NextEra Energy represents a generational investment in Virginia's customers, communities and economic future, delivering more than $2.1 billion in near-term direct customer and community benefits through bill credits, bill payment assistance, workforce development and charitable investments, creating 1,000 new direct jobs, and maintaining Dominion Energy's current Virginia workforce for five years," Nissan said. "The combination will also strengthen our ability to invest in reliability and critical infrastructure while helping keep energy affordable for Virginia families and businesses. Dominion Energy Virginia will remain locally led, separately regulated and fully accountable to the State Corporation Commission."

The decision on whether the merger moves forward rests with the State Corporation Commission. A decision is expected in January.

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