NextEra vice chair faces questions from Virginia lawmakers on merger

RICHMOND, Va. — Virginia Lt. Governor Ghazala Hashmi publicly opposed the proposed $67 billion merger between Dominion Energy and NextEra on Tuesday, saying the deal is not in the best interest of Virginians.

"I have concluded that the proposed take over of Dominion Energy and NextEra is not in the best interest of Virginians. I therefore oppose the proposal," Hashmi said.

The statement came moments after Dominion Energy Virginia President Ed Baine and NextEra Vice Chair Armando Pimentel faced questions from lawmakers about the company's proposed merger.

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One issue that quickly came to center stage was the so-called Robo Memorandum. NextEra received the memo in 2021 and Pimentel said the company launched an independent investigation.

"There were people that were charged for allegations that were included in the memo, and there are people that were incarcerated as a result of wrongdoing associated with allegations in that Robo Memo, but no one at FPL, NextEra Energy, or the companies themselves were ever charged on any of those allegations, and it's important," Pimentel said.

Delegate Irene Shin raised questions about a settlement involving NextEra and allegations of political interference in Florida.

PREVIOUS COVERAGE: SCC orders NextEra to produce records tied to political allegations

The State Corporation Commission ordered NextEra to release the Robo Memo as part of its review of the merger.

"Transparency is so vital if we are going to build public trust," Hashmi said.

When Shin said she and other legislators wanted to see the memo, Pimentel indicated the settlement had not been finalized.

"That proposed settlement is not final, and so we would not be releasing the Robo Memo out to the public, if you will. We are going to try to figure out how to provide information related to that to the folks that have asked for it and to into the SCC," Pimentel said.

Rising energy bills were also a top concern for legislators. Delegate Charlie Schmidt pointed to his own experience with rising costs.

"I went back and looked at my electric bill which has doubled in the last five years," Schmidt said.

After the energy commission of Virginia meeting, I tried asking Pimentel questions about affordability — questions residents have told me they want answered.

"There's a lot of opposition to this merger regarding Virginians worried about their power bill currently but also in the future. What is your comment on power bills in the future if this merger goes through," I asked.

Pimentel did not answer that question or many others I asked, including whether NextEra will ever speak to the media. I also asked him how reporters could reach him for a response.

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"Is there a way we can get a response from you, what is that avenue," I asked.

He did not answer that question either.

Commissioners also raised questions about Virginia's clean energy goals. Delegate Rip Sullivan pressed Pimentel on the issue.

"Does NextEra...recognize that if this transaction is approved by the State Corporation Commission, it will become NextEra's legal obligation to Virginians to use its formidable resources...to meet the clean energy goals?" Sullivan said.

"Yes, but if I might, there's a but," Pimentel said. "Yes, we understand the law, and yes, we are going to do everything we can to meet it. At some point, there may be a discussion, and I'm not saying it's today or a year from now or five years from now, but it may be a discussion not from us to you, but from you to us about affordability. And is there another way to get to where we want to go that is cheaper for our customers than going on this path? I don't know that. I can't predict the future, and I can't tell you today that I see that. What I see today is that we will meet the goal by 2045, but I want to make sure that we're all open because affordability is such an important issue," Pimentel said.

Ring-fencing was another topic discussed. I previously reported on how experts were calling for strong ring-fencing conditions, insisting that oversight not end when the merger closes. Commissioners asked Pimentel what ring-fencing might be appropriate for this merger, after bringing up how ring-fencing was a factor in why other attempts by NextEra to merge with other utilities did not go through.

WATCH: Virginia governor 'skeptical' of NextEra-Dominion Energy merger

"Our acquisition of Dominion Energy Virginia meets the ring fencing requirements, but again, there are different layers to ring fencing requirements. We have committed that Dominion Energy Virginia is going to be a separate company with separate management, with a separate board...We've also committed that funds will not be commingled; that they will have their own finance and treasury operations. They will be making their own decisions. That is a form of ring fence," Pimentel said.

Wednesday evening, the State Corporation Commission is holding its first in-person public hearing on the merger in Newport News. Richmond's hearing is scheduled for November 5.

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