SCC orders NextEra to produce records tied to political allegations

RICHMOND, Va. — A State Corporation Commission hearing examiner has ordered NextEra to produce additional records involving past political allegations, an internal investigation, and the company's dealings with political consultants, as regulators review its proposed $67 billion merger with Dominion Energy.

The ruling came after arguments from both NextEra and Clean Virginia were heard in person at a hearing two weeks ago.

PREVIOUS COVERAGE: NextEra's alleged 'political scandals' raise questions amid Dominion merger review

Regarding Clean Virginia's motion to compel, the SCC hearing examiner said certain records involving NextEra's governance and management are relevant to the commission's review of Dominion Energy's proposed merger with Florida-based NextEra.

Clean Virginia attorney Greg Habeeb argued in favor of surfacing those records.

"I don't know how the commission builds a record about Nextera acquiring this entity without understanding Nextera." Habeeb said.

"The behavior of the party acquiring Virginia's largest electric utility is clearly relevant to evaluating the any potential impairment or jeopardy." Habeeb said.

One of the most significant pieces of evidence is a document referred to as the "Robo Memorandum." In response to the request to surface the material, NextEra attorney Joseph Reid said it is not relevant.

Despite the objection, the examiner ruled that the document — or package of documents — is discoverable because it could lead to admissible evidence about whether the proposed acquisition could affect service to Virginia ratepayers.

The ruling also addresses an internal investigation discussed by then-NextEra Chairman James Robo during a January 2022 earnings call. Robo said NextEra had conducted what he described as an extensive investigation into allegations that Florida Power and Light secretly used corporate funds to influence elections, target elected officials, and intimidate journalists.

Clean Virginia sought the investigation's findings, its scope and methodology, who conducted it, and what actions NextEra took as a result.

Reid pushed back, saying the allegations should not turn the merger case into a trial within a trial.

"The Federal Elections Commission has not found any wrongdoing by Nextera in either Florida or South Carolina. Criminal investigations in Florida around political misconduct did not result in any charges against company employees." Reid said.

However, the examiner ruled that information is discoverable.

MORE MERGER COVERAGE: Domionion-NextEra merger: SCC hears arguments on Clean Virginia motion to compel

The ruling also requires NextEra to provide additional records involving political consulting firms and individuals. Those records include contracts, statements of work, invoices, payments and work product involving Matrix LLC, Canopy Partners and entities controlled by Jeff Pitts or Joe Perkins dating back to January 2013. All of that information is ordered to be produced by NextEra this week.

Clean Virginia Executive Director Brennan Gilmore responded to the ruling.

"As the ruling put it, a public utility 'and any entity that controls it' is more than the people who keep the lights on, and the responsibilities of its management and board are far broader. How NextEra's leadership responded to serious allegations about Florida Power & Light's use of corporate resources to influence elections and target officials goes directly to how it would govern Dominion." Gilmore said.

The SCC still has until January to decide whether the merger moves forward, despite multiple calls — including from the state's attorney general — to restart the clock.

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