Virginia governor Abigail Spanberger intervenes in $67B Dominion-NextEra merger

RICHMOND, Va. — Gov. Abigail Spanberger said Thursday she will formally intervene in the proposed $67 billion merger between Dominion Energy and Florida-based NextEra Energy, becoming the first Virginia governor to take such action before the State Corporation Commission.

The SCC faces a January deadline to decide whether to approve the deal, which would create what the companies describe as the world's largest regulated electric utility.

"In the process of intervening, I will become a party to this case, and that means that I will be able to raise specific concerns, put forth specific questions that will have to be answered by NextEra and Dominion, and be part of what it is that the SCC reviews as they are making their decision," Spanberger said.

In a Washington Post op-ed, Spanberger said she is "deeply skeptical" about whether selling Virginia's largest state-regulated utility to an out-of-state company would benefit the commonwealth.

"That is why I will be taking the legal step of 'intervening' in this proposed merger," Spanberger wrote. "I know this action is unprecedented by a Virginia governor — but so, too, is the size of this proposed merger and its potential impact on the commonwealth."

Spanberger said her involvement will focus on 3 priorities.

"And that is long-term affordability measures. It is ensuring that Virginia jobs stay Virginia jobs, particularly as NextEra has talked of a second headquarters. A second headquarters is one that creates growth and employs Virginians, and then also ensuring that we're committed to our long-term local reliable clean energy goals here in the commonwealth," Spanberger said.

NextEra has proposed a $10 monthly bill credit funded by shareholders that would last 2 years if the merger is approved. But Spanberger argued that if the companies expect long-term benefits from the deal, Virginians should as well.

"I also think that the benefits of this merger will last far longer for the companies that are participating than two years. So I would want to see the benefit to Virginians to last longer as well," Spanberger said.

"If two large corporations stand to benefit financially from this merger, so, too, should the Virginians who pay the bills," she said.

Dominion Energy Chair, President and CEO Robert M. Blue said the company welcomes the governor's participation and believes the proposal addresses her stated priorities.

"The transaction includes $1.78 billion in NextEra shareholder-funded bill credits for Virginia customers, as well as long-term benefits from greater purchasing power and lower borrowing costs. It also includes strong employment protections and career opportunities for Virginia employees, as well as commitments to maintain a significant Virginia presence, headquarters and local leadership," Blue said.

Blue added that the company is confident the SCC's review will demonstrate the benefits of the proposal.

"We are confident its established, fact-based review will demonstrate the benefits this proposal offers Virginia," Blue said.

The merger filing states the combined company would maintain headquarters in both Richmond and Juno Beach, Florida, and that Dominion's current leadership would remain in place. The companies have also pledged an 18-month job protection guarantee for Dominion employees.

Spanberger said her focus on jobs extends beyond the executive level — to the employees who work around the clock to keep your lights on.

NextEra CEO John Ketchum said there will be more job opportunities even after the 18-month job protection period expires.

"Dominion Energy's employees are one of the company's greatest strengths, with an unmatched understanding of the customers and communities they serve," Ketchum said.

Ketchum has also said the merger would more than double the size of the combined company by 2032.

"Which would mean good jobs for many years to come for our talented teams across the four states we would serve, and across America where we operate," Ketchum said.

In addition to the bill credits, the companies have pledged $55 million in capital investments over 5 years and $10 million annually for charitable causes over the next 5 years.

"This transaction represents a truly transformational opportunity to bring together two world-class utilities," Blue said during a recent earnings call.

The governor also addressed questions about a potential conflict of interest involving SCC Chair Kelsey Bagot, a former senior attorney for NextEra. While she acknowledged the concerns, she stopped short of calling for Bagot to recuse herself.

"At this point in time, I think I am relying on the professionalism and the deep experience that exists within the SCC commissioners," Spanberger said.

The merger proposal has drawn particular attention because of Virginia's rapidly growing data center industry and concerns over who pays for the infrastructure needed to support increased energy demand. Spanberger highlighted recent efforts by her administration to require data centers to shoulder more of those costs, including a push that resulted in the SCC ordering data centers to pay for transmission infrastructure built specifically for their facilities rather than shifting those costs onto residential customers. She also pointed to a statewide tax on data center energy consumption that she said was designed to ensure the industry pays "its fair share."

Dozens of Virginians rallied in Richmond last month, urging regulators and state leaders to closely examine the proposal amid concerns about corporate consolidation and future utility costs.

"People are really just concerned about the consolidation of power," Dominion customer Jennifer Corpus said during the July rally.

Regulators could approve the deal, reject it or impose conditions before the merger can move forward. The proposal also faces reviews from federal regulators and utility commissions in North Carolina and South Carolina. Dominion and NextEra have said they expect the transaction to close in the second half of 2027.

"To be clear: Taking this action does not mean I intend to make the SCC's decision for it," Spanberger wrote. "Instead, I am seeking to make sure Virginians have a voice in the process."

If you want your voice heard during the approval process, you can register to testify at an SCC hearing or submit written public comments to state regulators.

This is a developing story. Email the CBS 6 Newsroom if you have additional information to share.