Constituent Resources for the  
Dominion-NextEra Merger

Timeline of the Proposed Merger and SCC Review

Back in May, Dominion sent out a press release announcing a merger that would "create the world's largest regulated electric utility business by market capitalization."

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NextEra Energy Inc. is an energy company which owns and operates the regulated utility company Florida Power and Light, and is headquartered in Florida. The proposed merger would effect Dominion costumers in Virginia, North Carolina, and South Carolina. This merger has given rise to many concerns from our constituency due to the speed of the implementation and the possibility of increasing energy costs. 

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It is important to understand the timeline that the State Corporate Commission (SCC) has to consider and act upon the petition. Here is a projected timeline based on the Virginia Utility Transfers Act:

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• May 2026: Merger Announced

• July 15, 2026: Joint filing with the SCC 

  • SCC's 60 day window to review the merger begins

• The SCC extended this timeline by 120 days as permitted by statute to allow more time to investigate and render their decision 

  • This allows time for public comment and hearings

• July 21: SCC files Order for Notice and Hearing

  • Nov. 2: Last day to register as a public witness for these hearings

  • November 5, 9, 10 - Public Hearings in Richmond with witnesses by telephone

  • SCC staff report to SCC commissioners on their findings

• September 23: FERC finds that the Dominion-NextEra petition for federal approval is deficient and allows 30 days to respond

• October 9: SCC holds a Public Hearing in Fairfax County

• General Assembly could hold independent oversight hearings and propose letters to the SCC

• November 2: Last day to register to provide testimony 

• November 9: Last day to submit written comments to the SCC

• November 17: SCC Evidentiary Hearing begins

• SCC commissioners vote on a decision (approve merger, exhibit conditions, or deny merger)

• The merger must also be approved by the federal government and the other states involved

  • Under the Federal Power Act, FERC is given 180 days to review the proposal, which it may extend by an additional 360 days

  • FERC's review timer will restart when they receive an amended filing in late October

• Close on the merger could potentially be as soon as the second half of 2027

• Follow along or submit public comment on the SCC's website

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Utility bills have increased over the last couple years, specifically electricity bills. The May press release stated that a proposed $2.25 billion in bill credits would be distributed over the first two years after the closing of the merger. More recently, Dominion announced they would increase the proposed bill credits from two years to four years, along with other sweeteners. In response, Attorney General Jay Jones requested that the SCC reset the 6 month review period, stating that these changes are tantamount to a new proposed deal. The SCC has not responded to this request.

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Virginia Law and the Standard for the SCC's Review

The Virginia Utility Transfers Act, Virginia Code § 56-88-92, governs any acquisition or disposal of public utility assets. This law delegates the authority to approve or deny the deal to the State Corporation Commission, dictates the timeline for them to do so, and establishes the standards the companies must meet in order for the deal to be approved. That standard is as follows:

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"If and when the Commission, with or without hearing, shall be satisfied that adequate service to the public at just and reasonable rates will not be impaired or jeopardized by granting the prayer of the petition, the Commission shall make such order in the premises as it may deem proper and the circumstances require..."

 

It is important to recognize that this not only requires the SCC to find that the deal will not impair service or lead to unreasonable rates, but also empowers them with broad authority to order the companies to take future actions to ensure that the interests of Virginians come first. 

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I remain concerned that the SCC must scrutinize this deal to ensure Virginians would see sustained benefits. The Spanberger administration has intervened in the proceeding before the SCC to ensure the interests of Virginians come first.

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NextEra could potentially bring experience developing solar and battery storage resources to our commonwealth at a time when the Data Center industry is already straining the grid. However, there are also concerns that an out of state corporation would be less responsive to the requirements of the Virginia Clean Economy Act and other state priorities.

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Some have demanded that Governor Spanberger call a Special Session to address this issue, but in fact the Senate of Virginia remains in session, and legislation could be introduced at any time. We will keep you updated on any actions taken by the General Assembly that could alter the SCC's review.