Power companies NextEra Energy and Dominion Energy announced enhanced benefits for Virginia on Monday as they seek approval for their proposed merger, an effort to address skepticism from state officials and residents.
The companies plan to establish a new shareholder-funded co-headquarters in Richmond, Virginia, create 600 new jobs, increase funding for workforce development, and double previously announced residential bill credits.
Amid growing voter concerns about data centers and their impact on electricity bills, the companies stated they would extend a $10 monthly bill credit for residential customers to four years from two. This extension would primarily be funded by ending bill credits previously allocated to large data center customers. "Both companies share the mindset that data centers need to pay their own way," said John Ketchum, president and CEO of NextEra Energy, in a joint interview with Dominion CEO Robert Blue.
Virginia is a significant hub for data centers. A spokesperson for the Data Center Coalition, an industry association, did not respond to requests for comment regarding the proposal to alter bill credits for data centers.
NextEra, based in Juno Beach, Florida, announced its intention to acquire Richmond-based Dominion Energy in May. At the time, the companies stated the merger would create the world's largest regulated electric utility business by market capitalization and one of the largest energy infrastructure companies globally. NextEra currently identifies itself as North America's largest electric power and energy infrastructure company, owning Florida Power & Light Company, which serves approximately 12 million people in Florida. Dominion powers about 3.6 million homes and businesses across Virginia, North Carolina, and South Carolina, and provides natural gas service in South Carolina. It is also the developer of the largest offshore wind project in the U.S.
The companies assert that customers will ultimately benefit from the combined entity's larger scale, which they argue will enable more efficient and cost-effective purchasing of equipment and construction of new power generation, partly due to reduced borrowing expenses. "We think as those residential four-year $10-a-month credits expire, we’ll be able to bring the benefits ... of scale that the combination realizes," Ketchum said.
Critics of the merger have raised concerns that the combined companies could wield disproportionate influence in the state legislature, where Dominion already holds considerable sway.
Dominion and NextEra also committed to increasing a low-income financial assistance program by $100 million through 2038 and maintaining current employment levels in Virginia for five years, in addition to the 600 new jobs.
Libby Wiet, a spokesperson for Virginia Governor Abigail Spanberger, stated that the governor's office is reviewing the companies' proposal. Spanberger has formally intervened in the state regulatory proceedings and has expressed significant skepticism about the merger's potential benefits for the state.
Legislative leaders, including House Speaker Don Scott and Senate Majority Leader Scott Surovell, have indicated that the companies' latest proposal represents progress. However, lawmakers and the governor have been discussing the possibility of a special session to extend the review timeline for Virginia regulators. Scott indicated Monday that such a session was not expected.
The Virginia State Corporation Commission, the regulatory body that will review the merger, has scheduled an evidentiary hearing for mid-November. The proposed merger also requires approval from other state and federal regulatory bodies, with the companies anticipating the deal's closure in the second half of 2027.