Virginia governor seeks rate freeze, more bill credits in Dominion-NextEra deal

Virginia Governor Abigail Spanberger is calling for a six-year freeze on residential electricity rates and additional customer bill credits as conditions of state regulatory approval of NextEra Energy Inc.'s planned acquisition of Dominion Energy Inc.

Without these ratepayer benefits and other binding commitments, Spanberger said the Virginia State Corporation Commission should reject the proposed $67.4 billion merger.

"Any proposed merger involving Virginia's primary state-regulated utility must benefit families, small businesses, and Virginia's workforce — not just the shareholders of these multibillion-dollar corporations," Spanberger (Democrat) said in an Oct. 19 statement. "That's why I am calling for a six-year freeze to Virginians' base residential electricity rates, a tripling of monthly bill credits for ratepayers, and additional commitments to lower energy costs and meet our long-term clean and homegrown energy goals if the State Corporation Commission is to approve this merger."

NextEra, headquartered in Juno Beach, Florida, announced plans in May to acquire Richmond, Virginia-based Dominion in an all-stock deal that, if approved, would form the world's largest regulated electric utility.

John Ketchum, NextEra's chairman, president and CEO, joined Edward Baine, Dominion's executive vice president of utility operations and president of Dominion's regulated utility subsidiary, Virginia Electric and Power Co., known as Dominion Energy Virginia, for a fireside chat Oct. 15 in Richmond to tout the benefits of the combination.

'Deeply skeptical': Spanberger

Spanberger said she remains "deeply skeptical" that the merger, as proposed, "will adequately protect consumers and deliver meaningful public benefits."

Richard McCann, with California consulting firm M.Cubed, filed testimony Oct. 19 with the SCC (Case No. PUR-2026-00112) on behalf of the governor and Virginia Chief Energy Officer Josephus Allmond.

In addition to a six-year rate freeze and the tripling of customer bill credits to $29 per month, McCann's recommendations include increasing the debt share in Dominion's capital structure to 60% from 48% to reduce its rate on return and improving disconnection protections for certain households.

The recommendations also include clean energy commitments, such as prioritizing energy efficiency and distributed energy resources in resource planning and acquisitions; the formation of a Virginia-based, financially separate "zero-carbon energy generation company" to serve large-load data centers and protect other customers; creation of an independent state energy-efficiency utility; establishment of incentives for electrification of heat pumps and electric vehicles; and the elimination of the cap on rooftop solar net metering to encourage more local renewable generation.

The expert testimony was filed the same day as the staff of the Virginia SCC recommended the state regulators reject the deal.

Staff, in its filing, said Dominion and NextEra "have not met their burden to prove that 'adequate service to the public at just and reasonable rates will not be impaired or jeopardized' by the merger."

The proposed merger "would expose [Dominion Energy Virginia] to the additional financial and business risks of NextEra's unregulated, competitive businesses," staff wrote, adding that the merger commitments are "not sufficient to ensure that [Dominion Energy Virginia] will maintain the resources to provide adequate service to its customers post-merger."

"The merger, if approved, would not be easily undone and would have very long-lasting impacts in Virginia," staff wrote.

Viewpoints vary

"As expected in a proceeding of this size and significance, today's testimony reflects a wide range of viewpoints and interests," NextEra said in a statement for both companies. "We are reviewing the filings and will address the issues raised through the Commission's established process. The proposed combination of Dominion Energy and NextEra Energy represents a generational investment in Virginia's customers, communities and economic future, delivering more than $2.1 billion in near-term direct customer and community benefits through bill credits, bill payment assistance, workforce development and charitable investments, creating 1,000 new direct jobs, and maintaining Dominion Energy's current Virginia workforce for five years."

Dominion and NextEra in September proposed increased customer benefits for Virginia, pledging to double residential bill credits, expand low-income financial assistance, accelerate clean energy development and build a new co-headquarters in Richmond as part of an updated merger proposal filed with the SCC.

The companies plan to provide bill credits of $10 per month to Dominion Energy Virginia's residential ratepayers for four years through an expanded benefits package filed Sept. 14 with the SCC.

Dominion and NextEra noted in their original joint petition filed in July that approximately $1.78 billion of the $2.25 billion in bill credits for Dominion's ratepayers in Virginia, North Carolina and South Carolina, funded by NextEra at shareholder expense, would be allocated to Virginia customers over a two-year period after the merger closes.

Evidentiary hearings on the deal are scheduled to begin Nov. 17 before the SCC.