Alexandria and Arlington officials are pressing Dominion Energy and NextEra Energy for more customer protections and clean energy progress if their proposed merger goes through.
Officials held a briefing Monday (Oct. 26) to provide an update on the electric companies’ proposed merger. The proposed $66.8 billion merger — through Florida-based NextEra’s acquisition of Dominion Energy — is under consideration at Virginia’s State Corporation Commission. NextEra and Dominion Energy filed the proposal on July 15, which means the SCC will make a final ruling no later than Jan. 11, 2027.
The merger must also receive approval from utility regulators in other impacted states as well as federal regulatory bodies.
Jennifer Fioretti, Arlington’s assistant county manager for climate policy, said the SCC is required under Virginia’s Utility Transfers Act “to make sure the deal, if granted, won’t impair or jeopardize adequate service to the public at just and reasonable rates.”
Fioretti said the merger has big implications for the localities, as the combined company would serve 10 million customers in four states, including Virginia’s 2.7 million.
“It would own 110 gigawatts of generation and become the world’s largest regulated utility by market capitalization and the largest renewable energy and storage operator,” Fioretti said. “That scale raises important questions about how Virginia customers would be served if the merger goes through.”
Alexandria and Arlington joined localities such as Fairfax and Loudoun Counties, and the cities of Richmond and Charlottesville as intervening parties in the case. As parties in the SCC case, the localities can submit evidence, provide expert witnesses and share community concerns about the merger.
“We have three core concerns,” Fioretti said. “First, merger costs or a new revenue model could push rates higher, especially for our most vulnerable neighborhoods. Second, a much larger parent company could pay less attention to local needs and therefore impact the delivery of Dominion services. And third, the merger could pull against the climate commitments and communities that have worked so hard to set it on a good path.”
The companies promised several incentives if the deal goes through. According to Fioretti, an average homeowner with 1,000 kilowatt hours of use could see a $10 monthly bill credit over four years under Dominion and NextEra’s proposal.
The companies said customers wouldn’t be liable for merger costs and fees and proposed $100 million more for the low-income energy share assistance program and 1,000 new direct jobs in Virginia. The applicants also pledged to speed up clean energy projects, protect residential and small business customers from subsidizing data center infrastructure, and keep Dominion Energy’s name and joint Richmond headquarters.
Alexandria and Arlington want the incentives to go further, increasing the energy assistance program commitment to $500 million, investing $185 million for a Northern Virginia energy efficiency program and capping Dominion Energy’s current 9.8% return on equity. The localities are also seeking to have bill credits only go toward residential and municipal customers, extend electricity shut-off protections in extreme cold and hot weather to one week, prioritize electricity restoration at critical facilities, and provide longer payback periods for payment plans.