Lawmakers gathered in Richmond this week to grill Dominion leadership on the $67 billion all-stock deal which could see management of half of Virginia’s energy move outside the commonwealth.
If Dominion Energy merges with Florida-based NextEra, it would be the largest public utility merger Virginia has ever seen.
Dominion Energy Virginia President Ed Baine defended the proposed merger saying, among benefits, it would offer a $10 a month rebate to Virginia ratepayers for two years. He also said similar mergers may end with negative impacts, Baine called them quote synergies, but: “That’s not the case here," Baine said. "If you look at NextEra stand alone, if you look at Dominion Energy stand alone, there's growth in both businesses."
"This is the combination of two growing companies,” he added.
But some legislators on Virginia’s Energy Commission were not so easily swayed. Among them was Democratic Delegate Rip Sullivan who authored the Virginia Clean Economy Act, a 2020 law that aims to reduce the Commonwealth’s reliance on fossil fuels.
“Is it still Dominion’s intent to comply with the requirements of the Clean Economy Act?" Sullivan asked. "And NextEra knows that and agrees to it? And you can speak for NextEra on that?"
"Yes, and I’ll still be here," Baine replied. "I’ll still be your throat to choke.”
Baine also stressed NextEra’s commitment to renewable energy and its recent success with battery storage, a priority for expanding the use of wind and solar.
Democratic Senate Majority Leader Scott Surovekl expressed concerns about the mergers intent to keep a fully staffed headquarters in Richmond like it currently does.
“Will there be some synergies of some group down the road?" Baine hypothesized. "Probably."
"If you think about who’s here today, part of the Virginia utility serving customers within Virginia, I would expect the vast majority of people to be here way beyond those protections,” he said.
The committee also heard from lawyer Scott Hempling. The long-time regulated merger attorney didn’t necessarily push for either side of the nearly 70-billion-dollar merger, but he did offer this bit of advice.
“Understand what is being transferred is control,” Hempling said. “All decisions, ultimately, will be controlled by the owners. And the owner being NextEra. That’s the central change happening here. So, when somebody tells you that ‘they will always be here,’ that’s not an enforceable statement."
"That statement depends on decisions made from Florida,” he said.
The two companies plan to file merger documents with Virginia’s state corporation commission in the third quarter of this year; that opens the door to approval from regulators in the commonwealth within 180 days.
And while Surovell said it was unlikely they could do much legislatively to influence the merger before that happens, SCC reps said they would get the final say on the deal.
