NextEra Energy’s proposed acquisition of Dominion Energy, which would create the world’s largest retail electric utility, is facing growing opposition in Virginia amid concerns about rising electricity costs, customer service and the company’s political and economic influence, The New York Times reports.
Virginia Gov. Abigail Spanberger, the state attorney general, consumer advocates, the regional grid’s internal watchdog and the staff of the State Corporation Commission have questioned whether the merger would provide sufficient benefits to customers.
Electricity prices have increased nationwide as utilities invest in power plants and transmission infrastructure to address growing energy demand, particularly from artificial intelligence data centers, while extreme weather has added pressure to grid reliability. In Virginia, the average monthly residential electricity bill reached $176 in August, up from $159 a year earlier.
To win approval, NextEra has offered customers $10 monthly bill credits for four years and pledged $100 million in assistance for lower-income residents, workforce development and other benefits. Spanberger has called those concessions insufficient, instead seeking a six-year rate freeze and $29 monthly credits for Dominion customers over four years.
NextEra CEO John Ketchum has rejected the proposed rate freeze, arguing that regulators should address such measures through routine rate-setting proceedings rather than the merger review.
Supporters, including business leaders and former Dominion executives, argue the acquisition would generate investment in grid reliability, clean energy and workforce development. Opponents have also raised concerns about potential conflicts of interest involving State Corporation Commission Chair Kelsey Bagot, a former senior NextEra attorney who has declined to recuse herself.
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