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Jennifer L. McClellan (D-VA)
Jennifer L. McClellan
Democrat·Virginia

Virginia House Delegation Urges Rejection of NextEra-Dominion Merger

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In a letter submitted ahead of the SCC’s November 12 public comment deadline, the Members warned that the merger, as currently structured, threatens to increase electricity costs for Virginia families and small businesses for decades to come. They wrote: “ As proposed, we do not believe the merger is in the public interest. We believe the proposed transaction fails to satisfy the statutory requirements and because the joint petition lacks the structural protections necessary to prevent material harm, the Commission should deny the merger petition in its current form.” The Members noted that while NextEra stands to benefit from the expanded investment opportunities created by the rapid expansion of data centers across Northern Virginia, residential customers and small businesses could be left footing the bill. The Members also cautioned that the merger could consolidate market power across the regional electricity grid, stifling competition and ultimately increasing electricity costs for Virginia consumers. They argued that the proposed merger’s temporary incentives fail to offset the merger’s potential long-term costs. They also pointed to the absence of a moratorium on base rate increases, a cap on escalating rate adjustment clauses, and a binding requirement to pass operational savings on to customers. The letter further raises concerns about NextEra’s corporate governance, including its history of political spending and interference, warning these practices could undermine regulatory oversight, create conflicts with Virginia’s Clean Economy Act requirements, and expose ratepayers to additional financial risks. Emphasizing the SCC’s statutory responsibility to safeguard consumers and ensure the long-term reliability and affordability of utility service, the Members stated that approving the merger without adequate, enforceable protections would undermine that responsibility. Full text of the letter follows below, and a signed copy is available here . *** Dear Commissioners: We write to express our opposition to the current proposed merger whereby NextEra Energy, Inc. (“NextEra”) would acquire control of Dominion Energy, Inc. (“Dominion”). Under the Utility Transfers Act, the State Corporation Commission (“Commission”) may approve an acquisition of control if it finds that “ adequate service to the public at just and reasonable rates will not be impaired or jeopardized. “Applicants must prove that the transaction causes no harm to captive customers. We believe the joint petition fails this statutory test. We respectfully urge the Commission to reject the proposed NextEra Dominion merger in its current form, as recommended by Commission staff. Rate Base Inflation and Misaligned Incentives NextEra’s investor disclosures emphasize that Dominion’s territory offers immense multi-decade capital deployment opportunities, driven in large part by the extraordinary concentration of AI data centers in Northern Virginia and future planned load. Given that this projected future energy demand in the Commonwealth will be reliant on massive bulk transmission lines, which are still socialized across residential rate classes, much of that potential infrastructure will be paid for by ratepayers. And as NextEra’s growth strategy is dependent on maximizing capital deployment, its potential acquisition of Dominion risks creating a sustained, multi-decade upward pressure on ratepayers’ bills. Captive residential and small business ratepayers will be locked into paying decades of cap

Source: https://mcclellan.house.gov/2026/11/12/virginia-house-delegation-urges-rejection-of-nextera-dominion-merger
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Record ID: 76481dc8-3224-421e-9a53-0c850fcef98c

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