Dominion Energy's $67 Billion Merger: 7 Things Virginians Should Know

RICHMOND, VA — A proposed $67 billion merger between Dominion Energy and NextEra Energy could reshape Virginia's largest electric utility, promising nearly $1.8 billion in bill credits for Virginia customers while putting Richmond-based Dominion under the umbrella of the Florida energy giant.

The companies announced the all-stock deal in May and filed for regulatory approval in July. If approved, the combined company would serve about 10 million customer accounts across four states.

The companies say the merger would give Dominion more financial and purchasing power as Virginia faces rapidly growing electricity demand. They have also pledged $2.25 billion in shareholder-funded bill credits across Virginia, North Carolina and South Carolina during the first two years after the deal closes.

The merger isn't final. It requires shareholder approval and reviews by Virginia and other state and federal regulators. The companies expect the deal to close in the second half of 2027 if approved.

Here's what Virginians should know about the proposed Dominion-NextEra merger:

The merger would create the world’s largest regulated electric utility business.

If the Virginia State Corporation Commission and other state and federal regulators approve the deal, the new entity would be the largest regulated utility in the world, serving utility accounts in Virginia, North Carolina, South Carolina and Florida. Dominion Energy currently serves 2.7 million customers in Virginia.

For Virginia customers, Dominion Energy would keep its name and continue operating under state regulatory oversight. Customers would not need to change how they pay bills or manage their accounts. Richmond would remain one of the combined company's two corporate headquarters, along with Juno Beach, Florida.

The merger would give NextEra more control of the energy supply chain, but at what cost?

Dominion Energy is a regulated utility. NextEra is an energy infrastructure company, not a regulated utility. Their merger would mean the new entity would control even more levels of the energy supply chain, potentially creating opportunities for efficiency but also placing a regulated utility in the same corporate family as a competitive business.

According to Virginia Public Radio, Ben Weintrau, a Ph.D. candidate at Duke University’s Nicholas School of the Environment, said, “The concern is Virginia ratepayers could end up bearing costs or risks that properly belong to the competitive side of the business.”

The outlet also quotes Joshua Macey, a professor at Yale Law School who specializes in electricity market design and the regulation of public utilities. According to Macey, there is reason to worry that a competitive business could plunder the assets of its regulated utility to give itself a competitive advantage, potentially at the expense of energy customers.

The merger doesn't automatically determine Virginia's electric rates or energy policy.

Even if NextEra acquires Dominion, Dominion Energy Virginia would remain regulated by the Virginia SCC. The merger wouldn't allow NextEra to set electric rates in Virginia itself.

Likewise, the transaction doesn't by itself erase Virginia's existing requirements governing renewable energy, generation projects or utility regulation. However, over the long term, it is the combined company that would make consequential decisions about power plants, transmission, nuclear energy, natural gas, renewables and storage as Virginia tries to meet sharply rising demand. NextEra and Dominion say the larger company's financial strength and development expertise would make those investments easier and less expensive.

The merger could mean bill credits in the short term, but higher rates down the line.

NextEra and Dominion have proposed giving $2.25 billion in bill credits to their customers across Virginia, North Carolina and South Carolina for two years after the closing, with about $1.78 billion expected to go to Virginia customers. That amounts to about $10 a month in savings, according to Virginia Public Media. The companies also say customers won’t have to pay merger-related transaction costs.

After the credits expire, the companies argue that their greater scale, purchasing power, construction efficiencies and lower borrowing costs will help keep bills low over the long term. Those are projected benefits, however, rather than guaranteed future rates.

The Virginian-Pilot reported that the companies have told Virginia lawmakers that the merger could lead to higher rates for customers after the credits are used.

“There’s fairly good empirical evidence that rate credits typically have been offset through price increases,” said Macey.

NextEra has been blocked from making similar mergers in the past.

NextEra’s effort to acquire Hawaiian Electric in 2016 was blocked when the state’s Public Utilities Commission rejected the $4.3 billion takeover as not in the public interest, as reported by Utility Dive. Residents were skeptical that the promised lower rates would materialize, and Hawaii requires that mergers involving public benefit corporations demonstrate they will be for the public benefit. Meanwhile, Virginia requires only that they not impair or jeopardize the service.

The next year, NextEra was also blocked by state regulators from taking over Texas’ Oncor, in part because the company refused to “ringfence” the utility’s assets and keep them separate from NextEra’s, and wouldn’t agree to an independent board for the utility.

Gov. Spanberger has formally intervened in the proposed merger.

Virginia Gov. Abigail Spanberger formally intervened in the State Corporation Commission’s review of the proposed merger on Aug. 17, saying she is skeptical it would benefit Virginians without jeopardizing energy affordability, utility jobs or the state’s clean-energy goals.

By joining the case as a respondent, Spanberger and her administration can request detailed information, raise concerns and participate directly in the proceedings. She said the administration will press for sustained savings on customers’ bills, protections for Virginia’s utility workforce and continued development of affordable, reliable, locally produced clean power.

Virginians have a chance to weigh in on the merger.

The merger isn’t expected to close until the second half of 2027, assuming the companies receive the required state and federal approvals. Reviews include the Virginia SCC and federal regulators, such as the Federal Energy Regulatory Commission and the Nuclear Regulatory Commission. The Virginia proceeding is SCC Case PUR-2026-00112. Public-witness testimony is scheduled for November, and the SCC says customers can submit comments or register to testify. The current deadline for written public comments is Nov. 9.