NextEra, Dominion defend $2 billion merger package in Virginia

The dispute centers on how Virginia evaluates utility mergers. Under the Virginia Utility Transfers Act, merging utilities are not explicitly required to show a net positive benefit to customers, unlike California or New York. Dominion CEO Bob Blue argued in Nov. 2 rebuttal testimony that this is not a weak burden but a reasonable one, so long as essential utility functions are not compromised. NextEra CEO John Ketchum said the filing accepts most additional protections proposed by Commission Staff and the Consumer Counsel while offering alternatives to a limited number of remaining provisions.

The companies are betting that a nearly $2 billion package of temporary, spread-out bill credits will satisfy the public, even as the AI boom drives electrification and rate prices. Critics argue the biennial review structure reflects outdated regulatory guidance established before the AI era, leaving average small business and residential customers to foot expenses from data centers and other large-scale customers. Similar tensions are playing out beyond Virginia, with the Pennsylvania Office of Consumer Advocate filing a complaint against PPL Electric Utilities over cost allocations and reliability risks from large-scale data centers.