Dominion files for SCC approval of NextEra merger

Dominion Energy on Wednesday filed its application with the State Corporation Commission for approval of its proposed $66.8 billion merger with Florida utility NextEra Energy.

Dominion and NextEra also on Wednesday filed applications for approval of the merger with the North Carolina and South Carolina state regulatory commissions and the Federal Energy Regulatory Commission and Nuclear Regulatory Commission.

Analysts believe the proposal would be the largest merger of utilities in the U.S. to date. According to the companies, the merged entity would be the world’s largest regulated electric utility business and largest renewable and energy storage operator in the world. It would serve about 10 million customer accounts in Florida, Virginia and the Carolinas.

The merger will also need approvals from NextEra and Dominion shareholders and, under the Hart-Scott-Rodino Antitrust Improvements Act, will face a waiting period (generally 30 days) following filing with the Justice Department, although the government can end the waiting period early.

Should the merger receive all approvals, the companies expect the transaction to close in the second half of 2027.

Dominion spokesperson Aaron Ruby told Virginia Business, “We are experiencing a growing power demand at historic levels; we haven’t seen this type of growth since the years after World War II. It does require investment in new infrastructure of every kind at an unprecedented pace and scale. Now, we can and we are reliably and affordably serving all of that growing demand now, and we can do it alone, but we can do it so much better with a partner like NextEra.”

With a definitive agreement announced in May, Fortune 200 company NextEra is set to acquire Richmond-based Dominion in an all-stock transaction, valued at $66.8 billion based on NextEra share prices at the last market close before the announcement.

SCC review

In Virginia, the SCC has six months to review the merger application. The body will publish a procedural schedule outlining the process, which will include a public hearing that any member of the public can participate in.

The SCC has three commissioners on the bench. Chair Kelsey A. Bagot could potentially recuse herself, as she was a senior attorney at NextEra before the Virginia General Assembly elected her as a commissioner.

SCC decisions can be appealed to the Virginia Supreme Court if the petition to appeal is filed within 120 days.

When asked about potential opposition during the approvals process, Dominion officials told Virginia Business they’re looking forward to the review.

“We’re the largest electric utility in the state,” said Ruby, “and the process of the SCC is designed to allow all the stakeholders to have a seat at the table, to ask the tough questions, to address the concerns that they’ve raised, and we welcome a thorough, exhaustive review of this process, and we look forward to addressing the questions.”

Dominion and NextEra have pitched the merged company’s size as a benefit to customers, referencing increased buying power from economies of scale and potential savings that could be passed to ratepayers.

NextEra Chairman, President and CEO John Ketchum said in a statement, “This combination is about putting scale and a stronger, more comprehensive platform behind Dominion Energy’s local teams so they can meet growing power demand while keeping bills affordable and service reliable. … Customers would experience … long-term value through a stronger company that can buy, build, finance and operate energy infrastructure projects more efficiently, which will result in long-term customer benefits.”

Bill Murray, Dominion’s senior vice president of corporate affairs and communications, said of the SCC process, “As the applicant, it’s incumbent on us to show that this makes sense, and we feel like we’ve got a great case to make.”

As part of that case, Murray cited the companies’ proposed $2.25 billion in bill credits for Dominion customers in Virginia and the Carolinas. The bill credits would be spread over two years after the merger’s close, translating to about $10 a month per customer. State regulatory commissions would make the final decisions on bill credits, though.

According to a news release from Dominion and NextEra, “customers also would be held harmless from any and all transaction, transition, acquisition-premium, financing and restructuring costs associated with the combination.”

Another point Murray noted that was reflected in Ketchum’s statement: “There are the ongoing benefits of being able to finance more efficiently, build more efficiently and operate more efficiently.”

On the other hand, state officials, public advocacy groups and Virginia residents have expressed concerns over the merger, including rate-setting ability and NextEra’s track record. Utilities are already regulated monopolies, and in Virginia, the SCC decides rate cases.

Although Gov. Abigail Spanberger and Attorney General Jay Jones haven’t publicly provided an opinion on the proposed merger, Lt. Gov. Ghazala Hashmi sent a letter to SCC commissioners urging them to order Dominion and NextEra to answer 64 questions related to the merger before filing the application and triggering the six-month window.

Clean Virginia, a clean energy advocacy group founded by Charlottesville investor Michael D. Bills to counter Dominion’s influence on Virginia legislators, cited reporting from Florida outlets about NextEra’s past actions after the May announcement of the merger.

One concern Clean Virginia listed in a news release was NextEra subsidiary Florida Power & Light’s approximately $6.9 billion rate increase in Florida, which opponents claimed was the largest rate hike in U.S. history, according to the Florida Phoenix’s reporting. In November 2025, the Florida Public Service Commission approved a four-year settlement for the rate hike. FPL provides electricity to about 12 million people in Florida and is billed as America’s largest electric utility.

Former FPL CEO Eric Silagy stepped down in 2023 following allegations of campaign finance violations, surveying a journalist and potential media manipulation, according to NPR reporting. NextEra issued an internal investigation and an investigation by a law firm.

“I’ll observe some of what I think you’re alluding to is under a previous leadership team,” Murray said when asked about allegations against NextEra.

He also said, “The firewall is literally the legal scope of the utility. … The utilities are going to be run by their existing management.”

‘All the things you like’

Indeed, when discussing the proposed merger, Dominion officials are stressing the power of continuity.

In a statement, Dominion Energy Chair, President and CEO Robert “Bob” Blue said, “It preserves the Dominion Energy utilities our customers know — the same local leaders, employees, regulatory oversight and commitment to an all-of-the-above energy mix — while adding capabilities that can help us build needed infrastructure more efficiently and keep bills affordable.”

According to a news release, “Dominion Energy’s operating companies will remain separately regulated and locally led.”

“Where the company’s leadership is at, this is an opportunity to do what we’re doing already even better,” Murray said. “It’s all the things you like: same local management, same name, same look and feel, all the things Dominion is known for — rates below the national average, reliable service, diverse mix of power generation, strong investments in infrastructure” and more.

After closing, Ketchum will be chairman and CEO of the merged company. Blue, who will remain in Richmond, will be president and CEO of regulated utilities — overseeing operations for all of NextEra’s utilities, including Dominion Energy’s three state businesses and Florida Power & Light. He will also serve on NextEra’s board of directors.

Ed Baine, currently president of Dominion Energy Virginia and executive vice president of utility operations for Dominion Energy, will be president and CEO of Dominion Energy Virginia. Dominion Energy South Carolina President Keller Kissam will be president and CEO of the South Carolina company.

Dominion Energy provides electricity service to 3.6 million homes and businesses in Virginia and the Carolinas, as well as natural gas service to 500,000 customers in South Carolina. The company reported $16.5 billion in 2025 revenue.

In addition to FPL, NextEra Energy says it owns the United States’ largest energy infrastructure development company, NextEra Energy Resources. NextEra Energy reported $27.4 billion in 2025 operating revenue.