Virginia's Lieutenant Governor opposes the NextEra Energy–Dominion Energy merger, citing utility consolidation concerns.

NextEra's planned acquisition of Dominion Energy is "not in the best interest of Virginians," according to a report released Tuesday by Virginia's lieutenant governor, Ghazala Hashmi, D, summarizing findings from a five-city public listening tour. The report comes ahead of the State Corporation Commission's first local hearing on the pending merger, scheduled for Wednesday, and represents the most formal expression of opposition from Virginia's executive branch to date. While Governor Abigail Spanberger, D, has not taken a definitive position on the deal, she announced in August that she was "skeptical" of it and filed with the SCC as a respondent in the commission's ongoing review — a role that would allow her to appeal the SCC's final order to the Supreme Court of Virginia if she chose to.

Neil Nissan, a spokesperson for NextEra, told Utility Dive that the company was "disappointed by the lieutenant governor's decision and respectfully disagree with it." He emphasized that the merger would "help Virginia build more power here at home, reducing its reliance on expensive imported electricity to meet the Commonwealth's growing power demand."

NextEra announced its plans to acquire Dominion Energy in an all-stock transaction in May. The deal would create the largest regulated utility in the world, with 10 million customers in four states and a 130-GW large load pipeline. The companies initially expected the transaction to close within 12 to 18 months, subject to regulatory approval.

Hashmi's listening tour visited Loudoun County, Norfolk, Richmond, Charlottesville, and Roanoke. In Loudoun, home to a high concentration of data center development, the report noted that "most speakers opposed the acquisition or demanded heightened scrutiny; one commenter expressly supported it based on demand growth, innovation, investment capacity, and economic competitiveness."

Hashmi raised particular concerns about NextEra's corporate structure, citing the company's "thousands of individual project entities, many in businesses far riskier than a regulated utility." She wrote that "thus far NextEra has refused to provide assurances as to limits on future acquisitions or whether the Virginia SCC will have review authority," adding that "the corporation offers no assurances that it will not place its other ventures ahead of Virginia's needs."

In response, Nissan stated that "Dominion Energy Virginia would retain local leadership and remain fully regulated by the Virginia State Corporation Commission. We have also pledged to work with Virginia leaders to protect families and small businesses from paying for infrastructure needed to serve data centers."

Dominion Energy spokesperson Rayhan Daudani told Utility Dive that the Virginia benefits package announced on September 14 "expands residential bill relief, strengthens long-term affordability, protects customers from merger costs, expands support for customers experiencing hardship and helps ensure data centers pay their fair share." John Ketchum, chairman, president and CEO of NextEra, added in a release that the company was "reaffirming support for the State Corporation Commission, Governor and General Assembly's efforts to protect residential and small business customers from costs associated with serving data centers."

However, Hashmi expressed concern about NextEra's strategy to serve data center growth in Dominion's footprint, warning not only of direct costs but also of the potential for stranded assets if projected demand does not materialize, which could leave residential customers "paying for even more of the cost of what NextEra builds."

Governor Spanberger's announcement of her intervention stated that "by formally intervening in the SCC case, my Administration will be able to directly advocate on behalf of Virginians impacted by what would be the largest utility merger in U.S. history."

Following NextEra and Dominion's September 14 submission of an enhanced benefits package to the SCC, Virginia's Office of the Attorney General filed its own response on September 18, arguing that the motion was substantial enough to trigger a new "180-day statutory timeline" for the case. The attorney general's office proposed restarting the 180-day merger review timeline from September 14, instead of the existing start date of July 15, which would require amended notice, new deadlines for intervention and testimony, and a postponed evidentiary hearing. The SCC has not yet ruled on that motion.

The SCC is scheduled to hold its first local hearing on Wednesday in Newport News, followed by a second local hearing on Friday in Fairfax County. The case's evidentiary hearing is set to begin on November 17.