Power companies Dominion Energy and NextEra Energy announced new terms for their planned merger, including extending monthly bill credits for Virginia residents and promising additional jobs. The companies said they would offer residential customers a $10 monthly bill credit for four years instead of the two years previously proposed. This change is meant to address concerns from lawmakers and residents about the impact on electricity bills. The companies announced their planned $67 billion combination in May. If approved, it would create the world’s largest regulated electric utility business by market capitalization.
The extended credits would be funded mostly by shifting bill credits that were originally set aside for large data centers, according to cardinalnews.org. In addition to the credit extension, the companies also pledged to create 600 new jobs and invest more in workforce development, according to a report from sun-sentinel.com. Dominion and NextEra said they would also increase a low-income financial assistance program by $100 million. The companies said the additional money for Dominion’s EnergyShare program would be provided through 2038. They also proposed a $100 million workforce development fund and a Virginia supplier program worth up to $1 billion a year for five years.
The companies emphasized that Virginia customers would not be charged for costs related to the merger. Dominion Energy Virginia would keep its name and local leadership. The combined company would maintain corporate headquarters in both Richmond, Virginia, and Juno Beach, Florida. NextEra also plans to build a new shareholder-funded co-headquarters tower in downtown Richmond.
The State Corporation Commission of Virginia will review the merger proposal, with a decision expected in January 2027. Both Dominion and NextEra have received support from their shareholders for the merger plan. Shareholders of both companies approved the deal in September.
The companies said they expect the deal to close in the second half of 2027. Virginia Gov. Abigail Spanberger and legislative leaders have expressed skepticism about the merger. Spanberger has said she is deeply skeptical about whether the proposed deal would benefit Virginia. Lawmakers including House Speaker Don Scott and Senate Majority Leader Scott Surovell have said the companies’ new proposal is a positive step. The governor’s office said it was reviewing the updated package.
The State Corporation Commission will hold an evidentiary hearing in mid-November to consider the merger. The hearing is scheduled to begin Nov. 17. The merger also requires approval from regulators in North Carolina and South Carolina, as well as federal agencies like the Federal Energy Regulatory Commission. Approval from the Nuclear Regulatory Commission is also required.
NextEra Energy is based in Juno Beach, Florida, and owns Florida Power & Light, which provides electricity to about 6 million customer accounts or roughly 12 million people in Florida. The combined company would serve approximately 10 million customer accounts across Florida, Virginia, North Carolina and South Carolina. Dominion currently provides regulated electricity to about 3.6 million homes and businesses in Virginia, North Carolina and South Carolina.
NextEra also owns approximately one-third of the Mountain Valley Pipeline, which runs through parts of Southwest and Southside Virginia. NextEra reported a 33.4% noncontrolling interest in the 303-mile natural gas pipeline at the end of 2025.
The companies argue that their merger will lead to more efficient operations and lower costs for customers in the long term. They said that as the residential credits expire, the benefits of scale from the combined company would help reduce overall energy costs. The companies say a larger operation would give them more buying power and could lower financing and construction costs.
Critics have voiced concern about the influence the merged companies might wield in state politics. The governor’s office is reviewing the updated proposal from Dominion and NextEra Energy.
Despite the companies’ efforts to sweeten the deal, some lawmakers have not committed to calling a special session to extend the review period. Scott said he did not expect lawmakers to call a special session. The companies also said they would maintain current employment levels in Virginia for five years while adding new jobs. NextEra said it would add 600 direct jobs in Virginia. Suppliers are expected to add another 400 jobs.
Both companies have stated that data centers should pay their own way, which is reflected in the revised credit plan. Virginia hosts a large concentration of data centers. A spokesperson for the Data Center Coalition did not respond to an Associated Press request for comment about removing the credits that had been planned for large data-center customers.
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