The City of Alexandria is formally intervening in the proposed merger of Dominion Energy with Florida-based NextEra Energy under consideration by state and federal regulators.
The city government has filed as a participant in the case under review by Virginia’s State Corporation Commission. Along with the SCC, the $67 billion merger proposal is under consideration at the North Carolina Utilities Commission, the Public Service Commission of South Carolina, the Federal Energy Regulatory Commission and the Nuclear Regulatory Commission.
The city’s participation in the case will allow it to provide testimony and be an active participant in proceedings. In a video update, Mayor Alyia Gaskins said city representatives will testify on the needs and interests of Alexandrians.
“Here’s what we know: that if this acquisition goes through, it would create one of the largest utility companies in the country,” Gaskins said. “We also know that many Alexandrians are already struggling and finding it difficult to pay their utility bills because of rising energy costs.”
In the filing, the city asks the SCC to consider “the economic, environmental, community resilience, and other community impacts” of the proposed merger. According to the city’s filing, it joined to advocate for “reasonable rates” for Alexandria residents and businesses and to advocate for Virginia Clean Economy Act requirements to transition the electric grid to clean energy.
“We also know that Alexandria has been a leader through our Climate Action Plan, our Office of Climate Action, our Eco City initiatives in advocating for a more sustainable and reliable power grid, but also in making sure that we are investing in the sustainability of our future and our planet,” Gaskins said.
The proposed merger comes as artificial intelligence drives higher energy demand in the U.S. Dominion Energy is Virginia’s largest electricity utility company, serving about 2.7 million customers in the commonwealth, as well as nearly 1 million in North Carolina and South Carolina. NextEra is North America’s largest electric and energy infrastructure company, serving 6 million customers in Florida.
The merged company would maintain dual corporate headquarters in Richmond and Juno Beach, Fla., as well as an operational headquarters in Cayce, S.C. Dominion Energy cited long-term affordability and reliability for customers as well as sharing the resources of two companies as reasons for the merger.
“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,” Robert Blue, chair, president and CEO of Dominion Energy, said in a release. “Our employees and communities can be confident that we will remain a strong local employer, a constructive economic development partner and a reliable provider of the energy that powers homes, businesses and new investments.”
Dominion Energy says union employees would receive 18 months of job protection after closing, while non-union employees would receive two years of current pay and comparable benefits. The electric company says customers would receive about $2.5 billion in bill credits over two years after the merger closing.
Gov. Abigail Spanberger and Chief Energy Officer Josephus Allmond have also intervened in the case, marking the first time a governor has intervened in an SCC case.
The city is no stranger to intervening in SCC cases. Most recently, Alexandria joined cases to challenge utility rate increases sought by Virginia American Water and Washington Gas.
“The City’s intervention in natural gas and water rate cases this year helped reduce rate increases by about $4.5 million annually just for Alexandria residents,” said Ryan Freed, climate action officer for the city. “These cases have impacts on how we live our lives, from our ability to pay our bills to the confidence the power will stay on during extreme weather events.”
The merger case will last about six months after the joint petition for acquisition was filed with the SCC on July 15. Nov. 2 will be the last day to file as a public witness before testimony will be given on Nov. 5, 9 and 10. Written comments are also being accepted. The evidentiary hearing involving parties in the case is expected on Nov. 17.
There is a 180-day review period from the merger’s July 15 filing date, which would mean an SCC decision could come by Jan. 11, 2027. If the merger goes through, the companies expect closing would happen in the second half of 2027.
