NextEra Energy and Dominion Energy filed petitions with state and federal regulators on Wednesday to combine their companies, a deal that would form the nation’s largest electric utility and power company.
The two energy giants formally asked regulators in Virginia, North Carolina and South Carolina — where Dominion operates — and at the Federal Energy Regulatory Commission to approve the deal, after announcing their intentions in May.
NextEra, based in Juno Beach, Fla., has sought to acquire electric utilities across the country for several years. With Dominion, which is based in Richmond, Va., it would have about 10 million retail customers across four states.
Florida, where NextEra operates the state’s largest utility, Florida Power & Light, does not require regulators to approve the deal.
“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,” John Ketchum, the chairman, president and chief executive of NextEra, said in a statement on Wednesday.
Utility companies across the country have been consolidating operations for several years but with greater frequency recently, as demand for electricity grows rapidly because of data centers that support the development of artificial intelligence.
Critics of the deal have questioned some of NextEra’s political dealings and whether the new company would focus on its Florida customers more than on those in the other three states.
More than any other utility in the world, Dominion has dealt with the massive data centers because Virginia is home to the world’s largest cluster of the facilities. Virginia is also among the Mid-Atlantic States where utility customers have complained about rising electricity bills, which have climbed in part because of the need for more power resources to support the data centers. Utilities in Virginia are regulated by the State Corporation Commission.
The state’s attorney general, Jay Jones, on Wednesday promised a thorough review of the merger plan: “This office will put Virginians first and focus all our energy on vigorously and aggressively advocating for Virginians, fighting for transparency and accountability, and protecting ratepayers from being left to foot the bill long after the commission makes its decision.”
The companies have proposed giving $2.25 billion in bill credits to Dominion customers in Virginia, North Carolina and South Carolina over the first two years after the deal closes, funded by shareholders without money from customers.
The combined company would operate an enormous portfolio of energy resources, including solar power, battery storage, nuclear and natural gas.
Robert Blue, Dominion’s chairman, president and chief executive, said in the statement on Wednesday that the deal “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.”
