Governor Abigail Spanberger and the Virginia State Corporation Commission’s staff agree the proposed merger between Dominion Energy and Florida’s NextEra should not be approved in its current form. That’s from long-awaited testimony filed with the regulatory body Monday.
The standard for state regulators to approve the proposed $67 billion merger is that “just and reasonable rates will not be impaired for jeopardized.”
And, on behalf of the governor, Richard McCann with the California-based energy consultant group M. Cubed said the deal doesn’t yet meet that standard. Among complaints? What he calls “vague assertions” on future benefits from Dominion and NextEra.
There are also issues with the $10 a month promised bill credit, McCan said, pointing to a recent petition before the SCC from Dominion that seeks $10 a month to recoup recent spikes in fuel prices.
And the SCC’s own investigatory staff also said the deal should not go forward “because the proposed merger would expose [Dominion Energy Virginia] to the additional financial and business risks of NextEra’s unregulated, competitive businesses.”
This complaint parrots similar concerns by regulators in Hawaii who nixed a proposed NextEra merger there in 2016.
Both staff and the governor had suggestions that could cure deficiencies with the merger. SCC staff suggested limitations on dividends to be paid by Dominion and an independent board of directors for the company post-merger.
Spanberger, meanwhile, asked for a six-year rate freeze and nearly $30 a month in ratepayer bill credits for four years.
Monday was the deadline for such filings, though processing delays mean some testimony, including from those who support the merger, won’t be public until Tuesday at the earliest.
And in public comments submitted by Dominion Friday, Jose Perez with DC-based group Hispanics in Energy defended the deal as a boon for jobs.
"America’s energy plans depend on preparing enough skilled workers to carry them out. Virginia has an opportunity to put that principle into practice," Perez wrote, pointing to a post-merger promise by NextEra to invest in a workforce development fund and a promise to spend $1 billion a year following the acquisition.
In a separate statement, a Dominion spokesperson touted the customer benefits included in the merger proposal. "As expected in a proceeding of this size and significance, today's testimony reflects a wide range of viewpoints and interests. We are reviewing the filings and will address the issues raised through the Commission's established process."
All testimony now goes to the three-judge panel that will decide the deal’s fate. And those judges don’t have to follow staff, or the governor’s, findings.
