Dominion-NextEra sweetens merger deal for Richmond
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Rendering of the new office tower, which would sit in downtown Richmond. Image: Courtesy of Dominion Energy
Richmond would get a new office tower and hundreds of new jobs, while residents would get twice as long to collect power bill credits, under a sweetened merger package Dominion and NextEra Energy merger announced this week.
Why it matters: The proposed deal for Virginians comes as the energy giants are seeking regulatory approval for their $67 billion merger — and as state and local leaders raise concerns about whether Virginians would actually benefit.
State of play: The companies unveiled the expanded benefits package on Monday. It includes:
- Four years of $10 monthly bill credits for Dominion's Virginia customers — double the two years they initially proposed in May.
- 1,000 new jobs "in Richmond and across the Commonwealth," including 600 from NextEra and 400 through its suppliers.
- Five years of job protection for Dominion workers in the state — including roughly 5,000 in Richmond — up from 18 months.
- A new shareholder-funded NextEra office tower next to Dominion's downtown Richmond headquarters.
Plus: An extra $100 million through 2038 for Dominion's EnergyShare assistance program, which helps customers in need pay their bills.
- A $100 million workforce development fund and a commitment to spend up to $1 billion a year with Virginia suppliers for five years.
The intrigue: In order to fund some of the enhanced perks, the companies said they'll work with the State Corporation Commission (SCC) to redirect credits that would've otherwise gone to data centers.
Between the lines: The sweetened offer underscores how much is riding on approval of the offer, which the companies say would create the world's largest electricity company.
- Since the deal was announced in May, Gov. Spanberger, state lawmakers and Richmond officials — Dominion is headquartered here — have questioned whether the deal would benefit locals.
- The companies say "feedback from policymakers" helped shape the expanded package.
- In a statement, Mayor Avula called it "encouraging" and said the city would continue monitoring the process.
- The governor's office said it's reviewing the proposal, per AP.
What they're saying: "The package is organized around the priorities Virginians have made clear: affordability, jobs and building more clean energy …," the companies wrote in the joint announcement.
What's next: Virginia regulators still have to approve the merger.
- The SCC will begin hearing public testimony Nov. 5.
- Public comments are due Nov. 9.