Spanberger demands 6-year rate freeze in Dominion merger
Add Axios as your preferred source to
see more of our stories on Google.
Photo illustration: Axios Visuals. Photo: Al Drago/Bloomberg
Gov. Abigail Spanberger said Monday that state regulators should reject the proposed NextEra-Dominion merger unless the utility giants freeze residential base electricity rates for six years and nearly triple the promised monthly bill credits.
Why it matters: The governor is threatening to oppose the $67 billion deal unless the companies agree to stronger protections for Virginians and the state's energy future.
State of play: In expert testimony filed Monday on her behalf ahead of next month's regulatory hearings, Spanberger called for:
- 🧊 A six-year freeze on residential base electricity rates, though other charges could still increase
- 💸 $29 in monthly bill credits for four years, up from the $10 currently promised — an additional $912 per household over four years
- ⚡️ Stronger protections against data center costs being passed on to households, including a separate company to build clean energy infrastructure for large data centers
Zoom in: The governor also wants legally enforceable guarantees that NextEra will deliver the promised new downtown Richmond headquarters tower and protect Virginia jobs.
- That includes the companies' existing promises to maintain a minimum of 10,431 Virginia employees for five years and bring approximately 600 additional positions to the state.
The intrigue: Spanberger's announcement comes days after a Virginia Chamber of Commerce-commissioned report found NextEra's proposed downtown Richmond office tower could generate nearly $1 billion in economic activity statewide.
- Notably: Her expert's testimony points out that Dominion scrapped plans for a second Richmond office tower in 2021.
What they're saying: "Any proposed merger involving Virginia's primary state-regulated utility must benefit families, small businesses, and Virginia's workforce — not just the shareholders of these multi-billion-dollar corporations," Spanberger said in a statement.
The other side: In a joint statement, Dominion and NextEra defended the proposed merger's more than $2.1 billion in promised customer and community benefits and 1,000 new jobs statewide.
- The companies said they're reviewing Spanberger's demands and will address them through the regulatory process.
What's next: The State Corporation Commission will begin hearing public testimony on the deal on Nov. 5, with a decision expected in January.
This story has been updated with comment from Dominion and NextEra.