Lawmakers Urge FERC to Scrutinize NextEra-Dominion Merger

A proposed $67 billion merger between NextEra Energy and Dominion Energy faces growing opposition from lawmakers concerned about market power and consumer costs. The deal, announced in May and expected to close in mid- to late 2027, would create the world's largest regulated utility, serving around 10 million customers across Florida, North Carolina, South Carolina, and Virginia. The combined entity would function as both a major power generator and a major utility, owning all the nuclear power plants in New England.

Lawmaker Opposition and FERC Letter

A bipartisan group of sixteen lawmakers sent a letter to the Federal Energy Regulatory Commission (FERC) on Wednesday, Sept. 30, urging the agency to closely scrutinize the acquisition. The group, led by Rep. Suhas Subramanyam of Virginia and including Sen. Elizabeth Warren of Massachusetts and Rep. Eugene Vindman of Virginia, warned the merger could allow the enlarged company to unfairly favor its own affiliates, pass costs to ratepayers, and block investments in cheaper energy sources. They expressed concern the company could use its control over transmission lines to disadvantage rivals and avoid federal regulatory scrutiny.

The legislators urged FERC to deny the merger unless NextEra and Dominion prove it will have no harmful effect on competition, rates, or regulation. In the letter, they wrote, We urge you to closely scrutinize this merger and block it if the Commission determines it would increase market concentration or have an adverse effect on costs for consumers. They also stated that independent monitors have found utility companies involved in mergers routinely tout rate reductions but often fail to deliver on savings.

Concerns Over Rate Impacts and Past Precedents

Lawmakers are skeptical of NextEra's promise to offer $2.25 billion in bill credits to Dominion customers for two years following the merger's closing. They point to NextEra's failed 2014 merger attempt with Hawaii's utilities, where regulators rejected the deal after finding the rate credit assurances 'inadequate' and determining the merger would prevent robust competition. The letter notes, "FERC should similarly be skeptical of promises for rate credits in this case."

This scrutiny comes as residential electricity prices in the U.S. have risen 15% since January 2025. Families are projected to spend an average of $110 more on electricity bills in 2026 compared to the previous year. The National Energy Assistance Directors Association forecasts that Americans will pay an average of $1,249 on electricity to heat their homes this winter, an increase of more than 30% from last year.

FERC has a history of blocking deals over competition concerns. In 2019, it blocked GridLiance's purchase of transmission lines from People's Electric Cooperative due to concerns about raising household energy prices. In 2013, it blocked Saddle Mountain Power's purchase of a power plant from MACH Gen due to significant market concentration concerns.

NextEra and Dominion Response

NextEra and Dominion did not immediately respond to a request for comment on the lawmakers’ letter. FERC will review the merger under its public interest standards, with lawmakers urging denial unless the companies conclusively prove no harm to competition, rates, or regulation.