Virginia Gov. Abigail Spanberger has proposed a six-year freeze on base residential electricity rates as a condition for approving the proposed $67 billion merger between Dominion Energy and NextEra Energy. The merger would create the largest regulated electric utility in the world, and Spanberger's filing with the State Corporation Commission argues that ratepayers, not just shareholders, should benefit from the deal.
The governor's proposal also includes tripling monthly bill credits to $29 for four years, up from the $10 for two years originally offered by the utilities. Expert witness testimony filed by her office calls for increasing the debt share of Dominion's capital structure from 48% to 60%, which would lower the allowed rate of return. Additional conditions include a "probability of dispatch" cost allocation method, improved disconnection policies, and enforceable clean energy and workforce commitments.
The merger has drawn pushback from other state officials and communities, and Virginia's attorney general and SCC staff have filed their own conditions. Dominion and NextEra say they are reviewing the filings and will address issues through the commission's process. The utilities have already extended their proposed bill credits to four years amid mounting opposition, but Spanberger's demands go further than their current offer.