Dominion and NextEra sweeten $67 billion merger proposal with expanded customer benefits

MCLEAN, Va. - Dominion Energy and NextEra Energy announced an expanded package of customer benefits as the companies seek state approval for a proposed $67 billion merger. The deal would create the largest electric company on Earth. 

What we know:

To address stakeholder and customer concerns, the companies are offering to double a proposed $10 per month residential bill credit from two years to four years. 

The companies also pledged an additional $100 million for low-income energy assistance, promised to create 1,000 new Virginia jobs and committed to building a new office tower in Richmond. The companies further promised to spend $1 billion each year with Virginia-based companies and to keep local management in place after the merger. 

The announcement comes as the companies face scrutiny over the deal. 

In August, Virginia Governor Abigail Spanberger made herself a party to the approval process before the State Corporation Commission (SCC).

What they're saying:

Ed Baine, President of Dominion Energy Virginia, told FOX 5 that the changes are in response to input from stakeholders and customers.

"We are doing this because this is what we heard from our stakeholders, and we wanted to address those concerns," he said. 

Baine also maintained that Virginia customers will not bear the cost of the merger. 

However, energy watchdog groups see the new incentives as a necessary concession to secure approval. 

READ MORE | Arlington County intervenes in $67B Dominion-NextEra merger review

"It’s an acknowledgment by the companies that the original deal just wasn’t going to cut it," said Tyson Slocum, Director of the Public Citizen Energy Program. 

Slocum warned that state regulators must thoroughly examine the deal, and emphasized that there is a potential risk of Dominion being "swallowed up" by NextEra."

With Virginia currently embroiled in debates over energy prices and data centers, public reaction remains mixed. While some residents expressed openness to the scale and potential savings coming with the potential merger, others voiced concerns over possible long-term price increases.

"I guess the bottom line for me would be, of course, cost. Whatever's cheaper," a neighbor told FOX 5's Tom Fitzgerald. 

"They'd be stronger, they'd be larger, they'd have a bigger economy of scale. Why not," another resident said. 

A spokesperson for Governor Spanberger confirmed she is actively reviewing the updated proposal. The merger remains subject to review by the SCC, which has public hearings scheduled for this fall.

VirginiaNews