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Spanberger intervenes on Dominion-Nextera merger
Virginia Gov. Abigail Spanberger is intervening in a proposed $67 billion merger between Dominion Energy and NextEra Energy.
VIRGINIA - Virginia Gov. Abigail Spanberger is taking the unprecedented step of formally intervening in the state’s review of a proposed $67 billion merger between Dominion Energy and NextEra Energy.
What we know:
Spanberger will become the first Virginia governor to formally intervene in a case before the State Corporation Commission.
Becoming a party to the case will allow the governor’s administration to receive information, ask questions and participate directly in the SCC’s review. It could also allow the administration to pursue legal action depending on the commission’s eventual decision.
The proposed agreement would combine Dominion and NextEra into one company in what FOX 5 reported would be the largest utility merger in the country.
Why Spanberger is intervening
Spanberger said she is concerned about energy affordability and whether the combined company would be able to meet Virginia’s growing energy needs.
"Certainly, as we’ve seen in NextEra’s filed paperwork, NextEra has filed to purchase Dominion for $67 billion," Spanberger said. "As this process is going through the SCC review, I believe it’s extraordinarily important to be a party to the case, to intervene in this case so I can have a voice on behalf of Virginians."
Her decision comes one day after the SCC ordered data centers, rather than residential customers, to pay for transmission upgrades built exclusively to serve those facilities.
What Dominion Energy said
Dominion Energy said the SCC is the proper venue to review the proposed transaction.
"The SCC is the appropriate forum to evaluate this transaction and balance the interests of the Commonwealth, and we are confident its established, fact-based review will demonstrate the benefits this proposal offers Virginia," the company said in a statement to FOX 5.
Consumer advocates weigh in
Tyson Slocum of Public Citizen said Spanberger’s intervention could help ensure that residents’ interests are represented during the review.
"What the governor is saying is that we need to make sure that the public and the public interest is fully represented before the commission," Slocum said.
Jason Hayes of the Heritage Foundation questioned how much government officials should influence a proposed agreement between private companies.
"The idea of if two private companies should merge is generally something that’s best left to free markets to decide," Hayes said.
Lawmakers seek more review time
Some Democratic and Republican state lawmakers are urging Spanberger to call a special session of the Virginia General Assembly.
The lawmakers want the General Assembly to consider legislation that would give regulators more time to examine the proposed Dominion-NextEra merger.
What's next:
The SCC will review the proposed transaction and determine whether it serves Virginia’s public interest.
Spanberger’s formal intervention will allow her administration to participate in that process and raise concerns on behalf of Virginia ratepayers.
The Source: This article was written using reporting from FOX 5’s Tom Fitzgerald and statements from Gov. Abigail Spanberger, Dominion Energy, Public Citizen and the Heritage Foundation.