Gov. Abigail Spanberger said Tuesday that the proposed merger between Dominion Energy and NextEra Energy is “not nearly good enough” for Virginia in its current form, laying out a series of tougher conditions she says would be necessary to protect ratepayers if the deal moves forward.
Spanberger filed testimony Monday in the State Corporation Commission case reviewing the proposed merger, formally outlining her demands after intervening in the case earlier this year. Among her proposals are a six-year freeze on electric rate hikes, rebates to Virginia customers that are three times larger than what the companies have proposed and enforceable commitments to clean energy.
“The deal in its current form is not nearly good enough for Virginia or for Virginians,” Spanberger said Tuesday during a press briefing.
Spanberger emphasized that her proposed six-year freeze would apply to rate hikes, rather than preventing rates from falling. Under her proposal, the SCC could review rates if they would otherwise decrease during the six-year period.
She also said the proposed customer rebates are insufficient without protections against rate increases.
“A rebate without a rate hike freeze, if you are going to raise rates and then give a rebate, that could net still be painful for the Virginians who get their electric bill,” Spanberger said.
The governor’s testimony comes as SCC staff also filed paperwork opposing the merger in its current form and recommending a series of conditions if the transaction is ultimately allowed to proceed.
Spanberger said one of her biggest concerns is that Dominion and NextEra have not provided enough financial information to demonstrate the efficiencies they expect the merger to create.
Asked whether Virginia regulators can determine whether the merger benefits customers without specific financial projections from the companies, Spanberger gave a blunt answer.
“In short, I don’t believe that they can,” she said.
Spanberger said the lack of financial information makes it difficult for SCC commissioners and Virginians to evaluate the financial consequences of the proposed merger.
“It does create a far more opaque landscape,” she said.
The governor also wants the merger to include broader changes to Virginia’s energy policy, including lifting the cap on rooftop solar and changing how electricity demand and pricing are projected.
Her testimony also calls for electricity produced for data centers to be separated from energy production serving residential customers, an effort she said could help protect residential ratepayers from the effects of increasing electricity demand from large companies.
Spanberger said some of the proposals could benefit Virginians regardless of whether the merger is approved.
She also raised concerns about Dominion’s offshore wind project in Hampton Roads, saying ratepayers have already helped fund the project and could be harmed if a merged company reduces its investment or walks away from it.
“I have concerns about everything as it relates to this potential merger,” Spanberger said.
The governor also discussed the so-called “robo memo” involving allegations surrounding NextEra, saying the document should be made public as part of the SCC case.
The 2021 memo was prepared by a former consultant for then-NextEra CEO James Robo. The document, which has become known as the “Robo Memo,” has drawn scrutiny from utility watchdogs and shareholders suing NextEra, who say it details Florida Power & Light’s alleged involvement in recruiting “ghost candidates” to run in Florida legislative races against Democratic candidates opposed by the utility.
She pointed to public reporting about allegations involving political meddling and a settlement of more than $100 million paid by NextEra.
The document is being kept confidential in the SCC review.
Spanberger was also asked whether her position has been influenced by interactions between NextEra’s CEO and the Trump administration.
She said watching NextEra’s actions has “only reaffirmed” her position that her role is to ensure the best possible deal for Virginians.
“If you have millions of dollars to donate to President Trump’s ballroom, then presumably you have the financial capacity and capability to ensure that Virginians also are benefiting from any potential deal of this size and scale,” Spanberger said.
NextEra also gave $15,000 to Spanberger’s inaugural committee.
Spanberger acknowledged that her demands are aggressive but rejected the idea that they are unrealistic.
“If anyone wants to call them moonshot, they’re welcome to,” she said. “However, I also think they are very, very real.”
*Dominion Energy is a sponsor of Virginia Scope, but has no editorial input*