RICHMOND, VA — Governor Abigail Spanberger today — in expert testimony filed with the State Corporation Commission (SCC) on behalf of the Office of Governor — called on NextEra Energy and Dominion Energy to freeze residential electricity rates for six years and triple monthly customer bill credits as conditions of any merger.
The Governor urged the SCC to reject the proposed $67 billion merger in the absence of these and other guarantees and additional binding commitments to protect and preserve Virginia jobs, lower energy costs for families, and accelerate Virginia’s progress toward producing affordable, reliable, local, and clean power into the future.
“Any proposed merger involving Virginia’s primary state-regulated utility must benefit families, small businesses, and Virginia’s workforce — not just the shareholders of these multi-billion-dollar corporations,” said Governor Abigail Spanberger. “That’s why I am calling for a six-year freeze to Virginians’ base residential electricity rates, a tripling of monthly bill credits for ratepayers, and additional commitments to lower energy costs and meet our long-term clean and homegrown energy goals if the State Corporation Commission is to approve this merger.”
Governor Spanberger continued, “As Governor, I will continue to advocate aggressively on behalf of Virginians over the coming months, and I remain deeply skeptical that the proposed $67 billion merger, as currently structured, will adequately protect consumers and deliver meaningful public benefits. Without enforceable commitments that meaningfully prioritize ratepayers, lower energy costs, protect Virginia’s utility workforce, and advance Virginia’s energy goals, the State Corporation Commission should reject this merger.”
As a condition of approving this transaction, the Governor is also calling for additional commitments to put Virginia’s families, workers, and ratepayers first. These include reforms to lower the share of costs borne by residential customers, stronger protections against utility disconnections for Virginians, and greater investments in energy efficiency and locally generated clean energy.
The Governor is also seeking structural reforms to ensure large data centers bear the cost of their own energy needs — not families — and expand rooftop solar by eliminating the program’s cap. Critically, these commitments must be backed by strong enforcement provisions from the SCC that hold these companies accountable for their promises to Virginians and their workers.
“With the commitments made in the original filing and supplemental testimony, Dominion and NextEra have not yet satisfied the legal standard that would allow the Commission to approve this transaction,” said Chief Energy Officer Josephus Allmond. “This testimony lays out the bold actions that will be required in this transformative moment to ensure just and reasonable rates for Virginia customers resulting from the proposed merger.”
Dr. Richard McCann — a leading expert on energy, water, and environmental policy — provided expert testimony on behalf of Governor Spanberger and Chief Energy Officer Allmond. Dr. McCann has consulted on environmental and energy resource economics and policy since 1985, testifying more than 50 times before numerous regulatory agencies as well as in trial and arbitration cases. Dr. McCann also testified before the Federal Energy Regulatory Commission in the California Energy Crisis Refund Proceeding.
In August, Governor Spanberger formally filed a Notice of Participation as Respondent, becoming the first Governor of Virginia to intervene at the SCC. The Governor announced her decision to intervene in the proposed merger in a Washington Post op-ed — laying out three non-negotiable priorities: delivering more affordable energy bills for Virginians, protecting Virginia’s utility workforce, and accelerating Virginia’s progress toward producing affordable, reliable, local, and clean power into the future.
As a party to the case, the Governor and her Administration have the legal right to engage, bring concerns forward, request detailed information about the proposed merger, and make clear that Virginians expect to see long-term, tangible benefits of any potential deal.
