At SCC hearing, Virginians say Dominion-NextEra merger could mean higher bills, new risk

In downtown Richmond outside the State Corporation Commission, dozens of protestors shouted their opposition to the NextEra-Dominion Energy merger, as public testimony in the case proceeded inside the SCC courtroom. 

Some demonstrators held aloft effigies of the three SCC commissioners, while others gave speeches outlining their concerns about the deal, saying it would create a monopoly and urging commissioners to reject the $67 billion proposal.

“This is trickle up capitalism. And we are seeing people suffer,” said Rev. Daniel Ray Wilson outside the SCC doors. “While people get richer, they do things that they don’t even need to be doing, like buy islands, or dump millions upon millions into flying cars.” 

The final in-person public testimony hearing highlighted Dominion ratepayers’ key gripes ahead of the proposed merger’s litigation process, chiefly spiking electricity bills.

In recent years Dominion’s base rates have increased and riders have been added to bills to cover the costs of several energy generation projects. Opponents fear the merger will only worsen their utility costs as demand grows.

“The case before you is perhaps the most consequential decision this commission will make, in a generation, or in maybe many generations,” Sen. Kannan Srinivasan, D-Loudoun, said in his testimony. “And we cannot discuss it without addressing what is driving the energy demand: data centers.”

“People are struggling to make ends meet right now as it is, and this is just an additional thing on top of that,” testified Jessica Schneider, a member of the Chesterfield Board of Supervisors. “NextEra has shown they have a history of turning off people’s utilities, which is not something that I am in favor of at all.”

The merger would create the largest regulated utility in the world with 10 million customers, 110 gigawatts of power, and a connection queue of 130 GW. 

The crux of what the three commissioners will have to consider when making their determination on this merger is whether “adequate service to the public at just and reasonable rates will not be impaired or jeopardized” by the combining of the two companies.

SCC staff testimony pre-filed ahead of the public hearing outlined policy recommendations and changes to quell concerns over investment protections called “ring fencing” and the volatility of the unregulated branch of the NextEra’s business. 

Ultimately staff recommended against the commissioners approving the deal.

In the joint petitioners rebuttal testimony earlier this week, Dominion agreed to some of those changes but rejected or altered others.

Thursday’s hearing also drew supporters of the project.

Virginia Chamber of Commerce President and CEO Brad Hall said that the creation of the energy titan would fuel job creation and economic growth in the state. 

In response to the concerns about bill costs, Hall pointed to the four-year, $10 monthly bill credits as part of immediate relief the companies have offered.

“I believe these two companies coming together with a capital buying power that they’ll have, and the amount of investments that they’re gonna make into generation, which will help customers in the long run,” Hall said.

Two days of telephonic public testimony will follow the in-person hearing, taking place Nov. 9 and 10. Written testimony can be submitted until Nov. 12 on the SCC website. 

Commissioner Samuel Towell told the crowd that 2,400 written comments have been submitted as of the time of the hearing.

At a meeting of the Energy Commission of Virginia on Thursday, lawmakers had a lengthy debate over a drafted letter some legislators  intended to send the SCC, detailing the potential risks of the merger that they’d learned from experts over the last several months. 

However, some members of the board felt the letter was an improper attempt to legislate while litigation was on-going. The motion to send a revised version of the letter did not receive enough votes to pass.

The evidentiary portion of the case is set to begin on Nov. 17. The SCC commissioners have until Jan. 11 to make their determination on if the merger should be approved. 

Regulators in North Carolina and South Carolina, as well as the Federal Energy Regulatory Commission and federal anti-trust officials, will have to give approvals for the merger in order for it to be completed.