Dominion Energy and NextEra Energy on Monday said they would establish a Virginia supplier program worth up to USD 1 billion annually for five years if their proposed merger gets approved by American regulators.
While the merger plans were announced in May this year, with rising power demand from data centers, electric vehicles, and other American industries driving a renewed wave of utility consolidation, the development has also drawn sharp reactions from the lawmakers.
Stating the new program would direct spending toward contractors, suppliers, and service providers in Virginia, NextEra and Dominion have proposed extending monthly USD 10 bill credits to four years from two, along with increasing Dominion’s low-income financial assistance by USD 100 million through 2038.
The companies’ commitments also include a USD 100 million “workforce development fund,” an annual energy summit in the state of Virginia, apart from maintaining the current employee headcount there for five years.
The combined company will get a shareholder-funded co-headquarters tower in state capital Richmond.
Virginia Governor Abigail Spanberger said in August she would intervene in the regulatory review of the merger, pressing for commitments on concern areas like power affordability, job protections, and clean energy investments.
Spanberger would formally become a party to the case before the Virginia State Corporation Commission, providing her with access to filings and the ability to raise questions and concerns about the transaction.
Shareholders of both companies have, however, approved the proposed USD 66.8 billion merger. The deal, awaiting regulatory approvals, is expected to close in the second half of 2027.
While Virginia-based Dominion serves the largest concentration of data centers globally, the combined entity will create the third-biggest American energy company, behind oil majors Exxon Mobil and Chevron, with an enterprise value topping the next two largest US power companies taken together.
NextEra CEO John Ketchum stated in an SEC filing, “While shareholder approval is a major accomplishment, we still have work to do as we navigate state and federal regulatory approval processes.”