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.”

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The governor will become a party to the case before the Virginia State Corporation Commission, giving her access to filings and the ability to raise questions and concerns ⁠about the transaction.

“They’re not sufficient yet, which is one of the reasons why I’ve chosen to intervene in the case. Because I need a lot more details. The action of actually formally intervening is an unprecedented one. As a governor, ‌I ⁠do acknowledge that,” Spanberger said, while taking note of the companies’ merger plan, that, once its completion, will form one of the world’s largest electric utilities, amid the ongoing expansion of energy-intensive data centers.

“The size and scope of this merger application are also unprecedented,” she stated further.

The deal, which is pending approvals, will create the third-biggest American energy company, behind oil majors Exxon and Chevron. The combined ⁠entity will have an enterprise value topping the next two largest domestic power companies combined.

Spanberger said she was not seeking to take the decision out of ⁠regulators’ hands, stating that “the decision to approve or deny…that authority still lies with the SCC.”

The governor also said that as a ⁠party to the proceeding, she has the “ability to take legal action once there’s a decision made.”

NextEra Energy, meanwhile, beat Wall Street estimates for its Q2 profit, driven by rising electricity demand from data centers, a trend that boosted its utility and renewable energy businesses.

NextEra and its industry peers ‌are investing billions of dollars to expand power generation and transmission as technology companies and data centers race to secure electricity.

NextEra, one of the world’s largest renewable energy developers, to further cash on the ongoing AI boom, will restart ⁠the Duane Arnold nuclear plant in Iowa, that will supply power to Google data centers.

On a post-earnings call, CEO John Ketchum said NextEra had acquired the remaining 30% stake in Duane Arnold from its cooperative partners, giving it full ownership.

However, the venture has not yet finalized the natural gas-fired power projects backed by a US-Japan initiative. These gas-based plants have a combined capacity of nearly 10 GW.

Florida Power & Light (FPL), NextEra’s regulated utility, posted a 10.2% rise in quarterly net income to USD 1.41 ⁠billion. FPL continues to see about 21 GW of hyperscaler opportunities in its pipeline, including nearly 12 GW under advanced negotiations. It expects to sign at least one agreement under its large-load tariff by the 2026 end.

NextEra Energy Resources, the renewable energy unit, reported a net income of USD 1.63 billion, up 66.2%, apart from adding 3.6 GW of storage projects, taking its backlog to ⁠about 35.1 GW.

However, the regulatory review involving the acquisition of Dominion Energy will be NextEra’s biggest test, as apart from Spanberger, the deal is also facing opposition from  American Senator Angus King, who argued it would concentrate too much market power in one company.

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