Alexandria Has a Seat at the Table as $66.8 Billion Dominion-NextEra Merger Moves Forward

ALEXANDRIA, VA — One of the largest utility deals in American history is moving forward, and the City of Alexandria has made sure it will have a voice in what happens next.

Shareholders of Dominion Energy and NextEra Energy approved their proposed $66.8 billion merger Thursday, Sept. 3, clearing a major hurdle toward creating one of the world’s largest electric utility companies. Reuters reported the approvals Friday. The deal still requires regulatory approval, including from the Virginia State Corporation Commission. 

And Alexandria is now formally part of that Virginia proceeding.

That matters because City officials aren’t looking at the deal simply as a corporate transaction. They’re asking what it will mean for the people who open a Dominion Energy bill every month—and whether a much larger utility will provide affordable electricity and a more resilient power system.

Mayor Alyia Gaskins put the City’s concern plainly when Alexandria announced its intervention Aug. 25.

“The increasing cost of electricity is making it harder for Alexandria families to pay their bills,” Gaskins said.

She added that because the acquisition would create the country’s largest utility company, “the needs and interests of the millions of Virginians who will be impacted must be the top consideration in this process and prioritized above corporate interests.” 

Alexandria’s intervention in the SCC proceeding gives the City considerably more influence than simply submitting a public comment. The City can participate in the regulatory case as it unfolds, advocating for residents on rates, reliability, clean-energy requirements and other conditions regulators may consider before approving the transaction. 

What Could the Merger Mean for Alexandrians?

For the average Dominion customer, there are four big questions: Will my bill go down? Will my power stay on more reliably? Will the electric grid improve? And will anything about my utility actually change?

The answers are more complicated than a simple yes or no.

Will Alexandria customers get money back?

If the merger is approved and closes, yes—customers are promised temporary bill credits.

Dominion and NextEra have proposed $2.25 billion in shareholder-funded bill credits for Dominion utility customers in Virginia, North Carolina and South Carolina during the first two years following closing. SEC filings show approximately $1.78 billion would go to Virginia customers, allocated based on electricity usage.

The companies have also committed that customers would not be charged for transaction, transition, financing, restructuring or acquisition-premium costs associated with the merger.

Dominion Energy Chairman, President and CEO Robert Blue has made the customer-benefit argument directly.

“This is a combination centered on customers, communities and employees,” Blue said when the companies filed their regulatory applications in July.

He said the combination would preserve Dominion’s existing local operation while adding capabilities “that can help us build needed infrastructure more efficiently and keep bills affordable.” 

But there is an important distinction for Alexandria customers:

Bill credits are not the same thing as permanently lower electric rates.

The credits would reduce bills for a limited period following the merger. Neither company has promised that the underlying rates Alexandria customers pay for electricity will permanently decrease.

That’s one reason the SCC review—and Alexandria’s participation in it—matters.

Could the merger mean fewer power outages?

Possibly. But there is no guarantee.

Dominion and NextEra are making reliability and storm resilience important parts of their case for the merger.

When the deal was announced, Blue said customers would benefit not only from the bill credits but from continued investments in “generation, reliability and storm resiliency.” 

The companies say a combined operation would have greater purchasing power, a broader view of the utility supply chain, increased access to capital and a larger operating platform—all of which they argue could help them build infrastructure more efficiently while maintaining reliability. 

That could eventually mean upgraded substations, transmission facilities, distribution equipment, technology or other improvements.

It does not mean Alexandria’s existing poles, transformers, underground lines and other equipment suddenly get replaced when the merger closes. Nor have the companies promised a particular reduction in the number or duration of Alexandria outages.

That’s especially relevant locally after this week’s storms again left thousands of Alexandria customers without power.

A larger utility with greater resources may be able to improve storm preparation, grid resilience and restoration. Whether those promised advantages translate into noticeably fewer or shorter Alexandria outages is one of the issues worth watching as regulators examine the deal.

Will Dominion disappear?

No.

Under the companies’ proposal, Dominion Energy’s operating utilities would remain locally led and separately regulated. The combined company would maintain a corporate headquarters in Richmond as well as NextEra’s headquarters in Juno Beach, Florida. 

Dominion’s Blue emphasized that point when the companies announced the transaction.

“The Dominion Energy name isn’t changing, nor is how we operate locally, serve our customers or engage with the community,” Blue said. 

That means Alexandria customers should not expect their electric company, account or local utility regulation simply to disappear into a Florida corporation overnight.

The Virginia State Corporation Commission would continue regulating Dominion Energy Virginia.

Why Alexandria Stepped In

Alexandria has a history of intervening in utility proceedings rather than leaving decisions entirely to companies and state regulators.

According to the City, its recent participation in natural-gas and water rate proceedings helped reduce proposed rate increases affecting Alexandria customers.

With electricity costs increasingly important to household budgets—and the region facing enormous new demand for power—the City decided this transaction was too consequential to watch from the sidelines. 

Gaskins said Alexandria also wants to ensure that the merger doesn’t undermine Virginia’s existing clean-energy and energy-efficiency laws.

“This intervention builds on Alexandria’s history of leadership at the State Corporation Commission and presents an important opportunity to ensure that any acquisition supports, not weakens, that statutory framework while protecting Virginia customers,” Gaskins said. 

That provides an important counterweight to the companies’ case for the merger.

Dominion and NextEra argue that combining their operations will give them the financial strength and scale necessary to meet rapidly growing electricity demand while maintaining affordability and reliability. Alexandria’s position is essentially: prove it—and make sure customers benefit.

What Happens Next?

Thursday’s shareholder votes do not complete the merger.

The companies still need approvals from federal agencies and state utility regulators, including Virginia’s SCC. Regulatory applications were filed in July. 

For Alexandria customers, that regulatory process may ultimately be more important than Thursday’s shareholder vote.

It is where regulators can examine the promised bill credits, reliability claims, infrastructure plans, merger costs, customer protections and other commitments—and where Alexandria can argue for conditions it believes are necessary to protect residents.

So for now, an Alexandria Dominion customer should expect no immediate change to the monthly electric bill, meter, service or utility company because shareholders approved the merger.

If regulators eventually approve the transaction and it closes, Virginia customers are slated to receive their share of approximately $1.78 billion in bill credits during the following two years. 

Whether the much larger company also delivers lower long-term costs and a more reliable Alexandria electric grid is not yet something anyone can promise.

That’s precisely why Alexandria wanted a seat at the table.