NextEra Energy to acquire Dominion for $67 billion, joining two of the nation's largest utilities
NextEra Energy announced its intent to acquire Dominion Energy for $67 billion, creating the world's largest regulated electric utility. The merger is driven by surging electricity demand from AI and data center growth, aiming to provide affordable and reliable power to 10 million customers across four states. While the companies promise bill credits, a nonprofit group expressed concerns about long-term affordability.
NextEra Energy announced its intention to acquire Dominion Energy in an all-stock deal valued at approximately $67 billion. This acquisition will merge two major utilities, forming the largest regulated electric utility globally, with NextEra Energy shareholders owning about 74.5% of the combined entity.
The companies stated that the merger is largely in response to the rapid increase in electricity demand fueled by the artificial intelligence boom and extensive data center construction across the country. The combined company, operating as NextEra Energy, will serve roughly 10 million utility customers in Florida, Virginia, North Carolina, and South Carolina. The deal is projected to close in mid-to-late 2027.
John Ketchum, President and CEO of NextEra Energy, emphasized the need for affordable and reliable power, stating that the merger will help meet rising demand. As part of the agreement, NextEra and Dominion plan to offer $2.25 billion in credits over two years to Dominion customers in Virginia, North Carolina, and South Carolina.
However, Clean Virginia, a nonprofit advocating for energy affordability, cautioned that these credits would only offer temporary relief. The group also raised concerns that NextEra has not committed to lowering its return on equity (ROE), which could lead to higher long-term costs for customers as the utility's rate base expands with new projects.