Ivan Sascha Sheehan: Virginia should not rush the NextEra-Dominion merger
An op-ed argues that the Virginia State Corporation Commission should not rush its review of the proposed merger between NextEra and Dominion, emphasizing the deal's significant implications for Virginia's data center economy and electricity grid. The author highlights the importance of the public interest given the concentration of utility and data power. Concerns are raised about the utilities' monopoly power and the need for a thorough assessment of the merger's impact on rates, infrastructure, and public policy, especially considering the vast electricity demands of data centers in Northern Virginia.
Ivan Sascha Sheehan, interim dean of the College of Public Affairs at the University of Baltimore, has penned an op-ed urging the Virginia State Corporation Commission (SCC) to conduct a thorough and unhurried review of the proposed merger between NextEra and Dominion. Sheehan, a public policy professor and former Virginia resident, argues that the SCC's review should prioritize the common good, reflecting Virginia's tradition of government protecting shared interests.
The proposed merger is presented as a critical intersection of electric utility consolidation and burgeoning data center demand in Virginia, particularly in Northern Virginia, home to the world's largest data center market. Sheehan highlights that Dominion is already central to this economy, and the merger would create the world's largest regulated electric utility, wielding substantial influence over generation, transmission, and rates, which would directly impact the electricity-intensive data center sector.
The author points to NextEra's history of legal controversies, including allegations of political influence campaigns, as a relevant factor for the SCC to consider when assessing the company's fitness to control essential infrastructure. He stresses that the review must determine who benefits, who pays, and who decides in this convergence of "big power and big data." Sheehan criticizes Virginia's current 180-day review process and passive legal standard, which does not require companies to prove the merger's benefit to Virginians or that rates will not rise, arguing it is inadequate for such a momentous decision.