In an official filing in the State Corporation Commission’s review of the proposed $67 billion NextEra-Dominion Energy merger, Speaker of the Virginia House of Delegates Don Scott, D-Portsmouth, on Wednesday aired his concerns and advice about the deal in a letter to SCC Chair Kelsey Bagot.
“If this merger is not built around affordability for Virginians then it should not go through. That is my starting point, and it should frame every question this Commission asks over the coming months,” Scott wrote in the Sept. 2 missive. The House leader has received nearly $4 million in campaign donations from Dominion over the years.
Scott included a list of eight key points of consideration that he said commissioners should keep top of mind, including ensuring that the combined company adheres to Virginia Clean Economy Act environmental and clean energy standards, and that Virginians don’t “see a single dollar of rate increase as a result of this merger.”
Data centers should “cover the full cost of the generation, transmission, and distribution infrastructure required to serve them,” Scott wrote. He also emphasized that Virginia jobs must be protected, and suggested the planned energy titan host its co-headquarters in Richmond.
“Virginia has the chance to get this right and to show the rest of the country how it is done. But that outcome depends on this Commission demanding more than assurances,” Scott wrote. “It depends on enforceable conditions, on real accountability, and on affordability being the organizing principle of the entire review.”
SCC commissioner, former NextEra attorney declines to recuse herself from merger case
Days before Scott’s letter to Bagot, a former NextEra attorney who has declined to recuse herself from reviewing the merger case, 14 state lawmakers signed onto a letter to Gov. Abigail Spanberger, urging her to call a special session to facilitate an extension of the SCC’s review period for the merger.
Under current law, the SCC must approve or reject the merger proposal within 180 days of its official application, which was filed July 15.
The all-stock trade deal between Virginia’s largest utility and the Florida-based NextEra has raised concerns for a growing cadre of lawmakers who say review period is too short for such a major decision that could have major implications for ratepayers.
“Ratepayers, local governments, businesses, and consumer advocates need a real opportunity to examine the filings, participate in hearings, and submit comments — not a compressed window that forecloses genuine scrutiny,” the lawmakers’ Aug. 31 letter stated.
The democratic legislators’ letter echoes similar concerns of two Republican lawmakers, who called for a special session earlier this summer.
Lawmakers call for special session to debate Dominion-NextEra merger
In order for legislation passed in a special session to go into effect, the session has to be officially adjourned sine die, and then the legislation is enacted 90 days later. This leaves a narrow window for the legislature to meet and pass a bill allowing for an extension before the SCC’s Jan. 11 deadline, the lawmakers’ letter said.
Currently, the General Assembly is in an active special session. Because that session was recessed, not adjourned, theoretically they could call themselves back in to do the work. It’s not yet clear if lawmakers will use this option.
Spanberger has not confirmed whether she will fulfill the request to convene a special session. She made the unprecedented move to file as an official intervenor to the case last month.
As an intervenor, her administration will be allowed to directly question the companies, review confidential documents and argue for conditions in the agreement.
A few localities and advocacy group Clean Virginia have also filed motions to intervene in the case.
Lt. Gov. Ghazala Hashmi has been traveling the state this summer on a listening tour, asking residents to discuss their concerns of the merger and learn how they submit official testimony in the case. The latest stop was in Loudoun on Wednesday.
Utility regulation experts have also warned lawmakers about potentially concerning impacts to ratepayers should the merger succeed.
The public testimony portion of the case is set to begin on Nov. 5. A full schedule of hearings can be found on the SCC website.
