Edward Smith, edward.smith@sierraclub.org
COLUMBIA, S.C. – Yesterday, NextEra Energy and Dominion Energy – two of the nation’s highest polluting utilities with record-high profits – submitted applications to the South Carolina Public Service Commission, North Carolina Utility Commission, and the Virginia State Corporation Commission to merge into one single utility. The proposed merger fails public interest scrutiny.
While the proposed merger includes approximately $10 per month in bill credits for 24 months for a typical 1,000 kWh residential customer, the customer “benefit” is still lower than Dominion’s rate increase that was recently approved, meaning rates are unlikely to go down. In May, after months of advocacy from concerned ratepayers and organizations, the Public Service Commission approved a settlement that reduced Dominion’s proposed average monthly residential increase from $19.98 (a 12.73% increase) down to $11.97 (a 7.62% increase), demonstrating it has the power to do what is right for customers.
Beyond the temporary bill credits, the proposed merger does not improve residential customers’ experience: it doesn’t solve long-term affordability, there are no commitments to realize efficiencies in the merger that benefit customers, no commitment to retire aging and expensive coal plants, no limits on building new and increasingly expensive gas-burning power plants, no commitment to expand new energy efficiency programs or enhance existing programs, no requirement to accelerate clean energy investments, and no guardrails or protections for residential customers regarding the impacts of data centers on monthly utility bills.
Dominion Virginia claims it needs $55 billion over the next five years for capital costs, while Dominion South Carolina claims it needs $8 billion over that same time. These costs are largely attributable to data centers, not residential customers, and the proposed merger could increase the affordability crisis for customers rather than helping. Changes to the merger proposal must include residential consumer protections, reduced reliance on gas and coal that come with volatile fuel prices, and significant clean energy and energy efficiency investments because they are affordable, fixed-price, and provide benefits to all customers.
In South Carolina, Dominion’s recently proposed energy plan doubles down on new gas-burning power plants like Canadys, preserves expensive fossil fuel infrastructure, and abandons previous climate commitments. Similarly, NextEra has also announced plans to add more gas plants to its fleet.
Should the Commissions approve the applications, Dominion and NextEra will combine to form the country’s largest utility company, servicing 10 million customers across the Southeastern United States.
In response to the application, Paul Black, Sr. Campaign Organizer in South Carolina, issued the following statement:
“The South Carolina Public Service Commission has a responsibility to regulate just and reasonable rates and services of monopoly utilities like Dominion, and this merger is neither just nor reasonable. Locking in coal retirements, clean energy investments, and consumer protections from data centers is the best way the PSC can ensure long-term affordable energy and cleaner air for millions of hard-working families, not corporate consolidation that only benefits shareholders.”
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