Bianca Sanchez, bianca.sanchez@sierraclub.org
Richmond, VA. – NextEra Energy and Dominion Energy – two of the nation’s highest polluting utilities with record-high profits – have submitted applications to the Virginia State Corporation Commission, the South Carolina Public Service Commission, and the North Carolina Utilities Commission to merge into one single utility. The proposed merger fails public interest scrutiny and neglects the Virginia Clean Economy Act (VCEA) mandates.
Beyond a temporary $10 per month customer bill credit for 24 months, the proposed merger does not improve residential customers’ experience or solve long-term affordability. There are no commitments to retire aging and expensive coal plants, no limits on building new increasingly costly gas-burning power plants, no commitment to expand or enhance energy efficiency programs, no commitment to expand the Coastal Virginia Offshore Wind Project, no protections regarding the impacts of data centers on residential customers’ bills, and no commitment to advance clean energy, the most affordable and fastest energy for Virginians.
In the merger proposal, 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.
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, Connor Kish, Director of the Sierra Club Virginia Chapter, issued the following statement:
“Nothing in this application thus far shows that this merger will benefit the customer or benefit the environment. Virginians are already struggling with rising costs and pollution from data centers and gas plants. A mega-merger threatens to continue Virginia on this dangerous pathway, giving Dominion and NextEra access to some of the largest resources of any utility in the world. Virginia leaders have an obligation to ensure a future rooted in affordability, reliability, and environmental protections that address climate change – not corporate consolidation. Regulators must oppose this merger and continue to thoroughly and deliberately research and review its key details.”
About the Sierra Club
The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.