Environmental advocates don’t think there is enough time or regulatory authority to address the impacts of the deal.
As environmental groups raise serious concerns about a massive energy deal proposed in Virginia, Gov. Abigail Spanberger (D) is getting involved in the case.
In July, Dominion Energy and NextEra Energy filed an application with the Virginia State Corporation Commission (SCC) seeking approval to combine the two companies in a deal valued at $67 billion. According to state law, the SCC has 180 days to review the case, which would put the deadline for a decision sometime in January.
Dominion says the combined companies will be better positioned to serve customers amid rapidly growing electricity demand.
“The combined company will be better positioned to finance and build the energy infrastructure customers need efficiently and affordably over the long term,” Jeremy Slayton, a Dominion spokesperson, said in an email.
But the proposal has raised serious questions and skepticism about how it would impact people in Virginia.
Critics worry that the SCC needs more time to review such a complicated deal and that the public interest is taking a backseat to corporate interests. There are also concerns about the deal in the context of the broader debate over energy infrastructure challenges and data center development.
“We want there to be full, rigorous, and transparent scrutiny,” said Brennan Gilmore, executive director of Clean Virginia, a political group that’s critical of Dominion and opposed to the merger. “That’s extraordinarily hard with a utility this size, and it’s impossible in the six-month timeline.”
Gilmore is among those who want Spanberger to call a special session of the Virginia General Assembly so lawmakers can give the SCC more time to review the merger.
But Spanberger has not come out in support of that, and instead has taken the unusual move to formally “intervene” in the case. That means the governor and her administration will have a legal right to engage in the case, raise concerns, and request detailed information about the proposed merger.
“My priority is not drawing out a time frame wherein I have no ability to impact an outcome or provide feedback or ask questions,” Spanberger told reporters on a virtual press call on Aug. 6. “My priority is in ensuring that I can be a part of that conversation, which is why I’m taking the step of intervening.”
Questions about SCC chair
Another question that’s been raised relates to the involvement of SCC Chair Kelsey Bagot, one of the three SCC commissioners who will decide on the merger.
The General Assembly elected Bagot to serve on the SCC in 2024. Prior to that, Bagot was a senior attorney at NextEra for one year and eight months, according to her profile on LinkedIn.
Her previous work for a company involved in a case she’s overseeing gave some lawmakers pause. But this week, Bagot sent a letter to Senate Majority Leader Scott Surovell saying she didn’t see a need to recuse herself from the case.
“As has been demonstrated by long-standing historical Commissioner practice, mere work history with a regulated entity has not served as a categorical basis requiring recusal,” Bagot said, according to a WTVR report.
That did not satisfy state Sen. Michael Jones (D-Richmond), who released a statement saying he respected Bagot’s decision but disagreed with it. Jones said the issue is not just whether Bagot can be impartial, but also whether Virginians can have confidence in the process.
“Given her previous role with NextEra, I believe there is a clear concern about a conflict of interest,” Jones said. “At the very least, to avoid even the appearance of impropriety and protect the public’s trust in this process, she should recuse herself.”
Chris Miller, president of the Piedmont Environmental Council, an environmental group, said there are big unanswered questions about how this deal could impact Virginia energy customers and the state’s air and water.
“Where does the public interest get guaranteed?” Miller said. “It’s only through a regulatory process, and we don’t have enough time or enough authority to address the bigger impacts.”
