NextEra Energy and Dominion Energy Announce Historic Merger to Create Leading U.S. Utility and Energy Infrastructure Company
NextEra Energy and Dominion Energy have entered into a definitive agreement to combine in an all-stock transaction that will establish the world’s largest regulated electric utility business and one of North America’s most significant energy infrastructure platforms. The merger reflects the growing need for large-scale investment in electricity generation, transmission and grid modernization as power demand across the United States continues to rise at its fastest pace in decades.
Under the agreement, Dominion Energy shareholders will receive a fixed exchange ratio of 0.8138 shares of NextEra Energy for each Dominion Energy share they own when the transaction closes. Following completion of the merger, existing NextEra Energy shareholders are expected to own approximately 74.5% of the combined company, while Dominion Energy shareholders will own around 25.5%.
The combined organization will operate under the NextEra Energy name and continue trading on the New York Stock Exchange under the ticker symbol NEE. The merger is structured as a tax-free, all-stock transaction for shareholders and is expected to immediately strengthen the company’s scale, operational reach and long-term growth opportunities.
The new company will become a dominant force in the North American utility sector, serving approximately 10 million customer accounts across Florida, Virginia, North Carolina and South Carolina. More than 80% of the combined company’s business will be regulated, providing stable and predictable earnings while supporting long-term infrastructure investments.
Together, the companies will own approximately 110 gigawatts of electricity generation capacity spanning a diverse portfolio that includes renewables, battery storage, natural gas and nuclear generation. The combination also creates one of the industry’s most extensive development pipelines, with more than 130 GW of large-load opportunities tied to growing electricity demand from data centers, industrial facilities, population growth and economic expansion.
The merger comes at a time when utilities across the United States are under increasing pressure to deliver reliable, affordable and cleaner electricity while rapidly expanding infrastructure to meet rising demand. By combining their resources, the companies aim to accelerate investments in power generation, transmission systems and grid resilience while leveraging economies of scale to keep customer costs manageable.
As part of the transaction, the combined company has proposed $2.25 billion in customer bill credits for Dominion Energy customers in Virginia, North Carolina and South Carolina over the two years following the closing of the deal. Company executives said the credits are intended to help customers benefit directly from the efficiencies and savings expected from the merger.
The merged entity will maintain dual headquarters in Juno Beach, Florida, and Richmond, Virginia, while Dominion Energy South Carolina will continue operating from its existing headquarters in Cayce, South Carolina. Dominion Energy’s utility operations will retain their current names, including Dominion Energy Virginia, Dominion Energy North Carolina and Dominion Energy South Carolina.
Leadership responsibilities for the combined company have also been outlined. John Ketchum will serve as chairman and chief executive officer of the merged company. Robert Blue will become president and CEO of regulated utilities and will also join the board of directors. Edward Baine will lead Dominion Energy Virginia, Keller Kissam will oversee Dominion Energy South Carolina and Scott Bores will continue as president and CEO of Florida Power & Light Company.
John Ketchum described the transaction as a transformative moment for both organizations and for the regions they serve. He noted that the increasing complexity of utility projects and accelerating electricity demand require companies with greater financial strength, operational scale and development capabilities.
According to Ketchum, combining the two companies will allow them to purchase equipment, finance projects, construct infrastructure and operate systems more efficiently, ultimately helping lower long-term electricity costs for customers. He also emphasized that Dominion Energy’s local operations, customer relationships and community engagement efforts will remain unchanged.
Ketchum said the merger combines more than two centuries of collective industry experience and creates a stronger platform capable of supporting customer growth, grid reliability and long-term shareholder value. He highlighted the opportunity to integrate best practices from both organizations in areas such as customer service, storm response, infrastructure development and operational efficiency.
Robert Blue also emphasized the shared commitment both companies have toward affordability, reliability and customer service. He stated that the merger creates a stronger energy partner for the southeastern United States while providing the financial resources necessary to support future investments in generation, transmission and grid modernization.
Blue added that maintaining employee continuity and preserving local headquarters demonstrate the companies’ commitment to the communities they serve. He described the merger as the beginning of a new chapter for both organizations and said the combined company will be better positioned to support regional economic growth and future energy demand.
Strategically, the merger brings together four highly regarded regulated utility platforms with minimal operational overlap. This allows the combined company to expand its reach and capabilities without significant duplication of assets or services.
Executives say the merger will create one of the industry’s strongest supply chains, supported by greater purchasing power and broader access to equipment and materials. The company also plans to utilize advanced analytics and artificial intelligence tools to improve project planning, infrastructure deployment and operational performance.
The combined company expects its regulated rate base to grow from approximately $138 billion at an annual rate of about 11% through 2032. This growth will be supported by large-scale investments in generation facilities, transmission systems, grid upgrades and resiliency projects.
The company will also become a leader across multiple areas of the energy industry. It is expected to rank first globally in renewables and battery storage, first in the United States for gas generation and total electricity generation and second nationally in nuclear generation.
In addition to operational growth, the companies announced several commitments focused on customers, employees and communities. Alongside the $2.25 billion in bill credits, the merged company plans to increase charitable giving by an additional $10 million annually over five years. It also intends to continue support programs for low-income customers throughout Virginia, North Carolina and South Carolina.
The companies further pledged to maintain employment for Dominion Energy’s approximately 15,000 employees, including preserving existing compensation and benefits. Executives said the merger will enhance the company’s ability to respond to storms, strengthen grid resiliency and support local economies through infrastructure investments and job creation.
From a shareholder perspective, the companies expect the merger to be immediately accretive to adjusted earnings per share upon closing. The combined organization projects annual adjusted earnings growth of more than 9% through 2032 and continuing through 2035 based on NextEra Energy’s 2025 expectations.
The combined company also plans to maintain a dividend growth policy of approximately 6% annually through 2028 while targeting a dividend payout ratio below 55% by 2030. Dominion Energy shareholders will continue receiving Dominion’s existing quarterly dividend until the transaction closes and will also receive a one-time cash payment totaling $360 million at closing.
Executives from both companies believe the merger creates a uniquely positioned utility platform capable of addressing the growing electricity needs of the U.S. economy while balancing affordability, reliability and sustainability. By combining regulated utility operations with one of North America’s largest energy infrastructure development businesses, the new organization aims to deliver long-term value for customers, communities, employees and shareholders alike.
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