NextEra Energy, Dominion Energy Unveil Virginia Benefits Package
NextEra Energy, Inc. and Dominion Energy, Inc. (NYSE: D) have announced an expanded Virginia benefits package tied to their proposed combination, responding directly to feedback from policymakers and other stakeholders. The companies said the package is designed to prioritize customers while strengthening Virginia’s position as a global energy leader.
The proposed benefits package focuses on several priorities identified by Virginians, including affordability, employment, clean energy development, battery storage, data center cost protections and investment in energy infrastructure. The companies said the plan would provide residential bill relief, expand assistance for low-income customers, accelerate clean energy deployment and create thousands of direct and indirect jobs across the Commonwealth.
A central element of the package is a proposal to extend residential bill credits from two years to four years. Under the expanded plan, residential customers would receive $10 per month in credits for four years. The companies said they would work with the State Corporation Commission (SCC) to redirect a portion of credits that otherwise would benefit large-scale data centers toward additional residential relief, while also increasing the aggregate shareholder-funded Virginia customer credit amount.
The companies also plan to increase funding for EnergyShare, Dominion Energy’s shareholder-funded energy bill assistance program, by $100 million through 2038. They reaffirmed that customers would not be responsible for merger-related costs, stating that customers would not pay for the proposed combination.
“This is a Virginia-first package, and it starts with customers,” said John Ketchum, chairman, president and CEO of NextEra Energy. He said the company was responding to stakeholder feedback by doubling the period of residential bill relief, expanding low-income assistance and providing long-term affordability benefits.
Ketchum also reaffirmed support for efforts by the SCC, Governor and General Assembly to ensure that residential and small business customers are protected from costs associated with serving data centers. He said the combination would also enable Virginia to build clean energy and supporting infrastructure more quickly, reducing reliance on expensive imported power.
Robert Blue, chair, president and CEO of Dominion Energy, said Dominion Energy Virginia would remain locally led, separately regulated and accountable to the SCC following the combination. The existing local teams, led by Ed Baine, would continue serving customers across the Commonwealth.
Blue said the combination would add NextEra Energy’s scale, capital and capabilities while maintaining the focus on reliability, affordability and customer service. The package would also maintain Dominion Energy’s existing Virginia employee headcount levels for five years while creating additional employment opportunities.
Benefits of Scale
The companies said long-term affordability would be supported by the combined company’s ability to purchase, build, finance and operate infrastructure more efficiently. Future base rates would continue to be established by the SCC through its existing regulatory process, with base rates set every two years.
NextEra Energy pointed to the performance of its utility subsidiary, Florida Power & Light Company (FPL), as an example of the potential benefits associated with greater scale. Since 2006, FPL has increased customer accounts by more than 36% and generation capacity by more than 60%, while improving reliability by more than 40% and reducing bills by 20% in real-dollar terms.
The company said FPL’s non-fuel operations and maintenance expenses are now more than 70% below the national average, while its typical residential bills are 37% below the national average. FPL’s reliability is also more than 60% better than the national average, according to NextEra Energy.
The companies said Dominion Energy Virginia would continue to operate under Virginia’s regulatory framework, while NextEra Energy’s scale and operating experience could provide additional long-term efficiencies.
Data Center Protections
Another major component of the package involves data centers. NextEra Energy and Dominion Energy reaffirmed their support for regulatory and legislative measures designed to ensure large data center customers pay their fair share of the costs associated with the electricity infrastructure required to serve them.
The companies said the approach is consistent with Dominion Energy’s GS-5 rate class and FPL’s large-load tariff, which NextEra Energy describes as one of the most protective in the United States. They also cited their support for the Ratepayer Protection Pledge and recently enacted Virginia legislation addressing data center costs.
Accelerating Energy Development
The proposed combination would also support faster development of energy resources in Virginia, including solar, battery storage, dispatchable generation and nuclear power.
The companies said they would leverage their combined construction capabilities, supply chains and development experience to accelerate renewable energy and storage projects consistent with the Virginia Clean Economy Act. Existing Virginia assets, including the Virginia City Hybrid Energy Center, would also be used to support reliability during the transition to additional energy infrastructure.
“Virginia should not have to choose between affordability, reliability and clean energy,” Blue said. “The answer is to build affordably, build faster and build in a way that protects customers.”
Jobs and Economic Development
The package would establish a larger NextEra Energy presence in Richmond and create new employment opportunities throughout Virginia. NextEra Energy would maintain current employee headcount levels in the state for five years and add 600 new jobs.
Suppliers are expected to contribute another 400 jobs, bringing the potential total of new direct and indirect employment opportunities to approximately 1,000. NextEra Energy would also fund construction of a new office tower in Richmond next to Dominion Energy’s existing headquarters. The facility would serve as part of the combined company’s co-headquarters.
The new Richmond operations would support areas including renewable energy development, supply chain management, battery storage, nuclear and small modular reactor innovation, enterprise technology and cybersecurity.
The companies also plan to host an annual global energy summit in Virginia, bringing executives, investors and policymakers together to discuss energy technology, innovation and infrastructure.
Workforce and Supplier Investment
The proposed package includes a $100 million investment in Virginia workforce development. The funding would support career development, hands-on training and apprenticeships in cooperation with union partners.
The companies would also establish an independent workforce development organization with representatives from Virginia’s trade schools, colleges, universities, technical colleges and community colleges. The organization would focus on preparing workers for new energy-related employment opportunities.
In addition, the companies propose a Virginia Supplier Program with spending commitments of up to $1 billion annually for five years. The program would support contractors, suppliers and service providers operating in Virginia while leveraging the combined company’s purchasing scale.
The initiative would also seek to expand the Port of Virginia’s role in the energy supply chain and increase opportunities for local firms and workers. The companies said more than nine additional businesses already intend to establish or expand their Virginia operations if the proposed combination receives approval.
Together, NextEra Energy and Dominion Energy said the package would deliver immediate customer benefits while creating a broader platform for investment, energy development, employment and economic growth across Virginia.
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