NextEra-Dominion merger could jack up electricity prices, lawmakers warn

Democratic lawmakers are warning that the proposed $67 billion merger between NextEra Energy and Dominion Energy could reduce competition and raise electricity prices for consumers.

In a letter to the Federal Energy Regulatory Commission (FERC) on Wednesday, the legislators expressed concern that the enlarged company would have excessive market power, allowing it to pass costs on to ratepayers, defer upgrades on the energy grid and avoid scrutiny from federal regulators. The new company could also use its control overtransmission lines to disadvantage rivals, according to the lawmakers.

FERC, a government agency, is responsible for ensuring mergers are consistent with the public interest. 

“We urge you to closely scrutinize this merger and block it if the Commission determines it would increase market concentration or have an adverse effect on costs for consumers — or if the acquisition is otherwise not in the public interest,” the lawmakers wrote in the Sept. 30 letter, shared exclusively with CBS News.

Signing the letter were Sen. Elizabeth Warren of Massachusetts and Rep. Suhas Subramanyam of Virginia, who led the effort, as well as Sens. Richard Blumenthal of Connecticut; Edward Markey of Massachusetts; Chris Murphy of Connecticut; Jack Reed and Sheldon Whitehouse of Rhode Island; and Reps. Chris Deluzio of Pennsylvania; Maggie Goodlander of New Hampshire; Raja Krishnamoorthi of Illinois; Seth Magaziner of Rhode Island; and Eugene Vindman of Virginia.

NextEra and Dominion didn’t immediately respond to a request for comment on the letter.

NextEra announced in May that it would acquire Dominion, saying the deal would create the”largest regulated electric utility” in the world. The merger is expected to close in mid- to late 2027. 

The new company would serve around 10 million utility customers across Florida, North Carolina, South Carolina and Virginia, and own all of the nuclear power plants in New England. 

The companies have said they are committed to delivering affordable energy. In announcing the deal, NextEra also proposed offering $2.25 billion in bill credits to Dominion customers for two years following the merger’s closing. 

In their letter on Wednesday, the lawmakers said independent monitors have found that utility companies involved in mergers routinely tout rate reductions but often fail to deliver on savings. 

“FERC should similarly be skeptical of promises for rate credits in this case,” the legislators wrote.

The political pressure on NextEra and Dominion comes as many consumers grapple with higher electricity prices. The National Energy Assistance Directors Association, a nonprofit policy organization, forecast this month that Americans will pay an average of $1,249 on electricity to heat their homes this winter, up more than 30% from last year.