Utility merger

NextEra to buy Dominion in $67 billion all-stock utility deal

The companies say the merger would create the world’s largest regulated electric utility as data centers and AI drive electricity demand higher

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NextEra to buy Dominion in $67 billion all-stock utility deal
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Florida, United States
NextEra Energy said it will acquire Dominion Energy in a $67 billion all-stock deal, creating a utility serving about 10 million customers in four states.
Data Centers Dominion Energy Electricity Costs NextEra Energy Utilities

NextEra Energy said it will acquire Dominion Energy in a $67 billion all-stock deal, creating a utility serving about 10 million customers in four states.

NextEra Energy said Monday it will acquire Dominion Energy in an all-stock transaction valued at about $67 billion, a deal that would combine two of the nation’s largest utilities as electricity demand accelerates from artificial intelligence and data center growth.

The companies said the transaction would create the “largest regulated electric utility” in the world. The combined company would operate under the NextEra Energy name and serve about 10 million utility customers across Florida, Virginia, North Carolina and South Carolina.

Under the proposed ownership structure, NextEra shareholders would hold about 74.5% of the combined company, while Dominion shareholders would own about 25.5%. The deal is expected to close in mid-to-late 2027.

The announcement lands at a moment of rising pressure on the power grid and household budgets. Electricity costs rose 6.1% in April from a year earlier, according to the latest inflation data cited in the report. Virginia, one of the states in the combined company’s footprint, is home to hundreds of data centers.

NextEra and Dominion said combining operations would help them meet rising demand while keeping customer bills affordable. As part of the agreement, the companies said Dominion customers in Virginia, North Carolina and South Carolina would receive a total of $2.25 billion in credits over two years.

“Electricity demand is rising faster than it has in decades. Projects are getting larger and more complex,” John Ketchum, NextEra Energy’s president and CEO, said in a statement. “Customers need affordable and reliable power now, not years from now.”

Consumer advocates are already questioning how much lasting relief the package would provide. Clean Virginia, a nonprofit focused on energy affordability, warned that the $2.25 billion in credits would be a temporary payout rather than a permanent reduction in monthly bills.

The group also pointed to the companies’ return on equity, a regulatory measure that helps determine how much profit utilities can earn on approved investments included in their rate base. Clean Virginia said rapid utility growth can increase long-term costs for customers unless the allowed profit rate is reduced meaningfully.

The next major test for the deal will be whether the companies can keep the focus on customer costs while arguing that a larger utility is better positioned to supply power for a fast-growing digital economy.

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