(The Center Square) – Virginia State Corporation Commission staff recommends rejecting the proposed merger between Dominion Energy and NextEra as structured, while Gov. Abigail Spanberger is seeking a six-year residential base-rate freeze and larger customer credits.

The positions were outlined in testimony filed Monday in the proposed $67 billion merger case. Attorney General Jay Jones’ office also filed testimony opposing the transaction.

Commission staff said the companies have not shown the merger would preserve adequate service at just and reasonable rates. Its concerns include financial risks from NextEra’s unregulated businesses and insufficient long-term protections for Dominion Energy Virginia customers.

Staff would not oppose approval if the companies accept additional conditions ordered by the commission. Commissioners have not ruled on the merger.

“The merger, if approved, would not be easily undone and would have very long-lasting impacts in Virginia,” commission staff wrote.

NextEra spokesman Neil Nissan told The Center Square the merger would provide more than $2.1 billion in near-term direct customer and community benefits and maintain Dominion’s current Virginia workforce for five years.

“Dominion Energy Virginia will remain locally led, separately regulated and fully accountable to the State Corporation Commission,” Nissan said.

He said the companies are reviewing the filings and will address the issues through the commission’s process.

Staff recommends financial safeguards, independent directors for Dominion Energy Virginia and maintaining at least 10,431 Virginia employees across the combined company for 10 years. It also seeks another commission review seven to eight years after closing.

Spanberger’s proposal would increase residential bill credits to $29 a month for four years. The companies have proposed a $10 monthly credit, also for four years, for a typical residential customer using 1,000 kilowatt-hours.

Economist Richard McCann, testifying on behalf of Spanberger and Chief Energy Officer Josephus Allmond, also recommends lowering base rates if merger savings are realized during the proposed freeze.

The freeze would cover only part of an electricity bill. Under the proposal, fuel charges and other rate adjustments would remain subject to commission review.

The governor’s filing recommends rejection unless additional commitments are substantially addressed or alternatives identified.

“Without enforceable commitments that meaningfully prioritize ratepayers, lower energy costs, protect Virginia’s utility workforce, and advance Virginia’s energy goals, the State Corporation Commission should reject this merger,” the governor said in a statement.

Jones said Tuesday the merger would not address Virginia’s electricity costs, growing demand or strain on the grid.

Lt. Gov. Ghazala Hashmi welcomed staff’s recommendation Tuesday and backed Spanberger’s request for stronger protections.

Public witness hearings in Richmond and by telephone begin Nov. 5. Written comments are due Nov. 12, and an evidentiary hearing begins Nov. 17.

Under the current schedule, state law requires the commission to rule by Jan. 11.