Dominion, NextEra resist rate freeze in merger review

(The Center Square) – Dominion Energy and NextEra Energy are resisting a proposed rate freeze and longer job protections as Virginia regulators weigh the companies’ planned $67 billion merger.

In testimony filed Monday, the companies agreed to accept 101 of 117 conditions proposed by State Corporation Commission staff and the attorney general’s consumer counsel without changes. Disagreements remain over rates, staffing and financial safeguards.

The filing came ahead of Thursday’s public comment hearing in Richmond. The evidentiary hearing begins Nov. 17.

Under the Utility Transfers Act, the commission must determine whether the deal would impair or jeopardize adequate service at just and reasonable rates.

NextEra Chairman and CEO John Ketchum rejected consumer counsel’s proposed three-year moratorium on rate increases after the merger closes.

He said the companies’ proposed bill credits would provide relief while allowing Dominion to seek recovery of reasonable and prudent costs incurred to serve customers.

The companies have proposed extending a $10 monthly credit from two years to four for a typical residential customer using 1,000 kilowatt-hours a month. That alternative requires commission approval.

Commission staff also proposed requiring the combined company to maintain at least 10,431 employees in Virginia for 10 years. The companies want to retain their five-year commitment.

Ketchum opposed a proposed 10-year restriction on reducing staffing or centralizing or consolidating operations at Dominion Energy Virginia generating facilities and local district offices. He argued it could prevent improvements in service or efficiency, while saying he was not suggesting there were plans to consolidate operations.

Written comments entered into the commission record Thursday reflect competing views.

Thomas Chamberlain, founder and CEO of Virginia Beach-based digital health communications company EdLogics, urged approval, citing purchasing power, infrastructure investment, workforce development and the proposed $100 million EnergyShare increase.

Chamberlain said he learned about the deal through conversations with Dominion representatives and a presentation to the Hampton Roads Chamber’s board of directors and trustees.

Lisa Billow of Norfolk, who described herself as a retired environmental scientist and a senior on limited income, opposed the merger. She raised concerns about rate increases and clean energy goals, opposed additional data centers and said the merger appeared geared toward building infrastructure for them.

Telephone public comment hearings are scheduled for Monday and Tuesday, though registration to speak has closed. Written comments are due Thursday.

This post was originally published on The Center Square.

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