NextEra Energy and Dominion Energy today announced plans to combine in an all-stock transaction that the companies said would create the world’s largest regulated electric utility business and one of North America’s largest energy infrastructure platforms.
Under the agreement, Dominion Energy shareholders would receive 0.8138 shares of NextEra Energy for each Dominion share owned at closing. The combined company would operate under the NextEra Energy name and continue trading on the New York Stock Exchange under the ticker NEE.
The companies said the merger would create a utility platform serving approximately 10 million customer accounts across Florida, Virginia, North Carolina and South Carolina, with 110 GW of generation capacity spanning multiple energy sources. The combined company’s operations are expected to be more than 80% regulated.
Dominion Energy’s offshore wind portfolio is also expected to become part of the expanded energy platform, including the company’s Coastal Virginia Offshore Wind (CVOW) project. Dominion delivered the project’s first power to the regional grid March 23 from a 14.7-MW Siemens Gamesa turbine, roughly two months after a federal court allowed construction activities to resume following a Dec. 22 stop-work order affecting several East Coast offshore wind projects.
The companies also announced a proposed $2.25 billion in bill credits for Dominion Energy customers in Virginia, North Carolina and South Carolina over two years following the transaction’s close.
NextEra Energy chairman, president and CEO John Ketchum said the merger is intended to help meet growing electricity demand through expanded scale and operating efficiencies.
“Electricity demand is rising faster than it has in decades,” Ketchum said in a statement. “Projects are getting larger and more complex. Customers need affordable and reliable power now, not years from now.”
Dominion Energy chair, president and CEO Robert Blue said the combination would strengthen the companies’ ability to invest in generation, transmission and grid infrastructure.
The merged company would maintain dual headquarters in Juno Beach, Fla., and Richmond, Va., along with Dominion Energy South Carolina’s operational headquarters in Cayce, S.C. Dominion Energy’s regulated utility operations would continue under the Dominion Energy Virginia, Dominion Energy North Carolina and Dominion Energy South Carolina brands.
According to the companies, the combined platform is expected to support approximately 11% annual growth in regulatory capital employed and more than 9% adjusted earnings per share growth through 2032.
