$67B Dominion-NextEra merger draws pushback over rates, pollution and data centers

(WCIV) — Local advocacy groups are speaking out Friday after Dominion Energy South Carolina and Florida-based NextEra Energy reportedly filed an application with the South Carolina Public Service Commission for approval of their $67 billion merger.

FILE – The Dominion Energy sign outside of the Electric and Fleet Operations center in the aftermath of Hurricane Helene Sunday, Sept. 29, 2024, in Aiken, S.C. (AP Photo/Artie Walker Jr., File)

The Southern Environmental Law Center released a statement Thursday stating that this merger, which has the potential to be the largest acquisition in the nations history, could negatively impact South Carolinian customers, communities, and the environment despite their claims that the deal is “in the public interest.”

“While Dominion and NextEra’s shareholders stand to gain plenty from this deal as they set their sights on data center growth, South Carolinians would ultimately pay for their profits in more ways than one. When utilities build methane gas infrastructure to power data centers, Dominion’s customers foot the bill and face the health and environmental consequences,” said Kate Mixson, Senior Attorney at the Southern Environmental Law Center.

Dominion, based in Richmond, Virginia, helps to power hundreds of data centers across the state. It also provides regulated electricity service to 3.6 million homes and businesses in Virginia, North Carolina, and South Carolina, and regulated natural gas service to 500,000 customers in South Carolina.

Through this merger with NextEra, advocacy groups state that it is becoming increasingly clear that their intention is to further capitalize on their combined growth at the expense of South Carolinians and raise data centers. This comes at a time when consumers express concern over escalating electric bills and are pushing back over AI data centers.

“NextEra Energy has made no secret of the fact that they want to buy Dominion Energy so they can profit from the growth of AI data centers in Virginia and South Carolina. Dominion is already planning to spend billions to expand its gas-fired power plant fleet, and we are concerned about the prospect of NextEra doubling-down. Overbuilding gas plants and pipelines for data center speculators would likely lead to much higher electric rates and more pollution, both of which are unacceptable when South Carolinians are already struggling with unaffordable electric bills and healthcare costs,” said Taylor Allred, State Energy & Climate Program Director at the Coastal Conservation League.

The combined company will serve approximately 10 million utility customer accounts across Florida, Virginia, North Carolina and South Carolina and NextEra CEO John Ketchum will serve as chairman and CEO of the combined company.

A decision on the deal is expected to be announced in the next six months.