Capitol Hill Democrats say they will closely scrutinize the proposed merger between NextEra Energy and Dominion Energy to determine whether the deal is anti-competitive or could drive up utility bills for millions of consumers.
The comments from Democrats in key oversight roles and lawmakers representing states affected by the deal came after NextEra announced it would acquire Dominion in a roughly $67 billion transaction, creating the largest power company in the United States pending regulatory approval.
“I have serious doubts about the anti-competitive effects, and I’m going to be looking at it,” said Richard Blumenthal (D-Conn.), a member of the Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights. “I think the antitrust enforcers should be reviewing it as well.”
NextEra, based in Juno Beach, Florida, is already the largest power company in the U.S. by market capitalization. It is also the nation’s largest renewable energy developer and owns Florida Power & Light, one of the country’s biggest electric utilities.
By acquiring Virginia-based Dominion, NextEra would gain control of a utility at the center of America’s data center boom. Virginia is home to the world’s largest concentration of energy-hungry data centers powering cloud computing and artificial intelligence.
“It will be one of the largest combinations in the country, and, you know, I do think we have to have concerns — antitrust concerns, concerns about competition, about putting almost the entire energy system from Virginia to Florida in one set of hands,” said Sen. Jack Reed (D-R.I.), the ranking member on the Senate Appropriations Financial Services and General Government Subcommittee
While members of Congress do not directly decide whether a merger is approved, they can influence the process by exerting public and internal pressure on regulators through actions like oversight letters and hearings.
Lawmakers from Virginia, who have been grappling with the impact of data-center-driven electricity demand on energy prices, said they would be closely monitoring the agreement as it moves through review for any potential effect on ratepayers.
“Any proposed merger must put Virginia energy customers first and ensure ratepayers have access to reliable and affordable energy,” a spokesperson for Sen. Mark Warner said. “Warner will continue to review this transaction as it works its way through the federal and state regulatory process.”
Democratic Rep. Suhas Subramanyam, whose district includes the famed “Data Center Alley” in northern Virginia, was more forceful in his skepticism.
“This merger needs to be strongly scrutinized for how it will impact energy bills,” Subramanyam said in a statement. “A company that specializes in building energy infrastructure just bought a company that likes to increase rates for new infrastructure.”
The deal will require approval from Virginia’s State Corporation Commission. Jay Jones, whose office serves as the commonwealth’s designated ratepayer advocate, could also subject the deal to intense scrutiny.
A spokesperson for Sen. Tim Kaine (D-Va.), a former governor, said “the devil is in the details” of any merger and that the senator would be closely following the state’s review of the deal. Kaine is focused on how the transaction could affect Dominion’s renewable energy portfolio, including its massive offshore wind project.
“Kaine is particularly interested in how this proposed merger will advance Virginia’s leadership in American renewable energy innovation,” the spokesperson said.
Pavan Acharya, Benjamin Storrow and Adam Aton contributed to this report.
