Virginia Regulatory Staff Recommends Rejecting NextEra-Dominion Deal
Virginia utility regulation staff recommended rejecting NextEra's $67 billion acquisition of Dominion Energy, considering the commitments insufficient.
Staff at the utility regulatory commission in the U.S. state of Virginia recommended that the commission reject NextEra's $67 billion offer to acquire Dominion Energy, according to a summary of an official statement reported by MLex.
Staff said the two companies failed to prove that the deal would maintain adequate public service at fair and reasonable rates, the legal standard governing the review of utility operations in the state.
They warned that the deal would expose Dominion to additional financial and commercial risks resulting from NextEra's unregulated competitive activities, and determined that the commitments offered by the two companies are insufficient to ensure Dominion retains the resources necessary to serve its customers post-merger.
The recommendation is not a final decision, as the final say rests with Virginia utility regulators.
What do these terms mean?
Utility Regulatory Commission: A state governmental entity that approves electricity and gas rates and service terms for utility companies.
Fair and Reasonable Rates: A legal standard preventing a utility company from making excessive profits at the expense of customers.
Regulatory Commitments: Promises made by acquiring companies to maintain service, rates, or jobs after the deal.
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