NextEra Energy and Dominion Energy Announce Merger

NextEra Energy and Dominion Energy announced an agreement to merge in an all-stock transaction that the companies say would create the nation’s largest regulated electric utility business and one of the world’s largest energy infrastructure companies.

Under the agreement, Dominion Energy shareholders would receive 0.8138 shares of NextEra Energy for each Dominion share they own. Following the merger, NextEra shareholders would own about 74.5% of the combined company, while Dominion shareholders would own about 25.5%.

The combined company would operate under the NextEra Energy name and continue trading on the New York Stock Exchange under the ticker symbol NEE. The companies said they would maintain dual headquarters in Juno Beach, Florida, and Richmond, Virginia, along with Dominion Energy South Carolina’s operational headquarters in Cayce, South Carolina.

The merger would combine utility operations serving about 10 million customer accounts across Florida, Virginia, North Carolina and South Carolina. The companies said the combined operation would own 110 gigawatts of electric generation and would be more than 80% regulated.

The companies also announced a proposed $2.25 billion in bill credits for Dominion Energy customers in Virginia, North Carolina and South Carolina, spread over two years after the transaction closes. Company officials said the merger is expected to create savings through larger-scale operations, procurement, construction and financing.

NextEra Energy Chairman, President and CEO John Ketchum said increasing electricity demand and the scale of future energy projects drove the decision to merge.

“This is a historic moment for our two companies and for the states we are privileged to serve,” Ketchum said. “Electricity demand is rising faster than it has in decades. 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 merger would strengthen the companies’ ability to invest in electric generation and infrastructure.

“This combination brings together two strong operating platforms and creates an even stronger energy partner for Virginia, North Carolina, South Carolina and Florida, with the scale and balance sheet to deliver the generation, transmission and grid investments our customers and economies need,” Blue said.

The companies said Dominion Energy’s utility operations would continue using the Dominion Energy Virginia, Dominion Energy North Carolina and Dominion Energy South Carolina names.

Under the proposed leadership structure, Ketchum would serve as chairman and CEO of the combined company, while Blue would become president and CEO of regulated utilities and join the board of directors.

The transaction has been unanimously approved by both companies’ boards of directors but still requires approval from shareholders and regulators, including the Federal Energy Regulatory Commission, the Nuclear Regulatory Commission, the Virginia State Corporation Commission, the North Carolina Utilities Commission and the Public Service Commission of South Carolina.

The companies said they expect the transaction to close within 12 to 18 months.