NextEra Energy Proposes $67 Billion Acquisition of Dominion Energy

NextEra Energy announced plans on Monday to acquire Dominion Energy in a roughly $67 billion deal. The transaction would value the Virginia-based utility at about $76 per share, representing a 21 percent premium to its Friday closing price. NextEra would exchange about 0.8 shares of its stock for each Dominion share, with a small cash component included.

NextEra shareholders would own about 75 percent of the combined company. A tie-up would create one of the largest power companies in the U.S. by market value. The Financial Times first reported on Friday that a completed deal would create a company valued at about $400 billion including debt.

The merger will require federal and state approvals, including in Virginia, North Carolina, and South Carolina. NextEra expects the review to take between 12 and 18 months. NextEra CEO John Ketchum said the larger scale and efficiencies would translate into more affordable electricity for customers in the long run.

The company is proposing $2.25 billion in bill credits for Dominion customers over two years. NextEra responded that customers of its Gulf Power subsidiary in Florida are now paying 19 percent less after inflation adjustments since the 2019 acquisition.

Electricity demand is surging due to AI data center expansion. Residential rates rose 7.4 percent in February compared with a year earlier, with Virginia seeing a 12.2 percent increase. NextEra has struck deals with Google and Meta to supply power to their data centers.

Projections for data center power consumption in 2030 range from less than 7 percent to as much as 16 percent of total U.S. electricity use. Natural disasters and higher equipment costs also contribute to rising bills. Virginia Gov. Abigail Spanberger signed a bill last week requiring data centers to bear more electricity costs.