NextEra Energy Proposes $67 Billion Merger With Dominion Energy

NextEra Energy announced Monday morning a $67 billion all-stock merger with Dominion Energy. The deal would create the largest U.S. utility by market value if regulators approve it. The combined company would lead the U.S. utility sector in overall electricity generation, natural gas generation, and renewable energy capacity.

NextEra shareholders would own 74.5 percent of the new entity and Dominion shareholders would own 25.5 percent.

NextEra Energy, based in Juno Beach, Florida, operates Florida Power & Light and NextEra Energy Resources. Dominion Energy, based in Richmond, Virginia, serves customers in Virginia, North Carolina, and South Carolina. John W. Ketchum, NextEra CEO, would lead the combined company. Robert M. Blue, Dominion CEO, would become CEO for regulated utilities.

The companies said they expect state and federal approvals to take 12 to 18 months. The merger would combine NextEra’s national reach with Dominion’s position serving data centers in northern Virginia. Company officials stated the deal would create economies of scale and include $2.25 billion in bill credits for Dominion customers over two years.

“We are bringing NextEra Energy and Dominion Energy together because scale matters more than ever—not for the sake of size, but because scale translates into capital and operating efficiencies,” Ketchum said in a statement. Andrew Bischof, an equity analyst for Morningstar, said the transaction would allow NextEra to accelerate its data center plans using Dominion’s expertise.