Connecticut leaders said they plan to intervene in a proposed merger between NextEra Energy and Dominion Energy.
The $67 billion merger would bring together NextEra Energy, which owns the Seabrook nuclear power plant in New Hampshire, and Dominion Energy, which owns the Millstone Nuclear Power Station in Connecticut. If combined, the company would operate the largest natural gas generation fleet in the country and the second-largest nuclear operator nationally.
Governor Ned Lamont said the merger would create one of the world's largest utility companies, placing control of all of New England's nuclear power under one entity. He said he worries that Connecticut families will pay the price while shareholders reap the rewards.
“We’re intervening to protect the best interests of Connecticut families and businesses and to ensure the regulatory review process considers the potential risks this merger poses for Connecticut ratepayers, who already pay some of the highest utility prices in the country,” Lamont said.
Attorney General William Tong said the lack of price competition could pose a risk to Connecticut families who face unaffordable energy costs. Tong said families and businesses are already getting crushed by surging energy costs.
“The last thing we need is consolidated corporate control over the core of Connecticut’s energy supply. I cannot support this merger. The Office of the Attorney General has intervened in this proceeding and is weighing all legal options to protect Connecticut’s access to affordable, clean, reliable energy,” Tong said.
The company would be the world’s largest regulated electric utility by market capitalization, if combined, according to Tong. He said approximately 10 million customer accounts and 110 gigawatts of owned generation across a broad mix of energy sources. Tong said the Office of the Attorney General said it is weighing all legal options.
The Federal Energy Regulatory Commission will review the proposed merger along with the U.S. Department of Justice and the U.S. Nuclear Regulatory Commission. Tong said his office has reached out to FERC to request reconsideration of the merger. The transaction would also require approval from the states of Virginia, North Carolina, and South Carolina to move forward.
This week the New England States Committee on Electricity (NESCOE) urged FERC to closely review NextEra’s proposed acquisition of Dominion. Connecticut Consumer Counsel Claire Coleman said the merger would have significant impacts on Connecticut energy consumers. Coleman said it would concentrate control over much of New England’s energy generation resources and infrastructure.
“Yet state regulators will have no say in this transaction’s approval process because neither NextEra nor Dominion are regulated utilities in Connecticut,” Coleman said. “That’s why, alongside our state and regional partners, we’re intervening on behalf of Connecticut residents to ensure affordability and reliability remain top of mind as the transaction is evaluated by federal regulators.”
