Dominion Energy has sought to merge with Florida-based NextEra Energy in what would become the nation's largest regulated utilities and energy provider should the deal be approved. Both companies have reassured that the combination would not negatively affect customers, but community watchdog groups have not been swayed by these arguments.
On July 15, the pair of utility providers submitted a joint filing with the state Public Service Commission to justify the merger's public benefit. It's an all-stock deal valued at about $67 billion. About 10 million customers would be under the combined utility umbrella.
In the filing, the two energy giants said the merger will be seamless for Dominion's South Carolina customers. The two see the deal as an opportunity to help South Carolina keep up with energy demands in the nation's fastest growing state.
But the potential deal has environmental advocates and community organizations throughout the state doubting the public benefit, as they fear the deal could hurt ratepayers in the long term. At the forefront of fears is an expectation that larger customers like energy plants and data centers could take priority over the average South Carolinian after the merger.
Kate Mixson, a senior attorney at the Southern Environmental Law Center, said she wants to ensure that the deal would ultimately be in public favor.
"We want to make sure that this merger is not going to cause electric customers to see higher costs on their bills," she said.
The Southern Environmental Law Center, Costal Conservation League, Vote Solar, and the Southern Alliance for Clean Energy released a joint statement last week in which the parties all shared skepticism that the deal would benefit customers.
“Bigger is not always better, when it comes to controlling the cost and environmental impact of electric service," said Eddy Moore, director of decarbonization at the Southern Alliance for Clean Energy, in a statement. "As proposed, NextEra and Dominion stockholders could make billions of dollars in exchange for giving customers in South Carolina effectively peanuts. Our state officials should not rubberstamp the transfer of this state-guaranteed monopoly without strong guarantees around affordability and environmental impact."
Of the other states Dominion also operates in, Mixson said Virginia has set an example on what to look out for. The state is home to the country's largest cluster of data centers. She is concerned that South Carolina could follow that lead.
"If this acquisition is approved, South Carolina will be the next target," Mixson said. "When utilities have to build more gas plants and pipelines to power AI data centers, their customers are the ones that foot the bill and that face the health and environmental consequences."
Multiple municipalities in the state have already placed moratoriums on new data centers.
South Carolina Public Radio reached out to Dominion Energy SC regarding the merger, and while it could not provide an interview, a spokesperson said in an email that the merger would benefit customers and the state.
Those potential benefits include NextEra's "strength and unmatched experience developing and building energy infrastructure at scale" and expanded purchasing power. The spokesperson also said additional customer benefits should eventually come, although no specific details were given.
"Over the longer term, the combined company's scale, financial strength, and operational breadth is likely to yield additional customer benefits," Dominion South Carolina's Media Relations Director Rhonda O'Banion said in the email.
Part of the buyout would include $2.25 billion in rate credits for Dominion customers to be applied over two years. About 17%, or $387 million, would be allocated to South Carolina energy customers. The average customer would then receive a discount of about $10 per month on electric bills for two years following the deal's completion.
The potential discount could — for a short period — offset an about $12 monthly rate hike that Dominion customers in the state have roundly protested.
The sale is expected to close in the second half of 2027 but still needs to be approved by state regulators.
