At the Virginia Energy Commission meeting on Tuesday, State Corporation Commission (SCC) Chair Kelsey Bagot answered lawmakers’ inquiries about whether she would recuse herself from the pending merger between Dominion Energy and NextEra Energy. Bagot, who worked as a senior attorney for NextEra before joining the SCC in April 2024, said she sees no reason to step aside.
Background on the merger
The proposed $67 billion transaction would create the nation’s largest electric utility, serving roughly 10 million customers and about 110 gigawatts of power. Dominion argues the merger will allow the combined company to purchase energy‑infrastructure equipment in bulk, lower costs, and improve its credit rating. As part of the deal, NextEra shareholders would fund a $2.25 billion bill‑credit program for customers, translating to roughly $10 a month for the average Virginia residential ratepayer.
Recusal request and response
In the days leading up to the meeting, several General Assembly members, including Sen. Scott Surovell (D‑Fairfax), asked Bagot to clarify whether her prior employment with NextEra required her to recuse. Surovell cited past concerns about a previous recusal involving a high‑voltage transmission line project from Leesburg to Winchester, where Bagot had provided legal counsel in 2023.
Bagot’s August 17 response noted that the earlier recusal was limited to that specific transmission case. She said she consulted independent counsel regarding the Dominion‑NextEra merger and, after reviewing the Canons of Judicial Conduct, concluded that her past work history does not automatically mandate a recusal. “As has been demonstrated by long‑standing historical Commissioner practice, mere work history with a regulated entity has not served as a categorical basis requiring recusal,” she wrote.
Expert testimony and consumer concerns
During the session, a panel of energy‑regulation experts discussed potential impacts. While Dominion highlighted the $1.78 billion in shareholder‑funded bill credits, experts warned there is no guarantee rates will stay low once those credits expire. They also referenced NextEra’s prior attempts to acquire utilities in Hawaii and Texas, both of which were rejected by regulators over public‑interest concerns.
Yale Law School professor Joshua Macey warned of a “gold‑plating” bias, where utilities might over‑build to boost returns on equity. He suggested the merger could be a response to rising data‑center demand, noting Virginia already hosts more than 400 data centers.
Public reaction and political response
About 50 Dominion customers and community advocates gathered outside the Virginia General Assembly before the meeting. Speakers, including Melissa Thomas, argued the merger is driven by data‑center expansion and warned against additional gas‑plant construction, calling for clean, affordable energy instead.
A bipartisan group of lawmakers has asked Governor Abigail Spanberger to convene a special legislative session to extend the SCC’s review period, which currently gives commissioners less than six months to decide. The governor has not yet responded.
Governor Spanberger and Chief Energy Officer Josephus Allmond filed notice to intervene in the case, an unusual step that will allow the governor’s office to cross‑examine witnesses and access confidential merger information. Spanberger expressed skepticism about the deal’s benefits, especially if they come at the expense of affordability, jobs, or Virginia’s clean‑energy goals.
Next steps
The SCC’s public testimony phase begins on Nov. 5 and continues through Nov. 10, with evidentiary hearings slated for Nov. 17. A final decision must be rendered by Jan. 11. For the merger to proceed, regulatory approval is also required from North Carolina, South Carolina, the Federal Energy Regulatory Commission, the Nuclear Regulatory Commission, the U.S. Department of Justice, and the Federal Trade Commission.
The controversy underscores the tension between large‑scale utility consolidation and consumer protection, a debate that will likely shape Virginia’s energy landscape for years to come.
Original reporting: Alexandria, VA News – WTOP News — read the source article.
