The Duane Arnold nuclear plant in Iowa, shut down in 2020, is set for a NextEra Energy restart by 2029. The firm plans to acquire utility Dominion Energy to create a massive company with an estimated $250-billion market capitalization, but the stock deal faces state and federal regulator approval and is not expected to close for 12 to 18 months.
NextEra Energy, one of the largest U.S. power producers, announced May 18 that it has agreed to buy utility Dominion Energy in a mostly stock deal valued at nearly $67 billon that would combine two east coast energy giants and create the largest U.S. electricity producer with multiple megaprojects and about 10 million customer accounts.
The combined entity would have an almost $250-billion market capitalization, which the companies said would make the new firm the “world’s largest regulated electric utility business by market capitalization and one of the world’s largest energy infrastructure companies.”
The new combined entitty would rank as the nation’s largest operator of gas-powered power plants and of utility-scale battery storage, as well as the second-largest nuclear power plant operator, the companies said. The transaction has been unanimously approved by both firms' boards of directors, they added, but could take up to 18 months to close with numerous sign-offs needed from state and federal regulators.
Florida-based NextEra has about six million customers through its Florida Power & Light unit and claims a market value of nearly $200 billion, while Virginia-based Dominion serves four million customers and is valued at more than $50 billion. NextEra shareholders will own about 75% of the company, with Dominion shareholders owning the rest. NextEra units operate nuclear power plants in Florida, New Hampshire and Wisconsin; solar and wind farms in states including Arizona and Texas; and nearly 13,000 miles of transmission lines in North America. Dominion owns the Millstone nuclear plant in Connecticut, and has leased land in Chesterfield County, Va. to Commonwealth Fusion Systems to start construction of what would be first commercial scale fusion power plant at 400 MW—and the world's first as well, .The utility also is providing technical assistance although no financial support.
NextEra announced a partnership last year with gas turbine manufacturer GE Vernova to develop power plants serving data centers, and was picked by the White House in March to provide 10 GW of natural gas capacity in Pennsylvania and Texas under a trade deal with Japan. The company has also pursued clean energy projects and battery storage to meet short-term power needs of data centers and technology firms.
NextEra CEO John Ketchum would be chairman and CEO of the
combined company, and Dominion Chair, President and CEO Robert Blue will
become president and CEO of its regulated utilities and a board member. The
combined company will operate under the NextEra Energy name, with dual headquarters in Juno Beach, Fla., and Richmond, Va.
According to analysts, the purchase would enable NextEra to gain a strong footprint in the data center sector. Dominion's presence in Midatlantic states includes the so-called “Data Center Alley” in northern Virginia that has become a major hub for the artificial intelligence industry. Dominion has connected more than 450 data centers in Virginia, with the sector making up about 28% of its electricity sales in the state, Blue told an energy conference in Houston in March.
Looking for quick answers on construction and engineering topics?
Try Ask ENR, our new smart AI search tool.
Ask ENR →
Dominion also is nearing completion of the nation's largest offshore wind energy project, the 2.6-GW Coastal Virginia Offshore Wind project off Virginia Beach, Va., despite a failed Trump administration effort—stopped by court order earlier this year—to halt installation of 176 turbines and related infrastructure. About 14 of the turbines, each rated at 14.7 MW, are complete and are starting to generate power.