The Dominion NextEra merger, billed as the largest merger in our Virginia history bears watching closely. There are valid reasons why other States have rejected NextEra advances. As we should also examine our own reasons as to what actual benefits are so overwhelming to believe that mere economies of scale make this more affordable for the average rate payers.
Dominion has growth problems brought on by demand as the explosive growth of data centers continues.
NextEra sees this as an opportunity to expand.
Caveat: $$$$$ follow the money...
Who wins if the merger goes through? Electricity generation and distribution are capital intensive to build out. Data centers clamoring for more power or the average homeowners trying to maintain a burgeoning budget outlay each month? Great demand brings higher prices as well as costs.
Dual rates, lower for residential, much higher for data centers? Might be worth exploring.
Questions for the State Corporation Commission:
First, who approached who about this deal? Is it a hostile attempt?
Disturbing hearing about what NextEra means to Floridians. Though anecdotal, substantial evidence that their corporate power is being wielded by cudgel.
Do the intended economies of scale work out mathematically ?
If not, why do it ?
( to be fair, the actual breakdown has yet to occur)
Overly cost burdensome when you the SCC, our Commonwealth's citizens protection force, has to attempt to regulate what is a multi state corporation that might move existing headquarters elsewhere on a whim. Norfolk Southern. That recent Virginia example of corporate power over regulatory powers.
Citizens United rears its ugly head again... Seems.
Why the rush? Is what seems and appears to be somewhat of a hostile takeover attempt by an out of state corporate entity actually provable by other examples as to what happens when these mega mergers take place in a rushed atmosphere? With enabling legislative action not available until the legislature acts are we being blinded by promises?
Enron comes to mind as to that rapid growth that became an actual Ponzi scheme.
Moving with caution and not caving to corporate demands to complete the deal in such a large merger/ acquisition in a rushed manner seems more than prudent noting the magnitude.
Take time to fully examine it. Don't let it overburden the citizens.
Mergers and acquisitions deserve the highest scrutiny. Maybe Dominion does not need them around anyhow.
Just thoughts.
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