power megamerger and all related data centers

“You’re creating a very big project that has a lot of money, a lot of political power, and it’s not always good for the taxpayers,” he said. “The more political power they have, the more they can use that power to the detriment of taxpayers.”

Smith cautioned that the merger should not be viewed as a done deal. NextEra has tried to acquire other assets in the past and failed, including terminated negotiations with Duke Energy in 2020.

“Their purchasing history is not very good,” he said. “Going after the Dominion is the biggest fish they’ve ever tried to get into.”

Virginia law would still apply

Despite those concerns, Dominion and its out-of-state parent company may still have to comply with Virginia laws and regulations, said William Shobe, an emeritus research professor of political science at the University of Virginia.

“These laws do not mention the Dominion, they mention the requirements that follow in the footsteps of the Dominion, whatever its name is,” he said.

These laws include the Virginia Clean Economy Act, the state’s 2020 law that aims to decommission its grid by 2050, and a recently passed law expanding Dominion’s battery storage. Development goals.

If anything, NextEra’s reputation as a leader in solar and wind energy could “bleed” into Dominion’s culture that “hasn’t been too aggressive about adding zero-emissions technology,” Shobe said.

Acquiring Dominion is exciting for NextEra Energy, he said, because Virginia has a friendly environment to build grid infrastructure, strong profitability, and a growing data market. NextEra said the merger creates a pipeline of 130 gigawatts of demand from data centers, which critics say is speculative, with the potential to double that to 225 gigawatts by 2032.

In November, state regulators approved a $7 billion rate hike at Florida Power & Light. Consumer groups have characterized the rate hike, which is facing a federal court challenge, as the largest in US history.

Bradley Marshall, a senior attorney at Earthjustice, said the price hike made NextEra more financially viable to complete the merger.

“In the past, when we’ve seen resources grow more, we’ve seen costs grow more,” he said. “Consumers need to be informed about what’s going on and make sure that keeping bills from going up is important.”

This article appeared first Inside Weather News.