New England States Push Federal Scrutiny of NextEra-Dominion Deal Over Power Costs

Massachusetts Governor Maura Healey and other New England states on Aug. 19 urged federal regulators to closely scrutinize NextEra Energy’s proposed acquisition of Dominion Energy, arguing the deal could increase electricity costs by concentrating control over critical power assets. The states contend the combined company would gain significant influence over the region’s energy market, including ownership of New England’s two remaining nuclear power plants, which together provide nearly one-quarter of the region’s electricity.

The coordinated effort, led through the New England States Committee on Electricity, calls for a thorough review of the transaction’s potential effects on electricity prices, market competition, and grid reliability. State officials argue the merger deserves heightened scrutiny because of the strategic role nuclear generation plays in maintaining dependable power supplies across the six-state region.

The states also pointed to the companies’ previous actions in New England as evidence for stronger oversight. They highlighted NextEra Energy’s financial backing of opposition campaigns that delayed the New England Clean Energy Connect transmission project for years, an effort that later resulted in enforcement action by Maine’s ethics regulator against groups that failed to disclose the company’s support. Officials also cited an order requiring a NextEra subsidiary to refund millions of dollars after ratepayers were charged for a transmission project that was never built.

Dominion Energy’s handling of the Millstone Power Station in Connecticut also drew criticism, with states arguing the company used the possibility of closing the facility to secure a long-term agreement with the state.

Massachusetts has expanded its legal challenge by seeking a formal role in the federal review. The Massachusetts Department of Public Utilities and the Attorney General’s Office have both moved to intervene in the proceeding before the Federal Energy Regulatory Commission, while the Healey administration continues coordinating with New England states on additional actions.