Virginia SCC Chair Refuses Recusal in $67 Billion Utility Merger

The Virginia State Corporation Commission (SCC) is reviewing a proposed $67 billion share exchange that would see NextEra Energy acquire Dominion Energy. The deal would create the world's largest regulated electric utility, serving 10 million customer accounts across Virginia, Florida, and the Carolinas. While the companies offer bill credits for Virginia residents, energy experts have warned lawmakers that these credits may be offset by long-term rate increases.

Kelsey Bagot, Chair of the SCC, has refused requests from legislators and ratepayers to recuse herself from the proceedings. Bagot previously served as a senior attorney for NextEra from 2022 to 2024. She stated that independent counsel found no violation of judicial conduct and that her work history does not categorically require recusal. Critics, including Senator Russet Perry, argue this is a conflict of interest, noting Bagot recused herself from a separate NextEra project in April.

Governor Abigail Spanberger has formally intervened in the case to provide testimony and participate in settlement negotiations. While Spanberger expressed skepticism regarding the merger's impact on affordability and clean energy goals, she supports Bagot's participation in the review due to her technical expertise. A formal petition to disqualify Bagot and halt proceedings has been filed by a Dominion ratepayer. The SCC is expected to reach a decision by January 11, 2027, while broader federal and state reviews may continue into July 2027.