Virginia Governor To Intervene In Dominion-NextEra Merger (washingtonpost.com) 21
Longtime Slashdot reader schwit1 shares an opinion piece from the Washington Post, written by Virginia Governor Abigail Spanberger: NextEra Energy, a Florida-based utility company, has filed paperwork to buy Dominion Energy for about $67 billion, creating the largest regulated electric utility in the world. Virginia's State Corporation Commission is the regulatory body tasked with reviewing the application, and the SCC's commissioners will ultimately decide whether to approve, deny or impose new conditions on any potential merger.
As a Virginian, I am deeply skeptical about whether selling our primary state-regulated utility to an out-of-state company is good for the commonwealth. I have serious questions about what this deal would mean for us. And as governor, I intend to get answers and be a voice for Virginians in the process. That is why I will be taking the legal step of "intervening" in this proposed merger, which means that as governor, I will formally request to be a party to the case.
I know this action is unprecedented by a Virginia governor -- but so, too, is the size of this proposed merger and its potential impact on the commonwealth. Virginians deserve to know that their leaders are laser-focused on ensuring that their needs are part of the SCC review. "If two large corporations stand to benefit financially from this merger, so, too, should the Virginians who pay the bills," said Spanberger. "That is why any potential deal must deliver a more affordable energy bill with sustained, long-term energy cost savings."
By formally intervening in the merger review, Spanberger's administration would gain legal standing to participate directly in the case, request detailed information, raise concerns, and advocate for conditions that benefit people in the state. She says the goal is to push for lower long-term energy costs, protect utility jobs, and ensure any new owner continues investing in reliable, affordable and cleaner power.
As a Virginian, I am deeply skeptical about whether selling our primary state-regulated utility to an out-of-state company is good for the commonwealth. I have serious questions about what this deal would mean for us. And as governor, I intend to get answers and be a voice for Virginians in the process. That is why I will be taking the legal step of "intervening" in this proposed merger, which means that as governor, I will formally request to be a party to the case.
I know this action is unprecedented by a Virginia governor -- but so, too, is the size of this proposed merger and its potential impact on the commonwealth. Virginians deserve to know that their leaders are laser-focused on ensuring that their needs are part of the SCC review. "If two large corporations stand to benefit financially from this merger, so, too, should the Virginians who pay the bills," said Spanberger. "That is why any potential deal must deliver a more affordable energy bill with sustained, long-term energy cost savings."
By formally intervening in the merger review, Spanberger's administration would gain legal standing to participate directly in the case, request detailed information, raise concerns, and advocate for conditions that benefit people in the state. She says the goal is to push for lower long-term energy costs, protect utility jobs, and ensure any new owner continues investing in reliable, affordable and cleaner power.
Does it matter? (Score:3, Insightful)
Re:Does it matter? (Score:4, Insightful)
Where I live (in the US) most of the utilities are government entities. Very similar in power level to a city. Run by Boards elected by the voters in their service area.
It works really well. Rates lower than average, uptime above average, lower percent of fossil fuels, higher rate of investment in utility-owned green energy, etc.
My city has really excellent uptime, and outages get fixed really fast. And slightly higher rates than the city next door. That city has good uptime, outages get fixed in an average time, and has lower rates. All consistent with the expected expectations of the communities based on either political or socioeconomic differences.
And all overseen by the state Public Utility Commission, which effectively prevents graft or other financial corruption. They can raise rates whenever they want, but the PUC will check that the money went where they said, and they'll face the voters if they do anything stupid.
If you attempt a bribe in this context, where everybody involved in a public servant, you can expect a visit from the State Police.
It's much more robust than trying to squeeze blood from a rock with regulation. If a private utility wants to charge more rates and the regulator says no, they can just waste a bunch of money (on paper) and prove they have to. The regulator can't really win in practice.
Re:Does it matter? (Score:4, Insightful)
But, ohhh, booga-booga, that's communism. (Please just ignore Trump seizing the means of production [forbes.com].)
Re: (Score:2)
When an out of state company makes decisions inside a state, the state's power to force outcomes becomes limited. The out of state company can always say "take it or leave it" and threaten to exit the market.
So it's always better to keep companies that do business on the inside of a state, then the state can properly punish failures to uphold required standards.And if the company wants to shut down or exit, the state can attempt to take over the assets and force desired outcomes in various ways.
The NETWORK is a natural monopoly (Score:3)
There's no need for the suppliers to be a monopoly. Different companies can feed electricity into the grid.
Re:NextEra energy (Score:4, Informative)
Mega corp that tried to make it illegal to install solar panels on your home, in Florida. Where the state motto is The Sunshine State.
As a Virginian ... (Score:2)
I'm not keen on tying ourselves with Florida in any way.
(I say this after having spent my freshman year at USF in Tampa way back.)
new idiots lead, old history repeats (Score:4, Interesting)
Re: (Score:2)
Virginia does not own Dominion Energy. They just regulate it (set rates, etc). They would regulate the resulting corporate entity after a merger, whatever that is, just the same as they do now, as is their right to do so as a state.
I suspect this will get shot down, as Virginia does not have the right to control this (it is interstate / federal level for one thing).
Good (Score:3)
My electric company is owned by conglomerates in Australia and Singapore. You think they give a fuck how the infrastructure in the area is doing?
Wait, Dominion's going to Merge? (Score:4, Funny)
Someone better tell Odo.
Re: (Score:2)
Someone better tell Odo.
Laws change depending on who's making them. Cardassians one day, Federation the next... but justice is justice.
Re: Wait, Dominion's going to Merge? (Score:2)
Re: (Score:2)
ACAB includes shapeshifting constables.
Impose STRICT conditions (Score:2)
No rate rises for 15 years
Reliability must remain within 1% of present rates - large fines - 1% of turnover if they aren't.
If the takeover company agrees to these terms - which should only be changeable by a law passed in the Virginia legislature before AND after an election - then agree to accept the takeover ;)
Re: (Score:2)
No rate rises for 15 years? That's insanity. What if I tell the state I'm just going to pay the same property taxes for the next 15 years? Even if all costs some how magically stayed static, inflation in 15 years with very likely eat away 50% of their income.
None of this will matter though. This is Interstate economics, which puts this at the federal level and not the state level.
I guess we'll just hear how this pans out when the time comes. Or we may not.
Enron 2.0 (Score:2)
Dominion isn't the only power company in VA (Score:3)
There are other energy companies in Virginia with Dominion being the largest of the bunch. Dominion itself already operates in multiple other states including North and South Carolina and produces a substantial amount of "carbon free" energy in New England.
I don't think Spamburgler has any real standing to meddle in the deal and is looking for a way to relevance after getting politically shellacked in the courts repeatedly since taking office.