Dominion Energy

Dominion Energy is a regulated utility company based in Richmond, Virginia. It supplies electricity to 3.6 million homes and businesses in Virginia, North Carolina and South Carolina, and natural gas to 500,000 customers in South Carolina. Its largest business is Dominion Energy Virginia, which serves the large group of data centers in Loudoun County.

It is building the 2.6 gigawatt Coastal Virginia Offshore Wind (CVOW) project, with an estimated total cost of about $11.7 billion and the last turbines expected to be installed by the end of 2027. On May 15, 2026, Dominion agreed to merge into NextEra Energy. Each Dominion share will receive 0.8138 NextEra shares plus a share of a $360 million cash payment, and Dominion shareholders will own about 25.5% of the combined company.

The market prices Dominion as a fixed part of NextEra Energy plus deal risk. Since the merger agreement of May 2026, each Dominion share is worth 0.8138 NextEra shares and a small cash amount at closing, so the stock moves with NextEra's share price. The price also includes a discount for the risk that regulators delay the deal or set conditions. The merger needs approvals from FERC, the Nuclear Regulatory Commission and the utility commissions of Virginia, North Carolina and South Carolina, without a burdensome condition.

In September 2026, the companies made their offer to Virginia larger, with four years of residential bill credits instead of two and other commitments paid by shareholders. In October 2026, the staff of the Virginia State Corporation Commission (SCC) recommended that the SCC reject the merger unless the companies accept 57 conditions, and Virginia's governor asked for a six-year freeze of residential base rates. The analysts' fair value is for Dominion on its own, so the gap will probably not close while the deal is pending. It can close only in two ways.

NextEra's share price can rise, which lifts the value of the exchange ratio. Or the merger can fail, and the market must then value Dominion on its own at a higher price, which is not certain. The companies expect the deal to close 12 to 18 months after May 2026, so between about May and November 2027. The Q3 2026 report on October 30, 2026, the SCC hearing from November 17, 2026, the SCC decision, which state law requires by January 11, 2027, and the decisions of the other commissions are the dated tests.

The main reason the gap may not close is that the price stays tied to NextEra until the deal closes or fails.

1. Oct 30, 2026Pending

   Q3 2026 earnings and merger approvalsOperating earnings in line with the 2026 guidance and progress on the state merger approvals pass; lower guidance or a new delay in the approval schedule fails.
2. Jan 11, 2027 · est.Pending

   Virginia SCC decision on the mergerApproval with conditions that the companies accept passes; a rejection, or conditions that the companies refuse, fails.
3. 2027 · est.Pending

   Merger closes with NextEraApproval by the Virginia, North Carolina and South Carolina commissions without a burdensome condition, and a close between May and November 2027, pass; a rejection, a new large condition or a delay past 2027 fails.

Every passed and failed checkpoint across all picks

• October 19, 2026The staff of the Virginia State Corporation Commission filed testimony that the merger, as proposed, fails the Utility Transfers Act. Staff recommended rejection unless the companies accept 57 binding conditions, 25 of which the companies already proposed. The new conditions include a bankruptcy-remote entity to ring-fence Dominion Energy Virginia and four board members not related to NextEra. Governor Spanberger also asked for rejection unless the companies meet 10 commitments, including a six-year freeze of residential base rates. The companies said they will answer through the SCC process. The evidentiary hearing starts on November 17, 2026, and the SCC must decide by January 11, 2027.
• September 14, 2026NextEra Energy and Dominion announced a larger Virginia benefits package for the merger. It doubles residential bill credits from two years to four years, adds $100 million to the EnergyShare bill assistance program through 2038 and promises 1,000 new direct jobs in Virginia. All new commitments need approval from the Virginia State Corporation Commission.
• September 3, 2026Dominion shareholders approved the merger with NextEra Energy. About 671 million votes were for the merger and about 8.6 million were against it.

• The merger needs approvals from FERC, the Nuclear Regulatory Commission and three state utility commissions. A commission can delay the deal or set conditions, such as more bill credits, that reduce its value. The companies already increased the Virginia package in September 2026. In October 2026, the SCC staff recommended rejection unless the companies accept 57 conditions, and the governor asked for a six-year residential rate freeze.
• While the deal is pending, the stock moves with NextEra's share price. A fall in NextEra shares lowers the value of each Dominion share.
• If the merger fails, Dominion can suffer rating actions, a lower stock price and the costs of the deal. Dominion said these risks in its filings.
• The CVOW offshore wind project has an estimated cost of about $11.7 billion, which includes new network upgrade costs and tariffs. More delays or cost increases can reduce returns or need regulatory approval to recover.

Dominion funds its large building program with senior notes, junior subordinated notes, commercial paper and equity. At June 30, 2026, total debt was $53.4 billion. Read more