Electrical utility megamerger is all about the data centers

"The proposal, announced Monday morning and contingent on state and federal regulatory approval, would result in a company that leads in nearly every aspect of the US power and utility industry, including overall electricity generation, natural gas generation, and renewables. The $67 billion deal combines NextEra's size and reach with Dominion's positioning as the local utility for the world's largest concentration of data centers in northern Virginia. But the results are likely bad for consumers and the environment, creating a company with enormous financial and political strength that will be difficult to effectively regulate, according to consumer advocates and analysts."

""Mergers are not about consumers; they're about shareholders," said Ari Peskoe, director of the Electricity Law Initiative at Harvard Law School. "For the Dominion shareholders, they are selling their shares at a premium. The executives are getting massive payouts for facilitating this, assuming it all goes through, and obviously NextEra believes the transaction is going to add value to the company. Ratepayers are all an afterthought.""

""We view the transaction as allowing NextEra to accelerate its data center ambitions, which had trailed those of its regulated peers, by using Dominion's expertise and relationships to expedite NextEra's data center hub plans," he said in a note to clients."

A proposed $67 billion merger would combine NextEra Energy and Dominion, creating a very large utility company with major influence across electricity generation, natural gas generation, and renewables. The deal is contingent on state and federal regulatory approval and would connect NextEra’s scale with Dominion’s role as the local utility serving northern Virginia’s dense data center market. Consumer advocates and analysts expect negative outcomes for consumers and the environment, citing the company’s financial and political strength and the difficulty of effective regulation. The merger is described as financially beneficial to shareholders, with executives receiving large payouts, while ratepayers are treated as secondary. Supporters say the transaction would help NextEra accelerate data center plans using Dominion’s expertise and relationships.

Read at Ars Technica