AI Power Demand Fuels Emergence of Mega Utility: Nextera-Dominion Merger Announcement

On May 18, Dominion Energy, Inc. (ticker: D) and NextEra Energy, Inc. (ticker: NEE) executed a definitive agreement for an all-stock merger in the United States. Under the terms, Dominion shareholders will receive 0.8138 shares of NextEra for each Dominion share they hold. Upon closing, NextEra shareholders will own 74.5 percent of the combined company and Dominion shareholders will hold 25.5 percent.

The merged entity will operate under the NextEra Energy name and become the world’s largest regulated electric utility, with more than 80 percent of its assets in regulated operations. It will serve about ten million customer accounts across Florida, Virginia, North Carolina and South Carolina, and manage approximately 1,100 gigawatts of generation assets. The company has set targets of more than 9 percent annual adjusted EPS growth and an 11 percent annual regulated capital growth rate through 2032.

As part of the merger, the combined company will provide rate credits totaling $2.25 billion over two years to Dominion Electric customers in Virginia, North Carolina and South Carolina (approximately KRW 3 trillion). Management expects improved credit metrics and potential upgrades to the credit ratings of both Dominion and its Virginia Power subsidiary. John Ketchum will serve as chairman and CEO of the merged company, while Robert Blue will become president and CEO of the regulated utility division and join the board. Headquarters will be dual-located in Juno Beach, Florida, and Richmond, Virginia. The transaction has received unanimous approval from both boards of directors and is expected to close within 12 to 18 months, subject to shareholder approval, HSR review, FERC and NRC sign-offs, and state regulatory approvals in Virginia, North Carolina and South Carolina. Until closing, Dominion shareholders will also receive a one-time cash payment of about $360 million (roughly KRW 500 billion) in addition to their regular quarterly dividends.

Earlier, on May 1, Dominion reported first-quarter 2026 non-GAAP operating earnings of $0.95 per share on approximately $5 billion in revenue, surpassing market expectations. The company reaffirmed its 2026 full-year non-GAAP operating earnings guidance of $3.45–3.69 per share and its long-term growth target of 5–7 percent. Key growth drivers include progress on the Coastal Virginia Offshore Wind project and rising demand from data centers. Dominion also confirmed that it will maintain its current dividend policy.

Dominion is a major regulated utility serving power and gas customers in Virginia, North Carolina and South Carolina. The company has been steadily expanding capital investments in transmission and distribution networks, gas infrastructure and offshore wind. With U.S. electricity demand accelerating due to AI data centers, electric vehicles and manufacturing reshoring, the merger with NextEra—whose portfolio spans large-scale renewables, nuclear and gas-fired generation—is drawing industry attention as a strategic move to broaden the regulated base and strengthen long-term power infrastructure investment capacity.