SOUTHEASTERN UNITED STATES — NextEra Energy announced plans to acquire Dominion Energy in a deal valued at roughly $67 billion. The combined company would serve customers across Virginia, North Carolina, South Carolina and Florida.

The merger will require both federal and state approvals, including in Virginia, North Carolina and South Carolina. NextEra expects the review process to take between 12 and 18 months to complete.

As part of the proposal, NextEra is offering Dominion customers in Virginia, North Carolina and South Carolina $2.25 billion in bill credits over two years. NextEra CEO John Ketchum said the transaction would translate into more affordable electricity for customers in the long run.

In a company email, NextEra said that since acquiring Gulf Power in Northwest Florida in 2019, those customers are now paying 19% less for electricity after adjusting for inflation. NextEra and Dominion currently operate in different states and are subject to different rates and regulations.

Shelby Green, research and communications manager for the Southeast region at the Energy and Policy Institute, raised objections to the deal. "Families and small businesses can expect to pay more in their utility bill and that's a major concern if this acquisition goes through," Green said.

According to the Energy Information Administration, residential electricity rates rose 7.4% in February compared with a year earlier. In Virginia, electricity rates grew 12.2% year-over-year in February.

Electricity demand has risen as AI data centers expand. One projection estimates data centers will comprise 16% of all U.S. power consumed in 2030, while a more conservative estimate projects data centers will use less than 7% of U.S. power by that year. NextEra has struck deals with Google and Meta to provide electricity to their data centers.

Natural disasters that damage the grid and the inflated price of equipment needed to repair power lines drive up costs for customers.