America’s largest electric utility NextEra Energy announced on May 18th its plans to buy the Virginia-based utility Dominion Energy in a $67 billion deal. If federal and state regulators approve the acquisition, NextEra’s history indicates that 3.6 million customers in Virginia and the Carolinas could pay even more for electricity in the long-term as NextEra seeks to increase profit margins it can wring from Dominion’s current customer base, and positions itself to capitalize off the unprecedented demand coming from data centers.

NextEra contends the deal will unlock the efficiencies needed to meet overwhelming data center demand while “delivering low bills,” but lawmakers and advocates are skeptical.

Virginia lawmakers representing customers in Loudoun County, home to the highest concentration of data centers in the world, issued cautions regarding the deal and doubted that “a Florida company with a long track record of rate increases is the right utility partner for Virginia.”

Clean Virginia, an advocacy organization established to counter Dominion’s political influence, echoed calls for heightened scrutiny of the acquisition given NextEra’s “deeply troubling track record” in Florida — a state where NextEra’s subsidiary utility Florida Power & Light (FPL) is alleged to have:

• Played a central role in scandals to engineer election results by running “ghost candidates” to siphon votes away from a legislator who criticized the utility;
• Conducted surveillance of journalists critical of the utility;
• Offered a job at an invented organization to a local politician to try to pave the way toward the takeover of a municipal utility;
• Controlled the operations of political news outlets to secure favorable coverage; and
• Co-opted officials of civil rights organizations, including the Florida NAACP.

Neither FPL nor NextEra has been criminally charged in those matters, but FPL’s CEO abruptly resigned after documents showed his direct involvement orchestrating several of the schemes, and the company recently proposed to settle a lawsuit related to many of those issues.

If shareholders and federal and state regulators approve the deal, NextEra will bring the profit-maximizing playbook it honed in Florida to Virginia and the Carolinas — three states already grappling with their own affordability pressures and the outsized political influence of corporate utilities.

FPL has raised rates, disconnected customers while deriving more profit from customers’ bills than any other utility

High bills have priced millions of American families and small businesses out of electricity. Virginia already ranks sixth in the state for electricity disconnections due to non-payment. NextEra has promised the acquisition would not “drive up bills for the general body of customers” and has pledged $2.25 billion worth of bill credits to its new customers after the deal closes, disbursed over 24 months. Those credits are temporary, however, and could be quickly swamped by rate increases. NextEra’s track record in Florida suggests those might come quickly. 

NextEra’s subsidiary FPL shut off over nearly 1.3 million homes (about 3 million Floridians) in 2024 because those customers couldn’t afford to pay their bills. When Florida legislators filed a bill to ban shutoffs during life-threatening weather, FPL registered to lobby against it, as well as another piece of legislation that would have capped utility profits and required regulators to weigh affordability when setting rates.

FPL collected $18.262 billion last year in revenue and pocketed 27.4 percent as corporate profit — that profit portion of the bills that FPL customers pay was higher than any of the 78 other electric utilities surveyed by the Energy and Policy Institute (EPI). Among these utilities, the average was approximately 14.6 percent. In 2024, FPL also pocketed 27 percent of its revenue as profit, leading all but two investor-owned utilities by that metric in that year. NextEra’s CEO John Ketchum consistently ranks among the highest-paid utility executives in America.

FPL wields its political influence to advance its interests

NextEra often boasts of its operational efficiency as the key to its profitability, but it also credits “Florida’s long-standing constructive and stable regulatory environment” shaped by the Governor-appointed Florida Public Service Commission (PSC), which has granted the utility some of the highest rate increases and allowed profit margins in the country.

For years, FPL has strategically concentrated campaign contributions on key politicians with direct control over who sits on the PSC. The President of the Florida Senate and Speaker of the Florida House appoint legislators to the PSC Nominating Council, which vets candidates and delivers a shortlist to the Governor for final appointment. From 2010 to 2025, FPL and its affiliated entities spent over $60.8 million on state-level campaign contributions, including $500,000 to a political committee controlled by U.S. Congressman Byron Donalds, the current Republican frontrunner for Florida Governor.

PSC Commissioners can’t accept campaign contributions, but they’re not immune from political influence. The last time the PSC denied FPL a base rate increase was in 2010, when the utility accused the PSC of creating a “deteriorating regulatory and business environment.” Within a year, legislators ejected four of the five Commissioners who voted against the rate hike. One was former PSC Chair Nancy Argenziano, who blamed FPL for the loss of her job. Argenziano had a reputation for standing up to the industry and was viewed as a consumer advocate, despite facing pressure early in her term “from the legislature to do as they say.” 

Argenziano and former Commissioner Nathan Skop both applied to serve for another term, but the PSC Nominating Council did not recommend reappointment. Skop said the Council’s decision “shows the extent to which the Legislature is influenced by the companies we regulate” and “clearly smells of retaliation.”
The PSC has unanimously approved every one of FPL’s requests to raise rates since — even when Commissioners admitted reservations. Today, Floridians pay some of the highest utility bills in the country and Florida ranks second in electricity disconnections.

FPL profits have soared in recent years as rates have steadily increased, with the most recent hike favoring data centers

FPL customers have endured annual rate increases since 2022, which will continue through the end of the decade due to FPL’s $6.9 billion rate hike — likely the largest in U.S. history. By the time this four-year rate hike ends, customers could be paying $600 more annually for electricity than they were before it began.

The Office of Public Counsel (OPC), which represents Florida utility customers, pushed for a two-year rate freeze and lower bills. The PSC rejected the proposal though, and approved raising FPL’s return on equity (ROE) to 10.95%, well above the industry standard of 9.68%. ROE describes the return shareholders are allowed to earn on the equity they invest in the utility’s capital expenditures. It’s a key driver of both utility profits and customers’ bills – even small changes to the ROE can have significant impacts on customers’ bills over time.

Aside from historic rate increases, FPL’s settlement included major discounts for data centers. When FPL first filed its rate hike plan, it planned to create a new tariff and charge data centers65 percent more for electricity. But after negotiations, FPL settled on keeping the existing tariff open to data centers with a load smaller than 50 MW — cutting 50 percent off their base bills.  Data centers also won a lower “take-or-pay” requirement, dropping the 90 percent requirement FPL originally proposed to 70 percent. Take-or-pay provisions require large customers like data centers to pay for the infrastructure built to serve them, even if they don’t use it — without that protection, everyday customers would foot the bill in the event that less data center demand materializes.

The OPC has since filed a notice of appeal with the Florida Supreme Court challenging the rate hike.

NextEra has secured Florida rate increases, profits through political machine

Beyond the tens of millions that FPL has contributed to state politicians to secure its favorable PSC outcomes, it and NextEra have also often relied on secretive forms of spending. 

Most infamously, FPL was at the center of the “ghost candidate” scandal in Florida, with operatives paid by FPL allegedly having recruited and backed non-competitive independent candidates with the same last names as Democratic legislative candidates whom the utility wanted to defeat. 

The scheme allegedly sought to siphon votes from, among others, then-state State Senator José Javier Rodríguez, who ended up losing his re-election bid by 32 votes to now-Sen. Ileana Garcia. The “ghost” candidate, Alex Rodriguez, received 6,382 votes. José Javier Rodríguez had been one of the few Florida politicians to challenge NextEra’s grip on state utility regulators; he’s now running for Attorney General.

FPL’s CEO, Eric Silagy, had written to the FPL-paid consultants about Rodriguez, “I want you to make his life a living hell … seriously.” 

That scandal, and a host of others, were revealed by litigation stemming from a conflict that led to litigation between former employees at a political consulting firm, Matrix LLC, which was allegedly being paid by FPL.

Other FPL scandals exposed by the Matrix litigation included revelations that FPL and Silagy turned to Matrix for help as part of another NextEra utility acquisition effort – this one an attempt to acquire the Jacksonville Electric Authority (JEA). In 2019, Matrix orchestrated payments to an organization as an attempt to lure Jacksonville City Council member Garrett Dennis with a job offer to travel the country to advocate for the decriminalization of marijuana, an issue he was passionate about. The job included a $180,000 salary and a $50,000 travel budget. Dennis, who was staunchly against the privatization of JEA, was told he’d have to resign from the City Council to take the job. (Dennis declined to pursue the offer. Matrix said any such offer would have been the unauthorized action of “rogue Matrix employees,” while FPL said it rejected a proposal from a Matrix official to offer Dennis a job.)

Matrix also worked to surveil at least one journalist, Nate Monroe, who wrote about the attempted JEA acquisition. The consultants working for FPL obtained a report containing Monroe’s Social Security number and other sensitive personal information. The information, including details of Monroe’s movements during a vacation, were provided to FPL. 

FPL also allegedly worked through Matrix to seek more control over the Florida news website The Capitolist, which was portraying itself as an independent outlet. Reporting detailed how FPL funneled money to the outlet through a network of shell companies backed by the utility. The articles were reviewed by the consultants, and FPL executives used the outlet to attack politicians. 

While FPL consistently denied the various allegations, leaked documents showed its former CEO, Eric Silagy, directly involved in many of the efforts, and Silagy resigned suddenly in 2023, resulting in a stock drop. 

NextEra reported to the SEC in its latest quarterly report last month that it would pay $150 million to settle all claims in a shareholder securities class action lawsuit alleging that utility executives made false or misleading statements about FPL’s financial and political activities. In November, the 11th U.S. Circuit Court of Appeals overturned a decision by the U.S. District Judge Aileen Cannon that previously dismissed the potential class-action lawsuit filed by investors. 

Investigative reporting has revealed other ways that FPL keeps tight control over political operations in Florida. 

The New York Times revealed how FPL was a significant contributor to the Florida NAACP between 2013 and 2017 – making donations that totaled at least $225,000. Adora Nweze, the president of the state conference, used the utility talking points in articles, and comments and testimony to regulators. One example, as noted by the Times, included Nweze’s op-ed opposing a solar energy program before invoicing FPL for $50,000 a month later. Nweze told the outlet years later, “I felt that if we wanted the money, we had to do it.” 

FPL’s engagement with civil rights leaders and organizations to find support for its agenda didn’t just include the state NAACP conference. Entities controlled by Matrix provided Reverend Deves Toon, a national field director for the National Action Network, with about $170,000. Rev. Toon started “Fix JEA Now,” which criticized the municipal utility and supported the sale to FPL. 
FPL also operates an exclusive, invite-only bar, hidden behind a nondescript façade, in Tallahassee for lawmakers and lobbyists, where its executives have the opportunity to entertain and mingle with powerful state officials.

NextEra has led industry in 527 PAC giving, and written large checks for Trump’s ballroom, inaugurations

Within the utility sector, NextEra and FPL are the largest contributor to the collection of state-focused sets of political organizations known as “527s,” which are groups that can raise and spend unlimited funds to influence elections. Dominion Energy is the second-largest. The Wall Street Journal detailed how corporations can “funnel funds” to outside groups when they are limited in giving directly to campaigns, specifically noting FPL’s contribution to the Republican Governors Association (RGA) at a time when it needed regulatory support from Gov. Rick Scott. These outside groups, specifically the RGA, Republican Attorneys General Association (RAGA), Republican State Leadership Committee (RSLC), Democratic Governors Association (DGA), Democratic Attorneys General Association (DAGA), and Democratic Legislative Campaign Committee (DLCC), all serve as central hubs for influence over state politicians. 

On the federal side, NextEra and FPL are together one of the largest spenders on federal lobbying within the utility industry. And while the companies face limitations in federal campaign contributions due to Federal Election Commission rules, they are allowed to write large checks to other political causes that benefit federal politicians – particularly President Trump. 

NextEra is among the list of three dozen companies, individuals, and foundations who are helping Trump finance the construction of the ballroom to replace the East Wing. Donors were invited to a White House dinner last fall. Trump has not disclosed the specific amounts from each donor. The Citizens for Responsibility and Ethics in Washington argue that contributors should disclose the donations as part of their regulator lobbying disclosure filings; NextEra has not done so.  

NextEra was also one of the largest donors to the Trump 2025 Inauguration committee – giving $1 million. The utility was among just a few within the utility industry that donated. It gave $250,000 to the 2017 Trump inauguration committee. 

Trump Administration-appointed federal regulators at the Federal Energy Regulatory Commission (FERC), Federal Trade Commission and Department of Justice, and the Nuclear Regulatory Commission (NRC) must approve the NextEra-Dominion merger in order for the deal to proceed.

Previous NextEra acquisitions have failed under state regulatory scrutiny

State regulators in Virginia, North Carolina, and South Carolina must also approve the deal, but that’s far from guaranteed, as NextEra’s history shows. 

Over the past few years, NextEra has tried to acquire utilities in Texas, South Carolina, and Hawaii, but failed due to regulators’ skepticism.

• In Texas, regulators blocked the acquisition due to concern that it “would subject Oncor ratepayers to new and potentially substantial risks.”
• In South Carolina, state lawmakers passed legislation to obtain documents related to NextEra’s lobbying efforts and campaign contributions when the utility put in a bid to buy the state-owned Santee Cooper in 2021; NextEra withdrew its bid afterward.
• In Hawaii, regulators rejected the bid because NextEra failed to prove that the acquisition was in the public interest and would result in “adequate benefits for residents and a commitment to Hawaii’s clean energy goals.”

NextEra also tried to acquire the Missouri-based utility Evergy and the North Carolina-based utility giant Duke Energy, but both acquisitions fizzled. Evergy turned down NextEra’s offer due to undervaluation.
The last time NextEra successfully absorbed a regulated utility was in 2019, when it acquired Gulf Power in Northwest Florida. The company promised “low bills,” however many former Gulf Power customers say the opposite happened. One said she had to quit her job as a teacher because she could no longer afford her electricity bills. Another said his bill nearly doubled after the acquisition, from $209 to $383. Panhandle elected officials even wrote letters noting the volume of families struggling to afford electricity under FPL.

NextEra’s bet on methane gas to power data centers overshadows its former clean energy vision

While NextEra is known for its sizable clean energy portfolio, the company erased its vision of achieving net-zero emissions by 2045, a provision that the utility once categorized as a goal before recasting it as an “aspiration” in 2024. This retrenchment could impact how NextEra plans to comply with Virginia’s Clean Energy Economy Act (VCEA), which currently requires Dominion to deliver electricity from 100% renewable sources by 2045.

And while NextEra has leaned into its reputation as a clean energy leader when convenient, and past NextEra executives have even been dismissive of the future of natural gas development, its track record has often belied those comments. 

FPL powers 65% of its grid in Florida with methane or natural gas today; it says it expects that percentage of the grid mix to decrease slightly over the next decade, but that its overall gas generation will increase 8% as demand grows, according to plans it files with regulators. 

NextEra is also building large amounts of natural gas in other parts of the country, including 10 GW in Pennsylvania and Texas it announced in March.

And while FPL and NextEra are both developing large amounts of solar and battery resources, the company has a long and sordid history of viciously fighting any clean energy developments that threaten its own assets or its monopoly control of the grid.  

In Florida, FPL spent over $8 million in 2016 backing “Amendment 1,” a deceptive Florida ballot measure that would have paved the way for the utility to add fees to customers’ bills who had installed rooftop solar, and to cut payments for the energy they produced. FPL’s spending went for naught when it failed; an audio recording surfaced that appeared to confirm that the amendment was written to deliberately mislead voters.

The next year, the utility ghostwrote legislation designed to achieve a similar rooftop solar-throttling effect; that effort failed after the company’s role in drafting the bill, and coincident contributions to its sponsor, were exposed. That attack on rooftop solar, and others, were accompanied by anti-solar propaganda efforts from front groups, some with ties to FPL, sometimes targeting Florida seniors. 

Outside of Florida, NextEra secretly spent $20 million in 2021 on a political campaign to block a 145-mile transmission line that would have brought carbon-free hydropower electricity from Quebec to New England, making it by far the largest funder of “Mainers for Local Power,” the group that fought the line. That spending was likely motivated by NextEra’s ownership of nuclear, oil- and gas-burning plants in New England. NextEra also refused to fund upgrades to circuit breakers at its nuclear plant that were necessary for the transmission line, prompting a FERC complaint.

Acquisition Process

NextEra expects the acquisition to close in 12 to 18 months, subject to customary closing conditions and approvals by the shareholders of NextEra Energy and Dominion Energy, the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, approval by the Federal Energy Regulatory Commission under Section 203 of the Federal Power Act and approval by the Nuclear Regulatory Commission.

The companies will also file for review and approval from the Virginia State Corporation Commission, the North Carolina Utilities Commission and the Public Service Commission of South Carolina.