NextEra Energy said Monday it will buy Dominion Energy in a deal valued at more than $120 billion including debt, creating the nation’s largest utility. The transaction would merge operations that serve roughly 10 million customers across Florida, Virginia, the Carolinas and other southeastern states, adding Dominion’s nuclear plants, renewables, transmission lines and pipelines that stretch from Maine to Hawaii.

Rising residential electricity rates—up about 34 percent since 2020—have intensified scrutiny of the merger, especially as data centers in Northern Virginia’s “Data Center Alley” demand ever‑greater power. NextEra pledged $2.25 billion in bill credits, roughly $550 per customer, for Dominion’s four million Virginia, North Carolina and South Carolina customers over two years. Critics argue the credits are a short‑term appeasement that won’t curb long‑term price pressure.

Analysts such as Marissa Gillett of the American Economic Liberties Project warn the combined entity could wield outsized market and political influence, potentially seeking regulator‑approved rate hikes. The deal also signals a broader wave of utility consolidation driven by AI‑related data‑center growth and electrification of transport and heating. Regulators in Virginia and other states will decide whether the merger proceeds under conditions that protect consumers.