NextEra Energy and Dominion Energy, the developer of the biggest US offshore wind farm, have entered into a definitive agreement to combine in an all-stock transaction that would create what the companies describe as the world’s largest regulated electric utility business.
Under the agreement, Dominion Energy shareholders will receive 0.8138 shares of NextEra Energy for each Dominion share held. Following completion of the transaction, NextEra Energy shareholders are expected to own approximately 74.5 per cent of the combined company, with Dominion shareholders holding the remaining 25.5 per cent.
The combined company will operate under the NextEra Energy name and serve approximately 10 million customer accounts across Florida, Virginia, North Carolina and South Carolina, according to the companies.
The transaction has been unanimously approved by the boards of both companies and is expected to close within twelve to 18 months, subject to shareholder and regulatory approvals.
The companies said the combined business would own around 110 GW of generation capacity and be more than 80 per cent regulated.
Dominion Energy owns the 12 MW Coastal Virginia Offshore Wind (CVOW) pilot and is currently building the 2.6 GW CVOW commercial project, set to become the largest offshore wind farm in the US.
Offshore construction at the project site off Virginia Beach started in 2024 and is now at an advanced stage. The first wind turbine was installed in January this year, and CVOW produced first power in March.
Once fully commissioned, which is expected in early 2027, the 2.6 GW offshore wind farm will be able to generate enough electricity to power over 900,000 homes once fully operational, according to the developer.