Virginia Proposes 5-Year Supplier Program With Up to $1 Billion in Annual Procurement

en.Wedoany.com Reported - On September 14, NextEra Energy and Dominion Energy announced that, as part of the supporting arrangements for their proposed merger transaction, they plan to establish a five-year supplier program in the U.S. state of Virginia, with annual procurement of up to $1 billion and a cumulative five-year cap of up to $5 billion. The program is part of the newly added Virginia benefits package for the merger transaction, and its implementation is contingent on the merger receiving the relevant regulatory approvals and closing.

The supplier program was proposed alongside a $100 million workforce development fund. The two companies also plan to maintain Dominion Energy's existing Virginia workforce for five years, add 1,000 direct jobs, and build a joint corporate headquarters for the combined company in Richmond funded by shareholder capital. The new positions cover areas including renewable energy development and supply chain management, battery storage operations, nuclear energy and small modular reactors, enterprise technology, and cybersecurity.

The supplier program is not an already-launched annual tender or individual procurement contract. The currently public proposal only specifies a procurement framework of "up to $1 billion per year for five years," and has not yet disclosed the specific annual procurement amounts, the allocation among equipment and engineering categories, supplier qualification ratios, or the timing of phased tenders. Dominion Energy's existing supply chain system uses the Ariba network for potential suppliers to pre-register and publishes some engineering and equipment procurement opportunities; completing registration itself does not constitute a procurement contract or service commitment.

The program is directly tied to the merger transaction the two companies are pursuing. NextEra Energy and Dominion Energy signed an all-stock merger agreement on May 18 and submitted approval applications to the Virginia State Corporation Commission and other regulators on July 15. Upon completion of the transaction, existing NextEra Energy shareholders are expected to hold approximately 74.5% of the combined company, while Dominion Energy shareholders will hold approximately 25.5%; the combined company plans to serve approximately 10 million utility customer accounts and own approximately 110 gigawatts of generating assets.

The Virginia State Corporation Commission has docketed the transaction for review under Case No. PUR-2026-00112. The regulatory timetable shows that the deadline for submitting public written comments is November 9, and evidentiary hearings are scheduled to begin on November 17. The two companies expect the merger transaction to be completed in the second half of 2027, subject to approval by state and federal regulators and both companies' shareholders.