If the merger between Dominion Energy and NextEra Energy comes to fruition, Virginia could gain thousands of jobs, according to an economic analysis study conducted for the Virginia Chamber of Commerce.
The report was created by Mangum Economics, a Northern Virginia-based consulting firm that assesses industries and their overall economic impacts.
According to the study, not only is the merger anticipated to create more jobs, it could generate $2.27 billion in new economic activity and $1.87 billion in bill credits for consumers in the commonwealth.
On the workforce development side, $100 million over five years would go to support training and apprenticeships, support colleges, technical schools and hands-on training.
And a $100 million expansion of the EnergyShare financial assistance program would also be put into place, according to the study, which was released Thursday.
Brad N. Hall, president and CEO of the Virginia Chamber, said in a news release that Virginia’s future economic success depends on the ability to provide reliable and affordable energy to households, businesses, manufacturers and emerging industries.
“Reaching that goal requires strategic investments in critical infrastructure systems to boost energy generation capacity and modernize the transmission grid to meet growing demand,” Hall said.
The new analysis verifies that the proposed merger will provide benefits for Virginians via new investment, job creation, workforce development support and enhanced energy reliability to meet the growing demands and help ensure Virginia remains economically competitive for decades to come, Hall said.
The chamber said the analysis was an independent study, and Mangum noted in the report that it was commissioned by the Chamber.
Kate Asquith, managing director for Clean Virginia — a nonprofit aimed to advance clean government and clean energy in the state that has been critical of the merger — questioned the report. She said in an email it is disingenuous to call the study independent without disclosing Dominion’s extensive monetary support to the Chamber, and noted that a Dominion executive sits on the Chamber’s executive committee.
“More fundamentally, the study fails to address the significant risks posed by the proposed acquisition,” she said. “The takeover would expose Virginia ratepayers to NextEra’s risky unregulated businesses, while ceding control of Virginia’s largest electric utility to a company that has a track record of extracting substantial profits from customers and one of the nation’s highest electricity disconnection rates.”
Virginia families should not be left holding the bag for a deal designed to benefit corporate shareholders, Asquith said.
The Chamber study goes on to say that with plans to construct a tower in Richmond for NextEra Energy’s headquarters, more than 9,300 positions could be created to handle the peak of its construction.
The study also shows a projected $35 million in charitable giving over five years — helping to boost the economy and support local charities.
Overall, the ongoing annual employment impact could reach close to 29,000 jobs — both new (2,048 for NextEra Energy and supplier jobs) and retained (26,803 Dominion Energy’s total retained employment) — in the state, the report states.
In Richmond Thursday, faith leaders and community advocates from across the commonwealth rallied outside the State Corporation Commission’s to express their opposition to the merger.
They called on regulators to reject the deal that, they say, prioritizes the profit margins “of one of the wealthiest corporations on earth” over the needs of working families, small businesses and communities in the state, according to a news release.
Gov. Abigail Spanberger has also been critical of the original contours of the deal.
“From the day NextEra first filed its merger application, Governor Spanberger has been clear that she would push aggressively for meaningful, quantifiable, and enforceable affordability, employment, and clean energy commitments,” a spokesperson said. “As the SCC conducts its review, the Governor’s intervening testimony clearly defines what she deems necessary to protect Virginia’s ratepayers, jobs, and clean energy future.”
Sandra J. Pennecke, 757-652-5836, sandra.pennecke@pilotonline.com
Source: www.pilotonline.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
