Unlocking Hampton Roads: The Power Edition

In This Edition

Feature | Dominion and NextEra's Proposed $68 Billion Merger: A Virginia Regulatory Overview

Here & Now | Defense Maritime Solutions Expands Chesapeake Operations with $30 Million Investment

Word in the ‘Roads | Digest of significant press releases and investment announcements from over 40 of the region’s economic development authorities, alliances, chambers, incubators, and local governments

WilSav Business Solutions Series | Virginia's New Cannabis Marketplace: Business and Regulatory Considerations

Where’s WilSav | Catch up with attorneys on our Economic Development Task Force at the region’s upcoming conferences and conventions

Regional RFPs | Opportunities to buy, build, and service regional municipalities

Dominion and NextEra's Proposed $68 Billion Merger: A Virginia Regulatory Overview

On May 18, 2026, Virginia’s biggest energy supplier, Dominion Energy, announced a proposed $68 billion merger with energy giant NextEra Energy, kicking off a deal that would create the world’s largest regulated electric utility. The merger has drawn skepticism and vast media attention as the proposed deal sits at the critical intersection of the Commonwealth’s most pressing issues: energy security, grid resiliency, ratepayer affordability, and – controversially – the growing data center industry.

Merger Terms

Dominion and NextEra agreed to a series of pre- and post-merger commitments to benefit consumers, employees, and shareholders, which are summarized below. (See the State Corporation Commission filing for the full list of commitments.)

Customers:

• $2,250,000,000 provided to customers across Dominion’s service territory in the form of rate credits, estimated to average about $10 per month in a 24-month rate cycle.
• Customers held harmless from the expenses of the merger.

Charitable Giving:

• $10,000,000 of additional charitable giving, bringing Dominion’s charitable total to $23,000,000.

Operations:

• Dominion-NextEra to utilize a dual corporate headquarter structure, maintaining Dominion’s Richmond, Virginia headquarters and NextEra’s Juno Beach, Florida headquarters.
• Dominion Energy to exist as a separate legal entity post-merger.
• NextEra to maintain Dominion’s “commitment to customer service quality at no less than current levels.”
• Dominion and NextEra to keep separate books and records.
• Virginia SCC will continue to exercise regulatory authority over Dominion Energy.

Employee Protections:

• 18-month job protection for Dominion employees.
• 24-month compensation and benefit protection “that are no less favorable in aggregate than those in effect immediately prior to the closing of the Merger.”

Regulatory Proceedings and Timelines

The deal must be approved by regulatory bodies in each state of the affected service areas – North Carolina, South Carolina, and Virginia – and faces federal oversight from the Federal Energy Regulatory Commission (FERC) and the Nuclear Regulatory Commission (NRC).

Pursuant to Code § 56-88.1, Virginia’s SCC traditionally completes such reviews and approvals within a 60-day timeframe. However, given the magnitude of the proposed merger, the Commission has opted to extend the review timeline by an additional 120 days. The review includes evidentiary hearings, electronic public comment, and telephonic public testimony opportunities.

Due to the nature of this merger’s potential impact on ratepayers, several state lawmakers and legislators have advocated for a further extension, which would need to be accomplished via legislation during the General Assembly session. This would prove difficult, however, since the 180-day application review ends on January 11, 2027 – two days before the General Assembly convenes on January 13, 2027.

The timeline of the proceedings is as follows:

• September 11, 2026: Deadline to File Notice of Participation as a Respondent
• October 19, 2026: Deadline to File Testimony and Exhibits for Respondents to Establish Case; Staff to Investigate Joint Petition and File Testimony and Exhibits
• November 2, 2026: Petitioners to File Rebuttal Testimony and Exhibits with Clerk of the Commission; Deadline to Provide Contact Information to Offer Public Testimony
• November 5, 2026 (8:30AM-11:00AM); November 9, 2026 (4:00PM - 7:00PM); November 10, 2026 (4:00PM - 7:00PM): Hearings for the Receipt of Testimony from Public Witnesses
• November 9, 2026: Deadline to Submit Written Public Comments
• November 17, 2026: Evidentiary Portion of the Hearing on the Joint Petition
• January 11, 2027: Anticipated Issuance of SCC’s Final Order

Standard of Review

Many of the arguments in opposition of the merger center around the previously rejected merger proposals in Texas and Hawaii, where NextEra attempted similar acquisitions. These criticisms, however, neglect differing standards of review.

Virginia’s SCC uses a minimum adequate service model, colloquially known as a “do-no-harm” standard. The Code of Virginia § 56-90 simply requires the SCC to be “satisfied that adequate service to the public at just and reasonable rates will not be impaired or jeopardized by granting the prayer of the petition.”

In Hawaii and Texas, however, regulatory bodies responsible for the oversight of such mergers are code-bound to determine whether the proposal is beneficial to the public or, in other words, demonstrates “affirmative benefit”. The proposals in both states failed to meet the “affirmative benefit” standard, but it remains to be seen whether the proposals would have passed under the less stringent “do-no-harm standard.” This distinction may be the linchpin in this merger.

Willcox Savage’s government affairs team – Willcox Savage Consulting – is tracking the merger closely. For further questions or information, please reach out to us at plyons@wilsavconsulting.com.

Defense Maritime Solutions Expands Chesapeake Operations with $30 Million Investment

Defense Maritime Solutions (DMS), a Chesapeake-based manufacturer and supplier of shipboard energy and propulsion systems, has announced plans to invest more than $30 million to expand its local operations, creating 32 new jobs in the region. Governor Abigail Spanberger highlighted the project as a significant win for both Virginia's economy and national security, noting that the expansion will strengthen the domestic defense supply chain while reinforcing Hampton Roads' position as a premier defense and maritime hub.

The investment will support the expansion of U.S.-based manufacturing capabilities for Wärtsilä engines, reducing reliance on offshore production and enhancing support for Navy, Coast Guard, and other government fleets. The project also aligns with the Icebreaker Collaboration Effort, a trilateral initiative among the United States, Canada, and Finland aimed at strengthening domestic and allied shipbuilding capacity.

Founded in Chesapeake in 1979, DMS serves several major U.S. military and government agencies and continues to play an important role in the region's defense industrial base. The Virginia Economic Development Partnership, the City of Chesapeake, and the Hampton Roads Alliance collaborated to secure the expansion, which is supported by a $300,000 Virginia Investment Performance Grant and workforce training assistance through the Virginia Jobs Investment Program.

VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP, AUGUST 12, 2026

Full press release here.

Word in the 'Roads

Recent press releases regarding regional economic development.

ODU, Valkyrie Launch New Defense Innovation Lab

Old Dominion University's Batten College of Engineering and Technology and Virginia Beach-based defense contractor Valkyrie Enterprises have announced the creation of the Valkyrie Defense Lab, a new initiative designed to strengthen the connection between academic research and national defense priorities. Established through a $500,000 investment from Valkyrie, the lab will provide students with opportunities to work alongside industry professionals on real-world engineering challenges while supporting applied research and workforce development in critical defense-related fields.

The lab will focus on areas including digital engineering, artificial intelligence, machine learning, modeling and simulation, and C5ISR integration. Valkyrie is also providing an enterprise license for its JTLS-GO simulation platform, which will support specialized certification opportunities for military-affiliated and security-cleared students. Programs and student projects are expected to begin in Fall 2026, further strengthening Hampton Roads' position as a hub for defense innovation while helping develop the next generation of engineering and technology professionals.

Full press release here.

Virginia Earns Top Business Climate Ranking

Virginia recently rose to No. 3 in CNBC's 2026 America's Top States for Business rankings, earning strong marks for infrastructure, wrkforce development, and economic competitiveness. The Commonwealth was ranked No. 2 nationally for infrastructure, supported by investments in assets such as The Port of Virginia and business-ready sites that help companies expand and grow.

The recognition comes as Virginia continues to attract significant business investment across a variety of sectors. Recent announcements include Austrian life sciences company RINGANA's $85 million U.S. headquarters project in Roanoke, which will create 435 jobs; Rural King's $40 million distribution center investment in Henry County, expected to create 150 jobs; and Defense Maritime Solutions' $30 million expansion in Chesapeake. Together, these projects highlight the Commonwealth's continued success in attracting investment in advanced manufacturing, logistics, life sciences, and defense.

Full press release here.

Regional RFPs

Opportunities to buy, build, and service regional municipalities.

City of Chesapeake: Strategic Plan Tracking Software

The City of Chesapeake is seeking information and recommendations for software that can be used to monitor, manage, and report on the progress of strategic initiatives. The solution will support the City's efforts to track organizational goals, measure performance, and communicate progress across departments and stakeholders.

VIEW RFP | Deadline: September 21, 2026 at 12:00 PM

City of Virginia Beach: Various Minor New Construction Projects (ARIQCC)

The City of Virginia Beach is seeking qualified contractors for an Annual Renewable Indefinite Quantity Construction Contract (ARIQCC) to perform various minor new construction projects as needed. The contract is intended to provide flexible and timely construction services for a variety of City facilities and infrastructure improvements.

VIEW RFP | Deadline: 3:00 p.m. on October 7, 2026 at 3:00 PM