A New Tower for a Vacant Lot
Dominion Energy and Florida-based NextEra Energy announced on Monday that they would construct a new office tower next to Dominion's existing 600 Canal Place building in downtown Richmond if their proposed $67 billion merger is approved. The tower would rise at 701 E. Cary St., a two-acre parcel that has been a fenced-off gravel lot since Dominion's former 21-story office there was imploded in 2020. Dominion had once planned a sister tower for the site but abandoned that idea in 2021.[S1]
The companies released a rendering of the proposed building that closely resembles a design Dominion floated years ago for the site, which was described as 17 stories and 900,000 square feet. Since scrapping its office plans in 2021, Dominion has shown shifting interest in the parcel: in 2022 it sought proposals for the lot, then unveiled its own plan for an electric vehicle parking lot with solar panels and wind turbines, a project that was also dropped. The property has gone on and off the market since.[S1]
Merger Promises and Regulatory Hurdles
Under the deal unveiled in the spring, NextEra would formally take over Dominion, but the utilities say Dominion would keep a local headquarters and continue to be run locally. NextEra's most recognizable arm is Florida Power & Light Company, and shares of both companies trade publicly. Several regulators must sign off, among them the State Corporation Commission. Besides the Cary Street project, the firms pledged larger residential bill credits and to hold Dominion's workforce steady for five years, extending an earlier two-year pledge. Dominion has roughly 15,000 Virginia employees, 5,000 of them in the Richmond area.[S1]
Officials Weigh In
The proposed deal has drawn attention from city and state officials. In August, Governor Abigail Spanberger announced she would intervene in the case, insisting that approval should depend on more affordable energy bills for Virginians, protections for state utility workers, and faster progress toward clean energy. Richmond Mayor Danny Avula issued a statement calling the new set of promises encouraging, and said his office will actively monitor the process and continue to champion the needs of Richmonders.[S1]
