Regulators flag NextEra's political past: 'ghost candidates' allegations and a $14 billion stock drop

RICHMOND, Va. - The company that wants to buy Dominion Energy comes with political baggage, and Virginia's utility regulators put it on the record Monday.

In prefiled testimony in Case PUR-2026-00112, State Corporation Commission staff devoted a section to NextEra's legal and political activity. Staff said it did not rely on this history in deciding whether the merger meets the legal standard, but that it "raised enough concern for Staff to include this discussion for the Commission's information" (staff testimony, p. 172).

The 'ghost candidates' allegations

The testimony summarizes a federal securities lawsuit, Jastram v. NextEra Energy, filed in the Southern District of Florida against NextEra, its former CEO James Robo, communications chief David Reuter, Florida Power & Light and FPL's former CEO Eric Silagy (p. 174).

According to staff's summary, the complaint alleges that Silagy sought help from Matrix LLC, a political consulting firm, and that Matrix and FPL had a role in an attempted bribe of a Jacksonville City Council member who opposed privatizing the city-owned utility JEA, surveillance of journalists who opposed the takeover, a conspiracy to prop up "ghost candidates" in Florida's 2018 and 2020 state elections against candidates seen as adverse to FPL, and co-opting supposedly independent news outlets (pp. 174-175).

These are allegations in a lawsuit, not findings. The plaintiffs claim NextEra "knowingly misled investors" about its involvement and downplayed the risks (p. 175).

Where the case stands

The case has had a winding path. A federal district court dismissed the complaint in September 2024, but on Nov. 26, 2025, the U.S. Court of Appeals for the 11th Circuit reversed that dismissal and sent the case back for further proceedings (pp. 171-172). In June 2026, the plaintiffs sought preliminary approval of a settlement under which NextEra would pay $150 million. On Aug. 7, 2026, the district court denied that motion without prejudice, and as of Oct. 7 the parties had not filed a renewed motion (p. 177). NextEra says that if the settlement is not approved, the defendants will "continue to defend the securities class action lawsuit vigorously" (p. 177). Separate shareholder derivative suits filed between July 2023 and May 2025 have also been the subject of a settlement agreement, according to the companies (p. 177).

JEA and the $14 billion drop

The JEA episode is not just an allegation. In 2019, NextEra offered about $11 billion for JEA, Jacksonville's community-owned utility. JEA ended the sale process in December 2019 amid public scrutiny before any deal was signed (p. 172). The Justice Department later indicted JEA's former CEO and CFO for conspiracy and wire fraud, and the former CEO was sentenced to four years in federal prison in 2024 (p. 173). Staff's summary does not say NextEra was charged.

On Jan. 25, 2023, NextEra disclosed that Silagy would step down as FPL's CEO and flagged new financial and reputational risks tied to media reports alleging FPL violated campaign finance laws. By the close of trading that day, NextEra's stock had fallen 8.7%, a loss of more than $14 billion in market value (p. 176).

Why it matters in Virginia

Virginia already has a utility with outsized political influence. The question is whether a new owner with this history would change that influence or simply take it over.

Dominion's own political footprint is enormous. VPAP records show its top 20 Democratic recipients took at least $8.42 million in 2025-26, including Speaker Don Scott ($600,409) and Majority Leader Scott Surovell ($600,000), and at least $7.15 million in 2023-24. Its top 20 Republican recipients took about $5.58 million in 2025-26. Virginia Scope reports nearly $18 million to Democrats and more than $15 million to Republicans since 2018. OpenSecrets shows Dominion Energy PAC sent $117,800 to Democratic federal candidates and $162,500 to Democratic PACs and party committees in 2023-24.

If NextEra's leadership pulled back on Virginia giving after closing, a hypothetical, Democrats would lose at least $7 million to $8.5 million per state cycle and about $280,000 per federal cycle. The filing is silent on political giving, and NextEra runs its own PAC.

NextEra's response on the Jastram case and its political spending policies will be added if provided.

Page numbers refer to the 201-page public version of SCC Staff's prefiled testimony, Volume I of VII, in Case PUR-2026-00112 (SCC document 261030140), filed Oct. 19, 2026.