NextEra remains committed to HEI purchase

NextEra Energy Inc. said Thursday it is still committed to its purchase of Hawaii’s largest electrical utility, despite Gov. David Ige’s administration coming out against the sale for the second time.

“We remain committed to this merger and the benefits it will bring to customers, communities and the state of Hawaii,” NextEra spokesman Rob Gould said in an email Thursday.

NextEra said in December it planned to buy Hawaiian Electric Industries for $4.3 billion. Its initial plan was rejected by Gov. David Ige as not being in the best interest of consumers. In August, NextEra added more than 50 new binding commitments to win more support for the purchase. On Wednesday, Ige’s administration rejected the new NextEra offer as still not favorable to consumers.

The purchase has to be approved by the state Public Utilities Commission. There are 27 groups authorized by the PUC as intervenors in the case, and a majority of those have said they are opposed to the latest plan by NextEra.

NextEra said it is still committed to proving the company is the right choice for Hawaii.

“We appreciate input from all stakeholders and recognize that this is an ongoing, dynamic process,” Gould said.

“We remain committed to continuing to work to address any and all concerns and continue to believe that NextEra Energy is the right partner for Hawaiian Electric to achieve Hawaii’s goal of 100 percent renewable energy by 2045. As the world’s largest producer of renewable energy from wind and sun, NextEra Energy will apply its extensive renewable energy expertise and resources to make this goal a reality, while lowering customers’ energy bills.”

The more than 50 new commitments NextEra added in August included customer savings of nearly $465 million and approximately $500 million in economic benefits over the first five years following the close of the sale. Residential customer savings are estimated to be $372 over five years for Oahu customers. NextEra also said it would help Hawaii get 100 percent of its utility electrical generation from renewable resources by 2045, “if not sooner.”

The company added the commitments after Ige said July 20 he opposed NextEra’s purchase of Hawaii’s largest electrical utility and was recommending that the PUC reject the deal.

The lack of details with the offered benefits was a common critique by intervenors.

The sale “continues to fail to meet the public benefit standard because (NextEra and HEI) largely offer only intangible or highly conditional benefits for ratepayers,” said Ulupono Initiative, a renewable-energy advocacy group.

Maryland Heights, Mo.-based SunEdison Inc., an energy company, asked the PUC to protect competition in Hawaii in its testimony.

International Brotherhood of Electrical Workers Local Union 1260 said NextEra did not offer to train and develop the union workforce to successfully perform the new jobs that would come with the state’s clean-energy transition.

“This wholesale rejection of the Local Union’s concerns for not only the HECO Companies’ current and future skilled union workforce, but also local union contractors and local services providers, is both alarming and disappointing,” said IBEW in a filing. “Although NextEra says the ‘right things’ in reality it is not willing to commit to or invest in Hawaii’s people and community.”

Blue Planet Foundation, a Honolulu-based clean-energy organization, said NextEra’s responses were a “good start” but that the company needs to provide more details.

Wednesday’s filings are a precursor to the upcoming hearings, where the intervenors, NextEra and HEI will be able to present their cases to the PUC at the Neal Blaisdell Center in December.