Since Florida-based NextEra Energy announced it will buy Hawaiian Electric for $4.3 billion, many public officials have hoped the new owner will better HEI’s dismal record on reducing fossil fuels and cutting rates.
Our leaders can do more than hope.
The state Public Utilities Commission has power to set conditions on the sale or even reject it, creating strong leverage to demand the clean energy future Hawaii wants.
The loss to coming generations will be immense if we throw away this opportunity by genuflecting to big money as we usually do.
NextEra CEO Jim Robo sees Hawaii as a "postcard from the future" in that our highest-in-the-nation electric rates make rooftop solar competitive enough here to have won 10 percent of the residential market, threatening the centralized power grid that drives utility profits.
Buying HEI, he suggests, lets his company figure strategies for addressing the challenge before it reaches bigger markets on the mainland.
That’s good if the strategy is a new business model that accommodates decentralized renewable energy; not so good if the strategy props up the grid by beating back diversified renewables, as HEI has done on rooftop solar with installation delays and threatened fees.
Robo says NextEra supports renewables, but its vision is for big centralized solar farms and wind farms that feed the grid and preserve the utility’s tight lock on power generation and distribution.
He argues this has an economy of scale over individual residential systems and could lower electricity prices for all consumers.
Big solar and big wind are certainly part of the mix, but many residents don’t trust the utility’s broken promises for cheaper power and prefer to take their chances with home-based systems they control.
It’s their right, and approval of the sale should be conditioned on a commitment to quickly clear the backlog on residential solar installations and drop plans for higher fees on solar users who make minimal use of the grid.
NextEra’s plan to import large quantities of liquefied natural gas as an alternative to oil also needs scrutiny.
Relying too heavily on another imported fossil fuel as a bridge to a renewable future makes little sense if it only delays the development of renewables that can already compete with gas.
State policy embraces clean and secure energy built around locally produced renewables, but HEI has repeatedly resisted goals that challenge its lucrative business model.
A recent state report derided HEI’s latest plan as stuck in the past and designed to benefit the utility rather than the public.
If NextEra won’t unambiguously commit to aggressive and specific support of diversified renewable energy, there’s little reason to approve this sale and give away leverage we may never have again.
Reach David Shapiro at volcanicash@gmail.com or blog.volcanicash.net.
