Several Hawaii environmental and renewable energy groups asked the Public Utilities Commission Wednesday to map out the future of Hawaiian Electric Co.’s transition to clean energy before making a decision on the proposed sale of the utility to NextEra Energy Inc.
The Alliance for Solar Choice, Blue Planet Foundation, Hawaii PV Coalition, Hawaii Solar Energy Association and Sierra Club of Hawaii petitioned the PUC to complete plans for Hawaii’s clean energy future before reviewing the Juno Beach, Fla.-based energy company’s proposal to buy HEI for $4.3 billion.
The clean energy groups requested the PUC commit to deciding on pending energy matters — including the utility’s plan for its future energy mix, customer rooftop solar, and the so-called "decoupling" of utility revenue and power generation — before considering NextEra’s proposal to acquire the HECO companies.
The utilities "lack a legally accepted and effective plan for the future," and should have one in place before the PUC’s staff looks into the sale, said the groups in the filing.
"Hawaii needs to get its house in order," said Leslie Cole-Brooks, executive director of the Hawaii Solar Association. "Hawaii customers deserve an energy road map to ensure we’re acting in the best interest of the public, like having access to cheaper and cleaner power, before engaging in a long and complicated merger process."
It is in the best interest of Hawaii residents to have the energy road map in place, echoed Isaac Moriwake, an attorney representing Sierra Club.
"Finishing the work we started to plan for Hawaii’s energy future is simply common sense," Moriwake said. "It puts the interests of ratepayers and the public first, rather than letting a private deal drive the process. The legal standard for reviewing a proposed merger is ‘what’s in the public interest,’ and we need to finish the work to define where we’re going before deciding who’ll take us there."
NextEra shares the coalition’s goals of achieving affordable clean energy for Hawaii but delaying the review of the acquisition will stall progress, said Rob Gould, spokesman for NextEra Energy.
"With that in mind, we believe our combination can only help to accelerate that more affordable clean energy transformation," Gould said. "It is important to recognize that delaying the review of this transaction would delay the significant benefits this transaction will bring to Hawaiian Electric’s customers and communities, and that is not in the best interest of Hawaii. We further believe that the work that is ongoing by so many to achieve a cleaner, more affordable energy future for Hawaii can and should continue while the PUC reviews our proposed combination. We look forward to continuing to work with all stakeholders toward that end."
The groups want HECO to move forward on its clean energy plans and not put them on hold while the proposed NextEra purchase is being considered.
"If the commission were to put on hold the pending matters, such as the HECO companies’ proposed plans, to address the merger application … the planning effort would need to restart yet again," the coalition said. "This would prolong even further the HECO companies’ long-running and debilitating void of planning direction."
HECO doesn’t see it that way.
NextEra’s resources would help the utility move forward in its transformation, said Lynne Unemori, HECO spokeswoman.
"We agree that it’s vital to keep moving forward with plans to achieve the clean energy future that we all want for Hawaii. Joining with NextEra Energy can provide resources to help accelerate that transformation," she said. "It makes sense for all of these important actions to proceed so we can provide benefits to our customers as quickly as possible."
The parties are not taking a position on NextEra’s purchase of HEI, said Jeff Mikulina, executive director of Blue Planet Foundation.
"Our sole focus is to finish laying the foundation for utility transformation — a process that is already underway at the commission," Mikulina said. "We believe completing the years of planning effort is in the best interests of the people of Hawaii."