NextEra Energy Inc., the company looking to buy Hawaiian Electric Industries, has advised the utility on recent fuel agreements.
In a filing with the Public Utilities Commission on July 31, the utility told state regulators it has a consulting agreement with NextEra Energy.
“While NextEra Energy does not have plans of its own, separate from those of (Hawaiian Electric Cos.), the Hawaiian Electric Fuels Department, from time to time and pursuant to the consulting agreement, utilizes NextEra Energy’s fuel-related expertise in its overall fuel strategies,” Hawaiian Electric Co. said in the filing.
HECO said NextEra Energy provided input on the utility’s petroleum request for proposals, liquefied natural gas sourcing and designs for an emissions test plan.
The merger agreement between HEI and NextEra requires the utility to get consent from the Florida-based company prior to engaging in acquisition of fuel and fuel-related matters, including acquisitions or sales of more than $50 million, contract modifications and issuing any request for proposals.
With NextEra’s guidance, HECO chose to competitively source petroleum fuels for Oahu starting in 2017 instead of seeking an extension of the current Chevron First Amendment. This Oahu RFP is looking to provide petroleum fuel to Hawaiian Electric’s Kahe and Waiau power plants.
“Hawaiian Electric analyzed a variety of scenarios, concerns, local and global market conditions, among other things, and (HECO) determined issuing an RFP was the more appropriate option,” the utility said in the filing.
The utility said NextEra Energy’s expertise and experience in reducing Florida Power & Light’s heavy reliance on oil helped when drafting the request for proposals.
NextEra Energy and HEI announced in December that NextEra was looking to buy the state’s largest utility for $4.3 billion. The companies are still waiting on the PUC to make a decision on the sale.
