As concerned citizens, consumers of electricity, employers and business owners, we can no longer stay silent on the merger between NextEra Energy and Hawaiian Electric. It means too much to all of us to not take a position. After carefully reviewing available information, we are writing to support the merger because the alternatives will be too costly for all of us. We urge our fellow business and community members to support the merger.
A municipal-owned utility or co-op may seem attractive in theory, but we need to fully and carefully consider the costs and consequences. Who will pay for a municipal-owned utility or co-op? That will cost billions of dollars we don’t currently have. And where are we going to get the necessary funds to sustain investments to modernize our grid and get us to 100 percent renewable energy by 2045?
We believe that there are really three basic issues that should be of concern to all of us: lower rates, renewable energy, and local control.
It may take $25 billion to $35 billion of investment to achieve 100 percent renewable energy. That amount of investment requires an entity that will be able to attract significant long-term capital, such as NextEra Energy. If we are serious about renewable energy, then we have to be serious about the funding mechanisms that will get us there.
With its extremely strong balance sheet and equally strong credit rating, NextEra will be able to invest at much lower borrowing costs, which mean more money stays in our pockets as customers. Also, due to its magnitude and scale, NextEra has better purchasing power and will be able to secure lower costs for fuel, materials, supplies, and capital projects. Those savings will directly translate to customer savings.
Whenever there is a proposed merger in Hawaii, we worry about loss of jobs, loss of local sensitivities, and loss of local support for our communities. In this merger, fear has been creeping into local residents’ hearts and minds—the fear that we would somehow lose our voice in something that is so very important and so basic to our daily needs. But we shouldn’t let fears guide us.
Look at First Hawaiian Bank and Kauai Coffee, and so many other companies whose ownership control changed from local to outside of our shores. They were shepherded by great local management and there have not been any mass layoffs. And they continue to support our communities.
We appreciate that Next- Era Energy has committed to full local management, and they have pledged to institute a local board representing the community. NextEra has also committed to match the total charitable giving of the Hawaiian Electric Industries companies, with at least $2.2 million annually.
Finally, NextEra Energy’s infusion of new investments will create jobs, drive spending at local businesses and stimulate overall economic activity.
Hawaii’s 100 percent renewable energy goal is the most ambitious in the country, which puts significant pressure on every decision that we make regarding our energy future. The proposed merger has prompted substantial discussion around different potential avenues that we may take to achieve the state’s goal.
Every household and business is affected by high electricity costs. That challenge is further magnified for those of us who are business owners. Partnering with NextEra Energy will bring affordability and economic stability to our communities and help us achieve our clean energy goals.
To stay silent and not support this once-in-a-lifetime opportunity is akin to putting up a big flashing neon sign that says Hawaii is closed for business. This is an opportunity we can’t afford to miss.
