Nextera hearings: Customers to fund ‘green’ goal

NextEra Energy Hawaii President and CEO Eric Gleason said Wednesday a portion of the estimated $30 billion it will cost Hawaii to reach its goal of 100 percent renewable electricity by 2045 will be paid by ratepayers.

Gleason made the comment in response to a question on the third day of a scheduled 12 days of Public Utilities Commission hearings into NextEra Energy Inc.’s proposed $4.3 billion purchase of Hawaiian Electric Industries.

Gleason said that all costs related to getting to 100 percent renewable would come from ratepayers except projects done by individuals.

“If there is a customer that does their own project … that is separate,” Gleason said. “Not all of the $30 billion would be spent by the utilities and therefore recoverable in commission-approved utility rates.”

Also Wednesday, PUC Chairman Randy Iwase rejected a request to release to the public emails sent between Hawaiian Electric executives about the NextEra deal. The state Consumer Advocate requested the emails months ago, and HEI provided them. But HEI and NextEra requested at the time that the emails remain confidential.

The emails were discussed in a 45-minute closed-door session on Tuesday in which the Consumer Advocate and Hawaii Gas Co. cross-examined Hawaiian Electric Co. CEO Alan Oshima about their content.

Terrance Revere, an attorney representing the state Office of Planning, asked Iwase to make the emails public. Iwase turned him down, citing the prior agreement among parties that they will remain confidential. Revere said he will file a formal request today to make the emails public.

Iwase said he doesn’t like having to meet behind closed doors but his hands are tied when the parties want to discuss documents that they agreed would remain confidential.

“It’s like walking into a bathroom after it’s been used,” Iwase said. “It is going to smell. What am I going to do about it? Bring Glade in? It is the order, we have to live with it. … That’s our order. I am not going to run away from that order. We told the parties that is the process.”

The Wednesday hearing ended with the possibility of an additional closed-door session today as William Meheula, attorney representing Hawaii Gas Co., asked to set aside time to cross-examine Gleason about the HEI emails.

“I don’t know which document Mr. Meheula wants to use,” Iwase said, adding that hundreds of documents submitted for the review are confidential.

PUC Chief Counsel Tom Gorak asked Gleason about 85 commitments NextEra offered in its proposal to purchase HEI, including a commitment to save customers $60 million over four years.

Gleason said he does consider the $60 million savings for ratepayers a sizable offer. The monthly savings for each customer amounts to approximately $1.

Gleason repeatedly refused to answer as Gorak pressed him on specifics about the commitments.

“The simple answer to all of these questions is ‘I don’t know,’ because the parties would need to evaluate in the context of the commission order at the time,” Gleason said.

“If the parties at this point in time have not evaluated this and don’t have a response to this, how is the commission supposed to evaluate these factors?” Gorak asked. “It seems to me that you are the representative of NextEra here and you should be defending exhibits.”

When asked about NextEra’s specific plans to get the state to its 100 percent renewable energy goals, Gleason said they have yet to be determined.

Gleason said “the answers aren’t known today but we just have to see how the situation plays out.”

Iwase told Gleason to be present every day of the hearings so he could be called back on the stand at any time.