A former commissioner of the agency that regulates Florida’s utilities testified that NextEra Energy Inc. would be a bad fit for Hawaii as the second phase of hearings held by Hawaii’s Public Utilities Commission to review the proposed purchase of Hawaiian Electric Industries ended Wednesday.
Nathan Skop, former commissioner of the Florida Public Service Commission from 2007 to 2011, said NextEra’s Florida utility, Florida Power & Light , failed to deliver a promised $30 million in savings annually starting in 2013 from a smart meter program.
“They overpromise and underdeliver on savings to customers. They run the same playbook over and over again.”
Nathan Skop
Former commissioner of Florida’s utility-regulating agency
“They overpromise and underdeliver on savings to customers,” Skop said as an expert witness for the Sierra Club of Hawaii. “They run the same playbook over and over again.”
Hawaii PUC Chairman Randy Iwase said the public hearings, which began on Nov. 30, now will head to a third round. The hearings will be held in the same conference room at the Neal S. Blaisdell Center from Feb. 29 to March 4 to review whether NextEra’s purchase of the state’s largest electric utility is in the public interest. The hearings are scheduled from 9:30 a.m. to 5 p.m.
“We expect the hearing will conclude by no later than March 4,” Iwase said.
Before working as a commissioner in Florida, Skop was employed by NextEra Energy Resources. He was let go in 2002. NextEra said Skop’s termination creates a bias in his testimony.
There are seven remaining expert witnesses representing the groups opposed to the sale’s current structure who will testify.
Rob Gould, spokesman for NextEra Energy, said the hearings show that NextEra is the right choice for the state.
“After having filed approximately 110,000 pages in response to 6,000 questions over a period spanning more than one year, including 20 days of hearings that is being extended into March, we believe the facts are clear that our merger is without question in the public’s interest,” Gould said. “We remain firm in our belief that we are the right partner for Hawaiian Electric and that our merger will deliver real and tangible benefits to Hawaiian Electric customers and the state of Hawaii.”
NextEra, a Florida-based energy company with an approximate $52 billion market capitalization, announced its intent to purchase HEI in December 2014. The sale attracted nearly 30 intervening groups from the state’s administration, clean-energy organizations and environmental groups.
Since the review began, the U.S. Department of Defense, the International Brotherhood of Electrical Workers Local 1260 and the Honolulu Board of Water Supply came out in support of the sale.
The remaining parties, including the state Consumer Advocate, are opposed to the sale in its current form. Those parties also include the state Office of Planing, the Department of Business, Economic Development & Tourism, the Sierra Club of Hawaii, Blue Planet Foundation, Hawaii Gas, Life of the Land and Ulupono Initiative.
After the hearings end, the parties will be able to file closing briefs. Iwase said he could not predict when the PUC will make its decision about the sale.
Both NextEra and HEI can walk away on June 3 when the contract ends. NextEra has to pay a $90 million termination fee if the company fails to obtain regulatory approval, according to the contract.