Hawaiian Electric Co. said today that it withdrew its application to use liquefied natural gas for power generation.
The state’s electric utility said it canceled the contract due to the termination of the proposed merger with NextEra Energy Inc. State regulators last week rejected Florida-based NextEra’s $4.3 billion purchase of Hawaiian Electric Industries, the parent company of Hawaiian Electric Co., Maui Electric and Hawaii Electric Light Co. Following the PUC decision, NextEra walked away from HEI on Monday.
The electric utility had said NextEra’s financial backing was required in order to bring in the liquefied natural gas (LNG) and make the necessary upgrades to power plants.
“Because of the resources these specific combined projects required, one condition of the LNG contract was approval of the proposed merger with NextEra Energy,” HECO said in a press release.
The LNG application included the utility’s contract with Fortis Hawaii Energy Inc, plans to upgrade Kahe Power Plant to use natural gas, and a waiver from competitive bidding to upgrade the plant.