NextEra says HECO merger will help Hawaii RPS

Market: Electricity, Emissions
02/09/15

NextEra Energy says its $4.3bn bid to buy Hawaiian Electric Companies (HECO) will help the state meet its goal of 100pc renewable energy by 2045.

The company in filings with state regulators this week laid out 85 measures it says will contribute to advancing Hawaii's renewable portfolio standard (RPS) through 2045, while generating up to $1bn in ratepayer savings and economic growth over the first five years of operation.

Among the proposals, NextEra committed to fully satisfying Hawaii's 100pc RPS through deployment of new capacity and infrastructure across the state, while working with the Hawaii Public Utility Commission (PUC) to maintain stakeholder engagement, even after the merger is final.

"Our own vision is very compatible with the HECO vision of a Hawaii that transitions to cleaner fuel sources," NextEra chief financial officer Moray Dewhurst said. "This includes large-scale renewables, rooftop solar where economic, natural gas, modernizing the transmission and distribution grid, reducing the state's dependence on imported oil and attaining the state's goal of 100pc renewable power by 2045."

NextEra's proposed acquisition of Hawaii's largest integrated utility has run into public and political skepticism, including from governor David Ige (D), who last month said he opposed the deal because of concerns about NextEra's lack of focus on hitting the new RPS.

NextEra assured stakeholders that local management would maintain responsibility for HECO operations by keeping the utility's current corporate structure in place. The result, NextEra says, would position the local utility to use its experience to meet the RPS mandate, while tapping into up to $20mn/yr in capital expenditures provided by the Florida-based parent to its largest subsidiaries, including Florida Power & Light and NextEra Energy Resources.

"The proposed is truly a win-win opportunity for HECO and the state of Hawaii. It combines the best of local control with the resources and expertise of a far larger, international enterprise," Dewhurst said.

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