NextEra Energy and Hawaiian Electric Company, Hawaii Electric Light Company and Maui Electric Company Limited (collectively Hawaiian Electric), subsidiaries of Hawaiian Electric Industries (HEI), filed an application with the Hawaii Public Utilities Commission (PUC) requesting approval of the proposed merger involving Hawaiian Electric.
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The filing details the companies' commitments to Hawaiian Electric's communities, employees and customers for enhancing service reliability, continuing community and charitable support, continuing to locally manage Hawaiian Electric's utilities from their existing operating locations, delivering savings and value for customers, and strengthening and accelerating a cleaner energy future.
Highlights of the application include a commitment to not file a request with the PUC for a general base rate increase for at least four years post-transaction close and approximately $60 million in quantified customer savings, both subject to approval of certain conditions.
By combining with NextEra Energy, Hawaiian Electric will gain a leading-edge partner, with deep operational, technical and managerial expertise, financial capacity and a proven clean energy track record.
The proposed combination is expected to provide Hawaiian Electric with the added capacity, resources and access to expertise to strengthen and accelerate Hawaii's transition to a more affordable, equitable and inclusive clean energy future, while delivering substantial customer benefits, including lower costs and improved reliability over time.
"The filing of this application begins an important review process that we believe will ultimately result in a more affordable clean energy future for Hawaii," said Eric Gleason, president of NextEra Energy Hawaii, LLC.
"We share Hawaiian Electric's vision of increasing renewable energy, modernizing its grid, reducing Hawaii's dependence on imported oil, integrating more rooftop solar energy and, importantly, lowering customer bills, and we believe our combination will help to accelerate Hawaii's clean energy transformation."
"This application represents a significant milestone in this process," said Alan Oshima, Hawaiian Electric's president and chief executive officer.
"As the filing outlines, joining with NextEra Energy provides Hawaiian Electric with the unique opportunity to strengthen and accelerate our clean energy transformation.
"Importantly, this partnership will help us deliver substantial value to Hawaiian Electric's customers, including through NextEra Energy's commitment not to request an increase in general base rates for at least four years following the close of the transaction and to forego rate increases for recovery of operation and maintenance increases during that same period." ■