HONOLULU — The Hawaii Public Utilities Commission voted not to approve a merger between Florida-based NextEra and Hawaii’s largest utility, saying the companies didn’t show they would provide adequate benefits to ratepayers or help the state meet its aggressive renewable energy goals.
The regulatory body announced Friday that it voted 2-0 to reject the merger. One commissioner, recently appointed by Gov. David Ige, abstained.
The commission said NextEra and Hawaiian Electric failed to show that the merger would be in the public’s interest. They called the companies’ proposed $60 million in benefits to ratepayers — who pay the highest electricity rates in the nation — inadequate and uncertain.
“The proposed $60 million is a conditional guarantee that is not irrevocable,” they wrote in the decision summary. “Accordingly, it does not represent a ‘guaranteed’ benefit to ratepayers.”
In a joint statement, NextEra and Hawaiian Electric said late Friday that they received the order and are currently reviewing it.
Commissioners also questioned the companies’ commitment to clean energy and were worried about what would happen if the utility lost local control. Hawaii has a goal of using 100 percent renewable energy by the year 2045.
NextEra has considerable resources and experience with renewable energy, but the company lacks experience in the unique renewable energy issues facing Hawaii, commissioners said. For example, it doesn’t have experience integrating high levels of distributed energy — particularly from residential rooftop solar systems — into isolated island grids, commissioners said.