NextEra Energy and Hawaiian Electric Industries, Inc. (HEI) provided additional extensive details on their merger plans. Both companies agree to help accelerate the achievement of Hawaii’s goal of an affordable, 100% renewable energy future by 2045 through a comprehensive package of 85 commitments, which include 50 new entries.
These commitments, which were made as part of filings with the Hawaii Public Utilities Commission (PUC), strengthen and underscore the broad range of benefits that the merger will deliver, including customer savings of nearly $465 million and economic benefits to Hawaii of approximately $500 million in the first five years following the close of the merger – a total of nearly $1 billion in customer savings and economic benefits. Customers also will benefit from NextEra Energy's ability to accelerate the development of more modern grids throughout the islands through the deployment of smart meters, including time-of-use rate options, as well as improvements to overall service, reliability and performance. In addition, NextEra Energy reinforced its commitment to the communities served by Hawaiian Electric and the state of Hawaii by pledging to maintain HEI's current levels of charitable giving for at least 10 years and to keep Hawaiian Electric locally managed.
"We fully embrace Hawaii's goal of 100 percent renewable energy by 2045 and believe this partnership represents the best path forward to achieving this goal – the most ambitious of its kind in the nation,”said Eric Gleason, president of NextEra Energy Hawaii, LLC. “This is a goal that will be accomplished by many people working together collaboratively, and we hope to play a major role in that effort.”
"Achieving Hawaii's 100 percent renewable energy goal is of critical importance to all of us and we firmly believe that the combination of NextEra Energy and Hawaiian Electric will best position our state to realize this future," added Alan Oshima, Hawaiian Electric's president and chief executive officer.
Key details of the commitments
- Delivering Nearly $1 Billion in Customer Savings and Economic Benefits to Hawaii: for each residential customer, NextEra Energy estimates roughly $345-$457 savings for the first five years.
- Creating Modern Electric Grids by Accelerating Deployment of Smart Meters to Improve Service, Reliability and Performance for Customers: modern smart grid throughout the islands will be developed under the combination; faster detection and restoration of outrages are also included.
- Committed to Charitable Giving Levels for a Minimum of 10 Years After Merger Close: at least US$2.2 million in charitable giving for at least 10 years.
- Hawaiian Electric Will Continue to be Locally Managed and Retain its Hawaii-Based Values and Culture: NextEra Energy committed supporting local control and governance as well as secured a cooperation with University of Hawaii to add its systems.
- NextEra Energy Committed to Fully Supporting the Achievement of Hawaii's 100% Renewable Portfolio Standard by 2045
