NextEra Energy (NYSE: NEE) and Hawaiian Electric Industries (NYSE: HE) (HEI) announced March 30 that the Federal Energy Regulatory Commission had on March 27 given its approval to the companies’ proposed merger, which had been announced in December 2014.
“Approval by the Federal Energy Regulatory Commission represents a significant step toward the completion of our merger,” said Jim Robo, chairman and chief executive officer of NextEra Energy. “Through our partnership, we will apply our combined expertise and resources to deliver significant savings and value to Hawaiian Electric customers. We will continue to work closely with our partners at Hawaiian Electric in pursuing the remaining necessary approvals to complete the merger and begin to deliver the more affordable clean energy future we all want for Hawaii.”
“We are pleased with this substantial progress on our proposed merger,” said Connie Lau, HEI’s president and chief executive officer and chairman of the boards of American Savings and Hawaiian Electric. “Hawaiian Electric is gaining a partner that is the world’s largest generator of renewable energy from the wind and sun, with a commitment to supporting rooftop solar in Hawaii and a proven track record of lowering electric bills. This approval provides further momentum toward ultimately delivering that substantial value to our customers and communities.”
The transaction remains subject to approval by the Hawaii Public Utilities Commission, HEI shareholders, the spinoff of ASB Hawaii and additional regulatory approvals and other customary conditions.
NextEra Energy is a leading clean energy company with consolidated revenues of approximately $17.0 billion, approximately 44,900 megawatts of generating capacity.
HEI supplies power to approximately 450,000 customers or 95% of Hawaii’s population through its electric utilities, Hawaiian Electric Co. Inc., Hawaii Electric Light Co. Inc. and Maui Electric Co. Ltd., and provides a wide array of banking and other financial services to consumers and businesses through American Savings Bank, one of Hawaii’s largest financial institutions.
HEI owns or controls the following generation through its utility subsidiaries:
- Hawaiian Electric – 1,731 MW of firm generating capacity, including three owned generation facilities totaling 1,270 MW and 461 MW of generation purchased from three independent power producers. Hawaiian Electric also purchases 348 MW of non-firm generation.
- Hawaii Electric Light – 290 MW of firm generating capacity, including four owned generation facilities, distributed generation owned by Hawaii Electric Light Company totaling 174 MW, and 16 MW purchased from an independent power producer. Hawaii Electric Light also purchases 115 MW of non-firm generation.
- Maui Electric – 286 MW of firm generating capacity, including five owned generation facilities and distributed generation totaling 188 MW and 98 MW of generation purchased from three independent power producers. Maui Electric also purchases 87 MW of non-firm generation.