NextEra Energy and HEI Terminate Merger AgreementJuly 18, 2016, 7:42 AM HST · Updated July 18, 7:44 AM 0 Comments
NextEra Energy and Hawaiian Electric Industries today announced the termination of their plans to merge, effective immediately.
The decision was driven by the Hawai‘i Public Utilities Commission’s order to dismiss the companies’ merger application.
“As a result of the PUC’s order, we have terminated our merger agreement,” said Jim Robo, chairman and chief executive officer, NextEra Energy. “We wish Hawaiian Electric the best as it serves the current and future energy needs of Hawai‘i, including helping the state meet its goal of 100% renewable energy by 2045. Looking forward, NextEra Energy remains extremely well-positioned to execute on our strategy and deliver exceptional results for our customers and shareholders.”
“We appreciate NextEra Energy’s interest in Hawai‘i and in our company,” said Connie Lau, HEI’s president and chief executive officer and chairman of the boards of Hawaiian Electric and American Savings Bank. “All of us at HEI, Hawaiian Electric and American Savings Bank remain committed to serving our customers, and we look forward to working together with communities across our state to realize the clean energy future we all want for Hawai‘i and to ensure a vibrant local economy.”
Under the terms of the merger agreement, NextEra Energy will pay Hawaiian Electric Industries a $90 million break-up fee and up to $5 million for reimbursement of expenses associated with the transaction.
Hawaiian Electric Industries Inc. is the largest supplier of electricity in the state of Hawai‘i, supplying power to 95% of the state’s population through its electric utilities: Hawaiian Electric Company, Hawaii Electric Light Company and Maui Electric Company.
NextEra Energy Inc. is a leading clean energy company with consolidated revenues of approximately $17.5 billion and approximately 14,300 employees in 27 states and Canada as of year-end 2015, as well as approximately 45,000 megawatts of generating capacity, which includes megawatts associated with noncontrolling interests related to NextEra Energy Partners LP as of April 2016.