Hawaii Public Utilities Commission rejects HECO, NextEra energy change of control application
After a close evaluation of the benefits and risks to ratepayers, the Hawaii Public Utilities Commission (PUC) has dismissed a change of control application from the Hawaiian Electric Companies (HECO) and NextEra Energy with a 2-0 decision.
In considering HECO and NextEra’s application, the PUC examined the impact of the change of control on the applicants’ clean energy commitments, on local governance and on competition in the local energy market. In spite of the fact that the PUC agreed that NextEra was capable of performing the services provided to current customers of HECO, it also concluded that the change of control application was not in the best interest of the public.
Owing in large part to the fact that the benefits of a change of control would have been uncertain and potentially insufficient to warrant the change, the PUC concluded that the level of risk was unwarranted, and that the rate credits, investment funds and rate case moratorium proposed by HECO and NextEra may not come to fruition should the application be accepted.
According to the PUC, HECO and NextEra also failed to demonstrate sufficient protection to the companies under HECO and to their ratepayers, voicing significant concerns regarding the potential bankruptcy of NextEra, a large corporation with hundreds of subsidiaries, a structure highly dissimilar to HECO.
