JUNO BEACH, Fla., and
HONOLULU, Aug. 31, 2015 /PRNewswire/ -- NextEra Energy,
Inc. (NYSE:NEE) and Hawaiian Electric Company, Inc., Hawaii
Electric Light Company, Inc. and Maui Electric Company Limited
(collectively referred to as Hawaiian Electric), subsidiaries of
Hawaiian Electric Industries, Inc. (NYSE:HE) (HEI), today provided
additional extensive details on NextEra Energy's plans for its
merger with HEI, including a comprehensive package of 85
commitments, of which more than 50 are new, that would accelerate
the achievement of Hawaii's goal
of an affordable, 100 percent renewable energy future by 2045.
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.
"Our expanded set of commitments is a clear reflection of the
thoughtful input we have received from many key stakeholders,
including the Governor and the Consumer Advocate," said
Eric Gleason, president of NextEra
Energy Hawaii, LLC. "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. 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. As the world's leading generator of renewable
energy from the wind and sun, we are well positioned, alongside
Hawaiian Electric, to partner with the state to achieve its 100
percent renewable portfolio standard by 2045, as well as integrate
more rooftop solar, modernize the electric grids and lower customer
bills. We will continue to listen, learn and constructively engage
with stakeholders and communities throughout the state – including
Gov. Ige and his administration – as we respond to questions and
present our vision to the PUC."
"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," said Alan Oshima, Hawaiian Electric's president and
chief executive officer. "As one of the world's most innovative
companies, NextEra Energy's expertise and resources will
significantly accelerate our efforts to strengthen Hawaii's energy infrastructure, lower customer
bills and continue our active support of our local communities. In
NextEra Energy, we have a partner whose corporate values closely
align with our local values to do what's best for customers and our
communities. NextEra Energy has underscored this with a substantial
set of commitments to the state of Hawaii."
Delivering Nearly $1 Billion in
Customer Savings and Economic Benefits to Hawaii
- NextEra Energy estimates that the combination will deliver
overall customer savings of nearly $465
million and economic benefits for the state of Hawaii of approximately $500 million in the first five years following
the close of the merger.
- The estimated nearly $465 million
in customer savings include $172
million in capital expenditure savings, $133 million in savings from a four-year general
base rate case moratorium, $60
million in guaranteed rate savings from forgoing a portion
of the increase in revenues due to decoupling, $67 million in fuel savings, post-rate moratorium
$30 million in non-fuel operating and
maintenance cost reductions, and $3
million in lower interest expense.
- NextEra Energy estimates that the cumulative net savings per
residential customer of Hawaiian Electric by island for the first
five years (2016-2020) after the completion of the merger ranges
from roughly $345-$475, for an
average across all islands of nearly $400.
- NextEra Energy commits to establish a $10 million customer benefit fund paid over four
years following the close of the merger to be used at the PUC's
discretion for what it deems appropriate and in the public
interest.
These and other related commitments demonstrate NextEra Energy's
focus on delivering more affordable electric rates for customers
and enhancing the ability of Hawaiian Electric to provide safe and
reliable service at a reasonable cost.
Creating Modern Electric Grids by Accelerating Deployment of
Smart Meters to Improve Service, Reliability and Performance for
Customers
- NextEra Energy is committing to accelerate Hawaiian Electric's
deployment of smart meters, including time-of-use rate options, by
approximately two years. Smart grid technology will provide
Hawaiian Electric with greater ability to manage its electric
grids, including faster detection and restoration of outages, and
will give customers unprecedented access to information about their
energy usage and pricing options to help them better manage their
energy costs.
- NextEra Energy will coordinate with key customers in developing
updated emergency response plans for Hawaiian Electric and will
file the plans with the PUC within 12 months of the merger's
completion.
NextEra Energy is a world-class energy company, and the
expertise, processes and best practices it will bring to Hawaiian
Electric will enhance service, reliability and performance.
Importantly, NextEra Energy brings to the table a powerful
combination of renewable energy experience, technological know-how
and financial strength necessary for developing modern smart grids
and achieving Hawaii's 100 percent
renewable portfolio standard by 2045.
NextEra Energy's utility, Florida
Power & Light Company (FPL), is leading the industry in
grid modernization. Having deployed more than 4.8 million smart
meters and more than 12,000 intelligent devices, FPL's smart grid
is recognized as one of the most advanced grids in the nation and
one of the most comprehensive, full-scale deployments of its kind.
FPL's smart grid, which includes smart meters as the foundation for
all the associated smart grid technologies, has delivered
measurable operational savings and strong customer benefits,
including improvements in efficiency, reliability and customer
service. FPL will continue to leverage this smart technology
investment to develop new tools to enhance service reliability and
deliver even more value for customers.
Committed to Charitable Giving Levels for a Minimum of 10
Years After Merger Close
- NextEra Energy commits to corporate giving of at least
$2.2 million annually for a minimum
of 10 years post-closing, consistent with HEI's 2014 charitable
giving.
- NextEra Energy is committing to broad, Hawaii-focused geographic representation on
the local, independent Hawaiian Electric advisory board that will
be established. NextEra Energy commits that the board will include
members from the counties of O'ahu, Maui and Hawaii.
- NextEra Energy will prepare an annual Hawaii-specific Corporate Responsibility
Report that tracks its progress in operating as a Hawaii business, including how it is living up
to the Hawaii values of kuleana,
mālama pono and aloha.
Hawaiian Electric Will Continue to be Locally Managed and
Retain its Hawaii-Based Values and Culture
- NextEra Energy is committed to supporting local control and
governance and has reaffirmed its proposal to preserve local
headquarters, local management and the Hawaiian Electric name.
- NextEra Energy has committed to ensuring that Hawaiian Electric
will have the same independent authority as NextEra Energy's two
other principal businesses in approving capital expenditures up to
$20 million without additional
approvals.
- NextEra Energy commits to make available incremental internship
programs and recruiting opportunities above those already made
available by Hawaiian Electric. This commitment includes adding the
University of Hawaii System to the list
of colleges and universities at which NextEra Energy recruits
candidates for employment opportunities nationwide.
- NextEra Energy also has reaffirmed its commitment that, for at
least two years after closing, there will be no involuntary layoffs
as a result of the transaction and compensation and benefits
offered will be substantially comparable to those provided prior to
the merger. In addition, NextEra Energy has committed to honor all
existing union labor agreements.
NextEra Energy Committed to Fully Supporting the Achievement
of Hawaii's 100 Percent Renewable
Portfolio Standard by 2045
- NextEra Energy is the world's largest producer of renewable
energy from the wind and sun.
- As a result of its efforts, in 2014, NextEra Energy had one of
the lowest emissions profiles of any utility in North America.
- Since 2001, FPL's investments in high-efficiency, natural gas
energy centers have enabled the company to cut its use of foreign
oil by more than 99 percent – from more than 40 million barrels to
less than 1 million barrels annually today. Since 2001, the
effectiveness of these investments has saved FPL customers more
than $7.5 billion on fuel costs and
prevented more than 85 million tons of carbon emissions.
- Since 2003, FPL and NextEra Energy Resources in total have
completed more than 101 major capital projects totaling nearly
$27 billion, with the overwhelming
majority of those projects completed on time and under budget.
NextEra Energy has received numerous awards from credible third
parties for its overall performance relative to its national and
global peers, as well as its leadership in areas such as
innovation, ethics and sustainability. In 2015, the company was
recognized as one of Fortune's World's Most Admired Companies,
ranking in the top 10 worldwide for innovativeness and
sustainability. NextEra Energy also was named a 2015 World's Most
Ethical Company® by the Ethisphere Institute, marking
the eighth year the company has received this recognition. The
skills, knowledge, resources and experience that helped produce
this track record will be available to Hawaiian Electric as a
member of the NextEra Energy family and can be expected to benefit
and accelerate the company's clean energy transformation.
NextEra Energy, Inc.
NextEra Energy, Inc. (NYSE:
NEE) is a leading clean energy company with consolidated revenues
of approximately $17.0 billion, approximately 44,900 megawatts
of generating capacity, which includes megawatts associated with
non-controlling interests related to NextEra Energy Partners,
LP (NYSE: NEP), and approximately 13,800 employees in 27 states
and Canada as of year-end 2014. Headquartered
in Juno Beach, Fla., NextEra Energy's principal subsidiaries
are Florida Power & Light Company, which serves
approximately 4.8 million customer accounts
in Florida and is one of the largest rate-regulated
electric utilities in the United
States, and NextEra Energy Resources, LLC, which,
together with its affiliated entities, is the world's largest
generator of renewable energy from the wind and sun. NextEra Energy
has been recognized often by third parties for its efforts in
sustainability, corporate responsibility, ethics and compliance,
and diversity, and has been ranked in the top 10 worldwide for
innovativeness and community responsibility as part of Fortune's
2015 list of "World's Most Admired Companies." For more information
about NextEra Energy companies, visit these
websites: www.NextEraEnergy.com, www.FPL.com, www.NextEraEnergyResources.com.
Hawaiian Electric Company
Hawaiian Electric and its
subsidiaries, Maui Electric and Hawaii Electric Light, serve the
islands of O'ahu, Maui, Lāna'i,
Moloka'i and Hawaii, home to 95
percent of the population of Hawaii. Hawaiian Electric's parent company is
Hawaiian Electric Industries (NYSE: HE), which has been named one
of "America's 100 Most Trustworthy Companies 2015" by Forbes.
In a changing world, the Hawaiian Electric Companies are taking
the lead in adding renewable energy and developing energy solutions
for their customers to achieve a clean energy future for
Hawaii. For more information,
visit www.hawaiianelectric.com.
FORWARD-LOOKING STATEMENTS
This document contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are typically identified by words or
phrases such as "may," "will," "anticipate," "estimate," "expect,"
"project," "intend," "plan," "believe," "predict," and "target" and
other words and terms of similar meaning. Forward-looking
statements involve estimates, expectations, projections, goals,
forecasts, assumptions, risks and uncertainties. NEE and HEI
caution readers that any forward-looking statement is not a
guarantee of future performance and that actual results could
differ materially from those contained in any forward-looking
statement. Such forward-looking statements include, but are not
limited to, statements about the anticipated benefits of the
proposed merger involving NEE and HEI, including future financial
or operating results of NEE or HEI, NEE's or HEI's plans,
objectives, expectations or intentions, the expected timing of
completion of the transaction, the value, as of the completion of
the merger or spin-off of HEI's bank subsidiary or as of any other
date in the future, of any consideration to be received in the
merger or the spin-off in the form of stock or any other security,
and other statements that are not historical facts. Important
factors that could cause actual results to differ materially from
those indicated by any such forward-looking statements include
risks and uncertainties relating to: the risk that NEE or HEI may
be unable to obtain governmental and regulatory approvals required
for the merger or the spin-off, or required governmental and
regulatory approvals may delay the merger or the spin-off or result
in the imposition of conditions that could cause the parties to
abandon the transaction; the risk that a condition to closing of
the merger or the completion of the spin-off may not be satisfied;
the timing to consummate the proposed merger and the expected
timing of the completion of the spin-off; the risk that the
businesses will not be integrated successfully; the risk that the
cost savings and any other synergies from the transaction,
including the value of a potential tax basis step up, may not be
fully realized or may take longer to realize than expected;
disruption from the transaction making it more difficult to
maintain relationships with customers, employees or suppliers; the
diversion of management time and attention on merger and
spin-off-related issues; general worldwide economic conditions and
related uncertainties; the effect and timing of changes in laws or
in governmental regulations (including environmental); fluctuations
in trading prices of securities and in the financial results of
NEE, HEI or any of their subsidiaries; the timing and extent of
changes in interest rates, commodity prices and demand and market
prices for electricity; and other factors discussed or referred to
in the "Risk Factors" section of HEI's or NEE's most recent Annual
Reports on Form 10-K filed with the Securities and Exchange
Commission (the "SEC"). These risks, as well as other risks
associated with the merger, are more fully discussed in the
definitive proxy statement/prospectus that is included in the
Registration Statement on Form S-4 that NEE filed with the SEC in
connection with the merger. Additional risks and uncertainties are
identified and discussed in NEE's and HEI's reports filed with the
SEC and available at the SEC's website at www.sec.gov. Each
forward-looking statement speaks only as of the date of the
particular statement and neither NEE nor HEI undertakes any
obligation to update or revise its forward-looking statements,
whether as a result of new information, future events or
otherwise.
NextEra Energy Contact
Robert L. Gould
Vice President, Chief Communications Officer
561-694-4442
Debra Larsson
Manager, Financial and Sustainability Communication
561-694-4442
Hawaiian Electric Company Contact
Lynne Unemori
Vice President, Corporate Relations
808-543-7972
lynne.unemori@hawaiianelectric.com
Hawaiian Electric Industries Contact
A.J.
Halagao
Manager, Corporate & Community Advancement
808-543-5889
ajhalagao@hei.com
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SOURCE NextEra Energy, Inc.; Hawaiian Electric Company, Inc.