Reject the merger
Reject the merger
The NextEra-HEI merger should be rejected for many reasons.
The merger will prevent the best options for our future, which include publicly owned utilities and co-ops such as Kauai’s utility. Co-ops are not on the table in this Public Utilities Commission docket, but rejection of the merger will allow that possibility, which deserves equal consideration for the benefit of our business climate and for the public good.
I noticed the recent report of $55 million in quarterly profit by HEI, and compare this to a NextEra promise of $60 million in savings throughout five years. All things being equal, under a co-op or public option, this $55 million would go to ratepayers instead of shareholders every quarter. Four quarters, times five years: That’s 20 times the savings.
Of course, this is not the whole story and our savings will be much more because a co-op’s capital costs will be much less with the availability of cheap co-op financing, which has benefited hundreds of utility co-ops nationwide.
And even bigger savings will result from a change in incentives. Currently, the private utility is rewarded for spending as much as can be justified, thus increasing its profit. Under a public or co-op model, this perverse incentive is removed, and the utility will be motivated to save money instead of maximizing spending.
As a businessperson concerned about our state’s bottom line, I urge the PUC to reject the merger and allow a brighter future for our state’s businesses and residents.
State Sen. Russell Ruderman
Board member, Hawaii Island Energy Cooperative
Turn signals needed
Once again, I beseech you, Mr. Mayor (Billy Kenoi): Please install left-turn arrow lights at the very busy intersection of Puainako Street and Kilauea Avenue.
Many other intersections along Kilauea between West Kawailani Street all the way down to Mohouli Street, where traffic is not as bad as the Puainako and Kilauea intersection, have left-turn arrow lights.
Also, traffic lights are badly needed on Makaala Street between the areas of the entrances to Wal-Mart and the Prince Kuhio Plaza. If these plans are already in the works, then please publicize this information through the media so we don’t have to keep nagging you over and over.
Rick LaMontagne
Hilo