Hawaii Consumer Advocate recommends rejection of $4.3 billion NextEra-HEI merger

The state’s consumer advocate recommended Monday that the Public Utilities Commission reject the $4.3 million proposed merger of the Hawaii Electric Companies and Florida-based NextEra Energy Inc.

The state Department of Commerce and Consumer Affairs’ Consumer Advocate Jeffrey Ono said in testimony that NextEra had failed to show in its docket before the PUC that the merger would benefit Hawaii energy consumers.

Ono said Monday in a written statement that NextEra had offered “flawed and broad speculative savings estimates, repeatedly touting benefits of millions of dollars in savings for customers.”

However, the company’s filings did not clearly or consistently explain how those savings would become reality.

“These kinds of asserted savings based on NextEra’s faulty calculations effectively overstate the potential benefits of the proposed merger, thereby creating an illusory benefit,” Ono said. “Since our mission is to protect and advance the interests of Hawaii’s consumers, we have serious concerns about this proposed merger.”

Should the PUC opt to approve the merger in spite of the advocate’s recommendation, Ono recommended that several conditions be applied to the companies to protect consumers and to immediately return savings to consumers.

The Hawaii Electric Companies include Hawaii Electric Light Co. on the Big Island, Hawaiian Electric Co. on Oahu, and Maui Electric Co. on Maui.

The Division of Consumer Advocacy is a state agency established to protect and represent consumer interests before the PUC, the Federal Communications Commission, and other local and federal agencies that have regulatory jurisdiction over public utility services, including power generation, telecommunications services, synthetic natural gas, water and wastewater, transportation, and other similar public utility services.

Email Colin M. Stewart at cstewart@hawaiitribune-herald.com.