Governor maintains opposition to NextEra and LNG
Gov. David Ige said Wednesday that he is still opposed to NextEra Energy Inc.’s proposed $4.3 billion purchase of Hawaiian Electric Industries and the state’s use of liquefied natural gas for electrical power generation.
Ige spoke about energy issues in a telephone interview with the Honolulu Star-Advertiser, saying he still doesn’t believe Florida-based NextEra is the right partner for Hawaii.
“I still feel that is not a good fit,” Ige said. “It is about finding a company or a partner that really is committed to a new business model for a utility. One that is focused on 100 percent renewables, rather than having a large traditional utility acquire Hawaiian Electric Co.”
Ige said the state wants an electric utility that will be “nontraditional and innovative.”
Ige also said he is still against using LNG to supply HECO’s power plants.
“I will not support LNG for electrical generation,” the governor said. “I think we should be focused on 100 percent renewable and LNG is clearly not a renewable fuel.”
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In August, Ige said he was opposed to the use of LNG because it is a distraction from the state’s 100 percent renewable electric-generation goal and that his administration would actively oppose it.
Last month Hawaii Gas — the state’s only gas utility — said it has a binding $200 million bid from an LNG supplier to build the infrastructure needed to bring large quantities of LNG into the state. Hawaii Gas says LNG is cleaner and less expensive than the low-sulfur fuel oil and coal now burned in Hawaii power plants.
Alicia Moy, president and CEO of Hawaii Gas, said Tuesday she wants to meet with Ige to discuss the advantages of LNG. She said the last time the utility met with him was before he was elected governor.
“We haven’t taken him through the results of our findings,” Moy said.
Ige said he has not yet reviewed Hawaii Gas’ detailed plans but is open to sitting down with the utility.
“I did not look at the bid, so I am not exactly certain about what is in it,” the governor said. “I obviously am willing to listen. … I’ve been open to meet and talk with anyone who wants to talk about (LNG).”
Still, Ige said he wants the state’s focus to remain on the renewable goals and he can’t spare the staff that would be needed to look into approving LNG.
“From our perspective it has to do with what involvement would be required from the state in terms of reviewing, regulating and overseeing any investment that is required for LNG,” he said. “If there is not anything required, no permitting or any of that … that would be great. I don’t want to have the focus of our employees be tied up with approving LNG terminals. Because I do anticipate there will be lots of concern raised in the communities.”
Moy said the utility has not submitted plans with state regulators and is waiting to share the plans in detail with all of the necessary players before moving forward.
HECO is also seeking to bring LNG to the state despite the governor’s opposition. The utility said in January it is in the final stages of reviewing a request for proposals and is evaluating LNG suppliers.
However, HECO said the utility is open to learning more about Hawaii Gas’ plans if they will reduce costs for customers and are consistent with state policy.
Ige’s comments on NextEra came as the state Public Utilities Commission continued to hold hearings at a Blaisdell Center conference room to review the proposed sale of HEI. The trial-like hearings from 9:30 a.m. to 5 p.m. are open to the public and will continue until at least Wednesday.
17 responses to “Governor maintains opposition to NextEra and LNG”
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LNG is generally considered cleaner and cheaper than the bunker oil Hawaii currently uses for much of its electricity production. As long as the utilities keep to the renewable plan, it’s a win-win for Hawaii consumers. The governor, however, seems to digging in his feet on this. Why can’t he be so determined when it comes to TMT, dengue control, or incompetent bureaucrats? This guy has his priorities all wrong.
In the anticle, the governor says that there will be lot of public opposition to LNG and it will tie up his staff to study the problem.
There is nothing to study, Ige is just making excuses to be obtuse. LNG is a proven environmentally friendly fuel compared to foreign oil.
Time to tell Ige to do as he is told by the people, quit flip flopping as he did with the TMT problem.
Glad to read that Governor Ige is taking a stand on this merger. The long term effect on our residents will be severely impacted.
“I will not support LNG for electrical generation,” the governor said. “I think we should be focused on 100 percent renewable and LNG is clearly not a renewable fuel.” So lets continue to burn more expensive oil that is also dirtier because we will need a firm energy source to complement intermittent renewables. This governor is a puppet and needs to make his own decisions and not listen to people like Robbie Alm
It may not be renewable, but that which is not captured and used is usually burned at the production site as a side effect of oil extraction. So until the pipe dream of fossil fuel free generation is realized, using LNG is far superior to other options. Think how much difference there is between the coal fired, garbage fired and oil fired generation and LNG.
Robbie Alm is voting against his own interest.
Which then begs the question why are you so anti Robbie Alm?
Ige lacks the expertise to make the pronouncements that he is. Yes, someone is writing his speeches. He has been a dud so far.
Also for an engineer he doesn’t seem to bright. LNG can be a renewable fuel, because methane (natural gas) can be a renewable fuel. According to the EPA, more than 54% of all methane emissions in the US are not from fossil fuels, but from agriculture, waste processing, and similar ongoing, sustainable activities. California has made capture and use of such emissions (as natural gas or CNG) a priority, and credits such use under California’s RPS. In fact, California actually imports biomethane from landfills and farms in other states.
LNG is just liquefied methane. It doesn’t care if the methane is from a natural gas well in Qatar, from a farm in Oklahoma, from a biogas digester in rural India, or from a sewage treatment plant in San Diego. Methane is methane, and LNG should really be called LMG–Liquefied Methane.
The governor should stick to governing and not threatening to obstruct commerce by preventing State agencies from doing their jobs. If you are that committed to your 100% renewable goal, you don’t understand that it is really only 50%, and the other half comes from fossil fuel. LNG saves money, period.
The guv is right in his opposition to the NextEra buyout of HECO but wrong on his opposition to LNG.
Yes the goal is to eventually move to 100% renewable energy generation but that is a very long term prospect with the technology still not up to snuff and needing development.
In the meanwhile, anyone with half a brain will realize that we will need a transition energy source which is LNG.
Government should not continue to meddle and pick winners and losers but allow the free market to work as it will as long as government does not meddle in the process.
I do not know what the guv is smoking but he needs to sober up and work cooperatively with the private sector.
If he is opposed to LNG, just what does he propose to meet our energy needs and how does he plan to get there.
And don’t forget that the energy source will need to be economically feasible and affordable.
well said. We do need a reliable transition energy source that is cheaper and cleaner than oil. It will take decades to gradually transition to renewables. Ige lacks credibility in this matter and, so far, all others.
I am probably wrong on this, but I think Governor Ige’s opposition to HECO and LNG has more to do with him holding HECO accountable and keeping it’s feet to the fire more than anything. Look at what has happened so far since he has taken office: the public has been invited and even encouraged to attend the PUC hearings regarding the proposed HECO-NextEra merger. This is something I cannot recall ever happening in my decades in Hawaii.
This is what he says in the article. He wants to change the public utility business model…
“I still feel that is not a good fit,” Ige said. “It is about finding a company or a partner that really is committed to a new business model for a utility. One that is focused on 100 percent renewables, rather than having a large traditional utility acquire Hawaiian Electric Co.”
Ige said the state wants an electric utility that will be “nontraditional and innovative.”
Can the legislature do this?
Totally agree. The Governor is not opposed to LNG because it will distract his State Agencies. He is opposed to nat gas/LNG because he knows and understands that this is a superior fuel to oil which btw will be consumed (even by the States HCEI law) for at least the next 25 years in Hawaii. He doesn’t want people to get used to a cheaper and cleaner burning alternative which in his mind will delay renewables indefinitely (the irony is that natgas in the mainland has allowed for greater renewable penetration overr the last decade but he conveniently ignores that) He is telling us, the average citizens, that he knows whats best for us and he will do whatever he can do to get us there at any cost. The Gov and his “Advisers” are letting emotions and arrogance get in the way of the best interest of the citizens. Why not let the facts speak for themselves and make a rational decision before declaring your position based on emotion?? That is not the sign of a leader. The facts say that LNG will save consumers hundreds of millions of dollars a year, it would be nice to spend some of that money cooling our children’s classrooms or housing the homeless.
Ige has always been way behind the power curve, a follower, not a leader. USA LNG is the best option for the Nei compared to buying foreign oil. It is far cleaner and the money goes back to the USA versus middle eastern countries.
One has to wonder why Ige can’t see the advantages to using our own fuel versus imported. Is he willfully being obtuse or just hasn’t got a clue? I’m thinking the latter.
We need to ensure he is a one term bureaucrat, goes into retirement after his term is up. The Nei needs a true leader with high ethical and moral standards, leads by example, gets the job done. Clearly the current governor isn’t cutting it.