NextEra Energy Inc.’s top official isn’t surprised that the state is opposed to the sale of Hawaiian Electric Industries Inc. and said the review process will show that the Florida-based company will be positive for Hawaii.
Jim Robo, chief executive officer of NextEra, said during the company’s earnings conference call Monday that the company welcomes a second chance to make its case that the sale is in the best interest of customers.
“It was not necessarily a surprise to me that the state filed the kind of testimony that they did,” Robo said after NextEra reported that second-quarter earnings had jumped 45.5 percent to $716 million.
Gov. David Ige said in July he is opposed to NextEra’s purchase of Hawaii’s largest electric utility and recommended that the state Public Utilities Commission reject the deal. Ige’s comments came as two state agencies — the Office of Planning and the Department of Business, Economic Development and Tourism — filed testimony to the PUC arguing that the sale of HEI to NextEra, as currently structured, “should not be approved.”
“I think the key words (in the state’s opposition were) ‘in its current form,’” Robo said. “The state also listed several conditions that would be, I think, just positive for them to think about changing their view. We’re in the process of responding to that testimony, and we think we have a strong case to put forward to the commission around the benefits of customers. The benefits to customers are actually pretty compelling, and I think we’re going to be able to make that case as we go forward.”
Robo said the company is looking forward to the hearings in December to make its case to the PUC.
While waiting for the PUC’s decision, NextEra’s businesses continue to perform well.
The company said last quarter’s earnings rose sharply from $492 million in the year-earlier period primarily due to continued investment in its utility subsidiary and additional new investments in its contracted renewable-energy businesses. The company had earnings per share of $1.59, compared with $1.12 a share in the year-ago period.
NextEra subsidiaries Florida Power & Light and NextEra Energy Resources also had good quarters.
Florida Power & Light, the electric utility owned by NextEra Energy, reported a profit of $435 million, or 97 cents a share, up from $423 million, or 96 cents a share, in the year-earlier period. The growth was driven by continued investment in the business and recent regulatory approval for natural-gas investments, Robo said.
“FPL performed very well operationally during the quarter, continued to invest in the business to deliver even more value to customers, and received regulatory approval to pursue future investments in natural-gas production that can help protect its customers against future price volatility,” he said.
NextEra Energy Resources, NextEra’s energy business, posted a profit of $273 million, or 61 cents a share, compared with $81 million, or 18 cents a share, in the year-earlier period.
In the earnings call, Robo said partner company NextEra Energy Partners signed an agreement to buy seven natural-gas pipelines located in Texas.
“I am very pleased with NEP’s announced acquisition of seven high-quality and long-term contracted pipeline assets in Texas,” he said. “When combined with Sabal Trail, Florida Southeast Connection and the Mountain Valley Pipeline, the transaction is expected to expand our scale and scope in the natural-gas pipeline space, serving as a platform for future growth.”
