The community conversation is underway with the executives from NextEra Energy, the Florida-based utility positioned to acquire Hawaiian Electric Industries.
The testimony at the just-concluded series of “listening sessions” around the islands spanned the range of opinions about the proposed sale, which still needs state Public Utilities Commission approval.
The commission’s responsibility at the next stage of deliberations starting in a month — quasi-judicial hearings drawing testimony from 27 official intervenors — is to continue holding the company’s feet to the fire. The PUC must insist on firmer commitments to ratepayers, whose interests trump everyone else’s.
Those voices resonated at the most recent hearing this week, and many of those favoring the deal had ties to labor unions, speaking out about prospects for employment.
That surge of support likely developed after the company’s outreach to labor, especially the electricians’ IBEW Local 1260 who hope for retention of existing jobs and the training opportunities leading to better ones. In addition, the Hawaii Regional Council of Carpenters underscored NextEra promises to preserve jobs for existing employees.
There’s nothing wrong with an agreement to keep employment levels up, but that’s not the only interest that should guide decision-making. It’s not even the principal one.
Rather, the primary objective remains to drive a commitment that best serves the public, both in management of rate increases and in encouraging the most unfettered access to green energy technologies possible.
On that front, the state has adopted an appropriately assertive stance. Gov. David Ige has publicly opposed the deal, with more criticism coming from the state’s energy officials, the PUC’s consumer advocate and from other fronts.
While the solar energy industry has expressed concern that Next-Era’s experience lies more with utility-scale solar projects rather than rooftop installations, the company has garnered support from management as well as labor.
And that includes some heavy-hitters of the Hawaii business world. Just as an example, three luminaries wrote a commentary published Monday in these editorial pages: Christine Camp, CEO of Avalon Group; Stanford Carr of Stanford Carr Development; and Eddie Flores, CEO of L&L Hawaiian Barbecue. Flores also appeared at the public hearings.
It took some sophisticated outreach to persuade such backers, to be sure. But the support also signals the strength of NextEra, and a strong company surely could be an asset to a small state’s energy future.
The HEI electrical grid needs modernization to become a stable environment; with the energy fluctuations that come from participation of residential solar power producers, that is a heavy lift, and a company with NextEra’s capacity is positioned to handle it.
In the final analysis, however, a company with NextEra’s capacity also should be able to offer a stronger deal to ease the financial burden ratepayers bear in the state with the highest electricity rates nationally.
NextEra revised its proposal in August, but state officials were not bowled over. State Energy Administrator Mark Glick has pointed out that NextEra projects savings and economic gains totaling nearly $1 billion to sell the deal but commits only to providing $60 million in consumer benefits over four years.
NextEra can, and should, do better. When hearings begin Nov. 30, it’s up to the state and the intervenors to stand firm, demand answers and drive a hard bargain for the public benefit.
