Randy Iwase, chairman of the state Public Utilities Commission, questioned why NextEra Energy Inc. has not made a written commitment to maintain benefits for Hawaiian Electric Industries retirees.
Iwase raised the retiree benefits issue Thursday, the eighth of 12 scheduled days of hearings to review NextEra’s planned $4.3 billion purchase of Hawaii’s largest utility. The PUC must approve the sale for it to close.
“I just wanted to point out and clarify what retiree benefits are covered, and what we learned today is that they are not,” Iwase said. “(The commitments) they asserted are reasons why this merger meets public benefit, and right now, clarified today in my questions, there is no commitment with respect to retiree benefits, specifically other post-employment benefits, which includes the health fund.”
NextEra said the reason the company didn’t include retiree benefits in its written commitments is because it always planned to maintain existing benefits offered by HECO without any change. NextEra submitted a list of 85 commitments to the PUC to bolster support for its purchase of HEI. Those commitments include saving customers $60 million over the next four years as well as no involuntary workforce reductions of HECO employees for at least two years post-closing. The commitments have been a focus of the hearings.
“The issue of retiree benefits was never an issue given that we were simply stepping into the shoes of the existing benefits from Hawaiian Electric,” said Rob Gould, NextEra vice president and chief communications officer. “Hawaiian Electric retirees, just like Hawaiian Electric customers, stand to benefit from a financially stronger company. That would be the case, assuming merger approval.”
Iwase asked Tayne Sekimura, HECO’s chief financial officer, what commitments NextEra would make to HECO retirees, specifically what health care benefits.
Sekimura said she was not aware of any plan to change benefits for retirees.
“You can say there are no plans, but someone could also argue that there are many plans (that will) change,” Iwase said. “We can look only at the document (the 85 commitments). We can look only at the language. We look only at the promise that this document is supposed to be, which is commitments to people and organizations. … Retirees are not mentioned.”
Today is the last day of hearings this week at the Neal S. Blaisdell Center. The hearings will resume Monday and Tuesday, and conclude on Wednesday. Iwase has said the hearings will likely continue into January and possibly February. A live cablecast of the 9:30 a.m.-to-5 p.m. hearings can be viewed on Olelo 49.
