HEI spent $4.7 million on merger costs in first quarter
The equipment being installed by HECO is a step toward grid modernization that will help address some of the issues preventing the utility from accommodating greater amounts of renewable energy on its grid, including solar power.
Hawaiian Electric Industries Inc., the parent company for the state’s largest electric utility, said Wednesday its net income in the first quarter was $31.9 million, down 30 percent from the prior year due in part to costs related to its pending sale.
HEI spent $4.7 million in costs related to its sale to Florida-based NextEra Energy Inc.
The company said earnings per share were 31 cents.
“NextEra Energy has a proven track record of lowering customer bills, and we cannot imagine a better partner to help us accelerate Hawaii’s clean energy transformation," said Constance Lau, HEI president and chief executive officer.
Federal Energy Regulatory Commission approved the sale in March, and shareholders will vote on the merger May 12.
Excluding the pending merger costs, HEI earned $36.6 million or 35 cents per share compared to the year-earlier period when it made $45.8 million or 45 cents per share.
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Lau said the earnings met company expectations.
"First quarter earnings were in line with our expectations. Our utility continues to move ahead with its clean energy transformation and leads the nation with an estimated 12 percent of customers with rooftop solar systems and 21 percent of energy from renewable resources” Lau said. “Working collaboratively and innovatively with industry partners and other interested stakeholders, we can achieve a sustainable clean energy future for Hawaii.”
HEI’s utility subsidiary, Hawaiian Electric Co., earned $26.9 million in the first quarter, down 24 percent from the prior year. HEI said the decline was primarily due to higher operations and maintenance expenses.
