A mega-takeover of a local electric utility. A locally mandated goal to increase renewable energy, including rooftop solar. A wave of opposition from government agencies, community groups and clean-energy advocates.
No, it’s not Florida-based NextEra Energy’s proposed takeover of Hawaiian Electric Industries, but Chicago-based Exelon’s bid for East Coast electric utility Pepco.
In a message from the future, the District of Columbia’s Public Service Commission last week unanimously rejected a deal eerily similar to the deal NextEra has presented to Hawaii. Unlike a request to increase rates, which “lasts only until the next rate case,” D.C.’s commission understood that “[t]his decision is forever.” Approving the takeover would be all but permanent and irrevocable.
We are in the same position here. If we sell out HECO now, we can’t change our minds later, which is why we must be “sure we’re sure” that NextEra would be the right buyer.
Like Hawaii, D.C. has set an ambitious renewable energy target: 50 percent by 2032, including more “distributed generation” like rooftop solar.
But D.C.’s commission noted that Exelon, like traditional utilities, makes money by generating power and selling it to customers, not by maintaining the electric grid to connect customers who produce their own solar power. To the commission, that’s an “inherent conflict of interest.”
Hawaii’s renewable energy goal of 100 percent by 2045 is even more ambitious, and Gov. David Ige and others have emphasized the need for new business models and markets to achieve that goal. But NextEra’s utility, Florida Power & Light, is a classic old-fashioned monopoly that opposes market competition and customer choice. Next-Era is a utility of the past, not of the future.
D.C.’s commission also criticized the lack of detail Exelon provided in its takeover attempt.
The commission emphasized it “must make [its decision] based on the record before it, not based on aspirational goals that cannot be demonstrated.”
Here in Hawaii, NextEra has refused to share its plans until after the takeover is approved — and state regulators surely cannot accept NextEra’s promises as a substitute for a concrete and credible plan to achieve our 100 percent renew-able goal.
Exelon’s takeover in D.C. would have removed local control of vital electric service. The local utility would have become a “second tier company in a much larger corporation,” Exelon would have imposed an “increased management bureaucracy.”
If running an East Coast utility from Chicago is bad, imagine Hawaii’s utilities being run by a $74 billion goliath 4,851 miles away with more than 900 subsidiaries and thousands of employees in 27 states and abroad.
Finally, the Exelon takeover generated an unprecedented amount of overwhelmingly negative feedback — more than any other proceeding in the commission’s 100-year history.
The Hawaii Public Utilities Commission case on the NextEra takeover has also brought together a record-setting number of parties, all of them critical of the proposal.
We don’t have a second chance to get this right. Like the District of Columbia, Hawaii should take a stand for this generation and many to come, in support of 100 percent clean, 100 percent local clean energy.