Hawaii Public Utilities Commission Chairman Randall Iwase had harsh words this week for NextEra Energy Inc. regarding its ongoing $4.3 billion bid to acquire the Hawaiian Electric companies.
Hawaii Public Utilities Commission Chairman Randall Iwase had harsh words this week for NextEra Energy Inc. regarding its ongoing $4.3 billion bid to acquire the Hawaiian Electric companies.
In an opinion attached to a pair of rulings on last-minute requests submitted by NextEra and the Department of Defense, Iwase chastised the Florida-based utility company for behavior he characterized as “deeply concerning” and in “disregard of the commission’s … orders.”
The PUC ruled Monday that the Department of Defense will not be allowed to remove itself as an intervenor in the ongoing regulatory review of the utility merger after striking an “eleventh-hour” agreement with NextEra. Prior to that agreement with NextEra, the Defense Department raised concerns about the utility merger.
The PUC did, however, allow NextEra to include additional commitments to the state and ratepayers into evidence, despite coming after a well-established deadline of Nov. 16.
In a supplemental opinion submitted by Iwase, he argued the timing and manner in which NextEra sought to introduce its revised commitments could unfairly prejudice other parties in the docket.
“Applicants’ attempt to admit Revised Exhibit 37 into evidence on the eve of the evidentiary hearings violates the spirit and letter of the commission’s orders,” he wrote. “Applicants’ last-minute submission left the other parties with no reasonable opportunity to review, much less respond to, Revised Exhibit 37.
“… By changing their transaction commitments at the eleventh hour, Applicants have attempted, either explicitly or implicitly, to negate the other parties’ evidentiary hearing preparations.”
In addition to putting other intervenors in the docket at a disadvantage, Iwase argued the last-minute changes, which came 11 days after the deadline, appeared to point to private negotiations between NextEra and the DOD. That gave rise to “the uncomfortable question of whether the new and revised transaction commitments are in the interest of the public or a single party. To avoid confusion and misunderstanding, such conduct should not be condoned,” he wrote.
In an emailed response to requests for comment, NextEra Vice President and Chief Communications Officer Robert Gould did not directly respond to Iwase’s commentary. However, he said the utility company appreciated the support it recently received from the Department of Defense, as well as other state organizations, including the Hawaii Island Chamber of Commerce.
“We look forward to further explaining the additional benefits for Hawaii customers and communities of our new and improved commitments during the continuation of hearings on Feb. 1,” he wrote.
In the Nov. 27 filing seeking to amend their commitments, NextEra and the Hawaii Electric companies claim the amendments reflect three main changes, all of which are favorable to the state and its electric customers. They include updated deadlines on switching to renewable energy, amounts of rate credits made available to consumers and an updated structure for an intermediate holding company charged with upholding local management and corporate governance.
The evidentiary hearings in the merger review are scheduled to reconvene Feb. 1. Iwase has said the PUC could issue a decision on the merger by June at the earliest.
Email Colin M. Stewart at cstewart@hawaiitribune-herald.com.