HONOLULU, July 18, 2016 /PRNewswire/ -- Hawaiian Electric Industries, Inc. (NYSE: HE) (HEI) today reaffirmed its financial and operational strength as a stand-alone company and its 2016 earnings per share guidance range of $1.62 to $1.75 per share. HEI further outlined its plans for the future as an independent company, following the termination of its proposed merger with NextEra Energy.
As previously disclosed, the spin-off of American Savings Bank (ASB) was contingent upon the completion of the combination of HEI with NextEra Energy. With the termination of that transaction, the spin-off of ASB is not contemplated at this time.
Under the terms of the merger agreement, NextEra Energy will pay HEI a $90 million termination fee and up to $5 million for reimbursement of expenses associated with the transaction. After payment of taxes, the net amount of $60 million will help to fund Hawaii's clean energy transformation, including the 2016 plan to invest approximately $145 million into Hawaiian Electric. A special, one-time cash dividend of 50 cents per share of HEI common stock, which would have been paid had the merger closed, will not be issued.
"While the merger would have provided significant benefits for Hawaii, HEI remains a strong company that is well-positioned to achieve our goals and provide long-term value for our customers, community, employees and shareholders," said Connie Lau, HEI's president and chief executive officer and chairman of the boards of Hawaiian Electric and American Savings Bank. "At Hawaiian Electric, we will continue to transform, innovate, and execute on our vision to empower our customers and communities with affordable, reliable, clean energy. ASB will continue to serve and invest in Hawaii, helping residents and businesses grow and prosper. All of us at HEI look forward to working together with communities across our state to realize the clean energy future we all want for Hawaii and to ensure a vibrant local economy."
"Our 1200 teammates work hard every day to deliver our vision to be a great bank making people's dreams possible," said Rich Wacker, ASB's president and chief executive officer. "ASB is proudly rooted in Hawaii, and our business has always been supporting local families and businesses. While we are disappointed to lose the benefits this opportunity presented for ASB, there is no change in our focus to operate a high-performing financial institution and to always be a great place to bank and work."
"Even before the merger process began, the Hawaiian Electric Companies were working to stabilize and reduce energy costs, modernize and improve our electric grids, support new options, such as electric vehicles, add more value for our customers, and expand a diverse portfolio of clean energy sources," said Alan Oshima, Hawaiian Electric's president and chief executive officer. "Throughout the merger process we remained focused on those plans, and that work continues, as does the work we're committed to do with our community to achieve our common objective: a clean energy future that promises benefits for everyone."
Hawaiian Electric continues to fully support Hawaii's goal of generating 100 percent of the state's electricity from renewable sources while ensuring that it's achieved at a reasonable cost for customers and that safe, reliable electric service is maintained. The company reached a record 23 percent of energy needs from renewable generation in 2015 – well ahead of the 15 percent clean energy goal. This achievement includes attaining 49 percent renewable energy on Hawaii Island and 35 percent renewable energy across Maui County.
Hawaiian Electric has a number of clean energy initiatives in progress, subject to regulatory approval, including:
- A proposed foundational smart grid project for modernizing the company's wireless communication network, including installation of smart meters, a customer web/mobile portal, expansion of its outage management system, and other enhanced technology to improve customer service and facilitate the integration of more renewable energy;
- Future requests for proposals for a variety of renewable energy projects with a combined capacity of about 330 megawatts (MW) to be developed by 2022;
- Demand response programs to allow customers to provide energy services to the grid to help maximize the reliable integration of renewable energy while lowering customer costs;
- Energy storage options, including both utility-scale systems, energy storage integrated with rooftop PV systems, and pilot programs evaluating new technologies;
- Community-Based Renewable Energy programs to allow customers who cannot or choose not to take advantage of rooftop solar to receive the benefits of participating in a renewable energy program;
- Microgrids at military facilities interconnected to the utility grid that provide resiliency and energy security for all customers by using diversified locations for firm generation. This includes a 50-MW Schofield Generating Station, powered by a biofuel blend, scheduled to be in service by late 2017;
- Electrification of transportation initiatives that will facilitate the use of renewable energy as a substitute fuel for transportation, providing customer value, a clean environment and room for more distributed energy.
Hawaiian Electric Industries
Hawaiian Electric Industries (NYSE: HE) (HEI) supplies power to approximately 95% of Hawaii's population through its electric utilities, Hawaiian Electric Company, Inc., Hawaii Electric Light Company, Inc., and Maui Electric Company, Limited, and provides a wide array of banking and other financial services to consumers and businesses through American Savings Bank, F.S.B., one of Hawaii's largest financial institutions. In a changing world, the Hawaiian Electric Companies are taking the lead in adding renewable energy and developing energy solutions for their customers to achieve a clean energy future for Hawaii. HEI has been named one of "America's 100 Most Trustworthy Companies 2015" by Forbes. American Savings Bank has been named one of the best places to work by American Banker and Hawaii Business and the best workplaces for women and diversity by Fortune. For more information, visit these websites: www.HEI.com, www.HawaiianElectric.com, www.ASBHawaii.com.
Forward Looking Statements
This release may contain "forward-looking statements," which include statements that are predictive in nature, depend upon or refer to future events or conditions, and usually include words such as "will," "expects," "anticipates," "intends," "plans," "believes," "predicts," "estimates" or similar expressions. In addition, any statements concerning future financial performance, ongoing business strategies or prospects or possible future actions are also forward-looking statements. Forward-looking statements are based on current expectations and projections about future events and are subject to risks, uncertainties and the accuracy of assumptions concerning HEI and its subsidiaries, the performance of the industries in which they do business and economic and market factors, among other things. These forward-looking statements are not guarantees of future performance.
Forward-looking statements in this release should be read in conjunction with the "Forward-Looking Statements" and "Risk Factors" discussions (which are incorporated by reference herein) set forth in HEI's Annual Report on Form 10-K for the year ended December 31, 2015 and HEI's future periodic reports that discuss important factors that could cause HEI's results to differ materially from those anticipated in such statements. These forward-looking statements speak only as of the date of the report, presentation or filing in which they are made. Except to the extent required by the federal securities laws, HEI, Hawaiian Electric Company, American Savings Bank and their subsidiaries undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Hawaiian Electric Industries Contacts
Manager, Investor Relations and Strategic Planning
Manager, Corporate and Community Advancement
Hawaiian Electric Company Contact
Vice President, Corporate Relations
American Savings Bank Contact
First Vice President, Director of Communications and Community Advancement
SOURCE Hawaiian Electric Industries, Inc.