PUC Vetoes Nextera Energy Inc.'s $2.6 Billion Hawaiian Electric Industries' Deal

Jul 18, 2016, 07:30 ET from Chelmsford Park SA

NEW YORK, July 18, 2016 /PRNewswire/ --

Stock-Callers.com covers Hawaiian Electric Industries Inc. (NYSE: HE) and NextEra Energy Inc. (NYSE: NEE) story as the takeover of Hawaiian Electric Industries is being deemed as not to be in the public's interest. Read more about these stocks by accessing today's publication at:



The Hawaii Public Utilities Commission (PUC) vetoed the takeover of Hawaiian Electric Industries Inc. by Florida-based NextEra Energy Inc. (NYSE: NEE) on July 15, 2016 as the regulatory panel believes that the proposed transaction is not in the interest of state. Among other reasons, PUC raised concerns about the risks and benefits to utility customers, and Next Era's clean-energy commitments to help the state achieve its aggressive goal to become more energy self-sufficient.

Stock-Callers.com's free coverage of HE and NEE is accessible by signing up to http://stock-callers.com/registration

NextEra Energy, a Fortune 200, clean energy company, had campaigned since December 2014 to seal the takeover deal with Hawaiian Electric Industries, which provides nearly 95% of the energy needs of the Hawaiian Islands through Hawaiian Electric, Maui Electric, and Hawai'i Electric Light. Register today and read our free publications at:


The real deal 

Hawaii is one of the states that are leading the national trend in investments in clean energy as it aims to be 100% renewable by 2045. The NextEra and Hawaiian Electric merger had the potential of being one of the biggest deals in the island's history. Hawaii residents pay one of the highest amounts of per kilowatt-hour for electricity in U.S. as the state is heavily dependent on imported oil to meet its energy requirements.

Under the terms of the deal NextEra was going to take over the operations and running of Hawaiian Electric, and Hawaiian Electric's bank subsidiary - American Savings Bank would be spun off and run as a standalone company.

NextEra felt that it put forth its best offer in terms of lower energy rates that could lower the islands' energy bills. The company had also promised to not lay off any employees for a period of two years after the closure of the sale.

Reasons for Opposition 

Opponents of the deal stated that a big Florida-based company like NextEra would not be a good fit for Hawaii as it would form a miniscule part of the company's overall operations. Governor David Ige was quoted in an article on News of Hawai, stating that the company's aim to convert some HEI power plants to liquefied natural gas would only delay the state's move to renewables. According to Bloomberg, the regulatory panel raised concerns about the benefits to ratepayers, the loss of local control of the utility and the companies' commitments to deploying rooftop solar systems.

From the early stages of the deal, the Governor, state, and county officials had major reservations and favoured exploring alternate local opportunities. The deal was also opposed by almost all environmental, consumers, and local business parties. Lawmakers and consumers were in favour of a modern-day energy infrastructure with the goal of involving local partners that support the islands aim of clean energy production and economically strengthening its consumers.

Stock Performance 

NextEra's shares closed July 15, 2016 trading session at $127.58, up by 0.27% with a total of 1.35 million shares changing hands. NextEra's shares have gained 9.44% in the past three months and 24.64% since the beginning of the year. Hawaiian Electric Industries' shares gained 0.87% to close at $32.48. Shares of Hawaiian Electric Industries are up 14.48% since the beginning of 2016.

Stock Callers: 

Stock Callers (SC) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. SC has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below. 

SC has not been compensated; directly or indirectly; for producing or publishing this document. 


The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email info@stock-callers.com . Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by SC. SC is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.


SC, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. SC, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, SC, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice. 


This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither SC nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit


CONTACT For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at: Email: info@stock-callers.com Phone number: +44 330 808 3765 Office Address: Clyde Offices, Second Floor, 48 West George Street, Glasgow, U.K. -G2 1BP

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE Chelmsford Park SA