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Tuesday, July 19, 2016
Hawaiian Electric Will Move Forward as an Independent Company
By News Release @ 2:00 PM :: 4048 Views :: Energy

Hawaiian Electric Industries Will Move Forward as an Independent Company

Financially Strong and Well-Positioned for Long-Term Success; HEI reaffirms 2016 EPS Guidance

Hawaiian Electric Companies Will Continue Transforming and Enhancing Customer Experience Through Innovation and Renewable Energy Strategy

American Savings Bank to Remain Part of Hawaiian Electric Industries and Continue as a Leading Financial Institution Serving and Investing in Hawaii

News Release from Hawaiian Electric

HONOLULU, July 18, 2016 -- 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.

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Totally Related: Biofuel Shell Game: How Giant Diesel Plant Became part of Hawaii's 'Clean' Energy Future

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