Electrical merger draws ire, support in Wednesday hearing

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How to keep energy costs down dominated the public hearing at Kealakehe High School on a possible merger between Hawaii Electric Company and Florida-based NextEra Wednesday night.

How to keep energy costs down dominated the public hearing at Kealakehe High School on a possible merger between Hawaii Electric Company and Florida-based NextEra Wednesday night.

The hearing was organized by the Hawaii Public Utilities Commission, part of a series running across the state.

NextEra initiated the merger with the local corporation, saying they will lower energy costs, provide greener energy and save an average of $300 a year for households for the first 40 years.

Retail electricity in Hawaii across all sectors stood at 26.46 cents a kilowatt hour in June, against a national rate of 10.3, according to federal figures. That represents a drop from a high of 36.7 cents a kilowatt hour in June 2012, when national rates were 10.15 cents.

Sonny Poindexter, a carpenter, said he supports the merger.

“It will build a better company” by combining NextEra’s expertise with HECO’s local roots, he said.

He compared it to the arrival of Costco on the island, which he credited with lower food and gas prices.

The Hawaii Carpenter’s Union is in support of the measure, said Max Newberg, a field representative for the union.

He said it was the best way to reign in energy costs, especially with NextEra’s expertise.

There were doubts that a merged company would actually advance those benefits.

Instead, the idea of an electrical cooperative, a program where all ratepayers are equal voting members of the group, received repeated support.

David Brinkman, a coffee farmer, said it would bring an end to the conflict between shareholders, who want to turn a profit, and consumers, who want lower prices and high-quality service.

Finally there was doubt about the company’s green energy potential.

The state has committed to using only green energy by 2045.

Russ Robinson, who worked in geology and energy development, said NextEra’s history of opposition to solar panels shows they will not actually aid in that goal.

“I don’t think this leopard can change its spots and be a green gecko, here in Hawaii,” he said.

Donna Oba of North Kohala said she was neutral on it, in part because NextEra has not made their plans clear.

”It’s like someone tells you they’re going to build your house, but won’t let you look at the plans until you sign the contract.”

It’s not required that the commission hold hearings, said Randall Iwase, chair of the commission.

“We were very keen on the idea of public hearings,” he said.

This will give them information from the general public that may not come out in the formal hearing process.

The resolution will be in a “trial-type proceeding,” said Iwase.

If people want to submit comments, they can email puc.comments@hawaii.gov.

The decision is scheduled for Nov. 30.