There is a great deal of debate surrounding the proposed merger of NextEra Energy and the Hawaiian Electric Companies. What we must not lose sight of in all of the noise is the fact that Hawaii pays the highest electricity rates in the country and we need to find real ways to bring those costs down to the benefit of residents, businesses and the state.
There is a great deal of debate surrounding the proposed merger of NextEra Energy and the Hawaiian Electric Companies. What we must not lose sight of in all of the noise is the fact that Hawaii pays the highest electricity rates in the country and we need to find real ways to bring those costs down to the benefit of residents, businesses and the state.
I am chairman and CEO of KTA Super Stores on Hawaii Island. To be fully transparent, I also serve on the board of directors of Hawaiian Electric Industries, but I am writing today as a local businessman and on behalf of KTA only. Both KTA Super Stores and I have deep roots in Hawaii. My grandparents opened the first KTA store in 1916 in Hilo and the company has since grown into a business serving local communities. I am proud to be a part of the Hawaiian business landscape and to continue my grandparents’ legacy.
Like all businesses in Hawaii, KTA’s utility costs account for a significant percentage of our expenses every month. We, as well as residents across the state, are faced with these high rates due to Hawaii’s continued dependency on imported oil. We all agree this dependency needs to stop and that we need to lower electricity rates.
The issue is how we get there. All of what we as individuals, businesses and communities want requires financial resources and a high level of technological sophistication.
Hawaii’s electric grid needs investment and improvement. This is a significant undertaking that requires a level of capital that simply does not exist in Hawaii. NextEra Energy has the financial resources necessary to invest in the grid, in power plants, in deploying smart meters to all customers and in Hawaiian Electric’s employees.
Hawaiian Electric stands to benefit from NextEra Energy’s greater purchasing power and borrowing capacity, as well as its technical know-how in the area of renewable energy. We not only want to lower our electricity costs, we also want our business to be able to operate smoothly and be open to serve the people of Hawaii. The financial resources and expertise that NextEra Energy brings would also help improve the reliability of electricity generation.
As a result of partnering with NextEra Energy, Hawaiian Electric would be more efficient, able to accept more renewables onto the grid, improve reliability, reduce our dependency on imported oil and, importantly, lower customer bills.
We need to be realistic. Alone, it will be that much greater of a challenge to achieve the clean energy future and lower electricity rates we all want. The Hawaiian Electric-NextEra Energy merger will help get us there — lower customer bills and on the road to achieving the state’s 100 percent renewable energy goals. Accordingly, I strongly support the proposed NextEra Energy-Hawaiian Electric merger and encourage my fellow community members to do the same.
Barry Taniguchi is chairman and CEO of KTA Super Stores on Hawaii Island and also serves on the board of directors of Hawaiian Electric Industries.
Viewpoint articles are the opinion of the writer and not necessarily the opinion of West Hawaii Today.