Hoku Scientific Inc. (HOKU), a maker and installer of solar power panels, rose after state regulators approved a sales agreement with Hawaiian Electric Co.
Hoku rose 65 cents, or 8.3 percent, to $8.46 a share and in Nasdaq Stock Market composite trading. The shares have doubled in the past year.
Under the agreement, Hoku will install, own and operate a 218-kilowatt photovoltaic system at a Hawaiian Electric facility and sell the power to the utility over 20 years, Kapolei, Hawaii-based Hoku said in a statement. Hoku will also receive renewable energy tax credits from the solar project.
Hawaii generates more than half of its power with imported oil and has the highest electricity prices in the U.S. At 20.7 cents per kilowatt-hour, Hawaiians pay more than double the national average of 8.9 cents, according to the U.S. Energy Department.
Hoku plans to install the system by the end of the year. Hawaiian Electric has an option to purchase it from Hoku after five years.
Hawaiian Electric, a unit of Honolulu-based Hawaiian Electric Industries Inc. (HE), supplies power to 95 percent of the state's 1.2 million residents.
To contact the editor responsible for this story: Dan Stets at email@example.com.