NextEra Energy Inc. and Hawaiian Electric Industries Inc. terminated their planned merger after Hawaii’s Public Utilities Commission rejected the deal.
The PUC said Friday it had voted 2-0 against the proposed transaction, after the companies failed to show it was in the public interest. NextEra will now pay Hawaiian Electric a $90 million breakup fee and as much as $5 million for reimbursement of associated expenses, the companies said in a statement Monday.
Analysts had been skeptical about the takeover gaining state approval after Governor David Ige, a Democrat, questioned NextEra’s commitment to Hawaii’s goal of reaching 100 percent renewable power by 2045. Juno Beach, Florida-based NextEra is the largest wind and solar generation owner in North America.
"We appreciate NextEra Energy’s interest in Hawaii and in our company," said Connie Lau, Hawaiian Electric’s chief executive officer. “We look forward to working together with communities across our state to realize the clean energy future we all want for Hawaii.”
The decision may allow NextEra to concentrate on its pursuit of Oncor Electric Delivery Co. The company is said to have submitted a bid to buy the Texas utility, according to people familiar with the talks.