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Hawaiian LNG arrangement faces difficulties after negative PUC decision

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LNG Industry,

Fortis’ arrangement to provide LNG to the Hawaiian Electric Companies (HECO Companies) to be used for local power generation has run into difficulties following a recent decision by the Hawaiian Public Utilities Commission (PUC).

In a 2-0 decision, PUC dismissed the joint application from the HECO companies and NextEra Energy for the change of control. Specifically, PUC claims that, although NextEra is willing and able to take over work from the HECO Companies without a loss in performance, the application for the proposed change in control is not in the public interest.

In response to this decision, NextEra and Hawaiian Electric Industries Inc. have stated: “We are in receipt of today’s PUC order and are currently reviewing it.”

In its statement, Fortis admitted that it did not consider the potential of this regulatory decision, and that all parties are currently reviewing the decision.

HECO originally requested approval from PUC in late May 2016, claiming that, if the merger was not approved, HECO would still be interested in pursuing LNG by itself, but that the companies would need to negotiate a new contract.

Edited from various sources by David Rowlands

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