NextEra Energy to Acquire Hawaiian Electric Industries

---

Researched by Industrial Info Resources (Sugar Land, Texas)--NextEra Energy Incorporated (NYSE:NEE) (Juno Beach, Florida), the parent company of Florida Power & Light and North America's largest generator of wind and solar power, will take over Hawaii's biggest electricity company in what NextEra sees as a proving ground for its push into green energy.

In a state with the most expensive electricity rates in the nation, Hawaiian Electric Industries (NYSE:HE) (Honolulu) has been particularly vulnerable to challenges by solar power. As customers opt to generate their own electricity from rooftop systems, the utility has said it aims to cut rates 20% during the next 15 years by increasing renewable energy to 65% of its electricity mix. About 11% of Hawaiian Electric's customers have rooftop solar systems, the highest penetration in the U.S., according to the utility owner.

Industrial Info is tracking $179 million in active projects involving Hawaiian Electric Industries, including the $100 million, three-phase construction of the Kihei Biodiesel Station in Wailuku. The facility is designed to produce algae oil feedstock at 3,800 gallons per acre; utilize C02 from the power plant; and sell fuel for power production.

As part of the deal, Hawaiian Electric will spin off the parent of American Savings Bank. Including an $8-per-share estimated value for the bank spinoff, the deal values Hawaiian Electric at about $33.50 per share, for a total value of about $3.4 billion.

The deal requires approval from state and federal regulators, and shareholders. The transaction is expected to be completed in about one year. NextEra said it will not make any involuntary workforce reductions at Hawaiian Electric for at least two years after the close.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.