HONOLULU, July 18, 2016 /PRNewswire/ -- Hawaiian
Electric Industries, Inc. (NYSE: HE) (HEI) today reaffirmed its
financial and operational strength as a stand-alone company and its
2016 earnings per share guidance range of $1.62 to $1.75 per share. HEI further outlined
its plans for the future as an independent company, following the
termination of its proposed merger with NextEra Energy.
As previously disclosed, the spin-off of American Savings Bank
(ASB) was contingent upon the completion of the combination of HEI
with NextEra Energy. With the termination of that transaction, the
spin-off of ASB is not contemplated at this time.
Under the terms of the merger agreement, NextEra Energy will pay
HEI a $90 million termination fee and
up to $5 million for reimbursement of
expenses associated with the transaction. After payment of taxes,
the net amount of $60 million will
help to fund Hawaii's clean energy
transformation, including the 2016 plan to invest approximately
$145 million into Hawaiian Electric.
A special, one-time cash dividend of 50
cents per share of HEI common stock, which would have been
paid had the merger closed, will not be issued.
"While the merger would have provided significant benefits for
Hawaii, HEI remains a strong
company that is well-positioned to achieve our goals and provide
long-term value for our customers, community, employees and
shareholders," said Connie Lau,
HEI's president and chief executive officer and chairman of the
boards of Hawaiian Electric and American Savings Bank. "At
Hawaiian Electric, we will continue to transform, innovate, and
execute on our vision to empower our customers and communities with
affordable, reliable, clean energy. ASB will continue to serve and
invest in Hawaii, helping
residents and businesses grow and prosper. All of us at HEI look
forward to working together with communities across our state to
realize the clean energy future we all want for Hawaii and to ensure a vibrant local
economy."
"Our 1200 teammates work hard every day to deliver our vision to
be a great bank making people's dreams possible," said Rich Wacker, ASB's president and chief executive
officer. "ASB is proudly rooted in Hawaii, and our business has always been
supporting local families and businesses. While we are
disappointed to lose the benefits this opportunity presented for
ASB, there is no change in our focus to operate a high-performing
financial institution and to always be a great place to bank and
work."
"Even before the merger process began, the Hawaiian Electric
Companies were working to stabilize and reduce energy costs,
modernize and improve our electric grids, support new options, such
as electric vehicles, add more value for our customers, and expand
a diverse portfolio of clean energy sources," said Alan Oshima, Hawaiian Electric's president and
chief executive officer. "Throughout the merger process we remained
focused on those plans, and that work continues, as does the work
we're committed to do with our community to achieve our common
objective: a clean energy future that promises benefits for
everyone."
Hawaiian Electric continues to fully support Hawaii's goal of generating 100 percent of the
state's electricity from renewable sources while ensuring that it's
achieved at a reasonable cost for customers and that safe, reliable
electric service is maintained. The company reached a record 23
percent of energy needs from renewable generation in 2015 – well
ahead of the 15 percent clean energy goal. This achievement
includes attaining 49 percent renewable energy on Hawaii Island and
35 percent renewable energy across Maui
County.
Hawaiian Electric has a number of clean energy initiatives in
progress, subject to regulatory approval, including:
- A proposed foundational smart grid project for modernizing the
company's wireless communication network, including installation of
smart meters, a customer web/mobile portal, expansion of its outage
management system, and other enhanced technology to improve
customer service and facilitate the integration of more renewable
energy;
- Future requests for proposals for a variety of renewable energy
projects with a combined capacity of about 330 megawatts (MW) to be
developed by 2022;
- Demand response programs to allow customers to provide energy
services to the grid to help maximize the reliable integration of
renewable energy while lowering customer costs;
- Energy storage options, including both utility-scale systems,
energy storage integrated with rooftop PV systems, and pilot
programs evaluating new technologies;
- Community-Based Renewable Energy programs to allow customers
who cannot or choose not to take advantage of rooftop solar to
receive the benefits of participating in a renewable energy
program;
- Microgrids at military facilities interconnected to the utility
grid that provide resiliency and energy security for all customers
by using diversified locations for firm generation. This includes a
50-MW Schofield Generating Station, powered by a biofuel blend,
scheduled to be in service by late 2017;
- Electrification of transportation initiatives that will
facilitate the use of renewable energy as a substitute fuel for
transportation, providing customer value, a clean environment and
room for more distributed energy.
Hawaiian Electric Industries
Hawaiian Electric Industries (NYSE: HE) (HEI) supplies power to
approximately 95% of Hawaii's
population through its electric utilities, Hawaiian Electric
Company, Inc., Hawaii Electric Light Company, Inc., and Maui
Electric Company, Limited, and provides a wide array of banking and
other financial services to consumers and businesses through
American Savings Bank, F.S.B., one of Hawaii's largest financial institutions.
In a changing world, the Hawaiian Electric Companies are taking the
lead in adding renewable energy and developing energy solutions for
their customers to achieve a clean energy future for Hawaii. HEI has been named one of "America's
100 Most Trustworthy Companies 2015" by Forbes. American Savings
Bank has been named one of the best places to work by American
Banker and Hawaii Business and the best workplaces for women and
diversity by Fortune. For more information, visit these
websites: www.HEI.com, www.HawaiianElectric.com,
www.ASBHawaii.com.
Forward Looking Statements
This release may contain "forward-looking statements," which
include statements that are predictive in nature, depend upon or
refer to future events or conditions, and usually include words
such as "will," "expects," "anticipates," "intends," "plans,"
"believes," "predicts," "estimates" or similar expressions. In
addition, any statements concerning future financial performance,
ongoing business strategies or prospects or possible future actions
are also forward-looking statements. Forward-looking statements are
based on current expectations and projections about future events
and are subject to risks, uncertainties and the accuracy of
assumptions concerning HEI and its subsidiaries, the performance of
the industries in which they do business and economic and market
factors, among other things. These forward-looking statements are
not guarantees of future performance.
Forward-looking statements in this release should be read in
conjunction with the "Forward-Looking Statements" and "Risk
Factors" discussions (which are incorporated by reference herein)
set forth in HEI's Annual Report on Form 10-K for the year ended
December 31, 2015 and HEI's future
periodic reports that discuss important factors that could cause
HEI's results to differ materially from those anticipated in such
statements. These forward-looking statements speak only as of the
date of the report, presentation or filing in which they are made.
Except to the extent required by the federal securities laws, HEI,
Hawaiian Electric Company, American Savings Bank and their
subsidiaries undertake no obligation to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise.
Hawaiian Electric Industries Contacts
Cliff Chen
Manager, Investor Relations and Strategic Planning
808-543-7300
IR@hei.com
A.J. Halagao
Manager, Corporate and Community Advancement
808-543-5889
ajhalagao@hei.com
Hawaiian Electric Company Contact
Lynne Unemori
Vice President, Corporate Relations
808-543-7972
lynne.unemori@hawaiianelectric.com
American Savings Bank Contact
Michelle Bartell
First Vice President, Director of Communications and Community
Advancement
808-539-7906
mbartell@asbhawaii.com
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SOURCE Hawaiian Electric Industries, Inc.