Energy developer sues Hawaiian Electric, NextEra Energy for $555M

Pacific Business News, December 2, 2016

Article by Duane Shimogawa

The developer of a $225 million biomass plant on the Big Island of Hawaii that is about 50 percent complete filed a civil complaint this week against Hawaiian Electric Industries Inc.,  NextEra Energy Inc. and Hamakua Energy Partners LP for alleged anticompetitive and illegal conduct related to the termination of the developer’s power purchase agreement.

The agreement on the 21.5-megawatt project had been approved by the Hawaii Public Utilities Commission in late 2013, but Hawaiian Electric Co. subsidiary Hawaii Electric Light Co. terminated the agreement after the utility claimed that the developer missed several deadlines that were part of the agreement between the two companies. Hawaiian Electric Industries is the parent of Hawaiian Electric.

John Sylvia, CEO of Hu Honua, previously told PBN that the only current barrier it faces is HELCO’s unwillingness to negotiate an amendment to their existing power purchase agreement.

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