application for approval of the proposed change of control and

8/9/2019 Application for Approval of the Proposed Change of Control and ...

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I. INTRODUCTION

On December 3, 2014, an Agreement and Plan of Merger (Agreement) was

entered into for the purpose of transferring control of the Hawaiian Electric Companies

from Hawaiian Electric Industries, Inc. (HEI) to Hawaiian Electric Holdings,3a wholly

owned subsidiary of NextEra Energy, as further described in Exhibit 1, attached hereto

and incorporated herein by reference.4 Pursuant to the Agreement, and subject to

various conditions, including approval by the Commission, Hawaiian Electric Holdings

will combine/merge with HEI. Hawaiian Electric Holdings will survive as the parent

company of the Hawaiian Electric Companies, with NextEra Energy as the sole

manager of Hawaiian Electric Holdings.5 Charts depicting the parties to the transaction,

on a pre-combination and post-combination basis, are included in Exhibit 2, attached

hereto and incorporated herein by reference.6

The Hawaiian Electric Companies and NextEra Energy seek Commission

approval of the Proposed Change of Control and related matters, as set forth below.

A li t tf ll b it th t th P d Ch f C t l h ld b d


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will continue to be fit, willing, and able to provide and perform their respective utility

services following the Proposed Change of Control. Indeed, the Proposed Change of

Control is expected to improve the financial status of the Hawaiian Electric Companies,

result in lower costs and customer savings, strengthen and accelerate the Hawaiian

Electric Companies clean energy plans and transformation, and enhance the Hawaiian

Electric Companies ability to continue providing safe and reliable service to their

customers. By combining with NextEra Energy, a national leader in clean energy, the

Hawaiian Electric Companies can move faster to accomplish the more affordable, clean

energy future that the companies are working hard to achieve. Given these

contemplated benefits, as well as other benefits to the customers and communities

served by the Hawaiian Electric Companies discussed below, approval of the Proposed

Change of Control is reasonable and consistent with the public interest.

I.A. Overview of Applicants and the Proposed Change of Contro l and its

Benefits

The Hawaiian Electric Companies have been providing electric service to their


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Resources, LLC, which together with its affiliated entities (NextEra Energy

Resources), is North Americas largest producer of renewable energy from the wind

and sun.

NextEra Energy owns and operates more than 44 gigawatts of generating

capacity primarily across 27 states and Canada as of September 30, 2014, as well as

approximately 8,300 circuit miles of high-voltage transmission, 67,000 miles of

distribution lines, and 750 substations across North America. NextEra Energy has over

50 years of North American and international experience and technical expertise in

engineering, constructing, operating, and maintaining large-scale infrastructure assets

(over $72 billion in aggregate).

FPL serves approximately 4.7 million customers in a state that, like Hawaii, has

no indigenous fossil fuels. FPL was once the largest consumer of oil among all

U.S. utilities. Since 2001, FPL has reduced its reliance on foreign oil by more than

99%, improved its overall fuel efficiency by 20%, and saved its customers more than


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brings all the capabilities of a renewable energy leader, including the resources to

strengthen and accelerate the Hawaiian Electric Companies clean energy

transformation. Together, FPL and NextEra Energy Resources have completed

95 major capital projects totaling over $24 billion since 2003, overall on time and under

budget. NextEra Energy has been recognized by third parties for its efforts in

sustainability, corporate responsibility, ethics and compliance, and diversity, and has

been named No. 1 overall among electric and gas utilities on Fortune magazines list of

Worlds Most Admired Companies for eight consecutive years, which is an

unprecedented achievement in its industry.7

The NextEra Energy organization possesses the technical, managerial, and

financial resources to:

Ensure continued safe and reliable electric service to the Hawaiian ElectricCompanies customers;

Strengthen and accelerate the Hawaiian Electric Companies clean energyplans and transformation; and

D li b t ti l l t th H ii El t i C i t


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Is North Americas largest generator of renewable energy from the wind andsun;

Owns and operates a top-rated utility (FPL) in terms of efficiency and cost ofservice;

Has extensive experience developing, constructing, and operating clean,reliable power generation;

Is an experienced developer and operator of transmission infrastructure;

Has demonstrated its ability to deliver capital projects, overall on time andunder budget;

Has strong capital resources and financial capabilities that can support theHawaiian Electric Companies systems; and

Is committed to building partnerships and engaging collaboratively with

community and non-governmental organizations to meet the needs ofHawaii in a culturally respectful, innovative, and environmentally sensitivemanner.

NextEra Energy and the Hawaiian Electric Companies share a commitment to

delivering safe, clean, reliable, and affordable energy to their customers, while being

active supporters of their local communities,8 responsible stewards of their

shareholders capital and the employer of choice for a highly skilled and engaged


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continue to support and further enhance the Hawaiian Electric Companies leadership

role. NextEra Energy shares the Hawaiian Electric Companies vision of increasing

renewable energy, modernizing the grid, reducing Hawaii's dependence on imported

oil, integrating more rooftop solar energy and, importantly, lowering customer bills.

Hawaii's reliance on oil and its prolific renewable resources create a unique opportunity

to provide value to customers through economic clean energy. The Hawaiian Electric

Companies are addressing unprecedented renewable integration challenges at the grid

and system-levels, years in advance of mainland utilities. NextEra Energys strengths,

as outlined in greater detail in the body of this Application, are in many areas additive to

the capabilities of the Hawaiian Electric Companies, thus creating an opportunity to add

value in Hawaii's strategically important energy industry.

Addressing the challenges and opportunities associated with Hawaii's clean

energy transformation will require, among other things, access to significant capital.

The capital requirements of the Hawaiian Electric Companies are exacerbated by the


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The Proposed Change of Control offers the Hawaiian Electric Companies an

opportunity to maintain reliability, community, and charitable support and other benefits

created through continued local involvement in the management and operations of the

utilities, while gaining new financial strength and resources. Upon completion of the

Proposed Change of Control, the Hawaiian Electric Companies will become a third

principal business within the NextEra Energy family of companies, along with FPL and

NextEra Energy Resources. As NextEra Energy subsidiaries, the Hawaiian Electric

Companies will have access to capital to meet upcoming financial obligations and

challenges on terms that should be more favorable than if the Proposed Change of

Control is not consummated. Furthermore, joining NextEra Energy will provide the

Hawaiian Electric Companies with access to best practices and technologies employed

by one of the leading energy providers in North America. NextEra Energys vision,

approach, and financial strength were critical to HEIs decision to enter into the

Agreement.


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raise [its] issuer credit ratings on HEI and [Hawaiian Electric] to be aligned with that of

the ultimate parent NextEra [Energy].11

Moodys Investors Service (Moodys)

affirmed the ratings of HEI and Hawaiian Electric following announcement of the

Agreement and indicated that its rating outlook for HEI is stable.12 FitchRatings

(Fitch) has placed HEI on Rating Watch Positive and upon consummation of the

transaction, could upgrade HEI by one notch given its ownership by a higher rated

company [(i.e., NextEra Energy)].13 Fitch has also affirmed the Stable Rating Outlook

for Hawaiian Electric and in Fitchs view, Hawaiian Electric will benefit significantly from

NextEra [Energy]s ownership.14 Further, Fitch indicates that [s]uccessful closing of

the acquisition by NextEra [Energy] will likely result in one-notch upgrade of HEI. 15 All

three agencies favorable reactions indicate that the Proposed Change of Control, if

consummated, is expected to improve the financial status of the Hawaiian Electric

Companies.

Finally, as discussed below, NextEra Energy is making certain commitments to


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financial support of a financially secure parent company, the Proposed Change of

Control is reasonable and in the public interest and should be approved.

I.B. NextEra Energys Commitments to Communit ies, Employees, andCustomers

The Hawaiian Electric Companies and NextEra Energy believe the Proposed

Change of Control will provide important benefits for the Hawaiian Electric Companies

customers, employees, and the communities they serve. To help ensure these benefits

are realized, NextEra Energys commitments include the following:

(i) Commitment to maintain charitable giving NextEra Energy

recognizes the importance of the efforts by HEI and the Hawaiian

Electric Companies to serve and support the Hawaii community,

and NextEra Energy intends to continue with those efforts. As

described in Section V.C, subsection 2.g below, NextEra Energy

commits to maintain HEI's overall current level of corporate giving

in HEI's communities.


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least two-years post-closing, NextEra Energy will provide each

active non-bargaining unit employee of the Hawaiian Electric

Companies base salaries or wage rates that are no less favorable

than those provided immediately prior to the change in control.

During the two-year period following the change in control,

non-bargaining unit employees will be offered aggregate incentive

compensation opportunities and employee benefits that are

substantially comparableto those provided immediately prior to the

change in control. Further, during the two-year period following the

change in control, NextEra Energy will not implement involuntary

workforce reductions of employees of the Hawaiian Electric

Companies. NextEra Energy also commits that all existing

collective bargaining agreements will be honored. In addition,

NextEra Energy commits that employees will be credited for years


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(v) Commitment to Clean Energy Transformation As noted in

Section I.A above, NextEra Energys strengths are in many areas

additive to the capabilities of the Hawaiian Electric Companies and

will help facilitate and further the Hawaiian Electric Companies

clean energy transformation. As discussed in Section V.C,

subsection 2.j below, NextEra Energy commits to strengthening

and accelerating the Hawaiian Electric Companies clean energy

transformation, consistent with Commission directives and

guidance, the State of Hawaii's energy policy, and customer

interests and public policy goals, towards a more affordable,

equitable and inclusive, and economic clean energy future, through

increased renewable energy (including integrating more rooftop

solar energy), electric grid modernization, energy storage and

customer demand response programs, all as a key part of the


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(vii) Commitment to customer savings NextEra Energy is

committed to effectively managing costs and producing sustained

customer savings. As discussed in Section V.C, subsection 2.a

below, and subject to the conditions outlined in that subsection,

NextEra Energy commits that the Hawaiian Electric Companies will

not file for a general base rate increase for at least four years

following closing of the transaction, and will forego recovery under

the decoupling mechanism of the incremental O&M RAM

Adjustment during that period (which, in cumulative total, will

amount to an estimated $60 million in customer savings). NextEra

Energy also supports development of an incentive-based

ratemaking construct that could apply at the end of this general

base rate moratorium period.

(viii) Commitment to providing customer protections As discussed


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will not be diminished as a result of the Proposed Change of

Control.

II. SUMMARY OF REQUESTED RELIEF

Applicants specifically and respectfully request that the Commission:

1. Approve the Proposed Change of Control, as further described in Section I

above and Section V below, pursuant to HRS 269-7, 269-17.5, and/or 269-19, as

applicable, and also pursuant to Condition No. 16 of that certain agreement entered into

in 1982 titled Conditions for the Merger and Corporate Restructuring of Hawaiian

Electric Company, Inc. (1982 Agreement);1617

2. Modify certain conditions set forth in the 1982 Agreement as further

discussed in Section VI below, pursuant to Condition No. 21 of the 1982 Agreement;18

3. Confirm that upon consummation of the Proposed Change of Control, the

Thomas Report

19

will no longer be applicable;

20

and


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4. Grant such other relief as the Commission may deem required, applicable,

or otherwise appropriate, just, and reasonable under the circumstances and/or in order

to effectuate the Proposed Change of Control.21

In support of this Application, Applicants provide the following information:

19 The term Thomas Report refers to that certain report issued by Dennis Thomas andAssociates in January 1995 and titled Review of the Relationship between Hawaiian Electric Industriesand Hawaiian Electric Company and all the recommendations set forth therein. The Thomas Reportresulted from a proceeding, opened by the Commission upon Hawaiian Electrics request, to review the

relationship between HEI and Hawaiian Electric, any impact of HEIs diversified activities on HawaiianElectric, Hawaii Electric Light, and Maui Electric, and other related matters. Order No. 12155, issued onJanuary 26, 1993, Docket No. 7591 (Order No. 12155), at 2. As part of the review proceeding, theCommission contracted Dennis Thomas and Associates to perform a review of HEIs diversificationhistory and the Thomas Report is the result of that review. The Thomas Report (including all of therecommendations set forth therein) was adopted by the Commission in its entirety. Decision and OrderNo. 15225, issued on December 10, 1996, Docket No. 7591 (Decision and Order No. 15225), at 3, 5-6.

20 See infra Section VII.

21 To the extent the Commission deems it to be required, applicable, or otherwise appropriate,just, and reasonable under the circumstances and/or in order to effectuate the Proposed Change of


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KENT D. MORIHARA, ESQ.

KRIS N. NAKAGAWA, ESQ.LAUREN M. IMADA, ESQ.YVONNE Y. IZU, ESQ.Morihara Lau & Fong LLP841 Bishop Street, Suite 400Honolulu, Hawaii 96813

Attorneys for NextEra Energy, Inc.

IV. DESCRIPTION OF APPLICANTS AND RELATED ENTITIES

IV.A. The Hawaiian Electric Companies

Hawaiian Electric is a corporation that was duly organized under the laws of the

Kingdom of Hawaii on or about October 13, 1891, and now exists under and by virtue

of the laws of the State of Hawaii. Hawaiian Electric is an operating public utility

engaged in the production, purchase, transmission, distribution, and sale of electricity

on the island of Oahu. Since July 1, 1983, Hawaiian Electric has been a wholly-owned

subsidiary of HEI. The book cost and original cost of Hawaiian Electrics assets are

$4 120 102 000 d $5 365 797 000 ti l f S t b 30 2014


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Maui Electric is a corporation that was duly organized under the laws of the

Territory of Hawaii on or about April 28, 1921, and now exists under and by virtue of the

laws of the State of Hawaii. Maui Electric is an operating public utility engaged in the

production, purchase, transmission, distribution, and sale of electricity on the island of

Maui; the production, transmission, distribution, and sale of electricity on the island of

Molokai; and the production, purchase, distribution, and sale of electricity on the island

of Lanai. Since November 1, 1968, Maui Electric has been a wholly-owned subsidiary

of Hawaiian Electric. The book cost and original cost of Maui Electrics assets are

$782,915,000 and $1,232,721,000, respectively, as of September 30, 2014.

IV.B. HEI

HEI is a Hawaii corporation listed on the New York Stock Exchange. Through its

subsidiaries, Hawaiian Electric, Hawaii Electric Light, Maui Electric, and American

Savings Bank, HEI provides energy and financial services to the communities of the

State of Hawaii. Hawaiian Electric, Hawaii Electric Light, and Maui Electric collectively


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Section V below and illustrated in Exhibit 2, in order to effectuate the Proposed Change

of Control, HEI will be merged into Hawaiian Electric Holdings, with Hawaiian Electric

Holdings surviving as the parent company of the Hawaiian Electric Companies.

NextEra Energy is the sole manager of Hawaiian Electric Holdings.

NextEra Energy, listed on the New York Stock Exchange, is a leading

clean-energy company with consolidated revenues of approximately $15.1 billion in

2013. As noted in Section I.A above, NextEra Energys principal subsidiaries include

(i) FPL, which serves approximately 4.7 million customer accounts in Florida (as of

December 31, 2013) and is one of the largest rate-regulated electric utilities in the

United States based on retail megawatt-hour sales, and (ii) NextEra Energy Resources,

which together with its affiliated entities is the largest generator in North America of

renewable energy from the wind and sun. Exhibit 6, attached hereto and incorporated

herein by reference, is an organizational chart that shows how the Hawaiian Electric

Companies will fit into the NextEra Energy organization, assuming the Proposed


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HEI debt.23 24 Once all required conditions under the Agreement have been met,

including obtaining Commission approval, the Proposed Change of Control will be

effectuated.25 Upon closing of the Proposed Change of Control, Hawaiian Electric

Holdings (a wholly owned subsidiary of NextEra Energy with NextEra Energy as its sole

manager) will become the direct parent company of the Hawaiian Electric Companies.

The steps that are currently contemplated to effectuate the Proposed Change of

Control, as well as the planned organizational structure that will result from the

Proposed Change of Control, are shown in Exhibit 2. The Agreement (Exhibit 3)

describes in detail how the Proposed Change of Control will be effectuated. The chart

provided as Exhibit 6 shows how the Hawaiian Electric Companies will fit into the

NextEra Energy organization, assuming the Proposed Change of Control is approved

and consummated.

23

Concurrent with the close of the Proposed Change of Control, NextEra Energy will contributefunds necessary to repay all amounts outstanding under HEIs existing $125 million term loan, to repayHEIs existing $150 million revolving loan facility (if any amounts are actually drawn as of closing of the


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As illustrated in Exhibit 2, the Proposed Change of Control involves a transfer of

the Hawaiian Electric Companies upstream ownership interests and does not involve a

sale of any of the Hawaiian Electric Companies assets or a transfer of any of the

Hawaiian Electric Companies own ownership interests. As a result, Hawaiian Electric,

Hawaii Electric Light, and Maui Electric (i.e., the entities regulated by the Commission)

will each continue to remain in existence and continue to operate under their respective

tariffs and operating authority (i.e., each entitys respective Franchise).

V.B. Standard of Review for Proposed Change of Contro l

As indicated in Section II above, Applicants are requesting Commission approval

of the Proposed Change of Control pursuant to three statutory provisions:

HRS 269-7,26269-17.5,27and/or 269-19,28as applicable.

26 Applicants note that the Commission has previously taken jurisdiction, under its general

investigative powers set forth by HRS 269-7, to review and approve stock sales and change of control


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1. Standard of Review Under HRS 269-7

HRS 269-7(a) provides, in relevant part:

The [Commission] . . . shall have power to examine into thecondition of each public utility, the manner in which it isoperated with reference to . . . the issuance by it of stocksand bonds, and the disposition of the proceeds thereof, theamount and disposition of its income, and all its financialtransactions, its business relations with other persons,

companies, or corporations, its compliance with allapplicable state and federal laws and with the provisions ofits franchise, charter, and articles of association, if any, itsclassifications, rules, regulations, practices, and service, andall matters of every nature affecting the relations andtransactions between it and the public or persons orcorporations.

In Decision and Order No. 22449, the Commission articulated the standard of

review as it applies to a transfer of control subject to HRS 269-7(a) as follows:

Commission approval under HRS 269-7(a) requiresa finding that the proposed Transfer of Control isreasonable and consistent with the public interest. Atransaction is said to be reasonable and consistent with the

public interest if the transaction will not adversely affect the .. . [utilitys] fitness, willingness, and ability to provide publictilit i i th St t th i d i it it


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In Decision and Order No. 22449, which involved a transfer of control that the

Commission found was subject to HRS 269-17.5 and other statutory provisions, the

Commission applied the Fitness and Public Interest standard in its review of the

proposed transfer of control, which the Commission described as requiring a finding that

the utility will be fit, willing, and able to perform the service it is currently performing in

the State under [the new ownership] and that the transfer is reasonable and in the

public interest.30

3. Standard of Review Under HRS 269-19

HRS 269-19(a) provides, in relevant part:

[N]o public utility shall sell, lease, assign, mortgage, orotherwise dispose of or encumber the whole or any part ofits road, line, plant, system, or other property necessary oruseful in the performance of its duties to the public, or anyfranchise or permit, or any right thereunder, nor by anymeans, directly or indirectly, merge or consolidate with anyother public utility without first having secured from the publicutilities commission an order authorizing it so to do. Everysuch sale, lease, assignment, mortgage, disposition,encumbrance, merger, or consolidation, made other than in


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provide and perform their respective utility services following the Proposed Change of

Control.

V.C. The Proposed Change of Control Should be Approved Because it isReasonable and in the Public Interest and the Hawaiian Electric CompaniesWill be Fit, Willing, and Able to Provide and Perform Their RespectiveUtility Services Following the Proposed Change of Control

Applicants contend that the Proposed Change of Control is reasonable and in the

public interest and that the Hawaiian Electric Companies will be fit, willing, and able to

provide and perform their respective utility services following the Proposed Change of

Control. The Proposed Change of Control will not adversely affect, and instead will

enhance, the Hawaiian Electric Companies fitness, willingness, and ability to provide

and perform their respective utility services. Additionally, the Proposed Change of

Control will not have any material adverse impacts on the Hawaiian Electric Companies

operations or customers. Through the Proposed Change of Control, the Hawaiian

Electric Companies will have an important and unique opportunity to strengthen and

accelerate the companies clean energy transformation and will be positioned to deliver


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approved and consummated, the Hawaiian Electric Companies will benefit from their

new affiliation with NextEra Energy and are expected to enjoy an enhanced fitness and

ability, financial and otherwise, to perform and provide their respective utility services,

as discussed below.

If the Proposed Change of Control is approved and consummated, the Hawaiian

Electric Companies will be positioned to benefit from the extensive, enterprise-wide

financial resources of NextEra Energy. A Fortune 200 company, NextEra Energys

market capitalization approximates $45 billion.33 With total assets exceeding $72 billion

and electric generation capacity of more than 44 gigawatts primarily across 27 states

and Canada, NextEra Energy has generated average annual consolidated revenues

during the previous three years of approximately $15 billion. During 2013, more than

70% of NextEra Energys $15.1 billion in revenues was derived from its rate-regulated

electric utility sources. See Sections I.A and IV.C above for more information regarding

NextEra Energy and the NextEra Energy organization.


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balanced, well-diversified lending group that spans 20 countries across four continents

has provided NextEra Energy with approximately $18.5 billion of credit since 2003,

which includes corporate credit facilities commitments and term loans outstanding as of

August 31, 2014, and original balances of project debt funded or committed by banks.

NextEra Energy has access to and regularly secures long-term financing in the public

debt and equity markets and is committed to supporting the Hawaiian Electric

Companies with plans to subsequently access the capital markets to raise long-term

financing as appropriate. Since 2011, NextEra Energy has demonstrated its superior

access to the capital markets, raising over $26 billion of debt and equity capital to fund a

like amount of growth. NextEra Energy is rated A- by S&P and Fitch, and Baa1 by

Moodys.

If the Proposed Change of Control is approved and consummated, it is expected

that the Hawaiian Electric Companies will have an enhanced financial capacity. In this

regard, following announcement of the Proposed Change of Control, and as indicated in


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[Energy].35 Among other positive implications of being considered by S&P

to be core subsidiaries of NextEra Energy, S&Ps core classification

correctly implies that the Hawaiian Electric Companies are highly unlikely

to be sold by NextEra Energy following the consummation of the Proposed

Change of Control, that the acquisition is consistent with NextEra Energys

long-term strategy, and that the Hawaiian Electric Companies financial

fitness and ability will be improved by the support and resources available

from NextEra Energy.

Moodys affirmed the ratings of HEI and Hawaiian Electric following

announcement of the Proposed Change of Control and indicated that its

rating outlook for HEI is stable.36 While Moodys prescriptive

methodology does not indicate or allow for a ratings upgrade for the

Hawaiian Electric Companies as a result of the announcement of the

Proposed Change of Control, Moodys does recognize that the transaction


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the Proposed Change of Control, Fitch could upgrade HEI by one notch

given its ownership by a higher rated company.

38

Fitch has also affirmed

the Stable Rating Outlook for Hawaiian Electric and in Fitchs view,

Hawaiian Electric will benefit significantly from NextEra [Energy]s

ownership.39 Further, Fitch indicated that the [s]uccessful closing of the

acquisition by NextEra [Energy] will likely result in one-notch upgrade of

HEI.40

While there is no guarantee that any of the rating agencies will actually upgrade the

credit rating of any of the Hawaiian Electric Companies following consummation of the

Proposed Change of Control, the noted rating agencies comments reflect their view of

the strength of NextEra Energys financial profile. Further, as noted above, the rating

agencies favorable reactions indicate that the Proposed Change of Control is expected

to improve the financial status of the Hawaiian Electric Companies.

Upon completion of the Proposed Change of Control, the Hawaiian Electric


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from across the enterprise.41 Under NextEra Energy ownership, it is expected that the

Hawaiian Electric Companies will be able to put downward pressure on customer bills

by applying NextEra Energys technical expertise and procurement strategies and by

sharing best practices, all under the direction of the Hawaiian Electric Companies local

management.

If the Proposed Change of Control is approved and consummated, the Hawaiian

Electric Companies also will benefit from NextEra Energys virtuous circle business

strategy. The tenets of this strategy are consistent with the foundational principles

governing the Hawaiian Electric Companies transformational efforts and will help

achieve the desired results for Hawaii. NextEra Energys virtuous circle strategy

produces a corporate culture and philosophy that is focused on providing outstanding

value to customers through affordable electric rates and exceptional customer service.

Fundamentally, there need not be an inherent conflict between providing value both to

customers and investors, as evidenced by the results of this strategy. FPLs typical


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same foundational principles. As such, NextEra Energys business strategy will provide

a strong basis of support for the Hawaiian Electric Companies transformational efforts.

Another key benefit that NextEra Energy will bring to the Hawaiian Electric

Companies, if the Proposed Change of Control is approved and consummated, is the

experience and capabilities of NextEra Energy Resources. Through NextEra Energy

Resources, NextEra Energy brings all of the capabilities of a substantial North American

renewable energy leader, including the resources that will help accelerate the Hawaiian

Electric Companies efforts to pursue a new, clean energy future for Hawaii. As noted

in Section I.A above, FPL and NextEra Energy Resources have together completed

more than $24 billion worth of major capital projects since 2003, overall on time and

under budget.

As part of the NextEra Energy organization, if the Proposed Change of Control is

approved and consummated, the Hawaiian Electric Companies will also be positioned

to benefit from the NextEra Energy organizations substantial experience developing


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honored by the Edison Electric Institute, a leading trade association comprised of

electric industry peers, for outstanding efforts to restore service to customers in the

wake of natural disasters.

In sum, NextEra Energy has extensive experience in the energy industry and

with regulated utilities. NextEra Energy understands the regulatory issues affecting and

transforming the energy utility industry. NextEra Energy also has deep technical,

managerial, and financial resources that it is prepared to bring to the Hawaiian Electric

Companies as part of the Proposed Change of Control. NextEra Energy recognizes

that the challenges facing the Hawaiian Electric Companies are unique and different

and, as such, the solutions also must be unique and different. At the same time, the

methods, technologies, and experience that NextEra Energy has developed in its drive

for continuous improvement make NextEra Energy well positioned and, it believes,

best positioned to provide the support, resources, and other capabilities to achieve

lower bills, higher reliability, and cleaner energy to and for the customers of the


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this Application requesting the Commission approvals necessary to consummate the

Proposed Change of Control.

c. Ability

(1) Retention of Employees

NextEra Energy recognizes that the Hawaiian Electric Companies existing

employees possess unique experience and knowledge regarding operating and

providing electric utility service in the Hawaii communities that they serve. NextEra

Energy also believes that employee retention is important to ensuring a smooth

transition during the change of control. Consistent with this, and as noted in Section I.B

above, to promote stability upon and following the Proposed Change of Control,

NextEra Energy commits to the following:

All existing collective bargaining agreements will be honored;

There will be no involuntary workforce reductions during the two-year periodfollowing closing of the subject transaction;

Base salaries and wage rates for non-bargaining unit employees will be nol f bl th th t id d i di t l i t th l i f th


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(2) Local Headquarters, Management, and Governance

The Hawaiian Electric Companies will continue to be headquartered in Honolulu

following the Proposed Change of Control and will continue to operate under their

respective current company names and from their existing operating locations.

Additionally, the President and the management team of Hawaiian Electric will be based

in Honolulu. In lieu of the existing Hawaiian Electric board of directors, NextEra Energy

also commits to establish a local, independent Hawaiian Electric advisory board that will

meet quarterly to provide input on matters of local and community interest. NextEra

Energy anticipates that this board will have six to twelve members, all of whom will have

substantial ties to the Hawaii community and will be compensated for their services.

(3) Transition Planning

NextEra Energy, HEI, and the Hawaiian Electric Companies will work together to

plan for and take the necessary steps to ensure that the transition will be as seamless

and transparent as reasonably practicable. Given the geographic separation between


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and should enjoy an enhanced ability to provide and perform their respective utility

services. For an extensive discussion of the resources, experience, and expertise that

NextEra Energy will bring to the Hawaiian Electric Companies as part of the Proposed

Change of Control, refer to Section I.A and Section V.C, subsection 1.a above.

2. Reasonableness and Other Key Public Interest Points

In addition to all of the reasons described above, Applicants contend that the

Proposed Change of Control is reasonable and in the public interest for the following

reasons:

a. Customer Savings: No Application to Increase General Base Ratesfor at Least Four Years Through Rate Case Moratorium/Stay Out

Period, and Commitment to Forego Recovery of DecouplingMechanism Incremental O&M RAM Adjustment

If the Proposed Change of Control is approved, NextEra Energy will benefit

customers with the following savings and rate control commitments. Subject to certain

qualifications (as described in footnotes 42 and 45, and below), NextEra Energy

commits that, for at least four years following the closing of the Proposed Change of


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Base Expenses43 (the O&M RAM Adjustment)44 (which, in cumulative total, will

amount to an estimated $60 million in customer savings).

45

NextEra Energys foregoing

commitment is subject to the exceptions and conditions set forth in footnotes 42 and 45,

and upon all of the following remaining in effect, as currently authorized by the

Commission as of the filing of this Application, throughout the stay out period: (i) the

RBA tariff provisions,46

(ii) the Rate Base RAM Return on Investment Adjustment

43 Base Expenses are designated labor and non-labor operations and maintenance expensesand payroll tax expenses. Final Decision and Order, issued August 31, 2010, Docket No. 2008-0274,at 48, 49-52. See also Hawaiian Electrics Tariff at Revised Sheet No. 93A; Hawaii Electric Lights Tariffat Revised Sheet No. 89A; Maui Electrics Tariff (Maui Division Rate Schedules) at Revised SheetNo. 96A; Maui Electrics Tariff (Lanai Division Rate Schedules) at Revised Sheet No. 107A; and MauiElectrics Tariff (Molokai Division Rate Schedules) at Revised Sheet No. 151A.

44 Each of the Hawaiian Electric Companies respective tariffs include a Rate AdjustmentMechanism Provision (RAM Provision). Hawaiian Electrics Tariff at Revised Sheet No. 93 throughRevised Sheet No. 93H; Hawaii Electric Lights Tariff at Revised Sheet No. 89 through Revised SheetNo. 89H; Maui Electrics Tariff (Maui Division Rate Schedules) at Revised Sheet No. 96 through RevisedSheet No. 96H; Maui Electrics Tariff (Lanai Division Rate Schedules) at Revised Sheet No. 107 throughRevised Sheet No. 107H; and Maui Electrics Tariff (Molokai Division Rate Schedules) at Revised SheetNo. 151 through Revised Sheet No. 151H. The RAM Provision provides for the calculation and recoveryof the RAM Revenue Adjustment. The adjustment to Base Expenses included in the RAM Revenue

Adjustment is referred to as the O&M RAM Adjustment.45

See supra nn.43 and 44. NextEra Energy is aware that the Hawaiian Electric Companies


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tariff provisions,47(iii) the Depreciation & Amortization RAM Expense provision, (iv) the

Renewable Energy Infrastructure Program, including the Renewable Energy

Infrastructure Program Surcharge,48(v) the IRP/DSM Cost Recovery tariff provisions,49

(vi) the ECAC tariff provisions,50(vii) the PPAC tariff provisions,51and (viii) the Pension

and OPEB tracker mechanism.5253

47 Hawaiian Electrics Tariff at Revised Sheet No. 93 through Revised Sheet No. 93H (and in

particular, see parts (c), (d), and (g) of Section 2 of the Rate Adjustment Mechanism); Hawaii ElectricLights Tariff at Revised Sheet No. 89 through Revised Sheet No. 89H (and in particular, see parts (c),(d), and (g) of Section 2 of the Rate Adjustment Mechanism); Maui Electrics Tariff (Maui Division RateSchedules) at Revised Sheet No. 96 through Revised Sheet No. 96H (and in particular, see parts (c), (d),and (g) of Section 2 of the Rate Adjustment Mechanism); Maui Electrics Tariff (Lanai Division RateSchedules) at Revised Sheet No. 107 through Revised Sheet No. 107H (and in particular, see parts (c),(d), and (g) of Section 2 of the Rate Adjustment Mechanism); and Maui Electrics Tariff (Molokai Division

Rate Schedules) at Revised Sheet No. 151 through Revised Sheet No. 151H (and in particular, seeparts (c), (d), and (g) of Section 2 of the Rate Adjustment Mechanism).

48 See Decision and Order, issued December 30, 2009, Docket No. 2007-0416. See alsoHawaiian Electrics Tariff at Revised Sheet No. 50.9; and In re Hawaiian Electric Company, Inc. and MauiElectric Company, Limited (Docket No. 2013-0393).

49 Hawaiian Electrics Tariff at Revised Sheet No. 68 through Revised Sheet No. 68A; HawaiiElectric Lights Tariff at Revised Sheet No. 64 through Revised Sheet No. 65; Maui Electrics Tariff (Maui

Division Rate Schedules) at Revised Sheet No. 70 through Revised Sheet No. 71; Maui Electrics Tariff(Lanai Division Rate Schedules) at Revised Sheet No. 89 through Revised Sheet No. 90; and MauiElectrics Tariff (Molokai Division Rate Schedules) at Revised Sheet No. 129 through Revised Sheet


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In connection with NextEra Energys above rate case moratorium/stay out period

commitment, NextEra Energy also supports development of an incentive-based

ratemaking construct that could apply at the end of the stay out period.

NextEra Energys commitment to the rate case moratorium/stay out period, as

described above, will also have the added benefit of positioning NextEra Energy and the

Hawaiian Electric Companies to better effect the Hawaiian Electric Companies clean

energy transformation as swiftly, effectively, and efficiently as reasonably possible.

General rate case proceedings require the utility applicant (as well as the Consumer

Advocate and Commission) to devote a substantial amount of time, effort, and

resources to such proceedings. Time and effort that would otherwise be dedicated to

general rate case proceedings can instead be spent implementing the Hawaiian Electric

Companies clean energy transformation.

b. Continuation of Commission Jurisdiction

NextEra Energy commits and agrees that the Commissions jurisdiction with


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Change of Control) will continue to abide by and comply with all Commission decisions,

orders, and rules that remain applicable to HEI following consummation of the Proposed

Change of Control, as authorized by law.

c. Acquisition Premium

NextEra Energy acknowledges the Commissions general policy against recovery

from utility customers of acquisition premium amounts arising from utility merger and

acquisition transactions. In accordance with this policy, NextEra Energy agrees that

under its control, the Hawaiian Electric Companies will not seek rate recovery of any

goodwill amortization, acquisition premium costs, or goodwill impairment charges

incurred as a result of the Proposed Change of Control.

d. Transaction and Transition Costs

NextEra Energy also acknowledges the Commissions policy against accounting

deferral or recovery from utility customers of transaction and transition costs arising

from utility merger and acquisition transactions. In accordance with this policy, NextEra


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Section V.C, subsection 1.a above. As a result of the above, NextEra Energy believes

that the Proposed Change of Control will result in the Hawaiian Electric Companies

being able to deliver increased value to their customers. To this end, NextEra Energy

commits to making reasonable improvements in service reliability with reference to a

baseline year (to be established post-closing of the Proposed Change of Control) using

performance standards such as System Average Interruption Duration Index (SAIDI)

and System Average Interruption Frequency Index (SAIFI). Additionally, NextEra

Energy will support the ongoing efforts of the Reliability Standards Working Group and

its subgroups.54

g. Contributions to the Community

In continuation of the efforts by HEI and the Hawaiian Electric Companies to

serve and support the Hawaii community, NextEra Energy commits that it will maintain

HEI's overall current level of corporate giving in HEI's communities. NextEra Energy will

look to the local advisory board and local management team as key advisors with


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mainland utilities, and the need to break new ground and to deploy new technologies to

accommodate additional renewable generation, demand response, and energy storage

into the Hawaiian Electric Companies systems.

NextEra Energys strengths, as outlined in greater detail throughout this

Application, are in many areas additive to the capabilities of the Hawaiian Electric

Companies and will help facilitate and further the Hawaiian Electric Companies clean

energy transformation. In that regard, NextEra Energy commits to strengthening and

accelerating the Hawaiian Electric Companies clean energy transformation, consistent

with Commission directives and guidance, the State of Hawaii's energy policy, and

customer interests and public policy goals,56

towards a more affordable, equitable and

inclusive, and economic clean energy future, through increased renewable energy

(including integrating more rooftop solar energy), electric grid modernization, energy

storage and customer demand response programs, all as a key part of the efforts to

reduce Hawaiis dependence on imported oil and to lower customer bills. 57


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For the reasons discussed above, Applicants respectfully submit that they have

satisfied the Commissions requisite regulatory requirements under HRS 269-7,

269-17.5, and 269-19, as applicable, and that they have sufficiently demonstrated that

the Proposed Change of Control meets the applicable standard of review, specifically,

(i) that the Proposed Change of Control is reasonable and in the public interest, and

(ii) the Hawaiian Electric Companies will be fit, willing, and able to provide and perform

their respective utility services following the Proposed Change of Control. Accordingly,

Applicants request that the Commission approve the Proposed Change of Control

pursuant to HRS 269-7, 269-17.5, and/or 269-19, as applicable.58

VI. MODIFICATION OF 1982 AGREEMENT

Pursuant to Condition No. 21 of the 1982 Agreement, 59Applicants request that

the Commission modify certain conditions of the 1982 Agreement that are or will be no

longer relevant and/or overly burdensome in light of the Proposed Change of Control

and/or applicable law. The requested modifications to the 1982 Agreement and the


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VIII. SUMMARY AND CONCLUSION

In sum, Applicants assert that (a) the Proposed Change of Control is reasonable

and in the public interest, and (b) the Hawaiian Electric Companies will be fit, willing,

and able to provide and perform their respective utility services following the Proposed

Change of Control. For the reasons discussed above, the Proposed Change of Control

will not have any material adverse effects on the Hawaiian Electric Companies

operations or customers. The Proposed Change of Control will also provide various

material benefits as discussed above. NextEra Energy will bring its wealth of

experience, resources, and expertise to the Hawaiian Electric Companies, the

companies operations, and the companies customers. Ultimately, the Proposed

Change of Control will result in the Hawaiian Electric Companies being able to deliver

more value to their customers and will strengthen and accelerate the Hawaiian Electric

Companies clean energy transformation.

For all of the reasons set forth in this Application, Applicants respectfully request

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3. Confirm

that upon consummation

of

the

Proposed Change

of

Control

the

Thomas

Report65

will no longer be app licab le ;66 and

4.

Grant such other relief

as

the

Commission

may deem required applicable

or

otherwise appropriate

just

and reasonable under the circumstances and/or in order

to

effectuate

the Proposed Change of Control.67

DATED:

Honolulu

Hawaii

January 29 2015.

HOMAS W WILLIAMS JR.

PETERY. KIKUTA

Attorneys for

HAWAIIAN ELECTRC

COMPANY

INC.

HAWAII ELECTRC LIGHT COMPANY

INC. and

MAUI ELECTRIC COMPANY

LIMITED

KENT D. MORHARA


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EXHIBIT 1

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORTPURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of earliest event reported: December 3, 2014

CommissionFile

Number

Exact name of registrant as specified in itscharter, address of principal executive offices

and registrants telephone number

IRS EmployerIdentification

Number

1-8841 NEXTERA ENERGY, INC. 59-2449419

700 Universe BoulevardJuno Beach, Florida 33408

(561) 694-4000

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SECTION 1 - REGISTRANTS BUSINESES AND OPERATIONS

Item 1.01 Entry into a Material Definitive Agreement.

On December 3, 2014, NextEra Energy, Inc., a Florida corporation (NEE), and Hawaiian Electric Industries, Inc., a Hawaiian corporation (HEI), entered into anAgreement and Plan o f Merger, dated as of December 3, 2014, by and among NEE, HEI, NEE Acquisition Sub I, LLC, a Delaware limi ted liability company

(Merger Sub II), and NEE Acquisition Sub II, Inc., a Delaware corporation (Merger Sub I) (the Merger Agreement). Merger Sub I and Merger Sub II are newly-formed, wholly-owned direct subsidiaries of NEE.

The Merger Agreement provides for Merger Sub I to merge with and into HEI, with HEI surviving (the Initial Merger), and then for HEI to merge with and intoMerger Sub II, with Merger Sub II surviving as a wholly-owned subsidiary of NEE (together with the Initial Merger, the Merger). The Boards of Directors ofeach of NEE and HEI have approved the Merger Agreement and the Merger.

The Merger Agreement provides that, immediately prior to completion o f the Merger, HEI will distribute to HEIs shareholders, on a pro-rata basis, all of theissued and outstanding shares of ASB Hawaii, Inc., a Hawai i corporation (ASBH) and a direct parent company of American Savings Bank, F.S.B. (ASB) (suchdistribution, the Bank Spin-Off). In the Merger, each outstanding share of HEI common stock will be converted into the right to receive 0.2413 shares of NEEcommon stock. HEI equity awards that are outstanding at the time of closing of the Merger will be converted into corresponding equity awards denominated inNEE common stock, except in the case of certain performance-based restricted stock units, which pursuant to the terms of HEIs Long-Term Incentive Plan,

will vest pro-rata and be settled for cash upon the closing of the Merger based on deemed satisfaction of performance goals at target levels.

NEE and HEI have each made customary representations, warranties and covenants in the Merger Agreement, including, among others, HEIs covenant toconduct its businesses in the ordinary course between the execution of the Merger Agreement and the completion of the Merger and each partys covenantsnot to engage in certain kinds of transactions and actions during that period without the prior consent of the other.

Consummation of the Merger is subject to customary conditions, including, among others, (i) approval of the Merger Agreement by shareholders holdingseventy-five percent of HEIs common stock, (ii) absence of any material adverse effect with respect to NEE or HEI, (iii) the registration statement necessary toconsummate the Bank Spin-Off having become effective, (iv) the determination by each of HEI and NEE that, upon consummation of the Bank Spin-Off, HEIwill no longer be a savings and loan holding company under federal law or be deemed to control ASB, (v) receipt of all required regulatory approvals from,among others, the Hawaii Public Utility Commission, the Federal Energy Regulatory Commission and the Federal Communications Commission, (vi) theexpiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, (vii) the absence of

any law or judgment in effect or pending in which a governmental entity has imposed or is seeking impose a legal restraint that would prevent or make illegalthe consummation of the Merger, (viii) the registration statement of NEE filed on Form S-4 in connection with the Merger having become effective, (ix) sharesof NEE common stock to be issued in connection with the Merger having been approved for listing on the New York Stock Exchange, (x) subject to certainexceptions, the accuracy of the representations and warranties of, and compliance with covenants by, each of the parties to the Merger Agreement and (xi)receipt by each party of a tax opinion o f its counsel regarding the tax treatment of the transactions contemplated by the Merger Agreement. In addition, theBank Spin-Off will be subject to various conditions, including, among others, the approval of the Federal Reserve Board.

The Merger Agreement contains certain termination rights for both NEE and HEI, including the right o f either party to terminate the Merger Agreement if theMerger has not been completed by December 3, 2015 (subject to a six-month extension if required to obtain necessary regulatory approvals), and furtherprovides that, upon termination of the Merger Agreement under specified circumstances, HEI or NEE, as the case may be, would be required to pay to theother party a termination fee of $90 million and reimburse the other party for up to $5 million of its documented out-of-pocket expenses incurred in connectionwith the Merger Agreement.

The Merger Agreement also prohib its HEI from soliciting, or participating in discussions or negotiations or providing information with respect to, alternativetakeover proposals, subject to certain exceptions.

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CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION

This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statementsare typically identified by words or phrases such as may, will, anticipate, estimate, expect, project, intend, plan, believe, predict, and targetand other words and terms of similar meaning. Forward-looking statements involve estimates, expectations, projections, goals, forecasts, assumptions, risks

and uncertainties. NEE and HEI caution readers that any forward-looking statement is not a guarantee of future performance and that actual results coulddiffer materially from those contained in any forward-looking statement. Such forward-looking statements include, but are not limited to, statements about theanticipated benefits of the proposed merger involving NEE and HEI, including future financial or operating results of NEE or HEI, NEEs or HEIs plans,objectives, expectations or intentions, the expected timing of completion of the transaction, the value , as of the completion of the merger or spin-off of HEIsbank subsidiary or as of any other date in the future, of any consideration to be received in the merger or the spin-off in the form of stock or any other security,potential benefit of tax basis step up to HEI shareholders, and other statements that are not historical facts. Important factors that could cause actual results todiffer materially from those indicated by any such forward-looking statements include risks and uncertainties relating to: the risk that HEI may be unable toobtain shareholder approval for the merger or that NEE or HEI may be unable to obtain governmental and regulatory approvals required for the merger or thespin-off, or required governmental and regulatory approvals may delay the merger or the spin-off or result in the imposition of conditions that could cause theparties to abandon the transaction; the risk that a condition to closing of the merger or the completion of the spin-off may not be satisfied; the timing toconsummate the proposed merger and the expected timing of the completion of the spin-off; the risk that the businesses will no t be integrated successfully;the risk that the cost savings and any other synergies from the transaction, including the value of a potential tax basis step up to HEI shareholders, may not be

fully realized or may take longer to realize than expected; disruption from the transaction making it more difficult to maintain relationships with customers,employees or supplie rs; the diversion o f management time and attention on merger and spin-off-related issues; general worldwide economic conditions andrelated uncertainties; the effect and timing of changes in laws or in governmental regulations (including environmental); fluctuations in trading prices ofsecurities and in the financial results of NEE, HEI or any of their subsidiaries; the timing and extent of changes in interest rates, commodity prices anddemand and market prices for electricity; and other factors discussed or referred to in the Risk Factors section of HEIs or NEEs most recent Annual Reportson Form 10-K filed with the Securities and Exchange Commission. These risks, as well as o ther risks associated with the merger, will be more fully discussedin the proxy statement/prospectus that will be included in the Registration Statement on Form S-4 that will be filed with the SEC in connection with the merger.

Additional risks and uncertainties are identified and discussed in NEEs and HEIs reports filed with the SEC and ava ilable at the SECs website atwww.sec.gov. Each forward-looking statement speaks only as of the date of the particular statement and neither NEE nor HEI undertakes any obligation toupdate or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

ADDITIONAL INFORMATION AND WHERE TO FIND IT

This document does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval nor shall there beany sale o f securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities lawsof any such jurisdiction. The proposed business combination transaction between NEE and HEI will be submitted to the shareholders of HEI for theirconsideration. NEE will file with the SEC a Registration Statement on Form S-4 that will include a proxy statement of HEI that also constitutes a prospectus ofNEE. HEI will provide the proxy statement/prospectus to its shareholders. NEE and HEI also plan to file other documents with the SEC regarding theproposed transaction. This document is not a substitute for any prospectus, proxy statement or any other document which NEE or HEI may file with the SEC inconnection with the proposed transaction. INVESTORS AND SECURITY HOLDERS OF HEI ARE URGED TO READ THE PROXYSTATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS THAT WILL BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETYWHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. You mayobtain copies of all documents filed with the SEC regarding this transaction, free of charge, at the SECs website (www.sec.gov). You may also obtain these

documents, free of charge, from NEEs website (www.investors.nexteraenergy.com) under the heading Investor Relations and then under the heading SECFilings. You may also obtain these documents, free of charge, from HEIs website (www.hei.com) under the tab Investor Relations and then under theheading SEC Filings. Additional information about the proposed transaction is available at a joint website launched by the companies atwww forhawaiisfuture com

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with the SEC on March 25, 2014 and in its Annual Report on Form 10-K filed with the SEC on February 21, 2014. Additional information about NEEsexecutive officers and directors and HEIs executive officers and directors can be found in the above-referenced Registration Statement on Form S-4 when itbecomes available. You can obtain free copies of these documents from NEE and HEI as described in the preceding paragraph.

SECTION 7 - REGULATION FD

Item 7.01 Regulation FD Disclosure

On December 3, 2014, HEI and NEE released an investor presentation regarding the merger. A copy of the investor presentation is attached hereto as Exhibit99.

SECTION 9 - FINANCIAL STATEMENTS AND EXHIBITS

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

The following document is filed as an exhibit to this report:

ExhibitNumber Description

2 Agreement and Plan of Merger, dated as of December 3, 2014, by and among NEE, Merger Sub I, Merger Sub II and HEI*

99 Investor Presentation of Hawaiian Electric Industries and NextEra Energy, Inc.

*

Schedules attached to the Merger Agreement have been omitted pursuant to Item 601(b)(2) of Regulation S-K. NEE will furnish the

omitted schedules to the Securities and Exchange Commission upon request by the Commission.

4

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by theundersigned thereunto duly authorized.

Date: December 3, 2014

NEXTERA ENERGY, INC.(Registrant)

CHARLES E. SIEVING

Charles E. SievingExecutive Vice President and General Counsel of

NextEra Energy, Inc.

5

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N e x tEra E n e r gy a n d H a w a iian El ect ric In d u s tries to C o mb ine Achi evi ng a MoreAfford a b le Cle a n E n e r gy Fut ure ForH a w a iiH a w a iian El ect ric In d u s tries Anno unce s Pl an to Spi n offASB H a w a iiinto an In d e p e n d e n tP u b lic l y Tra d e d C o mp a n y D e c e mb e r 3,2 0 1 4

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EXHIBIT 2

Existing Structure

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Existing Structure

PublicShareholders

HEI

ASB HECO

HELCO MECO

1

Step 1: NextEra Forms Merger Subsidiaries



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Step 1: NextEra Forms Merger Subsidiaries

PublicShareholders

HEI

ASB HECO

HELCO MECO

2

PublicShareholders

NextEra Energy

NEE Acquisition

Sub II, Inc.

Hawaiian Electric

Holdings, LLC*

* This Exhibit uses the name Hawaiian Electric Holdings, LLC for NEE

Acquisition Sub I, LLC, as that will be the name of the entity upon closing

Step 2: NEE Acquisition Sub II, Inc. Merges with and Into HEI



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p q , g

PublicShareholders

ASB* HEI

HECO

HELCO MECO

3

PublicShareholders

NextEra Energy

NEE AcquisitionSub II, Inc.

Hawaiian ElectricHoldings, LLC*

* HEI dividends out ASB (via its holding company) directly to HEI public

shareholders, so that ASB is no longer included among subsidiaries


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Step 4: Hawaiian Electric Holdings, LLC Survives as Holding Company



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p g g p y

Public

Shareholders

NextEra Energy

Hawaiian Electric

Holdings, LLC

HECO

HELCO MECO

application for approval of the proposed change of control and

Documents