The PUC voted 2-0 against the proposed deal, following the companies failure to demonstrate that the merger was in the public interest.
NextEra Energy CEO and chairman Jim Robo said: “As a result of the PUC’s order, we have terminated our merger agreement.
“We wish Hawaiian Electric the best as it serves the current and future energy needs of Hawaii, including helping the state meet its goal of 100 percent renewable energy by 2045.
“Looking forward, NextEra Energy remains extremely well-positioned to execute on our strategy and deliver exceptional results for our customers and shareholders.”
Under the terms of the merger agreement, NextEra Energy will pay $90m as break-up fee and up to $55m for reimbursement of expenses associated with the merger transaction to Hawaiian Electric Industries.
NextEra Energy proposed a deal in December 2014 to acquire HEI for $4.3bn. As part of the deal, the company planned to take over HEI’s debt of $1.7bn and excluded its banking subsidiary American Savings Bank.
Bloomberg reported that the decision from the PUC could enable NextEra to focus on its pursuit of Oncor Electric Delivery Co.
Citing people familiar with the talks, the news agency reporetd that the company is said to have submitted a bid to acquire the Texas utility.
