HEI provides power to about 95% of Hawaiians, or 450,000 customers, via three electric utilities.
NextEra Energy will assume around $1.7bn of HEI debt under the transaction, which excludes HEI’s banking subsidiary.
NextEra intends to move HEI further towards renewable energy, adding more rooftop solar energy, improving Hawaii’s electric grid and decreasing the state’s use of imported oil.
After completion of the transaction, HEI will become a third principal business within the NextEra Energy family of companies.
HEI will continue to operate under its current name and remain headquartered in Honolulu.
The companies said there would be no involuntary reductions to HEI’s workforce for about two years after the deal closes.
NextEra Energy chairman and chief executive officer Jim Robo said: "Today, Hawaiian Electric is addressing a vast array of complex and interrelated issues associated with the company’s clean energy transformation.
"We believe our strengths are additive to Hawaiian Electric’s, creating an opportunity to enhance value for Hawaii’s strategically important energy industry."
HEI has agreed to spin off its subsidiary ASB Hawaii, the parent company for American Savings Bank, into a publicly traded company.
