Article Summary I Essay

Submitted By koyu0611
Words: 485
Pages: 2

Article Summary I
SUMMARY
In “NextEra Buys Hawaii’s Biggest Utility in Green Energy Test” by Mark Chediak and Ehren Goossens explains a huge change will occur in the US electric power industry in the near future. Hawaii has a highest penetration using wind and solar power in the United States. NextEra Energy Inc. (NEE), North America as the largest generator of wind and solar power in the nation also know the situation in Hawaii and agreed to buy Hawaiian Electric Industries Inc. (HE) in order to reduce the nation’s highest rates by using more renewable energy.
Rely on imported energy has created a high price in Hawaii, it also provide a trigger for Hawaiian Electric Industries Inc. (HE) to develop a renewable energy. Hawaii has most expensive electricity rates in the nation. For a state with electricity rates about three times the national average. The average residential retail price is 37.81 cents per kWh, in contrast, the US mainland the average of 13.01 cents; and Hawaii average commercial price 34.54 cents per kWh, the mainland the average of 11 cents, the average industrial tariff of Hawaii is 30.38 cents, the mainland has an average of 7.38 cents. As islands states, Hawaii has 93 percent rely on imported energy fuels, 70% of its electricity generated from fuel oil. Wind and solar energy was "local" energy. It can improve energy self-sufficiency in Hawaii and also reduce the impacts from international energy price volatility.
Moreover, “NextEra as the nation’s largest buyer of natural gas can help Hawaii import cheaper, cleaner burning liquefied natural gas to generate power.” said Hawaiian Electric Chairman and CEO Constance Lau in a conference call.

ANALYSIS In article “NextEra Buys Hawaii’s Biggest Utility in Green Energy Test,” the writers believed that deal values was overpaid. The deal values Hawaiian Electric at about $33.50 after $8 bank spin off. In my opinion, I agree with the authors’ opinion that NextEra was overpaid. Based on the closing…