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<\/a>Dewhurst was surprisingly forthcoming at times.<\/p>\n
He made clear Hawaiian Electric needs to adapt to thrive in the fast-evolving electricity sector. To encourage that process, he confirmed that NextEra would expect to send a handful of its employees to Hawaii to make the company more dynamic.<\/p>\n
\u201cThere is just a lot to be done and I don\u2019t think the current organization has all the capacities,\u201d Dewhurst said in response to a question from Commissioner Michael Champley toward the end of the day.<\/p>\n
Dewhurst readily noted HECO\u2019s need for fresh blood and cultural change, to make the company more efficient and accountable, saying, \u201cIt is part of how you change.\u201d<\/p>\n
To Commissioner Lorraine Akiba, he highlighted his belief that Hawaiian Electric employees \u201caren\u2019t sufficiently accountable.\u201d<\/p>\n
If Hawaiian Electric is purchased by NextEra, he said, the company will likely have fewer employees doing the same amount of work a decade from now, if it wants to bring down rates.<\/p>\n
That said, as a condition of its purchase offer, NextEra has promised a two-year moratorium on layoffs, so change for employees could only begin after that.<\/p>\n
If the deal does not go through, the Hawaiian Electric Co. has made clear it cannot offer any similar promise for those first 24 months.<\/p>\n
NextEra\u2019s CFO also confirmed, under questioning, that retirement benefits of employees were not explicitly protected in the 85 purchase commitments that NextEra filed with regulators.<\/p>\n
Such observations during seven hours of round-robin questioning made Dewhurt\u2019s final exchange, with commission Chairman Randy Iwase at the very end of the day, that much more interesting.<\/p>\n Given the three-member commission\u2019s deciding role in the hearing, various parties to the case \u2014 including the many intervening parties that questioned Dewhurst \u2014 have been looking for signs that betray the commission\u2019s leanings. They have found few clear indications.<\/p>\n So it grabbed attention when, in the final exchange before the holiday recess, the chairman pointed out how a company \u2014\u00a0in this case, a mainland company\u00a0\u2014 might focus on financial value at the detriment of local values in the islands.<\/p>\n First, Iwase queried Dewhurst about how involved he has been with the merger. The CFO said he has visited Hawaii twice since the deal was announced. He has also spoken extensively with NextEra staff, but not any of the HECO employees who could, at some point in the future, face layoffs.<\/p>\n Iwase asked him how many employees Hawaii\u2019s utility has; Dewhurst acknowledged that he didn\u2019t know. Pushed by Iwase for a number, the NextEra CFO guessed 4,000.<\/p>\n \u201cSo you don\u2019t know how much of a work force reduction will be needed?\u201d Iwase asked.<\/p>\n No, Dewhurst replied.<\/p>\n Iwase then returned to the issue of retirement benefits. He noted that there is no indication in NextEra\u2019s 85 merger-related commitments of any guarantees for Hawaiian Electric employees\u2019 retirement benefits. \u201cTalking about retirees, you said they have no protection. They\u2019re not protected.\u201d Iwase reiterated. \u201cTheir benefits are not protected.\u201d<\/p>\n Asked why not, Dewhurst said he didn\u2019t know, but added that the commitments might not be the place to address that issue.<\/p>\n<\/a>