Dive Brief:

• The International Brotherhood of Electrical Workers Local 1260 has thrown its support behind the proposed merger between NextEra resources and Hawaiian Electric Industries after receiving new promises from the Florida-based company.
• Local 1260 initially supported the $4.3 billion merger, but reversed course when it became clear NextEra had not included support for union workers at HECO who could be impacted by the company changing hands.
• Now, a spokesman for the union told Pacific Business News that it has written assurances from NextEra regarding what opportunities will be available for Local 1260 workers, as well as both sides committing to reach 100% renewable energy. 

Dive Insight:

Local 1260's support marks the first intervenor to change course and support the proposed merger between NextEra and HECO, Pacific Business News reports. There are 27 intervenors in the case, and PBN says the union's support is the first to show strong support for the deal.

The union's position has changed over time. It initially supported the merger, but withdrew that backing when it became clear NextEra had not provided assurances to Local 1260's workers. But now the labor group says they have written assurances from the company about future opportunities for workers, as well as support for Hawaii's clean energy goals.

The arrangement calls for no layoffs of union members for a two-year period following completion of the deal.

The state's 100% renewable goal has been a stumbling block in the merger, as many in Hawaii see NextEra's proposal not aligned with the strategy. While NextEra has touted its position as the largest renewables generator in North America, critics worry that its regulated subsidiary Florida Power & Light has a weaker track record on distributed solar energy — a major issue for Hawaii, which is seeking to go to 100% renewable generation by 2045.

Hawaii Gov. David Ige has said he is opposed to the merger, setting off interest on the islands to form a public utility as an alternative. 

If the deal falls through, HECO would receive a $90 million termination fee from NextEra – which has announced it will only go through the merger process one time. Details regarding the merger's origin and financial implications have come to light this week, including stories about HECO CEO Connie Lau's $11.6 million "golden parachute" clause, should the deal reach completion.