Umair Gaines
Maui Electric Company, Ltd. was established in 1921 and has been providing electric utility services to the residential and commercial sectors of Maui ever since. In 1968, the company was purchased by Hawaiian Electric Company, which serves 95% of Hawaii's 1.4 million residents. In 2019, HECO announced that it would begin operating under a single name with its subsidiaries, MECO and HELCO—Hawaiian Electric. As of 2023, there have been expressions of interest from companies in purchasing MECO, but no deals have been confirmed.
| Characteristics | Values |
|---|---|
| Current Owner | Hawaiian Electric Company |
| Previous Owner | N/A |
| Year Established | 1921 |
| Services | Electric Utility Services |
| Customers | Residential and Commercial |
| Coverage | 95% of Hawaii's 1.4 million residents |
| Areas Covered | Oahu, Maui, Hawaii, Lanai, and Molokai |
| Recent Developments | Companies have expressed interest in buying MECO, including NextEra Energy Inc. |
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What You'll Learn
History of Maui Electric Company
The history of the Maui Electric Company dates back to the early days of electrification in Hawaii. While the demand for power has fuelled the growth of the Hawaiian Islands, Maui Electric has played a significant role in providing electricity to the residents and businesses of Maui.
The origins of electrification on the island of Maui can be traced back to 1881 when Claus Spreckels demonstrated the first electric lights at the Spreckelsville Mill. In 1907, the Hawaiian Commercial & Sugar Company (HC&S), founded by Claus Spreckels, installed the first oil-fired power plant in Hawaii at the Puunene Mill. This marked the beginning of power generation on the island. Subsequently, in 1911, the Island Investment Company formed the Island Electric Company to provide electricity to the town of Wailuku.
Maui Electric Company, Ltd. was established in 1921, and it gradually expanded its services to various regions of Maui, including Paia, Haiku, Hula, and Makawao by 1933. During World War II, Maui Electric played a crucial role in supporting the military's power requirements, delivering nearly half of the power generated by HC&S to military bases. In 1948, the company constructed its first power plant in Kahului, solidifying its position as a key electricity provider on the island.
The post-war years saw significant growth and expansion for Maui Electric. In 1954, they expanded the Kahului power plant by adding a 12,000-kv unit and constructed a 69-kv transmission line from Kahului to Lahaina in 1957. The company continued to consolidate its position through mergers and acquisitions. In 1964, Hana Light & Power merged with Maui Electric, and in 1967, they took over Lahaina Light & Power, becoming an island-wide utility. Finally, in 1968, Maui Electric joined the Hawaiian Electric Company, which had been serving Oahu since its incorporation in 1891.
In the following decades, Maui Electric continued to grow and adapt to the changing energy landscape. In 1989, they acquired Molokai Electric Company, and in the early 1990s, they experienced a rise in kilowatt-hour sales due to the opening of several resort hotels. Maui Electric also embraced renewable energy sources, signing an agreement to buy power from a 30-megawatt wind farm in 2004. In 2009, they provided energy to Lanai residents from Hawaii's largest single-site solar farm, the La Ola Solar Farm.
Today, Maui Electric, as a part of Hawaiian Electric, continues to serve the island of Maui, providing affordable, reliable, and sustainable energy to its residents and businesses. The company has embraced the transition to clean energy sources and set ambitious goals for the adoption of electric vehicles in Hawaii.
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Current owner: Hawaiian Electric Industries
Maui Electric Company, Ltd. was established in 1921 and has been providing electric utility services to the residents of Hawaii for over a century. The company was purchased by Hawaiian Electric Company (HECO) in 1968, and it currently operates as a subsidiary of its parent company, Hawaiian Electric Industries (HEI).
Hawaiian Electric Industries, through its subsidiaries, engages in the generation, purchase, and sale of electricity. The company serves approximately 95% of Hawaii's 1.4 million residents across the islands of Oahu, Maui, Hawaii, Lanai, and Molokai. Hawaiian Electric Industries is committed to empowering its customers and communities by providing affordable, reliable, clean, and sustainable energy. The company has expressed its support for the adoption of electric vehicles, with a goal to have the majority of vehicles in Hawaii be electric by 2045.
In recent years, Hawaiian Electric Industries has made significant strides towards incorporating renewable energy sources into its power generation mix. In 2023, 33.3% of the power handled by HEI was renewable, with Hawai'i Island setting a record by generating a peak of 92.3% renewable power on April 25, 2023. The company has also invested in solar energy projects, receiving over $1 million in U.S. Department of Agriculture funds in 2003 to support solar energy for rural families on Molokai.
Maui Electric Company has played a crucial role in Hawaiian Electric Industries' commitment to renewable energy. In 2009, Maui Electric provided Lanai residents with energy from La Ola Solar Farm, the largest single-site solar farm in Hawaii at the time. Additionally, Maui County achieved 41% renewable energy in its mix of solar, wind, and biofuels in 2019, demonstrating the company's dedication to exploring alternative energy sources.
While Maui Electric Company has a long history of providing electricity to the residents of Maui, there have been recent developments regarding potential changes in ownership. In 2023, Maui Mayor Alan Arakawa revealed that companies have expressed serious interest in buying Maui Electric (MECO). However, no official confirmation or negotiations have been announced, and Hawaiian Electric Industries has declined to comment on any rumors or speculation.
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Potential acquisition by NextEra Energy Inc
Maui Electric Company, Ltd. was established in 1921 and expanded its services to Paia, Haiku, Hula, and Makawao in 1933. In 1968, it was acquired by the Hawaiian Electric Company, which serves 95% of Hawaii's 1.4 million residents and aims to provide affordable, reliable, clean, and sustainable energy.
In 2014, NextEra Energy, Inc., a Florida-based publicly traded company, announced its plans to acquire Hawaiian Electric Industries, the parent company of the Hawaiian Electric Company, for $4.3 billion. This merger would have made Hawaiian Electric the third primary subsidiary of NextEra Energy, alongside Florida Power & Light, and NextEra Energy Resources. NextEra Energy is the nation's leading clean energy company and shares Hawaiian Electric's vision of increasing renewable energy, modernizing its grid, and reducing Hawaii's dependence on imported oil.
The proposed merger had support from over 25 local groups, including the Hawaii State AFL–CIO and the Hawaii Chamber of Commerce. However, in July 2016, Hawaii's Public Utilities Commission rejected the offer, citing doubts about NextEra Energy's commitment to the state's renewable energy goals. This termination came after an evidentiary hearing and an extensive review process by the Commission.
Despite the setback, NextEra Energy continued to pursue acquisitions and expand its business. In 2018, it sold its Canadian wind and solar portfolio for $582.3 million and announced plans to buy Gulf Power Company, the largest electricity producer in Northwest Florida, for $6.4 billion. NextEra Energy also expressed interest in purchasing SCANA and Santee Cooper in South Carolina, with a proposed bid of $15.9 billion.
As of 2025, NextEra Energy is the world's largest electric utility holding company by market capitalization, valued at over $170 billion as of October 2024. The company has a diverse range of subsidiaries and continues to play an active role in the energy industry, both in the United States and Canada.
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Other interested buyers
Maui Electric Company, Ltd. was established in 1921 and has been providing electric utility services to residential and commercial sectors across the islands of Maui, Lanai, and Molokai. The company was purchased by Hawaiian Electric Company in 1968, and in 2019, it was announced that it would begin operating under the single name 'Hawaiian Electric' along with its subsidiaries.
In 2023, Maui County Mayor Alan Arakawa revealed that companies have expressed serious interest in buying Maui Electric Company (MECO). While Arakawa was not involved in any negotiations, he highlighted the potential benefits of exploring alternative forms of ownership and utility business models for the county's electrical utility company. Oklahoma-based Guernsey completed a $70,000 analysis of these alternatives, which included a cooperative ownership model similar to the one used on the island of Kauai.
The potential sale of MECO comes as the company and the county explore alternative energies and ways for the community to generate their own electricity. This shift towards renewable sources has already shown progress, with Maui County achieving 41% renewable power in 2019, up from 38% in 2018.
NextEra Energy Inc. had proposed a $4.3 billion acquisition of Hawaiian Electric, but this deal was rejected by state regulators in July 2023. The report by Guernsey noted that regardless of this outcome, any regulated electric utility provider for Maui County would be subject to the jurisdiction of the private company that takes over Maui Electric. The report estimated that a third party could expect to pay between $525 million and $867 million to acquire MECO's assets, depending on negotiations and other factors.
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The future of Maui Electric
The Maui Electric Company, Ltd. was established in 1921 and has been fuelling the growth of the Hawaiian Islands ever since. In 1968, the company joined Hawaiian Electric Company, which serves 95% of Hawaii's 1.4 million residents.
In recent years, Maui Electric has been recognised for its use of renewable energy sources, with Maui County achieving 41% RPS with a mix of solar, wind and biofuels in 2019. The company has also been awarded for its community work, receiving the "Community Partner of the Year" award from Maui Community College in 2001.
However, the future of Maui Electric is uncertain. In 2023, brush fires ignited on Maui, causing widespread damage and leaving thousands without power. The company was blamed for the fires, and in 2024, a tentative agreement was reached for Hawaiian Electric Industries to pay victims over $4 billion in a legal settlement. As a result, the company has expressed doubts about its future viability, stating that it may not be able to continue operations due to the potential inability to pay the required settlement costs.
Despite these challenges, Maui Electric remains committed to providing quality service and seeking clean, local energy sources. The company hopes to have four new renewable energy projects across Maui online by 2028, transitioning to a grid powered by wind, solar and other clean energy sources. Additionally, Maui Electric supports the adoption of electric vehicles, with a goal of making the majority of vehicles in Hawaii electric by 2045.
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Frequently asked questions
Hawaiian Electric Company (HECO) purchased Maui Electric Company in 1968 and the latter has been operating under the name Hawaiian Electric since 2019.
Maui Electric Company, Limited provides electric utility services to residential and commercial sectors.
Maui Electric Company, Ltd. was established in 1921. The company extended its services to Paia, Haiku, Hula, and Makawao in 1933 and built its first power plant in Kahului in 1948. In 1964, Hana Light & Power merged with Maui Electric, and in 1967, Maui Electric took over Lahaina Light & Power, making it an island-wide utility.
