Hawaiian Electric's Q1 2025: Dissecting Contradictions in SB 897 Impact, Wildfire Fund Plans, and Settlement Strategies

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Resolution of Wildfire Tort Litigation:
- Hawaiian Electric Industries (HEI) is expected to make its first Maui wildfire settlement payment of $479 million in early 2026.
- The resolution progress is attributed to supportive Supreme Court decisions and the successful commencement of the One 'Ohana initiative.

Financial Strength and Simplified Business Model:
- HEI's holding company and utility had approximately $492 million and $130 million of unrestricted cash, respectively, with $300 million each in liquidity available.
- The company's financial strength is due to the sale of American Savings Bank and ongoing divestiture of Pacific Current assets, leading to a simpler, more focused business model.

Legislative Support and Wildfire Liability Cap:
- Hawaii State legislature passed Senate Bill 897, which includes an aggregate liability cap on economic damages from future wildfires and securitization for wildfire safety improvements.
- This legislation supports the utility's ability to implement wildfire mitigation plans more cost-effectively and reduces exposure to liability risks.

Rebasing Target Revenues in PBR Framework:
- Hawaiian Electric anticipates filing an application to rebase target revenues in the PBR framework later this year, with a 2026 test year.
- The rebase is part of a rate case-like proceeding, aimed at ensuring efficient and focused PBR framework modifications.