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Supporting Maui and the People of Hawai‘i

An Update from HEI CEO Scott Seu

Over the last year, we’ve made significant progress to support the people of Lahaina and Upcountry Maui as they chart a path towards recovery from last summer’s wildfires. And we’ve done this while continuing to provide critical financial and energy services to all our customers across Hawaii. These combined efforts are helping rebuild the strength of our HEI enterprise which ultimately delivers value to you, our shareholders.

NEWS

FAQ

What is HEI doing to help those impacted by the fires? 

Since August 2023, the HEI family of companies has taken a range of steps to support those who were affected by the fires, including:

Donating to a number of community organizations providing disaster relief, including Hawaii Community Foundation, American Red Cross, Salvation Army, Feed My Sheep, Council on Native Hawaiian Advancement, and the Binhi At Ani Filipino Community Center.

Suspending disconnections for all Hawaiian Electric customers on Maui through August 31, 2024, in order to allow people who have been impacted or are struggling financially to focus on taking care of themselves and their families.

Providing support in the immediate aftermath of the fires for American Savings Bank customers who were impacted, including waivers of certain fees, loan forbearance and deferment options, emergency personal lines of credit and other support. For the latest information on ASB’s Maui Relief & Assistance Programs, please visit: www.asbhawaii.com/maui.

What is the status of the wildfire litigation?

In early August 2024, following four months of mediation efforts, HEI, Hawaiian Electric and other parties reached an agreement in principle to settle all tort claims relating to the August 2023 Maui wildfires. Under the agreement in principle, HEI and Hawaiian Electric will together contribute a total of $1.99 billion (pre-tax), which includes the $75 million previously contributed for the One ʻOhana Initiative, to be paid in four installments. Learn more about the global settlement here and more about the One ʻOhana Initiative here. 

What do we know about the cause of the fire? 

On August 27, 2023, we disclosed several important facts about the events on August 8:

  • A fire at 6:30 a.m. appears to have been caused by power lines that fell in high winds.
  • The Maui County Fire Department responded to this fire, reported it was “100% contained,” left the scene and later declared it had been “extinguished.”
  • At about 3:00 p.m., a time when all of Hawaiian Electric’s power lines to customers in West Maui had been de-energized for more than six hours, a second fire began in the same area.
  • The cause of this devastating fire at around 3:00 p.m. has not been established.

View the timeline here.

We have cooperated with the investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives into the cause of the fires and the investigation by the Hawaii State Attorney General’s office into the response to the fires.

How has Hawaiian Electric enhanced its wildfire mitigation program? 

Since August 2023, Hawaiian Electric has taken action to enhance its wildfire safety strategy and strengthen Hawaiʻi’s infrastructure to ensure the resilience and reliability of the grid. The utility has launched new operational practices to keep our communities safe, including a public safety power shutoff program as a last line of defense. Over 35% of the utility’s capital budget in 2024 — nearly $120 million — is dedicated to these efforts. 

Hawaiian Electric first began developing its Wildfire Safety Strategy in 2019 and continues to adapt it to address the elevated risks in Hawaiʻi. This three-phase strategy focuses on:

  • Immediate and enhanced operational actions to reduce risk
  • Near-term work to harden the grid and reduce potential hazards
  • Longer-term investments and tools to address continuing and emerging threats

Learn more here. 

Does Hawaiian Electric have a Public Safety Power Shutoff program? 

Starting July 1, 2024, Hawaiian Electric is prepared to preemptively shut off power in areas that appear at high risk of wildfire as part of its Public Safety Power Shutoff (PSPS) program. Customers are urged to prepare for emergencies and the possibility of extended power outages during periods of high winds and dry conditions. 

Before activating a PSPS, Hawaiian Electric will notify the public and coordinate with government officials, first responders and emergency response agencies. Hawaiian Electric will provide public notifications through news releases, social media, online outage maps and updates to its website. If weather conditions change suddenly, shutoff may occur with little or no notice. 

Looking ahead, Hawaiian Electric plans to continue to enhance and refine its PSPS program to make it more targeted and effective. These plans currently include implementing additional enhanced technology, weather forecasting targeting high-risk areas, customer education, plans for backup for critical customers, and community hubs and resources. 

Is American Savings Bank impacted by the wildfire litigation in any way? 

No. ASB is an independent company. None of the legal claims related to the Maui wildfires involve ASB. ASB customer deposits are safe. There is no risk to customer deposits as a result of legal claims related to the fires and ASB is well positioned to remain focused on supporting and serving Hawai‘i’s residents, businesses, and communities as it has for nearly 100 years. 

How does this impact ASB’s future? 

Consistent with our strategy designed to support a strong, financially healthy enterprise that will empower a thriving future for Hawai‘i, HEI recently announced that we have been undertaking a comprehensive review of strategic options for American Savings Bank. There is no set timetable for this review, and no assurance that we will take action as a result. Importantly, we are undertaking this work from a position of strength, as American Savings Bank is in a strong financial position with high liquidity, deep borrowing capacity and a loyal, long-tenured base of deposits. 

What are HEI’s plans for the shareholder dividend? 

The HEI Board determined that suspending the quarterly cash dividend would allow us to continue to allocate cash to rebuilding and restoring efforts and best position us to serve our customers and communities. The policy will be something that we continue to review, however, we have not set specific milestones or triggering events.

With that said, we recognize that this may impact many of our shareholders who rely on this dividend as a source of income. We regret any hardship the suspension of the dividend may cause, and we intend to be a strong, dividend-paying company in the future.