Details on Maui Fire Settlement Costs

Hawaiian Electric has raised a "going concern" risk in its latest quarterly earnings report, revealing a lack of a financing plan for the $1.99 billion settlement related to the devastating Maui wildfires. The utility company, along with its parent, Hawaiian Electric Industries (HEI), is collaborating with financial advisers to devise a strategy for their share of a broader $4 billion settlement reached with wildfire victims. The company acknowledged that without a definitive financing plan, it must disclose this risk in its financial statements. The settlement, which is to be paid in four installments, includes Hawaiian Electric's previous contribution of $75 million to the One Ohana Initiative. HEI's CEO, Scott Seu, expressed confidence that the settlement would facilitate a resolution to ongoing litigation related to the wildfires, which claimed over 100 lives on August 8, 2022. Payments are anticipated to commence in mid-2025, pending judicial review and approval. In addition to Hawaiian Electric, other defendants in the settlement include the County of Maui, Kamehameha Schools, and Hawaiian Telcom. Hawaii Governor Josh Green indicated that part of the settlement would be funded by $250 million in insurance for state buildings affected by the fires. The Hawaii Legislature's approval is required for the settlement, with legal representatives of fire victims expressing optimism about its passage. Kamehameha Schools has committed to contributing $872.5 million, with plans for installment payments. The settlement aims to address various claims, including wrongful deaths and property losses, while also supporting Native Hawaiian education projects.