UPDATE: Hawaiian Electric Industries Inc. has just announced a groundbreaking investment plan of nearly $2 billion over the next three years to enhance wildfire safety and power generation across the Hawaiian Islands. This urgent move comes in the wake of devastating wildfires, including the recent tragedy in Lahaina that claimed 102 lives.
During a conference call with stock analysts on September 30, Hawaiian Electric revealed its intention to allocate between $1.75 billion and $2.35 billion from 2026 to 2028. This funding aims to bolster resilience and reduce wildfire risks, a critical concern for the communities it serves, including Hawaii Island, Oahu, Maui, Molokai, and Lanai.
After posting a profit of $31 million for the third quarter, reversing a loss of $104 million a year earlier, Hawaiian Electric is positioning itself to finance these improvements through retained profits and newly issued debt. The company’s annual spending is set to increase significantly, from $400 million last year to an anticipated $550 million to $850 million annually.
Hawaiian Electric’s financial strategy includes a recent increase of its credit facility to $600 million and proceeds from $500 million in debt issued to institutional investors. This financial flexibility is vital as the company prepares to fulfill its obligations related to the wildfire disaster settlement, which totals $2 billion out of a $4 billion settlement expected to cover claims from thousands of affected residents.
Scott Seu, HEI president and CEO, emphasized the importance of these investments, stating,
“These enhancements support investments in generation, safety, reliability, and resilience across the islands we serve.”
Hawaiian Electric is also implementing critical infrastructure upgrades, having replaced or upgraded over 3,600 wooden poles and 36 miles of copper power lines since the beginning of 2024. The company has established a dedicated wildfire safety strategy, currently under review by the state Public Utilities Commission (PUC), which includes hiring an in-house meteorologist and installing over 100 weather stations in fire-prone areas.
As the company moves forward, Hawaiian Electric customers may face higher rates to cover these investment expenses, pending PUC approval. The urgency of these developments cannot be overstated, as the company strives to prevent future tragedies and ensure the safety of its communities.
With shares of HEI closing at $11.20 on Monday, down from $37.36 just days before the Maui fire, the market is closely watching how these investments will impact the company’s financial health and community safety.
As Hawaiian Electric commits to these vital improvements, the focus remains on preventing another catastrophic wildfire and enhancing energy reliability for its customers across Hawaii.
