HONOLULU–(BUSINESS WIRE)–Hawaiian Electric Industries, Inc. (NYSE: HE) (HEI), today announced that HEI and its subsidiary, Hawaiian Electric Company, Inc. (Hawaiian Electric), and other parties have reached an agreement in principle to settle all tort claims related to the August 2023 wildfires in Maui.
HEI and Hawaiian Electric, the State of HawaiÊ»i, County of Maui, Kamehameha Schools, West Maui Land Co., Hawaiian Telcom and Spectrum/Charter Communications have agreed to proposed settlement terms with lead counsel for the individuals and the class. plaintiff. Under the proposed terms, which remain subject to final documentation and court approval and exclude liability, the defendants will pay more than $4 billion to settle all tort claims arising from the August 8, 2023 wildfires in Maui. The settlement will also settle all claims among the defendants. HEI and Hawaiian Electric’s contributions total $1.99 billion (pre-tax) and include $75 million previously contributed to the One Ê»Ohana Initiative, to be paid in four installments.
Scott Seu, President and CEO of HEI, stated, One of our core values at Hawaiʻi is the concept laulima, which means many hands working together. Our board and management are very pleased to have reached this agreement so quickly, which embodies the spirit of this concept as we move forward. Not only is this good for our community, but we are confident that this settlement represents the best outcome for HEI, as it provides a clear line of sight to the resolution of tort litigation related to wildfire and increased certainty for the path of our company ahead. In the coming months, we will focus on finalizing the agreement and getting the company strong.
Settlement Details
The terms of the settlement were reached after four months of mediation between the defendants and attorneys representing the plaintiffs from Lahaina and Upcountry Maui. At this point, the proposed settlement is an agreement in principle between the defendants and the attorneys representing the individual and class plaintiffs. The agreement is based on the resolution of claims by insurance companies that have paid claims for property loss and other damages, without additional payments from the defendant. Under the terms of the agreement, plaintiffs and individual insurers have 90 days to reach an agreement on the allocation of the settlement amount between the groups, or have a judge decide whether the insurer’s exclusive remedy should seek to recover from the settlement payment. made for each plaintiff, among other terms. Once the final settlement agreement is signed, it will take effect after court review and approval. The payments will begin after approval and are expected to be made no earlier than mid-2025.
Funding Update
With today’s agreement in principle, HEI is moving forward with clarity on its responsibilities related to the Maui wildfire tort litigation. HEI and Hawaiian Electric are working closely with their financial advisors to develop a financing plan for the settlement contribution and intend to finance the settlement payment through a mix of debt, common equity, equity-related securities, or other potential options, however they may exist. there are no guarantees at this time regarding the availability or terms of such financing.
HEI will further discuss the settlement in its quarterly earnings call scheduled for Friday, August 9.
ABOUT HEY
The HEI family of companies provides energy and financial services that power many of Hawai’i’s economic and community activities. HEI’s electric utility, Hawaiian Electric, supplies power to approximately 95% of Hawai’i’s population and is pursuing an ambitious effort to decarbonize its operations and the broader state economy. Our banking subsidiary, American Savings Bank, is one of Hawai’i’s largest financial institutions, providing a variety of banking and other financial services and working to promote economic growth, affordability and financial well-being. HEI also helps achieve Hawai’i’s sustainability goals through investments by its unregulated subsidiary, Pacific Current. For more information, visit www.hei.com.
Forward-Looking Statement
These statements may contain forward-looking statements, which include statements that are predictive, dependent on or referring to future events or conditions, and typically include words such as will, anticipate, anticipate, intend, plan, believe, predict, estimate or the same expression. In addition, any statement about future financial performance, ongoing business strategies or prospects, or possible future actions is also a forward-looking statement. Forward-looking statements are based on current expectations and forecasts of future events and are subject to risks, uncertainties and the accuracy of assumptions about HEI, Hawaiian Electric and its subsidiaries, the performance of the industries in which they do business and economic, political and market factors, among others . These forward-looking statements are not guarantees of future performance.
The forward-looking statements in this statement should be read in conjunction with the Cautionary Notes Regarding Forward-Looking Statements and the Discussion of Risk Factors (which are incorporated by reference herein) set forth in HEI’s Annual Report on Form 10-K for the year ended December 31. , 2023 and other HEI periodic reports that discuss important factors that could cause HEI’s results to differ materially from those anticipated in the statement. This forward-looking statement speaks only as of the date the report, presentation or filing is made. Except as required by federal securities laws, HEI, Hawaiian Electric and its subsidiaries undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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Investor Contact
Mateo Garcia
Director, Investor Relations
ir@hei.com
(808) 543-7300
Media Contact
Julie Smolinski
VP, Strategy & Corporate Sustainability
media@hei.com
(808) 543-5874
Source: Hawaiian Electric Industries (NYSE:), Inc.
