Hawaiian Electric faces financial, legal woes from deadly Maui wildfires
2023.09.15 07:08
© Reuters. FILE PHOTO: A view of the remains of a building after it was destroyed during wildfires, in Kula, Maui island, Hawaii, U.S., August 13, 2023. REUTERS/Mike Blake/File Photo
(Reuters) -The U.S. House Energy and Commerce Committee on Thursday asked Hawaiian Electric’s CEO Shelee Kimura to testify at a hearing investigating the causes of the wildfire that killed at least 115 people and razed the historic town of Lahaina.
The Honolulu-based power company’s market value has slumped by more than 60% to $1.45 billion since Aug. 8, when the wildfires began, amid scrutiny over its involvement.
Here is a sequence of key events involving the troubled utility:
Date Development
Aug. 8 Wildfires begin at night and wreak destruction in
Lahaina, a city of 13,000 people in northwestern
Maui.
Aug. 11 Hawaiian Electric says it is working with the
county to investigate the cause of wildfires.
Aug. 12 Residents file two class-action lawsuits in state
courts claiming that the utility is responsible
for the wildfires.
Aug. 15 Ratings agency S&P downgrades Hawaiian Electric
to junk status as investor concerns grow.
Aug. 16 The Wall Street Journal reports Hawaiian Electric
is speaking with restructuring advisory firms to
address potential financial and legal challenges.
Aug. 17 Hawaiian Electric shares briefly hit their lowest
since 1985.
Aug. 18 Moody’s (NYSE:) also downgrades the company’s credit
rating to junk status.
Hawaiian Electric says it was not looking to
restructure but was seeking expert advice amid
questions over its role in the wildfires.
Aug. 21 Fitch also downgrades its ratings, saying the
potential liabilities are an “existential
threat.”
Aug. 22 Hawaiian Electric says it has sought advice from
boutique advisory firm Guggenheim Securities.
Aug. 24 Shareholders file a lawsuit against the utility
provider in a San Francisco federal court.
The county of Maui sues Hawaiian Electric for
negligence that led to the fires.
Hawaiian Electric suspends its dividend and
announces steps to strengthen its balance sheet.
S&P further downgrades Hawaiian Electric’s credit
rating, citing its likely inconsistent access to
capital markets.
Aug. 28 Hawaiian Electric says it had shut off its power
lines more than six hours before the Lahaina fire
began, disputing claims of its involvement.
Aug. 30 The White House says the Department of Energy
would provide $95 million to Hawaiian Electric
through the Bipartisan Infrastructure Law to
strengthen its power grids.
Sept. 5 A victim’s kin files a lawsuit against the state
of Hawaii, Maui county as well as Hawaiian
Electric for negligence leading to the wildfires.
Sept. 14 U.S. Congress asks Hawaiian Electric CEO Shelee
Kimura to testify at a hearing to find out the
cause of the deadly wildfire.
