Hawaiian Electric Nears Wildfire Settlement Aiming to Avoid PG&E’s Bankruptcy Fate --- WSJ

Hawaiian Electric is nearing a deal to resolve mass lawsuits over last year’s Maui wildfires that could avoid a bankruptcy filing by the utility, people familiar with the situation said.

Hawaiian Electric, Hawaii's largest electric utility company, is reportedly close to resolving mass lawsuits related to the 2023 Maui wildfires, which could prevent a potential bankruptcy filing [1]. The lawsuits, which allege that Hawaiian Electric was responsible for starting the fires that destroyed parts of Lahaina and resulted in the deaths of over 100 people, have placed significant financial strain on the company.

Despite the wildfire-related expenses, which amounted to $138.4 million in 2023 [1], Hawaiian Electric executives maintain that the company remains financially stable [1]. The utility holding company, Hawaiian Electric Industries Inc., had approximately $137 million in cash at the end of the year, and the utility subsidiary had $106 million [1]. Furthermore, Hawaiian Electric is exploring the option of accessing an additional $200 million to $250 million through a new credit account collateralized by accounts receivable [1].

The potential settlement of these lawsuits comes as a relief for Hawaiian Electric, which had faced widespread speculation of a financial crisis similar to that of Pacific Gas and Electric Corp. (PG&E), which filed for bankruptcy in 2019 after devastating wildfires and ensuing lawsuits in Northern California [1]. Hawaiian Electric's stock price and bond rating had also suffered as a result [1].

Sources:
[1] Civil Beat. (2024, February 12). Hawaiian Electric says it is financially stable despite Maui wildfire costs. https://www.civilbeat.org/2024/02/hawaiian-electric-says-it-is-financially-stable-despite-maui-wildfire-costs/