Electric utility company Hawaiian Electric Industries (NYSE: HE) was on an upswing in trading on Friday as it issued an important update to its investors. The company stated that while it was consulting different experts, its goal was “not to restructure the company but to endure as a financially strong utility that Maui and this state need.”
The company clarified that a public power safety shutoff program was not a part of its “high-wind management protocols.” Hawaiian Electric added that precautionary short-notice power shutoffs have to be coordinated with first responders, and in places like Lahaina, an electricity shutoff would have cut off the water supply as it powers some of the pumps that provide the water needed for firefighting.
Hawaiian Electric highlighted its efforts to restore power and stated that as of August 17, 2023, the company had restored power to more than 80% of its customers. Nevertheless, around 1,900 customers in West Maui were still without electricity.
Hawaiian Electric’s investor update was in response to a Wall Street Journal report stating that Hawaiian Electric was in discussions with restructuring advisory firms to explore options regarding the company’s rising financial and legal challenges. The company has been hit with lawsuits alleging that its decisions leading up to and during the wildfires contributed to the severity of damages experienced by Maui residents.
However, the company stated in its investor update that, “unlike in California, there is no precedent in Hawai‘i applying inverse condemnation to a private party like an investor-owned utility. It has only been applied to government entities,” nor can inverse condemnation be applied to “government entities based on damages that they’ve caused.”
Analysts remain sidelined on HE stock with a Hold consensus rating based on three Holds and one Sell.
