Hawaiian Electric Industries Inc. has provided an update to investors regarding the recent wildfires in Maui. Despite the challenges faced, the company is not planning a restructuring. Instead, it seeks advice from experts to ensure its resilience as a strong utility.
The news, released in a regulatory filing, has had a positive impact on the company’s stock price, which rose by 2% in premarket trading. This comes as a relief after the stock fell to its lowest level in 37 years on Thursday.
Following lawsuits alleging that the company’s actions contributed to the devastation caused by the wildfires, Hawaiian Electric Industries Inc. has engaged in talks with advisors. These discussions were reported by The Wall Street Journal late Wednesday.
S&P Global recently downgraded the company’s credit rating to junk due to concerns related to the lawsuits and other factors.
As of Thursday, approximately 1,900 customers in West Maui were still without power. To rectify this, Hawaiian Electric has deployed more than 400 employees and contractors. They are working tirelessly to restore power, replace damaged equipment such as poles, and assess the extent of the damage caused by fires and strong winds.
It is worth noting that unlike in California, there is no precedent in Hawai’i for applying inverse condemnation to a private entity like an investor-owned utility. This concept has only been applied to government entities. Similarly, there is no precedent for applying a theory of inverse condemnation to government entities based on damages they’ve caused, as opposed to the taking of property.
Hawaiian Electric Industries Inc. remains committed to overcoming these challenges and providing reliable utility services to its customers in Maui and beyond.