Hawaiian Electric is defending itself over claims it did not do enough as wildfires in Maui raged in efforts to stem the stock’s free fall.
The power provider has no plans to restructure but will begin seeking advice from experts on the matter, according to a company update released on Friday.
HAWAIIAN ELECTRIC SHARES TUMBLE AS UTILITY FACES SCRUTINY AMID DEADLY MAUI WILDFIRES
Shares of Hawaiian Electric got a bump but are still hovering near a 37-year low with a 62.8% drop over the last five days.
“Hawaiian Electric’s primary focus right now is on supporting emergency response efforts, helping our customers and employees and continuing to restore power as quickly as possible,” the company said in its update.
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“As of Aug. 17, 2023, approximately 1,900 customers in West Maui remained without electricity. Power has been restored to more than 80% of customers who have been without electricity since last week,” the update continued. “Unlike in California, there is no precedent in Hawaii applying inverse condemnation to a private party like an investor-owned utility. It has only been applied to government entities.”
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Hawaiian Electric has now been hit with two lawsuits by residents of the state, who claim it is responsible for the wildfires that killed at least 96 people. The proposed class-action lawsuits were filed on Saturday in state courts and seek to represent thousands of Hawaii residents affected by the devastating fires that left thousands homeless and Lahaina in ruins.
Lahaina residents, in one of the lawsuits, claimed Hawaiian Electric is responsible for the fires after failing to shut off power lines despite warnings from the National Weather Service that high winds could blow those lines down and spark fast-spreading wildfires. The company defended those allegations.
“Like many utilities, a power shutoff program is not part of Hawaiian Electric’s high-wind management protocols” it said.
Hawaiian Electric also told investors it has now deployed over 400 employees and contractors to bring power back to communities in West Maui and Upcountry Maui and are working to replace poles and other equipment damaged by the fires and high winds.
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