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Electric utility segment
 6 Months Ended
Jun. 30, 2019
Electric utility subsidiary [Abstract]  
Electric utility segment Electric utility segment
HECO Capital Trust III. Trust III, a statutory trust, which was formed to effect the issuance of $50 million of cumulative quarterly income trust preferred securities in 2004 (2004 Trust Preferred Securities), and had at all times been a wholly-owned unconsolidated subsidiary of Hawaiian Electric, redeemed $50 million of its outstanding 2004 Trust Preferred Securities and $1.5 million of trust common securities on May 15, 2019. Subsequently, a Certificate of Cancellation of Statutory Trust was filed with the Delaware Secretary of State in order to cancel the Trust III, which became effective on June 10, 2019.
For the six months ended June 30, 2019 and 2018, Trust III’s income statements consisted of $1.2 million and $1.7 million, respectively, of interest income received from the 2004 Debentures; $1.2 million and $1.6 million, respectively, of distributions to holders of the Trust Preferred Securities; $37,000 and $50,000, respectively, of common dividends on the trust common securities to Hawaiian Electric.
Unconsolidated variable interest entities.
Power purchase agreements.  As of June 30, 2019, the Utilities had four PPAs for firm capacity (excluding the PGV PPA as PGV has been offline since May 2018 due to lava flow on Hawaii Island) and other PPAs with independent power producers (IPPs) and Schedule Q providers (i.e., customers with cogeneration and/or power production facilities who buy power from or sell power to the Utilities), none of which are currently required to be consolidated as VIEs.
Pursuant to the current accounting standards for VIEs, the Utilities are deemed to have a variable interest in Kalaeloa Partners, L.P. (Kalaeloa), AES Hawaii, Inc. (AES Hawaii) and Hamakua Energy by reason of the provisions of the PPA that the Utilities have with the three IPPs. However, management has concluded that the Utilities are not the primary beneficiary of Kalaeloa, AES Hawaii and Hamakua Energy because the Utilities do not have the power to direct the activities that most significantly impact the three IPPs’ economic performance nor the obligation to absorb their expected losses, if any, that could potentially be significant to the IPPs. Thus, the Utilities have not consolidated Kalaeloa, AES Hawaii and Hamakua Energy in its condensed consolidated financial statements. Hamakua Energy is an indirect subsidiary of Pacific Current and is consolidated in HEI’s condensed consolidated financial statements.
For the other PPAs with IPPs, the Utilities have concluded that the consolidation of the IPPs was not required because either the Utilities do not have variable interests in the IPPs due to the absence of an obligation in the PPAs for the Utilities to absorb any variability of the IPPs, or the IPP was considered a “governmental organization,” and thus excluded from the scope of accounting standards for VIEs. Two IPPs of as-available energy declined to provide the information necessary for Utilities to determine the applicability of accounting standards for VIEs. If information is ultimately received from the IPPs, a possible outcome of future analyses of such information is the consolidation of one or both of such IPPs in the unaudited condensed consolidated financial statements. The consolidation of any significant IPP could have a material effect on the unaudited condensed consolidated financial statements, including the recognition of a significant amount of assets and liabilities and, if such a consolidated IPP were operating at a loss and had insufficient equity, the potential recognition of such losses. If the Utilities determine they are required to consolidate the financial statements of such an IPP and the consolidation has a material effect, the Utilities would retrospectively apply accounting standards for VIEs to the IPP.
Commitments and contingencies.
Fuel Contracts. The fuel contract entered into in January 2019, by the Utilities and PAR Hawaii Refining, LLC, for the Utilities' low sulfur fuel oil, high sulfur fuel oil, No. 2 diesel, and ultra-low sulfur diesel requirements was approved by the PUC, and became effective on April 28, 2019 and terminates on December 31, 2022. The existing fuel contracts with Island Energy Services, LLC (IES), terminated on April 27, 2019, as agreed with IES under a mutual termination and release agreement entered into in November 2018.
Contingencies. The Utilities are subject in the normal course of business to pending and threatened legal proceedings. Management does not anticipate that the aggregate ultimate liability arising out of these pending or threatened legal proceedings will be material to its financial position. However, the Utilities cannot rule out the possibility that such outcomes could have a material effect on the results of operations or liquidity for a particular reporting period in the future.

Power purchase agreements.  Purchases from all IPPs were as follows:
 
 
Three months ended June 30
 
Six months ended June 30
(in millions)
 
2019
 
2018
 
2019
 
2018
Kalaeloa
 
$
61

 
$
52

 
$
101

 
$
92

AES Hawaii
 
32

 
32

 
64

 
69

HPOWER
 
19

 
17

 
37

 
32

Puna Geothermal Venture
 
—

 
4

 
—

 
15

Hamakua Energy
 
18

 
15

 
34

 
22

Wind IPPs
 
23

 
31

 
43

 
53

Solar IPPs
 
8

 
8

 
15

 
14

Other IPPs 1
 
1

 
2

 
2

 
4

Total IPPs
 
$
162

 
$
161

 
$
296

 
$
301

 
1 
Includes hydro power and other PPAs
Kalaeloa Partners, L.P.  Under a 1988 PPA, as amended, Hawaiian Electric is committed to purchase 208 MW of firm capacity from Kalaeloa. Hawaiian Electric and Kalaeloa are currently in negotiations to address the PPA term that ended on May 23, 2016. The PPA automatically extends on a month-to-month basis as long as the parties are still negotiating in good faith. Hawaiian Electric and Kalaeloa have agreed that neither party will terminate the PPA (which has been subject to automatic extension on a month-to-month basis) prior to October 31, 2019, to allow for a negotiated resolution and PUC approval.
AES Hawaii, Inc. Under a PPA entered into in March 1988, as amended (through Amendment No. 2) for a period of 30 years ending September 2022, Hawaiian Electric agreed to purchase 180 MW of firm capacity from AES Hawaii. Hawaiian Electric and AES Hawaii have been in dispute over an additional 9 MW of capacity. In February 2018, Hawaiian Electric reached agreement with AES Hawaii on an amendment to the PPA. However, in June 2018, the PUC issued an order suspending review of the amendment pending a DOH decision on AES’ request for approval of its Emission Reduction Plan and partnership with Hawaiian Electric. If approved by the PUC, the amendment will resolve AES Hawaii’s claims related to the additional capacity.
Hu Honua Bioenergy, LLC (Hu Honua). In May 2012, Hawaii Electric Light signed a PPA, which the PUC approved in December 2013, with Hu Honua for 21.5 MW of renewable, dispatchable firm capacity fueled by locally grown biomass from a facility on the island of Hawaii. Under the terms of the PPA, the Hu Honua plant was scheduled to be in service in 2016. However, Hu Honua encountered construction and litigation delays, which resulted in an amended and restated PPA between Hawaii Electric Light and Hu Honua dated May 5, 2017. In July 2017, the PUC approved the amended and restated PPA, which becomes effective once the PUC’s order is final and non-appealable. In August 2017, the PUC’s approval was appealed by a third party. On May 10, 2019, the Hawaii Supreme Court issued a decision remanding the matter to the PUC for further proceedings consistent with the court’s decision which must include express consideration of Green House Gas emissions that would result from approving the PPA, whether the cost of energy under the PPA is reasonable in light of the potential for GHG emissions, and whether the terms of the PPA are prudent and in the public interest, in light of its potential hidden and long-term consequences. On June 20, 2019, the PUC issued an order reopening the docket for further proceedings. The parties have submitted updated status reports and the PUC will be establishing a procedural schedule. Hu Honua expects to complete construction of the plant in the fourth quarter of 2019.
Utility projects.  Many public utility projects require PUC approval and various permits from other governmental agencies. Difficulties in obtaining, or the inability to obtain, the necessary approvals or permits can result in significantly increased project costs or even cancellation of projects. In the event a project does not proceed, or if it becomes probable the PUC will disallow cost recovery for all or part of a project, or if PUC-imposed caps on project costs are expected to be exceeded, project costs may need to be written off in amounts that could result in significant reductions in Hawaiian Electric’s consolidated net income.
Enterprise Resource Planning/Enterprise Asset Management (ERP/EAM) implementation project. The ERP/EAM Implementation Project went live in October 2018. In the Hawaiian Electric 2017 rate case, a settlement agreement approved by the PUC included authorization for the deferred project costs to accrue a return at 1.75% after the project went into service and until the deferred project costs are included in rate base, and for amortization of the deferred costs to not begin until the amortization expense is incorporated in rates and the unamortized deferred project costs are included in rate base. As of June 30, 2019, the total deferred project costs and accrued carrying costs after the project went into service amounted to $58.9 million.
In February 2019, the PUC approved a methodology for passing the future cost saving benefits of the new ERP/EAM system to customers developed by the Utilities in collaboration with the Consumer Advocate. The Utilities filed a benefits clarification document on June 10, 2019, reflecting $150 million in future net O&M expense reductions and cost avoidance, and $96 million in capital cost reductions and tax savings over the 12-year service life. To the extent the reduction in O&M expense relates to amounts reflected in electric rates, the Utilities would reduce future rates for such amounts. As of June 2019, the Utilities recorded $0.5 million as a regulatory liability for amounts to be returned to customers for reduction in O&M expense included in rates.
West Loch PV Project. In June 2017, the PUC approved the expenditure of funds for Hawaiian Electric to build, own and operate a utility-owned, grid-tied 20-MW (ac) solar facility on property owned by the Department of the Navy, including a proposed project cost cap of $67 million and a performance guarantee to provide energy at 9.56 cents/kWh or less to the system.
In approving the project, the PUC agreed that the project is eligible for recovery of costs offset by related net benefits under the newly-established major project interim recovery (MPIR) adjustment mechanism. (See “Decoupling” section below for MPIR guidelines and cost recovery discussion.) Hawaiian Electric has provided supplemental materials, as requested by the PUC, to support meeting the MPIR guidelines, accompanied by system performance guarantee and cost savings sharing mechanisms. A decision on these matters is pending.
Hawaiian Electric executed a fixed-price Engineering, Procurement, and Construction (EPC) contract for the project on December 6, 2017. Construction of the facility began in the second quarter of 2018, and the facility is expected to be placed in service no later than October 2019. Project costs incurred as of June 30, 2019 amounted to $46.5 million.
Environmental regulation.  The Utilities are subject to environmental laws and regulations that regulate the operation of existing facilities, the construction and operation of new facilities and the proper cleanup and disposal of hazardous waste and toxic substances.
Hawaiian Electric, Hawaii Electric Light and Maui Electric, like other utilities, periodically encounter petroleum or other chemical releases associated with current or previous operations. The Utilities report and take action on these releases when and as required by applicable law and regulations. The Utilities believe the costs of responding to such releases identified to date will not have a material effect, individually or in the aggregate, on Hawaiian Electric’s consolidated results of operations, financial condition or liquidity.
Former Molokai Electric Company generation site.  In 1989, Maui Electric acquired by merger Molokai Electric Company. Molokai Electric Company had sold its former generation site (Site) in 1983, but continued to operate at the Site under a lease until 1985. The Environmental Protection Agency (EPA) has since identified environmental impacts in the subsurface soil at the Site. In cooperation with the Hawaii Department of Health and EPA, Maui Electric further investigated the Site and the Adjacent Parcel to determine the extent of impacts of polychlorinated biphenyls (PCBs), residual fuel oils and other subsurface contaminants. Maui Electric has a reserve balance of $2.7 million as of June 30, 2019, representing the probable and reasonably estimable cost for remediation of the Site and the Adjacent Parcel; however, final costs of remediation will depend on cleanup approach implemented.
Pearl Harbor sediment study. In July 2014, the U.S. Navy notified Hawaiian Electric of the Navy’s determination that Hawaiian Electric is a Potentially Responsible Party responsible for the costs of investigation and cleanup of PCB contamination in sediment in the area offshore of the Waiau Power Plant as part of the Pearl Harbor Superfund Site. Hawaiian Electric was also required by the EPA to assess potential sources and extent of PCB contamination onshore at Waiau Power Plant.
As of June 30, 2019, the reserve account balance recorded by Hawaiian Electric to address the PCB contamination was $4.7 million. The reserve balance represents the probable and reasonably estimable cost for the onshore investigation and the remediation of PCB contamination in the offshore sediment. The final remediation costs will depend on the potential onshore source control requirements and actual offshore cleanup costs.
Regulatory proceedings
Decoupling. Decoupling is a regulatory model that is intended to provide the Utilities with financial stability and facilitate meeting the State of Hawaii’s goals to transition to a clean energy economy and achieve an aggressive renewable portfolio standard. The decoupling mechanism has the following major components: (1) monthly revenue balancing account (RBA) revenues or refunds for the difference between PUC-approved target revenues and recorded adjusted revenues, which delinks revenues from kilowatthour sales, (2) RAM revenues for escalation in certain O&M expenses and rate base changes, (3) MPIR component, (4) performance incentive mechanisms (PIMs), and (5) an earnings sharing mechanism, which would
provide for a reduction of revenues between rate cases in the event the utility exceeds the return on average common equity (ROACE) allowed in its most recent rate case. Under the decoupling mechanism, triennial general rate cases are required.
Rate adjustment mechanism. The RAM is based on the lesser of: a) an inflationary adjustment for certain O&M expenses and return on investment for certain rate base changes, or b) cumulative annual compounded increase in Gross Domestic Product Price Index applied to annualized target revenues (the RAM Cap). Annualized target revenues reset upon the issuance of an interim or final decision and order (D&O) in a rate case. Each of the Utilities’ RAM revenues was below its respective RAM Cap in 2019. The 2019 RAM also incorporated additional amortization of the regulatory liability associated with certain excess deferred taxes resulting from the 2017 Tax Cuts and Jobs Act decrease in tax rates. The reduction in the RAM revenues will be counterbalanced by the lower income tax expense, therefore will have no net income impact.
Major project interim recovery. On April 27, 2017, the PUC issued an order that provided guidelines for interim recovery of revenues to support major projects placed in service between general rate cases.
The PUC approved recovery of capital costs under the MPIR for Schofield Generating Station, which increased revenues in 2018 by $3.6 million and will be collected in customer bills beginning in June 2019. In February 2019, Hawaiian Electric submitted an MPIR filing of $19.8 million for 2019 (which accrued effective January 1, 2019) that included the 2019 return on project amount (up to the capped amount) in rate base, depreciation and incremental O&M expenses, for collection from June 2020 through May 2021. The PUC has also indicated that it intends to approve MPIR recovery for the West Loch PV Project.
Performance incentive mechanisms. The PUC has ordered the following PIMs.
•
Service Quality performance incentives are measured on a calendar-year basis. The PIM tariff requires the performance targets, deadbands and the amount of maximum financial incentives used to determine the PIM financial incentive levels for each of the PIMs to be re-determined upon issuance of an interim or final order in a general rate case for each utility.
•
Service Reliability Performance measured by System Average Interruption Duration and Frequency Indexes (penalties only). Target performance is based on each utility’s historical 10-year average performance with a deadband of one standard deviation. The maximum penalty for each performance index is 20 basis points applied to the common equity share of each respective utility’s approved rate base (or maximum penalties of approximately $6.7 million - for both indices in total for the three utilities).
•
Call Center Performance measured by the percentage of calls answered within 30 seconds. Target performance is based on the annual average performance for each utility for the most recent 8 quarters with a deadband of 3% above and below the target. The maximum penalty or incentive is 8 basis points applied to the common equity share of each respective utility’s approved rate base (or maximum penalties or incentives of approximately $1.3 million - in total for the three utilities).
•
In 2018, the Utilities accrued $2.1 million in estimated penalties for service reliability net of call center performance incentives for 2018. As a result of a PUC order denying the exclusion of the impact of a specific project on the service reliability performance, in May 2019, Hawaiian Electric accrued an additional $1.3 million in service reliability penalties related to 2018. The net service quality performance penalties related to 2018 were reflected in the 2019 annual decoupling filing and will reduce customer rates in the period June 1, 2019 through May 31, 2020.
•
In May 2019, the Utilities filed an application for approval to among other things, modify the measurement of performance for the System Average Interruption Duration and Frequency Indexes, adjust the PIM targets, deadbands, and financial incentive levels for each of the PIMs upon issuance of a final order in a general rate case, and adjust the call center performance PIM level for Hawaii Electric Light.
•
Procurement of low-cost variable renewable resources through the request for proposal process in 2018 is measured by comparison of the procurement price to target prices. The incentive is a percentage of the savings determined by comparing procured price to a target of 11.5 cents per kilowatt-hour for renewable projects with storage capability and 9.5 cents per kilowatt-hour for energy-only renewable projects. For PPAs filed by December 31, 2018 and subsequently approved by the PUC, the incentive is 20% of the savings, with a cap of $3.5 million for the three utilities in total. For PPAs filed in January, February, and March 2019 and subsequently approved by the PUC, scaled incentives are 15%, 10% and 5%, respectively, of the savings for PPAs, with a cap of $3 million for the three utilities in total. There are no penalties. On March 25, 2019, the PUC approved six contracts, which were filed by December 31, 2018 and qualified for incentives. Half of the incentive is earned upon PUC approval of the contract and the other half is eligible to be earned in the year following the in-service date of the projects. The Utilities accrued $1.7 million in incentives in March 2019, which were reflected in the 2019 annual decoupling filing and will be recovered in rates in the period June 1, 2019 through May 31, 2020.
Annual decoupling filings. The net annual incremental amounts approved to be collected (refunded) from June 1, 2019 through May 31, 2020 are as follows:
(in millions)
 
Hawaiian Electric
 
Hawaii Electric Light
 
Maui Electric
 
Total
2019 Annual incremental RAM adjusted revenues, net of changes in Tax Act adjustment*
 
$
6.5

 
$
1.1

 
$
5.4

 
$
13.0

Annual change in accrued RBA balance as of December 31, 2018 (and associated revenue taxes) which incorporates MPIR recovery
 
(12.2
)
 
(2.0
)
 
0.8

 
(13.4
)
Performance Incentive Mechanisms (net)
 
(1.3
)
 
—

 
(0.4
)
 
(1.7
)
Net annual incremental amount to be collected (refunded) under the tariffs
 
$
(7.0
)
 
$
(0.9
)
 
$
5.8

 
$
(2.1
)
*   The 2017 Tax Cuts and Jobs Act (the Tax Act) had two incremental impacts in 2019. First, the 2019 RAM calculation for all of the Utilities incorporated additional amortization of the regulatory liability associated with certain deferred taxes. Secondly, Maui Electric incorporated a $2.8 million adjustment in its 2018 annual decoupling filing related to the Tax Act which is not recurring in 2019.
Performance-based regulation proceeding. On April 18, 2018, the PUC issued an order, instituting a proceeding to investigate performance-based regulation (PBR). The PUC stated that PBR seeks to utilize both revenue adjustment mechanisms and performance mechanisms to more strongly align utilities’ incentives with customer interests.
The order stated that, in general, the PUC is interested in ratemaking elements and/or mechanisms that result in:
•
Greater cost control and reduced rate volatility;
•
Efficient investment and allocation of resources regardless of classification as capital or operating expense;
•
Fair distribution of risks between utilities and customers; and
•
Fulfillment of State policy goals.
The proceeding has two phases. Phase 1 examined the current regulatory framework and identified those areas of utility performance that are deserving of further focus in Phase 2. In May 2019, the PUC issued an order concluding Phase 1, which established guiding principles, regulatory goals, and priority outcomes to guide the development of the PBR mechanisms in Phase 2. The PUC identified the following guiding principles, which will inform the development of the PBR framework: 1) a customer-centric approach, 2) administrative efficiency to reduce regulatory burdens; and 3) utility financial integrity to maintain the utility’s financial health. Priority goals (and priority outcomes) identified by the PUC were: enhance customer experience (affordability, reliability, interconnection experience, and customer engagement), improve utility performance (cost control, DER asset effectiveness, and grid investment efficiency), and advance societal outcomes (capital formation, customer equity, greenhouse gas reduction, electrification of transportation, and resilience).
The order also outlined the PUC’s vision of a comprehensive PBR framework that would be further developed in Phase 2. The framework envisioned would include 1) a five-year multi-year rate plan with an index-driven annual revenue adjustment based on an inflation factor, an X-factor which would encompass productivity, a Z-factor to account for exceptional circumstances not in the utility’s control and a customer dividend, 2) a symmetric earnings sharing mechanism that would help ensure that utility earnings do not excessively benefit or suffer from external factors outside of utility control or unforeseen results of regulatory mechanisms, 3) off-ramp provisions, 4) continuation of the RBA, MPIR adjustment mechanism, the pension and OPEB tracking mechanism, and other recovery mechanisms, and 5) a portfolio of performance incentive mechanisms for customer engagement and DER asset effectiveness (rewards only), and interconnection experience (both rewards and penalties), in addition to scorecards to track progress against targeted performance levels, shared savings mechanisms to apportion savings to the utility and customers, and reported metrics.
The Phase 2 schedule includes working group meetings through the first half of 2020, followed by statements of positions, evidentiary hearing in October 2020 and anticipated decision in December 2020.
Most recent rate proceedings.
Hawaiian Electric 2020 test year rate case. On April 26, 2019, Hawaiian Electric filed a notice that it intends to file an application for a general rate increase after June 30, 2019, but not later than September 30, 2019, based on a 2020 calendar year test period.
Maui Electric consolidated 2015 and 2018 test year rate cases. On August 9, 2018, the PUC approved an interim rate increase based on a stipulated settlement, that included the effects of the 2017 Tax Act, between Maui Electric and the Consumer Advocate. On March 18, 2019, the PUC issued its D&O that approved, with certain modifications, the stipulated settlement, addressed all issues in the rate case.
Revised tariffs reflecting a final increase of $12.2 million over revenues at current effective rates based on the approved 7.43% rate of return (which incorporates a ROACE of 9.5% and a capital structure that includes a 57% common equity capitalization) on a $454 million rate base became effective on June 1, 2019. Maui Electric’s ECRC tariff, resulting in the recovery of all fuel and purchased energy through the ECRC and the removal of the recovery of these costs from base rates, will be effective September 1, 2019. The ECRC will reflect a 98%/2% fossil fuel generation cost risk-sharing split between ratepayers and Maui Electric, with an annual maximum increase or decrease to revenues to $0.6 million for the utility.
Hawaii Electric Light 2019 test year rate case. On December 14, 2018, Hawaii Electric Light filed an application for a general rate increase for its 2019 test year rate case, requesting an increase of $13.4 million over revenues at current effective rates (for a 3.4% increase in revenues), based on an 8.3% rate of return (which incorporates a ROACE of 10.5%). The procedural schedule for the proceeding includes an interim decision by November 14, 2019, and evidentiary hearings during the week of December 16, 2019.
Condensed consolidating financial information. Condensed consolidating financial information for Hawaiian Electric and its subsidiaries are presented for the three and six month periods ended June 30, 2019 and 2018, and as of June 30, 2018 and December 31, 2018.
Hawaiian Electric unconditionally guarantees Hawaii Electric Light’s and Maui Electric’s obligations (a) to the State of Hawaii for the repayment of principal and interest on Special Purpose Revenue Bonds issued for the benefit of Hawaii Electric Light and Maui Electric, (b) under their respective private placement note agreements and the Hawaii Electric Light notes and Maui Electric notes issued thereunder and (c) relating to the trust preferred securities of Trust III, which were redeemed on May 15, 2019. Hawaiian Electric is also obligated, after the satisfaction of its obligations on its own preferred stock, to make dividend, redemption and liquidation payments on Hawaii Electric Light’s and Maui Electric’s preferred stock if the respective subsidiary is unable to make such payments.

Hawaiian Electric Company, Inc. and Subsidiaries
Condensed Consolidating Statement of Income
Three months ended June 30, 2019

(in thousands)
 
Hawaiian Electric
 
Hawaii Electric Light
 
Maui Electric
 
Other subsidiaries
 
Consolidating adjustments
 
Hawaiian Electric
Consolidated
Revenues
 
$
450,020

 
89,916

 
94,050

 
—

 
(202
)
 
$
633,784

Expenses
 
 
 
 
 
 
 
 
 
 
 
 
Fuel oil
 
125,431

 
19,941

 
36,248

 
—

 
—

 
181,620

Purchased power
 
126,871

 
24,029

 
11,954

 
—

 
—

 
162,854

Other operation and maintenance
 
78,551

 
18,031

 
22,678

 
—

 
—

 
119,260

Depreciation
 
35,868

 
10,453

 
7,592

 
—

 
—

 
53,913

Taxes, other than income taxes
 
42,590

 
8,706

 
9,147

 
—

 
—

 
60,443

   Total expenses
 
409,311

 
81,160

 
87,619

 
—

 
—

 
578,090

Operating income
 
40,709

 
8,756

 
6,431

 
—

 
(202
)
 
55,694

Allowance for equity funds used during construction
 
2,614

 
218

 
343

 
—

 
—

 
3,175

Equity in earnings of subsidiaries
 
8,086

 
—

 
—

 
—

 
(8,086
)
 
—

Retirement defined benefits expense—other than service costs
 
(567
)
 
(105
)
 
(29
)
 
—

 
—

 
(701
)
Interest expense and other charges, net
 
(13,390
)
 
(2,920
)
 
(2,422
)
 
—

 
202

 
(18,530
)
Allowance for borrowed funds used during construction
 
962

 
91

 
126

 
—

 
—

 
1,179

Income before income taxes
 
38,414

 
6,040

 
4,449

 
—

 
(8,086
)
 
40,817

Income taxes
 
5,570

 
1,241

 
933

 
—

 
—

 
7,744

Net income
 
32,844

 
4,799

 
3,516

 
—

 
(8,086
)
 
33,073

Preferred stock dividends of subsidiaries
 
—

 
133

 
96

 
—

 
—

 
229

Net income attributable to Hawaiian Electric
 
32,844

 
4,666

 
3,420

 
—

 
(8,086
)
 
32,844

Preferred stock dividends of Hawaiian Electric
 
270

 
—

 
—

 
—

 
—

 
270

Net income for common stock
 
$
32,574

 
4,666

 
3,420

 
—

 
(8,086
)
 
$
32,574



Hawaiian Electric Company, Inc. and Subsidiaries
Condensed Consolidating Statement of Comprehensive Income
Three months ended June 30, 2019

(in thousands)
 
Hawaiian Electric
 
Hawaii Electric Light
 
Maui Electric
 
Other
subsidiaries
 
Consolidating
adjustments
 
Hawaiian Electric
Consolidated
Net income for common stock
 
$
32,574

 
4,666

 
3,420

 
—

 
(8,086
)
 
$
32,574

Other comprehensive income (loss), net of taxes:
 
 

 
 

 
 

 
 

 
 

 
 

Retirement benefit plans:
 
 

 
 

 
 

 
 

 
 

 
 

Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits
 
2,321

 
352

 
289

 
—

 
(641
)
 
2,321

Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes
 
(2,298
)
 
(351
)
 
(289
)
 
—

 
640

 
(2,298
)
Other comprehensive income, net of taxes
 
23

 
1

 
—

 
—

 
(1
)
 
23

Comprehensive income attributable to common shareholder
 
$
32,597

 
4,667

 
3,420

 
—

 
(8,087
)
 
$
32,597



Hawaiian Electric Company, Inc. and Subsidiaries
Condensed Consolidating Statement of Income
Three months ended June 30, 2018

(in thousands)
 
Hawaiian Electric
 
Hawaii Electric Light
 
Maui Electric
 
Other subsidiaries
 
Consolidating adjustments
 
Hawaiian Electric
Consolidated
Revenues
 
$
431,699

 
89,548

 
86,938

 
—

 
(59
)
 
$
608,126

Expenses
 
 
 
 
 
 
 
 
 
 
 
 
Fuel oil
 
120,007

 
19,432

 
32,278

 
—

 
—

 
171,717

Purchased power
 
121,812

 
24,664

 
14,262

 
—

 
—

 
160,738

Other operation and maintenance
 
76,845

 
19,015

 
16,782

 
—

 
—

 
112,642

Depreciation
 
34,391

 
10,038

 
5,932

 
—

 
—

 
50,361

Taxes, other than income taxes
 
40,951

 
8,408

 
8,165

 
—

 
—

 
57,524

   Total expenses
 
394,006

 
81,557

 
77,419

 
—

 
—

 
552,982

Operating income
 
37,693

 
7,991

 
9,519

 
—

 
(59
)
 
55,144

Allowance for equity funds used during construction
 
2,588

 
124

 
271

 
—

 
—

 
2,983

Equity in earnings of subsidiaries
 
9,080

 
—

 
—

 
—

 
(9,080
)
 
—

Retirement defined benefits expense—other than service costs
 
(554
)
 
(105
)
 
(329
)
 
—

 
—

 
(988
)
Interest expense and other charges, net
 
(12,930
)
 
(2,922
)
 
(2,367
)
 
—

 
59

 
(18,160
)
Allowance for borrowed funds used during construction
 
1,150

 
77

 
138

 
—

 
—

 
1,365

Income before income taxes
 
37,027

 
5,165

 
7,232

 
—

 
(9,080
)
 
40,344

Income taxes
 
5,588

 
1,269

 
1,819

 
—

 
—

 
8,676

Net income
 
31,439

 
3,896

 
5,413

 
—

 
(9,080
)
 
31,668

Preferred stock dividends of subsidiaries
 
—

 
133

 
96

 
—

 
—

 
229

Net income attributable to Hawaiian Electric
 
31,439

 
3,763

 
5,317

 
—

 
(9,080
)
 
31,439

Preferred stock dividends of Hawaiian Electric
 
270

 
—

 
—

 
—

 
—

 
270

Net income for common stock
 
$
31,169

 
3,763

 
5,317

 
—

 
(9,080
)
 
$
31,169



Hawaiian Electric Company, Inc. and Subsidiaries
Condensed Consolidating Statement of Comprehensive Income
Three months ended June 30, 2018

(in thousands)
 
Hawaiian Electric
 
Hawaii Electric Light
 
Maui Electric
 
Other
subsidiaries
 
Consolidating
adjustments
 
Hawaiian Electric
Consolidated
Net income for common stock
 
$
31,169

 
3,763

 
5,317

 
—

 
(9,080
)
 
$
31,169

Other comprehensive income (loss), net of taxes:
 
 

 
 

 
 

 
 

 
 

 
 

Retirement benefit plans:
 
 

 
 

 
 

 
 

 
 

 
 

Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits
 
4,853

 
734

 
649

 
—

 
(1,383
)
 
4,853

Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes
 
(4,827
)
 
(733
)
 
(649
)
 
—

 
1,382

 
(4,827
)
Other comprehensive income, net of taxes
 
26

 
1

 
—

 
—

 
(1
)
 
26

Comprehensive income attributable to common shareholder
 
$
31,195

 
3,764

 
5,317

 
—

 
(9,081
)
 
$
31,195



Hawaiian Electric Company, Inc. and Subsidiaries
Condensed Consolidating Statement of Income
Six months ended June 30, 2019

(in thousands)
 
Hawaiian Electric
 
Hawaii Electric Light
 
Maui Electric
 
Other subsidiaries
 
Consolidating adjustments
 
Hawaiian Electric
Consolidated
Revenues
 
$
855,689

 
177,121

 
179,703

 
—

 
(234
)
 
$
1,212,279

Expenses
 
 
 
 
 
 
 
 
 
 
 
 
Fuel oil
 
234,353

 
40,783

 
67,093

 
—

 
—

 
342,229

Purchased power
 
232,094

 
43,206

 
21,999

 
—

 
—

 
297,299

Other operation and maintenance
 
159,729

 
36,767

 
40,894

 
—

 
—

 
237,390

Depreciation
 
71,735

 
20,906

 
15,219

 
—

 
—

 
107,860

Taxes, other than income taxes
 
81,221

 
16,811

 
17,215

 
—

 
—

 
115,247

   Total expenses
 
779,132

 
158,473

 
162,420

 
—

 
—

 
1,100,025

Operating income
 
76,557

 
18,648

 
17,283

 
—

 
(234
)
 
112,254

Allowance for equity funds used during construction
 
5,061

 
350

 
674

 
—

 
—

 
6,085

Equity in earnings of subsidiaries
 
19,935

 
—

 
—

 
—

 
(19,935
)
 
—

Retirement defined benefits expense—other than service costs
 
(1,134
)
 
(211
)
 
(59
)
 
—

 
—

 
(1,404
)
Interest expense and other charges, net
 
(26,190
)
 
(5,821
)
 
(4,739
)
 
—

 
234

 
(36,516
)
Allowance for borrowed funds used during construction
 
1,864

 
147

 
246

 
—

 
—

 
2,257

Income before income taxes
 
76,093

 
13,113

 
13,405

 
—

 
(19,935
)
 
82,676

Income taxes
 
10,853

 
3,011

 
3,114

 
—

 
—

 
16,978

Net income
 
65,240

 
10,102

 
10,291

 
—

 
(19,935
)
 
65,698

Preferred stock dividends of subsidiaries
 
—

 
267

 
191

 
—

 
—

 
458

Net income attributable to Hawaiian Electric
 
65,240

 
9,835

 
10,100

 
—

 
(19,935
)
 
65,240

Preferred stock dividends of Hawaiian Electric
 
540

 
—

 
—

 
—

 
—

 
540

Net income for common stock
 
$
64,700

 
9,835

 
10,100

 
—

 
(19,935
)
 
$
64,700



Hawaiian Electric Company, Inc. and Subsidiaries
Condensed Consolidating Statement of Comprehensive Income
Six months ended June 30, 2019

(in thousands)
 
Hawaiian Electric
 
Hawaii Electric Light
 
Maui Electric
 
Other
subsidiaries
 
Consolidating
adjustments
 
Hawaiian Electric
Consolidated
Net income for common stock
 
$
64,700

 
9,835

 
10,100

 
—

 
(19,935
)
 
$
64,700

Other comprehensive income (loss), net of taxes:
 
 

 
 

 
 

 
 

 
 

 
 

Retirement benefit plans:
 
 

 
 

 
 

 
 

 
 

 
 

Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits
 
4,643

 
704

 
578

 
—

 
(1,282
)
 
4,643

Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes
 
(4,596
)
 
(702
)
 
(578
)
 
—

 
1,280

 
(4,596
)
Other comprehensive income, net of taxes
 
47

 
2

 
—

 
—

 
(2
)
 
47

Comprehensive income attributable to common shareholder
 
$
64,747

 
9,837

 
10,100

 
—

 
(19,937
)
 
$
64,747


Hawaiian Electric Company, Inc. and Subsidiaries
Condensed Consolidating Statement of Income
Six months ended June 30, 2018

(in thousands)
 
Hawaiian Electric
 
Hawaii Electric Light
 
Maui Electric
 
Other subsidiaries
 
Consolidating adjustments
 
Hawaiian Electric
Consolidated
Revenues
 
$
832,879

 
177,481

 
168,294

 
—

 
(101
)
 
$
1,178,553

Expenses
 
 
 
 
 
 
 
 
 
 
 
 
Fuel oil
 
234,505

 
37,919

 
66,261

 
—

 
—

 
338,685

Purchased power
 
229,182

 
48,498

 
22,968

 
—

 
—

 
300,648

Other operation and maintenance
 
149,785

 
35,113

 
35,354

 
—

 
—

 
220,252

Depreciation
 
68,830

 
20,093

 
11,904

 
—

 
—

 
100,827

Taxes, other than income taxes
 
79,118

 
16,620

 
15,890

 
—

 
—

 
111,628

   Total expenses
 
761,420

 
158,243

 
152,377

 
—

 
—

 
1,072,040

Operating income
 
71,459

 
19,238

 
15,917

 
—

 
(101
)
 
106,513

Allowance for equity funds used during construction
 
5,475

 
235

 
567

 
—

 
—

 
6,277

Equity in earnings of subsidiaries
 
18,405

 
—

 
—

 
—

 
(18,405
)
 
—

Retirement defined benefits expense—other than service costs
 
(1,616
)
 
(208
)
 
(428
)
 
—

 
—

 
(2,252
)
Interest expense and other charges, net
 
(25,425
)
 
(5,829
)
 
(4,701
)
 
—

 
101

 
(35,854
)
Allowance for borrowed funds used during construction
 
2,388

 
141

 
280

 
—

 
—

 
2,809

Income before income taxes
 
70,686

 
13,577

 
11,635

 
—

 
(18,405
)
 
77,493

Income taxes
 
11,502

 
3,446

 
2,903

 
—

 
—

 
17,851

Net income
 
59,184

 
10,131

 
8,732

 
—

 
(18,405
)
 
59,642

Preferred stock dividends of subsidiaries
 
—

 
267

 
191

 
—

 
—

 
458

Net income attributable to Hawaiian Electric
 
59,184

 
9,864

 
8,541

 
—

 
(18,405
)
 
59,184

Preferred stock dividends of Hawaiian Electric
 
540

 
—

 
—

 
—

 
—

 
540

Net income for common stock
 
$
58,644

 
9,864

 
8,541

 
—

 
(18,405
)
 
$
58,644



Hawaiian Electric Company, Inc. and Subsidiaries
Condensed Consolidating Statement of Comprehensive Income
Six months ended June 30, 2018

(in thousands)
 
Hawaiian Electric
 
Hawaii Electric Light
 
Maui Electric
 
Other
subsidiaries 
 
Consolidating
adjustments
 
Hawaiian Electric
Consolidated
Net income for common stock
 
$
58,644

 
9,864

 
8,541

 
—

 
(18,405
)
 
$
58,644

Other comprehensive income (loss), net of taxes:
 
 

 
 

 
 

 
 

 
 

 
 

Retirement benefit plans:
 
 

 
 

 
 

 
 

 
 

 
 

Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits
 
9,506

 
1,409

 
1,211

 
—

 
(2,620
)
 
9,506

Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes
 
(9,449
)
 
(1,408
)
 
(1,211
)
 
—

 
2,619

 
(9,449
)
Other comprehensive income, net of taxes
 
57

 
1

 
—

 
—

 
(1
)
 
57

Comprehensive income attributable to common shareholder
 
$
58,701

 
9,865

 
8,541

 
—

 
(18,406
)
 
$
58,701


Hawaiian Electric Company, Inc. and Subsidiaries
Condensed Consolidating Balance Sheet
June 30, 2019
(in thousands)
 
Hawaiian Electric
 
Hawaii Electric Light
 
Maui Electric
 
Other
subsidiaries
 
Consoli-
dating
adjustments
 
Hawaiian Electric
Consolidated
Assets
 
 

 
 

 
 

 
 

 
 

 
 

Property, plant and equipment
 
 
 
 
 
 
 
 
 
 
 
 
Utility property, plant and equipment
 
 

 
 

 
 

 
 

 
 

 
 

Land
 
$
42,183

 
5,606

 
3,612

 
—

 
—

 
$
51,401

Plant and equipment
 
4,558,178

 
1,268,694

 
1,112,171

 
—

 
—

 
6,939,043

Less accumulated depreciation
 
(1,573,545
)
 
(562,286
)
 
(514,379
)
 
—

 
—

 
(2,650,210
)
Construction in progress
 
222,328

 
17,791

 
35,193

 
—

 
—

 
275,312

Utility property, plant and equipment, net
 
3,249,144

 
729,805

 
636,597

 
—

 
—

 
4,615,546

Nonutility property, plant and equipment, less accumulated depreciation
 
5,312

 
115

 
1,532

 
—

 
—

 
6,959

Total property, plant and equipment, net
 
3,254,456

 
729,920

 
638,129

 
—

 
—

 
4,622,505

Investment in wholly owned subsidiaries, at equity
 
584,149

 
—

 
—

 
—

 
(584,149
)
 
—

Current assets
 
 

 
 

 
 

 
 

 
 

 
 

Cash and cash equivalents
 
17,121

 
3,352

 
2,787

 
101

 
—

 
23,361

Advances to affiliates
 
25,300

 
5,000

 
—

 
—

 
(30,300
)
 
—

Customer accounts receivable, net
 
109,401

 
26,864

 
25,824

 
—

 
—

 
162,089

Accrued unbilled revenues, net
 
86,291

 
15,429

 
17,428

 
—

 
—

 
119,148

Other accounts receivable, net
 
17,447

 
8,526

 
2,086

 
—

 
(19,570
)
 
8,489

Fuel oil stock, at average cost
 
100,903

 
11,376

 
9,362

 
—

 
—

 
121,641

Materials and supplies, at average cost
 
33,874

 
9,611

 
17,609

 
—

 
—

 
61,094

Prepayments and other
 
23,804

 
5,202

 
2,980

 
—

 
—

 
31,986

Regulatory assets
 
46,673

 
2,122

 
6,830

 
—

 
—

 
55,625

Total current assets
 
460,814

 
87,482

 
84,906

 
101

 
(49,870
)
 
583,433

Other long-term assets
 
 

 
 

 
 

 
 

 
 

 
 

Operating lease right-of-use assets
 
205,148

 
1,582

 
402

 
—

 
—

 
207,132

Regulatory assets
 
513,738

 
115,178

 
103,224

 
—

 
—

 
732,140

Other
 
74,994

 
16,677

 
16,965

 
—

 
—

 
108,636

Total other long-term assets
 
793,880

 
133,437

 
120,591

 
—

 
—

 
1,047,908

Total assets
 
$
5,093,299

 
950,839

 
843,626

 
101

 
(634,019
)
 
$
6,253,846

Capitalization and liabilities
 
 

 
 

 
 

 
 

 
 

 
 

Capitalization
 
 

 
 

 
 

 
 

 
 

 
 

Common stock equity
 
$
1,971,762

 
300,619

 
283,429

 
101

 
(584,149
)
 
$
1,971,762

Cumulative preferred stock—not subject to mandatory redemption
 
22,293

 
7,000

 
5,000

 
—

 
—

 
34,293

Long-term debt, net
 
937,068

 
217,845

 
181,065

 
—

 
—

 
1,335,978

Total capitalization
 
2,931,123

 
525,464

 
469,494

 
101

 
(584,149
)
 
3,342,033

Current liabilities
 
 

 
 

 
 

 
 

 
 

 
 

Current portion of operating lease liabilities
 
61,941

 
92

 
30

 
—

 
—

 
62,063

Current portion of long-term debt
 
61,946

 
—

 
19,993

 
—

 
—

 
81,939

Short-term borrowings from non-affiliates
 
161,901

 
—

 
—

 
—

 
—

 
161,901

Short-term borrowings from affiliate
 
5,000

 
—

 
25,300

 
—

 
(30,300
)
 
—

Accounts payable
 
121,032

 
15,059

 
18,414

 
—

 
—

 
154,505

Interest and preferred dividends payable
 
16,287

 
4,225

 
2,914

 
—

 
(81
)
 
23,345

Taxes accrued
 
127,413

 
28,748

 
27,305

 
—

 
—

 
183,466

Regulatory liabilities
 
5,687

 
5,781

 
3,485

 
—

 
—

 
14,953

Other
 
53,450

 
14,842

 
13,249

 
—

 
(19,489
)
 
62,052

Total current liabilities
 
614,657

 
68,747

 
110,690

 
—

 
(49,870
)
 
744,224

Deferred credits and other liabilities
 
 

 
 

 
 

 
 

 
 

 
 

Operating lease liabilities
 
142,905

 
1,490

 
374

 
—

 
—

 
144,769

Deferred income taxes
 
271,441

 
53,564

 
57,559

 
—

 
—

 
382,564

Regulatory liabilities
 
660,351

 
178,018

 
99,224

 
—

 
—

 
937,593

Unamortized tax credits
 
60,375

 
16,514

 
14,725

 
—

 
—

 
91,614

Defined benefit pension and other postretirement benefit plans liability
 
362,174

 
71,830

 
70,243

 
—

 
—

 
504,247

Other
 
50,273

 
35,212

 
21,317

 
—

 
—

 
106,802

Total deferred credits and other liabilities
 
1,547,519

 
356,628

 
263,442

 
—

 
—

 
2,167,589

Total capitalization and liabilities
 
$
5,093,299

 
950,839

 
843,626

 
101

 
(634,019
)
 
$
6,253,846


Hawaiian Electric Company, Inc. and Subsidiaries
Condensed Consolidating Balance Sheet
December 31, 2018
(in thousands)
 
Hawaiian Electric
 
Hawaii Electric Light
 
Maui Electric
 
Other
subsidiaries
 
Consoli-
dating
adjustments
 
Hawaiian Electric
Consolidated
Assets
 
 

 
 

 
 

 
 

 
 

 
 

Property, plant and equipment
 
 
 
 
 
 
 
 
 
 
 
 
Utility property, plant and equipment
 
 

 
 

 
 

 
 

 
 

 
 

Land
 
$
40,449

 
5,606

 
3,612

 
—

 
—

 
$
49,667

Plant and equipment
 
4,456,090

 
1,259,553

 
1,094,028

 
—

 
—

 
6,809,671

Less accumulated depreciation
 
(1,523,861
)
 
(547,848
)
 
(505,633
)
 
—

 
—

 
(2,577,342
)
Construction in progress
 
193,677

 
8,781

 
30,687

 
—

 
—

 
233,145

Utility property, plant and equipment, net
 
3,166,355

 
726,092

 
622,694

 
—

 
—

 
4,515,141

Nonutility property, plant and equipment, less accumulated depreciation
 
5,314

 
115

 
1,532

 
—

 
—

 
6,961

Total property, plant and equipment, net
 
3,171,669

 
726,207

 
624,226

 
—

 
—

 
4,522,102

Investment in wholly owned subsidiaries, at equity
 
576,838

 
—

 
—

 
—

 
(576,838
)
 
—

Current assets
 
 

 
 

 
 

 
 

 
 

 
 

Cash and cash equivalents
 
16,732

 
15,623

 
3,421

 
101

 
—

 
35,877

Customer accounts receivable, net
 
125,960

 
26,483

 
25,453

 
—

 
—

 
177,896

Accrued unbilled revenues, net
 
88,060

 
17,051

 
16,627

 
—

 
—

 
121,738

Other accounts receivable, net
 
21,962

 
3,131

 
3,033

 
—

 
(21,911
)
 
6,215

Fuel oil stock, at average cost
 
54,262

 
11,027

 
14,646

 
—

 
—

 
79,935

Materials and supplies, at average cost
 
30,291

 
7,155

 
17,758

 
—

 
—

 
55,204

Prepayments and other
 
23,214

 
5,212

 
3,692

 
—

 
—

 
32,118

Regulatory assets
 
60,093

 
3,177

 
7,746

 
—

 
—

 
71,016

Total current assets
 
420,574

 
88,859

 
92,376

 
101

 
(21,911
)
 
579,999

Other long-term assets
 
 

 
 

 
 

 
 

 
 

 
 

Regulatory assets
 
537,708

 
120,658

 
104,044

 
—

 
—

 
762,410

Other
 
69,749

 
15,944

 
17,299

 
—

 
—

 
102,992

Total other long-term assets
 
607,457

 
136,602

 
121,343

 
—

 
—

 
865,402

Total assets
 
$
4,776,538

 
951,668

 
837,945

 
101

 
(598,749
)
 
$
5,967,503

Capitalization and liabilities
 
 

 
 

 
 

 
 

 
 

 
 

Capitalization
 
 

 
 

 
 

 
 

 
 

 
 

Common stock equity
 
$
1,957,641

 
295,874

 
280,863

 
101

 
(576,838
)
 
$
1,957,641

Cumulative preferred stock—not subject to mandatory redemption
 
22,293

 
7,000

 
5,000

 
—

 
—

 
34,293

Long-term debt, net
 
1,000,137

 
217,749

 
200,916

 
—

 
—

 
1,418,802

Total capitalization
 
2,980,071

 
520,623

 
486,779

 
101

 
(576,838
)
 
3,410,736

Current liabilities
 
 

 
 

 
 

 
 

 
 

 
 
Short-term borrowings-non-affiliate
 
25,000

 
—

 
—

 
—

 
—

 
25,000

Accounts payable
 
126,384

 
20,045

 
25,362

 
—

 
—

 
171,791

Interest and preferred dividends payable
 
16,203

 
4,203

 
2,841

 
—

 
(32
)
 
23,215

Taxes accrued
 
164,747

 
34,128

 
34,458

 
—

 
—

 
233,333

Regulatory liabilities
 
7,699

 
4,872

 
5,406

 
—

 
—

 
17,977

Other
 
46,391

 
15,077

 
20,414

 
—

 
(21,879
)
 
60,003

Total current liabilities
 
386,424

 
78,325

 
88,481

 
—

 
(21,911
)
 
531,319

Deferred credits and other liabilities
 
 

 
 

 
 

 
 

 
 

 
 
Deferred income taxes
 
271,438

 
54,936

 
56,823

 
—

 
—

 
383,197

Regulatory liabilities
 
657,210

 
176,101

 
98,948

 
—

 
—

 
932,259

Unamortized tax credits
 
60,271

 
16,217

 
15,034

 
—

 
—

 
91,522

Defined benefit pension and other postretirement benefit plans liability
 
359,174

 
73,147

 
71,338

 
—

 
—

 
503,659

Other
 
61,950

 
32,319

 
20,542

 
—

 
—

 
114,811

Total deferred credits and other liabilities
 
1,410,043

 
352,720

 
262,685

 
—

 
—

 
2,025,448

Total capitalization and liabilities
 
$
4,776,538

 
951,668

 
837,945

 
101

 
(598,749
)
 
$
5,967,503


Hawaiian Electric Company, Inc. and Subsidiaries
Condensed Consolidating Statement of Changes in Common Stock Equity
Six months ended June 30, 2019
(in thousands)
 
Hawaiian Electric
 
Hawaii Electric Light
 
Maui Electric
 
Other
subsidiaries
 
Consolidating
adjustments
 
Hawaiian Electric
Consolidated
Balance, December 31, 2018
 
$
1,957,641

 
295,874

 
280,863

 
101

 
(576,838
)
 
$
1,957,641

Net income for common stock
 
32,126

 
5,169

 
6,680

 
—

 
(11,849
)
 
32,126

Other comprehensive income, net of taxes
 
24

 
1

 
—

 
—

 
(1
)
 
24

Common stock dividends
 
(25,313
)
 
(2,545
)
 
(3,767
)
 
—

 
6,312

 
(25,313
)
Common stock issuance expenses
 
—

 
(2
)
 
—

 
—

 
2

 
—

Balance, March 31, 2019
 
1,964,478

 
298,497

 
283,776

 
101

 
(582,374
)
 
1,964,478

Net income for common stock
 
32,574

 
4,666

 
3,420

 
—

 
(8,086
)
 
32,574

Other comprehensive income, net of taxes
 
23

 
1

 
—

 
—

 
(1
)
 
23

Common stock dividends
 
(25,313
)
 
(2,545
)
 
(3,767
)
 
—

 
6,312

 
(25,313
)
Balance, June 30, 2019
 
$
1,971,762

 
300,619

 
283,429

 
101

 
(584,149
)
 
$
1,971,762


 
Hawaiian Electric Company, Inc. and Subsidiaries
Condensed Consolidating Statement of Changes in Common Stock Equity
Six months ended June 30, 2018  
(in thousands)
 
Hawaiian Electric
 
Hawaii Electric Light
 
Maui Electric
 
Other
subsidiaries
 
Consolidating
adjustments
 
Hawaiian Electric
Consolidated
Balance, December 31, 2017
 
$
1,845,283

 
286,647

 
270,265

 
101

 
(557,013
)
 
$
1,845,283

Net income for common stock
 
27,475

 
6,101

 
3,224

 
—

 
(9,325
)
 
27,475

Other comprehensive income, net of taxes
 
31

 
—

 
—

 
—

 
—

 
31

Common stock dividends
 
(25,826
)
 
(3,821
)
 
(3,006
)
 
—

 
6,827

 
(25,826
)
Common stock issuance expenses
 
(8
)
 
—

 
—

 
—

 
—

 
(8
)
Balance, March 31, 2018
 
1,846,955

 
288,927

 
270,483

 
101

 
(559,511
)
 
1,846,955

Net income for common stock
 
31,169

 
3,763

 
5,317

 
—

 
(9,080
)
 
31,169

Other comprehensive income, net of taxes
 
26

 
1

 
—

 
—

 
(1
)
 
26

Common stock dividends
 
(25,826
)
 
(3,823
)
 
(3,004
)
 
—

 
6,827

 
(25,826
)
Common stock issuance expenses
 
—

 
(3
)
 
2

 
—

 
1

 
—

Balance, June 30, 2018
 
$
1,852,324

 
288,865

 
272,798

 
101

 
(561,764
)
 
$
1,852,324


Hawaiian Electric Company, Inc. and Subsidiaries
Condensed Consolidating Statement of Cash Flows
Six months ended June 30, 2019
(in thousands)
 
Hawaiian Electric
 
Hawaii Electric Light
 
Maui Electric
 
Other
subsidiaries
 
Consolidating
adjustments
 
Hawaiian Electric
Consolidated
Cash flows from operating activities
 
 

 
 

 
 

 
 

 
 

 
 

Net income
 
$
65,240

 
10,102

 
10,291

 
—

 
(19,935
)
 
$
65,698

Adjustments to reconcile net income to net cash provided by operating activities:
 
 

 
 

 
 

 
 

 
 

 
 
Equity in earnings of subsidiaries
 
(19,972
)
 
—

 
—

 
—

 
19,935

 
(37
)
Common stock dividends received from subsidiaries
 
12,661

 
—

 
—

 
—

 
(12,624
)
 
37

Depreciation of property, plant and equipment
 
71,735

 
20,906

 
15,219

 
—

 
—

 
107,860

Other amortization
 
11,444

 
2,142

 
75

 
—

 
—

 
13,661

Deferred income taxes
 
(5,354
)
 
(1,554
)
 
297

 
—

 
—

 
(6,611
)
Allowance for equity funds used during construction
 
(5,061
)
 
(350
)
 
(674
)
 
—

 
—

 
(6,085
)
Other
 
(2,494
)
 
(292
)
 
(767
)
 
—

 
—

 
(3,553
)
Changes in assets and liabilities:
 
 

 
 

 
 

 
 

 
 

 
 

Decrease (increase) in accounts receivable
 
19,969

 
(6,446
)
 
(1,188
)
 
—

 
(2,341
)
 
9,994

Decrease (increase) in accrued unbilled revenues
 
1,769

 
1,622

 
(801
)
 
—

 
—

 
2,590

Decrease (increase) in fuel oil stock
 
(46,641
)
 
(349
)
 
5,284

 
—

 
—

 
(41,706
)
Decrease (increase) in materials and supplies
 
(3,583
)
 
(2,456
)
 
149

 
—

 
—

 
(5,890
)
Decrease (increase) in regulatory assets
 
24,318

 
2,288

 
(1,214
)
 
—

 
—

 
25,392

Increase (decrease) in accounts payable
 
5,804

 
(3,454
)
 
(2,395
)
 
—

 
—

 
(45
)
Change in prepaid and accrued income taxes, tax credits and revenue taxes
 
(34,328
)
 
(5,111
)
 
(6,346
)
 
—

 
—

 
(45,785
)
Decrease in defined benefit pension and other postretirement benefit plans liability
 
(1,205
)
 
(377
)
 
(317
)
 
—

 
—

 
(1,899
)
Change in other assets and liabilities
 
(9,875
)
 
(265
)
 
(5,006
)
 
—

 
2,341

 
(12,805
)
Net cash provided by operating activities
 
84,427

 
16,406

 
12,607

 
—

 
(12,624
)
 
100,816

Cash flows from investing activities
 
 

 
 

 
 

 
 

 
 

 
 

Capital expenditures
 
(150,945
)
 
(18,083
)
 
(30,868
)
 
—

 
—

 
(199,896
)
Advances to affiliates
 
(25,300
)
 
(5,000
)
 
—

 
—

 
30,300

 
—

Other
 
2,821

 
(280
)
 
(31
)
 
—

 
—

 
2,510

Net cash used in investing activities
 
(173,424
)
 
(23,363
)
 
(30,899
)
 
—

 
30,300

 
(197,386
)
Cash flows from financing activities
 
 

 
 

 
 

 
 

 
 

 
 

Common stock dividends
 
(50,626
)
 
(5,090
)
 
(7,534
)
 
—

 
12,624

 
(50,626
)
Preferred stock dividends of Hawaiian Electric and subsidiaries
 
(540
)
 
(267
)
 
(191
)
 
—

 
—

 
(998
)
Proceeds from issuance of short-term debt
 
25,000

 
—

 
—

 
—

 
—

 
25,000

Proceeds from issuance of long-term debt
 
30,000

 
10,000

 
10,000

 
—

 
—

 
50,000

Repayment of long-term debt
 
(31,546
)
 
(10,000
)
 
(10,000
)
 
—

 
—

 
(51,546
)
Increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less
 
116,901

 
—

 
25,300

 
—

 
(30,300
)
 
111,901

Other
 
197

 
43

 
83

 
—

 
—

 
323

Net cash provided by (used in) financing activities
 
89,386

 
(5,314
)
 
17,658

 
—

 
(17,676
)
 
84,054

Net increase (decrease) in cash and cash equivalents
 
389

 
(12,271
)
 
(634
)
 
—

 
—

 
(12,516
)
Cash and cash equivalents, beginning of period
 
16,732

 
15,623

 
3,421

 
101

 
—

 
35,877

Cash and cash equivalents, end of period
 
$
17,121

 
3,352

 
2,787

 
101

 
—

 
$
23,361


Hawaiian Electric Company, Inc. and Subsidiaries
Condensed Consolidating Statement of Cash Flows
Six months ended June 30, 2018
(in thousands)
 
Hawaiian Electric
 
Hawaii Electric Light
 
Maui Electric
 
Other
subsidiaries
 
Consolidating
adjustments
 
Hawaiian Electric
Consolidated
Cash flows from operating activities
 
 

 
 

 
 

 
 

 
 

 
 

Net income
 
$
59,184

 
10,131

 
8,732

 
—

 
(18,405
)
 
$
59,642

Adjustments to reconcile net income to net cash provided by operating activities:
 
 

 
 

 
 

 
 

 
 

 
 

Equity in earnings of subsidiaries
 
(18,455
)
 
—

 
—

 
—

 
18,405

 
(50
)
Common stock dividends received from subsidiaries
 
13,679

 
—

 
—

 
—

 
(13,654
)
 
25

Depreciation of property, plant and equipment
 
68,830

 
20,093

 
11,904

 
—

 
—

 
100,827

Other amortization
 
9,200

 
2,976

 
845

 
—

 
—

 
13,021

Deferred income taxes
 
(6,708
)
 
(2,429
)
 
794

 
—

 
—

 
(8,343
)
Allowance for equity funds used during construction
 
(5,475
)
 
(235
)
 
(567
)
 
—

 
—

 
(6,277
)
Other
 
1,469

 
(322
)
 
(169
)
 
—

 
—

 
978

Changes in assets and liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Increase in accounts receivable
 
(25,673
)
 
(2,387
)
 
(5,763
)
 
—

 
(245
)
 
(34,068
)
Decrease (increase) in accrued unbilled revenues
 
(3,063
)
 
697

 
(1,419
)
 
—

 
—

 
(3,785
)
Increase in fuel oil stock
 
(9,513
)
 
(3,934
)
 
(6,696
)
 
—

 
—

 
(20,143
)
Increase in materials and supplies
 
(2,752
)
 
(559
)
 
(233
)
 
—

 
—

 
(3,544
)
Increase in regulatory assets
 
(14,728
)
 
(1,974
)
 
(2,898
)
 
—

 
—

 
(19,600
)
Increase in accounts payable
 
13,093

 
3,096

 
2,095

 
—

 
—

 
18,284

Change in prepaid and accrued income taxes, tax credits and revenue taxes
 
(15,343
)
 
(9,952
)
 
(5,165
)
 
—

 
(601
)
 
(31,061
)
Decrease in defined benefit pension and other postretirement benefit plans liability
 
(1,117
)
 
(380
)
 
(464
)
 
—

 
—

 
(1,961
)
Change in other assets and liabilities
 
1,116

 
3,173

 
1,357

 
—

 
245

 
5,891

Net cash provided by operating activities
 
63,744

 
17,994

 
2,353

 
—

 
(14,255
)
 
69,836

Cash flows from investing activities
 
 

 
 

 
 

 
 

 
 

 
 

Capital expenditures
 
(146,920
)
 
(24,424
)
 
(28,303
)
 
—

 
—

 
(199,647
)
Advances (to) from affiliates
 
(5,600
)
 
(1,000
)
 
12,000

 
—

 
(5,400
)
 
—

Other
 
2,241

 
884

 
575

 
—

 
601

 
4,301

Net cash used in investing activities
 
(150,279
)
 
(24,540
)
 
(15,728
)
 
—

 
(4,799
)
 
(195,346
)
Cash flows from financing activities
 
 

 
 

 
 

 
 

 
 

 
 
Common stock dividends
 
(51,652
)
 
(7,644
)
 
(6,010
)
 
—

 
13,654

 
(51,652
)
Preferred stock dividends of Hawaiian Electric and subsidiaries
 
(540
)
 
(267
)
 
(191
)
 
—

 
—

 
(998
)
Proceeds from issuance of long-term debt
 
75,000


15,000


10,000


—


—


100,000

Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less
 
75,881

 
—

 
5,600

 
—

 
5,400

 
86,881

Other
 
(291
)
 
(52
)
 
(35
)
 
—

 
—

 
(378
)
Net cash provided by financing activities
 
98,398

 
7,037

 
9,364

 
—

 
19,054

 
133,853

Net increase (decrease) in cash and cash equivalents
 
11,863

 
491

 
(4,011
)
 
—

 
—

 
8,343

Cash and cash equivalents, beginning of period
 
2,059

 
4,025

 
6,332

 
101

 
—

 
12,517

Cash and cash equivalents, end of period
 
$
13,922

 
4,516

 
2,321

 
101

 
—

 
$
20,860