Electric utility segment (Tables)

3 Months Ended

Mar. 31, 2020

Regulatory Projects and Legal Obligations [Line Items]

Schedule of condensed consolidating statements of income (loss)

Statements of Income and Comprehensive Income Data

	Three months ended March 31
(in thousands)	2020		2019
Interest and dividend income
Interest and fees on loans	$	55,545	$	57,860
Interest and dividends on investment securities	9,430		10,628
Total interest and dividend income	64,975		68,488
Interest expense
Interest on deposit liabilities	3,587		4,252
Interest on other borrowings	313		528
Total interest expense	3,900		4,780
Net interest income	61,075		63,708
Provision for credit losses	10,401		6,870
Net interest income after provision for credit losses	50,674		56,838
Noninterest income
Fees from other financial services	4,571		4,562
Fee income on deposit liabilities	5,113		5,078
Fee income on other financial products	1,872		1,593
Bank-owned life insurance	794		2,259
Mortgage banking income	2,000		614
Other income, net	413		458
Total noninterest income	14,763		14,564
Noninterest expense
Compensation and employee benefits	25,777		25,512
Occupancy	5,267		4,670
Data processing	3,837		3,738
Services	2,809		2,426
Equipment	2,339		2,064
Office supplies, printing and postage	1,341		1,360
Marketing	802		990
FDIC insurance	102		626
Other expense	4,194		3,854
Total noninterest expense	46,468		45,240
Income before income taxes	18,969		26,162
Income taxes	3,208		5,323
Net income	15,761		20,839
Other comprehensive income, net of taxes	19,847		6,252
Comprehensive income	$	35,608	$	27,091

Reconciliation to amounts per HEI Condensed Consolidated Statements of Income*:

	Three months ended March 31
(in thousands)	2020		2019
Interest and dividend income	$	64,975	$	68,488
Noninterest income	14,763		14,564
*Revenues-Bank	79,738		83,052
Total interest expense	3,900		4,780
Provision for credit losses	10,401		6,870
Noninterest expense	46,468		45,240
Less: Retirement defined benefits gain (expense)—other than service costs	(434)		40
*Expenses-Bank	60,335		56,930
*Operating income-Bank	19,403		26,122
Add back: Retirement defined benefits (gain) expense—other than service costs	434		(40)
Income before income taxes	$	18,969	$	26,162

Schedule of condensed consolidating balance sheet

Balance Sheets Data

(in thousands)	March 31, 2020				December 31, 2019
Assets
Cash and due from banks			$	186,897			$	129,770
Interest-bearing deposits			2,635				48,628
Investment securities
Available-for-sale, at fair value			1,340,241				1,232,826
Held-to-maturity, at amortized cost (fair value of $142,570 and $143,467, respectively)			134,656				139,451
Stock in Federal Home Loan Bank, at cost			9,760				8,434
Loans held for investment			5,180,932				5,121,176
Allowance for credit losses			(77,084)				(53,355)
Net loans			5,103,848				5,067,821
Loans held for sale, at lower of cost or fair value			18,155				12,286
Other			507,363				511,611
Goodwill			82,190				82,190
Total assets			$	7,385,745			$	7,233,017
Liabilities and shareholder’s equity
Deposit liabilities—noninterest-bearing			$	1,969,694			$	1,909,682
Deposit liabilities—interest-bearing			4,414,089				4,362,220
Other borrowings			157,605				115,110
Other			152,365				146,954
Total liabilities			6,693,753				6,533,966
Commitments and contingencies
Common stock			1				1
Additional paid-in capital			350,158				349,453
Retained earnings			330,648				358,259
Accumulated other comprehensive loss, net of tax benefits
Net unrealized gains on securities	$	21,929			$	2,481
Retirement benefit plans	(10,744)		11,185		(11,143)		(8,662)
Total shareholder’s equity			691,992				699,051
Total liabilities and shareholder’s equity			$	7,385,745			$	7,233,017
Other assets
Bank-owned life insurance			$	158,269			$	157,465
Premises and equipment, net			203,622				204,449
Accrued interest receivable			19,490				19,365
Mortgage-servicing rights			9,120				9,101
Low-income housing investments			63,967				66,302
Real estate acquired in settlement of loans, net			139				—
Other			52,756				54,929
			$	507,363			$	511,611
Other liabilities
Accrued expenses			$	38,928			$	45,822
Federal and state income taxes payable			17,138				14,996
Cashier’s checks			32,372				23,647
Advance payments by borrowers			5,919				10,486
Other			58,008				52,003
			$	152,365			$	146,954

Hawaiian Electric Company, Inc. and Subsidiaries

Regulatory Projects and Legal Obligations [Line Items]

Schedule of purchases from all IPPs

Purchases from all IPPs were as follows:

	Three months ended March 31
(in millions)	2020		2019
Kalaeloa	$	38	$	40
AES Hawaii	31		32
HPOWER	17		18
Hamakua Energy	13		16
Wind IPPs	28		20
Solar IPPs	11		7
Other IPPs 1	2		1
Total IPPs	$	140	$	134

1Includes hydro power and other PPAs

Schedule of net annual incremental amounts proposed to be collected (refunded)

The net annual incremental amounts proposed to be collected (refunded) from June 1, 2020 through May 31, 2021 are as follows:

(in millions)	Hawaiian Electric		Hawaii Electric Light		Maui Electric		Total
2020 Annual incremental RAM adjusted revenues, net of changes in Tax Act adjustment	$	20.6	$	3.2	$	5.7	$	29.5
Annual change in accrued RBA balance as of December 31, 2019 (and associated revenue taxes) which incorporates MPIR recovery	(46.5)		(9.9)		(11.0)		(67.4)
Incremental Performance Incentive Mechanisms (net)	2.2		(0.1)		(0.1)		2.0
Net annual incremental amount to be collected (refunded) under the tariffs	$	(23.7)	$	(6.8)	$	(5.4)	$	(35.9)

Schedule of condensed consolidating statements of income (loss)

Condensed Consolidating Statement of Income

Three months ended March 31, 2020

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Revenues	$	421,166	89,293	87,198	—	(215)	$	597,442
Expenses
Fuel oil	120,535		22,432	30,254	—	—	173,221
Purchased power	107,951		19,521	12,344	—	—	139,816
Other operation and maintenance	85,637		19,104	22,806	—	—	127,547
Depreciation	38,011		9,760	8,079	—	—	55,850
Taxes, other than income taxes	40,501		8,342	8,207	—	—	57,050
Total expenses	392,635		79,159	81,690	—	—	553,484
Operating income	28,531		10,134	5,508	—	(215)	43,958
Allowance for equity funds used during construction	1,743		119	153	—	—	2,015
Equity in earnings of subsidiaries	8,804		—	—	—	(8,804)	—
Retirement defined benefits expense—other than service costs	(546)		194	(29)	—	—	(381)
Interest expense and other charges, net	(12,002)		(2,484)	(2,323)	—	215	(16,594)
Allowance for borrowed funds used during construction	602		36	50	—	—	688
Income before income taxes	27,132		7,999	3,359	—	(8,804)	29,686
Income taxes	2,957		1,798	527			5,282
Net income	24,175		6,201	2,832	—	(8,804)	24,404
Preferred stock dividends of subsidiaries	—		134	95	—		229
Net income attributable to Hawaiian Electric	24,175		6,067	2,737	—	(8,804)	24,175
Preferred stock dividends of Hawaiian Electric	270		—	—	—	—	270
Net income for common stock	$	23,905	6,067	2,737	—	(8,804)	$	23,905

Condensed Consolidating Statement of Income

Three months ended March 31, 2019

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Revenues	$	405,669	87,205	85,653	—	(32)	$	578,495
Expenses
Fuel oil	108,922		20,842	30,845	—	—	160,609
Purchased power	105,223		19,177	10,045	—	—	134,445
Other operation and maintenance	81,178		18,736	18,216	—	—	118,130
Depreciation	35,867		10,453	7,627	—	—	53,947
Taxes, other than income taxes	38,631		8,105	8,068	—	—	54,804
Total expenses	369,821		77,313	74,801	—	—	521,935
Operating income	35,848		9,892	10,852	—	(32)	56,560
Allowance for equity funds used during construction	2,447		132	331	—	—	2,910
Equity in earnings of subsidiaries	11,849		—	—	—	(11,849)	—
Retirement defined benefits expense—other than service costs	(567)		(106)	(30)	—	—	(703)
Interest expense and other charges, net	(12,800)		(2,901)	(2,317)	—	32	(17,986)
Allowance for borrowed funds used during construction	902		56	120	—	—	1,078
Income before income taxes	37,679		7,073	8,956	—	(11,849)	41,859
Income taxes	5,283		1,770	2,181	—	—	9,234
Net income	32,396		5,303	6,775	—	(11,849)	32,625
Preferred stock dividends of subsidiaries	—		134	95	—	—	229
Net income attributable to Hawaiian Electric	32,396		5,169	6,680	—	(11,849)	32,396
Preferred stock dividends of Hawaiian Electric	270		—	—	—	—	270
Net income for common stock	$	32,126	5,169	6,680	—	(11,849)	$	32,126

Schedule of condensed consolidating statement of comprehensive income

Condensed Consolidating Statement of Comprehensive Income

Three months ended March 31, 2020

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Net income for common stock	$	23,905	6,067	2,737	—	(8,804)	$	23,905
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	5,184		748	652	—	(1,400)	5,184
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(5,158)		(747)	(652)	—	1,399	(5,158)
Other comprehensive income, net of taxes	26		1	—	—	(1)	26
Comprehensive income attributable to common shareholder	$	23,931	6,068	2,737	—	(8,805)	$	23,931

Condensed Consolidating Statement of Comprehensive Income

Three months ended March 31, 2019

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Net income for common stock	$	32,126	5,169	6,680	—	(11,849)	$	32,126
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	2,322		352	289	—	(641)	2,322
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	24		1	—	—	(1)	24
Comprehensive income attributable to common shareholder	$	32,150	5,170	6,680	—	(11,850)	$	32,150

Schedule of condensed consolidating balance sheet

Condensed Consolidating Balance Sheet

March 31, 2020

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsi- diaries	Consoli- dating adjustments	Hawaiian Electric Consolidated
Assets
Property, plant and equipment
Utility property, plant and equipment
Land	$	42,389	5,606	3,612	—	—	$	51,607
Plant and equipment	4,821,180		1,317,355	1,167,120	—	—	7,305,655
Less accumulated depreciation	(1,614,651)		(581,038)	(530,414)	—	—	(2,726,103)
Construction in progress	164,467		12,530	22,532	—	—	199,529
Utility property, plant and equipment, net	3,413,385		754,453	662,850	—	—	4,830,688
Nonutility property, plant and equipment, less accumulated depreciation	5,309		115	1,532	—	—	6,956
Total property, plant and equipment, net	3,418,694		754,568	664,382	—	—	4,837,644
Investment in wholly owned subsidiaries, at equity	593,097		—	—	—	(593,097)	—
Current assets
Cash and cash equivalents	4,589		4,654	3,065	101	—	12,409
Restricted cash	30,902		—	—	—	—	30,902
Advances to affiliates	44,700		—	—	—	(44,700)	—
Customer accounts receivable, net	113,999		23,327	21,354	—	—	158,680
Accrued unbilled revenues, net	81,468		16,468	15,844	—	—	113,780
Other accounts receivable, net	17,593		2,596	2,327	—	(11,269)	11,247
Fuel oil stock, at average cost	65,688		8,684	15,155	—	—	89,527
Materials and supplies, at average cost	35,006		9,153	17,039	—	—	61,198
Prepayments and other	28,445		3,816	5,222	—	(1,576)	35,907
Regulatory assets	25,490		1,928	1,549	—	—	28,967
Total current assets	447,880		70,626	81,555	101	(57,545)	542,617
Other long-term assets
Operating lease right-of-use assets	175,205		1,514	378	—	—	177,097
Regulatory assets	466,795		105,956	96,926	—	—	669,677
Other	73,796		17,316	17,781	—	—	108,893
Total other long-term assets	715,796		124,786	115,085	—	—	955,667
Total assets	$	5,175,467	949,980	861,022	101	(650,642)	$	6,335,928
Capitalization and liabilities
Capitalization
Common stock equity	$	2,044,499	300,986	292,010	101	(593,097)	$	2,044,499
Cumulative preferred stock—not subject to mandatory redemption	22,293		7,000	5,000	—	—	34,293
Long-term debt, net	1,101,614		206,437	188,587	—	—	1,496,638
Total capitalization	3,168,406		514,423	485,597	101	(593,097)	3,575,430
Current liabilities
Current portion of operating lease liabilities	63,616		96	31	—	—	63,743
Current portion of long-term debt	—		13,997	—	—	—	13,997
Short-term borrowings from non-affiliates	99,956		—	—	—	—	99,956
Short-term borrowings from affiliate	—		2,500	42,200	—	(44,700)	—
Accounts payable	113,932		14,401	17,602	—	—	145,935
Interest and preferred dividends payable	20,095		3,806	4,129	—	(89)	27,941
Taxes accrued	109,383		26,846	24,338	—	(1,576)	158,991
Regulatory liabilities	19,762		12,813	10,136	—	—	42,711
Other	50,411		11,196	15,321	—	(11,180)	65,748
Total current liabilities	477,155		85,655	113,757	—	(57,545)	619,022
Deferred credits and other liabilities
Operating lease liabilities	117,183		1,418	352	—	—	118,953
Deferred income taxes	269,478		53,374	58,017	—	—	380,869
Regulatory liabilities	670,187		178,479	98,593	—	—	947,259
Unamortized tax credits	84,309		15,985	14,584	—	—	114,878
Defined benefit pension and other postretirement benefit plans liability	333,716		68,756	68,339	—	—	470,811
Other	55,033		31,890	21,783	—	—	108,706
Total deferred credits and other liabilities	1,529,906		349,902	261,668	—	—	2,141,476
Total capitalization and liabilities	$	5,175,467	949,980	861,022	101	(650,642)	$	6,335,928

Condensed Consolidating Balance Sheet

December 31, 2019

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsi-diaries	Consoli- dating adjustments	Hawaiian Electric Consolidated
Assets
Property, plant and equipment
Utility property, plant and equipment
Land	$	42,598	5,606	3,612	—	—	$	51,816
Plant and equipment	4,765,362		1,313,727	1,161,199	—	—	7,240,288
Less accumulated depreciation	(1,591,241)		(574,615)	(524,301)	—	—	(2,690,157)
Construction in progress	165,137		9,993	17,944	—	—	193,074
Utility property, plant and equipment, net	3,381,856		754,711	658,454	—	—	4,795,021
Nonutility property, plant and equipment, less accumulated depreciation	5,310		114	1,532	—	—	6,956
Total property, plant and equipment, net	3,387,166		754,825	659,986	—	—	4,801,977
Investment in wholly owned subsidiaries, at equity	591,969		—	—	—	(591,969)	—
Current assets
Cash and cash equivalents	2,239		6,885	1,797	101	—	11,022
Restricted cash	30,749		123	—	—	—	30,872
Advances to affiliates	27,700		8,000	—	—	(35,700)	—
Customer accounts receivable, net	105,454		24,520	22,816	—	—	152,790
Accrued unbilled revenues, net	83,148		17,071	17,008	—	—	117,227
Other accounts receivable, net	18,396		1,907	1,960	—	(10,695)	11,568
Fuel oil stock, at average cost	69,003		8,901	14,033	—	—	91,937
Materials and supplies, at average cost	34,876		8,313	17,513	—	—	60,702
Prepayments and other	88,334		3,725	24,921	—	—	116,980
Regulatory assets	27,689		1,641	1,380	—	—	30,710
Total current assets	487,588		81,086	101,428	101	(46,395)	623,808
Other long-term assets
Operating lease right-of-use assets	174,886		1,537	386	—	—	176,809
Regulatory assets	476,390		109,163	98,817	—	—	684,370
Other	69,010		15,493	17,215	—	—	101,718
Total other long-term assets	720,286		126,193	116,418	—	—	962,897
Total assets	$	5,187,009	962,104	877,832	101	(638,364)	$	6,388,682
Capitalization and liabilities
Capitalization
Common stock equity	$	2,047,352	298,998	292,870	101	(591,969)	$	2,047,352
Cumulative preferred stock—not subject to mandatory redemption	22,293		7,000	5,000	—	—	34,293
Long-term debt, net	1,006,737		206,416	188,561	—	—	1,401,714
Total capitalization	3,076,382		512,414	486,431	101	(591,969)	3,483,359
Current liabilities
Current portion of operating lease liabilities	63,582		94	31	—	—	63,707
Current portion of long-term debt	61,958		13,995	20,000	—	—	95,953
Short-term borrowings-non-affiliate	88,987		—	—	—	—	88,987
Short-term borrowings-affiliate	8,000		—	27,700	—	(35,700)	—
Accounts payable	139,056		25,629	23,085	—	—	187,770
Interest and preferred dividends payable	14,759		3,115	2,900	—	(46)	20,728
Taxes accrued	143,522		32,541	31,929	—	—	207,992
Regulatory liabilities	13,363		9,454	7,907	—	—	30,724
Other	51,295		11,362	15,297	—	(10,649)	67,305
Total current liabilities	584,522		96,190	128,849	—	(46,395)	763,166
Deferred credits and other liabilities
Operating lease liabilities	111,598		1,442	360	—	—	113,400
Deferred income taxes	265,864		53,534	57,752	—	—	377,150
Regulatory liabilities	664,894		178,474	98,218	—	—	941,586
Unamortized tax credits	86,852		16,196	14,820	—	—	117,868
Defined benefit pension and other postretirement benefit plans liability	339,471		69,928	69,364	—	—	478,763
Other	57,426		33,926	22,038	—	—	113,390
Total deferred credits and other liabilities	1,526,105		353,500	262,552	—	—	2,142,157
Total capitalization and liabilities	$	5,187,009	962,104	877,832	101	(638,364)	$	6,388,682

Schedule of condensed consolidating statement of changes in common stock equity

Condensed Consolidating Statement of Changes in Common Stock Equity

Three months ended March 31, 2020

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Balance, December 31, 2019	$	2,047,352	298,998	292,870	101	(591,969)	$	2,047,352
Net income for common stock	23,905		6,067	2,737	—	(8,804)	23,905
Other comprehensive income, net of taxes	26		1	—	—	(1)	26
Common stock dividends	(26,784)		(4,080)	(3,596)	—	7,676	(26,784)
Common stock issuance expenses	—		—	(1)	—	1	—
Balance, March 31, 2020	$	2,044,499	300,986	292,010	101	(593,097)	$	2,044,499

Condensed Consolidating Statement of Changes in Common Stock Equity

Three months ended March 31, 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

Schedule of condensed consolidating statement of cash flows

Condensed Consolidating Statement of Cash Flows

Three months ended March 31, 2020

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Net cash provided by operating activities	$	29,004	9,478	7,931	—	(7,272)	$	39,141
Cash flows from investing activities
Capital expenditures	(83,191)		(18,181)	(17,772)	—	—	(119,144)
Advances from (to) affiliates	(17,000)		8,000	—	—	9,000	—
Other	2,752		64	301	—	(404)	2,713
Net cash used in investing activities	(97,439)		(10,117)	(17,471)	—	8,596	(116,431)
Cash flows from financing activities
Common stock dividends	(26,784)		(4,080)	(3,596)	—	7,676	(26,784)
Preferred stock dividends of Hawaiian Electric and subsidiaries	(270)		(134)	(95)	—	—	(499)
Proceeds from issuance of short-term debt	50,000		—	—	—	—	50,000
Proceeds from issuance of long-term debt	95,000		—	—	—	—	95,000
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less	(46,987)		2,500	14,500	—	(9,000)	(38,987)
Other	(21)		(1)	(1)	—	—	(23)
Net cash provided by (used in) financing activities	70,938		(1,715)	10,808	—	(1,324)	78,707
Net increase (decrease) in cash and cash equivalents	2,503		(2,354)	1,268	—	—	1,417
Cash, cash equivalents and restricted cash, beginning of period	32,988		7,008	1,797	101	—	41,894
Cash, cash equivalents and restricted cash, end of period	35,491		4,654	3,065	101	—	43,311
Less: Restricted cash	(30,902)		—	—	—	—	(30,902)
Cash and cash equivalents, end of period	$	4,589	4,654	3,065	101	—	$	12,409

Condensed Consolidating Statement of Cash Flows

Three months ended March 31, 2019

(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Net cash provided by operating activities	$	58,145	8,745	8,837	—	(6,311)	$	69,416
Cash flows from investing activities
Capital expenditures	(78,220)		(8,371)	(16,300)	—	—	(102,891)
Advances to affiliates	(9,500)		(9,200)	—	—	18,700	—
Other	1,221		(293)	(134)	—	—	794
Net cash used in investing activities	(86,499)		(17,864)	(16,434)	—	18,700	(102,097)
Cash flows from financing activities
Common stock dividends	(25,313)		(2,544)	(3,767)	—	6,311	(25,313)
Preferred stock dividends of Hawaiian Electric and subsidiaries	(270)		(134)	(95)	—	—	(499)
Proceeds from issuance of short-term debt	25,000		—	—	—	—	25,000
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less	15,199		—	9,500	—	(18,700)	5,999
Other	—		(1)	(1)	—	—	(2)
Net cash provided by (used in) financing activities	14,616		(2,679)	5,637	—	(12,389)	5,185
Net decrease in cash and cash equivalents	(13,738)		(11,798)	(1,960)	—	—	(27,496)
Cash and cash equivalents, beginning of period	16,732		15,623	3,421	101	—	35,877
Cash and cash equivalents, end of period	$	2,994	3,825	1,461	101	—	$	8,381