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Electric utility segment
 12 Months Ended
Dec. 31, 2024
Electric Utility Subsidiary [Abstract]  
Electric utility segment
Note 4 · Electric utility segment
Regulatory assets and liabilities.  The Utilities record regulatory assets and liabilities when they are deemed probable of recovery from or refund to customers. Determining probability requires significant judgment by management and includes considerations of regulatory orders, proposed regulatory treatment, strength of the applications and other available evidence. Regulatory assets represent deferred costs and accrued decoupling revenues which are expected to be recovered through rates over PUC-authorized periods. Generally, the Utilities do not earn a return on their regulatory assets; however, they have been allowed to recover interest on certain regulatory assets and to include certain regulatory assets in rate base. Regulatory liabilities represent amounts included in rates and collected from ratepayers for costs expected to be incurred in the future, or amounts collected in excess of costs incurred that are refundable to customers. For example, the regulatory liability for cost of removal in excess of salvage value represents amounts that have been collected from ratepayers for costs that are expected to be incurred in the future to retire a utility plant. Generally, the Utilities include regulatory liabilities in rate base or are required to apply interest to certain regulatory liabilities. In the table below, noted in parentheses are the original PUC authorized amortization or recovery periods and, if different, the remaining amortization or recovery periods as of December 31, 2024 are noted.
Regulatory assets were as follows:
December 3120242023
(in thousands)  
Income taxes (1-35 years)
$81,102 $81,620 
Retirement benefit plans (balance primarily varies with plans’ funded statuses)13,755 70,616 
Maui windstorm and wildfire related costs (to be determined by PUC)
52,652 14,692 
Retirement of generating units (10 years)
40,953 29,930 
Right-Of-Use (ROU) assets (25 years remaining)
19,105 9,067 
ECRC/PPAC (1 year)
17,418 24,691 
Vacation earned, but not yet taken (1 year)
13,950 14,585 
Decoupling revenue balancing account and RAM (1 year)
9,829 19,002 
Performance Incentive Mechanisms (PIMs) (1 year)
6,783 2,923 
COVID-19 related costs (3 years)
6,715 8,715 
Other (1-35 years remaining)
19,057 18,963 
Total regulatory assets$281,319 $294,804 
Included in:  
Current assets$53,895 $68,453 
Long-term assets227,424 226,351 
Total regulatory assets$281,319 $294,804 

Regulatory liabilities were as follows:
December 3120242023
(in thousands)  
Cost of removal in excess of salvage value (1-79 years)
$601,741 $591,298 
Income taxes (1-35 years)
292,036 303,225 
Retirement benefit plans (balance primarily varies with plans’ funded statuses)
279,553 171,421 
Solar tax credits (1-17 years)
46,661 49,507 
Enterprise Resource Planning (ERP) Benefits (to be determined by PUC)
12,549 12,409 
Decoupling revenue balancing account and RAM (1 year)
5,498 5,995 
ECRC/PPAC (1 year)
4,296 15,169 
Other (1 year remaining)
1,749 1,666 
Total regulatory liabilities$1,244,083 $1,150,690 
Included in:
Current liabilities$26,568 $36,559 
Long-term liabilities1,217,515 1,114,131 
Total regulatory liabilities$1,244,083 $1,150,690 
The regulatory asset and liability relating to retirement benefit plans was recorded as a result of pension and OPEB tracking mechanisms adopted by the PUC in rate case decisions for the Utilities in 2007 (see Note 11).
Regulatory asset related to retirement of generating units.
Honolulu generating units 8 and 9. On December 22, 2023, the PUC issued a decision and order approving the Utilities’ request to establish a regulatory asset for the remaining net book value of the fossil fuel generating units for both Honolulu units 8 and 9 assets that retired on December 31, 2023, and amortize the regulatory asset over approximately nine years. The PUC also ruled that the Utilities may seek to include the regulatory asset in rate base and seek to recover the amortization expense and a return on the unamortized balance of the regulatory asset in the next rate case or rate re-setting proceeding. As of December 31, 2024, the Utilities have recorded $26.7 million in regulatory assets for the remaining net book value of Honolulu generating units 8 and 9.
Waiau generating units 3 and 4. On September 30, 2024, the PUC issued a decision and order approving the Utilities’ request to establish a regulatory asset for the remaining net book value of the fossil fuel generating units for both Waiau units 3 and 4 assets that retired on December 31, 2024, and amortize the regulatory asset over approximately nine years. The PUC also ruled that the Utilities may seek to include the regulatory asset in rate base and seek to recover the amortization expense and a return on the unamortized balance of the regulatory asset in the next rate case or rate re-setting proceeding. As of December 31, 2024, the Utilities have recorded $14.3 million in regulatory assets for the remaining net book value of Waiau generating units 3 and 4.
Regulatory assets for Maui windstorm and wildfires related costs. On December 27, 2023, the PUC issued an order authorizing deferred accounting treatment for the Utilities’ incremental non-labor expenses under specific cost categories related to the August 2023 Maui windstorm and wildfires. The deferred accounting treatment authorized, applied to certain non-labor expenses incurred from August 8, 2023 through December 31, 2024 that are not already a part of base rates.
As of December 31, 2024, the Utilities have recorded $52.7 million in regulatory assets for the incremental costs incurred related to the Maui windstorm and wildfires event.
On November 27, 2024, the Utilities filed a request with the PUC to extend the deferral accounting period to December 31, 2025, specifically limited to insurance premiums and outside services and legal costs associated with the asset-based lending facility credit agreement (see Note 6). On February 12, 2025, the PUC issued an order granting the Utilities’ request to extend.
Requests for cost recovery of deferred costs will be the subject of a separate application at which time the PUC will evaluate whether such costs were prudently incurred and reasonable and determine the extent to which such costs will be eligible for recovery, and the period over which recovery will occur. If the PUC denies recovery of any deferred costs, such costs would be charged to expense in the period that those costs are no longer considered probable of recovery.
Regulatory liabilities for Enterprise Resource Planning/Enterprise Asset Management (ERP/EAM). The ERP/EAM Implementation Project went live in October 2018. Hawaii Electric Light and Hawaiian Electric began to incorporate their portion of the deferred project costs in rate base and started the amortization over a 12-year period in January 2020 and November 2020, respectively. The PUC required a minimum of $246 million ERP/EAM project-related benefit to be delivered to customers over the system’s 12-year service life.
In February 2019, the PUC approved a methodology for passing the future cost saving benefits of the 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 other operation and maintenance (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. In October 2019, the PUC approved the Utilities and the Consumer Advocate’s Stipulated Performance Metrics and Tracking Mechanism. As part of the settlement agreement approved in the Hawaiian Electric 2020 test year rate case, the regulatory liability for Hawaiian Electric will be amortized over five years, beginning in November 2020, and the O&M benefits for Hawaiian Electric was considered flowed through to customers. On December 29, 2023, the PUC approved the Utilities’ proposal to accelerate flow-through of the ERP benefits savings currently tracked in regulatory liability accounts to Hawaii Electric Light and Maui Electric customers as part of the customer dividend in the ARA, to mitigate the impact of the Utilities’ recovery of the COVID-19 related costs on customers. See “Regulatory assets for COVID-19 related costs” section below.
As of December 31, 2024, the Utilities’ regulatory liability was $12.5 million ($1.2 million for Hawaiian Electric, $4.5 million for Hawaii Electric Light and $6.8 million for Maui Electric) for the O&M expense savings that are being amortized or to be included in future rates. At the PUC’s direction, the Utilities have been filing Annual Enterprise System Benefits (AESB) report on the achieved benefits savings.
Regulatory assets for COVID-19 related costs. On December 29, 2023, the PUC issued a decision and order (December 2023 D&O) approving the Utilities’ request to recover the COVID-19 related deferred costs up to $8.8 million evenly over a
three-year recovery period from 2024 through 2026 through the Z-factor in the ARA. Following the Utilities’ motion for clarification or in the alternative partial reconsideration of the December 2023 D&O, on February 27, 2024, the PUC issued an order clarifying the December 2023 D&O and approving, among other things, the Utilities’ requests to base the recovery on the recorded balances as of December 31, 2023 and to modify the recovery period to begin June 1, 2024 and end May 31, 2027. As of December 31, 2024, the Utilities have recorded $6.7 million in regulatory assets for deferral of COVID-19 related costs.
Regulatory assets for suspension of disconnections related costs. Based on circumstances related to the Maui windstorm and wildfires, on August 31, 2023 and subsequently on October 13, 2023, the PUC issued orders directing all regulated utilities located on, or providing utility service on Maui, including the Utilities, among other things, (i) to suspend disconnections of services and associated disconnection fees beginning from August 8, 2023, through the end of the emergency relief period established by the Governor’s Emergency Proclamations related to the Maui windstorm and wildfires, which currently continues through April 5, 2025 (Suspension Period); (ii) to suspend any and all rules and provisions of individual utility tariffs that prevent or condition re-connection of disconnected customers during the Suspension Period; (iii) not to charge customers interest on past due payments or impose any late payment fees through the Suspension Period; (iv) to establish regulatory assets to record costs directly related to the suspension of disconnections, and to record receipt of governmental aid and donation-based aid, loans or grants, and/or all other assistance measures, and any cost savings realized; and (v) to file a notice with the PUC regarding any upcoming application or other request pursuant to HRS Sections 269-16.3, -17, -17.5, -18, -19, or -19.5 and/or regarding any significant financial change to the Maui utility, at least 60 days prior to filing such application or other request with the PUC. The orders also discourage the filing of emergency or general rate increases in response to the emergency situation. In future proceedings, the PUC will assess the utility’s request for recovery of these regulatory assets including whether it is reasonable and necessary, the appropriate period of recovery for the approved amount of regulatory assets, any amount of carrying costs thereon, any savings directly attributable to suspension of disconnects, and other related matters. As of December 31, 2024, the Utilities have recorded $2.8 million in regulatory assets for the incremental costs incurred due to the suspension of disconnections.
Major customers.  The Utilities received 11% ($369 million), 12% ($376 million) and 12% ($393 million) of their operating revenues from the sale of electricity to various federal government agencies in 2024, 2023 and 2022, respectively.
Cumulative preferred stock. The following series of cumulative preferred stock are redeemable only at the option of the respective company at the following prices in the event of voluntary liquidation or redemption:
December 31, 2024Voluntary
liquidation price		Redemption
price
Series  
C, D, E, H, J and K (Hawaiian Electric)$20 $21 
I (Hawaiian Electric)20 20 
G (Hawaii Electric Light)100 100 
H (Maui Electric)100 100 
Hawaiian Electric is obligated to make dividend, redemption and liquidation payments on the preferred stock of each of its subsidiaries if the respective subsidiary is unable to make such payments, but this obligation is subordinated to Hawaiian Electric’s obligation to make payments on its own preferred stock.
Related-party transactions. HEI charged the Utilities $5.5 million, $5.2 million and $5.6 million for general management and administrative services in 2024, 2023 and 2022, respectively. The amounts charged by HEI to its subsidiaries for services provided by HEI employees are allocated primarily on the basis of time expended in providing such services.
In 2024, 2023 and 2022, Hamakua Energy (an indirect subsidiary of HEI) sold energy and capacity to Hawaii Electric Light (subsidiary of Hawaiian Electric and indirect subsidiary of HEI) under a power purchase agreement (PPA) in the amount of $35 million, $71 million and $66 million, respectively.
Hawaiian Electric’s short-term borrowings from HEI totaled nil at December 31, 2024 and 2023. Borrowings among the Utilities are eliminated in consolidation. Interest charged by HEI to Hawaiian Electric was nil for the years ended December 31, 2024 and 2023.
Consolidated variable interest entities. The HE AR INTER LLC and its direct subsidiary, HE AR BRWR LLC, (collectively, the SPEs) are bankruptcy remote, direct and indirect wholly owned subsidiaries of the Utilities. Pursuant to the asset-based lending facility (ABL Facility) credit agreement, the Utilities sells certain accounts receivable to the SPEs as collateral, which in turn, obtain financing from financial institutions. As of December 31, 2024, the ABL Facility remains undrawn and the SPEs have $324.7 million of net accounts receivable, included in “Customer accounts receivable, net”, and “Accrued unbilled
revenues, net”, on the Utilities’ Consolidated Balance Sheet and “Accounts receivable and unbilled revenues, net”, on the Company’s Consolidated Balance Sheet.
The SPEs are considered VIEs due to insufficient equity investment at risk. The most significant activities that impact the economic performance of the SPEs are cash and financing management. The Utilities are considered the primary beneficiary as the Utilities direct the activities related to cash and financing management and therefore, are required to consolidate the SPEs. Although the SPEs are direct and indirect wholly owned consolidated subsidiaries of the Utilities, the SPEs are legally separate from the Utilities. The assets of the SPEs (which are primarily accounts receivables) are not available to creditors of the Utilities.
Unconsolidated variable interest entities.
Power purchase agreements.  As of December 31, 2024, the Utilities had four power purchase agreements (PPAs) for firm capacity 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) and Hamakua Energy by reason of the provisions of the PPA that the Utilities have with the two IPPs. However, management has concluded that the Utilities are not the primary beneficiary of Kalaeloa and Hamakua Energy because the Utilities do not have the power to direct the activities that most significantly impact the two 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 and Hamakua Energy in its consolidated financial statements. However, Hamakua Energy is an indirect subsidiary of Pacific Current and is consolidated in HEI’s 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. The consolidation of any significant IPP could have a material effect on the 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.
Contingencies. The Utilities are subject in the normal course of business to legal, regulatory and environmental proceedings. Excluding the potential liabilities from the Maui windstorm and wildfires, 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. The Utilities record loss contingencies when the outcome of such proceedings is probable and when the amount of the loss is reasonably estimable. The Utilities also evaluate, on a continuous basis, whether developments in such proceedings could cause these assessments or estimates to change. Assessment regarding future events is required when evaluating whether a loss is probable or reasonably possible, and as to whether such loss or a range of such loss is estimable. Management is often unable to estimate a reasonably possible loss, or a range of loss, particularly in cases in which: (i) the damages sought are indeterminate or the basis for the damages claimed is not clear; (ii) proceedings are in early stages; (iii) discovery is not complete; (iv) the matters involve novel or unsettled legal theories; (v) significant facts are in dispute; (vi) a large number of parties are represented (including circumstances in which it is uncertain how liability, if any, would be shared among multiple defendants); (vii) a lower court or administrative agency’s decision or ruling has been appealed; and/or (viii) a wide range of potential outcomes exist. In such cases, there may be considerable uncertainty regarding the timing or ultimate resolution, including any possible loss, fine, penalty, or business impact.
August 2023 Maui windstorm and wildfires. See Note 2.
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 the termination of the original PPA. Following the termination, Hu Honua filed a lawsuit in the U.S. District Court for the District of Hawaii. The parties reached a settlement that was conditioned on the PUC’s timely, non-appealable final approval of an amended and restated PPA dated May 9, 2017. On May 23, 2022, following a contested case hearing, the PUC issued a decision and order denying the amended and restated PPA, based on, among other things, findings that: (1) the project will result in significant greenhouse gas (GHG)
emissions, (2) Hu Honua’s proposed carbon commitment to sequester more GHG emissions than produced by the project are speculative and unsupported, (3) the amended and restated PPA is likely to result in high costs to customers through its relatively high cost of electricity and through potential displacement of other, lower cost, renewable resources, and (4) based on the foregoing, approving the amended and restated PPA is not prudent or in the public interest. On June 2, 2022, Hawaii Electric Light and Hu Honua filed their separate motions for reconsideration, which were denied by the PUC on June 24, 2022. On June 29, 2022, Hu Honua filed its notice of appeal to the Hawaii Supreme Court of the PUC’s May 23, 2022 decision and order denying the amended and restated PPA. On March 13, 2023, the Hawaii Supreme Court affirmed the PUC’s decision denying the amended and restated PPA between Hu Honua and Hawaii Electric Light and entered its judgment on appeal on April 12, 2023. On June 7, 2023, Hu Honua filed a status report with the U.S. District Court for the District of Hawaii, stating, among other things, that because settlement of the underlying federal lawsuit was contingent on timely, non-appealable, final approval of the amended and restated PPA by the PUC, that the Hawaii Supreme Court’s opinion made fulfillment of the condition impossible, and therefore the settlement agreement between the Hawaiian Electric defendants (HEI, Hawaiian Electric, and Hawaii Electric Light) and Hu Honua is null and void and of no further effect. On November 16, 2023, Hu Honua filed its Motion for Leave to File Third Amended and Supplemental Complaint and for Permissive Joinder with the U.S. District Court for the District of Hawaii, asking the court to grant it leave to file a Third Amended and Supplemental Complaint, which would amend its claims and add three new proposed defendants. The hearing on this motion took place on February 14, 2024. The court issued a decision and order on the motion on April 2, 2024, which was consistent with Hawaii Electric Light's position, only allowing amendments that were agreed to and not allowing Hu Honua to add new claims or parties, effectively leaving Hu Honua with its previously-pled breach of contract and antitrust claims. Hu Honua filed its objection to the order on April 16, 2024 and the Hawaiian Electric defendants filed their response to the objection on April 30, 2024. A hearing on Hu Honua’s objection took place on July 30, 2024. On September 12, 2024, the court issued its decision affirming the April 2, 2024 order. Hu Honua filed its Third Amended and Supplemental Complaint on October 25, 2024, and after discussion with the Hawaiian Electric defendants and the court, filed its Amended Third Amended and Supplemental Complaint on December 3, 2024. The Hawaiian Electric defendants filed their Motion to Compel Arbitration on the contract claims and Motion to Dismiss the antitrust claims on January 7, 2025, and the matter is set for hearing on March 31, 2025.
Molokai New Energy Partners (MNEP). In July 2018, the PUC approved Maui Electric’s PPA with MNEP to purchase solar energy from a photovoltaic (PV) plus battery storage project. The 4.88 MW PV and 3 MW Battery Energy Storage System (BESS) project was to deliver no more than 2.64 MW at any time to the Molokai system. On March 25, 2020, MNEP filed a complaint in the United Stated District Court for the District of Hawaii against Maui Electric claiming breach of contract. On June 3, 2020, Maui Electric provided a Notice of Default and Termination of the PPA to MNEP terminating the PPA with an effective date of July 10, 2020. Thereafter, MNEP filed an amended complaint to include claims relating to the termination and Hawaiian Electric filed its answer to the amended complaint on September 11, 2020, disputing the facts presented by MNEP and all claims within the original and amended complaint. Currently, the discovery phase is ongoing.
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 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 and left the property in 1987. The Environmental Protection Agency (EPA) has since identified environmental impacts in the subsurface soil at the Site. In cooperation with the State of 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 $2.5 million as of December 31, 2024, representing the probable and reasonably estimable undiscounted cost for remediation of the Site and the adjacent parcel based on presently available information; however, final costs of remediation will depend on the 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 under CERCLA 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 December 31, 2024, the reserve account balance recorded by Hawaiian Electric to address the PCB contamination was $9.5 million. The reserve balance represents the probable and reasonably estimable undiscounted cost for the onshore and offshore investigation and remediation. The final remediation costs will depend on the actual onshore and offshore cleanup costs.
Endangered Species Act (ESA). The Utilities received a 60-day Notice under the federal Endangered Species Act, from Earthjustice on behalf of the American Bird Conservancy and Conservation Council for Hawaii (Conservation Groups) in January 2024. The 60-day Notice (Notice) is the pre-cursor to a citizen’s suit under the Endangered Species Act. The Notice alleges that the Utilities are out of compliance with the Act due to alleged impacts on endangered seabirds caused by the Utilities’ powerlines, street lights and facility lights on Maui and Lanai. At the time the Notice was served, the Utilities were already in the process of drafting a Habitat Conservation Plan (HCP) with respect to the powerlines and will be applying for associated state and federal take/license permits. Notwithstanding, the Notice asserts that the scope of the HCP should be broader and additional interim measures are necessary while the HCP and related permits are pending. After negotiations among the parties a complaint was filed on November 12, 2024, regarding the powerlines and on December 11, 2024, the Court approved a settlement agreement. Pursuant to that agreement the Utilities will continue the HCP process and take specific actions to minimize and mitigate the potential impact of the Utilities’ powerlines while the document is being prepared. The agreement also contains additional requirements that include coordination with the Conservation Groups with various aspects of the HCP and powerline operations, and continuing the Utilities’ commitment to a species mitigation project with University of Hawaii Foundation to monitor, protect and increase the population of Hawaiian Petrels. The street and facility lights aspect of the Notice was not resolved and a second complaint was filed on November 19, 2024 that includes the County of Maui as a party. At this time, the parties are engaging in settlement discussions and the Utilities are unable to determine the ultimate outcome or the amount of any possible loss.
Commitments.  
Purchase commitments. As of December 31, 2024, the Utilities’ estimated future minimum payments pursuant to purchase obligations related to material contracts for the following five years and thereafter are as follows:
Payments Due
(in millions)
2025
2026
2027
2028
2029
Thereafter
Total
Firm capacity PPAs
$75 $75 $75 $70 $70 $225 $590 
Renewable dispatchable generation plus energy storage and energy storage PPAs77 77 77 77 77 1,174 1,559 
Other renewable PPA
— 1 4 4 4 69 82 
Fuel transportation
7 7 2 — — — 16 
Total
$159 $160 $158 $151 $151 $1,468 $2,247 
Firm capacity PPAs. The Utilities are committed to purchase from four firm capacity PPAs for a total of 368.7 megawatts (MW) of firm capacity, which expire at various dates through 2033.
Renewable dispatchable generation plug energy storage and energy storage PPAs. The Utilities also have long-term renewable PPAs with IPPs from the issuances of Stage 1 and 2 request for proposals in 2018 and 2019, respectively. The Utilities have additional annual payments of $28 million when three projects began commercial operations in 2024. As of December 31, 2024, a total of seven projects provides the Utilities capacity of 219.5 MW, with 1,443 MWh batteries. The contracts expire at various dates through 2049.
Other renewable PPA. The Utilities also have a long-term renewable PPA that provides the Utilities capacity of 10.56 MW, which expires in 2046.
Fuel transportation lease contract. The Utilities entered into an inter-island fuel transportation contract, expiring in 2027.
The PUC has approved PPACs for the Utilities to recover purchased power capacity, operation and maintenance (O&M) and other non-energy costs related to all aforementioned PPAs. In addition, the Utilities are able to recover fuel component of the energy charges for firm capacity PPAs as well as costs associated to fuel transportation through ECRC.
In general, the Utilities base their payments under the PPAs upon available capacity and actual energy supplied and they are generally not required to make payments for capacity if the contracted capacity is not available, and payments are reduced, under certain conditions, if available capacity drops below contracted levels. In general, the payment rates for capacity have been predetermined for the terms of the agreements. The Utilities do not operate, or participate in the operation of, any of the facilities that provide power under the agreements. Title to the facilities does not pass to Hawaiian Electric or its subsidiaries upon expiration of the agreements, and the agreements do not contain bargain purchase options for the facilities.
Purchases from all IPPs were as follows: 
Years ended December 31202420232022
(in millions)
Kalaeloa$291 $298 $342 
AES Hawaii1
— — 82 
HPOWER74 70 73 
Hamakua Energy
35 71 66 
Puna Geothermal Venture56 38 48 
Kapolei Energy Storage
24 — — 
Wind IPPs130 125 119 
Solar IPPs84 72 57 
Other IPPs2
9 (2)7 
Total IPPs$703 $672 $794 
1 The term of the PPA with AES Hawaii expired on September 1, 2022 and the AES Hawaii coal plant ceased operations.
2 Includes hydro power and other PPAs.
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 or community support 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.
Waena Switchyard/Synchronous Condenser Project. In October 2020, to support efforts to increase renewable energy generation and reduce fossil fuel consumption by deactivating current generating units, Maui Electric filed a PUC application to construct a switchyard, which includes the extension of two 69 kV transmission lines and the relocation of another 69 kV transmission line; and the conversion of two generating units to synchronous condensers at Kahului Power Plant in central Maui. In November 2021, the PUC approved Maui Electric’s request to commit funds estimated at $38.8 million for the project, and to recover capital expenditures for the project under Exceptional Project Recovery Mechanism (EPRM) not to exceed $38.8 million, which shall be further reduced to reflect the total project cost exclusive of overhead costs not directly attributable to the project. The Waena Switchyard was placed in service on October 25, 2023. Maui Electric petitioned and received from the State of Hawaii Department of Health a one-year extension to the mandatory retirement of Kahului Power Plant and there is now flexibility to operate the units until the end of 2028. The conversion of the two generating units will be performed after the retirement of Kahului Power Plant Units 3 and 4.
In approving the project, the PUC recognized that the project will facilitate the ability to accommodate increased renewable energy, as contemplated under the EPRM guidelines. As of December 31, 2024, $25.5 million has been incurred for the project.
Waena Battery Energy Storage System Project. In September 2020, Maui Electric filed a PUC application to purchase and install a 40 MW BESS at its Waena Site in Central Maui. In December 2023, the PUC approved Maui Electric’s request to commit funds estimated at $82.1 million, for the purchase and installation of the project, and to recover costs for the project under EPRM. Project costs incurred as of December 31, 2024 amount to $6.7 million.
Climate Adaptation Transmission and Distribution Resilience Program. The Utilities maintain that improving resiliency of the electric grid is an urgent matter and recognizes that climate change is making Hawaii increasingly vulnerable to sever weather events. On January 31, 2024, the PUC approved the Utilities’ request to commit an estimated $189.7 million in funds for the Climate Adaptation Transmission and Distribution Resilience Program, over a project period of five years. The project is to focus on, among other things, system hardening in wildfire risk areas to prevent ignition and to enable quicker response, video camera and weather monitors in wildfire risk areas and to add situational awareness, and strengthening transmission lines.
The project costs to be recovered through EPRM is subject to a cap of $95 million and any amount in excess will be subject to the PUC’s further review. On August 7, 2024, the Utilities received a notification from the U.S. Department of Energy that its application for $95 million in federal funds under the Infrastructure Investment and Jobs Act (IIJA) was officially awarded. On August 20, 2024, the Utilities submitted a copy of their executed agreement with the Department of Energy to the PUC. On November 18, 2024, the Utilities filed their August 2024 - August 2025 Forward Looking Annual Report. Project costs incurred as of December 31, 2024 amount to $9.7 million.
In January 2025, President Trump issued multiple Executive Orders (EOs) that impact both IIJA and IRA funding. EO 14154 entitled Unleashing American Energy ordered to immediately pause disbursement of funds appropriated through IIJA and IRA grants, which is causing delays in processing the Utilities’ requests for reimbursement for the Resilience Program and
may potentially lead to project delays and economic uncertainty. The EO entitled Ending Radical and Wasteful Government DEI Programs and Preferencing resulted in the federal contracting officer ordering recipients to cease all diversity, equity and inclusion and community benefits plan activities funded by federal grants as of January 28, 2025, which could potentially impact the Utilities’ existing community benefits agreements with some third parties and commitments included in the Resilience Program project costs.
Asset retirement obligations.  Asset retirement obligations (AROs) represent legal obligations associated with the retirement of certain tangible long-lived assets, are measured as the present value of the projected costs for the future retirement of specific assets and are recognized in the period in which the liability is incurred if a reasonable estimate of fair value can be made. The Utilities’ recognition of AROs have no impact on their earnings. The cost of the AROs is recovered over the life of the asset through depreciation. AROs recognized by the Utilities relate to legal obligations associated with the retirement of plant and equipment, including removal of asbestos and other hazardous materials.
The Utilities recorded AROs related to: 1) the removal of retired generating units, certain types of transformers and underground storage tanks; 2) the abandonment of fuel pipelines, underground injection and supply wells; and 3) the removal of equipment and restoration of leased land used in connection with Utility-owned renewable and dispatchable generation facilities. 
Changes to the ARO liability included in “Other liabilities” on Hawaiian Electric’s balance sheet were as follows:
(in thousands)20242023
Balance, January 1$12,009 $11,548 
Accretion expense484 463 
Liabilities incurred— — 
Liabilities settled(1)(2)
Balance, December 31$12,492 $12,009 
The Utilities have not recorded AROs for assets that are expected to operate indefinitely or where the Utilities cannot estimate a settlement date (or range of potential settlement dates). As such, ARO liabilities are not recorded for certain asset retirement activities, including various Utilities-owned generating facilities and certain electric transmission, distribution and telecommunications assets resulting from easements over property not owned by the Utilities.
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. Decoupling delinks the utility’s revenues from the utility’s sales, removing the disincentive to promote energy efficiency and accept more renewable energy. Decoupling continues under the PBR Framework.
Performance-based regulation framework. On December 23, 2020, the PUC issued a decision and order (PBR D&O) establishing the PBR Framework to govern the Utilities. The PBR Framework incorporates an annual revenue adjustment (ARA) and a suite of new regulatory mechanisms in addition to previously established regulatory mechanisms. Under the PBR Framework, the decoupling mechanism (i.e., the Revenue Balancing Account (RBA)) established by the previous regulatory framework will continue. The existing cost recovery mechanisms continued as previously implemented (e.g., the Energy Cost Recovery Clause, Purchased Power Adjustment Clause (PPAC), Demand-Side Management surcharge, Renewable Energy Infrastructure Program, Demand Response Adjustment Clause, Pension and Other Post-Employment Benefits (OPEB) tracking mechanisms). In addition to annual revenues provided by the ARA, the Utilities may seek relief for extraordinary projects or programs through the Exceptional Project Recovery Mechanism (EPRM) (formerly known as the Major Project Interim Recovery adjustment mechanism) and earn financial rewards for exemplary performance as provided through a portfolio of Performance Incentive Mechanisms (PIMs) and Shared Savings Mechanisms (SSMs). The PBR Framework incorporates a variety of additional performance mechanisms, including Scorecards, Reported Metrics, and an expedited Pilot Process. The PBR Framework also contains a number of safeguards, including a symmetric Earnings Sharing Mechanism (ESM) which protects the Utilities and customers from excessive earnings or losses, as measured by the Utilities’ achieved rate-making ROACE and a Re-Opener mechanism, under which the PUC will open an examination, at its discretion, to determine if adjustments or modifications to specific PBR mechanisms are appropriate. The PBR Framework became fully effective on June 1, 2021.
On June 17, 2022, the PUC issued a decision and order (June 2022 D&O) establishing additional PIMs under the PBR Framework for the Utilities. The June 2022 D&O approved two PIMs, a SSM, and extended the timeframe for an existing PIM. Specifically, the PUC approved (1) a (penalty-only) generation-caused interruption reliability PIM, (2) a (penalty/reward) interconnection requirements study PIM, (3) a (reward-only) Collective Shared Savings Mechanism (CSSM), and (4) a
modification and extension of the existing Interim Grid Services PIM (reward-only). On November 23, 2022, the PUC approved the Utilities’ proposed tariffs to implement the aforementioned PIMs with an effective date of January 1, 2023.
In addition, the June 2022 D&O instructed the Utilities to prepare and submit: a detailed fossil fuel retirement report (FF Retirement Report) outlining necessary steps to safely and reliably retire certain existing fossil fuel power plants during the first multi-year rate period (MRP); and a functional integration plan (FIP) for distributed energy resources (DER) to increase transparency into the Utilities’ plans and progress for utilizing cost-effective grid services from DERs and ensure that the necessary functionalities and requisite technologies are in place to do so. The PUC also instructed the PBR Working Group to continue its ongoing collaborative efforts to consider other potential new incentive mechanisms and to address other issues raised during the proceeding. On March 30, 2023, the PUC held a PBR Working Group coordination meeting to initiate subgroups on the Long-Term Grid Services PIM, modification/evaluation of existing PIMs, and comprehensive PBR Framework review priority topics.
In accordance with the June 2022 D&O, the Utilities filed their FIP on September 30, 2022, Long-Term Grid Services PIM proposal on July 3, 2023, and FF Retirement Report on October 11, 2024.
On October 16, 2023, the Utilities filed a request for limited suspension of the Transmission and Distribution (T&D) System Average Interruption Duration Index (SAIDI) PIM, the T&D System Average Interruption Frequency Index (SAIFI) PIM, and the target heat rate provision of Maui Electric Maui Division’s Energy Cost Recovery Clause (ECRC) tariff starting from August 8, 2023. On December 28, 2023, the PUC issued an order granting a temporary suspension of Maui Electric’s T&D SAIDI and SAIFI PIMs and Maui Electric Maui Division’s target heat rate provision from August 8, 2023 through June 30, 2024, which the tariffs became effective on January 1, 2024.
On November 3, 2023, the Utilities, Ulupono Initiative LLC, and the County of Hawaii filed a stipulation on proposed modifications to the RPS-A, Call Center, AMI Utilization, and interconnection requirements study PIMs. On June 24, 2024, the PUC issued an order (1) approving modifications to the interconnection requirements study PIM to expand its application to firm generation projects effective August 1, 2024, (2) approving a consolidated target for the Call Center PIM and modifying the target performance based on the average of the Utilities’ performance, weighted by the number of calls for the last eight quarters as of December 31, 2023, effective August 1, 2024, (3) denying the proposed modifications to the RPS-A PIM and clarifying that it will continue to operate according to its existing tariff language; and (4) denying the proposed modifications to the AMI Utilization PIM and declining to extend the PIM beyond its scheduled sunset date of December 31, 2023.
On December 26, 2023, the PUC issued an order (1) confirming that the Interim Grid Services PIM will sunset on December 31, 2023, (2) extending the Interconnection Approval PIM through December 31, 2024, and (3) determining that it will continue examination of the Long-Term Grid Services PIM into 2024 as part of a broader examination that addresses barriers to the utilization of DERs to meet grid needs.
On April 1, 2024, the Utilities filed a request for partial temporary suspension and modification of the T&D SAIDI and T&D SAIFI PIMs to specifically suspend the T&D SAIDI and T&D SAIFI PIMs for wildfire risk circuits from January 1, 2024 to December 31, 2025. The Utilities also proposed that circuits not identified as wildfire risk circuits would continue to be subject to the existing PIMs on a prorated basis. On December 18, 2024, as clarified on January 15, 2025, the PUC issued orders granting the Utilities’ request to suspend the T&D SAIDI and T&D SAIFI PIMs for wildfire risk circuits from January 1, 2024 to December 31, 2025.
On June 19, 2024, the PUC issued an order (June 2024 order) providing preliminary guidance regarding the comprehensive evaluation of the PBR Framework that will commence in the fourth year of the PBR Framework’s first MRP (PBR Framework Review). The PUC has developed a high-level review structure and timeline for the PBR Framework Review and divided the remainder of the first MRP into three phases: (i) the evaluation of the current PBR Framework, (ii) the examination of proposal for modifications to the PBR Framework, and (iii) the implementation of modifications prior to commencing the second MRP. At the PBR Working Group meeting held on June 26, 2024, the PUC staff solicited the parties’ feedback on the scope of the PBR Framework Review and discussed other considerations, including rebasing target revenues. On July 19, 2024, as requested by the PUC staff, the parties filed written feedback to materials presented and discussed at the June Working Group meeting and in the June 2024 order.
On July 30, 2024, the PUC issued an order providing further guidance on the first of the three phases of the PBR Framework Review established by the June 2024 order. The first phase will focus on the evaluation of the individual PBR mechanisms using an informal, collaborative process. Parties will submit briefing on their evaluation of the individual PBR mechanisms near the end of the first phase, followed by a decision and order summarizing the findings of the evaluation, including which PBR mechanisms will be subject to additional examination and potential modification in the second phase of the PBR Framework Review. At the PBR Working Group meetings held on August 30, 2024 and October 25, 2024, the Working Group discussed issues and considerations regarding re-basing target revenues for the next MRP. Series of PBR Working Group meetings are expected to be held with the parties. Timely briefs addressing the issues of whether and how to
rebase target revenues were filed on December 5, 2024. Pending the PUC’s review and issuance of an Order on the briefings, the PBR Working Group will continue its evaluation of the PBR Framework as part of this proceeding.
Annual revenue adjustment mechanism. The PBR Framework established a five-year MRP during which there will be no general rate cases. Target revenues will be adjusted according to an index-driven ARA based on (i) an inflation factor, (ii) a predetermined X-factor to encompass productivity, which is set at zero, (iii) a Z-factor to account for exceptional circumstances not in the Utilities’ control and (iv) a customer dividend consisting of a negative adjustment of 0.22% of adjusted revenue requirements compounded annually and a flow through of the “pre-PBR” savings commitment from the management audit recommendations developed in a prior docket at a rate of $6.6 million per year from 2021 to 2025. The ARA mechanism replaced the previous revenue adjustment mechanism (RAM). RAM revenue adjustments approved by the PUC in 2020 will continue to be included in the RBA provision’s target revenue and RBA rate adjustment to the extent such adjustments are not included in base rate unless modified with PUC approval. The implementation of the ARA occurred on June 1, 2021.
Earnings sharing mechanism. The PBR Framework established a symmetrical ESM for achieved rate-making ROACE outside of a 300 basis points deadband above or below the current authorized ROACE of 9.5% for each of the Utilities. There is a 50/50 sharing between customers and Utilities for the achieved rate-making ROACE falling within 150 basis points outside of the deadband in either direction, and a 90/10 sharing for any further difference. A reopening or review of the PBR terms may be triggered if the Utilities credit rating outlook indicates a potential credit downgrade below investment grade status, or if its achieved rate-making ROACE enters the outer most tier of the ESM.
On August 31, 2023, the PUC issued an order temporarily suspending the ESM until further notice. The intent of the order is to address the unintended consequence of customers potentially bearing the costs associated with the Maui windstorm and wildfires through the operation of the ESM without prior PUC review.
Exceptional project recovery mechanism. Prior to the implementation of the PBR Framework, the PUC established the Major Project Interim Recovery (MPIR) adjustment mechanism and MPIR Guidelines. The MPIR mechanism provides the opportunity to recover revenues for net costs of approved eligible projects placed in service between general rate cases. In establishing the PBR Framework, the MPIR Guidelines were terminated and replaced with the EPRM Guidelines. Although the MPIR Guidelines were terminated and replaced by the EPRM Guidelines, the MPIR mechanism will continue within the PBR Framework to provide recovery of project costs previously approved for recovery under the MPIR. The established EPRM Guidelines permit the Utilities to include the full amount of approved costs in the EPRM for recovery in the first year the project goes into service, pro-rated for the portion of the year the project is in service. Deferred and O&M expense projects are also eligible for EPRM recovery under the EPRM Guidelines. EPRM recoverable costs will be limited to the lesser of actual incurred project costs or PUC-approved amounts, net of savings.
As of December 31, 2024, the Utilities annualized MPIR and EPRM revenue amounts totaled $38.0 million, including revenue taxes, for the Schofield Generating Station ($16.1 million), West Loch PV project ($3.2 million), Grid Modernization Strategy (GMS) Phase 1 project ($16.1 million for all three utilities), Waiawa UFLS project ($0.1 million) and Waena Switchyard/Synchronous project ($2.5 million) that included the 2024 return on project amount (based on approved amounts) in rate base, depreciation and incremental O&M expenses. The PUC approved the Utilities’ recovery of the annualized 2024 MPIR and EPRM amounts for the Schofield Generating Station, West Loch PV, GMS Phase 1, Waiawa UFLS and Waena Switchyard projects effective June 1, 2024 through the RBA rate adjustment.
As of December 31, 2024, the PUC approved four EPRM applications for projects totaling $218.5 million to the extent the project costs are not included in rates. Currently, the Utilities are seeking EPRM recovery for two additional projects with total project costs up to $294.2 million, subject to PUC approval.
Pilot process. As part of the PBR Framework, the PUC approved a pilot process to foster innovation by establishing an expedited implementation process for pilots that tests new technologies, programs, business models, and other arrangements (Pilot Process). Under the Pilot Process, the Utilities submit specific pilot proposals (Pilot Notices) that are within the scope of the approved Workplan to the PUC for their expedited review. The PUC will strive to issue an order addressing a proposed pilot within 45 days of the filing date of a Pilot Notice. If the PUC does not take affirmative action on a Pilot Notice by the end of the 45-day period, the Pilot Notice will be considered approved as submitted. The PUC may modify the pilot as originally proposed, and the Utilities will have 15 days to notify the PUC whether the Utilities accept the modification, propose further modification, or withdraw the Pilot Notice. The PUC may also, where necessary, suspend the Pilot Notice for further investigation.
The approved Pilot Process includes a cost recovery process that generally allows the Utilities to defer and recover total annual expenditures of approved pilot projects net of revenues, subject to an annual cap of $10 million, over 12 months beginning June 1 of the year following pilot implementation through the RBA rate adjustment, although the PUC may determine on a case-by-case basis that a particular project’s deferred costs should be amortized over a period greater than 12 months.
On March 11, 2024, the Utilities filed their annual Pilot Update report covering pilot projects that were active during 2023, including reporting on pilot projects that were initiated prior to the commencement of the Pilot Process. The Pilot Update reported on approximately $3.0 million of 2023 recorded pilot project costs including revenue taxes for the Utilities. The 2023 recorded pilot project costs were included in the Utilities’ proposed adjustments to target revenue in the 2024 spring revenue report filed on March 28, 2024.
On December 4, 2024, the Utilities requested PUC approval to extend the Charge Ready Hawaii and the eBus Make‑Ready Infrastructure pilots beyond their current implementation schedule end dates by approximately 12 months, from December 31, 2025 to December 31, 2026. On February 6, 2025, the PUC approved the pilot extension requests.
Performance incentive mechanisms. The following PIMs and SSMs were approved by the PUC and are applicable for the 2024 evaluation period.

•Service Quality performance incentives (ongoing). 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 remain constant in interim periods, unless otherwise amended by order of the PUC.
•Service Reliability Performance measured by Transmission and Distribution-caused SAIDI and SAIFI (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 prorated by the circuit customer count of Non-Wildfire Risk Circuits divided by the 2023 annual average total system customer count (or maximum penalties of approximately $3.6 million for calendar years 2024 and 2025 - for both indices in total for the three utilities). On December 18, 2024, as clarified on January 15, 2025, the PUC granted the Utilities’ request to suspend the T&D SAIDI and SAIFI PIMs for wildfire risk circuits from January 1, 2024 to December 31, 2025. Circuits not identified as wildfire risk circuits continue to be subject to the existing PIMs and measured effective January 1, 2024. For the 2024 evaluation period, the Utilities accrued $1.0 million in penalties.
•Call Center Performance measured by the percentage of calls answered within 30 seconds. The previous target performance was based on the annual average performance for each utility for the most recent eight quarters with a deadband of 3% above and below the target. On June 24, 2024, the PUC issued an order approving a consolidated target for the Call Center PIM and modifying the target performance based on the average of the Utilities’ performance, weighted by the number of calls for the last eight quarters as of December 31, 2023, to be effective August 1, 2024. The maximum penalty or reward is 8 basis points applied to the common equity share of each respective utility’s approved rate base (or maximum penalties or rewards of approximately $1.4 million - in total for the three utilities). For the 2024 evaluation period, the Utilities did not make any accruals.
•Phase 1 RFP PIM. Procurement of low-cost variable renewable resources through the RFP process in 2018 is measured by comparison of the procurement price to target prices. The first portion of the incentive was earned upon PUC approval of the PPAs. Based on the seven PPAs approved in 2019, the Utilities recognized $1.7 million in 2019 with the remaining award to be recognized in the year following the in-service date of the projects prorated in proportion to the actual amount of energy utilized, which is estimated to occur from 2023 to 2025. Based on the in-service date of two projects, the Utilities earned the second portion of the incentive of approximately $0.1 million (for Hawaiian Electric) in rewards in both 2023 and the first quarter of 2024. In the second quarter of 2024, the Utilities earned the second portion of the incentive of approximately $0.1 million (for Hawaii Electric Light).
•Renewable portfolio standard (RPS) - A PIM that provides a financial reward for accelerating the achievement of RPS goals. The Utilities may earn a reward for the amount of system generation above the interpolated statutory RPS goal at $20/MWh in 2021 and 2022, $15/MWh in 2023, and $10/MWh for the remainder of the MRP. Penalties are already prescribed in the RPS as $20/MWh for failing to meet RPS targets in 2030, 2040 and 2045. The evaluation period commenced on January 1, 2021. For the 2024 evaluation period, the Utilities accrued $1.9 million in rewards.
•Interconnection Approval PIM that provides financial rewards and penalties for interconnection times for DER systems <100 kW in size. The Interconnection Approval PIM extends through December 31, 2024. The Utilities can earn a total annual maximum reward of $3.0 million or a total annual maximum penalty of $0.9 million. For the 2024 evaluation period, the Utilities accrued $2.4 million in rewards.
•Low-to-Moderate Income (LMI) Energy Efficiency PIM that provided financial rewards for collaboration between the Utilities and the third-party Public Benefits Fee Administrator to deliver energy savings for low- and moderate-income customers. The Utilities could earn a total annual maximum reward of $2.0 million. The evaluation period was based on Hawaii Energy’s program year with the initial evaluation year being the period of July 1, 2021 through June 30,
2022 and ended the period ending June 30, 2024. The Utilities earned $0.01 million in rewards for the program period ending June 30, 2023.
•Generation-caused System Average Interruption Duration and Frequency Indexes PIMs to incentivize achievement of generation-based reliability targets, measured by Generation 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 3 basis points applied to the common equity share of each respective utility’s approved rate base (or maximum penalties of approximately $1 million - for both indices in total for the three utilities). For the 2024 evaluation period, the Utilities accrued $0.1 million in penalties (for Hawaii Electric Light).
•An interconnection requirements study PIM to incentivize the timely completion of the IRS process for large-scale renewable energy projects (rewards and penalties) measured by the number of months between final model checkout and delivery of IRS results to the developer. Target performance is ten months with an asymmetrical deadband of two-months for penalties and no deadband for rewards. The maximum penalty and reward will depend on the specifics of the upcoming procurement. For the 2024 evaluation period, the Utilities did not make any accruals.
•A CSSM to incentivize cost control over the Utilities’ fuel, purchased power, and EPRM/MPIR costs (collectively, non-ARA costs). This is a reward only incentive where the Utilities retain 20% share of savings when non-ARA costs in a performance year are lower than target year non-ARA costs, which are adjusted for changes in fuel prices, inflation, and system generation from a base year (calendar year 2021). The CSSM does not have a potential penalty and does not have a cap for maximum reward. For the 2024 evaluation period, the Utilities accrued $2.8 million in rewards (for Hawaii Electric Light).
For the 2024 evaluation period, the Utilities accrued $6.2 million ($2.5 million for Hawaiian Electric, $3.4 million for Hawaii Electric Light and $0.3 million for Maui Electric) in rewards net of penalties. The net rewards related to 2024 will be reflected in the 2025 PIMS annual report and 2025 spring revenue report filings with the exception of the Phase 1 RFP PIM for Hawaiian Electric and Hawaii Electric Light, which were reflected in the 2024 spring revenue report and 2024 fall revenue report filings, respectively.
Annual review cycle. PBR D&O established an annual review cycle for revenue adjustments under the PBR Framework, including the biannual submission of the revenue reports. On December 17,2024, the PUC approved the Utilities’ 2024 fall revenue report filed on October 28, 2024. The filing reflected ARA revenues for 2025 to be collected from January 1 through December 31, 2025, as follows:
(in millions)Hawaiian ElectricHawaii Electric LightMaui ElectricTotal
2025 ARA revenues
$15.4 $3.8 $3.7 $22.9 
Management Audit savings commitment(4.6)(1.0)(1.0)(6.6)
Net 2025 ARA revenues
$10.8 $2.8 $2.7 $16.3 
The net incremental amounts between the 2024 spring and fall revenue reports are shown in the following table. The amounts are to be collected (refunded) from January 1 through December 31, 2025 under the RBA rate tariffs, which were included in the 2024 fall revenue report filing.
(in millions)Hawaiian ElectricHawaii Electric LightMaui ElectricTotal
2025 ARA revenues
$15.4 $3.8 $3.7 $22.9 
Annual change in accrued RBA balance through September 30, 2024 (and associated revenue taxes)
(7.0)(1.3)6.4 (1.9)
Incremental Performance Incentive Mechanisms (net)
(0.1)0.1 — — 
Net incremental amount to be collected under the RBA rate tariffs$8.3 $2.6 $10.1 $21.0 
Consolidating financial information. Consolidating financial information for Hawaiian Electric and its subsidiaries are presented for the years ended December 31, 2024, 2023 and 2022, and as of December 31, 2024 and 2023.
On March 21, 2024, Hawaiian Electric formed HE AR INTER LLC and its direct consolidated subsidiary, HE BRWR LLC, which were established to pursue financing through a secured asset-based (accounts receivable) credit facility.
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 and (b) under their respective private placement note agreements and the Hawaii Electric Light notes and Maui Electric notes issued thereunder. 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.
Consolidating statement of income
Year ended December 31, 2024
(in thousands)Hawaiian ElectricHawaii Electric LightMaui Electric
Other subsidiaries
Consolidating adjustments
Hawaiian Electric
Consolidated
Revenues$2,283,148 483,715 440,432 5,570 (6,165)
[1]
$3,206,700 
Expenses
Fuel oil790,004 121,719 166,322 — — 1,078,045 
Purchased power517,583 132,086 53,702 — — 703,371 
Other operation and maintenance390,111 102,883 121,693 1,150 (6,165)[1]609,672 
Wildfire tort-related claims, net (Note 2)
1,500,000 187,500 187,500 — — 1,875,000 
Depreciation167,909 43,855 39,378 — — 251,142 
Taxes, other than income taxes215,137 45,025 41,166 — — 301,328 
   Total expenses3,580,744 633,068 609,761 1,150 (6,165)4,818,558 
Operating income (loss)
(1,297,596)(149,353)(169,329)4,420 — (1,611,858)
Allowance for equity funds used during construction10,853 1,189 1,744 — — 13,786 
Equity in earnings of subsidiaries(248,004)— — — 248,004 [2]— 
Retirement defined benefits credit (expense)—other than service costs3,574 665 (102)— — 4,137 
Interest expense and other charges, net(59,906)(11,422)(16,688)— 5,934 [1](82,082)
Allowance for borrowed funds used during construction4,300 355 815 — — 5,470 
Interest Income
11,136 1,062 369 — (5,934)
[1]
6,633 
Income (loss) before income taxes
(1,575,643)(157,504)(183,191)4,420 248,004 (1,663,914)
Income tax expense (benefit)
(350,361)(41,624)(48,700)1,138 — (439,547)
Net income (loss)
(1,225,282)(115,880)(134,491)3,282 248,004 (1,224,367)
Preferred stock dividends of subsidiaries— 534 381 — — 915 
Net income (loss) attributable to Hawaiian Electric
(1,225,282)(116,414)(134,872)3,282 248,004 (1,225,282)
Preferred stock dividends of Hawaiian Electric
1,080 — — — — 1,080 
Net income (loss) for common stock
$(1,226,362)(116,414)(134,872)3,282 248,004 $(1,226,362)

Consolidating statement of comprehensive income
Year ended December 31, 2024
(in thousands)Hawaiian ElectricHawaii Electric LightMaui ElectricOther subsidiariesConsolidating
adjustments		Hawaiian Electric
Consolidated
Net income (loss) for common stock
$(1,226,362)(116,414)(134,872)3,282 248,004 $(1,226,362)
Other comprehensive loss, net of taxes:
Retirement benefit plans:     
Net gains arising during the period, net of taxes65,680 8,108 7,342 — (15,450)[1]65,680 
Adjustment for amortization of net gains recognized during the period in net periodic benefit cost, net of taxes
(2,035)(159)(243)— 402 [1](2,035)
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes(63,708)(7,895)(7,076)— 14,971 [1](63,708)
Other comprehensive loss, net of taxes
(63)54 23 — (77)(63)
Comprehensive income (loss) attributable to common shareholder
$(1,226,425)(116,360)(134,849)3,282 247,927 $(1,226,425)
Consolidating statement of income
Year ended December 31, 2023
(in thousands)Hawaiian ElectricHawaii Electric LightMaui ElectricConsolidating adjustments
Hawaiian Electric
Consolidated
Revenues$2,356,478 464,161 448,882 — $3,269,521 
Expenses
Fuel oil913,801 105,009 192,610 — 1,211,420 
Purchased power486,067 142,837 42,865 — 671,769 
Other operation and maintenance343,462 85,261 104,834 — 533,557 
Depreciation164,150 42,541 37,014 — 243,705 
Taxes, other than income taxes221,664 43,095 42,153 — 306,912 
   Total expenses2,129,144 418,743 419,476 — 2,967,363 
Operating income227,334 45,418 29,406 — 302,158 
Allowance for equity funds used during construction
11,721 1,411 2,032 — 15,164 
Equity in earnings of subsidiaries44,809 — — (44,809)[2]— 
Retirement defined benefits credit (expense)—other than service costs3,735 667 (99)— 4,303 
Interest expense and other charges, net(62,362)(11,650)(12,933)805 [1](86,140)
Allowance for borrowed funds used during construction4,081 451 669 — 5,201 
Interest Income
5,113 1,071 1,075 (805)[1]6,454 
Income before income taxes234,431 37,368 20,150 (44,809)247,140 
Income taxes39,399 8,327 3,467 — 51,193 
Net income195,032 29,041 16,683 (44,809)195,947 
Preferred stock dividends of subsidiaries— 534 381 — 915 
Net income attributable to Hawaiian Electric195,032 28,507 16,302 (44,809)195,032 
Preferred stock dividends of Hawaiian Electric1,080 — — — 1,080 
Net income for common stock$193,952 28,507 16,302 (44,809)$193,952 

Consolidating statement of comprehensive income
Year ended December 31, 2023
(in thousands)Hawaiian ElectricHawaii Electric LightMaui ElectricConsolidating adjustmentsHawaiian Electric
Consolidated
Net income for common stock$193,952 28,507 16,302 (44,809)$193,952 
Other comprehensive income (loss), net of taxes:
Retirement benefit plans:      
Net gains arising during the period, net of taxes
10,175 961 1,275 (2,236)[1]10,175 
Adjustment for amortization of prior service credit and net gains recognized during the period in net periodic benefit cost, net of taxes
(1,983)(221)(266)487 [1](1,983)
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes
(8,204)(752)(978)1,730 [1](8,204)
Other comprehensive income (loss), net of taxes
(12)(12)31 (19)(12)
Comprehensive income attributable to common shareholder
$193,940 28,495 16,333 (44,828)$193,940 
Consolidating statement of income
Year ended December 31, 2022
(in thousands)Hawaiian ElectricHawaii Electric LightMaui ElectricConsolidating adjustments
Hawaiian Electric
Consolidated
Revenues$2,452,969 485,590 470,355 (327)[1]$3,408,587 
Expenses
Fuel oil917,801 133,238 214,575 — 1,265,614 
Purchased power601,235 143,636 48,713 — 793,584 
Other operation and maintenance326,785 85,110 85,706 — 497,601 
Depreciation158,725 41,404 35,295 — 235,424 
Taxes, other than income taxes228,843 44,685 43,645 — 317,173 
   Total expenses2,233,389 448,073 427,934 — 3,109,396 
Operating income 219,580 37,517 42,421 (327)299,191 
Allowance for equity funds used during construction
8,464 898 1,212 — 10,574 
Equity in earnings of subsidiaries47,493 — — (47,493)[2]— 
Retirement defined benefits credit (expense)—other than service costs3,296 666 (127)— 3,835 
Interest expense and other charges, net(55,260)(10,659)(10,824)327 [1](76,416)
Allowance for borrowed funds used during construction
2,769 277 370 — 3,416 
Income before income taxes226,342 28,699 33,052 (47,493)240,600 
Income taxes36,333 6,349 6,994 — 49,676 
Net income190,009 22,350 26,058 (47,493)190,924 
Preferred stock dividends of subsidiaries— 534 381 — 915 
Net income attributable to Hawaiian Electric
190,009 21,816 25,677 (47,493)190,009 
Preferred stock dividends of Hawaiian Electric1,080 — — — 1,080 
Net income for common stock$188,929 21,816 25,677 (47,493)$188,929 

Consolidating statement of comprehensive income
Year ended December 31, 2022
(in thousands)Hawaiian ElectricHawaii Electric LightMaui ElectricConsolidating adjustmentsHawaiian Electric
Consolidated
Net income for common stock$188,929 21,816 25,677 (47,493)$188,929 
Other comprehensive income, net of taxes:
Retirement benefit plans:      
Net gains arising during the period, net of taxes
187,193 44,411 44,386 (88,797)[1]187,193 
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes18,884 2,811 2,584 (5,395)[1]18,884 
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes
(199,936)(46,841)(46,694)93,535 [1](199,936)
Other comprehensive income, net of tax benefits
6,141 381 276 (657)6,141 
Comprehensive income attributable to common shareholder
$195,070 22,197 25,953 (48,150)$195,070 
Consolidating balance sheet
December 31, 2024
(in thousands)Hawaiian ElectricHawaii Electric LightMaui Electric
Other subsidiaries
Consolidating
adjustments		Hawaiian Electric
Consolidated
Assets      
Property, plant and equipment
Utility property, plant and equipment      
Land$42,860 5,645 3,514 — — $52,019 
Plant and equipment5,502,198 1,501,947 1,417,356 — — 8,421,501 
Right-of-use assets - finance lease
360,270 36,074 50,757 — — 447,101 
Less accumulated depreciation(2,029,719)(691,161)(605,744)— — (3,326,624)
Construction in progress282,150 31,341 52,218 — — 365,709 
Utility property, plant and equipment, net4,157,759 883,846 918,101 — — 5,959,706 
Nonutility property, plant and equipment, less accumulated depreciation
1,145 115 1,532 — — 2,792 
Total property, plant and equipment, net4,158,904 883,961 919,633 — — 5,962,498 
Investment in wholly-owned subsidiaries, at equity
680,414 — — — (680,414)[2]— 
Current assets       
Cash and cash equivalents118,367 31,534 16,456 17,791 —  184,148 
Advances to affiliates62,200 — — — (62,200)[1]— 
Customer accounts receivable, net
19,050 7,245 8,941 164,662 —  199,898 
Accrued unbilled revenues, net12,738 4,046 1,890 160,047 —  178,721 
Other accounts receivable, net209,752 58,366 51,465 — (249,946)[1]69,637 
Fuel oil stock, at average cost70,800 13,764 14,339 — — 98,903 
Materials and supplies, at average cost
69,602 15,506 33,358 — — 118,466 
Prepayments and other110,516 16,662 30,747 — (6,705)[1]151,220 
Regulatory assets36,520 8,211 9,164 — — 53,895 
Total current assets709,545 155,334 166,360 342,500 (318,851)1,054,888 
Other long-term assets      
Operating lease right-of-use assets29,868 22,672 6,741 — — 59,281 
Regulatory assets172,257 18,875 36,292 — — 227,424 
Defined benefit pension and other postretirement benefit plans asset
66,292 30,397 24,128 — (11,998)
[1]
108,819 
Other194,006 18,612 21,702 — (33,626)[1]200,694 
Total other long-term assets462,423 90,556 88,863 — (45,624)596,218 
Total assets
$6,011,286 1,129,851 1,174,856 342,500 (1,044,889)$7,613,604 
(continued)
Consolidating balance sheet (continued)
December 31, 2024
(in thousands)Hawaiian ElectricHawaii Electric LightMaui Electric
Other subsidiaries
Consolidating
adjustments		Hawaiian Electric
Consolidated
Capitalization and liabilities      
Capitalization      
Common stock equity$1,156,955 243,964 282,876 153,574 (680,414)[2]$1,156,955 
Cumulative preferred stock–not subject to mandatory redemption
22,293 7,000 5,000 — —  34,293 
Long-term debt, net1,353,173 244,466 256,575 — —  1,854,214 
Total capitalization2,532,421 495,430 544,451 153,574 (680,414)3,045,462 
Current liabilities       
Current portion of operating lease liabilities4,430 7,802 2,970 — — 15,202 
Current portion of long-term debt, net40,000 5,000 2,000 — —  47,000 
Short-term borrowings-non-affiliate48,623 — — — — 48,623 
Short-term borrowings-affiliate— — 62,200 — (62,200)[1]— 
Accounts payable137,837 27,077 32,066 — —  196,980 
Interest and preferred dividends payable
15,994 3,191 2,701 — (350)[1]21,536 
Taxes accrued, including revenue taxes197,768 42,692 37,108 1,138 (6,705)[1]272,001 
Regulatory liabilities11,701 10,039 4,828 — — 26,568 
Wildfire tort-related claims (Note 2)
383,000 47,875 47,875 — — 478,750 
Other103,415 35,492 43,913 187,788 (249,597)[1]121,011 
Total current liabilities942,768 179,168 235,661 188,926 (318,852)1,227,671 
Deferred credits and other liabilities      
Operating lease liabilities29,830 15,230 4,075 — — 49,135 
Finance lease liabilities341,364 34,370 49,891 — — 425,625 
Deferred income taxes— 5,368 28,257 — (33,625)[1]— 
Regulatory liabilities864,259 222,834 130,422 — — 1,217,515 
Unamortized tax credits54,950 10,757 10,969 — —  76,676 
Defined benefit pension plan liability
18,301 125 — — (11,998)[1]6,428 
Wildfire tort-related claims (Note 2)
1,149,000 143,625 143,625 — — 1,436,250 
Other78,393 22,944 27,505 — — 
[1]
128,842 
Total deferred credits and other liabilities
2,536,097 455,253 394,744 — (45,623) 3,340,471 
Total capitalization and liabilities$6,011,286 1,129,851 1,174,856 342,500 (1,044,889)$7,613,604 
Consolidating balance sheet
December 31, 2023
(in thousands)Hawaiian ElectricHawaii Electric LightMaui Electric
Other subsidiary
Consolidating
adjustments		Hawaiian Electric
Consolidated
Assets       
Property, plant and equipment
Utility property, plant and equipment       
Land$42,859 5,645 3,594 — — $52,098 
Plant and equipment5,398,281 1,459,639 1,374,890 — — 8,232,810 
Finance lease right-of-use assets306,099 36,075 — — — 342,174 
Less accumulated depreciation(1,925,660)(666,581)(605,273)— — (3,197,514)
Construction in progress247,836 33,488 38,899 — — 320,223 
Utility property, plant and equipment, net4,069,415 868,266 812,110 — — 5,749,791 
Nonutility property, plant and equipment, less accumulated depreciation
5,295 115 1,532 — — 6,942 
Total property, plant and equipment, net4,074,710 868,381 813,642 — — 5,756,733 
Investment in wholly-owned subsidiaries, at equity
722,211 — — — (722,211)[2]— 
Current assets 
Cash and cash equivalents89,755 10,658 5,587 77 —  106,077 
Restricted cash2,000 — — — — 2,000 
Advances to affiliates70,500 — — — (70,500)[1]— 
Customer accounts receivable, net
172,747 38,216 33,346 — —  244,309 
Accrued unbilled revenues, net136,367 25,102 24,175 — —  185,644 
Other accounts receivable, net143,160 13,318 32,521 — (77,480)[1]111,519 
Fuel oil stock, at average cost108,228 17,968 22,041 — — 148,237 
Materials and supplies, at average cost
64,334 14,397 35,702 — — 114,433 
Prepayments and other40,767 7,724 11,638 — (1,638)[1]58,491 
Regulatory assets58,920 5,771 3,762 — — 68,453 
Total current assets886,778 133,154 168,772 77 (149,618)1,039,163 
Other long-term assets
Operating lease right-of-use assets34,856 27,470 9,551 — — 71,877 
Regulatory assets189,417 13,575 23,359 — — 226,351 
Other postretirement benefit plan asset
50,743 17,827 13,169 — (14,171)[1]67,568 
Other83,290 18,612 19,960 — — 121,862 
Total other long-term assets358,306 77,484 66,039 — (14,171)487,658 
Total assets
$6,042,005 1,079,019 1,048,453 77 (886,000)$7,283,554 
Consolidating balance sheet (continued)
December 31, 2023
(in thousands)Hawaiian ElectricHawaii Electric LightMaui Electric
Other subsidiary
Consolidating
adjustments		Hawaiian Electric
Consolidated
Capitalization and liabilities      
Capitalization      
Common stock equity$2,409,110 359,790 362,344 77 (722,211)[2]$2,409,110 
Cumulative preferred stock–not subject to mandatory redemption
22,293 7,000 5,000 — —  34,293 
Long-term debt, net1,426,516 249,339 258,422 — —  1,934,277 
Total capitalization3,857,919 616,129 625,766 77 (722,211)4,377,680 
Current liabilities       
Current portion of operating lease liabilities6,788 7,025 2,804 — — 16,617 
Short-term borrowings-affiliate— — 70,500 — (70,500)[1]— 
Accounts payable136,102 29,418 25,520 — —  191,040 
Interest and preferred dividends payable
17,085 3,098 3,074 — (375)[1]22,882 
Taxes accrued, including revenue taxes211,840 43,932 37,808 — (1,638)[1]291,942 
Regulatory liabilities20,013 8,508 8,038 — — 36,559 
Wildfire tort-related claims (Note 2)
75,000 — — — — 75,000 
Other90,131 33,240 50,170 — (77,105)[1]96,436 
Total current liabilities556,959 125,221 197,914 — (149,618)730,476 
Deferred credits and other liabilities      
Operating lease liabilities34,262 20,792 7,044 — — 62,098 
Finance lease liabilities295,935 35,043 — — — 330,978 
Deferred income taxes280,029 51,661 67,311 — — 399,001 
Regulatory liabilities803,404 199,173 111,554 — — 1,114,131 
Unamortized tax credits61,130 11,650 11,532 — — 84,312 
Defined benefit pension plan liability
74,842 — — — (14,171)[1]60,671 
Other77,525 19,350 27,332 — — 124,207 
Total deferred credits and other liabilities
1,627,127 337,669 224,773 — (14,171)2,175,398 
Total capitalization and liabilities$6,042,005 1,079,019 1,048,453 77 (886,000)$7,283,554 
Consolidating statements of changes in common stock equity
(in thousands)Hawaiian ElectricHawaii Electric LightMaui Electric
Other subsidiaries
Consolidating
adjustments		Hawaiian Electric
Consolidated
Balance, December 31, 2021$2,261,899 332,900 343,260 77 (676,237)$2,261,899 
Net income for common stock188,929 21,816 25,677 — (47,493)188,929 
Other comprehensive income, net of taxes
6,141 381 276 — (657)6,141 
Issuance of common stock, net of expenses13,101 6,023 3,023 — (9,046)13,101 
Common stock dividends(125,900)(16,400)(15,200)— 31,600 (125,900)
Balance, December 31, 20222,344,170 344,720 357,036 77 (701,833)2,344,170 
Net income for common stock193,952 28,507 16,302 — (44,809)193,952 
Other comprehensive income (loss), net of taxes
(12)(12)31 — (19)(12)
Common stock dividends(129,000)(13,425)(11,025)— 24,450 (129,000)
Balance, December 31, 20232,409,110 359,790 362,344 77 (722,211)2,409,110 
Net income (loss) for common stock
(1,226,362)(116,414)(134,872)3,282 248,004 (1,226,362)
Other comprehensive income (loss), net of taxes
(63)54 23 — (77)(63)
Issuance of common stock, net of expenses
— — 55,000 150,215 (205,215)— 
Common stock dividends(26,000)— — — — (26,000)
Additional paid-in capital
270 534 381 — (915)270 
Balance, December 31, 2024$1,156,955 243,964 282,876 153,574 (680,414)$1,156,955 
Consolidating statement of cash flows
Year ended December 31, 2024
(in thousands)Hawaiian ElectricHawaii Electric LightMaui Electric
Other subsidiaries
Consolidating
adjustments		Hawaiian Electric
 Consolidated
Cash flows from operating activities       
Net income (loss)
$(1,225,282)(115,880)(134,491)3,282 248,004 [2]$(1,224,367)
Adjustments to reconcile net income to net cash provided by operating activities       
Equity in earnings of subsidiaries248,004 — — — (248,004)[2]— 
Depreciation of property, plant and equipment167,909 43,855 39,378 — —  251,142 
Other amortization 23,606 4,958 3,264 — —  31,828 
Deferred income tax benefit
(393,025)(47,550)(41,049)— — (481,624)
Gain/Loss on sale of receivables to affiliate
4,079 821 670 (5,570)— — 
State refundable credit(7,914)(1,848)(2,152)— — (11,914)
Bad debt expense2,838 476 1,406 — — 4,720 
Allowance for equity funds used during construction(10,853)(1,189)(1,744)— —  (13,786)
Other(6,270)(50)9 — — (6,311)
Changes in assets and liabilities:   
Decrease (increase) in accounts receivable
22,897 (13,175)1,570 (95,382)172,466 [1]88,376 
Decrease (increase) in accrued unbilled revenues
57,281 20,989 22,633 (93,342)—  7,561 
Decrease in fuel oil stock
37,427 4,205 7,702 — —  49,334 
Decrease (increase) in materials and supplies
(5,269)(1,109)2,345 — —  (4,033)
Increase in regulatory assets
(4,608)(5,346)(12,789)— —  (22,743)
Increase in regulatory liabilities
38,413 6,597 3,423 — — 48,433 
Increase (decrease) in accounts payable
9,879 (1,687)1,452 — —  9,644 
Change in prepaid and accrued income taxes, tax credits and revenue taxes(14,192)(2,325)(8,614)1,138 (2,549)
[1]
(26,542)
Change in defined benefit pension and other postretirement benefit plans asset/liability
(6,334)(1,521)(1,363)— — (9,218)
Increase in wildfire tort-related claims
1,457,000 191,500 191,500 — — 1,840,000 
Change in other assets and liabilities(52,774)(4,035)(23,280)187,788 (172,466)[1](64,767)
Net cash provided by (used in) operating activities
342,812 77,686 49,870 (2,086)(2,549)465,733 
Cash flows from investing activities       
Capital expenditures (197,142)(51,209)(81,128)— — (329,479)
Advances to affiliates
(46,700)— — — 46,700 [1]— 
Other (10,169)679 (1,011)— 22,349 
[1][2]
11,848 
Net cash used in investing activities(254,011)(50,530)(82,139)— 69,049 (317,631)
Cash flows from financing activities       
Common stock dividends(26,000)— — — — 

(26,000)
Preferred stock dividends of Hawaiian Electric and subsidiaries(1,995)— — — —  (1,995)
Proceeds from issuance of common stock/capital contribution from parent
270 — — 19,800 (19,800)
[2]
270 
Repayment of long-term debt and funds transferred for repayment of long-term debt
(74,000)(5,000)(2,000)— — (81,000)
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less— — 46,700 — (46,700)[1]— 
Payments of obligations under finance leases(3,487)(632)— — — (4,119)
Proceeds from issuance of short-term debt50,000 — — — — 50,000 
Other(6,977)(648)(1,562)— — (9,187)
Net cash provided by (used in) financing activities(62,189)(6,280)43,138 19,800 (66,500) (72,031)
Net increase in cash and cash equivalents
26,612 20,876 10,869 17,714 —  76,071 
Cash, cash equivalents and restricted cash, January 191,755 10,658 5,587 77 —  108,077 
Cash and cash equivalents, December 31$118,367 31,534 16,456 17,791 — $184,148 
Consolidating statement of cash flows
Year ended December 31, 2023
(in thousands)Hawaiian ElectricHawaii Electric LightMaui Electric
Other subsidiary
Consolidating
adjustments		Hawaiian Electric
Consolidated
Cash flows from operating activities       
Net income $195,032 29,041 16,683 — (44,809)[2]$195,947 
Adjustments to reconcile net income to net cash provided by operating activities
       
Equity in earnings of subsidiaries
(44,809)— — — 44,809 [2]— 
Common stock dividends received from subsidiaries
24,450 — — — (24,450)[2]— 
Depreciation of property, plant and equipment
164,150 42,541 37,014 — —  243,705 
Other amortization17,692 5,003 3,795 — — 26,490 
Deferred income tax expense (benefit)
(851)(296)2,586 — — 1,439 
State refundable credit
(7,577)(1,782)(1,966)— — (11,325)
Bad debt expense5,565 1,353 1,243 — — 8,161 
Allowance for equity funds used during construction
(11,721)(1,411)(2,032)— —  (15,164)
Other
380 (46)126 — — 460 
Changes in assets and liabilities:   
Increase in accounts receivable(83,401)(7,398)(29,301)— 55,096 [1](65,004)
Decrease (increase) in accrued unbilled revenues
8 (1,308)(1,748)— —  (3,048)
Decrease (increase) in fuel oil stock
45,114 (1,004)(817)— —  43,293 
Increase in materials and supplies
(16,204)(4,614)(14,047)— —  (34,865)
Decrease (increase) in regulatory assets
(6,616)5,501 (9,498)— —  (10,613)
Increase (decrease) in regulatory liabilities
48,833 (1,176)6,813 — — 54,470 
Increase in accounts payable
13,988 5,998 468 — —  20,454 
Change in prepaid and accrued income taxes, tax credits and revenue taxes
4,314 2,407 (4,843)— — 1,878 
Change in defined benefit pension and other postretirement benefit plans asset/liability
(5,653)(1,348)(1,185)— — (8,186)
Increase in wildfire tort-related claims
75,000 — — — — 75,000 
Change in other assets and liabilities
(12,990)2,056 17,305 — (55,096)[1](48,725)
Net cash provided by operating activities
404,704 73,517 20,596 — (24,450) 474,367 
Cash flows from investing activities
       
Capital expenditures (276,600)(63,889)(98,286)— —  (438,775)
Advances from (to) affiliates
(70,500)4,500 21,700 — 44,300 [1]— 
Other 4,118 932 1,126 — — 6,176 
Net cash used in investing activities(342,982)(58,457)(75,460)— 44,300  (432,599)
Cash flows from financing activities       
Common stock dividends(129,000)(13,425)(11,025)— 24,450 [2](129,000)
Preferred stock dividends of Hawaiian Electric and subsidiaries
(1,080)(534)(381)— —  (1,995)
Proceeds from issuance of long-term debt
300,000 25,000 25,000 — — 350,000 
Repayment of long-term debt(50,000)(20,000)(30,000)— — (100,000)
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less(114,167)— 70,500 — (44,300)[1](87,967)
Payments of obligations under finance leases(2,728)(400)— — — (3,128)
Other(571)(135)(137)— —  (843)
Net cash provided by (used in) financing activities
2,454 (9,494)53,957 — (19,850) 27,067 
Net increase (decrease) in cash, cash equivalents and restricted cash
64,176 5,566 (907)— —  68,835 
Cash, cash equivalents and restricted cash, January 1
27,579 5,092 6,494 77 —  39,242 
Cash, cash equivalents and restricted cash, December 31
91,755 10,658 5,587 77 —  108,077 
Less: Restricted cash
(2,000)— — — — (2,000)
Cash and cash equivalents, December 31
$89,755 10,658 5,587 77 — $106,077 
Consolidating statement of cash flows
Year ended December 31, 2022
(in thousands)Hawaiian ElectricHawaii Electric LightMaui Electric
Other subsidiary
Consolidating
adjustments		Hawaiian Electric
Consolidated
Cash flows from operating activities       
Net income $190,009 22,350 26,058 — (47,493)[2]$190,924 
Adjustments to reconcile net income to net cash provided by operating activities
       
Equity in earnings of subsidiaries
(47,493)— — — 47,493 [2]— 
Common stock dividends received from subsidiaries
31,600 — — — (31,600)[2]— 
Depreciation of property, plant and equipment
158,725 41,404 35,295 — —  235,424 
Other amortization16,708 4,996 3,616 — —  25,320 
Deferred income taxes
(33,648)(4,040)(3,727)— — (41,415)
State refundable credit
(7,375)(1,734)(1,890)— — (10,999)
Bad debt expense4,175 1,073 779 — — 6,027 
Allowance for equity funds used during construction
(8,464)(898)(1,212)— —  (10,574)
Other
(65)(50)(24)— — (139)
Changes in assets and liabilities:    
Increase in accounts receivable(74,067)(11,644)(10,680)— 4,649 [1](91,742)
Increase in accrued unbilled revenues(43,972)(4,289)(5,762)— —  (54,023)
Increase in fuel oil stock(82,158)(4,150)(1,144)— —  (87,452)
Increase in materials and supplies
(6,124)(56)(1,511)— —  (7,691)
Decrease in regulatory assets
28,076 1,546 4,978 — —  34,600 
Increase in regulatory liabilities
28,621 7,977 8,290 — 44,888 
Increase in accounts payable
18,657 3,294 404 — —  22,355 
Change in prepaid and accrued income taxes, tax credits and revenue taxes
77,903 11,117 14,178 — — 103,198 
Decrease in defined benefit pension and other postretirement benefit plans liability(3,545)(626)(657)— — (4,828)
Change in other assets and liabilities
(17,884)213 (3,623)— (4,649)[1](25,943)
Net cash provided by operating activities
229,679 66,483 63,368 — (31,600) 327,930 
Cash flows from investing activities
       
Capital expenditures (223,223)(49,004)(57,230)— —  (329,457)
Advances from (to) affiliates
1,000 (4,500)(21,700)— 25,200 [1]— 
Other (5,687)760 1,253 — 9,046 [1][2]5,372 
Net cash used in investing activities(227,910)(52,744)(77,677)— 34,246  (324,085)
Cash flows from financing activities       
Common stock dividends(125,900)(16,400)(15,200)— 31,600 [2](125,900)
Preferred stock dividends of Hawaiian Electric and subsidiaries
(1,080)(534)(381)— —  (1,995)
Proceeds from the issuance of common stock
13,101 6,023 3,023 — (9,046)[2]13,101 
Proceeds from the issuance of long-term debt
40,000 10,000 10,000 — — 60,000 
Repayment of long-term debt
(40,000)(12,000)— — — (52,000)
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less114,167 (1,000)— — (25,200)[1]87,967 
Payments of obligations under finance leases
(670)— — — — (670)
Other(241)(62)(61)— — (364)
Net cash used in financing activities
(623)(13,973)(2,619)— (2,646) (19,861)
Net increase (decrease) in cash and cash equivalents
1,146 (234)(16,928)— —  (16,016)
Cash and cash equivalents, January 1
26,433 5,326 23,422 77 —  55,258 
Cash and cash equivalents, December 31
$27,579 5,092 6,494 77 — $39,242 
Explanation of consolidating adjustments on consolidating schedules:
[1] Eliminations of intercompany receivables and payables and other intercompany transactions
[2] Elimination of investment in subsidiaries, carried at equity