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Consolidating financial information - HECO (Hawaiian Electric Company, Inc. and Subsidiaries)

6 Months Ended

Jun. 30, 2012

Hawaiian Electric Company, Inc. and Subsidiaries

10 · Consolidating financial information

HECO is not required to provide separate financial statements or other disclosures concerning HELCO and MECO to holders of the 2004 Debentures issued by HELCO and MECO to Trust III since all of their voting capital stock is owned, and their obligations with respect to these securities have been fully and unconditionally guaranteed, on a subordinated basis, by HECO. Consolidating information is provided below for these and other HECO subsidiaries for the periods ended and as of the dates indicated.

HECO also unconditionally guarantees HELCO’s and MECO’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 HELCO and MECO and (b) relating to the trust preferred securities of Trust III (see Note 2 above). HECO is also obligated, after the satisfaction of its obligations on its own preferred stock, to make dividend, redemption and liquidation payments on HELCO’s and MECO’s preferred stock if the respective subsidiary is unable to make such payments.

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Statement of Income (Loss) (unaudited)

Three months ended June 30, 2012

(in thousands)	HECO			HELCO		MECO		RHI	UBC		Reclassifications and eliminations		HECO Consolidated
Operating revenues	$	567,527		111,741		108,417		—	—		—		$	787,685
Operating expenses
Fuel oil	241,393			30,616		59,055		—	—		—		331,064
Purchased power	141,136			37,395		9,821		—	—		—		188,352
Other operation	44,621			9,948		9,947		—	—		—		64,516
Maintenance	20,542			4,885		5,808		—	—		—		31,235
Depreciation	22,737			8,301		5,095		—	—		—		36,133
Taxes, other than income taxes	55,440			10,423		10,441		—	—		—		76,304
Income taxes	13,361			2,831		2,382		—	—		—		18,574
Total operating expenses	539,230			104,399		102,549		—	—		—		746,178
Operating income	28,297			7,342		5,868		—	—		—		41,507
Other income (loss)
Allowance for equity funds used during construction	1,654			160		183		—	—		—		1,997
Equity in earnings of subsidiaries	8,250			—		—		—	—		(8,250	)	—
Other, net	1,137			99		146		—	(1	)	(18	)	1,363
Total other income (loss)	11,041			259		329		—	(1	)	(8,268	)	3,360
Interest and other charges
Interest on long-term debt	10,190			2,913		2,220		—	—		—		15,323
Amortization of net bond premium and expense	429			108		124		—	—		—		661
Other interest charges	(167		)	20		66		—	—		(18	)	(99		)
Allowance for borrowed funds used during construction	(760		)	(64	)	(69	)	—	—		—		(893		)
Total interest and other charges	9,692			2,977		2,341		—	—		(18	)	14,992
Net income (loss)	29,646			4,624		3,856		—	(1	)	(8,250	)	29,875
Preferred stock dividend of subsidiaries	—			133		96		—	—		—		229
Net income (loss) attributable to HECO	29,646			4,491		3,760		—	(1	)	(8,250	)	29,646
Preferred stock dividends of HECO	270			—		—		—	—		—		270
Net income (loss) for common stock	$	29,376		4,491		3,760		—	(1	)	(8,250	)	$	29,376

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Statement of Comprehensive Income (unaudited)

Three months ended June 30, 2012

(in thousands)	HECO			HELCO		MECO		RHI	UBC		Reclassifications and eliminations		HECO Consolidated
Net income (loss) for common stock	$	29,376		4,491		3,760		—	(1	)	(8,250	)	$	29,376
Other comprehensive income (loss), net of taxes:
Retirement benefit plans:
Less: amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, net of tax benefits	3,364			518		412		—	—		(930	)	3,364
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(3,289		)	(511	)	(406	)	—	—		917		(3,289		)
Other comprehensive income (loss), net of taxes	75			7		6		—	—		(13	)	75
Comprehensive income (loss) attributable to common shareholder	$	29,451		4,498		3,766		—	(1	)	(8,263	)	$	29,451

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Statement of Income (Loss) (unaudited)

Three months ended June 30, 2011

(in thousands)	HECO			HELCO		MECO		RHI	UBC		Reclassifications and eliminations		HECO Consolidated
Operating revenues	$	510,653		110,595		106,404		—	—		—		$	727,652
Operating expenses
Fuel oil	220,231			32,123		59,787		—	—		—		312,141
Purchased power	131,921			32,242		7,574		—	—		—		171,737
Other operation	48,396			9,524		9,468		—	—		—		67,388
Maintenance	22,077			4,297		4,902		—	—		—		31,276
Depreciation	22,885			8,148		5,225		—	—		—		36,258
Taxes, other than income taxes	47,108			10,163		9,881		—	—		—		67,152
Income taxes	3,640			4,725		2,795		—	—		—		11,160
Total operating expenses	496,258			101,222		99,632		—	—		—		697,112
Operating income	14,395			9,373		6,772		—	—		—		30,540
Other income (loss)
Allowance for equity funds used during construction	974			233		110		—	—		—		1,317
Equity in earnings of subsidiaries	10,963			—		—		—	—		(10,963	)	—
Other, net	626			214		62		—	(1	)	(3	)	898
Total other income (loss)	12,563			447		172		—	(1	)	(10,966	)	2,215
Interest and other charges
Interest on long-term debt	9,131			2,984		2,268		—	—		—		14,383
Amortization of net bond premium and expense	503			137		126		—	—		—		766
Other interest charges	442			93		104		—	—		(3	)	636
Allowance for borrowed funds used during construction	(412		)	(102	)	(39	)	—	—		—		(553		)
Total interest and other charges	9,664			3,112		2,459		—	—		(3	)	15,232
Net income (loss)	17,294			6,708		4,485		—	(1	)	(10,963	)	17,523
Preferred stock dividend of subsidiaries	—			133		96		—	—		—		229
Net income (loss) attributable to HECO	17,294			6,575		4,389		—	(1	)	(10,963	)	17,294
Preferred stock dividends of HECO	270			—		—		—	—		—		270
Net income (loss) for common stock	$	17,024		6,575		4,389		—	(1	)	(10,963	)	$	17,024

Consolidating Statement of Comprehensive Income (unaudited)

Three months ended June 30, 2011

(in thousands)	HECO			HELCO		MECO		RHI	UBC		Reclassifications and eliminations		HECO Consolidated
Net income (loss) for common stock	$	17,024		6,575		4,389		—	(1	)	(10,963	)	$	17,024
Other comprehensive income (loss), net of taxes:
Retirement benefit plans:
Less: amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, net of tax benefits	2,152			339		284		—	—		(623	)	2,152
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(2,105		)	(338	)	(282	)	—	—		620		(2,105		)
Other comprehensive income (loss), net of taxes	47			1		2		—	—		(3	)	47
Comprehensive income (loss) attributable to common shareholder	$	17,071		6,576		4,391		—	(1	)	(10,966	)	$	17,071

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Statement of Income (Loss) (unaudited)

Six months ended June 30, 2012

(in thousands)	HECO			HELCO		MECO		RHI		UBC		Reclassifications and eliminations		HECO Consolidated
Operating revenues	$	1,098,140		224,068		213,415		—		—		—		$	1,535,623
Operating expenses
Fuel oil	476,419			63,026		119,458		—		—		—		658,903
Purchased power	265,916			71,303		15,922		—		—		—		353,141
Other operation	84,569			18,963		22,833		—		—		—		126,365
Maintenance	41,378			9,134		10,761		—		—		—		61,273
Depreciation	45,308			16,737		10,570		—		—		—		72,615
Taxes, other than income taxes	105,993			20,886		20,420		—		—		—		147,299
Income taxes	25,324			7,054		3,561		—		—		—		35,939
Total operating expenses	1,044,907			207,103		203,525		—		—		—		1,455,535
Operating income	53,233			16,965		9,890		—		—		—		80,088
Other income (loss)
Allowance for equity funds used during construction	3,235			285		417		—		—		—		3,937
Equity in earnings of subsidiaries	16,740			—		—		—		—		(16,740	)	—
Other, net	2,201			200		257		(1	)	(1	)	(28	)	2,628
Total other income (loss)	22,176			485		674		(1	)	(1	)	(16,768	)	6,565
Interest and other charges
Interest on long-term debt	19,320			5,898		4,488		—		—		—		29,706
Amortization of net bond premium and expense	912			245		249		—		—		—		1,406
Other interest charges	(554		)	53		159		—		—		(28	)	(370		)
Allowance for borrowed funds used during construction	(1,485		)	(115	)	(163	)	—		—		—		(1,763		)
Total interest and other charges	18,193			6,081		4,733		—		—		(28	)	28,979
Net income (loss)	57,216			11,369		5,831		(1	)	(1	)	(16,740	)	57,674
Preferred stock dividend of subsidiaries	—			267		191		—		—		—		458
Net income (loss) attributable to HECO	57,216			11,102		5,640		(1	)	(1	)	(16,740	)	57,216
Preferred stock dividends of HECO	540			—		—		—		—		—		540
Net income (loss) for common stock	$	56,676		11,102		5,640		(1	)	(1	)	(16,740	)	$	56,676

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Statement of Comprehensive Income (unaudited)

Six months ended June 30, 2012

(in thousands)	HECO			HELCO		MECO		RHI		UBC		Reclassifications and eliminations		HECO Consolidated
Net income (loss) for common stock	$	56,676		11,102		5,640		(1	)	(1	)	(16,740	)	$	56,676
Other comprehensive income (loss), net of taxes:
Retirement benefit plans:
Less: amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, net of tax benefits	6,836			1,050		885		—		—		(1,935	)	6,836
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(6,684		)	(1,037	)	(873	)	—		—		1,910		(6,684		)
Other comprehensive income (loss), net of taxes	152			13		12		—		—		(25	)	152
Comprehensive income (loss) attributable to common shareholder	$	56,828		11,115		5,652		(1	)	(1	)	(16,765	)	$	56,828

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Statement of Income (Loss) (unaudited)

Six months ended June 30, 2011

(in thousands)	HECO			HELCO		MECO		RHI		UBC		Reclassifications and eliminations		HECO Consolidated
Operating revenues	$	960,477		210,230		201,246		—		—		—		$	1,371,953
Operating expenses
Fuel oil	403,497			58,614		110,890		—		—		—		573,001
Purchased power	244,672			62,264		12,759		—		—		—		319,695
Other operation	95,651			17,792		19,476		—		—		—		132,919
Maintenance	43,269			8,148		9,055		—		—		—		60,472
Depreciation	45,768			16,471		10,451		—		—		—		72,690
Taxes, other than income taxes	88,997			19,336		18,814		—		—		—		127,147
Income taxes	8,338			8,494		5,938		—		—		—		22,770
Total operating expenses	930,192			191,119		187,383		—		—		—		1,308,694
Operating income	30,285			19,111		13,863		—		—		—		63,259
Other income (loss)
Allowance for equity funds used during construction	1,934			316		311		—		—		—		2,561
Equity in earnings of subsidiaries	22,453			—		—		—		—		(22,453	)	—
Other, net	1,358			320		154		(2	)	(4	)	(18	)	1,808
Total other income (loss)	25,745			636		465		(2	)	(4	)	(22,471	)	4,369
Interest and other charges
Interest on long-term debt	18,261			5,969		4,536		—		—		—		28,766
Amortization of net bond premium and expense	1,016			280		253		—		—		—		1,549
Other interest charges	820			174		199		—		—		(18	)	1,175
Allowance for borrowed funds used during construction	(820		)	(135	)	(118	)	—		—		—		(1,073		)
Total interest and other charges	19,277			6,288		4,870		—		—		(18	)	30,417
Net income (loss)	36,753			13,459		9,458		(2	)	(4	)	(22,453	)	37,211
Preferred stock dividend of subsidiaries	—			267		191		—		—		—		458
Net income (loss) attributable to HECO	36,753			13,192		9,267		(2	)	(4	)	(22,453	)	36,753
Preferred stock dividends of HECO	540			—		—		—		—		—		540
Net income (loss) for common stock	$	36,213		13,192		9,267		(2	)	(4	)	(22,453	)	$	36,213

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Statement of Comprehensive Income (unaudited)

Six months ended June 30, 2011

(in thousands)	HECO			HELCO		MECO		RHI		UBC		Reclassifications and eliminations		HECO Consolidated
Net income (loss) for common stock	$	36,213		13,192		9,267		(2	)	(4	)	(22,453	)	$	36,213
Other comprehensive income (loss), net of taxes:
Retirement benefit plans:
Less: amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, net of tax benefits	4,426			696		567		—		—		(1,263	)	4,426
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(4,352		)	(695	)	(568	)	—		—		1,263		(4,352		)
Other comprehensive income (loss), net of taxes	74			1		(1	)	—		—		—		74
Comprehensive income (loss) attributable to common shareholder	$	36,287		13,193		9,266		(2	)	(4	)	(22,453	)	$	36,287

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Balance Sheet (unaudited)

June 30, 2012

(in thousands)	HECO			HELCO		MECO		RHI	UBC	Reclassifications and eliminations		HECO Consolidated
Assets
Utility plant, at cost
Land	$	43,339		5,182		3,016		—	—	—		$	51,537
Plant and equipment	3,175,570			1,056,182		924,571		—	—	—		5,156,323
Less accumulated depreciation	(1,160,195		)	(425,683	)	(418,587	)	—	—	—		(2,004,465		)
Construction in progress	144,388			15,063		13,535		—	—	—		172,986
Net utility plant	2,203,102			650,744		522,535		—	—	—		3,376,381
Investment in wholly owned subsidiaries, at equity	521,966			—		—		—	—	(521,966	)	—
Current assets
Cash and cash equivalents	2,423			2,934		475		80	25	—		5,937
Advances to affiliates	8,700			19,350		—		—	—	(28,050	)	—
Customer accounts receivable, net	143,580			29,989		26,875		—	—	—		200,444
Accrued unbilled revenues, net	124,602			24,955		20,322		—	—	—		169,879
Other accounts receivable, net	13,250			(64	)	1,371		—	—	(12,092	)	2,465
Fuel oil stock, at average cost	156,942			19,731		30,768		—	—	—		207,441
Materials and supplies, at average cost	31,268			5,722		13,797		—	—	—		50,787
Prepayments and other	26,934			8,641		7,826		—	—	—		43,401
Regulatory assets	27,862			1,241		1,269		—	—	—		30,372
Total current assets	535,561			112,499		102,703		80	25	(40,142	)	710,726
Other long-term assets
Regulatory assets	493,784			87,494		86,798		—	—	—		668,076
Unamortized debt expense	7,600			2,157		1,510		—	—	—		11,267
Other	59,708			14,397		16,995		—	—	—		91,100
Total other long-term assets	561,092			104,048		105,303		—	—	—		770,443
Total assets	$	3,821,721		867,291		730,541		80	25	(562,108	)	$	4,857,550
Capitalization and liabilities
Capitalization
Common stock equity	$	1,423,148		285,014		236,847		80	25	(521,966	)	$	1,423,148
Cumulative preferred stock—not subject to mandatory redemption	22,293			7,000		5,000		—	—	—		34,293
Long-term debt, net	780,334			201,319		166,000		—	—	—		1,147,653
Total capitalization	2,225,775			493,333		407,847		80	25	(521,966	)	2,605,094
Current liabilities
Short-term borrowings-nonaffiliates	44,242			—		—		—	—	—		44,242
Short-term borrowings-affiliate	19,350			—		8,700		—	—	(28,050	)	—
Accounts payable	164,002			22,404		20,078		—	—	—		206,484
Interest and preferred dividends payable	12,774			4,046		2,203		—	—	(9	)	19,014
Taxes accrued	150,611			34,504		32,206		—	—	—		217,321
Other	40,451			11,972		15,107		—	—	(12,083	)	55,447
Total current liabilities	431,430			72,926		78,294		—	—	(40,142	)	542,508
Deferred credits and other liabilities
Deferred income taxes	268,645			66,908		44,931		—	—	—		380,484
Regulatory liabilities	215,648			64,846		37,464		—	—	—		317,958
Unamortized tax credits	37,489			13,065		12,883		—	—	—		63,437
Retirement benefits liability	344,998			57,915		60,717		—	—	—		463,630
Other	69,077			20,583		13,573		—	—	—		103,233
Total deferred credits and other liabilities	935,857			223,317		169,568		—	—	—		1,328,742
Contributions in aid of construction	228,659			77,715		74,832		—	—	—		381,206
Total capitalization and liabilities	$	3,821,721		867,291		730,541		80	25	(562,108	)	$	4,857,550

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Balance Sheet (unaudited)

December 31, 2011

(in thousands)	HECO			HELCO		MECO		RHI	UBC	Reclassifications and eliminations		HECO Consolidated
Assets
Utility plant, at cost
Land	$	43,316		5,182		3,016		—	—	—		$	51,514
Plant and equipment	3,091,908			1,048,599		911,520		—	—	—		5,052,027
Less accumulated depreciation	(1,141,839		)	(414,769	)	(410,286	)	—	—	—		(1,966,894		)
Construction in progress	117,625			8,144		13,069		—	—	—		138,838
Net utility plant	2,111,010			647,156		517,319		—	—	—		3,275,485
Investment in wholly owned subsidiaries, at equity	516,143			—		—		—	—	(516,143	)	—
Current assets
Cash and cash equivalents	44,819			3,383		496		82	26	—		48,806
Advances to affiliates	—			46,150		18,500		—	—	(64,650	)	—
Customer accounts receivable, net	130,190			28,602		24,536		—	—	—		183,328
Accrued unbilled revenues, net	103,328			18,499		15,999		—	—	—		137,826
Other accounts receivable, net	8,987			1,186		3,008		—	—	(4,558	)	8,623
Fuel oil stock, at average cost	128,037			19,217		24,294		—	—	—		171,548
Materials and supplies, at average cost	25,096			4,700		13,392		—	—	—		43,188
Prepayments and other	22,517			6,948		7,343		—	—	(141	)	36,667
Regulatory assets	18,038			1,115		1,130		—	—	—		20,283
Total current assets	481,012			129,800		108,698		82	26	(69,349	)	650,269
Other long-term assets
Regulatory assets	478,851			86,394		83,861		—	—	—		649,106
Unamortized debt expense	8,446			2,464		1,876		—	—	—		12,786
Other	58,672			11,843		15,846		—	—	—		86,361
Total other long-term assets	545,969			100,701		101,583		—	—	—		748,253
Total assets	$	3,654,134		877,657		727,600		82	26	(585,492	)	$	4,674,007
Capitalization and liabilities
Capitalization
Common stock equity	$	1,402,841		280,468		235,568		81	26	(516,143	)	$	1,402,841
Cumulative preferred stock—not subject to mandatory redemption	22,293			7,000		5,000		—	—	—		34,293
Long-term debt, net	629,757			204,110		166,703		—	—	—		1,000,570
Total capitalization	2,054,891			491,578		407,271		81	26	(516,143	)	2,437,704
Current liabilities
Current portion of long-term debt	42,580			7,200		7,720		—	—	—		57,500
Short-term borrowings-affiliate	64,650			—		—		—	—	(64,650	)	—
Accounts payable	140,044			29,616		18,920		—	—	—		188,580
Interest and preferred dividends payable	12,648			4,074		2,762		—	—	(1	)	19,483
Taxes accrued	155,867			38,598		35,752		—	—	(141	)	230,076
Other	50,828			9,478		13,603		1	—	(4,557	)	69,353
Total current liabilities	466,617			88,966		78,757		1	—	(69,349	)	564,992
Deferred credits and other liabilities
Deferred income taxes	236,890			61,044		39,929		—	—	—		337,863
Regulatory liabilities	215,401			62,049		38,016		—	—	—		315,466
Unamortized tax credits	34,877			12,951		12,786		—	—	—		60,614
Retirement benefits liability	368,245			62,036		64,840		—	—	—		495,121
Other	72,418			22,391		11,235		—	—	—		106,044
Total deferred credits and other liabilities	927,831			220,471		166,806		—	—	—		1,315,108
Contributions in aid of construction	204,795			76,642		74,766		—	—	—		356,203
Total capitalization and liabilities	$	3,654,134		877,657		727,600		82	26	(585,492	)	$	4,674,007

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Statement of Changes in Common Stock Equity (unaudited)

Six months ended June 30, 2012

(in thousands)	HECO			HELCO		MECO		RHI		UBC		Reclassifications and eliminations		HECO Consolidated
Balance, December 31, 2011	$	1,402,841		280,468		235,568		81		26		(516,143	)	$	1,402,841
Net income (loss) for common stock	56,676			11,102		5,640		(1	)	(1	)	(16,740	)	56,676
Other comprehensive income (loss), net of taxes	152			13		12		—		—		(25	)	152
Common stock dividends	(36,522		)	(6,569	)	(4,373	)	—		—		10,942		(36,522		)
Common stock issue expenses	1			—		—		—		—		—		1
Balance, June 30, 2012	$	1,423,148		285,014		236,847		80		25		(521,966	)	$	1,423,148

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Statement of Changes in Common Stock Equity (unaudited)

Six months ended June 30, 2011

(in thousands)	HECO			HELCO		MECO		RHI		UBC		Reclassifications and eliminations		HECO Consolidated
Balance, December 31, 2010	$	1,334,155		269,986		229,651		86		5		(499,728	)	$	1,334,155
Net income (loss) for common stock	36,213			13,192		9,267		(2	)	(4	)	(22,453	)	36,213
Other comprehensive income (loss), net of taxes	74			1		(1	)	—		—		—		74
Common stock dividends	(35,279		)	(8,061	)	(6,002	)	—		—		14,063		(35,279		)
Capital contribution from parent	—			—		—		—		25		(25	)	—
Balance, June 30, 2011	$	1,335,163		275,118		232,915		84		26		(508,143	)	$	1,335,163

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Statement of Cash Flows (unaudited)

Six months ended June 30, 2012

(in thousands)	HECO			HELCO		MECO		RHI		UBC		Elimination addition to (deduction from) cash flows		HECO Consolidated
Cash flows from operating activities:
Net income (loss)	$	57,216		11,369		5,831		(1	)	(1	)	(16,740	)	$	57,674
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Equity in earnings of subsidiaries	(16,790		)	—		—		—		—		16,740		(50		)
Common stock dividends received from subsidiaries	10,967			—		—		—		—		(10,942	)	25
Depreciation of property, plant and equipment	45,308			16,737		10,570		—		—		—		72,615
Other amortization	347			1,418		1,005		—		—		—		2,770
Change in deferred income taxes	31,673			5,857		4,994		—		—		—		42,524
Change in tax credits, net	2,641			125		114		—		—		—		2,880
Allowance for equity funds used during construction	(3,235		)	(285	)	(417	)	—		—		—		(3,937		)
Changes in assets and liabilities:
Increase in accounts receivable	(17,653		)	(137	)	(702	)	—		—		7,534		(10,958		)
Increase in accrued unbilled revenues	(21,274		)	(6,456	)	(4,323	)	—		—		—		(32,053		)
Increase in fuel oil stock	(28,905		)	(514	)	(6,474	)	—		—		—		(35,893		)
Increase in materials and supplies	(6,172		)	(1,022	)	(405	)	—		—		—		(7,599		)
Increase in regulatory assets	(28,190		)	(3,234	)	(4,052	)	—		—		—		(35,476		)
Increase (decrease) in accounts payable	12,843			(6,938	)	26		—		—		—		5,931
Change in prepaid and accrued income and utility revenue taxes	(9,994		)	(6,347	)	(4,800	)	—		—		—		(21,141		)
Contributions to defined benefit pension and other postretirement benefit plans	(38,693		)	(6,536	)	(6,857	)	—		—		—		(52,086		)
Change in other assets and liabilities	(4,021		)	657		4,148		(1	)	—		(7,534	)	(6,751		)
Net cash provided by (used in) operating activities	(13,932		)	4,694		(1,342	)	(2	)	(1	)	(10,942	)	(21,525		)
Cash flows from investing activities:
Capital expenditures	(111,011		)	(17,405	)	(13,202	)	—		—		—		(141,618		)
Contributions in aid of construction	23,693			2,327		961		—		—		—		26,981
Advances from (to) affiliates	(8,700		)	26,800		18,500		—		—		(36,600	)	—
Net cash provided by (used in) investing activities	(96,018		)	11,722		6,259		—		—		(36,600	)	(114,637		)
Cash flows from financing activities:
Common stock dividends	(36,522		)	(6,569	)	(4,373	)	—		—		10,942		(36,522		)
Preferred stock dividends of HECO and subsidiaries	(540		)	(267	)	(191	)	—		—		—		(998		)
Proceeds from issuance of long-term debt	327,000			31,000		59,000		—		—		—		417,000
Repayment of long-term debt	(219,580		)	(41,200	)	(67,720	)	—		—		—		(328,500		)
Net increase (decrease) in short-term borrowings from nonaffiliates and affiliate with original maturities of three months or less	(1,058		)	—		8,700		—		—		36,600		44,242
Other	(1,746		)	171		(354	)	—		—		—		(1,929		)
Net cash provided by (used in) financing activities	67,554			(16,865	)	(4,938	)	—		—		47,542		93,293
Net decrease in cash and cash equivalents	(42,396		)	(449	)	(21	)	(2	)	(1	)	—		(42,869		)
Cash and cash equivalents, beginning of period	44,819			3,383		496		82		26		—		48,806
Cash and cash equivalents, end of period	$	2,423		2,934		475		80		25		—		$	5,937

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Statement of Cash Flows (unaudited)

Six months ended June 30, 2011

(in thousands)	HECO			HELCO		MECO		RHI		UBC		Elimination addition to (deduction from) cash flows		HECO Consolidated
Cash flows from operating activities:
Net income (loss)	$	36,753		13,459		9,458		(2	)	(4	)	(22,453	)	$	37,211
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Equity in earnings of subsidiaries	(22,503		)	—		—		—		—		22,453		(50		)
Common stock dividends received from subsidiaries	14,113			—		—		—		—		(14,063	)	50
Depreciation of property, plant and equipment	45,768			16,471		10,451		—		—		—		72,690
Other amortization	8,602			1,283		948		—		—		—		10,833
Change in deferred income taxes	19,474			6,234		7,748		—		—		—		33,456
Change in tax credits, net	1,193			307		56		—		—		—		1,556
Allowance for equity funds used during construction	(1,934		)	(316	)	(311	)	—		—		—		(2,561		)
Change in cash overdraft	—			(2,527	)	222		—		—		—		(2,305		)
Changes in assets and liabilities:
Increase in accounts receivable	(25,879		)	(3,111	)	(5,486	)	—		—		1,164		(33,312		)
Increase in accrued unbilled revenues	(16,571		)	(1,769	)	(139	)	—		—		—		(18,479		)
Decrease (increase) in fuel oil stock	12,090			(5,168	)	(13,431	)	—		—		—		(6,509		)
Increase in materials and supplies	(956		)	(88	)	(446	)	—		—		—		(1,490		)
Increase in regulatory assets	(9,650		)	(1,057	)	(3,791	)	—		—		—		(14,498		)
Decrease in accounts payable	(45,638		)	(35	)	(2,615	)	—		—		—		(48,288		)
Change in prepaid and accrued income and utility revenue taxes	3,724			3,682		4,772		—		—		—		12,178
Contributions to defined benefit pension and other postretirement benefit plans	(27,431		)	(4,638	)	(4,952	)	—		—		—		(37,021		)
Change in other assets and liabilities	9,116			3,502		1,143		(2	)	1		(1,164	)	12,596
Net cash provided by (used in) operating activities	271			26,229		3,627		(4	)	(3	)	(14,063	)	16,057
Cash flows from investing activities:
Capital expenditures	(60,386		)	(13,937	)	(11,072	)	—		—		—		(85,395		)
Contributions in aid of construction	4,816			2,501		836		—		—		—		8,153
Other	77			—		—		—		—		—		77
Investment in consolidated subsidiary	(25		)	—		—		—		—		25		—
Advances from (to) affiliates	—			(5,850	)	12,500		—		—		(6,650	)	—
Net cash provided by (used in) investing activities	(55,518		)	(17,286	)	2,264		—		—		(6,625	)	(77,165		)
Cash flows from financing activities:
Common stock dividends	(35,279		)	(8,061	)	(6,002	)	—		—		14,063		(35,279		)
Preferred stock dividends of HECO and subsidiaries	(540		)	(267	)	(191	)	—		—		—		(998		)
Net decrease in short-term borrowings from nonaffiliates and affiliate with original maturities of three months or less	(6,650		)	—		—		—		—		6,650		—
Other	(16		)	—		(1	)	—		25		(25	)	(17		)
Net cash provided by (used in) financing activities	(42,485		)	(8,328	)	(6,194	)	—		25		20,688		(36,294		)
Net increase (decrease) in cash and cash equivalents	(97,732		)	615		(303	)	(4	)	22		—		(97,402		)
Cash and cash equivalents, beginning of period	121,019			1,229		594		89		5		—		122,936
Cash and cash equivalents, end of period	$	23,287		1,844		291		85		27		—		$	25,534