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Electric utility subsidiary (Tables)

9 Months Ended

Sep. 30, 2014

Regulatory projects and legal obligations

Schedule of consolidating statements of income (loss)

Selected financial information

American Savings Bank, F.S.B.

Statements of Income Data



	Three months ended September 30				Nine months ended September 30
(in thousands)	2014		2013		2014		2013
Interest and dividend income
Interest and fees on loans	$	45,532	$	43,337	$	133,065	$	129,564
Interest and dividends on investment and mortgage-related securities	2,773		3,025		8,758		9,723
Total interest and dividend income	48,305		46,362		141,823		139,287
Interest expense
Interest on deposit liabilities	1,312		1,262		3,774		3,870
Interest on other borrowings	1,438		1,206		4,263		3,548
Total interest expense	2,750		2,468		8,037		7,418
Net interest income	45,555		43,894		133,786		131,869
Provision for loan losses	1,550		54		3,566		953
Net interest income after provision for loan losses	44,005		43,840		130,220		130,916
Noninterest income
Fees from other financial services	5,642		5,728		15,987		21,367
Fee income on deposit liabilities	5,109		4,819		14,175		13,566
Fee income on other financial products	1,971		2,714		6,325		6,288
Mortgage banking income	875		1,547		1,749		6,896
Gain on sale of securities	—		—		2,847		1,226
Other income, net	1,634		3,888		4,865		7,211
Total noninterest income	15,231		18,696		45,948		56,554
Noninterest expense
Compensation and employee benefits	19,892		20,564		60,050		60,715
Occupancy	4,517		4,208		12,959		12,550
Data processing	2,684		2,168		8,715		7,982
Services	2,580		2,424		7,708		6,855
Equipment	1,672		1,825		4,926		5,469
Office supplies, printing and postage	1,415		907		4,487		2,806
Marketing	948		692		2,690		2,054
Communication	412		479		1,363		1,374
Other expense	5,544		6,461		15,026		18,400
Total noninterest expense	39,664		39,728		117,924		118,205
Income before income taxes	19,572		22,808		58,244		69,265
Income taxes	6,312		7,532		18,769		23,915
Net income	$	13,260	$	15,276	$	39,475	$	45,350

Schedule of consolidating balance sheets

American Savings Bank, F.S.B.

Balance Sheets Data



(in thousands)	September 30, 2014						December 31, 2013
Assets
Cash and due from banks				$	98,879					$	108,998
Interest-bearing deposits				74,654						47,605
Available-for-sale investment and mortgage-related securities				531,603						529,007
Investment in stock of Federal Home Loan Bank of Seattle				75,063						92,546
Loans receivable held for investment				4,335,421						4,150,229
Allowance for loan losses				(43,461		)				(40,116		)
Loans receivable held for investment, net				4,291,960						4,110,113
Loans held for sale, at lower of cost or fair value				2,328						5,302
Other				285,659						268,063
Goodwill				82,190						82,190
Total assets				$	5,442,336					$	5,243,824

Liabilities and shareholder’s equity
Deposit liabilities—noninterest-bearing				$	1,298,726					$	1,214,418
Deposit liabilities—interest-bearing				3,235,071						3,158,059
Other borrowings				263,204						244,514
Other				107,814						105,679
Total liabilities				4,904,815						4,722,670
Commitments and contingencies (see “Litigation” section)
Common stock				1						1
Additional paid in capital				337,862						336,053
Retained earnings				209,522						197,297
Accumulated other comprehensive loss, net of tax benefits
Net unrealized losses on securities	$	(1,972	)				$	(3,663	)
Retirement benefit plans	(7,892		)	(9,864		)	(8,534		)	(12,197		)
Total shareholder’s equity				537,521						521,154
Total liabilities and shareholder’s equity				$	5,442,336					$	5,243,824

Other assets
Bank-owned life insurance				$	133,066					$	129,963
Premises and equipment, net				70,105						67,766
Prepaid expenses				3,941						3,616
Accrued interest receivable				13,436						13,133
Mortgage-servicing rights				11,524						11,687
Low-income housing equity investments				22,825						14,543
Real estate acquired in settlement of loans, net				580						1,205
Other				30,182						26,150
				$	285,659					$	268,063
Other liabilities
Accrued expenses				$	24,733					$	19,989
Federal and state income taxes payable				35,096						37,807
Cashier’s checks				23,754						21,110
Advance payments by borrowers				5,013						9,647
Other				19,218						17,126
				$	107,814					$	105,679

Hawaiian Electric Company, Inc. and Subsidiaries

Regulatory projects and legal obligations

Schedule of purchases from all IPPs

Power purchase agreements. As of September 30, 2014, the Utilities had six purchase power agreements (PPAs) for firm capacity and several other PPAs with variable generation independent power producers (IPPs) and Schedule Q providers (i.e., customers with cogeneration and/or small power production facilities with a capacity of 100 kilowatts (kWs) or less who buy power from or sell power to the Utilities), none of which are currently required to be consolidated as VIEs. The PPAs with AES Hawaii, Inc. (AES Hawaii), Kalaeloa Partners, L.P. (Kalaeloa), Hamakua Energy Partners, L.P. (HEP) and Hpower comprise approximately 90% of IPP contractual firm capacity available to the Utilities. Purchases from all IPPs were as follows:



	Three months ended September 30				Nine months ended September 30
(in millions)	2014		2013		2014		2013
AES Hawaii	$	38	$	38	$	107	$	98
Kalaeloa	73		80		214		223
HEP	16		15		36		36
Hpower	18		17		50		44
Other IPPs	48		45		139		126
Total IPPs	$	193	$	195	$	546	$	527

Schedule of changes in asset retirement obligation

Changes to the ARO liability included in “Other liabilities” on Hawaiian Electric’s balance sheet were as follows:



	Nine months ended September 30
(in thousands)	2014			2013
Balance, beginning of period	$	43,106		$	48,431
Accretion expense	816			833
Liabilities incurred	—			—
Liabilities settled	(11,338		)	(1,165		)
Revisions in estimated cash flows	—			(916		)
Balance, end of period	$	32,584		$	47,183

Schedule of consolidating statements of income (loss)

Consolidating Statement of Income (unaudited)

Three months ended September 30, 2014



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consolidating adjustments		Hawaiian Electric Consolidated
Revenues	$	579,777		111,154		112,656		—	(22	)	$	803,565
Expenses
Fuel oil	229,068			29,555		50,809		—	—		309,432
Purchased power	142,121			34,166		16,595		—	—		192,882
Other operation and maintenance	71,584			19,837		16,892		—	—		108,313
Depreciation	27,302			8,975		5,317		—	—		41,594
Taxes, other than income taxes	54,412			10,607		10,169		—	—		75,188
Total expenses	524,487			103,140		99,782		—	—		727,409
Operating income	55,290			8,014		12,874		—	(22	)	76,156
Allowance for equity funds used during construction	1,668			142		127		—	—		1,937
Equity in earnings of subsidiaries	9,800			—		—		—	(9,800	)	—
Interest expense and other charges, net	(11,196		)	(2,811	)	(2,429	)	—	22		(16,414		)
Allowance for borrowed funds used during construction	634			54		52		—	—		740
Income before income taxes	56,196			5,399		10,624		—	(9,800	)	62,419
Income taxes	17,047			1,965		4,030		—	—		23,042
Net income	39,149			3,434		6,594		—	(9,800	)	39,377
Preferred stock dividends of subsidiaries	—			133		95		—	—		228
Net income attributable to Hawaiian Electric	39,149			3,301		6,499		—	(9,800	)	39,149
Preferred stock dividends of Hawaiian Electric	270			—		—		—	—		270
Net income for common stock	$	38,879		3,301		6,499		—	(9,800	)	$	38,879

Consolidating Statement of Income (unaudited)

Nine months ended September 30, 2013



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries		Consolidating adjustments		Hawaiian Electric Consolidated
Revenues	$	1,576,068		320,330		313,725		—		(103	)	$	2,210,020
Expenses
Fuel oil	631,824			94,120		151,794		—		—		877,738
Purchased power	389,706			93,880		43,083		—		—		526,669
Other operation and maintenance	212,474			46,158		42,089		2		—		300,723
Depreciation	75,150			25,641		15,074		—		—		115,865
Taxes, other than income taxes	149,282			30,113		29,681		—		—		209,076
Total expenses	1,458,436			289,912		281,721		2		—		2,030,071
Operating income (loss)	117,632			30,418		32,004		(2	)	(103	)	179,949
Allowance for equity funds used during construction	3,144			552		334		—		—		4,030
Equity in earnings of subsidiaries	30,446			—		—		—		(30,446	)	—
Interest expense and other charges, net	(28,723		)	(8,566	)	(6,774	)	—		103		(43,960		)
Allowance for borrowed funds used during construction	1,268			226		132		—		—		1,626
Income (loss) before income taxes	123,767			22,630		25,696		(2	)	(30,446	)	141,645
Income taxes	32,018			7,486		9,706		—		—		49,210
Net income (loss)	91,749			15,144		15,990		(2	)	(30,446	)	92,435
Preferred stock dividends of subsidiaries	—			400		286		—		—		686
Net income (loss) attributable to Hawaiian Electric	91,749			14,744		15,704		(2	)	(30,446	)	91,749
Preferred stock dividends of Hawaiian Electric	810			—		—		—		—		810
Net income (loss) for common stock	$	90,939		14,744		15,704		(2	)	(30,446	)	$	90,939

Consolidating Statement of Income (unaudited)

Nine months ended September 30, 2014



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consolidating adjustments		Hawaiian Electric Consolidated
Revenues	$	1,623,223		319,629		319,265		—	(61	)	$	2,262,056
Expenses
Fuel oil	628,164			92,234		145,591		—	—		865,989
Purchased power	406,895			91,827		47,399		—	—		546,121
Other operation and maintenance	199,091			48,701		47,691		—	—		295,483
Depreciation	81,903			26,926		15,961		—	—		124,790
Taxes, other than income taxes	152,545			30,127		30,111		—	—		212,783
Total expenses	1,468,598			289,815		286,753		—	—		2,045,166
Operating income	154,625			29,814		32,512		—	(61	)	216,890
Allowance for equity funds used during construction	4,557			328		48		—	—		4,933
Equity in earnings of subsidiaries	28,576			—		—		—	(28,576	)	—
Interest expense and other charges, net	(33,236		)	(8,411	)	(7,403	)	—	61		(48,989		)
Allowance for borrowed funds used during construction	1,728			126		23		—	—		1,877
Income before income taxes	156,250			21,857		25,180		—	(28,576	)	174,711
Income taxes	46,911			8,149		9,626		—	—		64,686
Net income	109,339			13,708		15,554		—	(28,576	)	110,025
Preferred stock dividends of subsidiaries	—			400		286		—	—		686
Net income attributable to Hawaiian Electric	109,339			13,308		15,268		—	(28,576	)	109,339
Preferred stock dividends of Hawaiian Electric	810			—		—		—	—		810
Net income for common stock	$	108,529		13,308		15,268		—	(28,576	)	$	108,529

Consolidating Statement of Income (unaudited)

Three months ended September 30, 2013



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries		Consolidating adjustments		Hawaiian Electric Consolidated
Revenues	$	547,434		107,957		108,699		—		(36	)	$	764,054
Expenses
Fuel oil	206,478			27,615		49,267		—		—		283,360
Purchased power	143,280			34,480		17,101		—		—		194,861
Other operation and maintenance	71,498			16,793		16,221		1		—		104,513
Depreciation	25,442			8,547		5,006		—		—		38,995
Taxes, other than income taxes	51,781			10,457		10,234		—		—		72,472
Total expenses	498,479			97,892		97,829		1		—		694,201
Operating income (loss)	48,955			10,065		10,870		(1	)	(36	)	69,853
Allowance for equity funds used during construction	914			222		119		—		—		1,255
Equity in earnings of subsidiaries	10,794			—		—		—		(10,794	)	—
Interest expense and other charges, net	(9,883		)	(2,920	)	(2,266	)	—		36		(15,033		)
Allowance for borrowed funds used during construction	358			91		49		—		—		498
Income (loss) before income taxes	51,138			7,458		8,772		(1	)	(10,794	)	56,573
Income taxes	13,051			1,881		3,326		—		—		18,258
Net income (loss)	38,087			5,577		5,446		(1	)	(10,794	)	38,315
Preferred stock dividends of subsidiaries	—			133		95		—		—		228
Net income (loss) attributable to Hawaiian Electric	38,087			5,444		5,351		(1	)	(10,794	)	38,087
Preferred stock dividends of Hawaiian Electric	270			—		—		—		—		270
Net income (loss) for common stock	$	37,817		5,444		5,351		(1	)	(10,794	)	$	37,817

Schedule of consolidating statement of comprehensive income (loss)

Consolidating Statement of Comprehensive Income (unaudited)

Three months ended September 30, 2014



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consolidating adjustments		Hawaiian Electric Consolidated
Net income for common stock	$	38,879		3,301		6,499		—	(9,800	)	$	38,879
Other comprehensive income (loss), net of taxes:
Retirement benefit plans:
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits	2,552			317		272		—	(589	)	2,552
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(2,542		)	(319	)	(272	)	—	591		(2,542		)
Other comprehensive income (loss), net of taxes	10			(2	)	—		—	2		10
Comprehensive income attributable to common shareholder	$	38,889		3,299		6,499		—	(9,798	)	$	38,889

Consolidating Statement of Comprehensive Income (unaudited)

Nine months ended September 30, 2014



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consolidating adjustments		Hawaiian Electric Consolidated
Net income for common stock	$	108,529		13,308		15,268		—	(28,576	)	$	108,529
Other comprehensive income (loss), net of taxes:
Retirement benefit plans:
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits	7,659			953		817		—	(1,770	)	7,659
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(7,627		)	(955	)	(817	)	—	1,772		(7,627		)
Other comprehensive income (loss), net of taxes	32			(2	)	—		—	2		32
Comprehensive income attributable to common shareholder	$	108,561		13,306		15,268		—	(28,574	)	$	108,561

Consolidating Statement of Comprehensive Income (Loss) (unaudited)

Three months ended September 30, 2013



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries		Consolidating adjustments		Hawaiian Electric Consolidated
Net income (loss) for common stock	$	37,817		5,444		5,351		(1	)	(10,794	)	$	37,817
Other comprehensive income (loss), net of taxes:
Retirement benefit plans:
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits	5,173			720		639		—		(1,359	)	5,173
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(5,156		)	(721	)	(639	)	—		1,360		(5,156		)
Other comprehensive income (loss), net of taxes	17			(1	)	—		—		1		17
Comprehensive income (loss) attributable to common shareholder	$	37,834		5,443		5,351		(1	)	(10,793	)	$	37,834

Consolidating Statement of Comprehensive Income (Loss) (unaudited)

Nine months ended September 30, 2013



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries		Consolidating adjustments		Hawaiian Electric Consolidated
Net income (loss) for common stock	$	90,939		14,744		15,704		(2	)	(30,446	)	$	90,939
Other comprehensive income (loss), net of taxes:
Retirement benefit plans:
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits	15,520			2,160		1,918		—		(4,078	)	15,520
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(15,468		)	(2,162	)	(1,918	)	—		4,080		(15,468		)
Other comprehensive income (loss), net of taxes	52			(2	)	—		—		2		52
Comprehensive income (loss) attributable to common shareholder	$	90,991		14,742		15,704		(2	)	(30,444	)	$	90,991

Schedule of consolidating balance sheets

Consolidating Balance Sheet (unaudited)

December 31, 2013



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consoli- dating adjustments		Hawaiian Electric Consolidated
Assets
Property, plant and equipment
Utility property, plant and equipment
Land	$	43,407		5,460		3,016		—	—		$	51,883
Plant and equipment	3,558,569			1,136,923		1,006,383		—	—		5,701,875
Less accumulated depreciation	(1,222,129		)	(453,721	)	(435,379	)	—	—		(2,111,229		)
Construction in progress	124,494			7,709		11,030		—	—		143,233
Utility property, plant and equipment, net	2,504,341			696,371		585,050		—	—		3,785,762
Nonutility property, plant and equipment, less accumulated depreciation	4,953			82		1,532		—	—		6,567
Total property, plant and equipment, net	2,509,294			696,453		586,582		—	—		3,792,329
Investment in wholly owned subsidiaries, at equity	523,674			—		—		—	(523,674	)	—
Current assets
Cash and cash equivalents	61,245			1,326		153		101	—		62,825
Advances to affiliates	6,839			1,000		—		—	(7,839	)	—
Customer accounts receivable, net	121,282			28,088		26,078		—	—		175,448
Accrued unbilled revenues, net	107,752			17,100		19,272		—	—		144,124
Other accounts receivable, net	16,373			4,265		2,451		—	(9,027	)	14,062
Fuel oil stock, at average cost	99,613			14,178		20,296		—	—		134,087
Materials and supplies, at average cost	37,377			6,883		14,784		—	—		59,044
Prepayments and other	29,798			8,334		16,140		—	(1,415	)	52,857
Regulatory assets	54,979			6,931		7,828		—	—		69,738
Total current assets	535,258			88,105		107,002		101	(18,281	)	712,185
Other long-term assets
Regulatory assets	381,346			64,552		60,288		—	—		506,186
Unamortized debt expense	6,051			1,580		1,372		—	—		9,003
Other	42,163			11,270		13,993		—	—		67,426
Total other long-term assets	429,560			77,402		75,653		—	—		582,615
Total assets	$	3,997,786		861,960		769,237		101	(541,955	)	$	5,087,129
Capitalization and liabilities
Capitalization
Common stock equity	$	1,593,564		274,802		248,771		101	(523,674	)	$	1,593,564
Cumulative preferred stock—not subject to mandatory redemption	22,293			7,000		5,000		—	—		34,293
Long-term debt, net	830,547			189,998		186,000		—	—		1,206,545
Total capitalization	2,446,404			471,800		439,771		101	(523,674	)	2,834,402
Current liabilities
Current portion of long-term debt	—			11,400		—		—	—		11,400
Short-term borrowings from affiliate	1,000			—		6,839		—	(7,839	)	—
Accounts payable	145,062			24,383		20,114		—	—		189,559
Interest and preferred dividends payable	15,190			3,885		2,585		—	(8	)	21,652
Taxes accrued	175,790			37,899		37,171		—	(1,415	)	249,445
Regulatory liabilities	1,705			—		211		—	—		1,916
Other	48,443			9,033		15,424		—	(9,019	)	63,881
Total current liabilities	387,190			86,600		82,344		—	(18,281	)	537,853
Deferred credits and other liabilities
Deferred income taxes	359,621			79,947		67,593		—	—		507,161
Regulatory liabilities	235,786			76,475		35,122		—	—		347,383
Unamortized tax credits	44,931			14,245		14,363		—	—		73,539
Defined benefit pension and other postretirement benefit plans liability	202,396			28,427		31,339		—	—		262,162
Other	63,374			14,703		13,658		—	—		91,735
Total deferred credits and other liabilities	906,108			213,797		162,075		—	—		1,281,980
Contributions in aid of construction	258,084			89,763		85,047		—	—		432,894
Total capitalization and liabilities	$	3,997,786		861,960		769,237		101	(541,955	)	$	5,087,129

Consolidating Balance Sheet (unaudited)

September 30, 2014



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consoli- dating adjustments		Hawaiian Electric Consolidated
Assets
Property, plant and equipment
Utility property, plant and equipment
Land	$	43,816		5,464		3,064		—	—		$	52,344
Plant and equipment	3,700,063			1,165,542		1,036,792		—	—		5,902,397
Less accumulated depreciation	(1,245,695		)	(472,044	)	(449,806	)	—	—		(2,167,545		)
Construction in progress	149,115			13,267		16,808		—	—		179,190
Utility property, plant and equipment, net	2,647,299			712,229		606,858		—	—		3,966,386
Nonutility property, plant and equipment, less accumulated depreciation	4,948			82		1,531		—	—		6,561
Total property, plant and equipment, net	2,652,247			712,311		608,389		—	—		3,972,947
Investment in wholly owned subsidiaries, at equity	532,766			—		—		—	(532,766	)	—
Current assets
Cash and cash equivalents	14,856			809		2,621		101	—		18,387
Advances to affiliates	11,800			—		—		—	(11,800	)	—
Customer accounts receivable, net	132,809			31,023		25,901		—	—		189,733
Accrued unbilled revenues, net	108,306			16,474		18,373		—	—		143,153
Other accounts receivable, net	22,386			6,044		3,070		—	(11,992	)	19,508
Fuel oil stock, at average cost	88,285			13,959		16,059		—	—		118,303
Materials and supplies, at average cost	36,502			7,870		16,267		—	—		60,639
Prepayments and other	32,033			6,112		12,358		—	(233	)	50,270
Regulatory assets	44,736			4,855		5,109		—	—		54,700
Total current assets	491,713			87,146		99,758		101	(24,025	)	654,693
Other long-term assets
Regulatory assets	395,343			66,004		59,665		—	—		521,012
Unamortized debt expense	5,830			1,485		1,304		—	—		8,619
Other	42,203			11,889		13,799		—	—		67,891
Total other long-term assets	443,376			79,378		74,768		—	—		597,522
Total assets	$	4,120,102		878,835		782,915		101	(556,791	)	$	5,225,162
Capitalization and liabilities
Capitalization
Common stock equity	$	1,635,751		279,388		253,277		101	(532,766	)	$	1,635,751
Cumulative preferred stock—not subject to mandatory redemption	22,293			7,000		5,000		—	—		34,293
Long-term debt, net	830,546			190,000		186,000		—	—		1,206,546
Total capitalization	2,488,590			476,388		444,277		101	(532,766	)	2,876,590
Current liabilities
Current portion of long-term debt	—			11,400		—		—	—		11,400
Short-term borrowings from non-affiliates	84,987			—		—		—	—		84,987
Short-term borrowings from affiliate	—			1,000		10,800		—	(11,800	)	—
Accounts payable	107,108			27,077		17,793		—	—		151,978
Interest and preferred dividends payable	16,700			3,772		3,936		—	(7	)	24,401
Taxes accrued	165,787			35,837		35,090		—	(233	)	236,481
Regulatory liabilities	289			—		239		—	—		528
Other	46,727			10,596		17,062		—	(11,985	)	62,400
Total current liabilities	421,598			89,682		84,920		—	(24,025	)	572,175
Deferred credits and other liabilities
Deferred income taxes	404,144			84,905		76,450		—	—		565,499
Regulatory liabilities	244,830			79,389		32,343		—	—		356,562
Unamortized tax credits	49,609			14,914		14,745		—	—		79,268
Defined benefit pension and other postretirement benefit plans liability	192,246			26,435		29,657			—		248,338
Other	51,790			13,347		12,782		—	—		77,919
Total deferred credits and other liabilities	942,619			218,990		165,977		—	—		1,327,586
Contributions in aid of construction	267,295			93,775		87,741		—	—		448,811
Total capitalization and liabilities	$	4,120,102		878,835		782,915		101	(556,791	)	$	5,225,162

Schedule of consolidating statement of changes in common stock equity

Consolidating Statement of Changes in Common Stock Equity (unaudited)

Nine months ended September 30, 2014



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consolidating adjustments		Hawaiian Electric Consolidated
Balance, December 31, 2013	$	1,593,564		274,802		248,771		101	(523,674	)	$	1,593,564
Net income for common stock	108,529			13,308		15,268		—	(28,576	)	108,529
Other comprehensive income (loss), net of taxes	32			(2	)	—		—	2		32
Common stock dividends	(66,369		)	(8,720	)	(10,762	)	—	19,482		(66,369		)
Common stock issuance expenses	(5		)	—		—		—	—		(5		)
Balance, September 30, 2014	$	1,635,751		279,388		253,277		101	(532,766	)	$	1,635,751

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Statement of Changes in Common Stock Equity (unaudited)

Nine months ended September 30, 2013



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries		Consolidating adjustments		Hawaiian Electric Consolidated
Balance, December 31, 2012	$	1,472,136		268,908		228,927		104		(497,939	)	$	1,472,136
Net income (loss) for common stock	90,939			14,744		15,704		(2	)	(30,446	)	90,939
Other comprehensive income (loss), net of taxes	52			(2	)	—		—		2		52
Common stock dividends	(61,183		)	(10,790	)	(10,513	)	—		21,303		(61,183		)
Balance, September 30, 2013	$	1,501,944		272,860		234,118		102		(507,080	)	$	1,501,944

Schedule of condensed consolidating statement of cash flows

Consolidating Statement of Cash Flows (unaudited)

Nine months ended September 30, 2014



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consolidating adjustments		Hawaiian Electric Consolidated
Cash flows from operating activities
Net income	$	109,339		13,708		15,554		—	(28,576	)	$	110,025
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in earnings of subsidiaries	(28,651		)	—		—		—	28,576		(75		)
Common stock dividends received from subsidiaries	19,557			—		—		—	(19,482	)	75
Depreciation of property, plant and equipment	81,903			26,926		15,961		—	—		124,790
Other amortization	765			1,950		1,947		—	—		4,662
Increase in deferred income taxes	52,274			5,146		9,972		—	—		67,392
Change in tax credits, net	4,725			687		404		—	—		5,816
Allowance for equity funds used during construction	(4,557		)	(328	)	(48	)	—	—		(4,933		)
Change in cash overdraft	—			—		(1,038	)	—	—		(1,038		)
Changes in assets and liabilities:
Increase in accounts receivable	(17,540		)	(4,714	)	(442	)	—	2,965		(19,731		)
Decrease (increase) in accrued unbilled revenues	(554		)	626		899		—	—		971
Decrease in fuel oil stock	11,328			219		4,237		—	—		15,784
Decrease (increase) in materials and supplies	875			(987	)	(1,483	)	—	—		(1,595		)
Decrease (increase) in regulatory assets	(15,159		)	(2,594	)	222		—	—		(17,531		)
Decrease in accounts payable	(70,916		)	(1,807	)	(5,170	)	—	—		(77,893		)
Change in prepaid and accrued income and utility revenue taxes	(18,131		)	(1,310	)	1,366		—	—		(18,075		)
Decrease in defined benefit pension and other postretirement benefit plans liability	(422		)	—		(326	)	—	—		(748		)
Change in other assets and liabilities	(31,754		)	(3,886	)	(3,024	)	—	(2,965	)	(41,629		)
Net cash provided by operating activities	93,082			33,636		39,031		—	(19,482	)	146,267
Cash flows from investing activities
Capital expenditures	(163,333		)	(33,212	)	(32,560	)	—	—		(229,105		)
Contributions in aid of construction	12,352			6,229		3,159		—	—		21,740
Advances from (to) affiliates	(4,961		)	1,000		—		—	3,961		—
Net cash used in investing activities	(155,942		)	(25,983	)	(29,401	)	—	3,961		(207,365		)
Cash flows from financing activities
Common stock dividends	(66,369		)	(8,720	)	(10,762	)	—	19,482		(66,369		)
Preferred stock dividends of Hawaiian Electric and subsidiaries	(810		)	(400	)	(286	)	—	—		(1,496		)
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less	83,987			1,000		3,961		—	(3,961	)	84,987
Other	(337		)	(50	)	(75	)	—	—		(462		)
Net cash provided by (used in) financing activities	16,471			(8,170	)	(7,162	)	—	15,521		16,660
Net increase (decrease) in cash and cash equivalents	(46,389		)	(517	)	2,468		—	—		(44,438		)
Cash and cash equivalents, beginning of period	61,245			1,326		153		101	—		62,825
Cash and cash equivalents, end of period	$	14,856		809		2,621		101	—		$	18,387

Consolidating Statement of Cash Flows (unaudited)

Nine months ended September 30, 2013



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries		Consolidating adjustments		Hawaiian Electric Consolidated
Cash flows from operating activities
Net income (loss)	$	91,749		15,144		15,990		(2	)	(30,446	)	$	92,435
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Equity in earnings of subsidiaries	(30,522		)	—		—		—		30,446		(76		)
Common stock dividends received from subsidiaries	21,379			—		—		—		(21,303	)	76
Depreciation of property, plant and equipment	75,150			25,641		15,074		—		—		115,865
Other amortization	(228		)	1,075		1,623		—		—		2,470
Increase in deferred income taxes	31,361			7,165		9,488		—		—		48,014
Change in tax credits, net	3,773			119		618		—		—		4,510
Allowance for equity funds used during construction	(3,144		)	(552	)	(334	)	—		—		(4,030		)
Changes in assets and liabilities:
Decrease (increase) in accounts receivable	37,894			(2,552	)	3,999		—		2,736		42,077
Decrease (increase) in accrued unbilled revenues	(4,381		)	(1,727	)	505		—		—		(5,603		)
Decrease in fuel oil stock	17,945			870		5,517		—		—		24,332
Increase in materials and supplies	(5,392		)	(1,706	)	(1,251	)	—		—		(8,349		)
Increase in regulatory assets	(37,032		)	(7,165	)	(9,117	)	—		—		(53,314		)
Decrease in accounts payable	(10,435		)	(3,343	)	(9,196	)	—		—		(22,974		)
Change in prepaid and accrued income and utility revenue taxes	(7,122		)	(3,566	)	(4,728	)	—		—		(15,416		)
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability	1,744			(191	)	(65	)	—		—		1,488
Change in other assets and liabilities	(10,562		)	(1,821	)	4,924		—		(2,736	)	(10,195		)
Net cash provided by (used in) operating activities	172,177			27,391		33,047		(2	)	(21,303	)	211,310
Cash flows from investing activities
Capital expenditures	(164,423		)	(35,900	)	(37,546	)	—		—		(237,869		)
Contributions in aid of construction	15,699			6,160		1,774		—		—		23,633
Other	623			(196	)	—		—				427
Advances from (to) affiliates	(13,600		)	11,050		—		—		2,550		—
Net cash used in investing activities	(161,701		)	(18,886	)	(35,772	)	—		2,550		(213,809		)
Cash flows from financing activities
Common stock dividends	(61,183		)	(10,790	)	(10,513	)	—		21,303		(61,183		)
Preferred stock dividends of Hawaiian Electric and subsidiaries	(810		)	(400	)	(286	)	—		—		(1,496		)
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less	62,196			—		13,600		—		(2,550	)	73,246
Other	(38		)	(2	)	(2	)	—		—		(42		)
Net cash provided by (used in) financing activities	165			(11,192	)	2,799		—		18,753		10,525
Net decrease in cash and cash equivalents	10,641			(2,687	)	74		(2	)	—		8,026
Cash and cash equivalents, beginning of period	8,265			5,441		3,349		104		—		17,159
Cash and cash equivalents, end of period	$	18,906		2,754		3,423		102		—		$	25,185

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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