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Income taxes (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Components of income taxes attributable to net income for common stock | The components of income taxes attributable to net income for common stock were as follows:
| HEI consolidated |  | Hawaiian Electric consolidated
Years ended December 31 | 2022 |  | 2021 |  | 2020 |  | 2022 |  | 2021 |  | 2020
(in thousands) |  |  |  |  |  |  |  |  |  |  |
Federal |  |  |  |  |  |  |  |  |  |  |
Current | $ | 77,595 |  |  | $ | 51,455 |  |  | $ | 23,207 |  |  | $ | 75,118 |  |  | $ | 42,794 |  |  | $ | 31,950 |
Deferred | (37,410) |  |  | (11,689) |  |  | (4,215) |  |  | (39,646) |  |  | (12,109) |  |  | (5,408) |
Deferred tax credits, net* | 4,031 |  |  | 4,611 |  |  | 10,979 |  |  | 137 |  |  | 302 |  |  | 1,549 |
| 44,216 |  |  | 44,377 |  |  | 29,971 |  |  | 35,609 |  |  | 30,987 |  |  | 28,091 |
State |  |  |  |  |  |  |  |  |  |  |
Current | 11,981 |  |  | 12,119 |  |  | 8,430 |  |  | 15,780 |  |  | 4,861 |  |  | 3,768 |
Deferred | 4,914 |  |  | 6,290 |  |  | 2,509 |  |  | (1,769) |  |  | 8,279 |  |  | 8,559 |
Deferred tax credits, net* | 56 |  |  | 21 |  |  | — |  |  | 56 |  |  | 21 |  |  | — |
| 16,951 |  |  | 18,430 |  |  | 10,939 |  |  | 14,067 |  |  | 13,161 |  |  | 12,327 |
Total | $ | 61,167 |  |  | $ | 62,807 |  |  | $ | 40,910 |  |  | $ | 49,676 |  |  | $ | 44,148 |  |  | $ | 40,418 |
* In 2022, 2021 and 2020, primarily represents federal tax credits related to Mauo’s solar-plus-storage project, deferred and amortized starting in 2022, 2021 and 2020, respectively.
Schedule of reconciliation of amount of income taxes computed at federal statutory rate | A reconciliation of the amount of income taxes computed at the federal statutory rate to the amount provided in the consolidated statements of income was as follows:
| HEI consolidated |  | Hawaiian Electric consolidated
Years ended December 31 | 2022 |  | 2021 |  | 2020 |  | 2022 |  | 2021 |  | 2020
(in thousands) |  |  |  |  |  |  |  |  |  |  |
Amount at the federal statutory income tax rate | $ | 63,881 |  |  | $ | 65,281 |  |  | $ | 50,531 |  |  | $ | 50,526 |  |  | $ | 46,995 |  |  | $ | 44,468 |
Increase (decrease) resulting from: |  |  |  |  |  |  |  |  |  |  |
State income taxes, net of federal income tax benefit | 14,438 |  |  | 15,735 |  |  | 9,448 |  |  | 11,026 |  |  | 10,323 |  |  | 9,658 |
Net deferred tax asset (liability) adjustment related to the Tax Act | (9,886) |  |  | (9,886) |  |  | (11,267) |  |  | (9,886) |  |  | (9,886) |  |  | (11,267) |
Other, net | (7,266) |  |  | (8,323) |  |  | (7,802) |  |  | (1,990) |  |  | (3,284) |  |  | (2,441) |
Total | $ | 61,167 |  |  | $ | 62,807 |  |  | $ | 40,910 |  |  | $ | 49,676 |  |  | $ | 44,148 |  |  | $ | 40,418 |
Effective income tax rate (%) | 20.1 |  |  | 20.2 |  |  | 17.0 |  |  | 20.6 |  |  | 19.7 |  |  | 19.1 |
Schedule of deferred tax assets and liabilities | The tax effects of book and tax basis differences that give rise to deferred tax assets and liabilities were as follows:
| HEI consolidated |  | Hawaiian Electric consolidated
December 31 | 2022 |  | 2021 |  | 2022 |  | 2021
(in thousands) |  |  |  |  |  |  |
Deferred tax assets |  |  |  |  |  |  |
Regulatory liabilities, excluding amounts attributable to property, plant and equipment | $ | 82,488 |  |  | $ | 87,817 |  |  | $ | 82,488 |  |  | $ | 87,817 |
Operating lease liabilities | 45,016 |  |  | 35,449 |  |  | 37,472 |  |  | 29,661 |
Retirement benefits | 7,692 |  |  | — |  |  | 6,852 |  |  | — |
Revenue taxes | 51,392 |  |  | 35,040 |  |  | 51,392 |  |  | 35,040 |
Allowance for bad debts | 22,734 |  |  | 26,217 |  |  | 2,195 |  |  | 7,156 |
Available-for-sale investments | 120,405 |  |  | 11,728 |  |  | — |  |  | — |
Other 1 | 39,399 |  |  | 46,790 |  |  | 20,287 |  |  | 20,529 |
Total deferred tax assets | 369,126 |  |  | 243,041 |  |  | 200,686 |  |  | 180,203 |
Deferred tax liabilities |  |  |  |  |  |  |
Property, plant and equipment related | 511,832 |  |  | 500,659 |  |  | 497,929 |  |  | 490,713 |
Operating lease right-of-use assets | 44,461 |  |  | 35,271 |  |  | 37,472 |  |  | 29,661 |
Regulatory assets, excluding amounts attributable to property, plant and equipment | 22,183 |  |  | 23,700 |  |  | 22,183 |  |  | 23,700 |
Retirement benefits | — |  |  | 6,863 |  |  | — |  |  | 8,261 |
Other | 53,112 |  |  | 61,308 |  |  | 27,532 |  |  | 36,502 |
Total deferred tax liabilities | 631,588 |  |  | 627,801 |  |  | 585,116 |  |  | 588,837 |
Net deferred income tax liability | $ | 262,462 |  |  | $ | 384,760 |  |  | $ | 384,430 |  |  | $ | 408,634 |
1 As of December 31, 2022, HEI consolidated has deferred tax assets of $4.3 million relating to the benefit of state tax credit carryforwards of $5.6 million. These state tax credit carryforwards primarily relate to the West Loch PV project and do not expire. The Company concluded that as of December 31, 2022, a valuation allowance is not required.
Schedule of changes in total unrecognized tax benefits | The following is a reconciliation of the Company’s liability for unrecognized tax benefits for 2022, 2021 and 2020.
| HEI consolidated |  | Hawaiian Electric consolidated
(in millions) | 2022 |  | 2021 |  | 2020 |  | 2022 |  | 2021 |  | 2020
Unrecognized tax benefits, January 1 | $ | 17.1 |  |  | $ | 12.7 |  |  | $ | 2.2 |  |  | $ | 11.6 |  |  | $ | 12.7 |  |  | $ | 1.7 |
Additions based on tax positions taken during the year | 19.0 |  |  | 2.8 |  |  | 0.2 |  |  | 0.1 |  |  | 0.3 |  |  | 0.2 |
Reductions based on tax positions taken during the year | (3.5) |  |  | (0.5) |  |  | — |  |  | — |  |  | — |  |  | — |
Additions for tax positions of prior years | 0.6 |  |  | 7.6 |  |  | 11.6 |  |  | 0.2 |  |  | 0.2 |  |  | 11.6 |
Reductions for tax positions of prior years | (2.6) |  |  | (5.5) |  |  | (0.1) |  |  | (0.2) |  |  | (1.6) |  |  | (0.1) |
Lapses of statute of limitations | — |  |  | — |  |  | (0.2) |  |  | — |  |  | — |  |  | (0.2) |
Settlement | — |  |  | — |  |  | (1.0) |  |  | — |  |  | — |  |  | (0.5) |
Unrecognized tax benefits, December 31 | $ | 30.6 |  |  | $ | 17.1 |  |  | $ | 12.7 |  |  | $ | 11.7 |  |  | $ | 11.6 |  |  | $ | 12.7 |

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