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Electric utility segment | 9 Months Ended
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Sep. 30, 2023
Electric Utility Subsidiary [Abstract] |
Electric utility segment | Electric utility segment Unconsolidated variable interest entities. Power purchase agreements. As of September 30, 2023, 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 condensed consolidated financial statements. However, Hamakua Energy is an indirect subsidiary of Pacific Current and is consolidated in HEI’s condensed 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 unaudited condensed 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 (vii) 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 of the Condensed Consolidated Financial Statements Power purchase agreements. Purchases from all IPPs were as follows:
|  |  |  | Three months ended September 30 |  | Nine months ended September 30
(in millions) |  |  |  |  |  | 2023 |  | 2022 |  | 2023 |  | 2022
Kalaeloa |  |  |  |  |  | $ | 77 |  |  | $ | 101 |  |  | $ | 211 |  |  | $ | 244 |
AES Hawaii 1 |  |  |  |  |  | — |  |  | 21 |  |  | — |  |  | 82 |
HPOWER |  |  |  |  |  | 17 |  |  | 18 |  |  | 51 |  |  | 56 |
Hamakua Energy |  |  |  |  |  | 13 |  |  | 16 |  |  | 52 |  |  | 46 |
Puna Geothermal Venture |  |  |  |  |  | 7 |  |  | 13 |  |  | 24 |  |  | 37 |
Wind IPPs |  |  |  |  |  | 42 |  |  | 37 |  |  | 99 |  |  | 93 |
Solar IPPs |  |  |  |  |  | 21 |  |  | 18 |  |  | 57 |  |  | 44 |
Other IPPs 2 |  |  |  |  |  | 1 |  |  | 1 |  |  | 5 |  |  | 5 |
Total IPPs |  |  |  |  |  | $ | 178 |  |  | $ | 225 |  |  | $ | 499 |  |  | $ | 607 |
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. Kalaeloa Partners, L.P. Under a 1988 PPA, as amended, Hawaiian Electric is committed to purchase 208 MW of firm capacity from Kalaeloa. In October 2021, Hawaiian Electric and Kalaeloa signed the Amended and Restated Power Purchase Agreement for Firm Dispatchable Capacity and Energy (Amended and Restated PPA) to extend the PPA for an additional term of 10 years. The Amended and Restated PPA was approved by the PUC on November 23, 2022. The new pricing provisions in the Amended and Restated PPA took effect on January 1, 2023. Stage 1 Renewable PPAs. In February 2018, the Utilities issued their Stage 1 renewable request for proposals and have procured eight renewable PPAs with a total of 274.5 MW capacity. The total annual payments to be made by the Utilities under the eight renewable PPAs are estimated at $71.2 million. The Utilities have received PUC approvals to recover the total projected annual payments under the eight renewable PPAs through the purchased power adjustment clause (PPAC) to the extent such costs are not included in base rates. The Utilities have accounted for the battery portion of three PPAs that were placed in service, including the AES Waikoloa Solar project that began commercial operation on April 21, 2023, which has a capacity of 30 MW with 120 MWh batteries, as finance leases and recorded lease liabilities with corresponding right-of-use assets of $124 million. The timing of the Utilities’ recognition of the expense conforms to ratemaking treatment for the Utilities’ recovery of the cost of electricity and is included in purchased power for the interest and amortization of financing leases related to PPAs. Any material differences between expense recognition and timing of payments are deferred as a regulatory asset or liability in order to match what is being recovered for ratemaking purposes. 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 provided that they would execute an amended and restated PPA dated May 9, 2017, provided that the amended and restated PPA was still subject to PUC approval. On May 23, 2022, 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. Furthermore, Hu Honua indicated that it intends to reassert its federal antitrust and other claims against the Hawaiian Electric defendants. Hu Honua also stated that to take into account the numerous relevant events which have occurred since its filing of its second amended complaint on January 29, 2018, Hu Honua intends to move for leave to file an amended and supplemental complaint. Hu Honua has yet to file a motion for leave. 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 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. 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. The conversion of the two generating units will be performed after the retirement of Kahului Power Plant Units 3 and 4, which is targeted for the end of 2027. 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 September 30, 2023, $24.7 million has been incurred for the project. 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 federal 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 $2.6 million as of September 30, 2023, 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. Additionally, on November 24, 2021, the current landowners of the Site, Misaki’s, Inc., filed a lawsuit against Hawaiian Electric (as alleged successor in interest to Molokai Electric, the prior owner of the Site) in the Circuit Court of the Second Circuit of the State of Hawaii (removed to the U.S. District Court for the District of Hawaii). The complaint, which was subsequently amended to include Maui Electric, alleges that Hawaiian Electric is responsible for remediation of the Site based on the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA), and the Hawaii Environmental Response Law under Hawaii Revised Statutes Chapter 128D, as well as being liable on contractual claims related to a short leaseback period during the transition of ownership from Molokai Electric. On August 24, 2023, a settlement was reached between the parties. 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 September 30, 2023, the reserve account balance recorded by Hawaiian Electric to address the PCB contamination was $9.7 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. Kapolei pipeline. James Campbell Company (JCC) through its wholly owned subsidiary, Aina Nui Corporation discovered petroleum contamination in ground water during construction of a project in Kapolei in late 2022 and incurred approximately $0.8 million in remediation costs. JCC made a joint demand for these costs in June 2023 to the two companies, including Hawaiian Electric, that have pipelines in the area of the contamination. This demand was updated on September 1, 2023 to $1.2 million to incorporate additional costs. Based on the nature of the contamination, it is not clear whether it is consistent with what was in the Utilities’ pipelines or is wholly or partially the responsibility of the other pipeline owner. 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. 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 will continue as currently implemented (e.g., the Energy Cost Recovery 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 new PIMs, a new SSM, and extended the timeframe for an existing PIM. Specifically, the PUC approved (1) a new (penalty-only) generation-caused interruption reliability PIM, (2) a new (penalty/reward) interconnection requirements study (IRS) PIM, (3) a new (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 13, 2023. 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. The Utilities requested PUC approval of the suspension request by December 28, 2023. 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 IRS PIM. The proposed PIM tariff modifications are intended to become effective on January 1, 2024, to the extent they can be approved by December 31, 2023. A decision on the stipulation is pending PUC approval. Revenue adjustment mechanism. Prior to the implementation of the PBR Framework, the revenue adjustment mechanism (RAM) was a major component of the previously established regulatory framework. The RAM was based on the lesser of: (a) an inflationary adjustment for certain O&M expenses and return on investment for certain rate base changes, or (b) cumulative annual compounded increase in Gross Domestic Product Price Index applied to annualized target revenues (the RAM Cap). Under the PBR Framework, the ARA mechanism replaced the RAM, and became effective on June 1, 2021. 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 unless modified with PUC approval. 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 implementation of the ARA occurred on June 1, 2021. Pursuant to PUC orders, the Utilities deferred certain COVID-19 related costs in regulatory asset accounts through December 31, 2021. In June 2022, the Utilities submitted an application to seek recovery of the COVID-19 related deferred costs, not to exceed the amount of $27.8 million, through the Z-factor over three years. Annual requests will be limited to actual costs incurred. The Utilities also proposed to accelerate flow-through of the Enterprise Resource Planning system 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 if the PUC approves the application. As of September 30, 2023, the Utilities have recorded $8.8 million in regulatory assets for deferral of COVID-19 related costs. The updated amounts have been reflected in the Utilities’ COVID-19 Quarterly Reports to the PUC filed on October 31, 2023. Earnings sharing mechanism. The PBR Framework established a symmetrical ESM for achieved rate-making ROACE outside of a 300 basis points dead band 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 dead band 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 September 30, 2023, the Utilities annualized MPIR and EPRM revenue amounts totaled $31.1 million, including revenue taxes, for the Schofield Generating Station ($16.5 million), West Loch PV project ($3.3 million), Grid Modernization Strategy (GMS) Phase 1 project ($11.2 million for all three utilities) and Waiawa UFLS project ($0.1 million) that included the 2023 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 2023 MPIR amounts for the Schofield Generating Station, West Loch PV, GMS Phase 1, and Waiawa UFLS projects effective June 1, 2023 through the RBA rate adjustment. As of September 30, 2023, the PUC approved two EPRM applications for projects totaling $41 million to the extent that the project costs are not included in rates. Currently, the Utilities are seeking EPRM recovery for five projects with total project costs up to $488 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. 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 shall be considered approved as submitted. The PUC may modify the pilot as originally proposed, and the Utilities shall 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 February 28, 2023, the Utilities filed their annual Pilot Update report covering pilot projects that were active during 2022, including reporting on pilot projects that were initiated prior to the commencement of the Pilot Process. The Pilot Update reported on approximately $0.4 million of 2022 recorded pilot project costs including revenue taxes for the Utilities. The 2022 recorded pilot project costs were included in the Utilities’ proposed adjustments to target revenue in the 2023 spring revenue report filed on March 28, 2023. On March 22, 2023, the PUC issued an order temporarily suspending the filing of Pilot Notices, pending a stakeholder meeting which was convened on June 15, 2023 to discuss potential improvements to the Pilot Process. On July 28, 2023, the PUC issued an order providing additional guidance on the Pilot Process, specifying expectations for future Pilot Notices submitted pursuant to the Pilot Process. The order lifted the temporary suspension on submitting Pilot Notices and the Utilities may file Pilot Notices consistent with the approved Workplan. Performance incentive mechanisms. The PUC has established the following PIMs and SSMs: (1) Service Quality performance incentives, (2) Phase 1 Request for proposal (RFP) PIM for procurement of low-cost renewable energy, (3) Phase 2 RFP PIMs for generation and generation plus storage project, and grid services and standalone storage, (4) PIMs established in the PBR D&O and (5) PIMs and a SSM established in the June 2022 D&O. •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 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 20 basis points applied to the common equity share of each respective utility’s approved rate base (or maximum penalties of approximately $6.8 million - for both indices in total for the three utilities). For the 2022 evaluation period, the Utilities incurred $0.1 million in penalties. •Call Center Performance measured by the percentage of calls answered within 30 seconds. Target performance is 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. 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). •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. In September 2023, the Utilities accrued $0.1 million (for Hawaiian Electric) in incentives related to one PPA. The net reward was reflected in the 2023 fall revenue report filing. •Phase 2 RFP PIMs. The PUC order issued on October 9, 2019 establishes pricing thresholds, timelines to complete contracting, and other performance criteria for the performance incentive eligibility. The PIMs provide incentives only without penalties. On July 9, 2020, the Utilities filed two Grid Services Purchase Agreements (GSPA) for the Grid Service RFP that potentially qualify for a demand response PIM; however, details of the incentive metrics will be determined by the PUC. On September 15, 2020, the Utilities filed one PPA that qualified for a PIM incentive and on February 16, 2021, the Utilities filed one additional PPA that qualified for a declining PIM incentive. The PUC approved two PPAs in September 2021 and November 2021 and two GSPAs on December 31, 2020. Based on the two approved PPAs, the Utilities recognized $0.1 million in rewards in 2021. In December 2022 and March 2023, these two PPAs were terminated or declared null and void. •The PUC previously established the following two PIMs in its PBR D&O, which were approved in an order issued on March 23, 2021 and became effective on June 1, 2021. In its June 2022 D&O, the PUC modified and extended the Interim Grid Services PIM. •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. •Interim Grid Services - A PIM that provides financial rewards on a $/kW basis for the acquisition of eligible grid services. The eligibility period for this PIM initially commenced on January 1, 2021 and was scheduled to end on December 31, 2022. However, the June 2022 D&O extended the eligibility period for this PIM through December 31, 2023. The June 2022 D&O also increased the incentive rate for the acquisition of load reduction grid services. During the PIM performance period, newly acquired committed capacity in the Oahu Scheduled Dispatch Program (SDP), the Oahu Fast DR program (up to the 7 MW cap), and the Maui SDP program shall qualify for the incentive. The Utilities can earn a maximum reward of $1.5 million from 2021 through 2023. In 2022, the Utilities earned $0.04 million in rewards. •The PUC also previously established the following three PIMs in its PBR D&O, which were approved by the PUC on May 17, 2021 and became effective on June 1, 2021. •Interconnection Approval PIM that provides financial rewards and penalties for interconnection times for DER systems <100 kW in size. The Utilities can earn a total annual maximum reward of $3.0 million or a total annual maximum penalty of $0.9 million. In 2022, the Utilities earned $3.0 million in rewards. •Low-to-Moderate Income (LMI) Energy Efficiency PIM that provides 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 can earn a total annual maximum reward of $2.0 million. The PIM will initially have a duration of three years and be subject to an annual review. The evaluation period is based on Hawaii Energy’s program year with the initial evaluation year being the period of July 1, 2021 through June 30, 2022. The Utilities earned $0.5 million in rewards for the program period ending June 30, 2022. •Advanced Metering Infrastructure Utilization PIM that provides financial rewards for leveraging grid modernization investments and engaging customers beyond what is already planned in the Phase 1 Grid Modernization program. The Utilities can earn a total annual maximum reward of $2.0 million. The PIM will initially have a duration of three years after which it will be re-evaluated. The evaluation period commenced on January 1, 2021. •The PUC established the following PIMs and SSM in its June 2022 D&O, which became effective on January 1, 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). •An IRS 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. •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 2022 evaluation period, the Utilities earned $3.4 million ($2.5 million for Hawaiian Electric, $0.4 million for Hawaii Electric Light and $0.5 million for Maui Electric) in rewards net of penalties. The net rewards related to 2022 were reflected in the 2023 PIMs annual report and 2023 spring revenue report filings. 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. The Utilities’ fall revenue report was filed on October 31, 2023, which is subject to PUC approval. The Utilities reflected in the 2023 fall revenue report the COVID-19 related deferred costs to be recovered, and the Enterprise Resource Planning system benefits savings to be returned to Hawaii Electric Light and Maui Electric customers, respectively in 2024. These adjustments to the ARA are pending the PUC’s review and approval. (See discussion under “Regulatory assets and liabilities” in Note 4 of the Condensed Consolidated Financial Statements). The filing reflected ARA revenues for 2023 to be collected from January 1 through December 31, 2024, as follows:
(in millions) |  | Hawaiian Electric |  | Hawaii Electric Light |  | Maui Electric |  | Total
2024 ARA revenues |  | $ | 16.6 |  |  | $ | 4.1 |  |  | $ | 4.0 |  |  | $ | 24.7 |
Management Audit savings commitment |  | (4.6) |  |  | (1.0) |  |  | (1.0) |  |  | (6.6) |
Enterprise Resource Planning system benefits savings |  | — |  |  | (1.3) |  |  | (1.9) |  |  | (3.2) |
COVID-19 related cost recovery |  | 2.6 |  |  | 0.2 |  |  | 0.6 |  |  | 3.4 |
Net 2024 ARA revenues |  | $ | 14.6 |  |  | $ | 2.0 |  |  | $ | 1.7 |  |  | $ | 18.3 |
Note: Columns may not foot due to rounding. The proposed net incremental amounts between the 2023 spring and fall revenue reports are shown in the following table. The amounts are to be collected (refunded) from January 1 through December 31, 2024 under the RBA rate tariffs, which were proposed in the 2023 fall revenue report filing and are subject to PUC approval.
(in millions) |  | Hawaiian Electric |  | Hawaii Electric Light |  | Maui Electric |  | Total
Incremental RAM revenues and ARA revenues |  | $ | 19.2 |  |  | $ | 3.0 |  |  | $ | 2.7 |  |  | $ | 24.9 |
Annual change in accrued RBA balance through September 30, 2023 (and associated revenue taxes) |  | 3.6 |  |  | (0.3) |  |  | 0.1 |  |  | 3.4 |
Incremental Performance Incentive Mechanisms (net) |  | 0.1 |  |  | — |  |  | — |  |  | 0.1 |
Net incremental amount to be collected under the RBA rate tariffs |  | $ | 22.9 |  |  | $ | 2.7 |  |  | $ | 2.8 |  |  | $ | 28.4 |
Note: Columns may not foot due to rounding. Regulatory assets and liabilities. 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 new 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. In June 2022, to mitigate the impact of the Utilities’ request for recovery of the COVID-19 related costs on customers, the Utilities also proposed 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, pending the PUC’s approval. See “Regulatory assets for COVID-19 related costs” section below. As of September 30, 2023, the Utilities’ regulatory liability was $11.9 million ($3.0 million for Hawaiian Electric, $3.5 million for Hawaii Electric Light and $5.4 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. The most recent AESB report was filed on February 14, 2023 for the period January 1 through December 31, 2022. Regulatory assets for COVID-19 related costs. On May 4, 2020, the PUC issued an order, authorizing all utilities, including the Utilities, to establish regulatory assets to record costs resulting from the suspension of disconnections of service during the pendency of the Governor’s Emergency Proclamation and until otherwise ordered by the PUC. In future proceedings, the PUC will consider the reasonableness of the costs, the appropriate period of recovery, any amount of carrying costs thereon, and any savings directly attributable to suspension of disconnects, and other related matters. As part of the order, the PUC prohibits the Utilities from charging late payment fees on past due payments. As the moratorium on customer disconnections ended on May 31, 2021, the Utilities have resumed charging late payment fees in July 2021. Pursuant to PUC orders, the deferral of COVID-19 related costs by the Utilities ended on December 31, 2020. On October 1, 2021, the PUC approved the Utilities’ request to extend the deferral period to December 31, 2021. In December 2021, to keep customers connected and provide some relief to customers experiencing financial difficulty during the pandemic, the Utilities committed to issuing $2 million in bill credits to qualified customers. The Utilities will not seek recovery for the issued bill credits, resulting in a reduction to the cumulative deferred costs. On June 9, 2022, the Utilities filed an application with the PUC, requesting recovery of a portion of the COVID-19 related deferral costs, net of cost savings realized, not to exceed the amount of $27.8 million over three years, through the Z-factor, from June 2023 through May 2026. Annual requests will be limited to actual costs incurred. This adjustment to the ARA is subject to PUC approval. On January 25, 2023, the PUC issued an order to modify the procedural schedule to allow more time for more discovery and consideration of the application. As of September 30, 2023, the Utilities have recorded $8.8 million in regulatory assets for deferral of COVID-19 related costs. Regulatory assets for suspension of disconnections related costs. Based on the 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 January 5, 2024 (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 September 30, 2023, the Utilities have recorded $0.1 million in regulatory assets for the incremental costs incurred due to the suspension of disconnections. Army privatization. On October 30, 2020, the PUC approved Hawaiian Electric’s 50-year contract with the U.S. Army to own, operate and maintain the electric distribution system serving the U.S. Army’s 12 installations on Oahu, including Schofield Barracks, Wheeler Army Airfield, Tripler Army Medical Center, Fort Shafter, and Army housing areas. On March 1, 2022, Hawaiian Electric acquired the Army’s existing distribution system for a purchase price of $14.5 million, and will pay the Army in the form of a monthly credit against the monthly utility services charge over the 50-year term of the contract. The acquisition of additional assets contemplated in the contract, with an estimated value of $4 million, is planned for 2024. Hawaiian Electric took ownership and all responsibilities for operation and maintenance of the system on March 1, 2022 for a 50-year term after a one-year transition period. Under the contract, Hawaiian Electric will make initial capital upgrades over the first six years of the contract and replace aging infrastructure over the 50-year term. In addition to its regular monthly electricity bill, the Army will pay Hawaiian Electric a monthly utility services charge to cover operations and maintenance expenses and provide recovery for capital upgrades, capital replacements, and the existing distribution system based on a rate of return determined by the PUC for regulated utility investments, as well as depreciation expense. The PUC requires Hawaiian Electric to file regular periodic reports on the activities and investments in fulfillment of the contract and will review the major projects planned on behalf of the Army. Condensed consolidating financial information. Condensed consolidating financial information for Hawaiian Electric and its subsidiaries are presented for the three and nine month periods ended September 30, 2023 and 2022, and as of September 30, 2023 and December 31, 2022. 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. Hawaiian Electric Company, Inc. and Subsidiaries Condensed Consolidating Statement of Income Three months ended September 30, 2023
(in thousands) |  | Hawaiian Electric |  | Hawaii Electric Light |  | Maui Electric |  | Other subsidiary |  | Consolidating adjustments |  | Hawaiian Electric Consolidated
Revenues |  | $ | 570,323 |  |  | 116,192 |  |  | 108,472 |  |  | — |  |  | — |  |  | $ | 794,987 |
Expenses |  |  |  |  |  |  |  |  |  |  |  |
Fuel oil |  | 196,223 |  |  | 30,956 |  |  | 40,259 |  |  | — |  |  | — |  |  | 267,438 |
Purchased power |  | 132,536 |  |  | 30,265 |  |  | 14,994 |  |  | — |  |  | — |  |  | 177,795 |
Other operation and maintenance |  | 83,528 |  |  | 21,351 |  |  | 37,629 |  |  | — |  |  | — |  |  | 142,508 |
Depreciation |  | 41,276 |  |  | 10,635 |  |  | 9,254 |  |  | — |  |  | — |  |  | 61,165 |
Taxes, other than income taxes |  | 53,511 |  |  | 10,857 |  |  | 10,355 |  |  | — |  |  | — |  |  | 74,723 |
Total expenses |  | 507,074 |  |  | 104,064 |  |  | 112,491 |  |  | — |  |  | — |  |  | 723,629 |
Operating income (loss) |  | 63,249 |  |  | 12,128 |  |  | (4,019) |  |  | — |  |  | — |  |  | 71,358 |
Allowance for equity funds used during construction |  | 3,005 |  |  | 366 |  |  | 629 |  |  | — |  |  | — |  |  | 4,000 |
Equity in earnings of subsidiaries |  | 3,005 |  |  | — |  |  | — |  |  | — |  |  | (3,005) |  |  | — |
Retirement defined benefits credit (expense)—other than service costs |  | 992 |  |  | 163 |  |  | (23) |  |  | — |  |  | — |  |  | 1,132 |
Interest expense and other charges, net |  | (16,295) |  |  | (2,988) |  |  | (3,164) |  |  | — |  |  | — |  |  | (22,447) |
Allowance for borrowed funds used during construction |  | 1,047 |  |  | 117 |  |  | 208 |  |  | — |  |  | — |  |  | 1,372 |
Income (loss) before income taxes |  | 55,003 |  |  | 9,786 |  |  | (6,369) |  |  | — |  |  | (3,005) |  |  | 55,415 |
Income taxes |  | 11,272 |  |  | 2,234 |  |  | (2,050) |  |  | — |  |  | — |  |  | 11,456 |
Net income (loss) |  | 43,731 |  |  | 7,552 |  |  | (4,319) |  |  | — |  |  | (3,005) |  |  | 43,959 |
Preferred stock dividends of subsidiaries |  | — |  |  | 133 |  |  | 95 |  |  | — |  |  | — |  |  | 228 |
Net income (loss) attributable to Hawaiian Electric |  | 43,731 |  |  | 7,419 |  |  | (4,414) |  |  | — |  |  | (3,005) |  |  | 43,731 |
Preferred stock dividends of Hawaiian Electric |  | 270 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 270 |
Net income (loss) for common stock |  | $ | 43,461 |  |  | 7,419 |  |  | (4,414) |  |  | — |  |  | (3,005) |  |  | $ | 43,461 |
Hawaiian Electric Company, Inc. and Subsidiaries Condensed Consolidating Statement of Comprehensive Income Three months ended September 30, 2023
(in thousands) |  | Hawaiian Electric |  | Hawaii Electric Light |  | Maui Electric |  | Other subsidiary |  | Consolidating adjustments |  | Hawaiian Electric Consolidated
Net income (loss) for common stock |  | $ | 43,461 |  |  | 7,419 |  |  | (4,414) |  |  | — |  |  | (3,005) |  |  | $ | 43,461 |
Other comprehensive loss, net of taxes: |  |  |  |  |  |  |  |  |  |  |  |
Retirement benefit plans: |  |  |  |  |  |  |  |  |  |  |  |
Adjustment for amortization of prior service credit and net gains recognized during the period in net periodic benefit cost, net of taxes |  | (547) |  |  | (55) |  |  | (71) |  |  | — |  |  | 126 |  |  | (547) |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes |  | 470 |  |  | 54 |  |  | 63 |  |  | — |  |  | (117) |  |  | 470 |
Other comprehensive loss, net of taxes |  | (77) |  |  | (1) |  |  | (8) |  |  | — |  |  | 9 |  |  | (77) |
Comprehensive income (loss) attributable to common shareholder |  | $ | 43,384 |  |  | 7,418 |  |  | (4,422) |  |  | — |  |  | (2,996) |  |  | $ | 43,384 |
Hawaiian Electric Company, Inc. and Subsidiaries Condensed Consolidating Statement of Income Three months ended September 30, 2022
(in thousands) |  | Hawaiian Electric |  | Hawaii Electric Light |  | Maui Electric |  | Other subsidiary |  | Consolidating adjustments |  | Hawaiian Electric Consolidated
Revenues |  | $ | 693,281 |  |  | 130,858 |  |  | 131,910 |  |  | — |  |  | (78) |  |  | $ | 955,971 |
Expenses |  |  |  |  |  |  |  |  |  |  |  |
Fuel oil |  | 280,447 |  |  | 40,540 |  |  | 62,615 |  |  | — |  |  | — |  |  | 383,602 |
Purchased power |  | 171,470 |  |  | 37,263 |  |  | 16,476 |  |  | — |  |  | — |  |  | 225,209 |
Other operation and maintenance |  | 77,115 |  |  | 21,882 |  |  | 22,113 |  |  | — |  |  | — |  |  | 121,110 |
Depreciation |  | 39,474 |  |  | 10,350 |  |  | 8,887 |  |  | — |  |  | — |  |  | 58,711 |
Taxes, other than income taxes |  | 64,051 |  |  | 12,026 |  |  | 12,213 |  |  | — |  |  | — |  |  | 88,290 |
Total expenses |  | 632,557 |  |  | 122,061 |  |  | 122,304 |  |  | — |  |  | — |  |  | 876,922 |
Operating income |  | 60,724 |  |  | 8,797 |  |  | 9,606 |  |  | — |  |  | (78) |  |  | 79,049 |
Allowance for equity funds used during construction |  | 2,063 |  |  | 206 |  |  | 283 |  |  | — |  |  | — |  |  | 2,552 |
Equity in earnings of subsidiaries |  | 10,577 |  |  | — |  |  | — |  |  | — |  |  | (10,577) |  |  | — |
Retirement defined benefits credit (expense)—other than service costs |  | 760 |  |  | 166 |  |  | (31) |  |  | — |  |  | — |  |  | 895 |
Interest expense and other charges, net |  | (14,221) |  |  | (2,716) |  |  | (2,750) |  |  | — |  |  | 78 |  |  | (19,609) |
Allowance for borrowed funds used during construction |  | 674 |  |  | 63 |  |  | 88 |  |  | — |  |  | — |  |  | 825 |
Income before income taxes |  | 60,577 |  |  | 6,516 |  |  | 7,196 |  |  | — |  |  | (10,577) |  |  | 63,712 |
Income taxes |  | 10,543 |  |  | 1,424 |  |  | 1,483 |  |  | — |  |  | — |  |  | 13,450 |
Net income |  | 50,034 |  |  | 5,092 |  |  | 5,713 |  |  | — |  |  | (10,577) |  |  | 50,262 |
Preferred stock dividends of subsidiaries |  | — |  |  | 133 |  |  | 95 |  |  | — |  |  | — |  |  | 228 |
Net income attributable to Hawaiian Electric |  | 50,034 |  |  | 4,959 |  |  | 5,618 |  |  | — |  |  | (10,577) |  |  | 50,034 |
Preferred stock dividends of Hawaiian Electric |  | 270 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 270 |
Net income for common stock |  | $ | 49,764 |  |  | 4,959 |  |  | 5,618 |  |  | — |  |  | (10,577) |  |  | $ | 49,764 |
Hawaiian Electric Company, Inc. and Subsidiaries Condensed Consolidating Statement of Comprehensive Income Three months ended September 30, 2022
(in thousands) |  | Hawaiian Electric |  | Hawaii Electric Light |  | Maui Electric |  | Other subsidiary |  | Consolidating adjustments |  | Hawaiian Electric Consolidated
Net income for common stock |  | $ | 49,764 |  |  | 4,959 |  |  | 5,618 |  |  | — |  |  | (10,577) |  |  | $ | 49,764 |
Other comprehensive income (loss), net of taxes: |  |  |  |  |  |  |  |  |  |  |  |
Retirement benefit plans: |  |  |  |  |  |  |  |  |  |  |  |
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes |  | 5,411 |  |  | 768 |  |  | 732 |  |  | — |  |  | (1,500) |  |  | 5,411 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes |  | (5,303) |  |  | (766) |  |  | (733) |  |  | — |  |  | 1,499 |  |  | (5,303) |
Other comprehensive income (loss), net of taxes |  | 108 |  |  | 2 |  |  | (1) |  |  | — |  |  | (1) |  |  | 108 |
Comprehensive income attributable to common shareholder |  | $ | 49,872 |  |  | 4,961 |  |  | 5,617 |  |  | — |  |  | (10,578) |  |  | $ | 49,872 |
Hawaiian Electric Company, Inc. and Subsidiaries Condensed Consolidating Statement of Income Nine months ended September 30, 2023
(in thousands) |  | Hawaiian Electric |  | Hawaii Electric Light |  | Maui Electric |  | Other subsidiary |  | Consolidating adjustments |  | Hawaiian Electric Consolidated
Revenues |  | $ | 1,742,542 |  |  | 343,554 |  |  | 333,573 |  |  | — |  |  | (130) |  |  | $ | 2,419,539 |
Expenses |  |  |  |  |  |  |  |  |  |  |  |
Fuel oil |  | 663,521 |  |  | 79,187 |  |  | 138,984 |  |  | — |  |  | — |  |  | 881,692 |
Purchased power |  | 362,275 |  |  | 101,597 |  |  | 35,118 |  |  | — |  |  | — |  |  | 498,990 |
Other operation and maintenance |  | 255,728 |  |  | 64,367 |  |  | 87,089 |  |  | — |  |  | — |  |  | 407,184 |
Depreciation |  | 123,114 |  |  | 31,906 |  |  | 27,761 |  |  | — |  |  | — |  |  | 182,781 |
Taxes, other than income taxes |  | 164,510 |  |  | 31,983 |  |  | 31,541 |  |  | — |  |  | — |  |  | 228,034 |
Total expenses |  | 1,569,148 |  |  | 309,040 |  |  | 320,493 |  |  | — |  |  | — |  |  | 2,198,681 |
Operating income |  | 173,394 |  |  | 34,514 |  |  | 13,080 |  |  | — |  |  | (130) |  |  | 220,858 |
Allowance for equity funds used during construction |  | 8,604 |  |  | 1,004 |  |  | 1,465 |  |  | — |  |  | — |  |  | 11,073 |
Equity in earnings of subsidiaries |  | 25,960 |  |  | — |  |  | — |  |  | — |  |  | (25,960) |  |  | — |
Retirement defined benefits credit (expense)—other than service costs |  | 2,801 |  |  | 500 |  |  | (74) |  |  | — |  |  | — |  |  | 3,227 |
Interest expense and other charges, net |  | (45,594) |  |  | (8,794) |  |  | (9,307) |  |  | — |  |  | 130 |  |  | (63,565) |
Allowance for borrowed funds used during construction |  | 2,995 |  |  | 321 |  |  | 482 |  |  | — |  |  | — |  |  | 3,798 |
Income before income taxes |  | 168,160 |  |  | 27,545 |  |  | 5,646 |  |  | — |  |  | (25,960) |  |  | 175,391 |
Income taxes |  | 31,581 |  |  | 6,261 |  |  | 284 |  |  | — |  |  | — |  |  | 38,126 |
Net income |  | 136,579 |  |  | 21,284 |  |  | 5,362 |  |  | — |  |  | (25,960) |  |  | 137,265 |
Preferred stock dividends of subsidiaries |  | — |  |  | 400 |  |  | 286 |  |  | — |  |  | — |  |  | 686 |
Net income attributable to Hawaiian Electric |  | 136,579 |  |  | 20,884 |  |  | 5,076 |  |  | — |  |  | (25,960) |  |  | 136,579 |
Preferred stock dividends of Hawaiian Electric |  | 810 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 810 |
Net income for common stock |  | $ | 135,769 |  |  | 20,884 |  |  | 5,076 |  |  | — |  |  | (25,960) |  |  | $ | 135,769 |
Hawaiian Electric Company, Inc. and Subsidiaries Condensed Consolidating Statement of Comprehensive Income Nine months ended September 30, 2023
(in thousands) |  | Hawaiian Electric |  | Hawaii Electric Light |  | Maui Electric |  | Other subsidiary |  | Consolidating adjustments |  | Hawaiian Electric Consolidated
Net income for common stock |  | $ | 135,769 |  |  | 20,884 |  |  | 5,076 |  |  | — |  |  | (25,960) |  |  | $ | 135,769 |
Other comprehensive loss, net of taxes: |  |  |  |  |  |  |  |  |  |  |  |
Retirement benefit plans: |  |  |  |  |  |  |  |  |  |  |  |
Adjustment for amortization of prior service credit and net gains recognized during the period in net periodic benefit cost, net of taxes |  | (1,487) |  |  | (166) |  |  | (200) |  |  | — |  |  | 366 |  |  | (1,487) |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes |  | 1,321 |  |  | 157 |  |  | 177 |  |  | — |  |  | (334) |  |  | 1,321 |
Other comprehensive loss, net of taxes |  | (166) |  |  | (9) |  |  | (23) |  |  | — |  |  | 32 |  |  | (166) |
Comprehensive income attributable to common shareholder |  | $ | 135,603 |  |  | 20,875 |  |  | 5,053 |  |  | — |  |  | (25,928) |  |  | $ | 135,603 |
Hawaiian Electric Company, Inc. and Subsidiaries Condensed Consolidating Statement of Income Nine months ended September 30, 2022
(in thousands) |  | Hawaiian Electric |  | Hawaii Electric Light |  | Maui Electric |  | Other subsidiary |  | Consolidating adjustments |  | Hawaiian Electric Consolidated
Revenues |  | $ | 1,769,995 |  |  | 363,888 |  |  | 349,866 |  |  | — |  |  | (113) |  |  | $ | 2,483,636 |
Expenses |  |  |  |  |  |  |  |  |  |  |  |
Fuel oil |  | 619,169 |  |  | 98,856 |  |  | 156,518 |  |  | — |  |  | — |  |  | 874,543 |
Purchased power |  | 460,855 |  |  | 106,710 |  |  | 39,262 |  |  | — |  |  | — |  |  | 606,827 |
Other operation and maintenance |  | 243,478 |  |  | 63,427 |  |  | 64,354 |  |  | — |  |  | — |  |  | 371,259 |
Depreciation |  | 118,459 |  |  | 31,053 |  |  | 26,409 |  |  | — |  |  | — |  |  | 175,921 |
Taxes, other than income taxes |  | 165,350 |  |  | 33,436 |  |  | 32,502 |  |  | — |  |  | — |  |  | 231,288 |
Total expenses |  | 1,607,311 |  |  | 333,482 |  |  | 319,045 |  |  | — |  |  | — |  |  | 2,259,838 |
Operating income |  | 162,684 |  |  | 30,406 |  |  | 30,821 |  |  | — |  |  | (113) |  |  | 223,798 |
Allowance for equity funds used during construction |  | 5,999 |  |  | 616 |  |  | 816 |  |  | — |  |  | — |  |  | 7,431 |
Equity in earnings of subsidiaries |  | 36,475 |  |  | — |  |  | — |  |  | — |  |  | (36,475) |  |  | — |
Retirement defined benefits credit (expense)—other than service costs |  | 2,471 |  |  | 500 |  |  | (95) |  |  | — |  |  | — |  |  | 2,876 |
Interest expense and other charges, net |  | (40,833) |  |  | (7,967) |  |  | (8,048) |  |  | — |  |  | 113 |  |  | (56,735) |
Allowance for borrowed funds used during construction |  | 1,962 |  |  | 190 |  |  | 249 |  |  | — |  |  | — |  |  | 2,401 |
Income before income taxes |  | 168,758 |  |  | 23,745 |  |  | 23,743 |  |  | — |  |  | (36,475) |  |  | 179,771 |
Income taxes |  | 27,640 |  |  | 5,351 |  |  | 4,976 |  |  | — |  |  | — |  |  | 37,967 |
Net income |  | 141,118 |  |  | 18,394 |  |  | 18,767 |  |  | — |  |  | (36,475) |  |  | 141,804 |
Preferred stock dividends of subsidiaries |  | — |  |  | 400 |  |  | 286 |  |  | — |  |  | — |  |  | 686 |
Net income attributable to Hawaiian Electric |  | 141,118 |  |  | 17,994 |  |  | 18,481 |  |  | — |  |  | (36,475) |  |  | 141,118 |
Preferred stock dividends of Hawaiian Electric |  | 810 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 810 |
Net income for common stock |  | $ | 140,308 |  |  | 17,994 |  |  | 18,481 |  |  | — |  |  | (36,475) |  |  | $ | 140,308 |
Hawaiian Electric Company, Inc. and Subsidiaries Condensed Consolidating Statement of Comprehensive Income Nine months ended September 30, 2022
(in thousands) |  | Hawaiian Electric |  | Hawaii Electric Light |  | Maui Electric |  | Other subsidiary |  | Consolidating adjustments |  | Hawaiian Electric Consolidated
Net income for common stock |  | $ | 140,308 |  |  | 17,994 |  |  | 18,481 |  |  | — |  |  | (36,475) |  |  | $ | 140,308 |
Other comprehensive income, net of taxes: |  |  |  |  |  |  |  |  |  |  |  |
Retirement benefit plans: |  |  |  |  |  |  |  |  |  |  |  |
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes |  | 9,782 |  |  | 1,366 |  |  | 1,938 |  |  |  |  | (3,304) |  |  | 9,782 |
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes |  | (9,572) |  |  | (1,362) |  |  | (1,938) |  |  |  |  | 3,300 |  |  | (9,572) |
Other comprehensive income, net of taxes |  | 210 |  |  | 4 |  |  | — |  |  | — |  |  | (4) |  |  | 210 |
Comprehensive income attributable to common shareholder |  | $ | 140,518 |  |  | 17,998 |  |  | 18,481 |  |  | — |  |  | (36,479) |  |  | $ | 140,518 |
Hawaiian Electric Company, Inc. and Subsidiaries Condensed Consolidating Balance Sheet September 30, 2023
(in thousands) |  | Hawaiian Electric |  | Hawaii Electric Light |  | Maui Electric |  | Other subsi- diary |  | Consoli- dating 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 equipment |  | 5,422,393 |  |  | 1,448,183 |  |  | 1,329,252 |  |  | — |  |  | — |  |  | 8,199,828 |
Right-of-use assets - finance lease |  | 88,297 |  |  | 36,075 |  |  | — |  |  | — |  |  | — |  |  | 124,372 |
Less accumulated depreciation |  | (1,953,609) |  |  | (663,303) |  |  | (605,118) |  |  | — |  |  | — |  |  | (3,222,030) |
Construction in progress |  | 258,204 |  |  | 35,281 |  |  | 63,804 |  |  | — |  |  | — |  |  | 357,289 |
Utility property, plant and equipment, net |  | 3,858,144 |  |  | 861,881 |  |  | 791,532 |  |  | — |  |  | — |  |  | 5,511,557 |
Nonutility property, plant and equipment, less accumulated depreciation |  | 5,295 |  |  | 115 |  |  | 1,532 |  |  | — |  |  | — |  |  | 6,942 |
Total property, plant and equipment, net |  | 3,863,439 |  |  | 861,996 |  |  | 793,064 |  |  | — |  |  | — |  |  | 5,518,499 |
Investment in wholly owned subsidiaries, at equity |  | 703,311 |  |  | — |  |  | — |  |  | — |  |  | (703,311) |  |  | — |
Current assets |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | 233,518 |  |  | 32,716 |  |  | 8,543 |  |  | 77 |  |  | — |  |  | 274,854 |
Restricted cash |  | 2,000 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,000 |
Customer accounts receivable, net |  | 172,730 |  |  | 34,550 |  |  | 34,482 |  |  | — |  |  | — |  |  | 241,762 |
Accrued unbilled revenues, net |  | 132,552 |  |  | 22,062 |  |  | 24,713 |  |  | — |  |  | — |  |  | 179,327 |
Other accounts receivable, net |  | 115,498 |  |  | 7,124 |  |  | 11,778 |  |  | — |  |  | (44,577) |  |  | 89,823 |
Fuel oil stock, at average cost |  | 112,468 |  |  | 14,400 |  |  | 25,900 |  |  | — |  |  | — |  |  | 152,768 |
Materials and supplies, at average cost |  | 58,834 |  |  | 13,077 |  |  | 27,615 |  |  | — |  |  | — |  |  | 99,526 |
Prepayments and other |  | 41,304 |  |  | 5,468 |  |  | 7,766 |  |  | — |  |  | — |  |  | 54,538 |
Regulatory assets |  | 49,489 |  |  | 5,110 |  |  | 3,322 |  |  | — |  |  | — |  |  | 57,921 |
Total current assets |  | 918,393 |  |  | 134,507 |  |  | 144,119 |  |  | 77 |  |  | (44,577) |  |  | 1,152,519 |
Other long-term assets |  |  |  |  |  |  |  |  |  |  |  |
Operating lease right-of-use assets |  | 36,627 |  |  | 29,193 |  |  | 10,241 |  |  | — |  |  | — |  |  | 76,061 |
Regulatory assets |  | 146,735 |  |  | 14,583 |  |  | 11,958 |  |  | — |  |  | — |  |  | 173,276 |
Other |  | 112,601 |  |  | 33,011 |  |  | 29,468 |  |  | — |  |  | (16,988) |  |  | 158,092 |
Total other long-term assets |  | 295,963 |  |  | 76,787 |  |  | 51,667 |  |  | — |  |  | (16,988) |  |  | 407,429 |
Total assets |  | $ | 5,781,106 |  |  | 1,073,290 |  |  | 988,850 |  |  | 77 |  |  | (764,876) |  |  | $ | 7,078,447 |
Capitalization and liabilities |  |  |  |  |  |  |  |  |  |  |  |
Capitalization |  |  |  |  |  |  |  |  |  |  |  |
Common stock equity |  | $ | 2,383,023 |  |  | 352,170 |  |  | 351,064 |  |  | 77 |  |  | (703,311) |  |  | $ | 2,383,023 |
Cumulative preferred stock—not subject to mandatory redemption |  | 22,293 |  |  | 7,000 |  |  | 5,000 |  |  | — |  |  | — |  |  | 34,293 |
Long-term debt, net |  | 1,426,353 |  |  | 249,308 |  |  | 258,383 |  |  | — |  |  | — |  |  | 1,934,044 |
Total capitalization |  | 3,831,669 |  |  | 608,478 |  |  | 614,447 |  |  | 77 |  |  | (703,311) |  |  | 4,351,360 |
Current liabilities |  |  |  |  |  |  |  |  |  |  |  |
Current portion of operating lease liabilities |  | 7,308 |  |  | 6,942 |  |  | 2,762 |  |  | — |  |  | — |  |  | 17,012 |
Current portion of long-term debt |  | 49,998 |  |  | 19,999 |  |  | 29,999 |  |  | — |  |  | — |  |  | 99,996 |
Accounts payable |  | 141,738 |  |  | 25,436 |  |  | 34,525 |  |  | — |  |  | — |  |  | 201,699 |
Interest and preferred dividends payable |  | 21,304 |  |  | 3,924 |  |  | 4,830 |  |  | — |  |  | — |  |  | 30,058 |
Taxes accrued, including revenue taxes |  | 196,037 |  |  | 40,706 |  |  | 37,529 |  |  | — |  |  | — |  |  | 274,272 |
Regulatory liabilities |  | 9,999 |  |  | 6,842 |  |  | 9,484 |  |  | — |  |  | — |  |  | 26,325 |
Other |  | 148,400 |  |  | 23,182 |  |  | 36,302 |  |  | — |  |  | (44,577) |  |  | 163,307 |
Total current liabilities |  | 574,784 |  |  | 127,031 |  |  | 155,431 |  |  | — |  |  | (44,577) |  |  | 812,669 |
Deferred credits and other liabilities |  |  |  |  |  |  |  |  |  |  |  |
Operating lease liabilities |  | 35,967 |  |  | 22,575 |  |  | 7,757 |  |  | — |  |  | — |  |  | 66,299 |
Finance lease liabilities |  | 82,935 |  |  | 35,205 |  |  | — |  |  | — |  |  | — |  |  | 118,140 |
Deferred income taxes |  | 274,577 |  |  | 50,405 |  |  | 60,693 |  |  | — |  |  | — |  |  | 385,675 |
Regulatory liabilities |  | 770,268 |  |  | 197,045 |  |  | 108,136 |  |  | — |  |  | — |  |  | 1,075,449 |
Unamortized tax credits |  | 65,153 |  |  | 12,410 |  |  | 12,184 |  |  | — |  |  | — |  |  | 89,747 |
Defined benefit pension liability |  | 65,872 |  |  | — |  |  | — |  |  | — |  |  | (16,988) |  |  | 48,884 |
Other |  | 79,881 |  |  | 20,141 |  |  | 30,202 |  |  | — |  |  | — |  |  | 130,224 |
Total deferred credits and other liabilities |  | 1,374,653 |  |  | 337,781 |  |  | 218,972 |  |  | — |  |  | (16,988) |  |  | 1,914,418 |
Total capitalization and liabilities |  | $ | 5,781,106 |  |  | 1,073,290 |  |  | 988,850 |  |  | 77 |  |  | (764,876) |  |  | $ | 7,078,447 |
Hawaiian Electric Company, Inc. and Subsidiaries Condensed Consolidating Balance Sheet December 31, 2022
(in thousands) |  | Hawaiian Electric |  | Hawaii Electric Light |  | Maui Electric |  | Other subsi-diary |  | Consoli- dating adjustments |  | Hawaiian Electric Consolidated
Assets |  |  |  |  |  |  |  |  |  |  |  |
Property, plant and equipment |  |  |  |  |  |  |  |  |  |  |  |
Utility property, plant and equipment |  |  |  |  |  |  |  |  |  |  |  |
Land |  | $ | 42,860 |  |  | 5,606 |  |  | 3,594 |  |  | — |  |  | — |  |  | $ | 52,060 |
Plant and equipment |  | 5,260,685 |  |  | 1,425,442 |  |  | 1,293,383 |  |  | — |  |  | — |  |  | 7,979,510 |
Finance lease right-of-use assets |  | 48,371 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 48,371 |
Less accumulated depreciation |  | (1,855,150) |  |  | (644,457) |  |  | (586,892) |  |  | — |  |  | — |  |  | (3,086,499) |
Construction in progress |  | 215,560 |  |  | 23,989 |  |  | 35,804 |  |  | — |  |  | — |  |  | 275,353 |
Utility property, plant and equipment, net |  | 3,712,326 |  |  | 810,580 |  |  | 745,889 |  |  | — |  |  | — |  |  | 5,268,795 |
Nonutility property, plant and equipment, less accumulated depreciation |  | 5,298 |  |  | 115 |  |  | 1,532 |  |  | — |  |  | — |  |  | 6,945 |
Total property, plant and equipment, net |  | 3,717,624 |  |  | 810,695 |  |  | 747,421 |  |  | — |  |  | — |  |  | 5,275,740 |
Investment in wholly owned subsidiaries, at equity |  | 701,833 |  |  | — |  |  | — |  |  | — |  |  | (701,833) |  |  | — |
Current assets |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | 27,579 |  |  | 5,092 |  |  | 6,494 |  |  | 77 |  |  | — |  |  | 39,242 |
Advances to affiliates |  | — |  |  | 4,500 |  |  | 21,700 |  |  | — |  |  | (26,200) |  |  | — |
Customer accounts receivable, net |  | 216,802 |  |  | 39,339 |  |  | 32,197 |  |  | — |  |  | — |  |  | 288,338 |
Accrued unbilled revenues, net |  | 136,508 |  |  | 23,839 |  |  | 22,933 |  |  | — |  |  | — |  |  | 183,280 |
Other accounts receivable, net |  | 23,746 |  |  | 5,519 |  |  | 6,686 |  |  | — |  |  | (22,384) |  |  | 13,567 |
Fuel oil stock, at average cost |  | 153,342 |  |  | 16,964 |  |  | 21,224 |  |  | — |  |  | — |  |  | 191,530 |
Materials and supplies, at average cost |  | 48,130 |  |  | 9,783 |  |  | 21,655 |  |  | — |  |  | — |  |  | 79,568 |
Prepayments and other |  | 24,040 |  |  | 6,346 |  |  | 4,137 |  |  | — |  |  | (1,041) |  |  | 33,482 |
Regulatory assets |  | 46,504 |  |  | 2,435 |  |  | 3,334 |  |  | — |  |  | — |  |  | 52,273 |
Total current assets |  | 676,651 |  |  | 113,817 |  |  | 140,360 |  |  | 77 |  |  | (49,625) |  |  | 881,280 |
Other long-term assets |  |  |  |  |  |  |  |  |  |  |  |
Operating lease right-of-use assets |  | 42,752 |  |  | 34,283 |  |  | 12,283 |  |  | — |  |  | — |  |  | 89,318 |
Regulatory assets |  | 154,040 |  |  | 21,816 |  |  | 14,384 |  |  | — |  |  | — |  |  | 190,240 |
Other |  | 115,028 |  |  | 32,654 |  |  | 29,495 |  |  | — |  |  | (16,288) |  |  | 160,889 |
Total other long-term assets |  | 311,820 |  |  | 88,753 |  |  | 56,162 |  |  | — |  |  | (16,288) |  |  | 440,447 |
Total assets |  | $ | 5,407,928 |  |  | 1,013,265 |  |  | 943,943 |  |  | 77 |  |  | (767,746) |  |  | $ | 6,597,467 |
Capitalization and liabilities |  |  |  |  |  |  |  |  |  |  |  |
Capitalization |  |  |  |  |  |  |  |  |  |  |  |
Common stock equity |  | $ | 2,344,170 |  |  | 344,720 |  |  | 357,036 |  |  | 77 |  |  | (701,833) |  |  | $ | 2,344,170 |
Cumulative preferred stock—not subject to mandatory redemption |  | 22,293 |  |  | 7,000 |  |  | 5,000 |  |  | — |  |  | — |  |  | 34,293 |
Long-term debt, net |  | 1,126,915 |  |  | 224,439 |  |  | 233,500 |  |  | — |  |  | — |  |  | 1,584,854 |
Total capitalization |  | 3,493,378 |  |  | 576,159 |  |  | 595,536 |  |  | 77 |  |  | (701,833) |  |  | 3,963,317 |
Current liabilities |  |  |  |  |  |  |  |  |  |  |  |
Current portion of operating lease liabilities |  | 9,775 |  |  | 6,690 |  |  | 2,630 |  |  | — |  |  | — |  |  | 19,095 |
Current portion of long-term debt |  | 49,981 |  |  | 19,992 |  |  | 29,989 |  |  | — |  |  | — |  |  | 99,962 |
Short-term borrowings-non-affiliate |  | 87,967 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 87,967 |
Short-term borrowings-affiliate |  | 26,200 |  |  | — |  |  | — |  |  | — |  |  | (26,200) |  |  | — |
Accounts payable |  | 143,253 |  |  | 32,113 |  |  | 27,126 |  |  | — |  |  | — |  |  | 202,492 |
Interest and preferred dividends payable |  | 12,398 |  |  | 2,576 |  |  | 2,282 |  |  | — |  |  | (80) |  |  | 17,176 |
Taxes accrued, including revenue taxes |  | 207,798 |  |  | 42,436 |  |  | 40,709 |  |  | — |  |  | (1,041) |  |  | 289,902 |
Regulatory liabilities |  | 13,145 |  |  | 8,553 |  |  | 9,777 |  |  | — |  |  | — |  |  | 31,475 |
Other |  | 64,659 |  |  | 20,856 |  |  | 22,385 |  |  | — |  |  | (22,304) |  |  | 85,596 |
Total current liabilities |  | 615,176 |  |  | 133,216 |  |  | 134,898 |  |  | — |  |  | (49,625) |  |  | 833,665 |
Deferred credits and other liabilities |  |  |  |  |  |  |  |  |  |  |  |
Operating lease liabilities |  | 41,049 |  |  | 27,817 |  |  | 9,849 |  |  | — |  |  | — |  |  | 78,715 |
Finance lease liabilities |  | 46,048 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 46,048 |
Deferred income taxes |  | 271,234 |  |  | 50,615 |  |  | 62,581 |  |  | — |  |  | — |  |  | 384,430 |
Regulatory liabilities |  | 729,683 |  |  | 194,222 |  |  | 100,270 |  |  | — |  |  | — |  |  | 1,024,175 |
Unamortized tax credits |  | 69,614 |  |  | 13,150 |  |  | 12,536 |  |  | — |  |  | — |  |  | 95,300 |
Defined benefit pension and other postretirement benefit plans liability |  | 65,907 |  |  | 129 |  |  | — |  |  | — |  |  | (16,288) |  |  | 49,748 |
Other |  | 75,839 |  |  | 17,957 |  |  | 28,273 |  |  | — |  |  | — |  |  | 122,069 |
Total deferred credits and other liabilities |  | 1,299,374 |  |  | 303,890 |  |  | 213,509 |  |  | — |  |  | (16,288) |  |  | 1,800,485 |
Total capitalization and liabilities |  | $ | 5,407,928 |  |  | 1,013,265 |  |  | 943,943 |  |  | 77 |  |  | (767,746) |  |  | $ | 6,597,467 |
Hawaiian Electric Company, Inc. and Subsidiaries Condensed Consolidating Statement of Changes in Common Stock Equity Nine months ended September 30, 2023
(in thousands) |  | Hawaiian Electric |  | Hawaii Electric Light |  | Maui Electric |  | Other subsidiary |  | Consolidating adjustments |  | Hawaiian Electric Consolidated
Balance, December 31, 2022 |  | $ | 2,344,170 |  |  | 344,720 |  |  | 357,036 |  |  | 77 |  |  | (701,833) |  |  | $ | 2,344,170 |
Net income for common stock |  | 135,769 |  |  | 20,884 |  |  | 5,076 |  |  | — |  |  | (25,960) |  |  | 135,769 |
Other comprehensive loss, net of taxes |  | (166) |  |  | (9) |  |  | (23) |  |  | — |  |  | 32 |  |  | (166) |
Common stock dividends |  | (96,750) |  |  | (13,425) |  |  | (11,025) |  |  | — |  |  | 24,450 |  |  | (96,750) |
Balance, September 30, 2023 |  | $ | 2,383,023 |  |  | 352,170 |  |  | 351,064 |  |  | 77 |  |  | (703,311) |  |  | $ | 2,383,023 |
Hawaiian Electric Company, Inc. and Subsidiaries Condensed Consolidating Statement of Changes in Common Stock Equity Nine months ended September 30, 2022
(in thousands) |  | Hawaiian Electric |  | Hawaii Electric Light |  | Maui Electric |  | Other subsidiary |  | 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 stock |  | 140,308 |  |  | 17,994 |  |  | 18,481 |  |  | — |  |  | (36,475) |  |  | 140,308 |
Other comprehensive income, net of taxes |  | 210 |  |  | 4 |  |  | — |  |  | — |  |  | (4) |  |  | 210 |
Common stock dividends |  | (94,425) |  |  | (12,300) |  |  | (11,400) |  |  | — |  |  | 23,700 |  |  | (94,425) |
Balance, September 30, 2022 |  | $ | 2,307,992 |  |  | 338,598 |  |  | 350,341 |  |  | 77 |  |  | (689,016) |  |  | $ | 2,307,992 |
Hawaiian Electric Company, Inc. and Subsidiaries Condensed Consolidating Statement of Cash Flows Nine months ended September 30, 2023
(in thousands) |  | Hawaiian Electric |  | Hawaii Electric Light |  | Maui Electric |  | Other subsidiary |  | Consolidating adjustments |  | Hawaiian Electric Consolidated
Net cash provided by operating activities |  | $ | 336,248 |  |  | 59,029 |  |  | 35,284 |  |  | — |  |  | (24,450) |  |  | $ | 406,111 |
Cash flows from investing activities |  |  |  |  |  |  |  |  |  |  |  |
Capital expenditures |  | (217,276) |  |  | (47,609) |  |  | (69,612) |  |  | — |  |  | — |  |  | (334,497) |
Advances from affiliates |  | — |  |  | 4,500 |  |  | 21,700 |  |  | — |  |  | (26,200) |  |  | — |
Other |  | 3,179 |  |  | 912 |  |  | 1,125 |  |  | — |  |  | — |  |  | 5,216 |
Net cash used in investing activities |  | (214,097) |  |  | (42,197) |  |  | (46,787) |  |  | — |  |  | (26,200) |  |  | (329,281) |
Cash flows from financing activities |  |  |  |  |  |  |  |  |  |  |  |
Common stock dividends |  | (96,750) |  |  | (13,425) |  |  | (11,025) |  |  | — |  |  | 24,450 |  |  | (96,750) |
Preferred stock dividends of Hawaiian Electric and subsidiaries |  | (810) |  |  | (400) |  |  | (286) |  |  | — |  |  | — |  |  | (1,496) |
Proceeds from issuance of long-term debt |  | 300,000 |  |  | 25,000 |  |  | 25,000 |  |  | — |  |  | — |  |  | 350,000 |
Net decrease in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less |  | (114,167) |  |  | — |  |  | — |  |  | — |  |  | 26,200 |  |  | (87,967) |
Payments of obligations under finance leases |  | (1,914) |  |  | (248) |  |  | — |  |  |  |  |  |  | (2,162) |
Other |  | (571) |  |  | (135) |  |  | (137) |  |  | — |  |  | — |  |  | (843) |
Net cash provided by financing activities |  | 85,788 |  |  | 10,792 |  |  | 13,552 |  |  | — |  |  | 50,650 |  |  | 160,782 |
Net increase in cash, cash equivalents and restricted cash |  | 207,939 |  |  | 27,624 |  |  | 2,049 |  |  | — |  |  | — |  |  | 237,612 |
Cash, cash equivalents and restricted cash, beginning of period |  | 27,579 |  |  | 5,092 |  |  | 6,494 |  |  | 77 |  |  | — |  |  | 39,242 |
Cash, cash equivalents and restricted cash, end of period |  | 235,518 |  |  | 32,716 |  |  | 8,543 |  |  | 77 |  |  | — |  |  | 276,854 |
Less: Restricted cash |  | (2,000) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (2,000) |
Cash and cash equivalents, end of period |  | $ | 233,518 |  |  | 32,716 |  |  | 8,543 |  |  | 77 |  |  | — |  |  | $ | 274,854 |
Hawaiian Electric Company, Inc. and Subsidiaries Condensed Consolidating Statement of Cash Flows Nine months ended September 30, 2022
(in thousands) |  | Hawaiian Electric |  | Hawaii Electric Light |  | Maui Electric |  | Other subsidiary |  | Consolidating adjustments |  | Hawaiian Electric Consolidated
Net cash provided by operating activities |  | $ | 74,053 |  |  | 38,302 |  |  | 35,512 |  |  | — |  |  | (23,700) |  |  | $ | 124,167 |
Cash flows from investing activities |  |  |  |  |  |  |  |  |  |  |  |
Capital expenditures |  | (152,015) |  |  | (34,055) |  |  | (39,806) |  |  | — |  |  | — |  |  | (225,876) |
Advances from (to) affiliates |  | 1,000 |  |  | (1,500) |  |  | (16,000) |  |  | — |  |  | 16,500 |  |  | — |
Other |  | 4,545 |  |  | 825 |  |  | 1,380 |  |  | — |  |  | — |  |  | 6,750 |
Net cash used in investing activities |  | (146,470) |  |  | (34,730) |  |  | (54,426) |  |  | — |  |  | 16,500 |  |  | (219,126) |
Cash flows from financing activities |  |  |  |  |  |  |  |  |  |  |  |
Common stock dividends |  | (94,425) |  |  | (12,300) |  |  | (11,400) |  |  | — |  |  | 23,700 |  |  | (94,425) |
Preferred stock dividends of Hawaiian Electric and subsidiaries |  | (810) |  |  | (400) |  |  | (286) |  |  | — |  |  | — |  |  | (1,496) |
Proceeds from issuance of long-term debt |  | 40,000 |  |  | 10,000 |  |  | 10,000 |  |  | — |  |  | — |  |  | 60,000 |
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less |  | 114,950 |  |  | (1,000) |  |  | — |  |  | — |  |  | (16,500) |  |  | 97,450 |
Payments of obligations under finance leases |  | (266) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (266) |
Other |  | (170) |  |  | (44) |  |  | (44) |  |  | — |  |  | — |  |  | (258) |
Net cash provided by (used in) financing activities |  | 59,279 |  |  | (3,744) |  |  | (1,730) |  |  | — |  |  | 7,200 |  |  | 61,005 |
Net decrease in cash and cash equivalents |  | (13,138) |  |  | (172) |  |  | (20,644) |  |  | — |  |  | — |  |  | (33,954) |
Cash and cash equivalents, beginning of period |  | 26,433 |  |  | 5,326 |  |  | 23,422 |  |  | 77 |  |  | — |  |  | 55,258 |
Cash and cash equivalents, end of period |  | $ | 13,295 |  |  | 5,154 |  |  | 2,778 |  |  | 77 |  |  | — |  |  | $ | 21,304 |

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