XML 50 R23.htm IDEA: XBRL DOCUMENT v3.24.0.1

Electric utility segment

12 Months Ended

Dec. 31, 2023

Electric Utility Subsidiary [Abstract]

Electric utility segment

Note 4 · Electric utility segment

Regulatory assets and liabilities.  The Utilities record regulatory assets and liabilities when they are deemed probable of recovery from or refund to customers. Determining probability requires significant judgment by management and includes considerations of regulatory orders, proposed regulatory treatment, strength of the applications and other available evidence. Regulatory assets represent deferred costs and accrued decoupling revenues which are expected to be recovered through rates over PUC-authorized periods. Generally, the Utilities do not earn a return on their regulatory assets; however, they have been allowed to recover interest on certain regulatory assets and to include certain regulatory assets in rate base. Regulatory liabilities represent amounts included in rates and collected from ratepayers for costs expected to be incurred in the future, or amounts collected in excess of costs incurred that are refundable to customers. For example, the regulatory liability for cost of removal in excess of salvage value represents amounts that have been collected from ratepayers for costs that are expected to be incurred in the future to retire a utility plant. Generally, the Utilities include regulatory liabilities in rate base or are required to apply interest to certain regulatory liabilities. In the table below, noted in parentheses are the original PUC authorized amortization or recovery periods and, if different, the remaining amortization or recovery periods as of December 31, 2023 are noted.

Regulatory assets were as follows:

December 31			2023						2022
(in thousands)
Retirement benefit plans (balance primarily varies with plans’ funded statuses)			$	70,616					$	69,919
Income taxes (2-36 years)			81,620						82,583
Decoupling revenue balancing account and RAM (1-2 years)			19,002						14,290
Right-Of-Use (ROU) assets (21 years remaining)			9,067						7,711
Vacation earned, but not yet taken (1 year)			14,585						14,109
COVID-19 related costs (to be determined by PUC)			8,715						11,403
ECRC/PPAC (1 year)			24,691						20,369
Maui windstorm and wildfire related costs (to be determined by PUC)			14,692						—
Retirement of generating units (10 years)			29,930						—
Other (1-36 years remaining)			21,886						22,129
Total regulatory assets			$	294,804					$	242,513
Included in:
Current assets			$	68,453					$	52,273
Long-term assets			226,351						190,240
Total regulatory assets			$	294,804					$	242,513

Regulatory liabilities were as follows:

December 31			2023						2022
(in thousands)
Cost of removal in excess of salvage value (1-79 years)			$	591,298					$	577,985
Income taxes (2-36 years)			303,225						316,947
Decoupling revenue balancing account and RAM (1-2 years)			5,995						10,426
Retirement benefit plans (balance primarily varies with plans’ funded statuses)			171,421						81,950
Solar tax credits (1-18 years)			49,507						50,240
ECRC/PPAC (1 year)			15,169						4,034
Enterprise Resource Planning (ERP) Benefits (2 years)			12,409						10,491
Other (1 year remaining)			1,666						3,577
Total regulatory liabilities			$	1,150,690					$	1,055,650
Included in:
Current liabilities			$	36,559					$	31,475
Long-term liabilities			1,114,131						1,024,175
Total regulatory liabilities			$	1,150,690					$	1,055,650

The regulatory asset and liability relating to retirement benefit plans was recorded as a result of pension and OPEB tracking mechanisms adopted by the PUC in rate case decisions for the Utilities in 2007 (see Note 11).

Regulatory asset related to retirement of Honolulu generating units 8 and 9. On December 22, 2023, the PUC issued a decision and order approving the Utilities’ request to establish a regulatory asset for the remaining net book value of the fossil fuel generating units Honolulu units 8 and 9 assets that retired on December 31, 2023, and amortize the regulatory asset over approximately nine years. The PUC also ruled that the Utilities may seek to include the regulatory asset in rate base and seek to recover the amortization expense and a return on the unamortized balance of the regulatory asset in the next rate case or rate re-setting proceeding. As of December 31, 2023, the Utilities have recorded $29.9 million in regulatory assets for the remaining net book value of Honolulu generating units 8 and 9.

Regulatory assets for Maui windstorm and wildfires related costs. On December 27, 2023, the PUC issued an order authorizing deferred accounting treatment for the Utilities’ incremental non-labor expenses under specific cost categories related to the August 2023 Maui windstorm and wildfires. The deferred accounting treatment applies to certain non-labor expenses incurred from August 8, 2023 through December 31, 2024 that are not already a part of base rates. The approval pertains to deferred cost treatment. The requests for cost recovery of deferred costs will be the subject of a separate application at which time the PUC will evaluate whether such costs were prudently incurred and reasonable and determine the extent to which such costs will be eligible for recovery, and the period over which recovery will occur. If the PUC denies recovery of any deferred costs, such costs would be charged to expense in the period that those costs are no longer considered probable of recovery.

As of December 31, 2023, the Utilities have recorded $14.7 million in regulatory assets for the incremental costs incurred related to the Maui windstorm and wildfires event.

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. On December 29, 2023, the PUC approved the Utilities’ proposal to accelerate flow-through of the ERP benefits savings currently tracked in regulatory liability accounts to Hawaii Electric Light and Maui Electric customers as part of the customer dividend in the ARA, to mitigate the impact of the Utilities’ recovery of the COVID-19 related costs on customers. See “Regulatory assets for COVID-19 related costs” section below.

As of December 31, 2023, the Utilities’ regulatory liability was $12.4 million ($2.6 million for Hawaiian Electric, $3.9 million for Hawaii Electric Light and $5.9 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 13, 2024 for the period January 1 through December 31, 2023.

Regulatory assets for COVID-19 related costs. On December 29, 2023, the PUC issued a decision and order (December 2023 D&O) approving the Utilities’ request to recover the COVID-19 related deferred costs up to $8.8 million evenly over a three-year recovery period from 2024 through 2026. Following the Utilities’ motion for clarification or in the alternative partial reconsideration of the December 2023 D&O, on February 27, 2024, the PUC issued an order clarifying the December 2023 D&O and approving, among other things, the Utilities’ requests to base the recovery on the recorded balances as of December 31, 2023 and to modify the recovery period to begin June 1, 2024 and end May 31, 2027. As of December 31, 2023, the Utilities have recorded $8.7 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 March 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 December 31, 2023, the Utilities have recorded $0.6 million in regulatory assets for the incremental costs incurred due to the suspension of disconnections.

Major customers.  The Utilities received 12% ($376 million), 12% ($393 million) and 11% ($267 million) of their operating revenues from the sale of electricity to various federal government agencies in 2023, 2022 and 2021, respectively.

Cumulative preferred stock. The following series of cumulative preferred stock are redeemable only at the option of the respective company at the following prices in the event of voluntary liquidation or redemption:

December 31, 2023			Voluntary liquidation price						Redemption price
Series
C, D, E, H, J and K (Hawaiian Electric)			$	20					$	21
I (Hawaiian Electric)			20						20
G (Hawaii Electric Light)			100						100
H (Maui Electric)			100						100

Hawaiian Electric is obligated to make dividend, redemption and liquidation payments on the preferred stock of each of its subsidiaries if the respective subsidiary is unable to make such payments, but this obligation is subordinated to Hawaiian Electric’s obligation to make payments on its own preferred stock.

Related-party transactions. HEI charged the Utilities $5.2 million, $5.6 million and $5.2 million for general management and administrative services in 2023, 2022 and 2021, respectively. The amounts charged by HEI to its subsidiaries for services provided by HEI employees are allocated primarily on the basis of time expended in providing such services.

In 2023, 2022 and 2021, Hamakua Energy (an indirect subsidiary of HEI) sold energy and capacity to Hawaii Electric Light (subsidiary of Hawaiian Electric and indirect subsidiary of HEI) under a power purchase agreement (PPA) in the amount of $71 million, $66 million and $53 million, respectively.

Hawaiian Electric’s short-term borrowings from HEI totaled nil at December 31, 2023 and 2022. Borrowings among the Utilities are eliminated in consolidation. Interest charged by HEI to Hawaiian Electric was not material for the years ended December 31, 2023 and 2022.

Unconsolidated variable interest entities.

Power purchase agreements.  As of December 31, 2023, the Utilities had four PPAs for firm capacity and other PPAs with independent power producers (IPPs) and Schedule Q providers (i.e., customers with cogeneration and/or power production facilities who buy power from or sell power to the Utilities), none of which are currently required to be consolidated as VIEs.

Pursuant to the current accounting standards for VIEs, the Utilities are deemed to have a variable interest in Kalaeloa Partners, L.P. (Kalaeloa) and Hamakua Energy by reason of the provisions of the PPA that the Utilities have with the two IPPs. However, management has concluded that the Utilities are not the primary beneficiary of Kalaeloa and Hamakua Energy because the Utilities do not have the power to direct the activities that most significantly impact the two IPPs’ economic performance nor the obligation to absorb their expected losses, if any, that could potentially be significant to the IPPs. Thus, the Utilities have not consolidated Kalaeloa and Hamakua Energy in its consolidated financial statements. However, Hamakua Energy is an indirect subsidiary of Pacific Current, and is consolidated in HEI’s consolidated financial statements.

For the other PPAs with IPPs, the Utilities have concluded that the consolidation of the IPPs was not required because either the Utilities do not have variable interests in the IPPs due to the absence of an obligation in the PPAs for the Utilities to absorb any variability of the IPPs, or the IPP was considered a “governmental organization,” and thus excluded from the scope of accounting standards for VIEs. The consolidation of any significant IPP could have a material effect on the consolidated financial statements, including the recognition of a significant amount of assets and liabilities and, if such a consolidated IPP were operating at a loss and had insufficient equity, the potential recognition of such losses. If the Utilities determine they are

required to consolidate the financial statements of such an IPP and the consolidation has a material effect, the Utilities would retrospectively apply accounting standards for VIEs to the IPP.

Commitments and contingencies.

Contingencies. The Utilities are subject in the normal course of business to legal, regulatory and environmental proceedings. Excluding the potential liabilities from the Maui windstorm and wildfires, management does not anticipate that the aggregate ultimate liability arising out of these pending or threatened legal proceedings will be material to its financial position. However, the Utilities cannot rule out the possibility that such outcomes could have a material effect on the results of operations or liquidity for a particular reporting period in the future. The Utilities record loss contingencies when the outcome of such proceedings is probable and when the amount of the loss is reasonably estimable. The Utilities also evaluate, on a continuous basis, whether developments in such proceedings could cause these assessments or estimates to change. Assessment regarding future events is required when evaluating whether a loss is probable or reasonably possible, and as to whether such loss or a range of such loss is estimable. Management is often unable to estimate a reasonably possible loss, or a range of loss, particularly in cases in which: (i). the damages sought are indeterminate or the basis for the damages claimed is not clear; (ii) proceedings are in early stages; (iii) discovery is not complete; (iv) the matters involve novel or unsettled legal theories; (v) significant facts are in dispute; (vi) a large number of parties are represented (including circumstances in which it is uncertain how liability, if any, would be shared among multiple defendants); (vii) a lower court or administrative agency’s decision or ruling has been appealed; and/or (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 Consolidated Financial Statements.

Hu Honua Bioenergy, LLC (Hu Honua). In May 2012, Hawaii Electric Light signed a PPA, which the PUC approved in December 2013, with Hu Honua for 21.5 MW of renewable, dispatchable firm capacity fueled by locally grown biomass from a facility on the island of Hawaii. Under the terms of the PPA, the Hu Honua plant was scheduled to be in service in 2016. However, Hu Honua encountered construction and litigation delays, which resulted in the termination of the original PPA. Following the termination, Hu Honua filed a lawsuit in the U.S. District Court for the District of Hawaii. The parties reached a settlement that was conditioned on the PUC’s timely, non-appealable final approval of an amended and restated PPA dated May 9, 2017. On May 23, 2022, following a contested case hearing, the PUC issued a decision and order denying the amended and restated PPA, based on, among other things, findings that: (1) the project will result in significant greenhouse gas (GHG) emissions, (2) Hu Honua’s proposed carbon commitment to sequester more GHG emissions than produced by the project are speculative and unsupported, (3) the amended and restated PPA is likely to result in high costs to customers through its relatively high cost of electricity and through potential displacement of other, lower cost, renewable resources, and (4) based on the foregoing, approving the amended and restated PPA is not prudent or in the public interest. On June 2, 2022, Hawaii Electric Light and Hu Honua filed their separate motions for reconsideration, which were denied by the PUC on June 24, 2022. On June 29, 2022, Hu Honua filed its notice of appeal to the Hawaii Supreme Court of the PUC’s May 23, 2022 decision and order denying the amended and restated PPA. On March 13, 2023, the Hawaii Supreme Court affirmed the PUC’s decision denying the amended and restated PPA between Hu Honua and Hawaii Electric Light and entered its judgment on appeal on April 12, 2023. On June 7, 2023, Hu Honua filed a status report with the U.S. District Court for the District of Hawaii, stating, among other things, that because settlement of the underlying federal lawsuit was contingent on timely, non-appealable, final approval of the amended and restated PPA by the PUC, that the Hawaii Supreme Court’s opinion made fulfillment of the condition impossible, and therefore the settlement agreement between the Hawaiian Electric defendants (HEI, Hawaiian Electric, and Hawaii Electric Light) and Hu Honua is null and void and of no further effect. On November 16, 2023, Hu Honua filed its Motion for Leave to Filed Third Amended and Supplemental Complaint and for Permissive Joinder with the U.S. District Court for the District of Hawaii, asking the court to grant it leave to file a Third Amended and Supplemental Complaint, which would amend its claims and add three new proposed defendants. The hearing on this motion took place on February 14, 2024 and a decision has not been made yet.

Molokai New Energy Partners (MNEP). In July 2018, the PUC approved Maui Electric’s PPA with MNEP to purchase solar energy from a photovoltaic (PV) plus battery storage project. The 4.88 MW PV and 3 MW Battery Energy Storage System (BESS) project was to deliver no more than 2.64 MW at any time to the Molokai system. On March 25, 2020, MNEP filed a complaint in the United Stated District Court for the District of Hawaii against Maui Electric claiming breach of contract. On June 3, 2020, Maui Electric provided a Notice of Default and Termination of the PPA to MNEP terminating the PPA with an effective date of July 10, 2020. Thereafter, MNEP filed an amended complaint to include claims relating to the termination and Hawaiian Electric filed its answer to the amended complaint on September 11, 2020, disputing the facts presented by MNEP and all claims within the original and amended complaint. Currently, the discovery phase is ongoing.

Environmental regulation.  The Utilities are subject to environmental laws and regulations that regulate the operation of existing facilities, the construction and operation of new facilities and the proper cleanup and disposal of hazardous waste and toxic substances.

Hawaiian Electric, Hawaii Electric Light and Maui Electric, like other utilities, periodically encounter petroleum or other chemical releases associated with current or previous operations. The Utilities report and take action on these releases when and as required by applicable law and regulations. The Utilities believe the costs of responding to such releases identified to date will not have a material effect, individually or in the aggregate, on Hawaiian Electric’s consolidated results of operations, financial condition or liquidity.

Former Molokai Electric Company generation site.  In 1989, Maui Electric acquired Molokai Electric Company. Molokai Electric Company had sold its former generation site (Site) in 1983 but continued to operate at the Site under a lease until 1985 and left the property in 1987. The Environmental Protection Agency (EPA) has since identified environmental impacts in the subsurface soil at the Site. In cooperation with the State of Hawaii Department of Health and EPA, Maui Electric further investigated the Site and the adjacent parcel to determine the extent of impacts of polychlorinated biphenyls (PCBs), residual fuel oils and other subsurface contaminants. Maui Electric has a reserve balance of $2.6 million as of December 31, 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.

Pearl Harbor sediment study. In July 2014, the U.S. Navy notified Hawaiian Electric of the Navy’s determination that Hawaiian Electric is a Potentially Responsible Party under CERCLA responsible for the costs of investigation and cleanup of PCB contamination in sediment in the area offshore of the Waiau Power Plant as part of the Pearl Harbor Superfund Site. Hawaiian Electric was also required by the EPA to assess potential sources and extent of PCB contamination onshore at Waiau Power Plant.

As of December 31, 2023, the reserve account balance recorded by Hawaiian Electric to address the PCB contamination was $9.6 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. It has not been determined whether the nature of the contamination 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.

Endangered Species Act. The Utilities received a sixty-day notice from the American Bird Conservancy and Conservation Council for Hawaii in early February. The sixty-day notice is the pre-cursor to a citizen’s suit under the Endangered Species Act. The letter alleges that the Utilities are out of compliance with the Act due to alleged impacts on endangered seabirds caused by the Utilities’ powerlines and street and facility lights on Maui and Lanai. The Utilities are already in the process of drafting a Habitat Conservation Plan and will be applying for associated state and federal permits. The letter asserts that the scope of the plan should be broader and that additional interim measures are required while the plan and permits are pending. At this time, the Utilities are unable to determine the ultimate outcome or the amount of any potential loss.

Commitments.  

Purchase commitments. As of December 31, 2023, the Utilities’ estimated future minimum payments pursuant to purchase obligations related to material contracts for the following five years and thereafter are as follows:

			Payments Due
(in millions)			2024						2025						2026						2027						2028			Thereafter
Firm capacity PPAs			$	74					$	74					$	74					$	74					$	70		$	295
Renewable dispatchable generation plus energy storage and energy storage PPAs			49						49						49						49						49			740
Fuel transportation			7						7						7						2						—			—
Total			$	130					$	130					$	130					$	125					$	119		$	1,035

Firm capacity PPAs. The Utilities are committed to purchase from four firm capacity PPAs for a total of 362.2 megawatts (MW) of firm capacity, which expire at various dates through 2033.

Renewable dispatchable generation plug energy storage and energy storage PPAs. The Utilities also have long-term renewable PPAs with IPPs from the issuances of Stage 1 and 2 request for proposals in 2018 and 2019, respectively. The Utilities have additional annual payments of $40 million when three projects began commercial operations in 2023. As of

December 31, 2023, a total of four projects provides the Utilities capacity of 105 MW, with 985 MWh batteries. The contracts expire at various dates through 2048.

Fuel transportation lease contract. The Utilities entered into an inter-island fuel transportation contract, expiring in 2027.

The PUC has approved PPACs for the Utilities to recover purchased power capacity, operation and maintenance (O&M) and other non-energy costs related to all aforementioned PPAs. In addition, the Utilities are able to recover fuel component of the energy charges for firm capacity PPAs as well as costs associated to fuel transportation through ECRC.

In general, the Utilities base their payments under the PPAs upon available capacity and actual energy supplied and they are generally not required to make payments for capacity if the contracted capacity is not available, and payments are reduced, under certain conditions, if available capacity drops below contracted levels. In general, the payment rates for capacity have been predetermined for the terms of the agreements. The Utilities do not operate, or participate in the operation of, any of the facilities that provide power under the agreements. Title to the facilities does not pass to Hawaiian Electric or its subsidiaries upon expiration of the agreements, and the agreements do not contain bargain purchase options for the facilities.

Purchases from all IPPs were as follows: 

Years ended December 31						2023						2022						2021
(in millions)
Kalaeloa						$	298					$	342					$	204
AES Hawaii1						—						82						130
HPOWER						70						73						70
Hamakua Energy						71						66						53
Puna Geothermal Venture						38						48						29
Wind IPPs						125						119						124
Solar IPPs						72						57						50
Other IPPs2						(2)						7						10
Total IPPs						$	672					$	794					$	670

1 The term of the PPA with AES Hawaii expired on September 1, 2022 and the AES Hawaii coal plant ceased operations.

2 Includes hydro power and other PPAs.

Utility projects.  Many public utility projects require PUC approval and various permits from other governmental agencies. Difficulties in obtaining, or the inability to obtain, the necessary approvals or permits or community support can result in significantly increased project costs or even cancellation of projects. In the event a project does not proceed, or if it becomes probable the PUC will disallow cost recovery for all or part of a project, or if PUC-imposed caps on project costs are expected to be exceeded, project costs may need to be written off in amounts that could result in significant reductions in Hawaiian Electric’s consolidated net income.

Waena Switchyard/Synchronous Condenser Project. In October 2020, to support efforts to increase renewable energy generation and reduce fossil fuel consumption by deactivating current generating units, Maui Electric filed a PUC application to construct a switchyard, which includes the extension of two 69 kV transmission lines and the relocation of another 69 kV transmission line; and the conversion of two generating units to synchronous condensers at Kahului Power Plant in central Maui. In November 2021, the PUC approved Maui Electric’s request to commit funds estimated at $38.8 million for the project, and to recover capital expenditures for the project under Exceptional Project Recovery Mechanism (EPRM) not to exceed $38.8 million, which shall be further reduced to reflect the total project cost exclusive of overhead costs not directly attributable to the project. The Waena Switchyard was placed in service on October 25, 2023. 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 December 31, 2023, $24.7 million has been incurred for the project.

Waena Battery Energy Storage System Project. In September 2020, Maui Electric filed a PUC application to purchase and install a 40 MW BESS at its Waena Site in Central Maui. In December 2023, the PUC approved Maui Electric’s request to commit funds estimated at $82.1 million, for the purchase and installation of the project, and to recover costs for the project under EPRM. Project costs incurred as of December 31, 2023 amount to $0.6 million.

Climate Adaptation Transmission and Distribution Resilience Program. The Utilities maintains that improving resiliency of the electric grid is an urgent matter and recognizes that climate change is making Hawaii increasingly vulnerable to sever weather events. On January 31, 2024, the PUC approved the Utilities’ request to commit an estimated $189.7 million in funds for the Climate Adaptation Transmission and Distribution Resilience Program, over a project period of five years. The project is to focus on, among other things, strengthening transmission lines and circuits that serve critical loads, enable

substation to proactively de-energize before natural disasters and system hardening in wildfire risk areas to prevent ignition and to enable quicker response.

The project costs to be recovered through EPRM is subject to a cap of $95 million and any amount in excess will be subject to the PUC’s further review. Additionally, on August 29, 2023, the U.S. Department of Energy notified the Utilities that their application for $95 million in federal funds under the Infrastructure Investment and Jobs Act (IIJA) has been recommended for award, subject to negotiation of the terms of financial assistance.

Asset retirement obligations.  Asset retirement obligations (AROs) represent legal obligations associated with the retirement of certain tangible long-lived assets, are measured as the present value of the projected costs for the future retirement of specific assets and are recognized in the period in which the liability is incurred if a reasonable estimate of fair value can be made. The Utilities’ recognition of AROs have no impact on their earnings. The cost of the AROs is recovered over the life of the asset through depreciation. AROs recognized by the Utilities relate to legal obligations associated with the retirement of plant and equipment, including removal of asbestos and other hazardous materials.

The Utilities recorded AROs related to: 1) the removal of retired generating units, certain types of transformers and underground storage tanks; 2) the abandonment of fuel pipelines, underground injection and supply wells; and 3) the removal of equipment and restoration of leased land used in connection with Utility-owned renewable and dispatchable generation facilities. 

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

(in thousands)			2023						2022
Balance, January 1			$	11,548					$	11,110
Accretion expense			463						442
Liabilities incurred			—						—
Liabilities settled			(2)						(4)
Balance, December 31			$	12,009					$	11,548

The Utilities have not recorded AROs for assets that are expected to operate indefinitely or where the Utilities cannot estimate a settlement date (or range of potential settlement dates). As such, ARO liabilities are not recorded for certain asset retirement activities, including various Utilities-owned generating facilities and certain electric transmission, distribution and telecommunications assets resulting from easements over property not owned by the Utilities.

Regulatory proceedings.

Decoupling. Decoupling is a regulatory model that is intended to provide the Utilities with financial stability and facilitate meeting the State of Hawaii’s goals to transition to a clean energy economy and achieve an aggressive renewable portfolio standard. Decoupling delinks the utility’s revenues from the utility’s sales, removing the disincentive to promote energy efficiency and accept more renewable energy. Decoupling continues under the PBR Framework.

Performance-based regulation framework. On December 23, 2020, the PUC issued a decision and order (PBR D&O) establishing the PBR Framework to govern the Utilities. The PBR Framework incorporates an annual revenue adjustment (ARA) and a suite of new regulatory mechanisms in addition to previously established regulatory mechanisms. Under the PBR Framework, the decoupling mechanism (i.e., the Revenue Balancing Account (RBA)) established by the previous regulatory framework will continue. The existing cost recovery mechanisms continued as previously implemented (e.g., the Energy Cost Recovery Clause, Purchased Power Adjustment Clause (PPAC), Demand-Side Management surcharge, Renewable Energy Infrastructure Program, Demand Response Adjustment Clause, Pension and Other Post-Employment Benefits (OPEB) tracking mechanisms). In addition to annual revenues provided by the ARA, the Utilities may seek relief for extraordinary projects or programs through the Exceptional Project Recovery Mechanism (EPRM) (formerly known as the Major Project Interim Recovery adjustment mechanism) and earn financial rewards for exemplary performance as provided through a portfolio of Performance Incentive Mechanisms (PIMs) and Shared Savings Mechanisms (SSMs). The PBR Framework incorporates a variety of additional performance mechanisms, including Scorecards, Reported Metrics, and an expedited Pilot Process. The PBR Framework also contains a number of safeguards, including a symmetric Earnings Sharing Mechanism (ESM) which protects the Utilities and customers from excessive earnings or losses, as measured by the Utilities’ achieved rate-making ROACE and a Re-Opener mechanism, under which the PUC will open an examination, at its discretion, to determine if adjustments or modifications to specific PBR mechanisms are appropriate. The PBR Framework became fully effective on June 1, 2021.

On June 17, 2022, the PUC issued a decision and order (June 2022 D&O) establishing additional PIMs under the PBR Framework for the Utilities. The June 2022 D&O approved two 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 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. On December 28, 2023, the PUC issued an order granting a temporary suspension of Maui Electric’s T&D SAIDI and SAIFI PIMs and Maui Electric Maui Division’s target heat rate provision from August 8, 2023 through June 30, 2024, which the tariffs became effective on January 1, 2024.

On November 3, 2023, the Utilities, Ulupono Initiative LLC, and the County of Hawaii filed a stipulation on proposed modifications to the RPS-A, Call Center, AMI Utilization, and interconnection requirements study PIM. On February 8, 2024, the PUC issued a procedural schedule to govern review of the proposals in the stipulation, which provides for a D&O on the stipulation by June 30, 2024.

On December 26, 2023, the PUC issued an order (1) confirming that the Interim Grid Services PIM will sunset on December 31, 2023, (2) extending the Interconnection Approval PIM through December 31, 2024, and (3) determining that it will continue examination of the Long-Term Grid Services PIM into 2024 as part of a broader examination that addresses barriers to the utilization of DERs to meet grid needs.

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.

Earnings sharing mechanism. The PBR Framework established a symmetrical ESM for achieved rate-making ROACE outside of a 300 basis points deadband above or below the current authorized ROACE of 9.5% for each of the Utilities. There is a 50/50 sharing between customers and Utilities for the achieved rate-making ROACE falling within 150 basis points outside of the deadband in either direction, and a 90/10 sharing for any further difference. A reopening or review of the PBR terms may be triggered if the Utilities credit rating outlook indicates a potential credit downgrade below investment grade status, or if its achieved rate-making ROACE enters the outer most tier of the ESM.

On August 31, 2023, the PUC issued an order temporarily suspending the ESM until further notice. The intent of the order is to address the unintended consequence of customers potentially bearing the costs associated with the Maui windstorm and wildfires through the operation of the ESM without prior PUC review.

Exceptional project recovery mechanism. Prior to the implementation of the PBR Framework, the PUC established the Major Project Interim Recovery (MPIR) adjustment mechanism and MPIR Guidelines. The MPIR mechanism provides the opportunity to recover revenues for net costs of approved eligible projects placed in service between general rate cases. In establishing the PBR Framework, the MPIR Guidelines were terminated and replaced with the EPRM Guidelines. Although the MPIR Guidelines were terminated and replaced by the EPRM Guidelines, the MPIR mechanism will continue within the PBR Framework to provide recovery of project costs previously approved for recovery under the MPIR. The established EPRM Guidelines permit the Utilities to include the full amount of approved costs in the EPRM for recovery in the first year the project goes into service, pro-rated for the portion of the year the project is in service. Deferred and O&M expense projects are also eligible for EPRM recovery under the EPRM Guidelines. EPRM recoverable costs will be limited to the lesser of actual incurred project costs or PUC-approved amounts, net of savings.

As of December 31, 2023, the Utilities annualized MPIR and EPRM revenue amounts totaled $33.1 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), Waiawa UFLS project ($0.1 million) and Waena Switchyard/Synchronous project ($2.0 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 and for the Waena Switchyard project effective January 1, 2024 through the RBA rate adjustment.

As of December 31, 2023, the PUC approved three EPRM applications for projects totaling $123.5 million to the extent the project costs are not included in rates. On January 31, 2024, the PUC approved one EPRM application, subject to a cap of $95 million to the extent the project costs are not included in rates. Currently, the Utilities are seeking EPRM recovery for three projects with total project costs up to $215.9 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 $6.4 million for calendar year 2023 - for both indices in total for the three utilities). On December 28, 2023, the PUC issued an order granting a temporary suspension of Maui Electric’s T&D SAIDI and SAIFI PIMs from August 8, 2023 through June 30, 2024. For the 2023 evaluation period, the Utilities accrued $3.7 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. Based on the in-service date of one project, for the 2023 evaluation period, the Utilities earned $0.1 million (for Hawaiian Electric) in rewards.

•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 through December 31, 2023.

•Renewable portfolio standard (RPS) - A PIM that provides a financial reward for accelerating the achievement of RPS goals. The Utilities may earn a reward for the amount of system generation above the interpolated statutory RPS goal at $20/MWh in 2021 and 2022, $15/MWh in 2023, and $10/MWh for the remainder of the MRP. Penalties are already prescribed in the RPS as $20/MWh for failing to meet RPS targets in 2030, 2040 and 2045. The evaluation period commenced on January 1, 2021. For the 2023 evaluation period, the Utilities accrued $0.4 million in rewards.

•Interim Grid Services - A PIM that provides financial rewards on a $/kW basis for the acquisition of eligible grid services. The June 2022 D&O 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. For the 2023 evaluation period, the Utilities accrued $1.1 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. For the 2023 evaluation period, the Utilities accrued $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. For the 2022 program year (July 1, 2022 through June 30, 2023), the Utilities did not accrue any rewards pending receipt of verified results.

•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 interconnection requirements study PIM to incentivize the timely completion of the IRS process for large-scale renewable energy projects (rewards and penalties) measured by the number of months between final model checkout and delivery of IRS results to the developer. Target performance is ten months with an asymmetrical deadband of two-months for penalties and no deadband for rewards. The maximum penalty and reward will depend on the specifics of the upcoming procurement.

•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 2023 evaluation period, the Utilities accrued $0.9 million ($1.2 million for Hawaiian Electric, $(0.6) million for Hawaii Electric Light and $0.3 million for Maui Electric) in estimated rewards net of penalties. The net rewards related to 2023 will be reflected in the 2024 PIMs annual report and 2024 spring revenue report filings with the exception of the Phase 1 RFP PIM that was approved in the 2023 fall revenue report.

Annual review cycle. PBR D&O established an annual review cycle for revenue adjustments under the PBR Framework, including the biannual submission of the revenue reports. On December 20, 2023, the PUC approved the Utilities’ fall revenue report filed on October 31, 2023, as amended by the November 13, 2023 Addendum filing, with the exception of the proposed recovery of the COVID-19 related deferred costs and the accelerated return of the Enterprise Resource Planning system benefits savings to Hawaii Electric Light and Maui Electric customers. (See discussion under “Regulatory assets and liabilities” above. 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)
Net 2024 ARA revenues						$	12.0					$	3.1					$	3.0					$	18.1

Note: Columns may not foot due to rounding.

The 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 included in the 2023 fall revenue report filing.

(in millions)						Hawaiian Electric						Hawaii Electric Light						Maui Electric						Total
Incremental RAM revenues and ARA revenues						$	16.6					$	4.1					$	4.0					$	24.7
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
Incremental MPIR/EPRM Revenue Adjustment						—						—						2.0						2.0
Net incremental amount to be collected under the RBA rate tariffs						$	20.3					$	3.8					$	6.1					$	30.2

Note: Columns may not foot due to rounding.

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 the fourth quarter of 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.

Consolidating financial information. Consolidating financial information for Hawaiian Electric and its subsidiaries are presented for the years ended December 31, 2023, 2022 and 2021, and as of December 31, 2023 and 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.

Consolidating statement of income

Year ended December 31, 2023

(in thousands)			Hawaiian Electric						Hawaii Electric Light						Maui Electric												Consolidating adjustments									Hawaiian Electric Consolidated
Revenues			$	2,356,478					464,161						448,882												—									$	3,269,521
Expenses
Fuel oil			913,801						105,009						192,610												—									1,211,420
Purchased power			486,067						142,837						42,865												—									671,769
Other operation and maintenance			343,462						85,261						104,834												—									533,557
Depreciation			164,150						42,541						37,014												—									243,705
Taxes, other than income taxes			221,664						43,095						42,153												—									306,912
Total expenses			2,129,144						418,743						419,476												—									2,967,363
Operating income			227,334						45,418						29,406												—									302,158
Allowance for equity funds used during construction			11,721						1,411						2,032												—									15,164
Equity in earnings of subsidiaries			44,809						—						—												(44,809)			[2]						—
Retirement defined benefits credit (expense)—other than service costs			3,735						667						(99)												—									4,303
Interest expense and other charges, net			(62,362)						(11,650)						(12,933)												805			[1]						(86,140)
Allowance for borrowed funds used during construction			4,081						451						669												—									5,201
Interest Income			5,113						1,071						1,075												(805)			[1]						6,454
Income before income taxes			234,431						37,368						20,150												(44,809)									247,140
Income taxes			39,399						8,327						3,467												—									51,193
Net income			195,032						29,041						16,683												(44,809)									195,947
Preferred stock dividends of subsidiaries			—						534						381												—									915
Net income attributable to Hawaiian Electric			195,032						28,507						16,302												(44,809)									195,032
Preferred stock dividends of Hawaiian Electric			1,080						—						—												—									1,080
Net income for common stock			$	193,952					28,507						16,302												(44,809)									$	193,952

Consolidating statement of comprehensive income

Year ended December 31, 2023

(in thousands)			Hawaiian Electric						Hawaii Electric Light						Maui Electric												Consolidating adjustments									Hawaiian Electric Consolidated
Net income for common stock			$	193,952					28,507						16,302												(44,809)									$	193,952
Other comprehensive loss, net of taxes:
Retirement benefit plans:
Net gains arising during the period, net of taxes			10,175						961						1,275												(2,236)			[1]						10,175
Adjustment for amortization of prior service credit and net gains recognized during the period in net periodic benefit cost, net of taxes			(1,983)						(221)						(266)												487			[1]						(1,983)
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes			(8,204)						(752)						(978)												1,730			[1]						(8,204)
Other comprehensive income (loss), net of taxes			(12)						(12)						31												(19)									(12)
Comprehensive income attributable to common shareholder			$	193,940					28,495						16,333												(44,828)									$	193,940

Consolidating statement of income

Year ended December 31, 2022

(in thousands)			Hawaiian Electric						Hawaii Electric Light						Maui Electric												Consolidating adjustments									Hawaiian Electric Consolidated
Revenues			$	2,452,969					485,590						470,355												(327)			[1]						$	3,408,587
Expenses
Fuel oil			917,801						133,238						214,575												—									1,265,614
Purchased power			601,235						143,636						48,713												—									793,584
Other operation and maintenance			326,785						85,110						85,706												—									497,601
Depreciation			158,725						41,404						35,295												—									235,424
Taxes, other than income taxes			228,843						44,685						43,645												—									317,173
Total expenses			2,233,389						448,073						427,934												—									3,109,396
Operating income			219,580						37,517						42,421												(327)									299,191
Allowance for equity funds used during construction			8,464						898						1,212												—									10,574
Equity in earnings of subsidiaries			47,493						—						—												(47,493)			[2]						—
Retirement defined benefits credit (expense)—other than service costs			3,296						666						(127)												—									3,835
Interest expense and other charges, net			(55,260)						(10,659)						(10,824)												327			[1]						(76,416)
Allowance for borrowed funds used during construction			2,769						277						370												—									3,416
Income before income taxes			226,342						28,699						33,052												(47,493)									240,600
Income taxes			36,333						6,349						6,994												—									49,676
Net income			190,009						22,350						26,058												(47,493)									190,924
Preferred stock dividends of subsidiaries			—						534						381												—									915
Net income attributable to Hawaiian Electric			190,009						21,816						25,677												(47,493)									190,009
Preferred stock dividends of Hawaiian Electric			1,080						—						—												—									1,080
Net income for common stock			$	188,929					21,816						25,677												(47,493)									$	188,929

Consolidating statement of comprehensive income

Year ended December 31, 2022

(in thousands)			Hawaiian Electric						Hawaii Electric Light						Maui Electric												Consolidating adjustments									Hawaiian Electric Consolidated
Net income for common stock			$	188,929					21,816						25,677												(47,493)									$	188,929
Other comprehensive income, net of taxes:
Retirement benefit plans:
Net gains arising during the period, net of taxes			187,193						44,411						44,386												(88,797)			[1]						187,193
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes			18,884						2,811						2,584												(5,395)			[1]						18,884
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes			(199,936)						(46,841)						(46,694)												93,535			[1]						(199,936)
Other comprehensive income, net of taxes			6,141						381						276												(657)									6,141
Comprehensive income attributable to common shareholder			$	195,070					22,197						25,953												(48,150)									$	195,070

Consolidating statement of income

Year ended December 31, 2021

(in thousands)			Hawaiian Electric						Hawaii Electric Light						Maui Electric												Consolidating adjustments									Hawaiian Electric Consolidated
Revenues			$	1,793,372					381,033						365,256												(25)			[1]						$	2,539,636
Expenses
Fuel oil			442,818						80,086						121,445												—									644,349
Purchased power			508,642						108,997						52,855												—									670,494
Other operation and maintenance			313,009						79,390						83,013												—									475,412
Depreciation			155,607						40,201						33,661												—									229,469
Taxes, other than income taxes			170,604						35,499						34,251												—									240,354
Total expenses			1,590,680						344,173						325,225												—									2,260,078
Operating income			202,692						36,860						40,031												(25)									279,558
Allowance for equity funds used during construction			7,734						586						1,214												—									9,534
Equity in earnings of subsidiaries			45,353						—						—												(45,353)			[2]						—
Retirement defined benefits credit (expense)—other than service costs			3,348						670						(128)												—									3,890
Interest expense and other charges, net			(51,680)						(10,353)						(10,439)												25			[1]						(72,447)
Allowance for borrowed funds used during construction			2,617						197						436												—									3,250
Income before income taxes			210,064						27,960						31,114												(45,353)									223,785
Income taxes			31,342						6,246						6,560												—									44,148
Net income			178,722						21,714						24,554												(45,353)									179,637
Preferred stock dividends of subsidiaries			—						534						381												—									915
Net income attributable to Hawaiian Electric			178,722						21,180						24,173												(45,353)									178,722
Preferred stock dividends of Hawaiian Electric			1,080						—						—												—									1,080
Net income for common stock			$	177,642					21,180						24,173												(45,353)									$	177,642

Consolidating statement of comprehensive income

Year ended December 31, 2021

(in thousands)			Hawaiian Electric						Hawaii Electric Light						Maui Electric												Consolidating adjustments									Hawaiian Electric Consolidated
Net income for common stock			$	177,642					21,180						24,173												(45,353)									$	177,642
Other comprehensive income (loss), net of taxes:
Retirement benefit plans:
Net gains arising during the period, net of taxes			151,523						17,902						16,572												(34,474)			[1]						151,523
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of taxes			19,461						2,749						2,553												(5,302)			[1]						19,461
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes			(171,345)						(20,585)						(18,898)												39,483			[1]						(171,345)
Other comprehensive income (loss), net of tax benefits			(361)						66						227												(293)									(361)
Comprehensive income attributable to common shareholder			$	177,281					21,246						24,400												(45,646)									$	177,281

Consolidating balance sheet

December 31, 2023

(in thousands)			Hawaiian Electric						Hawaii Electric Light						Maui Electric						Other subsidiary						Consolidating adjustments									Hawaiian Electric Consolidated
Assets
Property, plant and equipment
Utility property, plant and equipment
Land			$	42,859					5,645						3,594						—						—									$	52,098
Plant and equipment			5,398,281						1,459,639						1,374,890						—						—									8,232,810
Finance lease right-of-use assets			306,099						36,075						—						—						—									342,174
Less accumulated depreciation			(1,925,660)						(666,581)						(605,273)						—						—									(3,197,514)
Construction in progress			247,836						33,488						38,899						—						—									320,223
Utility property, plant and equipment, net			4,069,415						868,266						812,110						—						—									5,749,791
Nonutility property, plant and equipment, less accumulated depreciation			5,295						115						1,532						—						—									6,942
Total property, plant and equipment, net			4,074,710						868,381						813,642						—						—									5,756,733
Investment in wholly-owned subsidiaries, at equity			722,211						—						—						—						(722,211)			[2]						—
Current assets
Cash and cash equivalents			89,755						10,658						5,587						77						—									106,077
Restricted cash			2,000						—						—						—						—									2,000
Advances to affiliates			70,500						—						—						—						(70,500)			[1]						—
Customer accounts receivable, net			172,747						38,216						33,346						—						—									244,309
Accrued unbilled revenues, net			136,367						25,102						24,175						—						—									185,644
Other accounts receivable, net			143,160						13,318						32,521						—						(77,480)			[1]						111,519
Fuel oil stock, at average cost			108,228						17,968						22,041						—						—									148,237
Materials and supplies, at average cost			64,334						14,397						35,702						—						—									114,433
Prepayments and other			40,767						7,724						11,638						—						(1,638)			[1]						58,491
Regulatory assets			58,920						5,771						3,762						—						—									68,453
Total current assets			886,778						133,154						168,772						77						(149,618)									1,039,163
Other long-term assets
Operating lease right-of-use assets			34,856						27,470						9,551						—						—									71,877
Regulatory assets			189,417						13,575						23,359						—						—									226,351
Other			134,033						36,439						33,129						—						(14,171)			[1]						189,430
Total other long-term assets			358,306						77,484						66,039						—						(14,171)									487,658
Total assets			$	6,042,005					1,079,019						1,048,453						77						(886,000)									$	7,283,554
Capitalization and liabilities
Capitalization
Common stock equity			$	2,409,110					359,790						362,344						77						(722,211)			[2]						$	2,409,110
Cumulative preferred stock–not subject to mandatory redemption			22,293						7,000						5,000						—						—									34,293
Long-term debt, net			1,426,516						249,339						258,422						—						—									1,934,277
Total capitalization			3,857,919						616,129						625,766						77						(722,211)									4,377,680
Current liabilities
Current portion of operating lease liabilities			6,788						7,025						2,804						—						—									16,617
Short-term borrowings-affiliate			—						—						70,500						—						(70,500)			[1]						—
Accounts payable			136,102						29,418						25,520						—						—									191,040
Interest and preferred dividends payable			17,085						3,098						3,074						—						(375)			[1]						22,882
Taxes accrued, including revenue taxes			211,840						43,932						37,808						—						(1,638)			[1]						291,942
Regulatory liabilities			20,013						8,508						8,038						—						—									36,559
Other			165,131						33,240						50,170						—						(77,105)			[1]						171,436
Total current liabilities			556,959						125,221						197,914						—						(149,618)									730,476
Deferred credits and other liabilities
Operating lease liabilities			34,262						20,792						7,044						—						—									62,098
Finance lease liabilities			295,935						35,043						—						—						—									330,978
Deferred income taxes			280,029						51,661						67,311						—						—									399,001
Regulatory liabilities			803,404						199,173						111,554						—						—									1,114,131
Unamortized tax credits			61,130						11,650						11,532						—						—									84,312
Defined benefit pension and other postretirement benefit plans liability			74,842						—						—						—						(14,171)			[1]						60,671
Other			77,525						19,350						27,332												—									124,207
Total deferred credits and other liabilities			1,627,127						337,669						224,773						—						(14,171)									2,175,398
Total capitalization and liabilities			$	6,042,005					1,079,019						1,048,453						77						(886,000)									$	7,283,554

Consolidating balance sheet

December 31, 2022

(in thousands)			Hawaiian Electric						Hawaii Electric Light						Maui Electric						Other subsidiary						Consolidating 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)			[2]						—
Current assets
Cash and cash equivalents			27,579						5,092						6,494						77						—									39,242
Advances to affiliates			—						4,500						21,700						—						(26,200)			[1]						—
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)			[1]						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)			[1]						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)			[1]						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]						$	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, net			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)			[1]						—
Accounts payable			143,253						32,113						27,126						—						—									202,492
Interest and preferred dividends payable			12,398						2,576						2,282						—						(80)			[1]						17,176
Taxes accrued, including revenue taxes			207,798						42,436						40,709						—						(1,041)			[1]						289,902
Regulatory liabilities			13,145						8,553						9,777						—						—									31,475
Other			64,659						20,856						22,385						—						(22,304)			[1]						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)			[1]						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

Consolidating statements of changes in common stock equity

(in thousands)			Hawaiian Electric						Hawaii Electric Light						Maui Electric						Other subsidiary						Consolidating adjustments						Hawaiian Electric Consolidated
Balance, December 31, 2020			$	2,141,918					317,451						309,363						77						(626,891)						$	2,141,918
Net income for common stock			177,642						21,180						24,173						—						(45,353)						177,642
Other comprehensive income (loss), net of taxes			(361)						66						227						—						(293)						(361)
Issuance of common stock, net of expenses			54,400						8,803						24,597						—						(33,400)						54,400
Common stock dividends			(111,700)						(14,600)						(15,100)						—						29,700						(111,700)
Balance, December 31, 2021			2,261,899						332,900						343,260						77						(676,237)						2,261,899
Net income for common stock			188,929						21,816						25,677						—						(47,493)						188,929
Other comprehensive income, net of taxes			6,141						381						276						—						(657)						6,141
Issuance of common stock, net of expenses			13,101						6,023						3,023						—						(9,046)						13,101
Common stock dividends			(125,900)						(16,400)						(15,200)						—						31,600						(125,900)
Balance, December 31, 2022			2,344,170						344,720						357,036						77						(701,833)						2,344,170
Net income for common stock			193,952						28,507						16,302						—						(44,809)						193,952
Other comprehensive income (loss), net of taxes			(12)						(12)						31						—						(19)						(12)
Common stock dividends			(129,000)						(13,425)						(11,025)						—						24,450						(129,000)
Balance, December 31, 2023			2,409,110						359,790						362,344						77						(722,211)						2,409,110

Consolidating statement of cash flows

Year ended December 31, 2023

(in thousands)			Hawaiian Electric						Hawaii Electric Light						Maui Electric						Other subsidiary						Consolidating adjustments									Hawaiian Electric  Consolidated
Cash flows from operating activities
Net income			$	195,032					29,041						16,683						—						(44,809)			[2]						$	195,947
Adjustments to reconcile net income to net cash provided by operating activities
Equity in earnings of subsidiaries			(44,809)						—						—						—						44,809			[2]						—
Common stock dividends received from subsidiaries			24,450						—						—						—						(24,450)			[2]						—
Depreciation of property, plant and equipment			164,150						42,541						37,014						—						—									243,705
Other amortization			17,692						5,003						3,795						—						—									26,490
Deferred income tax expense (benefit)			(851)						(296)						2,586						—						—									1,439
State refundable credit			(7,577)						(1,782)						(1,966)						—						—									(11,325)
Bad debt expense			5,565						1,353						1,243						—						—									8,161
Allowance for equity funds used during construction			(11,721)						(1,411)						(2,032)						—						—									(15,164)
Other			380						(46)						126						—						—									460
Changes in assets and liabilities:
Increase in accounts receivable			(83,401)						(7,398)						(29,301)						—						55,096			[1]						(65,004)
Decrease (increase) in accrued unbilled revenues			8						(1,308)						(1,748)						—						—									(3,048)
Decrease (increase) in fuel oil stock			45,114						(1,004)						(817)						—						—									43,293
Increase in materials and supplies			(16,204)						(4,614)						(14,047)						—						—									(34,865)
Decrease (increase) in regulatory assets			(6,616)						5,501						(9,498)						—						—									(10,613)
Increase (decrease) in regulatory liabilities			48,833						(1,176)						6,813						—						—									54,470
Increase in accounts payable			13,988						5,998						468						—						—									20,454
Change in prepaid and accrued income taxes, tax credits and revenue taxes			4,314						2,407						(4,843)						—						—									1,878
Decrease in defined benefit pension and other postretirement benefit plans liability			(5,653)						(1,348)						(1,185)						—						—									(8,186)
Change in other assets and liabilities			62,010						2,056						17,305						—						(55,096)			[1]						26,275
Net cash provided by operating activities			404,704						73,517						20,596						—						(24,450)									474,367
Cash flows from investing activities
Capital expenditures			(276,600)						(63,889)						(98,286)						—						—									(438,775)
Advances from (to) affiliates			(70,500)						4,500						21,700						—						44,300			[1]						—
Other			4,118						932						1,126						—						—									6,176
Net cash used in investing activities			(342,982)						(58,457)						(75,460)						—						44,300									(432,599)
Cash flows from financing activities
Common stock dividends			(129,000)						(13,425)						(11,025)						—						24,450			[2]						(129,000)
Preferred stock dividends of Hawaiian Electric and subsidiaries			(1,080)						(534)						(381)						—						—									(1,995)
Proceeds from issuance of long-term debt			300,000						25,000						25,000						—						—									350,000
Repayment of long-term debt			(50,000)						(20,000)						(30,000)						—						—									(100,000)
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less			(114,167)						—						70,500						—						(44,300)			[1]						(87,967)
Payments of obligations under finance leases			(2,728)						(400)						—						—						—									(3,128)
Other			(571)						(135)						(137)						—						—									(843)
Net cash provided by (used in) financing activities			2,454						(9,494)						53,957						—						(19,850)									27,067
Net increase (decrease) in cash, cash equivalents and restricted cash			64,176						5,566						(907)						—						—									68,835
Cash, cash equivalents and restricted cash, January 1			27,579						5,092						6,494						77						—									39,242
Cash, cash equivalents and restricted cash, December 31			91,755						10,658						5,587						77						—									108,077
Less: Restricted cash			(2,000)						—						—						—						—									(2,000)
Cash and cash equivalents, December 31			$	89,755					10,658						5,587						77						—									$	106,077

Consolidating statement of cash flows

Year ended December 31, 2022

(in thousands)			Hawaiian Electric						Hawaii Electric Light						Maui Electric						Other subsidiary						Consolidating adjustments									Hawaiian Electric Consolidated
Cash flows from operating activities
Net income			$	190,009					22,350						26,058						—						(47,493)			[2]						$	190,924
Adjustments to reconcile net income to net cash provided by operating activities
Equity in earnings of subsidiaries			(47,493)						—						—						—						47,493			[2]						—
Common stock dividends received from subsidiaries			31,600						—						—						—						(31,600)			[2]						—
Depreciation of property, plant and equipment			158,725						41,404						35,295						—						—									235,424
Other amortization			16,708						4,996						3,616						—						—									25,320
Deferred income taxes			(33,648)						(4,040)						(3,727)						—						—									(41,415)
State refundable credit			(7,375)						(1,734)						(1,890)						—						—									(10,999)
Bad debt expense			4,175						1,073						779						—						—									6,027
Allowance for equity funds used during construction			(8,464)						(898)						(1,212)						—						—									(10,574)
Other			(65)						(50)						(24)						—						—									(139)
Changes in assets and liabilities:
Increase in accounts receivable			(74,067)						(11,644)						(10,680)						—						4,649			[1]						(91,742)
Increase in accrued unbilled revenues			(43,972)						(4,289)						(5,762)						—						—									(54,023)
Increase in fuel oil stock			(82,158)						(4,150)						(1,144)						—						—									(87,452)
Increase in materials and supplies			(6,124)						(56)						(1,511)						—						—									(7,691)
Decrease in regulatory assets			28,076						1,546						4,978						—						—									34,600
Increase in regulatory liabilities			28,621						7,977						8,290												—									44,888
Decrease in accounts payable			18,657						3,294						404						—						—									22,355
Change in prepaid and accrued income taxes, tax credits and revenue taxes			77,903						11,117						14,178						—						—									103,198
Decrease in defined benefit pension and other postretirement benefit plans liability			(3,545)						(626)						(657)						—						—									(4,828)
Change in other assets and liabilities			(17,884)						213						(3,623)						—						(4,649)			[1]						(25,943)
Net cash provided by operating activities			229,679						66,483						63,368						—						(31,600)									327,930
Cash flows from investing activities
Capital expenditures			(223,223)						(49,004)						(57,230)						—						—									(329,457)
Advances from (to) affiliates			1,000						(4,500)						(21,700)						—						25,200			[1]						—
Other			(5,687)						760						1,253						—						9,046			[1],[2]						5,372
Net cash used in investing activities			(227,910)						(52,744)						(77,677)						—						34,246									(324,085)
Cash flows from financing activities
Common stock dividends			(125,900)						(16,400)						(15,200)						—						31,600			[2]						(125,900)
Preferred stock dividends of Hawaiian Electric and subsidiaries			(1,080)						(534)						(381)						—						—									(1,995)
Proceeds from the issuance of common stock			13,101						6,023						3,023						—						(9,046)			[2]						13,101
Proceeds from the issuance of long-term debt			40,000						10,000						10,000						—						—									60,000
Repayment of long-term debt			(40,000)						(12,000)						—						—						—									(52,000)
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less			114,167						(1,000)						—						—						(25,200)			[1]						87,967
Payments of obligations under finance leases			(670)						—						—						—						—									(670)
Other			(241)						(62)						(61)						—						—									(364)
Net cash used in financing activities			(623)						(13,973)						(2,619)						—						(2,646)									(19,861)
Net increase (decrease) in cash, cash equivalents and restricted cash			1,146						(234)						(16,928)						—						—									(16,016)
Cash, cash equivalents and restricted cash, January 1			26,433						5,326						23,422						77						—									55,258
Cash, cash equivalents and restricted cash, December 31			27,579						5,092						6,494						77						—									39,242
Less: Restricted cash			—						—						—						—						—									—
Cash and cash equivalents, December 31			$	27,579					5,092						6,494						77						—									$	39,242

Consolidating statement of cash flows

Year ended December 31, 2021

(in thousands)			Hawaiian Electric						Hawaii Electric Light						Maui Electric						Other subsidiary						Consolidating adjustments									Hawaiian Electric Consolidated
Cash flows from operating activities
Net income			$	178,722					21,714						24,554						—						(45,353)			[2]						$	179,637
Adjustments to reconcile net income to net cash provided by operating activities
Equity in earnings of subsidiaries			(45,353)						—						—						—						45,353			[2]						—
Common stock dividends received from subsidiaries			29,700						—						—						—						(29,700)			[2]						—
Depreciation of property, plant and equipment			155,607						40,201						33,661						—						—									229,469
Other amortization			16,688						3,532						1,517						—						—									21,737
Deferred income tax expense (benefit)			(3,191)						(1,955)						1,317						—						—									(3,829)
State refundable credit			(7,120)						(1,672)						(1,790)						—						—									(10,582)
Bad debt expense			1,159						509						515						—						—									2,183
Allowance for equity funds used during construction			(7,734)						(586)						(1,214)						—						—									(9,534)
Bill credits			1,400						300						300						—						—									2,000
Other			366						(41)						1,025						—						—									1,350
Changes in assets and liabilities:
Increase in accounts receivable			(41,727)						(6,832)						(3,071)						—						1,540			[1]						(50,090)
Increase in accrued unbilled revenues			(18,345)						(5,816)						(3,303)						—						—									(27,464)
Increase in fuel oil stock			(32,407)						(4,343)						(9,090)						—						—									(45,840)
Decrease (increase) in materials and supplies			(3,220)						169						(1,482)						—						—									(4,533)
Decrease (increase) in regulatory assets			(15,422)						24						1,524						—						—									(13,874)
Increase (decrease) in regulatory liabilities			16,269						(1,031)						120						—						—									15,358
Decrease in accounts payable			9,828						4,723						3,120						—						—									17,671
Change in prepaid and accrued income taxes, tax credits and revenue taxes			21,217						3,861						1,938						—						(86)			[1]						26,930
Decrease in defined benefit pension and other postretirement benefit plans liability			(3,480)						(950)						(724)						—						—									(5,154)
Change in other assets and liabilities			(36,733)						(5,833)						(8,196)						—						(1,540)			[1]						(52,302)
Net cash provided by operating activities			216,224						45,974						40,721						—						(29,786)									273,133
Cash flows from investing activities
Capital expenditures			(194,984)						(50,516)						(46,500)						—						—									(292,000)
Advances to affiliates			25,700						—						—						—						(25,700)			[1]						—
Other			(29,596)						1,072						1,073						—						33,486			[1][2]						6,035
Net cash used in investing activities			(198,880)						(49,444)						(45,427)						—						7,786									(285,965)
Cash flows from financing activities
Common stock dividends			(111,700)						(14,600)						(15,100)						—						29,700			[2]						(111,700)
Preferred stock dividends of Hawaiian Electric and subsidiaries			(1,080)						(534)						(381)						—						—									(1,995)
Proceeds from the issuance of common stock			54,400						8,803						24,597						—						(33,400)			[2]						54,400
Proceeds from the issuance of long-term debt			60,000						30,000						25,000						—						—									115,000
Net increase (decrease) in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less			—						(17,800)						(7,900)						—						25,700			[1]						—
Repayment of short-term debt			(50,000)						—						—						—						—									(50,000)
Other			(702)						(119)						(120)						—						—									(941)
Net cash provided by (used in) financing activities			(49,082)						5,750						26,096						—						22,000									4,764
Net increase (decrease) in cash, cash equivalents and restricted cash			(31,738)						2,280						21,390						—						—									(8,068)
Cash, cash equivalents and restricted cash, January 1			58,171						3,046						2,032						77						—									63,326
Cash, cash equivalents and restricted cash, December 31			26,433						5,326						23,422						77						—									55,258
Less: Restricted cash			(3,089)						—						—						—						—									(3,089)
Cash and cash equivalents, December 31			$	23,344					5,326						23,422						77						—									$	52,169

Explanation of consolidating adjustments on consolidating schedules:

[1] Eliminations of intercompany receivables and payables and other intercompany transactions

[2] Elimination of investment in subsidiaries, carried at equity

X

- Definition

-- None. No documentation exists for this element. --

+ References

No definition available.

+ Details

Name:	he_ElectricUtilitySubsidiaryAbstract
Namespace Prefix:	he_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

This element encapsulates disclosures pertaining to electric utility subsidiary.

+ References

No definition available.

+ Details

Name:	he_ElectricUtilitySubsidiaryTextBlock
Namespace Prefix:	he_
Data Type:	dtr-types1:textBlockItemType
Balance Type:	na
Period Type:	duration