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Electric utility segment

6 Months Ended

Jun. 30, 2025

Electric Utility Subsidiary [Abstract]

Consolidated variable interest entities (VIEs). The HE AR INTER LLC and its direct subsidiary, HE AR BRWR LLC, (collectively, the Special Purpose Entities or SPEs) are bankruptcy remote, direct and indirect wholly owned subsidiaries of the Utilities. Pursuant to the asset-based lending facility (ABL Facility) credit agreement, the Utilities sells certain accounts receivable to the SPEs as collateral, which in turn, obtain financing from financial institutions. As of June 30, 2025, the ABL Facility remains undrawn and the SPEs have $320.5 million of net accounts receivable, included in “Customer accounts receivable, net,” and “Accrued unbilled revenues, net” on the Utilities’ Condensed Consolidated Balance Sheet and “Accounts receivable and unbilled revenues, net” on the Company’s Condensed Consolidated Balance Sheet.

The SPEs are considered VIEs due to insufficient equity investment at risk. The most significant activities that impact the economic performance of the SPEs are cash and financing management. The Utilities are considered the primary beneficiary as the Utilities direct the activities related to cash and financing management and therefore, are required to consolidate the SPEs. Although the SPEs are direct and indirect wholly owned consolidated subsidiaries of the Utilities, the SPEs are legally separate from the Utilities. The assets of the SPEs (which are primarily accounts receivables) are not available to creditors of the Utilities.

Unconsolidated variable interest entities.

Power purchase agreements. As of June 30, 2025, the Utilities had four power purchase agreements (PPAs) for firm capacity and other PPAs with independent power producers (IPPs) and Schedule Q providers (i.e., customers with cogeneration and/or power production facilities who buy power from or sell power to the Utilities), none of which are currently required to be consolidated as VIEs.

Pursuant to the current accounting standards for VIEs, the Utilities are deemed to have a variable interest in Kalaeloa Partners, L.P. (Kalaeloa) and Hamakua Energy by reason of the provisions of the PPA that the Utilities have with the two IPPs. However, management has concluded that the Utilities are not the primary beneficiary of Kalaeloa and Hamakua Energy because the Utilities do not have the power to direct the activities that most significantly impact the two IPPs’ economic performance nor the obligation to absorb their expected losses, if any, that could potentially be significant to the IPPs. Thus, the Utilities have not consolidated Kalaeloa and Hamakua Energy in its condensed consolidated financial statements. On March 10, 2025, the sale of Hamakua Energy was closed and is no longer owned by Pacific Current. Hamakua Energy was an indirect subsidiary of Pacific Current and was included in HEI’s condensed consolidated financial statements up until sale date.

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

GLST1. Effective March 31, 2025, HEI assigned 60% of the membership interests of GLST1 to Hawaiian Electric. The Utilities are deemed to have a variable interest in GLST1 but concluded that the Utilities are not the primary beneficiary of GLST1. As a result, the Utilities accounted for the membership interests under the equity method of accounting as the Utilities have the ability to exercise significant influence. As of June 30, 2025, the assigned equity interests total $287.3 million, which is reported on “Investment in unconsolidated affiliate” on the Utilities’ Condensed Consolidated Balance Sheet.

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 (viii) 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.

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, 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 (D&O) denying the amended and restated PPA, which was affirmed by the Hawaii Supreme Court on March 13, 2023. On November 16, 2023, Hu Honua filed its Motion for Leave to File 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 court issued a D&O on the motion on April 2, 2024, which was consistent with Hawaii Electric Light's position, only allowing amendments that were agreed to and not allowing Hu Honua to add new claims or parties, effectively leaving Hu Honua with its previously-pled breach of contract and antitrust claims. Hu Honua filed its objection to the order on April 16, 2024 and the Hawaiian Electric defendants filed their response to the objection on April 30, 2024. On September 12, 2024, the court issued its decision affirming the April 2, 2024 order. Hu Honua filed its Third Amended and Supplemental Complaint on October 25, 2024, and after discussion with the Hawaiian Electric defendants and the court, filed its Amended Third Amended and Supplemental Complaint on December 3, 2024. The Hawaiian Electric defendants filed their Motion to Compel Arbitration on the contract claims and Motion to Dismiss the antitrust claims on January 7, 2025, and the matter was heard by the U.S. District Court on March 31, 2025. On April 17, 2025, the U.S. District Court granted Hawaii Electric Light’s Motion to Dismiss in part, dismissing the Federal Antitrust claims, but declining to exercise jurisdiction over the State antitrust claim. With the U.S. District Court declining to exercise jurisdiction over the remaining State claims, the Motion to Compel Arbitration on the contract claims was denied as moot. The remaining State claims, including the contract claims and the State antitrust claim, were dismissed without prejudice.

On December 24, 2024, Hawaii Electric Light received correspondence from Hu Honua, stating that Hu Honua sought to sell energy and capacity as a Qualifying Facility under Hawaii’s implementation of The Public Utility Regulatory Policies Act. On March 18, 2025, Hawaii Electric Light and Hu Honua informed the PUC that negotiations regarding this potential arrangement were ongoing with the intention to reach agreement on material terms and requested an extension of time to complete negotiations and for Hawaii Electric Light to submit a petition for hearing under the Hawaii Administrative Rules. On June 3, 2025, Hawaii Electric Light and Hu Honua provided an update to the PUC stating that substantial progress had been made and an agreement in principle had been reached on major terms. The update informed the PUC that the parties would continue negotiations with the intent to submit an application for approval of a PPA upon completion of such efforts.

On May 14, 2025, Hu Honua filed its notice of appeal in federal Ninth Circuit court. Due to the ongoing negotiations between Hu Honua and Hawaii Electric Light, the briefing schedule has been vacated, and Hu Honua is to provide a status report by November 10, 2025, and the docket is temporarily closed for administrative purposes until January 9, 2026.

On May 16, 2025, Hu Honua filed its complaint in State court for the remaining State claims. Hu Honua has granted Hawaii Electric Light an extension to respond while negotiations are ongoing.

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. Trial was initially set for September 16, 2025, but recently ordered to be continued to a date yet to be determined.

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 $2.4 million as of June 30, 2025, 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. A pre-trial hearing was held in June 2025, and trial is tentatively set for October 2025.

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 June 30, 2025, the reserve account balance recorded by Hawaiian Electric to address the PCB contamination was $9.5 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.

Endangered Species Act. The Utilities received a notice under the federal Endangered Species Act, from Earthjustice on behalf of the American Bird Conservancy and Conservation Council for Hawaii (Conservation Groups) in January 2024. The notice is the pre-cursor to a citizen’s suit under the Endangered Species Act. The notice alleges that the Utilities are out of compliance with the Act due to alleged impacts on endangered seabirds caused by the Utilities’ powerlines, street lights and facility lights on Maui and Lanai. At the time the notice was served, the Utilities were already in the process of drafting a Habitat Conservation Plan (HCP) with respect to the powerlines and will be applying for associated state and federal take/license permits. Notwithstanding, the notice asserts that the scope of the HCP should be broader and additional interim measures are necessary while the HCP and related permits are pending.

After negotiations among the parties a complaint was filed on November 12, 2024, regarding the powerlines and on December 11, 2024, the court approved a settlement agreement. Pursuant to that agreement, the Utilities will continue the HCP process and take specific actions to minimize and mitigate the potential impact of the Utilities’ powerlines while the document is being prepared. The agreement also contains additional requirements that include coordination with the Conservation Groups with various aspects of the HCP and powerline operations, and continuing the Utilities’ commitment to a species mitigation project with University of Hawaii Foundation to monitor, protect and increase the population of Hawaiian Petrels.

The street and facility lights aspect of the notice was not resolved and a second complaint was filed on November 19, 2024, that includes the County of Maui as a party. Hawaiian Electric and Maui Electric answered the complaint on December 12, 2024 and at this time, the parties are engaging in discovery and settlement discussions to try and resolve the matter. On July 3, 2025, an interim agreement was executed by the parties with respect to foregoing the need for injunctive relief in 2025. However, the Utilities are unable to determine the ultimate outcome or the amount of any possible loss. A trial is set for April 20, 2026.

Commitments.

Purchase commitments. As of December 31, 2024, the Utilities’ estimated future minimum payments pursuant to purchase obligations related to material contracts of $2.2 billion. See Note 4 of the Notes to the Consolidated Financial Statements in Item 8 of the 2024 Form 10-K.

On March 25, 2025, Hale Kuawehi located on Hawaii Island, reached commercial operations, which has a capacity of 30 MW with 120-MWh batteries, and a total annual payment of $11.9 million. The battery portion of the PPA was recorded as a finance lease liability with corresponding right-of-use asset of $42.3 million in the first quarter of 2025. As of June 30, 2025, a total of eight Stage 1 and Stage 2 renewable projects provide the Utilities a capacity of 249.5 MW, with 1,563-MWh batteries.

On July 11, 2025, Hoohana Solar located on Oahu, reached commercial operations, which has a capacity of 52 MW with 208-MWh batteries, and a total annual lump sum payment of $13.4 million. The battery portion of the PPA was recorded as a finance lease liability with corresponding right-of-use asset of $51.3 million upon commencement.

Purchases from all IPPs were as follows:


	Three months ended June 30				Six months ended June 30
(in millions)	2025		2024		2025		2024
Kalaeloa Partners, L.P.	$	69	$	79	$	128	$	145

HPOWER	20		16		39		33
Puna Geothermal Venture	6		14		19		27
Hamakua Energy	8		5		13		16
Kapolei Energy Storage	6		6		12		12
Wind IPPs	36		37		57		67
Solar IPPs	29		21		51		36
Other IPPs 1	1		3		3		5
Total IPPs	$	175	$	181	$	322	$	341

1 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 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 Exceptional Project Recovery Mechanism. Project costs incurred as of June 30, 2025, amount to $9.7 million. In July 2025, the PUC approved the Utilities’ request to authorize recovery of costs in addition to the amounts approved in December 2023 due to the uncertainty of changes in law, limited to the lesser of either the actual costs or 20% over the approved estimated capital costs.

Climate Adaptation Transmission and Distribution Resilience Program. The Utilities maintain that improving resiliency of the electric grid is an urgent matter and recognizes that climate change is making Hawaii increasingly vulnerable to severe 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 will focus on, among other things, system hardening in wildfire risk areas including installing video camera and weather monitors in wildfire risk areas and strengthening transmission lines to help prevent ignition enable quicker response and to add situational awareness.

The project costs to be recovered through Exceptional Project Recovery Mechanism is subject to a cap of $95 million and any amount in excess will be subject to the PUC’s further review. On August 7, 2024, the Utilities received a notification from the U.S. Department of Energy that its application for $95 million in federal funds under the Infrastructure Investment and Jobs Act (IIJA) was officially awarded. On August 20, 2024, the Utilities submitted a copy of their executed agreement with the Department of Energy to the PUC. On November 18, 2024, the Utilities filed their August 2024 - August 2025 Forward Looking Annual Report. Project costs incurred as of June 30, 2025, amount to $27.0 million.

In 2025, President Trump issued multiple Executive Orders that impact both IIJA and Inflation Reduction Act funding. These Executive Orders could potentially lead to project delays and economic uncertainty. The Utilities are still evaluating the potential impact and continue to monitor for impacts of any new Executive Orders and changes that are passed down through the federal contracting officer for the Resilience Program. As of June 30, 2025, the Utilities’ reimbursement requests have been granted.

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 Performance-based regulation (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 continue as previously implemented (e.g., the Energy Cost Recovery Clause (ECRC), 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 return on average common equity (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. Changes to the existing PIMs and SSMs have been made as separate requests and are discussed further below.

On June 19, 2024, and July 30, 2024, the PUC issued orders providing guidance regarding the comprehensive evaluation of the PBR Framework that will commence in the fourth year of the PBR Framework’s first MRP (PBR Framework Review). The current PBR multiyear rate plan (MRP) will end on May 31, 2026, and the next MRP (MRP2) will commence on January 1, 2027. The period in between these dates will be used to address any implementation details that may arise ahead of MRP2. The PBR Framework Review will proceed in three phases: (i) the evaluation of the current PBR Framework, (ii) the examination of proposal for modifications to the PBR Framework, and (iii) the implementation of modifications prior to commencing the second MRP. At the PBR working group meetings held on August 30, 2024 and October 25, 2024, the working group discussed issues and considerations regarding re-basing target revenues for MRP2.

On November 8, 2024, the PUC issued an order establishing a briefing schedule for determining whether to re-base target revenues. On December 5, 2024, the parties timely submitted their respective briefs addressing the issues of whether and how to rebase target revenues.

In its order issued on February 27, 2025, the PUC concluded that Utilities’ target revenues should be re-based for MRP2 and allowed the Utilities to file a single, consolidated application that presents their requested adjustment to target revenues. The proceeding to re-base the Utilities’ target revenues for MRP2 shall be bifurcated into two tracks, with the first track focused on reaching a decision on the Utilities’ revenue requirements prior to the commencement of MRP2 and the second track focused on making a final determination on the revenue requirement and addressing the rate design component.

On April 4, 2025, the PUC established a briefing schedule for the parties to present their positions regarding their evaluation of the PBR Framework, following the working group meeting held on February 14, 2025. Timely opening and reply briefs were filed by the parties on May 5, 2025 and on May 19, 2025, respectively. Following review of the briefs, the PUC will issue an order addressing the PBR Framework performance and next steps.

Annual revenue adjustment mechanism. The PBR Framework established a five-year MRP during which there will be no general rate cases. Target revenues are 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 ARA mechanism replaced the previous revenue adjustment mechanism (RAM). RAM revenue adjustments approved by the PUC in 2020 continue to be included in the RBA provision’s target revenue and RBA rate adjustment to the extent such adjustments are not included in base rate unless modified with PUC approval.

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 continues 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 other operation and maintenance (O&M) expense projects are also eligible for EPRM recovery under the EPRM Guidelines. EPRM recoverable costs are limited to the lesser of actual incurred project costs or PUC‑approved amounts, net of savings.

As of June 30, 2025, the Utilities annualized MPIR and EPRM revenue amounts totaled $35.7 million, including revenue taxes, for the Schofield Generating Station ($15.6 million), West Loch PV project ($3.1 million), Grid Modernization Strategy Phase 1 project ($14.1 million for all three utilities), Waiawa UFLS project ($0.1 million), Waena Switchyard/Synchronous project ($2.5 million) and Resilience project ($0.3 million) that included the 2024 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 2024 MPIR and EPRM revenues effective June 1, 2025, through the RBA rate adjustment.

As of June 30, 2025, the PUC approved the recovery of four EPRM projects in the amount of $215.2 million to the extent the project costs are not included in rates. On July 28, 2025, the PUC approved the Utilities’ request to authorize recovery of additional costs associated with one previously-approved EPRM project, granting additional recoveries of $12.3 million. Currently, the Utilities are seeking EPRM recovery for three additional projects 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 (Pilot Process). 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 will be considered approved as submitted. The PUC may modify the pilot as originally proposed, and the Utilities will 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 March 24, 2025, the Utilities filed their annual Pilot Update report covering pilot projects that were active during 2024, including reporting on pilot projects that were initiated prior to the commencement of the Pilot Process. The Pilot Update reported on approximately $2.1 million of 2024 recorded pilot project costs including revenue taxes for the Utilities. The 2024 recorded pilot project costs were included in the Utilities’ proposed adjustments to target revenue in the 2025 spring revenue report filed on March 31, 2025.

Performance incentive mechanisms. The following PIMs and SSMs were approved by the PUC and are applicable to the 2024 evaluation period. There were no accruals for the 2025 evaluation period. PIMs and SSMs are determined at the end of their evaluation period. Unless otherwise specified, the evaluation period is the 12‑month calendar year period ending December 31 over which measured performance is determined.


Performance Incentive Mechanisms	Maximum rewards/penalties $	2024 rewards (penalties) earned	2025 rewards (penalties) accrued
Transmission and Distribution-caused SAIDI/SAIFI PIMs	Maximum penalties of $3.6 million for 2024/2025	$(1.0) million
Call Center PIM	Maximum reward or penalty of $1.4 million	—
Phase 1 RFP PIM	Varies	$0.2 million	$0.3 million
Renewable portfolio standard (RPS) PIM	$10/MWh for above interpolated statutory RPS goal $20/MWh for failing to meet RPS targets in 2030, 2040 and 2045	$1.9 million
Interconnection Approval PIM1	Maximum reward of $3.0 million or a total annual maximum penalty of $0.9 million	$2.4 million
Generation-caused SAIDI/SAIFI PIMs	Maximum penalties of approximately $1.0 million	$(0.1) million
Interconnection Requirements Study PIM	Varies	—
Collective Shared Savings Mechanism	20% share of savings when non-ARA costs in a performance year lower than target year non-ARA costs	$2.8 million
Total PIM rewards, net		$6.2 million	$0.3 million

1 The Interconnection Approval PIM expired as of December 31, 2024.

On April 1, 2024, the Utilities filed a request for partial temporary suspension and modification of the Transmission and Distribution (T&D) System Average Interruption Duration Index (SAIDI) and T&D System Average Interruption Frequency Index (SAIFI) PIMs to specifically suspend the T&D SAIDI and T&D SAIFI PIMs for wildfire risk circuits from January 1, 2024 to December 31, 2025. The Utilities also proposed that circuits not identified as wildfire risk circuits would continue to be subject to the existing PIMs on a prorated basis. On December 18, 2024, as clarified on January 15, 2025, the PUC issued orders granting the Utilities’ request to suspend the T&D SAIDI and T&D SAIFI PIMs for wildfire risk circuits from January 1, 2024 to December 31, 2025.

For the 2024 evaluation period, the Utilities earned $6.2 million ($2.5 million for Hawaiian Electric, $3.4 million for Hawaii Electric Light and $0.3 million for Maui Electric) in rewards net of penalties. The net rewards related to 2024 were reflected in the 2025 PIMs annual report and 2025 spring revenue report filings with the exception of the Phase 1 RFP PIM, which was reflected in the 2024 spring revenue report and 2024 fall revenue report filings. For the 2025 evaluation period, in the second quarter of 2025, the Utilities accrued an additional $0.3 million in rewards for the Phase 1 RFP PIM (for Maui Electric), which will be reflected in the upcoming 2025 fall revenue report filing.

Annual review cycle. PBR D&O established an annual review cycle for revenue adjustments under the PBR Framework, including the biannual submission of the revenue reports. The Utilities’ 2025 spring revenue report filed on March 31, 2025, was approved by the PUC on May 21, 2025. The filing reflected ARA revenues for the second year recovery of the COVID-19 related deferred costs through the Z-factor and the accelerated return of the Enterprise Resource Planning system benefits savings to Hawaii Electric Light and Maui Electric customers as part of the customer dividend, as follows (See discussion under “Regulatory assets and liabilities” below):


(in millions)	Hawaiian Electric		Hawaii Electric Light		Maui Electric		Total


Recovery of COVID-19 related costs	$	2.2	$	0.5	$	0.5	$	3.2
Return of Enterprise Resource Planning benefit liability	—		(1.3)		(2.0)		(3.3)
Net 2025 ARA revenues	$	2.2	$	(0.8)	$	(1.4)	$	(0.1)

Note: Columns may not foot due to rounding.

The net incremental amounts between the 2024 fall and 2025 spring revenue reports are shown in the following table. The amounts are to be collected (refunded) from June 1, 2025, through May 31, 2026, under the RBA rate tariffs, which were included in the 2025 spring revenue report filing.


(in millions)	Hawaiian Electric		Hawaii Electric Light		Maui Electric		Total


Incremental Performance Incentive Mechanisms (net)	$	1.3	$	3.9	$	—	$	5.2
Incremental MPIR/EPRM revenue adjustment	(1.4)		(0.6)		(0.3)		(2.3)
Incremental Pilot Process cost recovery	(0.7)		—		(0.1)		(0.9)




Net incremental amount to be collected under the RBA rate tariffs	$	(0.8)	$	3.2	$	(0.5)	$	1.9

Note: Columns may not foot due to rounding.

Regulatory assets and liabilities.

Regulatory asset related to retirement of generating units.

Honolulu generating units 8 and 9. On December 22, 2023, the PUC issued a D&O approving the Utilities’ request to establish a regulatory asset for the remaining net book value of the fossil fuel generating units for both 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 June 30, 2025, the Utilities have recorded $25.1 million in regulatory assets for the remaining net book value of Honolulu generating units 8 and 9.

Waiau generating units 3 and 4. On September 30, 2024, the PUC issued a D&O approving the Utilities’ request to establish a regulatory asset for the remaining net book value of the fossil fuel generating units for both Waiau units 3 and 4 assets that retired on December 31, 2024, 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 June 30, 2025, the Utilities have recorded $13.5 million in regulatory assets for the remaining net book value of Waiau generating units 3 and 4.

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 authorized, applied to certain non-labor expenses incurred from August 8, 2023 through December 31, 2024 that are not already a part of base rates.

On February 12, 2025, the PUC issued an order granting the Utilities request to extend the deferral accounting period to December 31, 2025, limited to insurance premiums and outside services and legal costs associated with the ABL Facility credit agreement (see Note 5).

As of June 30, 2025, the Utilities have recorded $68.2 million in regulatory assets for the incremental costs incurred related to the Maui windstorm and wildfires event.

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.

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 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 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 June 30, 2025, the Utilities’ regulatory liability was $12.0 million ($0.5 million for Hawaiian Electric, $4.6 million for Hawaii Electric Light and $6.9 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.

Regulatory assets for COVID-19 related costs. In a D&O issued on December 29, 2023, as clarified by an order issued on February 27, 2024, the PUC approved the Utilities’ recovery of the COVID-19 related deferred costs of $8.7 million evenly over a three-year recovery period from June 1, 2024 and end May 31, 2027 through the Z-factor in the ARA. As of June 30, 2025, the Utilities have recorded $5.2 million in regulatory assets for deferral of COVID-19 related costs.

Regulatory assets for suspension of disconnections related costs. Based on 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 September 4, 2025 (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 June 30, 2025, the Utilities have recorded $4.3 million in regulatory assets for the incremental costs incurred due to the suspension of disconnections.

Condensed consolidating financial information. Condensed consolidating financial information for Hawaiian Electric and its subsidiaries are presented for the three and six months ended June 30, 2025 and 2024, and as of June 30, 2025 and December 31, 2024.

On March 21, 2024, Hawaiian Electric formed HE AR INTER LLC and its direct subsidiary, HE AR BRWR LLC, which were established to pursue financing through a secured asset-based (accounts receivable) credit facility.

Hawaiian Electric unconditionally guarantees Hawaii Electric Light’s and Maui Electric’s obligations (a) to the State of Hawaii for the repayment of principal and interest on Special Purpose Revenue Bonds issued for the benefit of Hawaii Electric Light and Maui Electric and (b) under their respective private placement note agreements and the Hawaii Electric Light notes and Maui Electric notes issued thereunder. Hawaiian Electric is also obligated, after the satisfaction of its obligations on its own preferred stock, to make dividend, redemption and liquidation payments on Hawaii Electric Light’s and Maui Electric’s preferred stock if the respective subsidiary is unable to make such payments.

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Statement of Income

Three months ended June 30, 2025


(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Revenues	$	524,804	110,973	107,757	2,864	(3,916)	$	742,482
Expenses
Fuel oil	148,374		26,697	35,516	—	—	210,587
Purchased power	131,259		27,657	16,047	—	—	174,963
Other operation and maintenance	103,195		25,749	31,627	1,562	(3,916)	158,217

Depreciation	42,529		11,242	10,203	—	—	63,974
Taxes, other than income taxes	49,737		10,372	10,087	1	—	70,197

Total expenses	475,094		101,717	103,480	1,563	(3,916)	677,938
Operating income	49,710		9,256	4,277	1,301	—	64,544
Allowance for equity funds used during construction	2,837		351	514	—	—	3,702
Equity in earnings of subsidiaries	7,767		—	—	—	(7,767)	—
Retirement defined benefits credit (expense)—other than service costs	906		168	(22)	—	—	1,052
Interest expense and other charges, net	(16,288)		(2,738)	(3,892)	—	1,212	(21,706)
Allowance for borrowed funds used during construction	1,185		96	181	—	—	1,462
Interest income	2,027		361	39	—	(1,212)	1,215
Income before income taxes	48,144		7,494	1,097	1,301	(7,767)	50,269
Income tax expense (benefit)	8,724		1,660	(99)	335	—	10,620
Net income	39,420		5,834	1,196	966	(7,767)	39,649
Preferred stock dividends of subsidiaries	—		134	95	—	—	229
Net income attributable to Hawaiian Electric	39,420		5,700	1,101	966	(7,767)	39,420
Preferred stock dividends of Hawaiian Electric	270		—	—	—	—	270
Net income for common stock	$	39,150	5,700	1,101	966	(7,767)	$	39,150

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Statement of Comprehensive Income

Three months ended June 30, 2025


(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Net income for common stock	$	39,150	5,700	1,101	966	(7,767)	$	39,150
Other comprehensive loss, net of taxes:
Retirement benefit plans:
Adjustment for amortization of net gains recognized during the period in net periodic benefit cost, net of taxes	(531)		(26)	(62)	—	88	(531)
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	484		22	53	—	(75)	484
Other comprehensive loss, net of taxes	(47)		(4)	(9)	—	13	(47)
Comprehensive income attributable to common shareholder	$	39,103	5,696	1,092	966	(7,754)	$	39,103

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Statement of Income

Three months ended June 30, 2024


(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Revenues	$	564,628	117,663	110,040	—	—	$	792,331
Expenses
Fuel oil	187,386		28,941	42,325	—	—	258,652
Purchased power	137,139		31,068	13,121	—	—	181,328
Other operation and maintenance	93,717		24,544	29,300	—	—	147,561
Wildfire tort-related claims	1,369,600		171,200	171,200	—	—	1,712,000
Depreciation	42,003		10,964	9,845	—	—	62,812
Taxes, other than income taxes	53,214		10,943	10,261	—	—	74,418

Total expenses	1,883,059		277,660	276,052	—	—	2,436,771
Operating loss	(1,318,431)		(159,997)	(166,012)	—	—	(1,644,440)
Allowance for equity funds used during construction	2,578		288	470	—	—	3,336
Equity in earnings of subsidiaries	(246,099)		—	—	—	246,099	—
Retirement defined benefits credit (expense)—other than service costs	928		168	(24)	—	—	1,072
Interest expense and other charges, net	(15,717)		(2,974)	(4,559)	—	1,833	(21,417)
Allowance for borrowed funds used during construction	1,034		85	225	—	—	1,344
Interest income	2,972		241	72	—	(1,833)	1,452
Loss before income taxes	(1,572,735)		(162,189)	(169,828)	—	246,099	(1,658,653)
Income tax benefit	(343,611)		(42,027)	(44,120)	—	—	(429,758)
Net loss	(1,229,124)		(120,162)	(125,708)	—	246,099	(1,228,895)
Preferred stock dividends of subsidiaries	—		133	96	—	—	229
Net loss attributable to Hawaiian Electric	(1,229,124)		(120,295)	(125,804)	—	246,099	(1,229,124)
Preferred stock dividends of Hawaiian Electric	270		—	—	—	—	270
Net loss for common stock	$	(1,229,394)	(120,295)	(125,804)	—	246,099	$	(1,229,394)

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Statement of Comprehensive Income

Three months ended June 30, 2024


(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Net loss for common stock	$	(1,229,394)	(120,295)	(125,804)	—	246,099	$	(1,229,394)
Other comprehensive loss, net of taxes:
Retirement benefit plans:
Adjustment for amortization of net gains recognized during the period in net periodic benefit cost, net of taxes	(505)		(39)	(57)	—	96	(505)
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	459		35	50	—	(85)	459
Other comprehensive loss, net of taxes	(46)		(4)	(7)	—	11	(46)
Comprehensive loss attributable to common shareholder	$	(1,229,440)	(120,299)	(125,811)	—	246,110	$	(1,229,440)

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Statement of Income

Six months ended June 30, 2025


(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Revenues	$	1,049,507	219,284	213,459	5,808	(7,210)	$	1,480,848
Expenses
Fuel oil	320,167		53,491	75,650	—	—	449,308
Purchased power	241,990		53,147	26,543	—	—	321,680
Other operation and maintenance	194,688		53,783	57,838	2,226	(7,210)	301,325

Depreciation	85,102		22,485	20,406	—	—	127,993
Taxes, other than income taxes	99,516		20,551	19,993	1	—	140,061

Total expenses	941,463		203,457	200,430	2,227	(7,210)	1,340,367
Operating income	108,044		15,827	13,029	3,581	—	140,481
Allowance for equity funds used during construction	5,632		698	957	—	—	7,287
Equity in earnings of subsidiaries	17,492		—	—	—	(17,492)	—
Retirement defined benefits credit (expense)—other than service costs	1,811		336	(44)	—	—	2,103
Interest expense and other charges, net	(33,312)		(5,485)	(7,696)	—	2,335	(44,158)
Allowance for borrowed funds used during construction	2,353		191	335	—	—	2,879
Interest income	4,815		590	126	—	(2,335)	3,196
Income before income taxes	106,835		12,157	6,707	3,581	(17,492)	111,788
Income taxes	19,329		2,593	980	922	—	23,824
Net income	87,506		9,564	5,727	2,659	(17,492)	87,964
Preferred stock dividends of subsidiaries	—		268	190	—	—	458
Net income attributable to Hawaiian Electric	87,506		9,296	5,537	2,659	(17,492)	87,506
Preferred stock dividends of Hawaiian Electric	540		—	—	—	—	540
Net income for common stock	$	86,966	9,296	5,537	2,659	(17,492)	$	86,966

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Statement of Comprehensive Income

Six months ended June 30, 2025


(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Net income for common stock	$	86,966	9,296	5,537	2,659	(17,492)	$	86,966
Other comprehensive loss, net of taxes:
Retirement benefit plans:
Adjustment for amortization of net gains recognized during the period in net periodic benefit cost, net of taxes	(1,061)		(55)	(127)	—	182	(1,061)
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	967		44	107	—	(151)	967
Other comprehensive loss, net of taxes	(94)		(11)	(20)	—	31	(94)
Comprehensive income attributable to common shareholder	$	86,872	9,285	5,517	2,659	(17,461)	$	86,872

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Statement of Income

Six months ended June 30, 2024


(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Revenues	$	1,128,808	235,272	216,829	—	—	$	1,580,909
Expenses
Fuel oil	397,585		60,126	85,237	—	—	542,948
Purchased power	254,657		63,124	23,364	—	—	341,145
Other operation and maintenance	184,601		49,134	57,716	—	—	291,451
Wildfire tort-related claims	1,369,600		171,200	171,200	—	—	1,712,000
Depreciation	84,007		21,928	19,689	—	—	125,624
Taxes, other than income taxes	106,623		21,900	20,303	—	—	148,826

Total expenses	2,397,073		387,412	377,509	—	—	3,161,994
Operating loss	(1,268,265)		(152,140)	(160,680)	—	—	(1,581,085)
Allowance for equity funds used during construction	5,399		637	940	—	—	6,976
Equity in earnings of subsidiaries	(240,075)		—	—	—	240,075	—
Retirement defined benefits credit (expense)—other than service costs	1,855		336	(47)	—	—	2,144
Interest expense and other charges, net	(30,009)		(5,888)	(8,790)	—	3,285	(41,402)
Allowance for borrowed funds used during construction	2,113		192	425	—	—	2,730
Interest income	5,635		396	138	—	(3,285)	2,884
Loss before income taxes	(1,523,347)		(156,467)	(168,014)	—	240,075	(1,607,753)
Income tax benefit	(333,714)		(40,829)	(44,035)	—	—	(418,578)
Net loss	(1,189,633)		(115,638)	(123,979)	—	240,075	(1,189,175)
Preferred stock dividends of subsidiaries	—		267	191	—	—	458
Net loss attributable to Hawaiian Electric	(1,189,633)		(115,905)	(124,170)	—	240,075	(1,189,633)
Preferred stock dividends of Hawaiian Electric	540		—	—	—	—	540
Net loss for common stock	$	(1,190,173)	(115,905)	(124,170)	—	240,075	$	(1,190,173)

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Statement of Comprehensive Income

Six months ended June 30, 2024


(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Net loss for common stock	$	(1,190,173)	(115,905)	(124,170)	—	240,075	$	(1,190,173)
Other comprehensive loss, net of taxes:
Retirement benefit plans:
Adjustment for amortization of net gains recognized during the period in net periodic benefit cost, net of taxes	(1,013)		(77)	(116)	—	193	(1,013)
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	918		70	99	—	(169)	918
Other comprehensive loss, net of taxes	(95)		(7)	(17)	—	24	(95)
Comprehensive loss attributable to common shareholder	$	(1,190,268)	(115,912)	(124,187)	—	240,099	$	(1,190,268)

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Balance Sheet

June 30, 2025


(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsi-diaries	Consoli- dating adjustments	Hawaiian Electric Consolidated
Assets
Property, plant and equipment
Utility property, plant and equipment
Land	$	42,860	5,645	3,603	—	—	$	52,108
Plant and equipment	5,576,856		1,521,914	1,453,824	—	—	8,552,594
Right-of-use assets - finance lease	360,270		78,377	50,757	—	—	489,404
Less accumulated depreciation	(2,107,311)		(706,390)	(620,584)	—	—	(3,434,285)
Construction in progress	300,883		39,223	56,237	—	—	396,343
Utility property, plant and equipment, net	4,173,558		938,769	943,837	—	—	6,056,164
Nonutility property, plant and equipment, less accumulated depreciation	1,146		115	1,444	—	—	2,705
Total property, plant and equipment, net	4,174,704		938,884	945,281	—	—	6,058,869
Investment in wholly owned subsidiaries, at equity	698,333		—	—	—	(698,333)	—
Current assets
Cash and cash equivalents	37,575		39,334	8,085	21,435	—	106,429

Advances to affiliates	69,200		—	—	—	(69,200)	—
Customer accounts receivable, net	11,661		4,613	6,641	164,296	—	187,211
Accrued unbilled revenues, net	—		1,890	—	156,163	—	158,053
Other accounts receivable, net	198,508		57,524	50,567	—	(219,825)	86,774
Fuel oil stock, at average cost	87,057		10,490	16,992	—	—	114,539
Materials and supplies, at average cost	75,243		18,282	37,728	—	—	131,253
Prepayments and other	31,736		9,277	19,992	—	(5,379)	55,626
Regulatory assets	32,909		6,065	5,048	—	—	44,022
Total current assets	543,889		147,475	145,053	341,894	(294,404)	883,907
Other long-term assets
Operating lease right-of-use assets	34,547		19,979	6,417	—	—	60,943
Regulatory assets	178,516		20,460	42,984	—	—	241,960
Defined benefit pension and other postretirement benefit plans asset	69,263		31,181	24,637	—	(12,711)	112,370
Investment in unconsolidated affiliate	287,250		—	—	—	—	287,250
Other	227,560		18,663	28,474	—	(36,337)	238,360
Total other long-term assets	797,136		90,283	102,512	—	(49,048)	940,883
Total assets	$	6,214,062	1,176,642	1,192,846	341,894	(1,041,785)	$	7,883,659

(continued)

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Balance Sheet (continued)

June 30, 2025


(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsi-diaries	Consoli- dating adjustments	Hawaiian Electric Consolidated
Capitalization and liabilities
Capitalization
Common stock equity	$	1,521,617	253,516	288,584	156,233	(698,333)	$	1,521,617
Cumulative preferred stock—not subject to mandatory redemption	22,293		7,000	5,000	—	—	34,293
Long-term debt, net	1,168,513		236,528	201,694	—	—	1,606,735
Total capitalization	2,712,423		497,044	495,278	156,233	(698,333)	3,162,645
Current liabilities
Current portion of operating lease liabilities	5,387		8,226	3,182	—	—	16,795
Current portion of long-term debt, net	61,949		7,993	54,955	—	—	124,897
Short-term borrowings from non-affiliates, net	49,312		—	—	—	—	49,312
Short-term borrowings from affiliate	—		—	69,200	—	(69,200)	—
Accounts payable	157,257		31,870	38,026	—	—	227,153
Interest and preferred dividends payable	15,299		3,221	2,754	—	(383)	20,891
Taxes accrued, including revenue taxes	163,795		35,971	32,378	2,060	(5,379)	228,825
Regulatory liabilities	10,046		11,648	5,702	—	—	27,396
Wildfire tort-related claims	383,000		47,875	47,875	—	—	478,750
Other	91,140		29,915	30,930	183,601	(219,441)	116,145
Total current liabilities	937,185		176,719	285,002	185,661	(294,403)	1,290,164
Deferred credits and other liabilities
Operating lease liabilities	33,207		12,091	3,512	—	—	48,810
Finance lease liabilities	337,009		75,839	49,591	—	—	462,439
Deferred income taxes	—		7,230	29,108	—	(36,338)	—
Regulatory liabilities	892,298		229,075	144,877	—	—	1,266,250
Unamortized tax credits	51,531		10,308	10,498	—	—	72,337
Defined benefit pension plans liability	19,005		124	—	—	(12,711)	6,418
Wildfire tort-related claims	1,149,000		143,625	143,625	—	—	1,436,250
Other	82,404		24,587	31,355	—	—	138,346
Total deferred credits and other liabilities	2,564,454		502,879	412,566	—	(49,049)	3,430,850
Total capitalization and liabilities	$	6,214,062	1,176,642	1,192,846	341,894	(1,041,785)	$	7,883,659

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Balance Sheet

December 31, 2024


(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsi-diaries	Consoli- dating adjustments	Hawaiian Electric Consolidated
Assets
Property, plant and equipment
Utility property, plant and equipment
Land	$	42,860	5,645	3,514	—	—	$	52,019
Plant and equipment	5,502,198		1,501,947	1,417,356	—	—	8,421,501
Finance lease right-of-use assets	360,270		36,074	50,757	—	—	447,101
Less accumulated depreciation	(2,029,719)		(691,161)	(605,744)	—	—	(3,326,624)
Construction in progress	282,150		31,341	52,218	—	—	365,709
Utility property, plant and equipment, net	4,157,759		883,846	918,101	—	—	5,959,706
Nonutility property, plant and equipment, less accumulated depreciation	1,145		115	1,532	—	—	2,792
Total property, plant and equipment, net	4,158,904		883,961	919,633	—	—	5,962,498
Investment in wholly owned subsidiaries, at equity	680,414		—	—	—	(680,414)	—
Current assets
Cash and cash equivalents	118,367		31,534	16,456	17,791	—	184,148

Advances to affiliates	62,200		—	—	—	(62,200)	—
Customer accounts receivable, net	19,050		7,245	8,941	164,662	—	199,898
Accrued unbilled revenues, net	12,738		4,046	1,890	160,047	—	178,721
Other accounts receivable, net	209,752		58,366	51,465	—	(249,946)	69,637
Fuel oil stock, at average cost	70,800		13,764	14,339	—	—	98,903
Materials and supplies, at average cost	69,602		15,506	33,358	—	—	118,466
Prepayments and other	110,516		16,662	30,747	—	(6,705)	151,220
Regulatory assets	36,520		8,211	9,164	—	—	53,895
Total current assets	709,545		155,334	166,360	342,500	(318,851)	1,054,888
Other long-term assets
Operating lease right-of-use assets	29,868		22,672	6,741	—	—	59,281
Regulatory assets	172,257		18,875	36,292	—	—	227,424
Defined benefit pension and other postretirement benefit plans asset	66,292		30,397	24,128	—	(11,998)	108,819
Other	194,006		18,612	21,702	—	(33,626)	200,694
Total other long-term assets	462,423		90,556	88,863	—	(45,624)	596,218
Total assets	$	6,011,286	1,129,851	1,174,856	342,500	(1,044,889)	$	7,613,604

(continued)

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Balance Sheet (continued)

December 31, 2024


(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsi-diaries	Consoli- dating adjustments	Hawaiian Electric Consolidated
Capitalization and liabilities
Capitalization
Common stock equity	$	1,156,955	243,964	282,876	153,574	(680,414)	$	1,156,955
Cumulative preferred stock—not subject to mandatory redemption	22,293		7,000	5,000	—	—	34,293
Long-term debt, net	1,353,173		244,466	256,575	—	—	1,854,214
Total capitalization	2,532,421		495,430	544,451	153,574	(680,414)	3,045,462
Current liabilities
Current portion of operating lease liabilities	4,430		7,802	2,970	—	—	15,202
Current portion of long-term debt, net	40,000		5,000	2,000	—	—	47,000
Short-term borrowings-non-affiliate, net	48,623		—	—	—	—	48,623
Short-term borrowings-affiliate	—		—	62,200	—	(62,200)	—
Accounts payable	137,837		27,077	32,066	—	—	196,980
Interest and preferred dividends payable	15,994		3,191	2,701	—	(350)	21,536
Taxes accrued, including revenue taxes	197,768		42,692	37,108	1,138	(6,705)	272,001
Regulatory liabilities	11,701		10,039	4,828	—	—	26,568
Wildfire tort-related claims	383,000		47,875	47,875	—	—	478,750
Other	103,415		35,492	43,913	187,788	(249,597)	121,011
Total current liabilities	942,768		179,168	235,661	188,926	(318,852)	1,227,671
Deferred credits and other liabilities
Operating lease liabilities	29,830		15,230	4,075	—	—	49,135
Finance lease liabilities	341,364		34,370	49,891	—	—	425,625
Deferred income taxes	—		5,368	28,257	—	(33,625)	—
Regulatory liabilities	864,259		222,834	130,422	—	—	1,217,515
Unamortized tax credits	54,950		10,757	10,969	—	—	76,676
Defined benefit pension plan liability	18,301		125	—	—	(11,998)	6,428
Wildfire tort-related claims	1,149,000		143,625	143,625	—	—	1,436,250
Other	78,393		22,944	27,505	—	—	128,842
Total deferred credits and other liabilities	2,536,097		455,253	394,744	—	(45,623)	3,340,471
Total capitalization and liabilities	$	6,011,286	1,129,851	1,174,856	342,500	(1,044,889)	$	7,613,604

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Statement of Changes in Common Stock Equity

Six months ended June 30, 2025


(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Balance, December 31, 2024	$	1,156,955	243,964	282,876	153,574	(680,414)	$	1,156,955
Net income for common stock	86,966		9,296	5,537	2,659	(17,492)	86,966
Other comprehensive loss, net of taxes	(94)		(11)	(20)	—	31	(94)
Common stock dividends	(10,000)		—	—	—	—	(10,000)

Additional paid-in capital	287,790		267	191	—	(458)	287,790

Balance, June 30, 2025	$	1,521,617	253,516	288,584	156,233	(698,333)	$	1,521,617

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Statement of Changes in Common Stock Equity

Six months ended June 30, 2024


(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated
Balance, December 31, 2023	$	2,409,110	359,790	362,344	77	(722,211)	$	2,409,110
Net loss for common stock	(1,190,173)		(115,905)	(124,170)	—	240,075	(1,190,173)
Other comprehensive loss, net of taxes	(95)		(7)	(17)	—	24	(95)
Common stock dividends	(26,000)		—	—	—	—	(26,000)
Balance, June 30, 2024	$	1,192,842	243,878	238,157	77	(482,112)	$	1,192,842

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Statement of Cash Flows

Six months ended June 30, 2025


(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated























Net cash provided by operating activities	$	147,248	37,461	28,864	3,644	(971)	$	216,246
Cash flows from investing activities
Capital expenditures	(86,012)		(29,553)	(44,385)	—	—	(159,950)

Advances to affiliates	(7,000)		—	—	—	7,000	—
Other	3,164		343	673	—	971	5,151
Net cash used in investing activities	(89,848)		(29,210)	(43,712)	—	7,971	(154,799)
Cash flows from financing activities
Common stock dividends	(10,000)		—	—	—	—	(10,000)
Preferred stock dividends of Hawaiian Electric and subsidiaries	(998)		—	—	—	—	(998)

Proceeds from capital contribution from parent	540		—	—	—	—	540



Net increase in short-term borrowings from affiliate with original maturities of three months or less	—		—	7,000	—	(7,000)	—
Repayment of long-term debt	(123,000)		—	—	—	—	(123,000)
Payments of obligations under finance leases	(3,982)		(364)	(313)	—	—	(4,659)
Other	(752)		(87)	(210)	—	—	(1,049)
Net cash provided by (used in) financing activities	(138,192)		(451)	6,477	—	(7,000)	(139,166)
Net increase (decrease) in cash, cash equivalents and restricted cash	(80,792)		7,800	(8,371)	3,644	—	(77,719)
Cash, cash equivalents and restricted cash, beginning of period	118,367		31,534	16,456	17,791	—	184,148


Cash and cash equivalents, end of period	$	37,575	39,334	8,085	21,435	—	$	106,429

Hawaiian Electric Company, Inc. and Subsidiaries

Condensed Consolidating Statement of Cash Flows

Six months ended June 30, 2024


(in thousands)	Hawaiian Electric		Hawaii Electric Light	Maui Electric	Other subsidiaries	Consolidating adjustments	Hawaiian Electric Consolidated























Net cash provided by operating activities	$	137,811	36,712	12,800	—	(1,850)	$	185,473
Cash flows from investing activities
Capital expenditures	(95,431)		(27,981)	(44,788)	—	—	(168,200)
Advances to affiliates	(39,500)		—	—	—	39,500	—
Other	535		245	(1,087)	—	1,850	1,543
Net cash used in investing activities	(134,396)		(27,736)	(45,875)	—	41,350	(166,657)
Cash flows from financing activities
Common stock dividends	(26,000)		—	—	—	—	(26,000)
Preferred stock dividends of Hawaiian Electric and subsidiaries	(998)		—	—	—	—	(998)




Net increase in short-term borrowings from affiliate with original maturities of three months or less	—		—	39,500	—	(39,500)	—
Payments of obligations under finance leases	(3,382)		(311)	(44)			(3,737)
Other	(3,971)		(459)	(1,108)	—	—	(5,538)
Net cash provided by (used in) financing activities	(34,351)		(770)	38,348	—	(39,500)	(36,273)
Net increase (decrease) in cash, cash equivalents and restricted cash	(30,936)		8,206	5,273	—	—	(17,457)
Cash, cash equivalents and restricted cash, beginning of period	91,755		10,658	5,587	77	—	108,077
Cash, cash equivalents and restricted cash, end of period	60,819		18,864	10,860	77	—	90,620
Less: Restricted cash	(2,000)		—	—	—	—	(2,000)
Cash and cash equivalents, end of period	$	58,819	18,864	10,860	77	—	$	88,620