HE stock | Earnings report | Nov. 10, 2023

 Hawaiian Electric Industries (NYSE:HE) has held its Q3 2023 earnings call, in which it addressed the impact of the August wildfires on its operations and future plans to bolster the resilience of its grid against climate change and extreme weather. The company reported a consolidated net income of $41.1 million and earnings per share of $0.37 for the quarter, excluding wildfire-related expenses.

Key takeaways from the call include:

• Hawaiian Electric is committed to supporting its communities in Maui by contributing up to $75 million to a fund for families affected by the fire.
• The company is reevaluating its capital expenditure plan to mitigate extreme weather risks and has requested deferral treatment of wildfire-related expenses.
• A three-phase safety strategy has been developed to address the elevated risks of wildfires in Hawaii. This includes immediate actions such as expanding the system to turn off power in elevated risk areas.
• Hawaiian Electric has filed a $190 million Grid Resilience Plan that includes investments in strengthening transmission lines, bolstering distribution lines, and enhancing vegetation management.
• The company's liquidity position is supported by cash on hand, including $127 million for the holding company and $275 million for the utility.
• The company has suspended the dividend and is exploring options to bolster liquidity.
• Hawaiian Electric is in discussions with the state to develop solutions and provide greater coverage for wildfire-related liabilities. They plan to file a report with the Public Utilities Commission (PUC) about the August 8 incident, but timing is uncertain.
• The first trial related to the wildfires is scheduled for October of next year. The company has $165 million of liability insurance, with $90 million of additional coverage available after deducting the $75 million being funded by insurance companies.
• An alternative to litigation program is expected to launch in the second quarter of next year, where participants could start receiving compensation.