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Maui - General

What is HEI doing to help those impacted by the fires?

We are standing together with statewide partners in support of Hawai‘i and its people as part of the One ‘Ohana Initiative. The first phase of the initiative provides an option for families who have lost a loved one and those who were severely injured to receive substantial payments in an expedited manner to support healing and a path forward. Over $150 million has been raised to date and Hawaiian Electric will contribute up to $75 million of the total. Hawaiian Electric’s contribution will be funded by insurance, not customers. Learn more here.

The HEI family of companies has also provided support by:

  • Donating to a number of community organizations providing disaster relief, including Hawaii Community Foundation, American Red Cross, Salvation Army, Feed My Sheep, Council on Native Hawaiian Advancement, and the Binhi At Ani Filipino Community Center.
  • Suspending disconnections for all Hawaiian Electric customers on Maui through January 5 in order to allow people who have been impacted or are struggling financially to focus on taking care of themselves and their families.
  • Maintaining the “Our Response to the Windstorm” page on the Hawaiian Electric site, which announces regular updates regarding power restoration and information about important resources provided by the government and local organizations.
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What do we know about the cause of the fire?

On August 27, we disclosed several important facts about the events on August 8:

  • A fire at 6:30 a.m. appears to have been caused by power lines that fell in high winds.
  • The Maui County Fire Department responded to this fire, reported it was “100% contained,” left the scene and later declared it had been “extinguished.”
  • At about 3:00 p.m., a time when all of Hawaiian Electric’s power lines to customers in West Maui had been de-energized for more than six hours, a second fire began in the same area.
  • The cause of this devastating fire at around 3:00 p.m. has not been established.
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When will you release findings from your full investigation? How long will it take?

We will provide a report to the Public Utilities Commission but, at this time, cannot put a timeline on when that will be finished. We are also cooperating with the investigations that are being conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hawaii State Attorney General’s office.

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Maui - HEI Shareholders

Is Hawaiʻi an inverse condemnation state?

Unlike in California, there is no precedent in Hawaiʻi applying inverse condemnation to a private party like an investor-owned utility – it has only been applied to government entities. Also unlike in California, there is no precedent in Hawaiʻi applying a theory of inverse condemnation to government entities based on damages that they’ve caused.

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What are the Company’s plans for the dividend?

The HEI Board determined that suspending the quarterly cash dividend would allow us to continue to allocate cash to rebuilding and restoring efforts and best position us to serve our customers and communities.

With that said, we recognize that this may impact many of our shareholders who rely on this dividend as a source of income. We regret any hardship the suspension of the dividend may cause, and we intend to be a strong, dividend-paying company in the future.

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When will HEI revisit the dividend policy change? Will the dividend be reinstated?

We intend to be a strong, dividend-paying company in the future. The policy will be something that we continue to review, however, we have not set specific milestones or triggering events. We regret any hardship the suspension of the dividend may cause.

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Maui - Hawaiian Electric

Is Maui Electric ring-fenced from the rest of the utility?

This is a complex legal question that will take time to work through. Maui Electric Company, Limited is its own corporation, wholly owned by Hawaiian Electric.

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Do you have a wildfire mitigation program?

Hawaiian Electric first began developing its Wildfire Safety Strategy in 2019 and continues to adapt it to address the elevated risks in Hawaiʻi. We are advancing a three-phase strategy focused on:

  • Immediate and enhanced operational actions to reduce risk.
  • Near-term work to harden the grid and reduce potential hazards.
  • Longer-term investments and tools to address continuing and emerging threats.

Learn more here.

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What have you done in the past five years to prevent wildfires?

Hawaiian Electric has long recognized the unique threats to our islands from climate change, including hurricanes, windstorms, floods and wildfires. We’ve been executing on a resilience and wildfire mitigation strategy to meet these challenges for years, which includes vegetation management, grid hardening investments and regular inspection of our assets.

In total, from 2018 to 2022, we’ve spent approximately $950 million on grid improvements that enhance our resilience and approximately $110 million on vegetation management efforts. In June 2022, we submitted a $190 million proposal to the Public Utilities Commission for a Climate Adaptation Transmission and Distribution Resilience Program. Half of this multi-year program is to be paid by the federal government with the other half matched by customers, pending approval by the PUC.

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Does Hawaiian Electric have a Public Safety Power Shutoff program?

Hawaiian Electric has begun discussions with government, emergency response and community stakeholders to determine whether a Public Safety Power Shutoff (PSPS) program can be designed and implemented in a way that is appropriate for each county and its ability to ensure public safety when power is shut off, potentially for multiple days.

A PSPS would shut off power in high-risk areas before extreme weather events as an additional means to reduce the risk of a wildfire. Successful use of PSPS would require extensive coordination across all levels of government, first responders, essential service providers and the community because of its broad impact. Enhanced technology, weather forecasting, customer education, plans for backup for critical customers and community hubs and resources would also need to be in place for a PSPS to be safe and effective.

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Why didn’t you have a PSPS program before?

Over the last several years, Hawaiian Electric has studied California’s PSPS plans and had previously concluded that it did not make sense to implement a program in Hawaiʻi to deliberately and preemptively shut off the power in emergencies where electrical power is needed.

PSPS programs require advanced planning and cooperation between the state, county, utility and others. Such a program would also require investment in systems and technology to make it effective in Hawaiʻi, with clear protocols and communication.

Hawaiian Electric has begun discussions with government, emergency response and community stakeholders to determine whether a PSPS program can be designed and implemented in a way that is appropriate for each county and its ability to ensure public safety when power is shut off, potentially for multiple days.

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What is the company doing to prepare for potential upcoming weather incidents?

Hawaiian Electric works closely with our state and county emergency management partners to develop action plans for approaching storm systems. If there are any actions that will impact the public, we will communicate them at the appropriate time.

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Maui - American Savings Bank

Is American Savings Bank impacted by the lawsuits in any way?

No. ASB is an independent company. None of the legal claims related to the Maui wildfires involve ASB. ASB customer deposits are safe. There is no risk to customer deposits as a result of legal claims related to the fires.

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How does this impact ASB’s future?

ASB is well positioned to support the community in the aftermath of the tragic Maui wildfires with a strong capital position, excellent credit quality, deep lending capacity, and ample liquidity. ASB remains focused on supporting and serving Hawaii’s residents, businesses, and communities as it has for nearly 100 years.

For the latest information on ASB’s Maui Relief & Assistance Programs, please visit: www.asbhawaii.com/maui.

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