Hawaiian Electric Finalizes Maui Wildfire Settlements, $479M Payment Set for H2 2026
Hawaiian Electric finalized settlements for its Maui wildfires class and derivative lawsuits, with binding term sheets signed in November and agreements executed by January fully funded by insurance. It expects first $479 million settlement payment in H2 2026 post-appeals and plans $550-700 million capex, rising to $600-850 million by 2028.
1. Settlement Progress
Hawaiian Electric finalized binding term sheets for Maui wildfires shareholder class and derivative lawsuits in November and executed agreements by January, with obligations fully funded by insurance proceeds. A Hawaii Supreme Court ruling has denied insurers' intervention and the company now must resolve remaining appeals before triggering the first $479 million settlement payment.
2. Financial Performance and Liquidity
The utility reported full-year 2025 net income of $123.1 million ($0.71 per share) versus a $1.4 billion loss in 2024 and core net income of $149.3 million ($0.86 per share). Unrestricted cash totaled $486 million at the utility and $16 million at the holding company, supplemented by about $540 million and $530 million of liquidity facilities respectively, and the board approved a $10 million quarterly dividend.
3. Funding and Capital Plan
The company maintains its settlement financing plan, expecting to fund subsequent payments with a mix of debt and convertible debt depending on market conditions. Management is leaning toward convertible debt for relevering after settlement approval and now projects the first payment in the second half of 2026.
4. Capex and Regulatory Outlook
Utility capital expenditures are forecast at $550-700 million in 2026, rising to $600-800 million in 2027 and $600-850 million in 2028, subject to Public Utilities Commission approvals and resource adequacy initiatives. The company is also pursuing a multi-year performance-based regulation framework, filing a joint rate rebasing proposal by March 6 and eyeing phase 6 enhancements to inflation adjustments and performance incentives.