Hawaiian Electric faces lawmaker scrutiny over wildfire mitigation plan, announces $1.99B settlement contribution
Nov 08, 2024
HONOLULU (KHON2) -- Hawaiian Electric (HECO) faced tough questions from lawmakers on Wednesday as it presented its long-awaited wildfire mitigation plan, which was ordered by the state’s Public Utilities Commission (PUC) in response to growing concerns over fire risks linked to its infrastructure.
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During a legislative hearing, HECO outlined its strategy, which includes four key elements aimed at reducing wildfire risks:
Foundational work such as improved inspections, better vegetation management, and the switch to sparkless fuses
Operational changes, including implementing public safety power shutoffs in high-risk areas
Situational awareness, utilizing AI-powered video cameras for enhanced monitoring
Grid hardening to reinforce electrical infrastructure against extreme weather and wildfires
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Despite the company’s assurances, lawmakers expressed frustration over the delay in finalizing the plan, with some questioning why it had taken so long to put it into action, especially in the wake of devastating wildfires on Maui and the Big Island.
In addition to the mitigation plan, HECO announced it would contribute $1.99 billion as its share of a $4 billion global settlement stemming from the utility’s role in the recent wildfires. This includes a $75 million allocation to the One Ohana Fund, which provides compensation for wrongful death and serious injury claims related to the fires.
The first payment toward the settlement will come from a $550 million stock sale completed last month, with that payment scheduled for late next year.
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HECO also noted that it is exploring financing options for the remaining payments, but assured lawmakers and the public that the company’s contributions would not result in higher customer bills.