HE - Hawaiian Electric facing scrutiny for not cutting power before Maui wildfires

2023-08-14 08:37:41 ET

Hawaiian Electric ( NYSE: HE ) -16.6% pre-market Monday following reports that it did not have a plan to shut off power in advance of dangerous winds that spread the disastrous wildfire through Maui that has killed at least 93 people, with many more still missing.

According to The Washington Post , Hawaiian Electric ( HE ), the utility that oversees Maui Electric and provides service to 95% of the state's residents, did not deploy a "public power shutoff plan," which involves intentionally cutting off electricity to areas where big wind events could spark fires.

Several states including California have increasingly adopted such a safety strategy after what were then the most destructive and deadliest modern fires in the U.S., in 2017 and 2018.

The company was aware that a power shutoff was an effective strategy, but had not adopted it as part of its fire mitigation plans, and did it act on its own, fearing uncertain consequences, according to the report.

More on Hawaiian Electric:

• Financial and valuation comparison to sector peers
• Analysis: Hawaiian Electric: Surprisingly Good Stability, But Population Decline A Drag
• Stock price return: Down 22.5% YTD, down 23.5% in the past 12 months

For further details see: