HE - Why Hawaiian Electric Stock Plunged This Week
2023-08-17 12:17:32 ET
The tragic Maui wildfires could have massive implications for Hawaiian Electric Industries (NYSE: HE) . Shares of the utility operator fell by more than 60% for the week so far, according to data provided by S&P Global Market Intelligence , due to the potential liability claims from the fire and what Hawaiian Electric might have to do to shield itself from those claims.
So far, more than 100 people are known to have been killed by wildfires that swept across the Hawaiian island of Maui beginning on Aug. 8. And although it will take time to determine the exact cause of the fires, some are pointing at utility company Hawaiian Electric for its failure to shut down power lines ahead of Hurricane Dora hitting the island -- lawsuits have already been filed against it.
This scenario has played out across the western U.S. before, and investors have reason to worry about what's ahead for Hawaiian Electric. PG&E was forced into bankruptcy after its equipment was linked to wildfires that spread across California in 2017 and 2018, and other utilities including Berkshire Hathaway subsidiary Pacific Power have been hit with judgments.
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Why Hawaiian Electric Stock Plunged This Week