Consolidating financial information

Hawaiian Electric is not required to provide separate financial statements or other disclosures concerning Hawaii Electric Light and Maui Electric to holders of the 2004 Debentures issued by Hawaii Electric Light and Maui Electric to Trust III since all of their voting capital stock is owned, and their obligations with respect to these securities have been fully and unconditionally guaranteed, on a subordinated basis, by Hawaiian Electric. Consolidating information is provided below for these and other Hawaiian Electric subsidiaries for the periods ended and as of the dates indicated.

Hawaiian Electric also unconditionally guarantees Hawaii Electric Light’s and Maui Electric’s obligations (a) to the State of Hawaii for the repayment of principal and interest on Special Purpose Revenue Bonds issued for the benefit of Hawaii Electric Light and Maui Electric, (b) under their respective private placement note agreements and the Hawaii Electric Light notes and Maui Electric notes issued thereunder and (c) relating to the trust preferred securities of Trust III (see Note 2 above). Hawaiian Electric is also obligated, after the satisfaction of its obligations on its own preferred stock, to make dividend, redemption and liquidation payments on Hawaii Electric Light’s and Maui Electric’s preferred stock if the respective subsidiary is unable to make such payments.

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Statement of Income (Loss) (unaudited)

Three months ended September 30, 2013



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries		Consolidating adjustments		Hawaiian Electric Consolidated
Operating revenues	$	547,310		107,924		108,699		—		—		$	763,933
Operating expenses
Fuel oil	206,478			27,615		49,267		—		—		283,360
Purchased power	143,280			34,480		17,101		—		—		194,861
Other operation	51,023			11,057		9,928		—		—		72,008
Maintenance	19,619			5,680		6,214		—		—		31,513
Depreciation	25,442			8,547		5,006		—		—		38,995
Taxes, other than income taxes	51,712			10,448		10,222		—		—		72,382
Income taxes	13,556			1,991		3,381		—		—		18,928
Total operating expenses	511,110			99,818		101,119		—		—		712,047
Operating income	36,200			8,106		7,580		—		—		51,886
Other income (loss)
Allowance for equity funds used during construction	914			222		119		—		—		1,255
Equity in earnings of subsidiaries	10,794			—		—		—		(10,794	)	—
Other, net	795			217		124		(1	)	(36	)	1,099
Income tax expense	(77		)	(32	)	(20	)	—		—		(129		)
Total other income (loss)	12,426			407		223		(1	)	(10,830	)	2,225
Interest and other charges
Interest on long-term debt	9,902			2,751		1,962		—		—		14,615
Amortization of net bond premium and expense	410			116		120		—		—		646
Other interest charges	585			160		324		—		(36	)	1,033
Allowance for borrowed funds used during construction	(358		)	(91	)	(49	)	—		—		(498		)
Total interest and other charges	10,539			2,936		2,357		—		(36	)	15,796
Net income (loss)	38,087			5,577		5,446		(1	)	(10,794	)	38,315
Preferred stock dividend of subsidiaries	—			133		95		—		—		228
Net income (loss) attributable to Hawaiian Electric	38,087			5,444		5,351		(1	)	(10,794	)	38,087
Preferred stock dividends of Hawaiian Electric	270			—		—		—		—		270
Net income (loss) for common stock	$	37,817		5,444		5,351		(1	)	(10,794	)	$	37,817

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Statement of Comprehensive Income (Loss) (unaudited)

Three months ended September 30, 2013



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries		Consolidating adjustments		Hawaiian Electric Consolidated
Net income (loss) for common stock	$	37,817		5,444		5,351		(1	)	(10,794	)	$	37,817
Other comprehensive income (loss), net of taxes:
Retirement benefit plans:
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits	5,173			720		639		—		(1,359	)	5,173
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(5,156		)	(721	)	(639	)	—		1,360		(5,156		)
Other comprehensive income (loss), net of taxes	17			(1	)	—		—		1		17
Comprehensive income (loss) attributable to common shareholder	$	37,834		5,443		5,351		(1	)	(10,793	)	$	37,834

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Statement of Income (Loss) (unaudited)

Three months ended September 30, 2012



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries		Consolidating adjustments		Hawaiian Electric Consolidated
Operating revenues	$	579,464		108,490		111,249		—		—		$	799,203
Operating expenses
Fuel oil	248,443			25,752		52,978		—		—		327,173
Purchased power	135,507			37,693		13,499		—		—		186,699
Other operation	48,201			10,888		11,352		—		—		70,441
Maintenance	19,615			5,146		5,607		—		—		30,368
Depreciation	22,738			8,299		4,904		—		—		35,941
Taxes, other than income taxes	53,935			10,444		10,471		—		—		74,850
Income taxes	15,725			2,782		3,845		—		—		22,352
Total operating expenses	544,164			101,004		102,656		—		—		747,824
Operating income	35,300			7,486		8,593		—		—		51,379
Other income (loss)
Allowance for equity funds used during construction	1,323			148		140		—		—		1,611
Equity in earnings of subsidiaries	11,285			—		—		—		(11,285	)	—
Other, net	950			128		38		(1	)	(28	)	1,087
Income tax benefits (expense)	(37		)	(14	)	9		—		—		(42		)
Total other income (loss)	13,521			262		187		(1	)	(11,313	)	2,656
Interest and other charges
Interest on long-term debt	9,981			2,751		1,962		—		—		14,694
Amortization of net bond premium and expense	629			117		124		—		—		870
Other interest charges	142			78		94		—		(28	)	286
Allowance for borrowed funds used during construction	(576		)	(59	)	(53	)	—		—		(688		)
Total interest and other charges	10,176			2,887		2,127		—		(28	)	15,162
Net income (loss)	38,645			4,861		6,653		(1	)	(11,285	)	38,873
Preferred stock dividend of subsidiaries	—			133		95		—		—		228
Net income (loss) attributable to Hawaiian Electric	38,645			4,728		6,558		(1	)	(11,285	)	38,645
Preferred stock dividends of Hawaiian Electric	270			—		—		—		—		270
Net income (loss) for common stock	$	38,375		4,728		6,558		(1	)	(11,285	)	$	38,375

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Statement of Comprehensive Income (Loss) (unaudited)

Three months ended September 30, 2012



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries		Consolidating adjustments		Hawaiian Electric Consolidated
Net income (loss) for common stock	$	38,375		4,728		6,558		(1	)	(11,285	)	$	38,375
Other comprehensive income, net of taxes:
Retirement benefit plans:
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits	3,419			526		443		—		(969	)	3,419
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(3,342		)	(521	)	(436	)	—		957		(3,342		)
Other comprehensive income, net of taxes	77			5		7		—		(12	)	77
Comprehensive income (loss) attributable to common shareholder	$	38,452		4,733		6,565		(1	)	(11,297	)	$	38,452

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Statement of Income (Loss) (unaudited)

Nine months ended September 30, 2013



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries		Consolidating adjustments		Hawaiian Electric Consolidated
Operating revenues	$	1,574,869		320,314		313,740		—		—		$	2,208,923
Operating expenses
Fuel oil	631,824			94,120		151,794		—		—		877,738
Purchased power	389,706			93,880		43,083		—		—		526,669
Other operation	149,218			32,267		28,130		—		—		209,615
Maintenance	60,922			13,787		13,846		—		—		88,555
Depreciation	75,150			25,641		15,074		—		—		115,865
Taxes, other than income taxes	149,084			30,094		29,650		—		—		208,828
Income taxes	33,753			7,765		9,838		—		—		51,356
Total operating expenses	1,489,657			297,554		291,415		—		—		2,078,626
Operating income	85,212			22,760		22,325		—		—		130,297
Other income (loss)
Allowance for equity funds used during construction	3,144			552		334		—		—		4,030
Equity in earnings of subsidiaries	30,446			—		—		—		(30,446	)	—
Other, net	3,518			526		412		(2	)	(103	)	4,351
Income tax expense	(266		)	(73	)	(81	)	—		—		(420		)
Total other income (loss)	36,842			1,005		665		(2	)	(30,549	)	7,961
Interest and other charges
Interest on long-term debt	29,705			8,252		5,886		—		—		43,843
Amortization of net bond premium and expense	1,231			350		359		—		—		1,940
Other interest charges	637			245		887		—		(103	)	1,666
Allowance for borrowed funds used during construction	(1,268		)	(226	)	(132	)	—		—		(1,626		)
Total interest and other charges	30,305			8,621		7,000		—		(103	)	45,823
Net income (loss)	91,749			15,144		15,990		(2	)	(30,446	)	92,435
Preferred stock dividend of subsidiaries	—			400		286		—		—		686
Net income (loss) attributable to Hawaiian Electric	91,749			14,744		15,704		(2	)	(30,446	)	91,749
Preferred stock dividends of Hawaiian Electric	810			—		—		—		—		810
Net income (loss) for common stock	$	90,939		14,744		15,704		(2	)	(30,446	)	$	90,939

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Statement of Comprehensive Income (Loss) (unaudited)

Nine months ended September 30, 2013



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries		Consolidating adjustments		Hawaiian Electric Consolidated
Net income (loss) for common stock	$	90,939		14,744		15,704		(2	)	(30,446	)	$	90,939
Other comprehensive income (loss), net of taxes:
Retirement benefit plans:
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits	15,520			2,160		1,918		—		(4,078	)	15,520
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(15,468		)	(2,162	)	(1,918	)	—		4,080		(15,468		)
Other comprehensive income (loss), net of taxes	52			(2	)	—		—		2		52
Comprehensive income (loss) attributable to common shareholder	$	90,991		14,742		15,704		(2	)	(30,444	)	$	90,991

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Statement of Income (Loss) (unaudited)

Nine months ended September 30, 2012



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries		Consolidating adjustments		Hawaiian Electric Consolidated
Operating revenues	$	1,677,604		332,558		324,664		—		—		$	2,334,826
Operating expenses
Fuel oil	724,862			88,778		172,436		—		—		986,076
Purchased power	401,423			108,996		29,421		—		—		539,840
Other operation	132,770			29,851		34,185		—		—		196,806
Maintenance	60,993			14,280		16,368		—		—		91,641
Depreciation	68,046			25,036		15,474		—		—		108,556
Taxes, other than income taxes	159,928			31,330		30,891		—		—		222,149
Income taxes	41,049			9,836		7,406		—		—		58,291
Total operating expenses	1,589,071			308,107		306,181		—		—		2,203,359
Operating income	88,533			24,451		18,483		—		—		131,467
Other income (loss)
Allowance for equity funds used during construction	4,558			433		557		—		—		5,548
Equity in earnings of subsidiaries	28,025			—		—		—		(28,025	)	—
Other, net	3,215			361		293		(3	)	(56	)	3,810
Income tax benefits (expense)	(101		)	(47	)	11		—		—		(137		)
Total other income (loss)	35,697			747		861		(3	)	(28,081	)	9,221
Interest and other charges
Interest on long-term debt	29,301			8,649		6,450		—		—		44,400
Amortization of net bond premium and expense	1,541			362		373		—		—		2,276
Other interest charges	(412		)	131		253		—		(56	)	(84		)
Allowance for borrowed funds used during construction	(2,061		)	(174	)	(216	)	—		—		(2,451		)
Total interest and other charges	28,369			8,968		6,860		—		(56	)	44,141
Net income (loss)	95,861			16,230		12,484		(3	)	(28,025	)	96,547
Preferred stock dividend of subsidiaries	—			400		286		—		—		686
Net income (loss) attributable to Hawaiian Electric	95,861			15,830		12,198		(3	)	(28,025	)	95,861
Preferred stock dividends of Hawaiian Electric	810			—		—		—		—		810
Net income (loss) for common stock	$	95,051		15,830		12,198		(3	)	(28,025	)	$	95,051

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Statement of Comprehensive Income (Loss) (unaudited)

Nine months ended September 30, 2012



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries		Consolidating adjustments		Hawaiian Electric Consolidated
Net income (loss) for common stock	$	95,051		15,830		12,198		(3	)	(28,025	)	$	95,051
Other comprehensive income, net of taxes:
Retirement benefit plans:
Less: amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits	10,255			1,576		1,328		—		(2,904	)	10,255
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(10,026		)	(1,558	)	(1,309	)	—		2,867		(10,026		)
Other comprehensive income, net of taxes	229			18		19		—		(37	)	229
Comprehensive income (loss) attributable to common shareholder	$	95,280		15,848		12,217		(3	)	(28,062	)	$	95,280

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Balance Sheet (unaudited)

September 30, 2013



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consolidating adjustments		Hawaiian Electric Consolidated
Assets
Utility plant, at cost
Land	$	43,392		5,426		3,016		—	—		$	51,834
Plant and equipment	3,488,617			1,116,702		988,482		—	—		5,593,801
Less accumulated depreciation	(1,211,045		)	(449,547	)	(432,983	)	—	—		(2,093,575		)
Construction in progress	122,399			14,120		14,558		—	—		151,077
Net utility plant	2,443,363			686,701		573,073		—	—		3,703,137
Investment in wholly owned subsidiaries, at equity	507,080			—		—		—	(507,080	)	—
Current assets
Cash and cash equivalents	18,906			2,754		3,423		102	—		25,185
Advances to affiliates	23,000			7,000		—		—	(30,000	)	—
Customer accounts receivable, net	134,641			29,569		23,494		—	—		187,704
Accrued unbilled revenues, net	104,981			16,120		18,800		—	—		139,901
Other accounts receivable, net	15,094			3,877		2,214		—	(12,011	)	9,174
Fuel oil stock, at average cost	105,231			14,615		17,241		—	—		137,087
Materials and supplies, at average cost	37,171			7,042		15,221		—	—		59,434
Prepayments and other	26,024			4,413		14,939		—	—		45,376
Regulatory assets	36,006			4,636		5,081		—	—		45,723
Total current assets	501,054			90,026		100,413		102	(42,011	)	649,584
Other long-term assets
Regulatory assets	626,209			112,244		106,243		—	—		844,696
Unamortized debt expense	6,491			1,882		1,301		—	—		9,674
Other	40,343			8,405		13,919		—	—		62,667
Total other long-term assets	673,043			122,531		121,463		—	—		917,037
Total assets	$	4,124,540		899,258		794,949		102	(549,091	)	$	5,269,758
Capitalization and liabilities
Capitalization
Common stock equity	$	1,501,944		272,860		234,118		102	(507,080	)	$	1,501,944
Cumulative preferred stock—not subject to mandatory redemption	22,293			7,000		5,000		—	—		34,293
Long-term debt, net	780,546			201,334		166,000		—	—		1,147,880
Total capitalization	2,304,783			481,194		405,118		102	(507,080	)	2,684,117
Commitments and contingencies (Note 5)
Current liabilities
Short-term borrowings from non-affiliates	73,246			—		—		—	—		73,246
Short-term borrowings from affiliate	7,000			—		23,000		—	(30,000	)	—
Accounts payable	136,087			25,352		19,518		—	—		180,957
Interest and preferred dividends payable	15,097			3,949		3,363		—	(12	)	22,397
Taxes accrued	163,204			35,403		34,846		—	—		233,453
Other	54,571			11,298		24,664		—	(11,999	)	78,534
Total current liabilities	449,205			76,002		105,391		—	(42,011	)	588,587
Deferred credits and other liabilities
Deferred income taxes	340,014			75,866		62,721		—	—		478,601
Regulatory liabilities	224,568			71,230		33,333		—	—		329,131
Unamortized tax credits	43,564			13,552		13,922		—	—		71,038
Defined benefit pension and other postretirement benefit plans liability	442,613			77,004		76,623			—		596,240
Other	67,157			15,386		13,585		—	—		96,128
Total deferred credits and other liabilities	1,117,916			253,038		200,184		—	—		1,571,138
Contributions in aid of construction	252,636			89,024		84,256		—	—		425,916
Total capitalization and liabilities	$	4,124,540		899,258		794,949		102	(549,091	)	$	5,269,758

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Balance Sheet (unaudited)

December 31, 2012



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consolidating adjustments		Hawaiian Electric Consolidated
Assets
Utility plant, at cost
Land	$	43,370		5,182		3,016		—	—		$	51,568
Plant and equipment	3,325,862			1,086,048		952,490		—	—		5,364,400
Less accumulated depreciation	(1,185,899		)	(433,531	)	(421,359	)	—	—		(2,040,789		)
Construction in progress	130,143			12,126		9,109		—	—		151,378
Net utility plant	2,313,476			669,825		543,256		—	—		3,526,557
Investment in wholly owned subsidiaries, at equity	497,939			—		—		—	(497,939	)	—
Current assets
Cash and cash equivalents	8,265			5,441		3,349		104	—		17,159
Advances to affiliates	9,400			18,050		—		—	(27,450	)	—
Customer accounts receivable, net	154,316			29,772		26,691		—	—		210,779
Accrued unbilled revenues, net	100,600			14,393		19,305		—	—		134,298
Other accounts receivable, net	33,313			1,122		3,016		—	(9,275	)	28,176
Fuel oil stock, at average cost	123,176			15,485		22,758		—	—		161,419
Materials and supplies, at average cost	31,779			5,336		13,970		—	—		51,085
Prepayments and other	21,708			5,146		6,011		—	—		32,865
Regulatory assets	42,675			4,056		4,536		—	—		51,267
Total current assets	525,232			98,801		99,636		104	(36,725	)	687,048
Other long-term assets
Regulatory assets	601,451			109,815		102,063		—	—		813,329
Unamortized debt expense	7,042			2,066		1,446		—	—		10,554
Other	46,586			9,871		14,848		—	—		71,305
Total other long-term assets	655,079			121,752		118,357		—	—		895,188
Total assets	$	3,991,726		890,378		761,249		104	(534,664	)	$	5,108,793
Capitalization and liabilities
Capitalization
Common stock equity	$	1,472,136		268,908		228,927		104	(497,939	)	$	1,472,136
Cumulative preferred stock—not subject to mandatory redemption	22,293			7,000		5,000		—	—		34,293
Long-term debt, net	780,546			201,326		166,000		—	—		1,147,872
Total capitalization	2,274,975			477,234		399,927		104	(497,939	)	2,654,301
Commitments and contingencies (Note 5)
Current liabilities
Current portion of long-term debt	—			—		—		—	—		—
Short-term borrowings from affiliate	18,050			—		9,400		—	(27,450	)	—
Accounts payable	134,651			27,457		24,716		—	—		186,824
Interest and preferred dividends payable	14,479			4,027		2,593		—	(7	)	21,092
Taxes accrued	174,477			38,778		37,811		—	—		251,066
Other	47,203			10,310		14,634		—	(9,268	)	62,879
Total current liabilities	388,860			80,572		89,154		—	(36,725	)	521,861
Deferred credits and other liabilities
Deferred income taxes	302,569			68,479		46,563		—	—		417,611
Regulatory liabilities	218,437			67,359		36,278		—	—		322,074
Unamortized tax credits	39,827			13,450		13,307		—	—		66,584
Defined benefit pension and other postretirement benefit plans liability	459,765			80,686		79,754		—	—		620,205
Other	68,783			17,799		14,055		—	—		100,637
Total deferred credits and other liabilities	1,089,381			247,773		189,957		—	—		1,527,111
Contributions in aid of construction	238,510			84,799		82,211		—	—		405,520
Total capitalization and liabilities	$	3,991,726		890,378		761,249		104	(534,664	)	$	5,108,793

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Statement of Changes in Common Stock Equity (unaudited)

Nine months ended September 30, 2013



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries		Consolidating adjustments		Hawaiian Electric Consolidated
Balance, December 31, 2012	$	1,472,136		268,908		228,927		104		(497,939	)	$	1,472,136
Net income (loss) for common stock	90,939			14,744		15,704		(2	)	(30,446	)	90,939
Other comprehensive income (loss), net of taxes	52			(2	)	—		—		2		52
Common stock dividends	(61,183		)	(10,790	)	(10,513	)	—		21,303		(61,183		)
Balance, September 30, 2013	$	1,501,944		272,860		234,118		102		(507,080	)	$	1,501,944

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Statement of Changes in Common Stock Equity (unaudited)

Nine months ended September 30, 2012



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries		Consolidating adjustments		Hawaiian Electric Consolidated
Balance, December 31, 2011	$	1,402,841		280,468		235,568		107		(516,143	)	$	1,402,841
Net income (loss) for common stock	95,051			15,830		12,198		(3	)	(28,025	)	95,051
Other comprehensive income, net of taxes	229			18		19		—		(37	)	229
Common stock dividends	(54,783		)	(9,854	)	(6,560	)	—		16,414		(54,783		)
Balance, September 30, 2012	$	1,443,338		286,462		241,225		104		(527,791	)	$	1,443,338

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Statement of Cash Flows (unaudited)

Nine months ended September 30, 2013



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries		Consolidating adjustments		Hawaiian Electric Consolidated
Cash flows from operating activities:
Net income (loss)	$	91,749		15,144		15,990		(2	)	(30,446	)	$	92,435
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Equity in earnings of subsidiaries	(30,522		)	—		—		—		30,446		(76		)
Common stock dividends received from subsidiaries	21,379			—		—		—		(21,303	)	76
Depreciation of property, plant and equipment	75,150			25,641		15,074		—		—		115,865
Other amortization	(228		)	1,075		1,623		—		—		2,470
Change in deferred income taxes	31,361			7,165		9,488		—		—		48,014
Change in tax credits, net	3,773			119		618		—		—		4,510
Allowance for equity funds used during construction	(3,144		)	(552	)	(334	)	—		—		(4,030		)
Changes in assets and liabilities:
Decrease (increase) in accounts receivable	37,894			(2,552	)	3,999		—		2,736		42,077
Decrease (increase) in accrued unbilled revenues	(4,381		)	(1,727	)	505		—		—		(5,603		)
Decrease in fuel oil stock	17,945			870		5,517		—		—		24,332
Increase in materials and supplies	(5,392		)	(1,706	)	(1,251	)	—		—		(8,349		)
Increase in regulatory assets	(37,032		)	(7,165	)	(9,117	)	—		—		(53,314		)
Decrease in accounts payable	(10,435		)	(3,343	)	(9,196	)	—		—		(22,974		)
Decrease in prepaid and accrued income and utility revenue taxes	(7,122		)	(3,566	)	(4,728	)	—		—		(15,416		)
Contributions to defined benefit pension and other postretirement benefit plans	(44,650		)	(8,083	)	(8,143	)	—		—		(60,876		)
Other increase in defined benefit pension and other postretirement benefit plans liability	46,394			7,892		8,078		—		—		62,364
Change in other assets and liabilities	(10,562		)	(1,821	)	4,924		—		(2,736	)	(10,195		)
Net cash provided by (used in) operating activities	172,177			27,391		33,047		(2	)	(21,303	)	211,310
Cash flows from investing activities:
Capital expenditures	(164,423		)	(35,900	)	(37,546	)	—		—		(237,869		)
Contributions in aid of construction	15,699			6,160		1,774		—		—		23,633
Other	623			(196	)	—		—		—		427
Advances from (to) affiliates	(13,600		)	11,050		—		—		2,550		—
Net cash used in investing activities	(161,701		)	(18,886	)	(35,772	)	—		2,550		(213,809		)
Cash flows from financing activities:
Common stock dividends	(61,183		)	(10,790	)	(10,513	)	—		21,303		(61,183		)
Preferred stock dividends of Hawaiian Electric and subsidiaries	(810		)	(400	)	(286	)	—		—		(1,496		)
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less	62,196			—		13,600		—		(2,550	)	73,246
Other	(38		)	(2	)	(2	)	—		—		(42		)
Net cash provided by (used in) financing activities	165			(11,192	)	2,799		—		18,753		10,525
Net increase (decrease) in cash and cash equivalents	10,641			(2,687	)	74		(2	)	—		8,026
Cash and cash equivalents, beginning of period	8,265			5,441		3,349		104		—		17,159
Cash and cash equivalents, end of period	$	18,906		2,754		3,423		102		—		$	25,185

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Statement of Cash Flows (unaudited)

Nine months ended September 30, 2012



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries		Consolidating adjustments		Hawaiian Electric Consolidated
Cash flows from operating activities:
Net income (loss)	$	95,861		16,230		12,484		(3	)	(28,025	)	$	96,547
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Equity in earnings of subsidiaries	(28,100		)	—		—		—		28,025		(75		)
Common stock dividends received from subsidiaries	16,464			—		—		—		(16,414	)	50
Depreciation of property, plant and equipment	68,046			25,036		15,474		—		—		108,556
Other amortization	691			1,776		1,607		—		—		4,074
Change in deferred income taxes	64,790			8,290		9,637		—		—		82,717
Change in tax credits, net	3,256			256		130		—		—		3,642
Allowance for equity funds used during construction	(4,558		)	(433	)	(557	)	—		—		(5,548		)
Changes in assets and liabilities:
Decrease (increase) in accounts receivable	(43,284		)	(7,236	)	1,287		—		12,326		(36,907		)
Decrease (increase) in accrued unbilled revenues	3,427			3,107		(798	)	—		—		5,736
Decrease (increase) in fuel oil stock	(36,365		)	3,163		1,830		—		—		(31,372		)
Increase in materials and supplies	(6,320		)	(719	)	(266	)	—		—		(7,305		)
Increase in regulatory assets	(44,175		)	(6,621	)	(6,997	)	—		—		(57,793		)
Increase (decrease) in accounts payable	7,872			(8,518	)	(2,835	)	—		—		(3,481		)
Decrease in prepaid and accrued income and utility revenue taxes	(14,006		)	(3,562	)	(3,097	)	—		—		(20,665		)
Contributions to defined benefit pension and other postretirement benefit plans	(45,878		)	(8,270	)	(8,269	)	—		—		(62,417		)
Other increase in defined benefit pension and other postretirement benefit plans liability	34,421			6,133		9,307				—		49,861
Change in other assets and liabilities	(28,970		)	(1,120	)	(3,192	)	—		(12,326	)	(45,608		)
Net cash provided by (used in) operating activities	43,172			27,512		25,745		(3	)	(16,414	)	80,012
Cash flows from investing activities:
Capital expenditures	(172,872		)	(26,331	)	(21,767	)	—		—		(220,970		)
Contributions in aid of construction	25,547			4,199		3,360		—		—		33,106
Advances from (to) affiliates	—			16,750		11,500		—		(28,250	)	—
Net cash used in investing activities	(147,325		)	(5,382	)	(6,907	)	—		(28,250	)	(187,864		)
Cash flows from financing activities:
Common stock dividends	(54,783		)	(9,854	)	(6,560	)	—		16,414		(54,783		)
Preferred stock dividends of Hawaiian Electric and subsidiaries	(810		)	(400	)	(286	)	—		—		(1,496		)
Proceeds from issuance of long-term debt	367,000			31,000		59,000		—		—		457,000
Repayment of long-term debt	(259,580		)	(41,200	)	(67,720	)	—		—		(368,500		)
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less	16,469			—		—		—		28,250		44,719
Other	(1,980		)	167		(359	)	—		—		(2,172		)
Net cash provided by (used in) financing activities	66,316			(20,287	)	(15,925	)	—		44,664		74,768
Net increase (decrease) in cash and cash equivalents	(37,837		)	1,843		2,913		(3	)	—		(33,084		)
Cash and cash equivalents, beginning of period	44,819			3,383		496		108		—		48,806
Cash and cash equivalents, end of period	$	6,982		5,226		3,409		105		—		$	15,722