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Electric utility segment (Tables)

6 Months Ended

Jun. 30, 2017

Regulatory projects and legal obligations

Schedule of condensed consolidating statements of income (loss)

Statements of Income Data (unaudited)



	Three months ended June 30				Six months ended June 30
(in thousands)	2017		2016		2017		2016
Interest and dividend income
Interest and fees on loans	$	52,317	$	49,690	$	103,059	$	98,127
Interest and dividends on investment securities	6,763		4,443		13,743		9,460
Total interest and dividend income	59,080		54,133		116,802		107,587
Interest expense
Interest on deposit liabilities	2,311		1,691		4,414		3,283
Interest on other borrowings	824		1,467		1,640		2,952
Total interest expense	3,135		3,158		6,054		6,235
Net interest income	55,945		50,975		110,748		101,352
Provision for loan losses	2,834		4,753		6,741		9,519
Net interest income after provision for loan losses	53,111		46,222		104,007		91,833
Noninterest income
Fees from other financial services	5,810		5,701		11,420		11,200
Fee income on deposit liabilities	5,565		5,262		10,993		10,418
Fee income on other financial products	1,971		2,207		3,837		4,412
Bank-owned life insurance	1,925		1,006		2,908		2,004
Mortgage banking income	587		1,554		1,376		2,749
Gains on sale of investment securities, net	—		598		—		598
Other income, net	391		288		849		621
Total noninterest income	16,249		16,616		31,383		32,002
Noninterest expense
Compensation and employee benefits	24,742		21,919		47,979		44,353
Occupancy	4,185		4,115		8,339		8,253
Data processing	3,207		3,277		6,487		6,449
Services	2,766		2,755		5,126		5,666
Equipment	1,771		1,771		3,519		3,434
Office supplies, printing and postage	1,527		1,583		3,062		2,948
Marketing	839		899		1,356		1,760
FDIC insurance	822		913		1,550		1,797
Other expense	4,705		5,382		9,016		9,357
Total noninterest expense	44,564		42,614		86,434		84,017
Income before income taxes	24,796		20,224		48,956		39,818
Income taxes	8,063		6,939		16,410		13,860
Net income	$	16,733	$	13,285	$	32,546	$	25,958

Schedule of condensed consolidating balance sheets

Balance Sheets Data (unaudited)



(in thousands)	June 30, 2017						December 31, 2016
Assets
Cash and due from banks				$	128,609					$	137,083
Interest-bearing deposits				37,049						52,128
Restricted cash				—						1,764
Available-for-sale investment securities, at fair value				1,302,886						1,105,182
Stock in Federal Home Loan Bank, at cost				11,706						11,218
Loans receivable held for investment				4,744,634						4,738,693
Allowance for loan losses				(56,356		)				(55,533		)
Net loans				4,688,278						4,683,160
Loans held for sale, at lower of cost or fair value				5,261						18,817
Other				354,898						329,815
Goodwill				82,190						82,190
Total assets				$	6,610,877					$	6,421,357

Liabilities and shareholder’s equity
Deposit liabilities—noninterest-bearing				$	1,694,150					$	1,639,051
Deposit liabilities—interest-bearing				4,030,236						3,909,878
Other borrowings				188,130						192,618
Other				101,974						101,635
Total liabilities				6,014,490						5,843,182
Commitments and contingencies
Common stock				1						1
Additional paid in capital				344,062						342,704
Retained earnings				271,739						257,943
Accumulated other comprehensive loss, net of tax benefits
Net unrealized losses on securities	$	(5,687	)				$	(7,931	)
Retirement benefit plans	(13,728		)	(19,415		)	(14,542		)	(22,473		)
Total shareholder’s equity				596,387						578,175
Total liabilities and shareholder’s equity				$	6,610,877					$	6,421,357

Other assets
Bank-owned life insurance				$	146,122					$	143,197
Premises and equipment, net				108,158						90,570
Prepaid expenses				4,632						3,348
Accrued interest receivable				16,949						16,824
Mortgage-servicing rights				9,181						9,373
Low-income housing equity investments				48,596						47,081
Real estate acquired in settlement of loans, net				1,554						1,189
Other				19,706						18,233
				$	354,898					$	329,815
Other liabilities
Accrued expenses				$	34,451					$	36,754
Federal and state income taxes payable				6,336						4,728
Cashier’s checks				24,191						24,156
Advance payments by borrowers				10,334						10,335
Other				26,662						25,662
				$	101,974					$	101,635

Hawaiian Electric Company, Inc. and Subsidiaries

Regulatory projects and legal obligations

Schedule of purchases from all IPPs

As of June 30, 2017, purchases from all IPPs were as follows:



	Three months ended June 30				Six months ended June 30
(in millions)	2017		2016		2017		2016
Kalaeloa	$	48	$	36	$	88	$	65
AES Hawaii	35		36		64		74
HPOWER	16		17		33		33
Puna Geothermal Venture	10		5		18		12
HEP	10		4		17		15
Other IPPs ¹	34		41		60		56
Total IPPs	$	153	$	139	$	280	$	255


¹	Includes wind power, solar power, feed-in tariff projects and other PPAs.

Schedule of net annual incremental amounts proposed to be collected (refunded)

The net annual incremental amounts proposed to be collected (refunded), as revised for Maui Electric, were as follows:



($ in millions)	Hawaiian Electric			Hawaii Electric Light			Maui Electric
2017 Annual incremental RAM adjusted revenues	$	12.7		$	3.2		$	1.6
Annual change in accrued earnings sharing credits	$	—		$	—		$	—
Annual change in accrued RBA balance as of December 31, 2016 (and associated revenue taxes) (refunded)	$	(2.4	)	$	(2.5	)	$	(0.2	)
Net annual incremental amount to be collected under the tariffs	$	10.3		$	0.7		$	1.4
Impact on typical residential customer monthly bill (in dollars) *	$	0.60		$	0.15		$	0.79

* Based on a 500 kilowatthour (KWH) bill for Hawaiian Electric, Maui Electric, and Hawaii Electric Light. The bill impact for Lanai and Molokai customers is expected to be an increase of $0.63, based on a 400 KWH bill.

Schedule of condensed consolidating statements of income (loss)

Condensed Consolidating Statement of Income (unaudited)

Six months ended June 30, 2016



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consolidating adjustments		Hawaiian Electric Consolidated
Revenues	$	684,185		146,835		146,464		—	(37	)	$	977,447
Expenses
Fuel oil	136,319			26,122		43,198		—	—		205,639
Purchased power	194,979			36,157		23,781		—	—		254,917
Other operation and maintenance	137,755			31,557		34,159		—	—		203,471
Depreciation	63,044			18,898		11,599		—	—		93,541
Taxes, other than income taxes	66,098			13,796		13,973		—	—		93,867
Total expenses	598,195			126,530		126,710		—	—		851,435
Operating income	85,990			20,305		19,754		—	(37	)	126,012
Allowance for equity funds used during construction	2,965			333		438		—	—		3,736
Equity in earnings of subsidiaries	18,812			—		—		—	(18,812	)	—
Interest expense and other charges, net	(22,210		)	(5,634	)	(4,604	)	—	37		(32,411		)
Allowance for borrowed funds used during construction	1,116			128		178		—	—		1,422
Income before income taxes	86,673			15,132		15,766		—	(18,812	)	98,759
Income taxes	24,909			5,683		5,945		—	—		36,537
Net income	61,764			9,449		9,821		—	(18,812	)	62,222
Preferred stock dividends of subsidiaries	—			267		191		—	—		458
Net income attributable to Hawaiian Electric	61,764			9,182		9,630		—	(18,812	)	61,764
Preferred stock dividends of Hawaiian Electric	540			—		—		—	—		540
Net income for common stock	$	61,224		9,182		9,630		—	(18,812	)	$	61,224

Condensed Consolidating Statement of Income (unaudited)

Three months ended June 30, 2016



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consolidating adjustments		Hawaiian Electric Consolidated
Revenues	$	347,010		73,652		74,758		—	(25	)	$	495,395
Expenses
Fuel oil	62,234			11,748		17,917		—	—		91,899
Purchased power	103,062			19,360		16,636		—	—		139,058
Other operation and maintenance	68,197			15,116		16,250		—	—		99,563
Depreciation	31,522			9,449		5,789		—	—		46,760
Taxes, other than income taxes	33,414			6,905		7,110		—	—		47,429
Total expenses	298,429			62,578		63,702		—	—		424,709
Operating income	48,581			11,074		11,056		—	(25	)	70,686
Allowance for equity funds used during construction	1,559			206		232		—	—		1,997
Equity in earnings of subsidiaries	10,883			—		—		—	(10,883	)	—
Interest expense and other charges, net	(10,345		)	(2,669	)	(2,114	)	—	25		(15,103		)
Allowance for borrowed funds used during construction	587			79		94		—	—		760
Income before income taxes	51,265			8,690		9,268		—	(10,883	)	58,340
Income taxes	15,138			3,337		3,509		—	—		21,984
Net income	36,127			5,353		5,759		—	(10,883	)	36,356
Preferred stock dividends of subsidiaries	—			133		96		—	—		229
Net income attributable to Hawaiian Electric	36,127			5,220		5,663		—	(10,883	)	36,127
Preferred stock dividends of Hawaiian Electric	270			—		—		—	—		270
Net income for common stock	$	35,857		5,220		5,663		—	(10,883	)	$	35,857

Condensed Consolidating Statement of Income (unaudited)

Three months ended June 30, 2017



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consolidating adjustments		Hawaiian Electric Consolidated
Revenues	$	394,414		81,710		80,765		—	(14	)	$	556,875
Expenses
Fuel oil	99,814			14,475		26,970		—	—		141,259
Purchased power	116,458			23,482		13,127		—	—		153,067
Other operation and maintenance	70,961			17,558		17,855		—	—		106,374
Depreciation	32,723			9,686		5,747		—	—		48,156
Taxes, other than income taxes	37,619			7,702		7,651		—	—		52,972
Total expenses	357,575			72,903		71,350		—	—		501,828
Operating income	36,839			8,807		9,415		—	(14	)	55,047
Allowance for equity funds used during construction	2,659			134		234		—	—		3,027
Equity in earnings of subsidiaries	7,936			—		—		—	(7,936	)	—
Interest expense and other charges, net	(12,562		)	(2,996	)	(2,670	)	—	14		(18,214		)
Allowance for borrowed funds used during construction	988			55		100		—	—		1,143
Income before income taxes	35,860			6,000		7,079		—	(7,936	)	41,003
Income taxes	9,946			2,235		2,679		—	—		14,860
Net income	25,914			3,765		4,400		—	(7,936	)	26,143
Preferred stock dividends of subsidiaries	—			133		96		—	—		229
Net income attributable to Hawaiian Electric	25,914			3,632		4,304		—	(7,936	)	25,914
Preferred stock dividends of Hawaiian Electric	270			—		—		—	—		270
Net income for common stock	$	25,644		3,632		4,304		—	(7,936	)	$	25,644

Condensed Consolidating Statement of Income (unaudited)

Six months ended June 30, 2017



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consolidating adjustments		Hawaiian Electric Consolidated
Revenues	$	757,257		160,692		157,558		—	(21	)	$	1,075,486
Expenses
Fuel oil	197,815			31,732		55,982		—	—		285,529
Purchased power	216,605			42,071		21,515		—	—		280,191
Other operation and maintenance	138,239			33,074		35,301		—	—		206,614
Depreciation	65,445			19,371		11,556		—	—		96,372
Taxes, other than income taxes	72,659			15,152		14,984		—	—		102,795
Total expenses	690,763			141,400		139,338		—	—		971,501
Operating income	66,494			19,292		18,220		—	(21	)	103,985
Allowance for equity funds used during construction	4,715			249		462		—	—		5,426
Equity in earnings of subsidiaries	16,539			—		—		—	(16,539	)	—
Interest expense and other charges, net	(24,619		)	(6,000	)	(5,120	)	—	21		(35,718		)
Allowance for borrowed funds used during construction	1,737			100		195		—	—		2,032
Income before income taxes	64,866			13,641		13,757		—	(16,539	)	75,725
Income taxes	17,217			5,158		5,243		—	—		27,618
Net income	47,649			8,483		8,514		—	(16,539	)	48,107
Preferred stock dividends of subsidiaries	—			267		191		—	—		458
Net income attributable to Hawaiian Electric	47,649			8,216		8,323		—	(16,539	)	47,649
Preferred stock dividends of Hawaiian Electric	540			—		—		—	—		540
Net income for common stock	$	47,109		8,216		8,323		—	(16,539	)	$	47,109

Schedule of condensed consolidating statement of comprehensive income (loss)

Condensed Consolidating Statement of Comprehensive Income (unaudited)

Three months ended June 30, 2017



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consolidating adjustments		Hawaiian Electric Consolidated
Net income for common stock	$	25,644		3,632		4,304		—	(7,936	)	$	25,644
Other comprehensive income (loss), net of taxes:
Derivatives qualified as cash flow hedges:
Reclassification adjustment to net income, net of tax benefits	—			—		—		—	—		—
Retirement benefit plans:
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits	3,621			449		344		—	(793	)	3,621
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(3,581		)	(448	)	(343	)	—	791		(3,581		)
Other comprehensive income (loss), net of taxes	40			1		1		—	(2	)	40
Comprehensive income attributable to common shareholder	$	25,684		3,633		4,305		—	(7,938	)	$	25,684

Condensed Consolidating Statement of Comprehensive Income (unaudited)

Six months ended June 30, 2017



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consolidating adjustments		Hawaiian Electric Consolidated
Net income for common stock	$	47,109		8,216		8,323		—	(16,539	)	$	47,109
Other comprehensive income (loss), net of taxes:
Derivatives qualifying as cash flow hedges:
Reclassification adjustment to net income, net of tax benefits	454			—		—		—	—		454
Retirement benefit plans:
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits	7,239			952		810		—	(1,762	)	7,239
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(7,194		)	(951	)	(810	)	—	1,761		(7,194		)
Other comprehensive income (loss), net of taxes	499			1		—		—	(1	)	499
Comprehensive income attributable to common shareholder	$	47,608		8,217		8,323		—	(16,540	)	$	47,608

Condensed Consolidating Statement of Comprehensive Income (unaudited)

Six months ended June 30, 2016



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consolidating adjustments		Hawaiian Electric Consolidated
Net income for common stock	$	61,224		9,182		9,630		—	(18,812	)	$	61,224
Other comprehensive income, net of taxes:
Derivatives qualifying as cash flow hedges:
Effective portion of foreign currency hedge net unrealized gain, net of taxes	257			—		—		—	—		257
Retirement benefit plans:
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits	6,627			859		775		—	(1,634	)	6,627
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(6,623		)	(860	)	(777	)	—	1,637		(6,623		)
Other comprehensive income, net of taxes	261			(1	)	(2	)	—	3		261
Comprehensive income attributable to common shareholder	$	61,485		9,181		9,628		—	(18,809	)	$	61,485

Condensed Consolidating Statement of Comprehensive Income (unaudited)

Three months ended June 30, 2016



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consolidating adjustments		Hawaiian Electric Consolidated
Net income for common stock	$	35,857		5,220		5,663		—	(10,883	)	$	35,857
Other comprehensive income (loss), net of taxes:
Derivatives qualified as cash flow hedges:
Effective portion of foreign currency hedge net unrealized loss, net of tax benefits	(745		)	—		—		—	—		(745		)
Retirement benefit plans:
Adjustment for amortization of prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits	3,391			401		357		—	(758	)	3,391
Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(3,401		)	(402	)	(359	)	—	761		(3,401		)
Other comprehensive income (loss), net of taxes	(755		)	(1	)	(2	)	—	3		(755		)
Comprehensive income attributable to common shareholder	$	35,102		5,219		5,661		—	(10,880	)	$	35,102

Schedule of condensed consolidating balance sheets

Condensed Consolidating Balance Sheet (unaudited)

December 31, 2016



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consoli- dating adjustments		Hawaiian Electric Consolidated
Assets
Property, plant and equipment
Utility property, plant and equipment
Land	$	43,956		6,181		3,016		—	—		$	53,153
Plant and equipment	4,241,060			1,255,185		1,109,487		—	—		6,605,732
Less accumulated depreciation	(1,382,972		)	(507,666	)	(478,644	)	—	—		(2,369,282		)
Construction in progress	180,194			12,510		19,038		—	—		211,742
Utility property, plant and equipment, net	3,082,238			766,210		652,897		—	—		4,501,345
Nonutility property, plant and equipment, less accumulated depreciation	5,760			115		1,532		—	—		7,407
Total property, plant and equipment, net	3,087,998			766,325		654,429		—	—		4,508,752
Investment in wholly owned subsidiaries, at equity	550,946			—		—		—	(550,946	)	—
Current assets
Cash and cash equivalents	61,388			10,749		2,048		101	—		74,286
Advances to affiliates	—			3,500		10,000		—	(13,500	)	—
Customer accounts receivable, net	86,373			20,055		17,260		—	—		123,688
Accrued unbilled revenues, net	65,821			13,564		12,308		—	—		91,693
Other accounts receivable, net	7,652			2,445		1,416		—	(6,280	)	5,233
Fuel oil stock, at average cost	47,239			8,229		10,962		—	—		66,430
Materials and supplies, at average cost	29,928			7,380		16,371		—	—		53,679
Prepayments and other	16,502			5,352		2,179		—	(933	)	23,100
Regulatory assets	60,185			3,483		2,364		—	—		66,032
Total current assets	375,088			74,757		74,908		101	(20,713	)	504,141
Other long-term assets
Regulatory assets	662,232			120,863		108,324		—	—		891,419
Unamortized debt expense	151			23		34		—	—		208
Other	43,743			13,573		13,592		—	—		70,908
Total other long-term assets	706,126			134,459		121,950		—	—		962,535
Total assets	$	4,720,158		975,541		851,287		101	(571,659	)	$	5,975,428
Capitalization and liabilities
Capitalization
Common stock equity	$	1,799,787		291,291		259,554		101	(550,946	)	$	1,799,787
Cumulative preferred stock—not subject to mandatory redemption	22,293			7,000		5,000		—	—		34,293
Long-term debt, net	915,437			213,703		190,120		—	—		1,319,260
Total capitalization	2,737,517			511,994		454,674		101	(550,946	)	3,153,340
Current liabilities
Short-term borrowings from affiliate	13,500			—		—		—	(13,500	)	—
Accounts payable	86,369			18,126		13,319		—	—		117,814
Interest and preferred dividends payable	15,761			4,206		2,882		—	(11	)	22,838
Taxes accrued	120,176			28,100		25,387		—	(933	)	172,730
Regulatory liabilities	—			2,219		1,543		—	—		3,762
Other	41,352			7,637		12,501		—	(6,269	)	55,221
Total current liabilities	277,158			60,288		55,632		—	(20,713	)	372,365
Deferred credits and other liabilities
Deferred income taxes	524,433			108,052		100,911		—	263		733,659
Regulatory liabilities	281,112			93,974		31,845		—	—		406,931
Unamortized tax credits	57,844			15,994		15,123		—	—		88,961
Defined benefit pension and other postretirement benefit plans liability	444,458			75,005		80,263		—	—		599,726
Other	49,191			13,024		14,969		—	(263	)	76,921
Total deferred credits and other liabilities	1,357,038			306,049		243,111		—	—		1,906,198
Contributions in aid of construction	348,445			97,210		97,870		—	—		543,525
Total capitalization and liabilities	$	4,720,158		975,541		851,287		101	(571,659	)	$	5,975,428

Condensed Consolidating Balance Sheet (unaudited)

June 30, 2017



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consoli- dating adjustments		Hawaiian Electric Consolidated
Assets
Property, plant and equipment
Utility property, plant and equipment
Land	$	43,971		6,191		3,016		—	—		$	53,178
Plant and equipment	4,318,460			1,267,529		1,125,429		—	—		6,711,418
Less accumulated depreciation	(1,423,042		)	(518,266	)	(488,789	)	—	—		(2,430,097		)
Construction in progress	232,965			16,734		22,739		—	—		272,438
Utility property, plant and equipment, net	3,172,354			772,188		662,395		—	—		4,606,937
Nonutility property, plant and equipment, less accumulated depreciation	5,763			115		1,532		—	—		7,410
Total property, plant and equipment, net	3,178,117			772,303		663,927		—	—		4,614,347
Investment in wholly owned subsidiaries, at equity	553,764			—		—		—	(553,764	)	—
Current assets
Cash and cash equivalents	29,988			7,104		5,389		101	—		42,582
Advances to affiliates	—			4,100		1,000		—	(5,100	)	—
Customer accounts receivable, net	88,614			18,847		18,700		—	—		126,161
Accrued unbilled revenues, net	74,640			14,166		14,790		—	—		103,596
Other accounts receivable, net	9,707			2,471		1,042		—	(9,536	)	3,684
Fuel oil stock, at average cost	51,489			8,135		12,768		—	—		72,392
Materials and supplies, at average cost	30,716			8,852		17,531		—	—		57,099
Prepayments and other	25,695			7,294		3,602		—	(251	)	36,340
Regulatory assets	65,891			3,981		4,295		—	—		74,167
Total current assets	376,740			74,950		79,117		101	(14,887	)	516,021
Other long-term assets
Regulatory assets	638,480			119,108		106,522		—	—		864,110
Unamortized debt expense	497			84		109		—	—		690
Other	48,164			13,778		14,045		—	—		75,987
Total other long-term assets	687,141			132,970		120,676		—	—		940,787
Total assets	$	4,795,762		980,223		863,720		101	(568,651	)	$	6,071,155
Capitalization and liabilities
Capitalization
Common stock equity	$	1,803,506		291,760		261,903		101	(553,764	)	$	1,803,506
Cumulative preferred stock—not subject to mandatory redemption	22,293			7,000		5,000		—	—		34,293
Long-term debt, net	915,208			213,677		189,960		—	—		1,318,845
Total capitalization	2,741,007			512,437		456,863		101	(553,764	)	3,156,644
Current liabilities
Short-term borrowings from non-affiliates	43,990			—		—		—	—		43,990
Short-term borrowings from affiliate	5,100			—		—		—	(5,100	)	—
Accounts payable	123,986			19,796		18,593		—	—		162,375
Interest and preferred dividends payable	13,584			3,806		2,113		—	(6	)	19,497
Taxes accrued	98,156			23,394		20,964		—	(251	)	142,263
Regulatory liabilities	126			713		2,044		—	—		2,883
Other	38,964			8,920		14,786		—	(9,530	)	53,140
Total current liabilities	323,906			56,629		58,500		—	(14,887	)	424,148
Deferred credits and other liabilities
Deferred income taxes	542,109			111,616		106,023		—	224		759,972
Regulatory liabilities	297,006			98,844		32,897		—	—		428,747
Unamortized tax credits	59,537			16,246		15,603		—	—		91,386
Defined benefit pension and other postretirement benefit plans liability	435,614			73,246		78,858		—	—		587,718
Other	49,798			13,803		15,959		—	(224	)	79,336
Total deferred credits and other liabilities	1,384,064			313,755		249,340		—	—		1,947,159
Contributions in aid of construction	346,785			97,402		99,017		—	—		543,204
Total capitalization and liabilities	$	4,795,762		980,223		863,720		101	(568,651	)	$	6,071,155

Schedule of condensed consolidating statement of changes in common stock equity

Condensed Consolidating Statement of Changes in Common Stock Equity (unaudited)

Six months ended June 30, 2017



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consolidating adjustments		Hawaiian Electric Consolidated
Balance, December 31, 2016	$	1,799,787		291,291		259,554		101	(550,946	)	$	1,799,787
Net income for common stock	47,109			8,216		8,323		—	(16,539	)	47,109
Other comprehensive income, net of taxes	499			1		—		—	(1	)	499
Common stock dividends	(43,884		)	(7,748	)	(5,973	)	—	13,721		(43,884		)
Common stock issuance expenses	(5		)	—		(1	)	—	1		(5		)
Balance, June 30, 2017	$	1,803,506		291,760		261,903		101	(553,764	)	$	1,803,506

Condensed Consolidating Statement of Changes in Common Stock Equity (unaudited)

Six months ended June 30, 2016



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consolidating adjustments		Hawaiian Electric Consolidated
Balance, December 31, 2015	$	1,728,325		292,702		263,725		101	(556,528	)	$	1,728,325
Net income for common stock	61,224			9,182		9,630		—	(18,812	)	61,224
Other comprehensive income (loss), net of taxes	261			(1	)	(2	)	—	3		261
Common stock dividends	(46,800		)	(6,604	)	(6,530	)	—	13,134		(46,800		)
Common stock issuance expenses	(4		)	(4	)	—		—	4		(4		)
Balance, June 30, 2016	$	1,743,006		295,275		266,823		101	(562,199	)	$	1,743,006

Schedule of condensed condensed consolidating statement of cash flows

Condensed Consolidating Statement of Cash Flows (unaudited)

Six months ended June 30, 2016



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consolidating adjustments		Hawaiian Electric Consolidated
Cash flows from operating activities
Net income	$	61,764		9,449		9,821		—	(18,812	)	$	62,222
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in earnings of subsidiaries	(18,862		)	—		—		—	18,812		(50		)
Common stock dividends received from subsidiaries	13,184			—		—		—	(13,134	)	50
Depreciation of property, plant and equipment	63,044			18,898		11,599		—	—		93,541
Other amortization	1,919			911		963		—	—		3,793
Deferred income taxes	23,954			2,538		5,623		—	3		32,118
Allowance for equity funds used during construction	(2,965		)	(333	)	(438	)	—	—		(3,736		)
Other	1,383			1,611		(12	)	—	—		2,982
Changes in assets and liabilities:
Decrease in accounts receivable	14,177			2,007		729		—	(231	)	16,682
Decrease (increase) in accrued unbilled revenues	(2,941		)	634		(908	)	—	—		(3,215		)
Decrease in fuel oil stock	6,015			924		2,705		—	—		9,644
Increase in materials and supplies	(1,748		)	(708	)	(26	)	—	—		(2,482		)
Decrease (increase) in regulatory assets	(3,974		)	2,138		1,159		—	—		(677		)
Increase in accounts payable	17,150			208		6,069		—	—		23,427
Change in prepaid and accrued income taxes, tax credits and revenue taxes	(21,371		)	(192	)	(6,626	)	—	(3	)	(28,192		)
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability	299			27		(89	)	—	—		237
Change in other assets and liabilities	(11,803		)	11		(659	)	—	231		(12,220		)
Net cash provided by operating activities	139,225			38,123		29,910		—	(13,134	)	194,124
Cash flows from investing activities
Capital expenditures	(152,283		)	(27,436	)	(17,613	)	—	—		(197,332		)
Contributions in aid of construction	12,824			1,605		2,381		—	—		16,810
Other	132			169		30		—	—		331
Advances from affiliates	—			(3,000	)	(11,000	)	—	14,000		—
Net cash used in investing activities	(139,327		)	(28,662	)	(26,202	)	—	14,000		(180,191		)
Cash flows from financing activities
Common stock dividends	(46,800		)	(6,604	)	(6,530	)	—	13,134		(46,800		)
Preferred stock dividends of Hawaiian Electric and subsidiaries	(540		)	(267	)	(191	)	—	—		(998		)
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less	50,995			—		—		—	(14,000	)	36,995
Other	8			(8	)	—		—	—		—
Net cash provided by (used in) financing activities	3,663			(6,879	)	(6,721	)	—	(866	)	(10,803		)
Net increase (decrease) in cash and cash equivalents	3,561			2,582		(3,013	)	—	—		3,130
Cash and cash equivalents, beginning of period	16,281			2,682		5,385		101	—		24,449
Cash and cash equivalents, end of period	$	19,842		5,264		2,372		101	—		$	27,579

Condensed Consolidating Statement of Cash Flows (unaudited)

Six months ended June 30, 2017



(in thousands)	Hawaiian Electric			Hawaii Electric Light		Maui Electric		Other subsidiaries	Consolidating adjustments		Hawaiian Electric Consolidated
Cash flows from operating activities
Net income	$	47,649		8,483		8,514		—	(16,539	)	$	48,107
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in earnings of subsidiaries	(16,589		)	—		—		—	16,539		(50		)
Common stock dividends received from subsidiaries	13,771			—		—		—	(13,721	)	50
Depreciation of property, plant and equipment	65,445			19,371		11,556		—	—		96,372
Other amortization	1,875			905		1,482		—	—		4,262
Deferred income taxes	15,060			3,590		4,988		—	(39	)	23,599
Allowance for equity funds used during construction	(4,715		)	(249	)	(462	)	—	—		(5,426		)
Other	1,089			699		(173	)	—	—		1,615
Changes in assets and liabilities:
Decrease (increase) in accounts receivable	(5,100		)	1,182		(1,067	)	—	3,256		(1,729		)
Increase in accrued unbilled revenues	(8,819		)	(602	)	(2,482	)	—	—		(11,903		)
Decrease (increase) in fuel oil stock	(4,250		)	94		(1,806	)	—	—		(5,962		)
Increase in materials and supplies	(788		)	(1,472	)	(1,160	)	—	—		(3,420		)
Decrease (increase) in regulatory assets	11,378			(1,575	)	(1,624	)	—	—		8,179
Increase in accounts payable	39,954			3,291		8,392		—	—		51,637
Change in prepaid and accrued income taxes, tax credits and revenue taxes	(29,430		)	(6,290	)	(4,725	)	—	(465	)	(40,910		)
Increase (decrease) in defined benefit pension and other postretirement benefit plans liability	355			26		(79	)	—	—		302
Change in other assets and liabilities	(12,727		)	129		1,807		—	(3,256	)	(14,047		)
Net cash provided by operating activities	114,158			27,582		23,161		—	(14,225	)	150,676
Cash flows from investing activities
Capital expenditures	(153,554		)	(24,744	)	(23,782	)	—	—		(202,080		)
Contributions in aid of construction	14,078			1,870		1,623		—	—		17,571
Other	4,820			619		307		—	504		6,250
Advances from affiliates	—			(600	)	9,000		—	(8,400	)	—
Net cash used in investing activities	(134,656		)	(22,855	)	(12,852	)	—	(7,896	)	(178,259		)
Cash flows from financing activities
Common stock dividends	(43,884		)	(7,748	)	(5,973	)	—	13,721		(43,884		)
Preferred stock dividends of Hawaiian Electric and subsidiaries	(540		)	(267	)	(191	)	—	—		(998		)
Proceeds from issuance of special purpose revenue bonds	162,000			28,000		75,000		—			265,000
Funds transferred for redemption of special purpose revenue bonds	(162,000		)	(28,000	)	(75,000	)	—	—		(265,000		)
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less	35,590			—		—		—	8,400		43,990
Other	(2,068		)	(357	)	(804	)	—	—		(3,229		)
Net cash used in financing activities	(10,902		)	(8,372	)	(6,968	)	—	22,121		(4,121		)
Net increase (decrease) in cash and cash equivalents	(31,400		)	(3,645	)	3,341		—	—		(31,704		)
Cash and cash equivalents, beginning of period	61,388			10,749		2,048		101	—		74,286
Cash and cash equivalents, end of period	$	29,988		7,104		5,389		101	—		$	42,582

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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