Revenue taxes - HECO (Hawaiian Electric Company, Inc. and Subsidiaries)

9 Months Ended

Sep. 30, 2011

Hawaiian Electric Company, Inc. and Subsidiaries

Revenue taxes

3 · Revenue taxes

HECO and its subsidiaries’ operating revenues include amounts for various Hawaii state revenue taxes. Revenue taxes are generally recorded as an expense in the period the related revenues are recognized. However, HECO and its subsidiaries’ revenue tax payments to the taxing authorities are based on the prior year’s revenues. For the nine months ended September 30, 2011 and 2010, HECO and its subsidiaries included approximately $193 million and $156 million, respectively, of revenue taxes in “operating revenues” and in “taxes, other than income taxes” expense.