Consolidating financial information - HECO (Hawaiian Electric Company, Inc. and Subsidiaries)

9 Months Ended

Sep. 30, 2012

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating financial information

10 ·Consolidating financial information

HECO is not required to provide separate financial statements or other disclosures concerning HELCO and MECO to holders of the 2004 Debentures issued by HELCO and MECO 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 HECO. Consolidating information is provided below for these and other HECO subsidiaries for the periods ended and as of the dates indicated.

HECO also unconditionally guarantees HELCO’s and MECO’s obligations (a) to the State of Hawaii for the repayment of principal and interest on SPRBs issued for the benefit of HELCO and MECO, (b)under their respective private placement note agreements and the HELCO Notes and MECO notes issued thereunder (see Note 8 above) and (c) relating to the trust preferred securities of Trust III (see Note 2 above). HECO is also obligated, after the satisfaction of its obligations on its own preferred stock, to make dividend, redemption and liquidation payments on HELCO’s and MECO’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, 2012

(in thousands)	HECO			HELCO		MECO		Other subsidiaries		Consolidating adjustments		HECO 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	913			114		47		(1	)	(28	)	1,045
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 HECO	38,645			4,728		6,558		(1	)	(11,285	)	38,645
Preferred stock dividends of HECO	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)	HECO			HELCO		MECO		Other subsidiaries		Consolidating adjustments		HECO Consolidated
Net income (loss) for common stock	$	38,375		4,728		6,558		(1	)	(11,285	)	$	38,375
Other comprehensive income (loss), net of taxes:
Retirement benefit plans:
Less: amortization of net loss, prior service gain and transition obligation included 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 (loss), 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)

Three months ended September 30, 2011

(in thousands)	HECO			HELCO		MECO		Other subsidiaries		Consolidating adjustments		HECO Consolidated
Operating revenues	$	590,014		118,420		110,473		—		—		$	818,907
Operating expenses
Fuel oil	259,027			31,433		62,015		—		—		352,475
Purchased power	141,742			38,252		8,490		—		—		188,484
Other operation	43,604			8,530		9,281		—		—		61,415
Maintenance	20,776			5,115		6,445		—		—		32,336
Depreciation	21,613			8,148		5,222		—		—		34,983
Taxes, other than income taxes	54,052			10,929		10,374		—		—		75,355
Income taxes	16,341			4,988		2,531		—		—		23,860
Total operating expenses	557,155			107,395		104,358		—		—		768,908
Operating income	32,859			11,025		6,115		—		—		49,999
Other income (loss)
Allowance for equity funds used during construction	1,220			131		219		—		—		1,570
Equity in earnings of subsidiaries	11,929			—		—		—		(11,929	)	—
Other, net	930			130		116		(2	)	(4	)	1,170
Total other income (loss)	14,079			261		335		(2	)	(11,933	)	2,740
Interest and other charges
Interest on long-term debt	9,130			2,985		2,268		—		—		14,383
Amortization of net bond premium and expense	503			137		127		—		—		767
Other interest charges	(406		)	97		103		—		(4	)	(210		)
Allowance for borrowed funds used during construction	(518		)	(54	)	(86	)	—		—		(658		)
Total interest and other charges	8,709			3,165		2,412		—		(4	)	14,282
Net income (loss)	38,229			8,121		4,038		(2	)	(11,929	)	38,457
Preferred stock dividend of subsidiaries	—			133		95		—		—		228
Net income (loss) attributable to HECO	38,229			7,988		3,943		(2	)	(11,929	)	38,229
Preferred stock dividends of HECO	270			—		—		—		—		270
Net income (loss) for common stock	$	37,959		7,988		3,943		(2	)	(11,929	)	$	37,959

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Statement of Comprehensive Income (Loss) (unaudited)

Three months ended September 30, 2011

(in thousands)	HECO			HELCO		MECO		Other subsidiaries		Consolidating adjustments		HECO Consolidated
Net income (loss) for common stock	$	37,959		7,988		3,943		(2	)	(11,929	)	$	37,959
Other comprehensive income (loss), net of taxes:
Retirement benefit plans:
Less: amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, net of tax benefits	1,854			296		301		—		(597	)	1,854
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(1,732		)	(285	)	(281	)	—		566		(1,732		)
Other comprehensive income (loss), net of taxes	122			11		20		—		(31	)	122
Comprehensive income (loss) attributable to common shareholder	$	38,081		7,999		3,963		(2	)	(11,960	)	$	38,081

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Statement of Income (Loss) (unaudited)

Nine months ended September 30, 2012

(in thousands)	HECO			HELCO		MECO		Other subsidiaries		Consolidating adjustments		HECO 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	3,114			314		304		(3	)	(56	)	3,673
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 HECO	95,861			15,830		12,198		(3	)	(28,025	)	95,861
Preferred stock dividends of HECO	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)	HECO			HELCO		MECO		Other subsidiaries		Consolidating adjustments		HECO Consolidated
Net income (loss) for common stock	$	95,051		15,830		12,198		(3	)	(28,025	)	$	95,051
Other comprehensive income (loss), net of taxes:
Retirement benefit plans:
Less: amortization of net loss, prior service gain and transition obligation included 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 (loss), 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 Statement of Income (Loss) (unaudited)

Nine months ended September 30, 2011

(in thousands)	HECO			HELCO		MECO		Other subsidiaries		Consolidating adjustments		HECO Consolidated
Operating revenues	$	1,550,491		328,650		311,719		—		—		$	2,190,860
Operating expenses
Fuel oil	662,524			90,047		172,905		—		—		925,476
Purchased power	386,414			100,516		21,249		—		—		508,179
Other operation	139,255			26,322		28,757		—		—		194,334
Maintenance	64,045			13,263		15,500		—		—		92,808
Depreciation	67,381			24,619		15,673		—		—		107,673
Taxes, other than income taxes	143,049			30,265		29,188		—		—		202,502
Income taxes	24,679			13,482		8,469		—		—		46,630
Total operating expenses	1,487,347			298,514		291,741		—		—		2,077,602
Operating income	63,144			30,136		19,978		—		—		113,258
Other income (loss)
Allowance for equity funds used during construction	3,154			447		530		—		—		4,131
Equity in earnings of subsidiaries	34,382			—		—		—		(34,382	)	—
Other, net	2,288			450		270		(8	)	(22	)	2,978
Total other income (loss)	39,824			897		800		(8	)	(34,404	)	7,109
Interest and other charges
Interest on long-term debt	27,391			8,954		6,804		—		—		43,149
Amortization of net bond premium and expense	1,519			417		380		—		—		2,316
Other interest charges	414			271		302		—		(22	)	965
Allowance for borrowed funds used during construction	(1,338		)	(189	)	(204	)	—		—		(1,731		)
Total interest and other charges	27,986			9,453		7,282		—		(22	)	44,699
Net income (loss)	74,982			21,580		13,496		(8	)	(34,382	)	75,668
Preferred stock dividend of subsidiaries	—			400		286		—		—		686
Net income (loss) attributable to HECO	74,982			21,180		13,210		(8	)	(34,382	)	74,982
Preferred stock dividends of HECO	810			—		—		—		—		810
Net income (loss) for common stock	$	74,172		21,180		13,210		(8	)	(34,382	)	$	74,172

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Statement of Comprehensive Income (Loss) (unaudited)

Nine months ended September 30, 2011

(in thousands)	HECO			HELCO		MECO		Other subsidiaries		Consolidating adjustments		HECO Consolidated
Net income (loss) for common stock	$	74,172		21,180		13,210		(8	)	(34,382	)	$	74,172
Other comprehensive income (loss), net of taxes:
Retirement benefit plans:
Less: amortization of net loss, prior service gain and transition obligation included in net periodic benefit cost, net of tax benefits	6,280			992		868		—		(1,860	)	6,280
Less: reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes	(6,084		)	(980	)	(849	)	—		1,829		(6,084		)
Other comprehensive income (loss), net of taxes	196			12		19		—		(31	)	196
Comprehensive income (loss) attributable to common shareholder	$	74,368		21,192		13,229		(8	)	(34,413	)	$	74,368

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Balance Sheet (unaudited)

September 30, 2012

(in thousands)	HECO			HELCO		MECO		Other subsidiaries	Consolidating adjustments		HECO Consolidated
Assets
Utility plant, at cost
Land	$	43,347		5,182		3,015		—	—		$	51,544
Plant and equipment	3,244,892			1,066,465		934,412		—	—		5,245,769
Less accumulated depreciation	(1,172,560		)	(431,229	)	(422,661	)	—	—		(2,026,450		)
Construction in progress	146,571			15,963		13,682		—	—		176,216
Net utility plant	2,262,250			656,381		528,448		—	—		3,447,079
Investment in wholly owned subsidiaries, at equity	527,791			—		—		—	(527,791	)	—
Current assets
Cash and cash equivalents	6,982			5,226		3,409		105	—		15,722
Advances to affiliates	—			29,400		7,000		—	(36,400	)	—
Customer accounts receivable, net	166,597			35,074		25,262		—	—		226,933
Accrued unbilled revenues, net	99,901			15,392		16,797		—	—		132,090
Other accounts receivable, net	15,864			1,950		995		—	(16,884	)	1,925
Fuel oil stock, at average cost	164,402			16,054		22,464		—	—		202,920
Materials and supplies, at average cost	31,416			5,419		13,658		—	—		50,493
Prepayments and other	47,458			7,314		9,234		—	—		64,006
Regulatory assets	22,693			1,236		1,174		—	—		25,103
Total current assets	555,313			117,065		99,993		105	(53,284	)	719,192
Other long-term assets
Regulatory assets	512,576			89,736		88,579		—	—		690,891
Unamortized debt expense	7,227			2,100		1,459		—	—		10,786
Other	60,361			14,645		18,761		—	—		93,767
Total other long-term assets	580,164			106,481		108,799		—	—		795,444
Total assets	$	3,925,518		879,927		737,240		105	(581,075	)	$	4,961,715
Capitalization and liabilities
Capitalization
Common stock equity	$	1,443,338		286,462		241,225		104	(527,791	)	$	1,443,338
Cumulative preferred stock—not subject to mandatory redemption	22,293			7,000		5,000		—	—		34,293
Long-term debt, net	780,546			201,323		166,000		—	—		1,147,869
Total capitalization	2,246,177			494,785		412,225		104	(527,791	)	2,625,500
Current liabilities
Short-term borrowings-nonaffiliate	44,719			—		—		—	—		44,719
Short-term borrowings-affiliate	36,400			—		—		—	(36,400	)	—
Accounts payable	170,792			23,283		17,924		—	—		211,999
Interest and preferred dividends payable	15,122			3,809		3,533		—	(6	)	22,458
Taxes accrued	164,498			36,720		34,084		—	—		235,302
Other	46,868			15,135		17,458		1	(16,878	)	62,584
Total current liabilities	478,399			78,947		72,999		1	(53,284	)	577,062
Deferred credits and other liabilities
Deferred income taxes	301,803			69,344		49,577		—	—		420,724
Regulatory liabilities	216,284			66,077		36,969		—	—		319,330
Unamortized tax credits	38,091			13,190		12,897		—	—		64,178
Retirement benefits liability	345,537			57,390		60,672		—	—		463,599
Other	69,109			20,334		14,016		—	—		103,459
Total deferred credits and other liabilities	970,824			226,335		174,131		—	—		1,371,290
Contributions in aid of construction	230,118			79,860		77,885		—	—		387,863
Total capitalization and liabilities	$	3,925,518		879,927		737,240		105	(581,075	)	$	4,961,715

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Balance Sheet (unaudited)

December 31, 2011

(in thousands)	HECO			HELCO		MECO		Other subsidiaries	Consolidating adjustments		HECO Consolidated
Assets
Utility plant, at cost
Land	$	43,316		5,182		3,016		—	—		$	51,514
Plant and equipment	3,091,908			1,048,599		911,520		—	—		5,052,027
Less accumulated depreciation	(1,141,839		)	(414,769	)	(410,286	)	—	—		(1,966,894		)
Construction in progress	117,625			8,144		13,069		—	—		138,838
Net utility plant	2,111,010			647,156		517,319		—	—		3,275,485
Investment in wholly owned subsidiaries, at equity	516,143			—		—		—	(516,143	)	—
Current assets
Cash and cash equivalents	44,819			3,383		496		108	—		48,806
Advances to affiliates	—			46,150		18,500		—	(64,650	)	—
Customer accounts receivable, net	130,190			28,602		24,536		—	—		183,328
Accrued unbilled revenues, net	103,328			18,499		15,999		—	—		137,826
Other accounts receivable, net	8,987			1,186		3,008		—	(4,558	)	8,623
Fuel oil stock, at average cost	128,037			19,217		24,294		—	—		171,548
Materials and supplies, at average cost	25,096			4,700		13,392		—	—		43,188
Prepayments and other	22,517			6,948		7,343		—	(141	)	36,667
Regulatory assets	18,038			1,115		1,130		—	—		20,283
Total current assets	481,012			129,800		108,698		108	(69,349	)	650,269
Other long-term assets
Regulatory assets	478,851			86,394		83,861		—	—		649,106
Unamortized debt expense	8,446			2,464		1,876		—	—		12,786
Other	58,672			11,843		15,846		—	—		86,361
Total other long-term assets	545,969			100,701		101,583		—	—		748,253
Total assets	$	3,654,134		877,657		727,600		108	(585,492	)	$	4,674,007
Capitalization and liabilities
Capitalization
Common stock equity	$	1,402,841		280,468		235,568		107	(516,143	)	$	1,402,841
Cumulative preferred stock—not subject to mandatory redemption	22,293			7,000		5,000		—	—		34,293
Long-term debt, net	629,757			204,110		166,703		—	—		1,000,570
Total capitalization	2,054,891			491,578		407,271		107	(516,143	)	2,437,704
Current liabilities
Current portion of long-term debt	42,580			7,200		7,720		—	—		57,500
Short-term borrowings-affiliate	64,650			—		—		—	(64,650	)	—
Accounts payable	140,044			29,616		18,920		—	—		188,580
Interest and preferred dividends payable	12,648			4,074		2,762		—	(1	)	19,483
Taxes accrued	155,867			38,598		35,752		—	(141	)	230,076
Other	50,828			9,478		13,603		1	(4,557	)	69,353
Total current liabilities	466,617			88,966		78,757		1	(69,349	)	564,992
Deferred credits and other liabilities
Deferred income taxes	236,890			61,044		39,929		—	—		337,863
Regulatory liabilities	215,401			62,049		38,016		—	—		315,466
Unamortized tax credits	34,877			12,951		12,786		—	—		60,614
Retirement benefits liability	368,245			62,036		64,840		—	—		495,121
Other	72,418			22,391		11,235		—	—		106,044
Total deferred credits and other liabilities	927,831			220,471		166,806		—	—		1,315,108
Contributions in aid of construction	204,795			76,642		74,766		—	—		356,203
Total capitalization and liabilities	$	3,654,134		877,657		727,600		108	(585,492	)	$	4,674,007

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Statement of Changes in Common Stock Equity (unaudited)

Nine months ended September 30, 2012

(in thousands)	HECO			HELCO		MECO		Other subsidiaries		Consolidating adjustments		HECO 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 Changes in Common Stock Equity (unaudited)

Nine months ended September 30, 2011

(in thousands)	HECO			HELCO		MECO		Other subsidiaries		Consolidating adjustments		HECO Consolidated
Balance, December 31, 2010	$	1,334,155		269,986		229,651		91		(499,728	)	$	1,334,155
Net income (loss) for common stock	74,172			21,180		13,210		(8	)	(34,382	)	74,172
Other comprehensive income, net of taxes	196			12		19		—		(31	)	196
Common stock dividends	(52,919		)	(12,093	)	(9,003	)	—		21,096		(52,919		)
Capital contribution from parent	—			—		—		25		(25	)	—
Balance, September 30, 2011	$	1,355,604		279,085		233,877		108		(513,070	)	$	1,355,604

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Statement of Cash Flows (unaudited)

Nine months ended September 30, 2012

(in thousands)	HECO			HELCO		MECO		Other subsidiaries		Consolidating adjustments		HECO 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		)
Change 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		)
Change in other assets and liabilities	5,451			5,013		6,115		—		(12,326	)	4,253
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 HECO 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 nonaffiliates 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

Hawaiian Electric Company, Inc. and Subsidiaries

Consolidating Statement of Cash Flows (unaudited)

Nine months ended September 30, 2011

(in thousands)	HECO			HELCO		MECO		Other subsidiaries		Consolidating adjustments		HECO Consolidated
Cash flows from operating activities:
Net income (loss)	$	74,982		21,580		13,496		(8	)	(34,382	)	$	75,668
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Equity in earnings of subsidiaries	(34,457		)	—		—		—		34,382		(75		)
Common stock dividends received from subsidiaries	21,171			—		—		—		(21,096	)	75
Depreciation of property, plant and equipment	67,381			24,619		15,673		—		—		107,673
Other amortization	9,390			1,928		1,376		—		—		12,694
Change in deferred income taxes	33,606			9,801		7,713		—		—		51,120
Change in tax credits, net	771			510		135		—		—		1,416
Allowance for equity funds used during construction	(3,154		)	(447	)	(530	)	—		—		(4,131		)
Change in cash overdraft	—			(2,527	)	(161	)	—		—		(2,688		)
Changes in assets and liabilities:
Increase in accounts receivable	(33,705		)	(3,600	)	(5,926	)	—		265		(42,966		)
Decrease (increase) in accrued unbilled revenues	(32,482		)	(1,719	)	698		—		—		(33,503		)
Decrease (increase) in fuel oil stock	7,631			(4,691	)	(7,532	)	—		—		(4,592		)
Increase in materials and supplies	(4,640		)	(86	)	(554	)	—		—		(5,280		)
Increase in regulatory assets	(27,602		)	(1,551	)	(5,078	)	—		—		(34,231		)
Increase (decrease) in accounts payable	(52,693		)	100		(6,933	)	—		—		(59,526		)
Change in prepaid and accrued income and utility revenue taxes	25,633			8,760		10,105		—		—		44,498
Contributions to defined benefit pension and other postretirement benefit plans	(40,944		)	(6,914	)	(7,377	)	—		—		(55,235		)
Change in other assets and liabilities	5,582			1,429		2,807		(2	)	(265	)	9,551
Net cash provided by (used in) operating activities	16,470			47,192		17,912		(10	)	(21,096	)	60,468
Cash flows from investing activities:
Capital expenditures	(100,033		)	(22,770	)	(19,931	)	—		—		(142,734		)
Contributions in aid of construction	9,381			3,884		1,841		—		—		15,106
Other	77			—		—		—		—		77
Investment in consolidated subsidiary	(25		)	—		—		—		25		—
Advances from (to) affiliates	—			(13,750	)	10,500		—		3,250		—
Net cash used in investing activities	(90,600		)	(32,636	)	(7,590	)	—		3,275		(127,551		)
Cash flows from financing activities:
Common stock dividends	(52,919		)	(12,093	)	(9,003	)	—		21,096		(52,919		)
Preferred stock dividends of HECO and subsidiaries	(810		)	(400	)	(286	)	—		—		(1,496		)
Net increase in short-term borrowings from nonaffiliates and affiliate with original maturities of three months or less	15,748			—		—		—		(3,250	)	12,498
Proceeds from issuance of common stock	—			—		—		25		(25	)	—
Other	(61		)	—		(6	)	—		—		(67		)
Net cash provided by (used in) financing activities	(38,042		)	(12,493	)	(9,295	)	25		17,821		(41,984		)
Net increase (decrease) in cash and cash equivalents	(112,172		)	2,063		1,027		15		—		(109,067		)
Cash and cash equivalents, beginning of period	121,019			1,229		594		94		—		122,936
Cash and cash equivalents, end of period	$	8,847		3,292		1,621		109		—		$	13,869