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Electric utility segment
 9 Months Ended
Sep. 30, 2019
Electric utility subsidiary [Abstract]  
Electric utility segment Electric utility segment
HECO Capital Trust III. Trust III, a statutory trust, which was formed to effect the issuance of $50 million of cumulative quarterly income trust preferred securities in 2004 (2004 Trust Preferred Securities), and had at all times been a wholly-owned unconsolidated subsidiary of Hawaiian Electric, redeemed $50 million of its outstanding 2004 Trust Preferred Securities and $1.5 million of trust common securities on May 15, 2019. Subsequently, a Certificate of Cancellation of Statutory Trust was filed with the Delaware Secretary of State in order to cancel the Trust III, which became effective on June 10, 2019.
For the year-to-date period ending on the Trust’s cancellation date on June 10, 2019 and nine month ended September 30, 2018, Trust III’s income statements consisted of $1.2 million and $2.5 million of interest income received from the 2004 Debentures; $1.2 million and $2.4 million of distributions to holders of the Trust Preferred Securities; $37,000 and $75,000 of common dividends on the trust common securities to Hawaiian Electric, respectively.
Unconsolidated variable interest entities.
Power purchase agreements.  As of September 30, 2019, the Utilities had four PPAs for firm capacity (excluding the PGV PPA as PGV has been offline since May 2018 due to lava flow on Hawaii Island) and other PPAs with independent power producers (IPPs) and Schedule Q providers (i.e., customers with cogeneration and/or power production facilities who buy power from or sell power to the Utilities), none of which are currently required to be consolidated as VIEs.
Pursuant to the current accounting standards for VIEs, the Utilities are deemed to have a variable interest in Kalaeloa Partners, L.P. (Kalaeloa), AES Hawaii, Inc. (AES Hawaii) and Hamakua Energy by reason of the provisions of the PPA that the Utilities have with the three IPPs. However, management has concluded that the Utilities are not the primary beneficiary of Kalaeloa, AES Hawaii and Hamakua Energy because the Utilities do not have the power to direct the activities that most significantly impact the three IPPs’ economic performance nor the obligation to absorb their expected losses, if any, that could potentially be significant to the IPPs. Thus, the Utilities have not consolidated Kalaeloa, AES Hawaii and Hamakua Energy in its condensed consolidated financial statements. Hamakua Energy is an indirect subsidiary of Pacific Current and is consolidated in HEI’s condensed consolidated financial statements.
For the other PPAs with IPPs, the Utilities have concluded that the consolidation of the IPPs was not required because either the Utilities do not have variable interests in the IPPs due to the absence of an obligation in the PPAs for the Utilities to absorb any variability of the IPPs, or the IPP was considered a “governmental organization,” and thus excluded from the scope of accounting standards for VIEs. Two IPPs of as-available energy declined to provide the information necessary for Utilities to determine the applicability of accounting standards for VIEs. If information is ultimately received from the IPPs, a possible outcome of future analyses of such information is the consolidation of one or both of such IPPs in the unaudited condensed consolidated financial statements. The consolidation of any significant IPP could have a material effect on the unaudited condensed consolidated financial statements, including the recognition of a significant amount of assets and liabilities and, if such a consolidated IPP were operating at a loss and had insufficient equity, the potential recognition of such losses. If the Utilities determine they are required to consolidate the financial statements of such an IPP and the consolidation has a material effect, the Utilities would retrospectively apply accounting standards for VIEs to the IPP.
Commitments and contingencies.
Fuel contracts. The fuel contract entered into in January 2019, by the Utilities and PAR Hawaii Refining, LLC, for the Utilities' low sulfur fuel oil, high sulfur fuel oil, No. 2 diesel, and ultra-low sulfur diesel requirements was approved by the PUC, and became effective on April 28, 2019 and terminates on December 31, 2022. The existing fuel contracts with Island Energy Services, LLC (IES), terminated on April 27, 2019, as agreed with IES under a mutual termination and release agreement entered into in November 2018.
Contingencies. The Utilities are subject in the normal course of business to pending and threatened legal proceedings. Management does not anticipate that the aggregate ultimate liability arising out of these pending or threatened legal proceedings will be material to its financial position. However, the Utilities cannot rule out the possibility that such outcomes could have a material effect on the results of operations or liquidity for a particular reporting period in the future.

Power purchase agreements.  Purchases from all IPPs were as follows:
 
 
Three months ended September 30
 
Nine months ended September 30
(in millions)
 
2019
 
2018
 
2019
 
2018
Kalaeloa
 
$
58

 
$
62

 
$
159

 
$
154

AES Hawaii
 
38

 
38

 
102

 
107

HPOWER
 
20

 
19

 
57

 
51

Puna Geothermal Venture
 
—

 
—

 
—

 
15

Hamakua Energy
 
17

 
17

 
51

 
39

Wind IPPs
 
30

 
31

 
73

 
84

Solar IPPs
 
11

 
8

 
26

 
22

Other IPPs 1
 
2

 
2

 
4

 
6

Total IPPs
 
$
176

 
$
177

 
$
472

 
$
478

 
1 
Includes hydro power and other PPAs
Kalaeloa Partners, L.P.  Under a 1988 PPA, as amended, Hawaiian Electric is committed to purchase 208 MW of firm capacity from Kalaeloa. Hawaiian Electric and Kalaeloa are currently in negotiations to address the PPA term that ended on May 23, 2016. The PPA automatically extends on a month-to-month basis as long as the parties are still negotiating in good faith. Hawaiian Electric and Kalaeloa have agreed that neither party will terminate the PPA (which has been subject to automatic extension on a month-to-month basis) prior to July 31, 2020, to allow for a negotiated resolution and PUC approval.
AES Hawaii, Inc. Under a PPA entered into in March 1988, as amended (through Amendment No. 2) for a period of 30 years ending September 2022, Hawaiian Electric agreed to purchase 180 MW of firm capacity from AES Hawaii. Hawaiian Electric and AES Hawaii have been in dispute over an additional 9 MW of capacity. In February 2018, Hawaiian Electric reached agreement with AES Hawaii on an amendment to the PPA. However, in June 2018, the PUC issued an order suspending review of the amendment pending a Department of Health of the State of Hawaii (DOH) decision on AES Hawaii’s request for approval of its Emission Reduction Plan and partnership with Hawaiian Electric. If approved by the PUC, the amendment will resolve AES Hawaii’s claims related to the additional capacity.
Hu Honua Bioenergy, LLC (Hu Honua). In May 2012, Hawaii Electric Light signed a PPA, which the PUC approved in December 2013, with Hu Honua for 21.5 MW of renewable, dispatchable firm capacity fueled by locally grown biomass from a facility on the island of Hawaii. Under the terms of the PPA, the Hu Honua plant was scheduled to be in service in 2016. However, Hu Honua encountered construction and litigation delays, which resulted in an amended and restated PPA between Hawaii Electric Light and Hu Honua dated May 5, 2017. In July 2017, the PUC approved the amended and restated PPA, which becomes effective once the PUC’s order is final and non-appealable. In August 2017, the PUC’s approval was appealed by a third party. On May 10, 2019, the Hawaii Supreme Court issued a decision remanding the matter to the PUC for further proceedings consistent with the court’s decision which must include express consideration of Green House Gas emissions that would result from approving the PPA, whether the cost of energy under the PPA is reasonable in light of the potential for GHG emissions, and whether the terms of the PPA are prudent and in the public interest, in light of its potential hidden and long-term consequences. On June 20, 2019, the PUC issued an order reopening the docket for further proceedings. On September 29, 2019, the PUC issued an order setting the procedural schedule for the matter. Pre-hearing matters will be conducted through February 3, 2020. Thereafter, the PUC will set the date for an evidentiary hearing and post-hearing briefing. Hu Honua expects to complete construction of the plant in the fourth quarter of 2019.
Utility projects.  Many public utility projects require PUC approval and various permits from other governmental agencies. Difficulties in obtaining, or the inability to obtain, the necessary approvals or permits can result in significantly increased project costs or even cancellation of projects. In the event a project does not proceed, or if it becomes probable the PUC will disallow cost recovery for all or part of a project, or if PUC-imposed caps on project costs are expected to be exceeded, project costs may need to be written off in amounts that could result in significant reductions in Hawaiian Electric’s consolidated net income.
Enterprise Resource Planning/Enterprise Asset Management (ERP/EAM) implementation project. The ERP/EAM Implementation Project went live in October 2018. In the Hawaiian Electric 2017 rate case, a settlement agreement approved by the PUC included authorization for the deferred project costs to accrue a return at 1.75% after the project went into service and until the deferred project costs are included in rate base, and for amortization of the deferred costs to not begin until the amortization expense is incorporated in rates and the unamortized deferred project costs are included in rate base. As of September 30, 2019, the total deferred project costs and accrued carrying costs after the project went into service amounted to $59.1 million.
In February 2019, the PUC approved a methodology for passing the future cost saving benefits of the new ERP/EAM system to customers developed by the Utilities in collaboration with the Consumer Advocate. The Utilities filed a benefits clarification document on June 10, 2019, reflecting $150 million in future net O&M expense reductions and cost avoidance, and $96 million in capital cost reductions and tax savings over the 12-year service life. To the extent the reduction in O&M expense relates to amounts reflected in electric rates, the Utilities would reduce future rates for such amounts. As of September 30, 2019, the Utilities recorded a total of $1.4 million as a regulatory liability for amounts to be returned to customers for reduction in O&M expense included in rates.
On September 13, 2019, the Utilities filed their Semi-Annual Enterprise System Benefits Report for the period January 1 through June 30, 2019. In October 2019, the PUC approved the Utilities and the Consumer Advocate’s Stipulated Performance Metrics and Tracking Mechanism.
West Loch PV Project. In June 2017, the PUC approved the expenditure of funds for Hawaiian Electric to build, own and operate a utility-owned, grid-tied 20-MW (ac) solar facility on property owned by the Department of the Navy, including a proposed project cost cap of $67 million and a performance guarantee to provide energy at 9.56 cents/kWh or less to the system.
In approving the project, the PUC agreed that the project is eligible for recovery of costs offset by related net benefits under the newly-established major project interim recovery (MPIR) adjustment mechanism. (See “Decoupling” section below for MPIR guidelines and cost recovery discussion.) Hawaiian Electric has provided supplemental materials, as requested by the PUC, to support meeting the MPIR guidelines, accompanied by system performance guarantee and cost savings sharing mechanisms. A decision on these matters is pending.
Construction of the facility began in the second quarter of 2018, and the facility is expected to be placed in service in November 2019. Project costs incurred as of September 30, 2019 amounted to $49.3 million.
Environmental regulation.  The Utilities are subject to environmental laws and regulations that regulate the operation of existing facilities, the construction and operation of new facilities and the proper cleanup and disposal of hazardous waste and toxic substances.
Hawaiian Electric, Hawaii Electric Light and Maui Electric, like other utilities, periodically encounter petroleum or other chemical releases associated with current or previous operations. The Utilities report and take action on these releases when and as required by applicable law and regulations. The Utilities believe the costs of responding to such releases identified to date will not have a material effect, individually or in the aggregate, on Hawaiian Electric’s consolidated results of operations, financial condition or liquidity.
Former Molokai Electric Company generation site.  In 1989, Maui Electric acquired by merger Molokai Electric Company. Molokai Electric Company had sold its former generation site (Site) in 1983, but continued to operate at the Site under a lease until 1985. The Environmental Protection Agency (EPA) has since identified environmental impacts in the subsurface soil at the Site. In cooperation with the Hawaii Department of Health and EPA, Maui Electric further investigated the Site and the Adjacent Parcel to determine the extent of impacts of polychlorinated biphenyls (PCBs), residual fuel oils and other subsurface contaminants. Maui Electric has a reserve balance of $2.7 million as of September 30, 2019, representing the probable and reasonably estimable cost for remediation of the Site and the Adjacent Parcel; however, final costs of remediation will depend on cleanup approach implemented.
Pearl Harbor sediment study. In July 2014, the U.S. Navy notified Hawaiian Electric of the Navy’s determination that Hawaiian Electric is a Potentially Responsible Party responsible for the costs of investigation and cleanup of PCB contamination in sediment in the area offshore of the Waiau Power Plant as part of the Pearl Harbor Superfund Site. Hawaiian Electric was also required by the EPA to assess potential sources and extent of PCB contamination onshore at Waiau Power Plant.
As of September 30, 2019, the reserve account balance recorded by Hawaiian Electric to address the PCB contamination was $4.4 million. The reserve balance represents the probable and reasonably estimable cost for the onshore investigation and the remediation of PCB contamination in the offshore sediment. The final remediation costs will depend on the potential onshore source control requirements and actual offshore cleanup costs.
Regulatory proceedings
Decoupling. Decoupling is a regulatory model that is intended to provide the Utilities with financial stability and facilitate meeting the State of Hawaii’s goals to transition to a clean energy economy and achieve an aggressive renewable portfolio standard. The decoupling mechanism has the following major components: (1) monthly revenue balancing account (RBA) revenues or refunds for the difference between PUC-approved target revenues and recorded adjusted revenues, which delinks revenues from kilowatthour sales, (2) RAM revenues for escalation in certain O&M expenses and rate base changes,
(3) MPIR component, (4) performance incentive mechanisms (PIMs), and (5) an earnings sharing mechanism, which would provide for a reduction of revenues between rate cases in the event the utility exceeds the return on average common equity (ROACE) allowed in its most recent rate case. Under the decoupling mechanism, triennial general rate cases are required.
Rate adjustment mechanism. The RAM is based on the lesser of: a) an inflationary adjustment for certain O&M expenses and return on investment for certain rate base changes, or b) cumulative annual compounded increase in Gross Domestic Product Price Index applied to annualized target revenues (the RAM Cap). Annualized target revenues reset upon the issuance of an interim or final decision and order (D&O) in a rate case. Each of the Utilities’ RAM revenues was below its respective RAM Cap in 2019. The 2019 RAM also incorporated additional amortization of the regulatory liability associated with certain excess deferred taxes resulting from the 2017 Tax Cuts and Jobs Act decrease in tax rates. The reduction in the RAM revenues will be counterbalanced by the lower income tax expense and, therefore, will have no net income impact.
Major project interim recovery. On April 27, 2017, the PUC issued an order that provided guidelines for interim recovery of revenues to support major projects placed in service between general rate cases.
The PUC approved recovery of capital costs under the MPIR for Schofield Generating Station, which increased revenues in 2018 by $3.6 million and are being collected in customer bills beginning in June 2019. In February 2019, Hawaiian Electric submitted an MPIR filing of $19.8 million for 2019 (which accrued effective January 1, 2019) that included the 2019 return on project amount (up to the capped amount) in rate base, depreciation and incremental O&M expenses, for collection from June 2020 through May 2021. The PUC has also indicated that it intends to approve MPIR for the West Loch PV Project.
Performance incentive mechanisms. The PUC has established the following PIMs:
•
Service Quality performance incentives are measured on a calendar-year basis. The PIM tariff requires the performance targets, deadbands and the amount of maximum financial incentives used to determine the PIM financial incentive levels for each of the PIMs to be re-determined upon issuance of an interim or final order in a general rate case for each utility.
•
Service Reliability Performance measured by System Average Interruption Duration and Frequency Indexes (penalties only). Target performance is based on each utility’s historical 10-year average performance with a deadband of one standard deviation. The maximum penalty for each performance index is 20 basis points applied to the common equity share of each respective utility’s approved rate base (or maximum penalties of approximately $6.7 million - for both indices in total for the three utilities).
•
Call Center Performance measured by the percentage of calls answered within 30 seconds. Target performance is based on the annual average performance for each utility for the most recent 8 quarters with a deadband of 3% above and below the target. The maximum penalty or incentive is 8 basis points applied to the common equity share of each respective utility’s approved rate base (or maximum penalties or incentives of approximately $1.3 million - in total for the three utilities).
•
In 2018, the Utilities accrued $2.1 million in estimated penalties for service reliability net of call center performance incentives for 2018. As a result of a PUC order denying the exclusion of the impact of a specific project on the service reliability performance, in May 2019, Hawaiian Electric accrued an additional $1.3 million in service reliability penalties related to 2018. The net service quality performance penalties related to 2018 were reflected in the 2019 annual decoupling filing and will reduce customer rates in the period June 1, 2019 through May 31, 2020.
•
In May 2019, the Utilities filed an application for approval to, among other things, modify the measurement of performance for the System Average Interruption Duration and Frequency Indexes, adjust the PIM targets, deadbands, and financial incentive levels for each of the PIMs upon issuance of a final order in a general rate case, and adjust the call center performance PIM level for Hawaii Electric Light.
•
Procurement of low-cost variable renewable resources through the request for proposal process in 2018 is measured by comparison of the procurement price to target prices. The incentive is a percentage of the savings determined by comparing procured price to a target of 11.5 cents per kilowatt-hour for renewable projects with storage capability and 9.5 cents per kilowatt-hour for energy-only renewable projects. For PPAs filed by December 31, 2018 and subsequently approved by the PUC, the incentive is 20% of the savings, with a cap of $3.5 million for the three utilities in total. For PPAs filed in January, February, and March 2019 and subsequently approved by the PUC, scaled incentives are 15%, 10% and 5%, respectively, of the savings for PPAs, with a cap of $3 million for the three utilities in total. There are no penalties. On March 25, 2019, the PUC approved six contracts, which were filed by December 31, 2018 and qualified for incentives. A seventh contract, which was filed in February 2019 and approved in August 2019, also qualified for incentives. Half of the incentive is earned upon PUC approval of the contract and the other half is eligible to be earned in the year following the in-service date of the projects. The Utilities accrued $1.7 million
in incentives in March 2019, which were reflected in the 2019 annual decoupling filing and will be recovered in rates in the period June 1, 2019 through May 31, 2020.
On October 9, 2019, the PUC issued an order establishing PIMs for the Utilities with regards to the Variable Renewable Dispatchable Generation and Energy Storage requests for proposals (RFPs) as well as the Delivery of Grid Services via Customer-sited Distributed Energy Resources RFPs, that were issued on August 22, 2019 for Oahu, Maui and Hawaii island. The order establishes pricing thresholds, timelines to complete contracting, and other performance criteria for the performance incentive eligibility. The PIMs provide incentives only without penalties. The earliest the Utilities would be eligible for a PIM pursuant to this order is upon PUC approval of executed contracts resulting from the Phase 2 RFPs. The order requires contracts under the Grid Service RFP be filed for approval by May 2020, and by September 2020 under the Renewable RFPs. There is no set time period for approval. The Utilities filed a motion for reconsideration and/or clarification regarding the order on October 21, 2019, relating to certain design aspects and eligibility criteria for the PIMs.
Annual decoupling filings. The net annual incremental amounts approved to be collected (refunded) from June 1, 2019 through May 31, 2020 are as follows:
(in millions)
 
Hawaiian Electric
 
Hawaii Electric Light
 
Maui Electric
 
Total
2019 Annual incremental RAM adjusted revenues, net of changes in Tax Act adjustment*
 
$
6.5

 
$
1.1

 
$
5.4

 
$
13.0

Annual change in accrued RBA balance as of December 31, 2018 (and associated revenue taxes) which incorporates MPIR recovery
 
(12.2
)
 
(2.0
)
 
0.8

 
(13.4
)
Performance Incentive Mechanisms (net)
 
(1.3
)
 
—

 
(0.4
)
 
(1.7
)
Net annual incremental amount to be collected (refunded) under the tariffs
 
$
(7.0
)
 
$
(0.9
)
 
$
5.8

 
$
(2.1
)
*   The 2017 Tax Cuts and Jobs Act (the Tax Act) had two incremental impacts in 2019. First, the 2019 RAM calculation for all of the Utilities incorporated additional amortization of the regulatory liability associated with certain deferred taxes. Secondly, Maui Electric incorporated a $2.8 million adjustment in its 2018 annual decoupling filing related to the Tax Act which is not recurring in 2019.
Performance-based regulation proceeding. On April 18, 2018, the PUC issued an order, instituting a proceeding to investigate performance-based regulation (PBR). The PUC stated that PBR seeks to utilize both revenue adjustment mechanisms and performance mechanisms to more strongly align utilities’ incentives with customer interests.
The order stated that, in general, the PUC is interested in ratemaking elements and/or mechanisms that result in:
•
Greater cost control and reduced rate volatility;
•
Efficient investment and allocation of resources regardless of classification as capital or operating expense;
•
Fair distribution of risks between utilities and customers; and
•
Fulfillment of State policy goals.
The proceeding has two phases. Phase 1 examined the current regulatory framework and identified those areas of utility performance that are deserving of further focus in Phase 2. In May 2019, the PUC issued an order concluding Phase 1, which established guiding principles, regulatory goals, and priority outcomes to guide the development of the PBR mechanisms in Phase 2. The PUC identified the following guiding principles, which will inform the development of the PBR framework: 1) a customer-centric approach, 2) administrative efficiency to reduce regulatory burdens; and 3) utility financial integrity to maintain the utility’s financial health. Priority goals (and priority outcomes) identified by the PUC were: enhance customer experience (affordability, reliability, interconnection experience, and customer engagement), improve utility performance (cost control, distributed energy resources (DER) asset effectiveness, and grid investment efficiency), and advance societal outcomes (capital formation, customer equity, greenhouse gas reduction, electrification of transportation, and resilience).
The order also outlined the PUC’s vision of a comprehensive PBR framework that would be further developed in Phase 2. The framework envisioned would include 1) a five-year multi-year rate plan with an index-driven annual revenue adjustment based on an inflation factor, an X-factor which would encompass productivity, a Z-factor to account for exceptional circumstances not in the utility’s control and a customer dividend, 2) a symmetric earnings sharing mechanism that would help ensure that utility earnings do not excessively benefit or suffer from external factors outside of utility control or unforeseen results of regulatory mechanisms, 3) off-ramp provisions, 4) continuation of the RBA, MPIR adjustment mechanism, the pension and OPEB tracking mechanism, and other recovery mechanisms, and 5) a portfolio of performance incentive mechanisms for customer engagement and DER asset effectiveness (rewards only), and interconnection experience (both rewards and penalties), in addition to scorecards to track progress against targeted performance levels, shared savings mechanisms to apportion savings to the utility and customers, and reported metrics.
The Phase 2 schedule includes working group meetings through the first half of 2020, followed by statements of positions, evidentiary hearing in October 2020 and anticipated decision in December 2020.
Most recent rate proceedings.
Hawaiian Electric 2020 test year rate case. On August 21, 2019, Hawaiian Electric filed an application for a general rate increase for its 2020 test year rate case, requesting an increase of $77.6 million over revenues at current effective rates (for a 4.1% increase in revenues), based on an 8% rate of return (which incorporates a ROACE of 10.5%). In September 2019, the PUC issued an order ruling that Hawaiian Electric’s application was complete as of the date of filing. It also ordered that an outside consultant, selected by the PUC, would independently conduct a management audit of Hawaiian Electric. The PUC expects the audit to conclude in May 2020. 
Maui Electric consolidated 2015 and 2018 test year rate cases. On August 9, 2018, the PUC approved an interim rate increase based on a stipulated settlement, that included the effects of the 2017 Tax Act, between Maui Electric and the Consumer Advocate. On March 18, 2019, the PUC issued its D&O that approved, with certain modifications, the stipulated settlement, which addressed all issues in the rate case.
Revised tariffs reflecting a final increase of $12.2 million over revenues at current effective rates based on the approved 7.43% rate of return (which incorporates a ROACE of 9.5% and a capital structure that includes a 57% common equity capitalization) on a $454 million rate base became effective on June 1, 2019. Maui Electric’s ECRC tariff, resulting in the recovery of all fuel and purchased energy through the ECRC and the removal of the recovery of these costs from base rates, became effective on September 1, 2019. The ECRC reflects a 98%/2% fossil fuel generation cost risk-sharing split between ratepayers and Maui Electric, with an annual maximum increase or decrease to revenues to $0.6 million for the utility.
Hawaii Electric Light 2019 test year rate case. On December 14, 2018, Hawaii Electric Light filed an application for a general rate increase for its 2019 test year rate case, requesting an increase of $13.4 million over revenues at current effective rates (for a 3.4% increase in revenues), based on an 8.3% rate of return (which incorporates a ROACE of 10.5%).
On September 24, 2019, Hawaii Electric Light and the Consumer Advocate (Parties) filed a Stipulated Partial Settlement Letter which documented agreements reached with the Consumer Advocate on all of the issues in the proceeding except for the ROACE, capital structure, amortization period for the state investment tax credit (ITC), and symmetric or asymmetric automatic annual target heat rate adjustment. On October 1, 2019, the Parties filed separate statements of probable entitlement, proposing the amount of interim revenue increase according to their respective proposed ROACE based on the scenario which excludes Hu Honua from the 2019 test year revenue requirement. In Hawaii Electric Light’s Statement of Probable Entitlement, the utility requested the PUC to issue an interim D&O by November 13, 2019, approving the interim rate increase of $2.79 million over revenues at current effective rates, based on a ROACE of 9.50% for interim only, an adjusted capitalization structure consisting of a 58% equity ratio, a 40-year amortization of state ITC and the proposed tariff changes to be effective on November 21, 2019. Hawaii Electric Light requested final increase in revenues be based on a ROACE of 10.50% for its 2019 test year.
Hawaii Electric Light filed rebuttal testimonies on October 9, 2019, which addressed the unresolved issues between Hawaiian Electric and the Consumer Advocate and responded to the Participants’ proposals and comments made in their direct testimonies. The evidentiary hearing is scheduled during the week of December 16, 2019.
Condensed consolidating financial information. Condensed consolidating financial information for Hawaiian Electric and its subsidiaries are presented for the three and nine month periods ended September 30, 2019 and 2018, and as of September 30, 2019 and December 31, 2018.
Hawaiian Electric 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, and (b) under their respective private placement note agreements and the Hawaii Electric Light notes and Maui Electric notes issued thereunder. 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
Condensed Consolidating Statement of Income
Three months ended September 30, 2019

(in thousands)
 
Hawaiian Electric
 
Hawaii Electric Light
 
Maui Electric
 
Other subsidiaries
 
Consolidating adjustments
 
Hawaiian Electric
Consolidated
Revenues
 
$
491,723

 
93,576

 
103,236

 
—

 
(205
)
 
$
688,330

Expenses
 
 
 
 
 
 
 
 
 
 
 
 
Fuel oil
 
139,747

 
21,427

 
37,919

 
—

 
—

 
199,093

Purchased power
 
135,447

 
24,342

 
15,248

 
—

 
—

 
175,037

Other operation and maintenance
 
80,582

 
19,868

 
23,965

 
—

 
—

 
124,415

Depreciation
 
35,867

 
10,453

 
7,615

 
—

 
—

 
53,935

Taxes, other than income taxes
 
46,433

 
8,359

 
9,265

 
—

 
—

 
64,057

   Total expenses
 
438,076

 
84,449

 
94,012

 
—

 
—

 
616,537

Operating income
 
53,647

 
9,127

 
9,224

 
—

 
(205
)
 
71,793

Allowance for equity funds used during construction
 
2,685

 
229

 
336

 
—

 
—

 
3,250

Equity in earnings of subsidiaries
 
11,048

 
—

 
—

 
—

 
(11,048
)
 
—

Retirement defined benefits expense—other than service costs
 
(582
)
 
(105
)
 
(36
)
 
—

 
—

 
(723
)
Interest expense and other charges, net
 
(12,771
)
 
(2,524
)
 
(2,339
)
 
—

 
205

 
(17,429
)
Allowance for borrowed funds used during construction
 
990

 
95

 
123

 
—

 
—

 
1,208

Income before income taxes
 
55,017

 
6,822

 
7,308

 
—

 
(11,048
)
 
58,099

Income taxes
 
7,968

 
1,420

 
1,434

 
—

 
—

 
10,822

Net income
 
47,049

 
5,402

 
5,874

 
—

 
(11,048
)
 
47,277

Preferred stock dividends of subsidiaries
 
—

 
133

 
95

 
—

 
—

 
228

Net income attributable to Hawaiian Electric
 
47,049

 
5,269

 
5,779

 
—

 
(11,048
)
 
47,049

Preferred stock dividends of Hawaiian Electric
 
270

 
—

 
—

 
—

 
—

 
270

Net income for common stock
 
$
46,779

 
5,269

 
5,779

 
—

 
(11,048
)
 
$
46,779



Hawaiian Electric Company, Inc. and Subsidiaries
Condensed Consolidating Statement of Comprehensive Income
Three months ended September 30, 2019

(in thousands)
 
Hawaiian Electric
 
Hawaii Electric Light
 
Maui Electric
 
Other
subsidiaries
 
Consolidating
adjustments
 
Hawaiian Electric
Consolidated
Net income for common stock
 
$
46,779

 
5,269

 
5,779

 
—

 
(11,048
)
 
$
46,779

Other comprehensive income (loss), net of taxes:
 
 

 
 

 
 

 
 

 
 

 
 

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
 
2,519

 
387

 
309

 
—

 
(696
)
 
2,519

Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes
 
(2,493
)
 
(387
)
 
(309
)
 
—

 
696

 
(2,493
)
Other comprehensive income, net of taxes
 
26

 
—

 
—

 
—

 
—

 
26

Comprehensive income attributable to common shareholder
 
$
46,805

 
5,269

 
5,779

 
—

 
(11,048
)
 
$
46,805



Hawaiian Electric Company, Inc. and Subsidiaries
Condensed Consolidating Statement of Income
Three months ended September 30, 2018

(in thousands)
 
Hawaiian Electric
 
Hawaii Electric Light
 
Maui Electric
 
Other subsidiaries
 
Consolidating adjustments
 
Hawaiian Electric
Consolidated
Revenues
 
$
488,210

 
98,981

 
100,273

 
—

 
(55
)
 
$
687,409

Expenses
 
 
 
 
 
 
 
 
 
 
 
 
Fuel oil
 
141,357

 
26,429

 
38,765

 
—

 
—

 
206,551

Purchased power
 
138,135

 
24,091

 
15,364

 
—

 
—

 
177,590

Other operation and maintenance
 
78,988

 
15,253

 
19,312

 
—

 
—

 
113,553

Depreciation
 
34,282

 
10,072

 
6,629

 
—

 
—

 
50,983

Taxes, other than income taxes
 
46,096

 
9,215

 
9,385

 
—

 
—

 
64,696

   Total expenses
 
438,858

 
85,060

 
89,455

 
—

 
—

 
613,373

Operating income
 
49,352

 
13,921

 
10,818

 
—

 
(55
)
 
74,036

Allowance for equity funds used during construction
 
1,648

 
39

 
275

 
—

 
—

 
1,962

Equity in earnings of subsidiaries
 
16,636

 
—

 
—

 
—

 
(16,636
)
 
—

Retirement defined benefits expense—other than service costs
 
(475
)
 
(104
)
 
(103
)
 
—

 
—

 
(682
)
Interest expense and other charges, net
 
(13,542
)
 
(3,026
)
 
(2,455
)
 
—

 
55

 
(18,968
)
Allowance for borrowed funds used during construction
 
810

 
49

 
147

 
—

 
—

 
1,006

Income before income taxes
 
54,429

 
10,879

 
8,682

 
—

 
(16,636
)
 
57,354

Income taxes
 
4,447

 
1,571

 
1,126

 
—

 
—

 
7,144

Net income
 
49,982

 
9,308

 
7,556

 
—

 
(16,636
)
 
50,210

Preferred stock dividends of subsidiaries
 
—

 
133

 
95

 
—

 
—

 
228

Net income attributable to Hawaiian Electric
 
49,982

 
9,175

 
7,461

 
—

 
(16,636
)
 
49,982

Preferred stock dividends of Hawaiian Electric
 
270

 
—

 
—

 
—

 
—

 
270

Net income for common stock
 
$
49,712

 
9,175

 
7,461

 
—

 
(16,636
)
 
$
49,712



Hawaiian Electric Company, Inc. and Subsidiaries
Condensed Consolidating Statement of Comprehensive Income
Three months ended September 30, 2018

(in thousands)
 
Hawaiian Electric
 
Hawaii Electric Light
 
Maui Electric
 
Other
subsidiaries
 
Consolidating
adjustments
 
Hawaiian Electric
Consolidated
Net income for common stock
 
$
49,712

 
9,175

 
7,461

 
—

 
(16,636
)
 
$
49,712

Other comprehensive income (loss), net of taxes:
 
 

 
 

 
 

 
 

 
 

 
 

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
 
4,753

 
705

 
606

 
—

 
(1,311
)
 
4,753

Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes
 
(4,725
)
 
(705
)
 
(606
)
 
—

 
1,311

 
(4,725
)
Other comprehensive income, net of taxes
 
28

 
—

 
—

 
—

 
—

 
28

Comprehensive income attributable to common shareholder
 
$
49,740

 
9,175

 
7,461

 
—

 
(16,636
)
 
$
49,740



Hawaiian Electric Company, Inc. and Subsidiaries
Condensed Consolidating Statement of Income
Nine months ended September 30, 2019

(in thousands)
 
Hawaiian Electric
 
Hawaii Electric Light
 
Maui Electric
 
Other subsidiaries
 
Consolidating adjustments
 
Hawaiian Electric
Consolidated
Revenues
 
$
1,347,412

 
270,697

 
282,939

 
—

 
(439
)
 
$
1,900,609

Expenses
 
 
 
 
 
 
 
 
 
 
 
 
Fuel oil
 
374,100

 
62,210

 
105,012

 
—

 
—

 
541,322

Purchased power
 
367,541

 
67,548

 
37,247

 
—

 
—

 
472,336

Other operation and maintenance
 
240,311

 
56,635

 
64,859

 
—

 
—

 
361,805

Depreciation
 
107,602

 
31,359

 
22,834

 
—

 
—

 
161,795

Taxes, other than income taxes
 
127,654

 
25,170

 
26,480

 
—

 
—

 
179,304

   Total expenses
 
1,217,208

 
242,922

 
256,432

 
—

 
—

 
1,716,562

Operating income
 
130,204

 
27,775

 
26,507

 
—

 
(439
)
 
184,047

Allowance for equity funds used during construction
 
7,746

 
579

 
1,010

 
—

 
—

 
9,335

Equity in earnings of subsidiaries
 
30,983

 
—

 
—

 
—

 
(30,983
)
 
—

Retirement defined benefits expense—other than service costs
 
(1,716
)
 
(316
)
 
(95
)
 
—

 
—

 
(2,127
)
Interest expense and other charges, net
 
(38,961
)
 
(8,345
)
 
(7,078
)
 
—

 
439

 
(53,945
)
Allowance for borrowed funds used during construction
 
2,854

 
242

 
369

 
—

 
—

 
3,465

Income before income taxes
 
131,110

 
19,935

 
20,713

 
—

 
(30,983
)
 
140,775

Income taxes
 
18,821

 
4,431

 
4,548

 
—

 
—

 
27,800

Net income
 
112,289

 
15,504

 
16,165

 
—

 
(30,983
)
 
112,975

Preferred stock dividends of subsidiaries
 
—

 
400

 
286

 
—

 
—

 
686

Net income attributable to Hawaiian Electric
 
112,289

 
15,104

 
15,879

 
—

 
(30,983
)
 
112,289

Preferred stock dividends of Hawaiian Electric
 
810

 
—

 
—

 
—

 
—

 
810

Net income for common stock
 
$
111,479

 
15,104

 
15,879

 
—

 
(30,983
)
 
$
111,479



Hawaiian Electric Company, Inc. and Subsidiaries
Condensed Consolidating Statement of Comprehensive Income
Nine months ended September 30, 2019

(in thousands)
 
Hawaiian Electric
 
Hawaii Electric Light
 
Maui Electric
 
Other
subsidiaries
 
Consolidating
adjustments
 
Hawaiian Electric
Consolidated
Net income for common stock
 
$
111,479

 
15,104

 
15,879

 
—

 
(30,983
)
 
$
111,479

Other comprehensive income (loss), net of taxes:
 
 

 
 

 
 

 
 

 
 

 
 

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
 
7,162

 
1,091

 
887

 
—

 
(1,978
)
 
7,162

Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes
 
(7,089
)
 
(1,089
)
 
(887
)
 
—

 
1,976

 
(7,089
)
Other comprehensive income, net of taxes
 
73

 
2

 
—

 
—

 
(2
)
 
73

Comprehensive income attributable to common shareholder
 
$
111,552

 
15,106

 
15,879

 
—

 
(30,985
)
 
$
111,552


Hawaiian Electric Company, Inc. and Subsidiaries
Condensed Consolidating Statement of Income
Nine months ended September 30, 2018

(in thousands)
 
Hawaiian Electric
 
Hawaii Electric Light
 
Maui Electric
 
Other subsidiaries
 
Consolidating adjustments
 
Hawaiian Electric
Consolidated
Revenues
 
$
1,321,089

 
276,462

 
268,567

 
—

 
(156
)
 
$
1,865,962

Expenses
 
 
 
 
 
 
 
 
 
 
 
 
Fuel oil
 
375,862

 
64,348

 
105,026

 
—

 
—

 
545,236

Purchased power
 
367,317

 
72,589

 
38,332

 
—

 
—

 
478,238

Other operation and maintenance
 
228,773

 
50,366

 
54,666

 
—

 
—

 
333,805

Depreciation
 
103,112

 
30,165

 
18,533

 
—

 
—

 
151,810

Taxes, other than income taxes
 
125,214

 
25,835

 
25,275

 
—

 
—

 
176,324

   Total expenses
 
1,200,278

 
243,303

 
241,832

 
—

 
—

 
1,685,413

Operating income
 
120,811

 
33,159

 
26,735

 
—

 
(156
)
 
180,549

Allowance for equity funds used during construction
 
7,123

 
274

 
842

 
—

 
—

 
8,239

Equity in earnings of subsidiaries
 
35,041

 
—

 
—

 
—

 
(35,041
)
 
—

Retirement defined benefits expense—other than service costs
 
(2,091
)
 
(312
)
 
(531
)
 
—

 
—

 
(2,934
)
Interest expense and other charges, net
 
(38,967
)
 
(8,855
)
 
(7,156
)
 
—

 
156

 
(54,822
)
Allowance for borrowed funds used during construction
 
3,198

 
190

 
427

 
—

 
—

 
3,815

Income before income taxes
 
125,115

 
24,456

 
20,317

 
—

 
(35,041
)
 
134,847

Income taxes
 
15,949

 
5,017

 
4,029

 
—

 
—

 
24,995

Net income
 
109,166

 
19,439

 
16,288

 
—

 
(35,041
)
 
109,852

Preferred stock dividends of subsidiaries
 
—

 
400

 
286

 
—

 
—

 
686

Net income attributable to Hawaiian Electric
 
109,166

 
19,039

 
16,002

 
—

 
(35,041
)
 
109,166

Preferred stock dividends of Hawaiian Electric
 
810

 
—

 
—

 
—

 
—

 
810

Net income for common stock
 
$
108,356

 
19,039

 
16,002

 
—

 
(35,041
)
 
$
108,356



Hawaiian Electric Company, Inc. and Subsidiaries
Condensed Consolidating Statement of Comprehensive Income
Nine months ended September 30, 2018

(in thousands)
 
Hawaiian Electric
 
Hawaii Electric Light
 
Maui Electric
 
Other
subsidiaries 
 
Consolidating
adjustments
 
Hawaiian Electric
Consolidated
Net income for common stock
 
$
108,356

 
19,039

 
16,002

 
—

 
(35,041
)
 
$
108,356

Other comprehensive income (loss), net of taxes:
 
 

 
 

 
 

 
 

 
 

 
 

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
 
14,259

 
2,114

 
1,817

 
—

 
(3,931
)
 
14,259

Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes
 
(14,174
)
 
(2,113
)
 
(1,817
)
 
—

 
3,930

 
(14,174
)
Other comprehensive income, net of taxes
 
85

 
1

 
—

 
—

 
(1
)
 
85

Comprehensive income attributable to common shareholder
 
$
108,441

 
19,040

 
16,002

 
—

 
(35,042
)
 
$
108,441


Hawaiian Electric Company, Inc. and Subsidiaries
Condensed Consolidating Balance Sheet
September 30, 2019
(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
 
$
42,112

 
5,606

 
3,612

 
—

 
—

 
$
51,330

Plant and equipment
 
4,676,163

 
1,282,065

 
1,139,058

 
—

 
—

 
7,097,286

Less accumulated depreciation
 
(1,595,962
)
 
(569,878
)
 
(520,548
)
 
—

 
—

 
(2,686,388
)
Construction in progress
 
185,022

 
17,219

 
24,315

 
—

 
—

 
226,556

Utility property, plant and equipment, net
 
3,307,335

 
735,012

 
646,437

 
—

 
—

 
4,688,784

Nonutility property, plant and equipment, less accumulated depreciation
 
5,311

 
115

 
1,532

 
—

 
—

 
6,958

Total property, plant and equipment, net
 
3,312,646

 
735,127

 
647,969

 
—

 
—

 
4,695,742

Investment in wholly owned subsidiaries, at equity
 
588,886

 
—

 
—

 
—

 
(588,886
)
 
—

Current assets
 
 

 
 

 
 

 
 

 
 

 
 

Cash and cash equivalents
 
22,073

 
5,003

 
5,330

 
101

 
—

 
32,507

Advances to affiliates
 
22,200

 
15,000

 
—

 
—

 
(37,200
)
 
—

Customer accounts receivable, net
 
111,171

 
25,676

 
26,246

 
—

 
—

 
163,093

Accrued unbilled revenues, net
 
90,015

 
15,880

 
17,925

 
—

 
—

 
123,820

Other accounts receivable, net
 
10,994

 
1,516

 
2,056

 
—

 
(9,948
)
 
4,618

Fuel oil stock, at average cost
 
62,645

 
10,694

 
11,204

 
—

 
—

 
84,543

Materials and supplies, at average cost
 
33,747

 
10,170

 
16,893

 
—

 
—

 
60,810

Prepayments and other
 
38,439

 
4,622

 
4,655

 
—

 
(1,395
)
 
46,321

Regulatory assets
 
29,410

 
1,684

 
1,857

 
—

 
—

 
32,951

Total current assets
 
420,694

 
90,245

 
86,166

 
101

 
(48,543
)
 
548,663

Other long-term assets
 
 

 
 

 
 

 
 

 
 

 
 

Operating lease right-of-use assets
 
190,300

 
1,560

 
394

 
—

 
—

 
192,254

Regulatory assets
 
502,254

 
112,900

 
101,162

 
—

 
—

 
716,316

Other
 
72,386

 
17,096

 
18,511

 
—

 
—

 
107,993

Total other long-term assets
 
764,940

 
131,556

 
120,067

 
—

 
—

 
1,016,563

Total assets
 
$
5,087,166

 
956,928

 
854,202

 
101

 
(637,429
)
 
$
6,260,968

Capitalization and liabilities
 
 

 
 

 
 

 
 

 
 

 
 

Capitalization
 
 

 
 

 
 

 
 

 
 

 
 

Common stock equity
 
$
1,993,254

 
303,345

 
285,440

 
101

 
(588,886
)
 
$
1,993,254

Cumulative preferred stock—not subject to mandatory redemption
 
22,293

 
7,000

 
5,000

 
—

 
—

 
34,293

Long-term debt, net
 
937,211

 
203,952

 
181,092

 
—

 
—

 
1,322,255

Total capitalization
 
2,952,758

 
514,297

 
471,532

 
101

 
(588,886
)
 
3,349,802

Current liabilities
 
 

 
 

 
 

 
 

 
 

 
 

Current portion of operating lease liabilities
 
62,634

 
94

 
30

 
—

 
—

 
62,758

Current portion of long-term debt
 
61,976

 
13,992

 
19,997

 
—

 
—

 
95,965

Short-term borrowings from non-affiliates
 
112,353

 
—

 
—

 
—

 
—

 
112,353

Short-term borrowings from affiliate
 
15,000

 
—

 
22,200

 
—

 
(37,200
)
 
—

Accounts payable
 
113,544

 
17,654

 
21,364

 
—

 
—

 
152,562

Interest and preferred dividends payable
 
19,699

 
3,695

 
4,215

 
—

 
(69
)
 
27,540

Taxes accrued
 
143,156

 
30,874

 
32,204

 
—

 
(1,395
)
 
204,839

Regulatory liabilities
 
9,255

 
5,836

 
4,425

 
—

 
—

 
19,516

Other
 
51,943

 
10,187

 
15,648

 
—

 
(9,879
)
 
67,899

Total current liabilities
 
589,560

 
82,332

 
120,083

 
—

 
(48,543
)
 
743,432

Deferred credits and other liabilities
 
 

 
 

 
 

 
 

 
 

 
 

Operating lease liabilities
 
126,979

 
1,466

 
367

 
—

 
—

 
128,812

Deferred income taxes
 
282,336

 
53,939

 
56,286

 
—

 
—

 
392,561

Regulatory liabilities
 
663,414

 
181,472

 
99,338

 
—

 
—

 
944,224

Unamortized tax credits
 
60,095

 
16,054

 
14,571

 
—

 
—

 
90,720

Defined benefit pension and other postretirement benefit plans liability
 
359,420

 
71,112

 
69,654

 
—

 
—

 
500,186

Other
 
52,604

 
36,256

 
22,371

 
—

 
—

 
111,231

Total deferred credits and other liabilities
 
1,544,848

 
360,299

 
262,587

 
—

 
—

 
2,167,734

Total capitalization and liabilities
 
$
5,087,166

 
956,928

 
854,202

 
101

 
(637,429
)
 
$
6,260,968


Hawaiian Electric Company, Inc. and Subsidiaries
Condensed Consolidating Balance Sheet
December 31, 2018
(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
 
$
40,449

 
5,606

 
3,612

 
—

 
—

 
$
49,667

Plant and equipment
 
4,456,090

 
1,259,553

 
1,094,028

 
—

 
—

 
6,809,671

Less accumulated depreciation
 
(1,523,861
)
 
(547,848
)
 
(505,633
)
 
—

 
—

 
(2,577,342
)
Construction in progress
 
193,677

 
8,781

 
30,687

 
—

 
—

 
233,145

Utility property, plant and equipment, net
 
3,166,355

 
726,092

 
622,694

 
—

 
—

 
4,515,141

Nonutility property, plant and equipment, less accumulated depreciation
 
5,314

 
115

 
1,532

 
—

 
—

 
6,961

Total property, plant and equipment, net
 
3,171,669

 
726,207

 
624,226

 
—

 
—

 
4,522,102

Investment in wholly owned subsidiaries, at equity
 
576,838

 
—

 
—

 
—

 
(576,838
)
 
—

Current assets
 
 

 
 

 
 

 
 

 
 

 
 

Cash and cash equivalents
 
16,732

 
15,623

 
3,421

 
101

 
—

 
35,877

Customer accounts receivable, net
 
125,960

 
26,483

 
25,453

 
—

 
—

 
177,896

Accrued unbilled revenues, net
 
88,060

 
17,051

 
16,627

 
—

 
—

 
121,738

Other accounts receivable, net
 
21,962

 
3,131

 
3,033

 
—

 
(21,911
)
 
6,215

Fuel oil stock, at average cost
 
54,262

 
11,027

 
14,646

 
—

 
—

 
79,935

Materials and supplies, at average cost
 
30,291

 
7,155

 
17,758

 
—

 
—

 
55,204

Prepayments and other
 
23,214

 
5,212

 
3,692

 
—

 
—

 
32,118

Regulatory assets
 
60,093

 
3,177

 
7,746

 
—

 
—

 
71,016

Total current assets
 
420,574

 
88,859

 
92,376

 
101

 
(21,911
)
 
579,999

Other long-term assets
 
 

 
 

 
 

 
 

 
 

 
 

Regulatory assets
 
537,708

 
120,658

 
104,044

 
—

 
—

 
762,410

Other
 
69,749

 
15,944

 
17,299

 
—

 
—

 
102,992

Total other long-term assets
 
607,457

 
136,602

 
121,343

 
—

 
—

 
865,402

Total assets
 
$
4,776,538

 
951,668

 
837,945

 
101

 
(598,749
)
 
$
5,967,503

Capitalization and liabilities
 
 

 
 

 
 

 
 

 
 

 
 

Capitalization
 
 

 
 

 
 

 
 

 
 

 
 

Common stock equity
 
$
1,957,641

 
295,874

 
280,863

 
101

 
(576,838
)
 
$
1,957,641

Cumulative preferred stock—not subject to mandatory redemption
 
22,293

 
7,000

 
5,000

 
—

 
—

 
34,293

Long-term debt, net
 
1,000,137

 
217,749

 
200,916

 
—

 
—

 
1,418,802

Total capitalization
 
2,980,071

 
520,623

 
486,779

 
101

 
(576,838
)
 
3,410,736

Current liabilities
 
 

 
 

 
 

 
 

 
 

 
 
Short-term borrowings-non-affiliate
 
25,000

 
—

 
—

 
—

 
—

 
25,000

Accounts payable
 
126,384

 
20,045

 
25,362

 
—

 
—

 
171,791

Interest and preferred dividends payable
 
16,203

 
4,203

 
2,841

 
—

 
(32
)
 
23,215

Taxes accrued
 
164,747

 
34,128

 
34,458

 
—

 
—

 
233,333

Regulatory liabilities
 
7,699

 
4,872

 
5,406

 
—

 
—

 
17,977

Other
 
46,391

 
15,077

 
20,414

 
—

 
(21,879
)
 
60,003

Total current liabilities
 
386,424

 
78,325

 
88,481

 
—

 
(21,911
)
 
531,319

Deferred credits and other liabilities
 
 

 
 

 
 

 
 

 
 

 
 
Deferred income taxes
 
271,438

 
54,936

 
56,823

 
—

 
—

 
383,197

Regulatory liabilities
 
657,210

 
176,101

 
98,948

 
—

 
—

 
932,259

Unamortized tax credits
 
60,271

 
16,217

 
15,034

 
—

 
—

 
91,522

Defined benefit pension and other postretirement benefit plans liability
 
359,174

 
73,147

 
71,338

 
—

 
—

 
503,659

Other
 
61,950

 
32,319

 
20,542

 
—

 
—

 
114,811

Total deferred credits and other liabilities
 
1,410,043

 
352,720

 
262,685

 
—

 
—

 
2,025,448

Total capitalization and liabilities
 
$
4,776,538

 
951,668

 
837,945

 
101

 
(598,749
)
 
$
5,967,503


Hawaiian Electric Company, Inc. and Subsidiaries
Condensed Consolidating Statement of Changes in Common Stock Equity
Nine months ended September 30, 2019
(in thousands)
 
Hawaiian Electric
 
Hawaii Electric Light
 
Maui Electric
 
Other
subsidiaries
 
Consolidating
adjustments
 
Hawaiian Electric
Consolidated
Balance, December 31, 2018
 
$
1,957,641

 
295,874

 
280,863

 
101

 
(576,838
)
 
$
1,957,641

Net income for common stock
 
111,479

 
15,104

 
15,879

 
—

 
(30,983
)
 
111,479

Other comprehensive income, net of taxes
 
73

 
2

 
—

 
—

 
(2
)
 
73

Common stock dividends
 
(75,939
)
 
(7,635
)
 
(11,301
)
 
—

 
18,936

 
(75,939
)
Common stock issuance expenses
 
—

 
—

 
(1
)
 
—

 
1

 
—

Balance, September 30, 2019
 
$
1,993,254

 
303,345

 
285,440

 
101

 
(588,886
)
 
$
1,993,254


 
Hawaiian Electric Company, Inc. and Subsidiaries
Condensed Consolidating Statement of Changes in Common Stock Equity
Nine months ended September 30, 2018  
(in thousands)
 
Hawaiian Electric
 
Hawaii Electric Light
 
Maui Electric
 
Other
subsidiaries
 
Consolidating
adjustments
 
Hawaiian Electric
Consolidated
Balance, December 31, 2017
 
$
1,845,283

 
286,647

 
270,265

 
101

 
(557,013
)
 
$
1,845,283

Net income for common stock
 
108,356

 
19,039

 
16,002

 
—

 
(35,041
)
 
108,356

Other comprehensive income, net of taxes
 
85

 
1

 
—

 
—

 
(1
)
 
85

Common stock dividends
 
(77,479
)
 
(11,467
)
 
(9,014
)
 
—

 
20,481

 
(77,479
)
Common stock issuance expenses
 
(8
)
 
—

 
—

 
—

 
—

 
(8
)
Balance, September 30, 2018
 
$
1,876,237

 
294,220

 
277,253

 
101

 
(571,574
)
 
$
1,876,237


Hawaiian Electric Company, Inc. and Subsidiaries
Condensed Consolidating Statement of Cash Flows
Nine months ended September 30, 2019
(in thousands)
 
Hawaiian Electric
 
Hawaii Electric Light
 
Maui Electric
 
Other
subsidiaries
 
Consolidating
adjustments
 
Hawaiian Electric
Consolidated
Net cash provided by operating activities
 
$
223,733

 
41,694

 
36,126

 
—

 
(18,935
)
 
$
282,618

Cash flows from investing activities
 
 

 
 

 
 

 
 

 
 

 
 

Capital expenditures
 
(223,803
)
 
(29,119
)
 
(44,885
)
 
—

 
—

 
(297,807
)
Advances to affiliates
 
(22,200
)
 
(15,000
)
 
—

 
—

 
37,200

 
—

Other
 
2,975

 
(283
)
 
(30
)
 
—

 
—

 
2,662

Net cash used in investing activities
 
(243,028
)
 
(44,402
)
 
(44,915
)
 
—

 
37,200

 
(295,145
)
Cash flows from financing activities
 
 

 
 

 
 

 
 

 
 

 
 

Common stock dividends
 
(75,939
)
 
(7,635
)
 
(11,301
)
 
—

 
18,936

 
(75,939
)
Preferred stock dividends of Hawaiian Electric and subsidiaries
 
(810
)
 
(400
)
 
(286
)
 
—

 
—

 
(1,496
)
Proceeds from issuance of short-term debt
 
25,000

 
—

 
—

 
—

 
—

 
25,000

Proceeds from issuance of long-term debt
 
120,000

 
70,000

 
10,000

 
—

 
—

 
200,000

Repayment of long-term debt and funds transferred for redemption of special purpose revenue bonds
 
(121,546
)
 
(70,000
)
 
(10,000
)
 
—

 
—

 
(201,546
)
Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less
 
77,353

 
—

 
22,200

 
—

 
(37,200
)
 
62,353

Other
 
578

 
123

 
85

 
—

 
(1
)
 
785

Net cash provided by financing activities
 
24,636

 
(7,912
)
 
10,698

 
—

 
(18,265
)
 
9,157

Net increase (decrease) in cash and cash equivalents
 
5,341

 
(10,620
)
 
1,909

 
—

 
—

 
(3,370
)
Cash and cash equivalents, beginning of period
 
16,732

 
15,623

 
3,421

 
101

 
—

 
35,877

Cash and cash equivalents, end of period
 
$
22,073

 
5,003

 
5,330

 
101

 
—

 
$
32,507


Hawaiian Electric Company, Inc. and Subsidiaries
Condensed Consolidating Statement of Cash Flows
Nine months ended September 30, 2018
(in thousands)
 
Hawaiian Electric
 
Hawaii Electric Light
 
Maui Electric
 
Other
subsidiaries
 
Consolidating
adjustments
 
Hawaiian Electric
Consolidated
Net cash provided by operating activities
 
$
159,876

 
35,203

 
19,455

 
—

 
(20,812
)
 
$
193,722

Cash flows from investing activities
 
 

 
 

 
 

 
 

 
 

 
 

Capital expenditures
 
(225,907
)
 
(40,457
)
 
(44,005
)
 
—

 
—

 
(310,369
)
Other
 
4,518

 
1,177

 
3,785

 
—

 
331

 
9,811

Advances (to) from affiliates
 
(2,000
)
 
—

 
12,000

 
—

 
(10,000
)
 
—

Net cash used in investing activities
 
(223,389
)
 
(39,280
)
 
(28,220
)
 
—

 
(9,669
)
 
(300,558
)
Cash flows from financing activities
 
 

 
 

 
 

 
 

 
 

 
 
Common stock dividends
 
(77,479
)
 
(11,467
)
 
(9,014
)
 
—

 
20,481

 
(77,479
)
Preferred stock dividends of Hawaiian Electric and subsidiaries
 
(810
)
 
(400
)
 
(286
)
 
—

 
—

 
(1,496
)
Proceeds from issuance of long-term debt
 
75,000

 
15,000

 
10,000

 
—

 
—

 
100,000

Net increase in short-term borrowings from non-affiliates and affiliate with original maturities of three months or less
 
68,914

 
—

 
2,000

 
—

 
10,000

 
80,914

Other
 
(304
)
 
(54
)
 
(38
)
 
—

 
—

 
(396
)
Net cash provided by financing activities
 
65,321

 
3,079

 
2,662

 
—

 
30,481

 
101,543

Net increase (decrease) in cash and cash equivalents
 
1,808

 
(998
)
 
(6,103
)
 
—

 
—

 
(5,293
)
Cash and cash equivalents, beginning of period
 
2,059

 
4,025

 
6,332

 
101

 
—

 
12,517

Cash and cash equivalents, end of period
 
$
3,867

 
3,027

 
229

 
101

 
—

 
$
7,224