Hawaiian Electric Stock Surges 40% After Pushing Back on Maui Wildfire Allegations
Hawaiian Electric Industries stock jumps 40% after denying allegations that its power lines caused a fatal wildfire in Maui.
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Posted 8/28/2023, 6:10:00 PM
barrons.com
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Maui County has filed a lawsuit against the Hawaiian Electric Company, claiming that the utility company's negligence in keeping power lines energized during high wind conditions caused the devastating wildfires that killed over 100 people and burned thousands of acres of land.
Maui accuses Hawaiian Electric of causing the Lahaina wildfire.
S&P Global Ratings has downgraded Hawaiian Electric Industries and its subsidiaries due to the company's likely inconsistent access to capital markets following the Maui wildfires, which may result in adverse developments regarding its debt service capacity.
Hawaiian Electric has suspended its dividend and faced legal and cash flow troubles, resulting in a drop in its stock.
The Maui fires that caused the deadliest US wildfire in over a century were exacerbated by bare, uninsulated power lines and poor-quality power poles that did not meet safety standards, leading to a spate of lawsuits against Hawaiian Electric.
Shares of Hawaiian Electric Industries Inc. surged after the company responded to a lawsuit over the Lahaina fires by calling it "factually and legally irresponsible," stating that the fires appeared to be caused by fallen power lines and that the second fire occurred after the lines had been de-energized for over six hours.