Hawaiian Electric settles fire claims as part of $4 billion deal
Maui fires damaged about 2,200 structures, the majority of them homes, killed 102 people
Hawaiian Electric Industries Inc. has agreed to pay almost $2 billion as part of a $4 billion settlement to resolve hundreds of lawsuits over wildfires in Maui that killed dozens of people and destroyed the historic town of Lahaina last year.
The company and other parties reached an "agreement in principle to settle all tort claims" from the disaster, according to a statement by Hawaiian Electric on Friday.
The state of Hawaii, Maui County and telecommunications companies were among the other defendants who signed the comprehensive agreement that will resolve claims on behalf of thousands of homeowners and businesses impacted by one of the worst wildfires in US history. Bloomberg News earlier reported the parties were nearing a settlement.
"Achieving this resolution will allow all parties to move forward without the added challenges and divisiveness of the litigation process," Shelee Kimura, president and chief executive officer of Hawaiian Electric, said in the statement.
The Maui fires damaged or destroyed about 2,200 structures, the majority of them homes, and killed 102 people. The capital cost of the disaster was estimated at $5.5 billion, according to a damage assessment released last year.
Hawaiian Electric had been criticized for not turning off the power before the fires broke out in August 2023, despite warnings that hot, dry, gale-force winds would create critical fire conditions. The disaster has cast a shadow over the company's finances, causing a plunge in its share price and the slashing of its credit ratings to junk.
The utility has acknowledged strong winds downed electric power lines and snapped power poles, causing a small blaze near Lahaina the morning of Aug. 8. However, utility executives said firefighters extinguished that blaze and left the site, where a fire later flared up in the afternoon after it had turned off the power. That series of events was confirmed by a report issued in April by the Hawaii Attorney General.
Maui County had sued Hawaiian Electric, claiming it failed to properly prepare equipment for the threat of wildfires. Hawaiian Electric filed a countersuit blaming the county.