Hawaii Gov. Josh Green was unsuccessful in his attempts to convince lawmakers to consider important legislation that would have provided support to struggling Hawaii Electric Co. The proposed Senate Bill 2922, introduced by Senate Commerce and Consumer Protection Chair Jarrett Keohokalole, aimed to allow HECO to issue up to $2.5 billion in low-interest bonds. However, Keohokalole deferred the bill indefinitely on April 25, effectively halting any progress on the legislation for this session.
HECO has been facing financial challenges since a devastating wildfire in Lahaina on Maui that resulted in the loss of 101 lives. Following the tragic event, the utility has been inundated with numerous lawsuits, causing its bond ratings to plummet to junk status. The dire financial situation of HECO has made it difficult for the company to access necessary financing for its operations and essential investments to ensure public safety and reliable service.
Despite Governor Green’s efforts to revive the legislation and engage in discussions with lawmakers, the attempts ultimately failed. The governor expressed disappointment over the outcome but reaffirmed the commitment to developing wildfire safety plans for communities at risk. The failure to pass the bill during this session has led to discussions about the possibility of reintroducing it when the next session commences in January 2025.
With the bond measure off the table for now, HECO is focusing on alternative strategies to secure funding for its operations. The company is seeking approval from the Hawaii Public Utilities Commission to utilize money owed by customers and other parties as collateral to establish lines of credit. This approach is crucial for HECO to maintain its financial stability and ensure the continuity of vital services.
The inability to advance the legislation supporting Hawaii Electric Co. highlights the complex challenges faced by the utility in the aftermath of the devastating wildfire. Governor Green’s efforts to garner legislative support ultimately fell short, underscoring the need for comprehensive solutions to address the financial and operational issues confronting HECO. As discussions continue, it remains imperative for all stakeholders to collaborate effectively in securing the future sustainability of Hawaii’s energy landscape.