Hawaiian Electric Industries
| Company type | Public |
|---|---|
| Industry | Electric utility |
| Founded | October 13, 1891 in Kingdom of Hawaii |
| Headquarters | Honolulu , United States |
Area served | Hawaii (Oahu, Hawai'i Island, Maui, Lanai, Molokai) |
| Products | Electricity, banking (American Savings Bank), renewable energy (Pacific Current LLC) |
Number of employees | 2000+ |
| Website | www |
Hawaiian Electric Industries, Inc. (HEI) stands as the foremost electricity provider in Hawaii, delivering power to 95% of the state's residents through its utility subsidiaries: Hawaiian Electric Company serving Oahu, Hawai'i Electric Light Company covering The Big Island, and Maui Electric Company operating on Maui, Lanai, and Molokai. In addition to its energy operations, HEI owns American Savings Bank and the renewable energy enterprise Pacific Current LLC.
Together, HECO, HELCO, and MECO employ more than 2,000 individuals. Around 20,000 residents of Hawaii hold shares in HEI. The company’s main offices are located in Honolulu.
Electricity services on the island of Kauai are not provided by HEI; instead, they are managed by the consumer-owned Kauai Island Utility Cooperative.
History
The Hawaiian Electric Company was established on October 13, 1891, during the era of the Kingdom of Hawaii. Within sixteen years, it had extended service to 2,500 customers on Oahu. By 1914, HECO had expanded its reach to rural areas on Oahu’s windward side and began promoting electric appliances. In 1937, construction commenced on its second power station, alongside the expansion of transmission infrastructure across Oahu.
War and statehood
During World War II, HECO’s generating facilities supported U.S. military installations by producing over one million kilowatt-hours daily (approximately a 42 MW average). By the time Hawaii achieved statehood in 1959, full electrification of Oahu had been accomplished. In 1954, HECO inaugurated a 116 MW plant in downtown Honolulu. Subsequently, the Kahe plant on Oahu’s western shore grew to become the state’s largest power station with a capacity of 650 MW.
Island expansion
HECO grew through a series of acquisitions: purchasing Maui Electric Company in 1968; acquiring Hilo Electric Light Company on Hawaii Island in 1970; taking over the Lāna‘i City power facility in 1988; and Molokai Electric Company in 1989. The holding company Hawaiian Electric Industries, Inc. (HEI) was formed in 1983. In 2013, HECO collaborated with Siemens to implement a self-healing grid system across eastern Oʻahu and Waikīkī aimed at boosting reliability.
On December 4, 2014, NextEra Energy proposed a $4.3 billion acquisition of HEI subject to approval by the Hawaii Public Utilities Commission. However, this merger was terminated in July 2016 following regulatory rejection. Planned initiatives to convert HEI’s oil-fired plants to natural gas—using liquefied natural gas sourced from FortisBC in British Columbia—were also discontinued.
On December 24, 2019, HECO unified its operations under the single Hawaiian Electric brand by merging its subsidiaries MECO and HELCO.
Maui wildfires
On August 8, 2023, widespread brush fires ignited throughout Maui, causing extensive destruction in heavily inhabited areas such as Lahaina and Upcountry. The fire in Lahaina resulted in at least 102 fatalities and inflicted estimated damages totaling $5.5 billion. Power lines owned by Hawaiian Electric were knocked down during the event, leaving over 12,000 customers without electricity. Investigations are underway to determine whether Hawaiian Electric’s downed lines and operational choices contributed to the fires amid strong winds and an active red flag warning—conditions potentially worsened by Hurricane Dora passing south.[1]
In the aftermath of this catastrophe, shares of Hawaiian Electric dropped roughly 40%, reaching their lowest point since 2010 amid a class action lawsuit accusing the utility of negligence for failing to de-energize power lines despite known fire hazards. The lawsuit alleges that safety warnings were disregarded even as high winds caused some lines to fail.[2] On August 23, it was reported that Hawaiian Electric lacked established protocols for shutting off power—a precaution commonly practiced in other regions vulnerable to wildfires.[3]
By July 2024, Hawaiian Electric Industries reached a preliminary $4 billion settlement agreement with thousands of plaintiffs and victims connected to the wildfires, alongside the State of Hawaii, Maui County, Kamehameha Schools, and other parties.[4]
Generation
In 2023, renewable energy accounted for one-third (33.3%) of HEI's total electricity production. On April 25, 2023, Hawai‘i Island reached a record high renewable energy generation rate of 92.3%. That year, HECO generated 10.2 terawatt-hours (TWh) of electricity, with 3.4 TWh coming from renewable sources and the remaining 6.8 TWh derived from oil-fired generation.
Hawaiian Electric actively supports the expansion of electric vehicle (EV) usage, aiming for an EV majority within Hawaii’s vehicle fleet by the year 2045. As of November 2018, electric vehicles made up only 1% of all registered cars. The company has submitted a strategic plan to the state to facilitate this transition.
Below is a summary of power plants owned by HEI; overall figures also include electricity procured from independent producers and distributed solar installations.
Oahu
In 2023, Oahu's firm generating capacity totaled 1,614.5 megawatts (MW), serving nearly 307,000 customers. Non-firm capacity stood at 987.6 MW. Renewable energy contributed 28% of the island’s power in 2022, an increase from 25% in 2020.
| Oil | Megawatts (MW) |
|---|---|
| Waiau | 499 |
| Kahe | 651 |
| CIP | 130 |
| Solar | MW |
| West Loch Solar | 20 |
Maui/Lanai/Molokai
In 2022, these islands had a total firm capacity of 273.1 MW servicing approximately 73,933 customers, with non-firm capacity at 212.2 MW. Renewable sources represented 35.6% of the energy mix, slightly lower than the 40.8% recorded in 2020.
| Oil | MW |
|---|---|
| Maalaea | 212.1 |
| Kahului | 37.6 |
| Lanai | 9.4 |
| Molokai | 12.0 |
| Hana (Dispersed generation) | 2.0 |
Hawaii
For the year 2022, Hawaii Island’s firm generating capacity was measured at 280.5 MW supporting about 88,757 customers; non-firm capacity was recorded as 168.6 MW. Renewable energy made up nearly half (47.9%) of the power supply, rising from 34.7% in 2020.
| HELCO power plants (oil) | MW |
|---|---|
| Hill | 34.7 |
| Puna | 36.7 |
| Keahole | 77.6 |
| Kanoelehua | 21.0 |
| Shipman | Decommissioned December 2015 |
| Waimea | 7.5 |
| Dispersed generation | 5.0 |
| Hydropower | MW |
| Pu‘u‘eo Hydro | 3.4 |
| Waiau Hydro | 1.1 |
Electric vehicles
Partnering with HECO, Hawai’i’s High Technology Development Corporation (HTDC) initiated the Hawai’i Electric Vehicle Demonstration Project (HEVDP) consortium to encourage growth in the state’s electric vehicle industry. By the end of 2017, there were around 5,000 plug-in vehicles operating across the islands.
Plans
In a legislative update in 2015, Hawaii established ambitious Renewable Portfolio Standards (RPS), becoming the first state to mandate a full transition to renewable energy by 2045:
| Year | RPS % |
|---|---|
| 2020 | 30% |
| 2030 | 40% |
| 2040 | 70% |
| 2045 | 100% |
Hawaiian Electric’s Power Supply Improvement Plan anticipates reaching these milestones ahead of schedule. Beginning in 2021, Hawaiian Electric Industries shifted from traditional cost-of-service regulation to Performance Based Regulation, thereby aligning utility incentives with objectives for renewable integration and grid modernization efforts.