Hawaiian Electric to Settle Maui Wildfire Claims as Part of $4B Deal
Tentative deal would resolve lawsuits from the 2023 wildfires that killed 102 people
Hawaiian Electric agreed to pay nearly $2 billion as part of a joint $4 billion settlement to resolve mass lawsuits filed over the Maui wildfires that killed more than 100 people and destroyed historic Lahaina last year.
The utility and its parent company, Hawaiian Electric Industries HE -3.83%decrease; red down pointing triangle, along with other parties that include the state of Hawaii and Maui County, reached an agreement to settle all tort claims, according to a statement Friday from Hawaiian Electric.
The proposed terms of the settlement, still subject to court approval, aren’t an admission of liability for the Aug. 8, 2023 windstorms and wildfires that ravaged parts of Maui and impacted thousands, the statement said. The Wall Street Journal had previously reported the parties were nearing a settlement.
The Maui fires triggered litigation and a financial crisis for Hawaiian Electric that led it to consult with restructuring advisers about a path forward. The utility has acknowledged that numerous power lines and poles fell in Maui on the day of the fire; it has denied it was responsible for the inferno.
The fires killed 102 people and damaged or destroyed over 2,000 structures, many of them homes. Lahaina, the former capital of the Hawaiian Kingdom on West Maui, was incinerated. The cost of the disaster was estimated at roughly $5 billion, according to Capstone, a Washington, D.C. firm that advises investors and companies on regulatory matters.
Fire victims filed more than 450 lawsuits against Hawaiian Electric and other defendants, seeking compensation for property damage and personal-injury claims. The proposed settlement announced Friday may allow Hawaiian Electric to avoid the financial fate of PG&E, California’s largest utility.
PG&E filed for bankruptcy in January 2019 as it struggled with liabilities from California wildfires in 2017 and 2018 that were sparked by its equipment. PG&E exited bankruptcy after agreeing to pay $25 billion to individuals, businesses and insurers to compensate for wildfire-related losses.