Maui County Sues Hawaiian Electric Over Deadly Wildfires
Introduction
Maui County has filed a lawsuit against Hawaiian Electric for damages caused by the devastating wildfires that have resulted in over 100 deaths and billions of dollars in property losses.
Impact on Hawaiian Electric
Upon news of the lawsuit, Hawaiian Electric’s stock fell 6% in extended trading. To assist in rebuilding and restoring power after the fires, the electric utility announced the suspension of its quarterly dividend starting in the third quarter.
Negligence and Warning
Maui County’s attorneys argue that Hawaiian Electric negligently left its powerlines energized despite a warning from the National Weather Service about the high fire risk due to Hurricane Dora’s high winds and drought conditions.
Devastation and Loss
The wildfires caused extensive damage, reducing the historic town of Lahaina to ruins. This disaster is the deadliest blaze in the U.S. in over a century and the worst in Hawaii state history. With 115 confirmed deaths and over 1,000 people still missing, the loss is significant.
Powerline Damage and Lawsuit
Hawaiian Electric reported that 30 utility poles were knocked down in West Maui, the region where Lahaina is located. Maui County’s attorneys claim that these powerlines ignited the fast-moving and destructive Lahaina Fire, causing the destruction of residences, businesses, churches, schools, and historic cultural sites.
Cost and Additional Lawsuits
Download the lawsuit here
Maui County estimates that it will cost over $5 billion to rebuild Lahaina, and this tragedy could have been prevented if Hawaiian Electric had shut off power. The county’s lawsuit is one of several seeking damages for the catastrophic wildfires. Fitch, a credit rating agency, downgraded Hawaiian Electric’s credit rating to junk status due to potential liability of over $3.8 billion for the Maui wildfires. Similar financial challenges led Pacific Gas & Electric in California to file for bankruptcy in 2019.
Moody’s, a financial services company, estimates that the Maui wildfires have caused up to $6 billion in economic losses.
Failure to Address Risks
The lawsuit also claims that Hawaiian Electric was aware of the high risk of wildfires in western Maui, as stated in Maui County’s 2020 hazard mitigation plan. Despite this knowledge, Hawaiian Electric used wooden utility poles in Maui, which are more prone to decay. The county alleges that many of these poles were severely damaged due to advanced decay during the high winds. Additionally, Hawaiian Electric’s overhead transmission lines did not utilize available technology to reduce the risk of fires.
