Hawaiian Electric Pushes Back on Cause of Wildfires

The transcript discusses the wildfires in Maui, initially caused by power lines, and the subsequent impact on Hawaiian Electric's stock and financial standing. The company faces potential legal liabilities and has suspended dividends, affecting local shareholders. The discussion also covers the credit market's response, with bond prices remaining stable due to junk ratings. The legal process is expected to be lengthy, similar to the PG&E bankruptcy case.

What was the initial cause of the wildfires in Maui according to the company statement?

• A lightning strike

• A campfire left unattended

• A volcanic eruption

• Power lines falling due to high winds

How did Hawaiian Electric's stock react to the news of the wildfires?

• It remained stable

• It decreased by 20%

• It increased by more than 40%

• It was unaffected

What might Hawaiian Electric have to bear as a result of the wildfires?

• Only restoration costs

• No costs at all

• Some of the costs and liabilities

• All costs covered by insurance

What is a potential factor that could hasten the resolution of the lawsuits?

• International pressure

• A quick court ruling

• Local residents' dependence on dividends

• The company's strong financial position

What is the current status of Hawaiian Electric's bond ratings?

• Upgraded to investment grade

• Downgraded to junk status

• Stable with no change

• Improved significantly