Hawaiian Electric Industries Inc (HE) 2023 Q3 法說會逐字稿

Good day, everyone, and welcome to the Hawaiian Electric Industries Third Quarter 2023 Earnings Call. Today's call is being recorded. (Operator Instructions)

大家好，歡迎參加 Hawaiian Electric Industries 2023 年第三季財報電話會議。今天的通話正在錄音。 （操作員說明）

I would now like to turn the conference over to Mateo Garcia, Director of Investor Relations. Please go ahead, sir.

我現在想將會議交給投資者關係總監馬特奧·加西亞 (Mateo Garcia)。請繼續，先生。

Thank you. Welcome, everyone, to HEI's Third Quarter 2023 Earnings Call. Joining me today are Scott Seu, HEI President and CEO; Scott Deghetto, HEI Executive Vice President, CFO and Treasurer; Shelee Kimura, Hawaiian Electric President and CEO; Ann Teranishi, American Savings Bank President and CEO; and other members of senior management.

謝謝。歡迎大家參加 HEI 2023 年第三季財報電話會議。今天加入我的是 HEI 總裁兼執行長 Scott Seu； Scott Deghetto，HEI 執行副總裁、財務長兼財務長； Shelee Kimura，夏威夷電力公司總裁兼執行長； Ann Teranishi，美國儲蓄銀行總裁兼執行長；以及其他高階管理人員。

Our earnings release and our presentation for this call are available on the Investor Relations section of our website. As a reminder, forward-looking statements will be made on today's call. Factors that could cause actual results to differ materially from expectations can be found in our presentation, our SEC filings and in the Investor Relations section of our website.

我們的收益發布和本次電話會議的演示可在我們網站的投資者關係部分取得。提醒一下，今天的電話會議將發表前瞻性聲明。可能導致實際結果與預期有重大差異的因素可以在我們的簡報、美國證券交易委員會備案文件以及我們網站的投資者關係部分中找到。

Today's presentation also includes references to non-GAAP financial measures. You should refer to the information contained in the slides accompanying today's presentation for definitional information and reconciliations of historical non-GAAP measures to the closest GAAP financial measure.

今天的演示也提到了非公認會計準則財務指標。您應該參考今天簡報隨附的幻燈片中包含的信息，以了解歷史非 GAAP 衡量標準與最接近的 GAAP 財務衡量標準的定義資訊和調整情況。

Now Scott Seu will begin with his remarks.

現在 Scott Seu 將開始他的演講。

Aloha kakou, and welcome, everyone. Given the August wildfires that impacted our customers and communities, our discussion today will be different from our usual earnings calls. I'll start with an overview of what we're doing across our companies to reinforce our commitment to serving our communities for the long term. Shelee Kimura will then provide an update from the utility on our response in rebuilding efforts. Scott Deghetto, who started as HEI's CFO on October 1, will then walk you through the quarter's financials and provide an update on our guidance.

Aloha kakou，歡迎大家。鑑於八月的野火影響了我們的客戶和社區，我們今天的討論將與平常的財報電話會議不同。首先，我將概述我們在各公司所做的工作，以加強我們對長期服務社區的承諾。然後，Shelee Kimura 將提供公用事業公司關於我們在重建工作中的反應的最新資訊。 Scott Deghetto 於 10 月 1 日開始擔任 HEI 財務官，隨後他將向您介紹本季度的財務狀況，並提供我們指導的最新資訊。

It's been 3 months since the tragedy of the August 8 wildfires forever altered the lives of so many of Maui's and Hawaii's residents. The tragedy is still fresh for us, and the scale of the loss is difficult for our hearts and minds to process. We have friends, family, neighbors and employees on Maui, who have experienced loss and pain on a scale that no one ever should.

自 8 月 8 日發生的野火悲劇永遠改變了毛伊島和夏威夷許多居民的生活以來，已經過去 3 個月了。這場悲劇對我們來說仍然記憶猶新，損失的規模讓我們的心靈和思想難以承受。我們在毛伊島有朋友、家人、鄰居和員工，他們經歷了任何人都不應該經歷的損失和痛苦。

One of Hawaii's greatest strengths is our ability to work together. We have a concept here, which we call laulima, meaning many hands working together, and that is what it will take for our state to get through this and emerge in a position of strength. Yesterday, Governor Josh Green announced a multiphase initiative to support Maui's recovery, protect our communities against future extreme weather events and ensure that, as a state, we can attract the capital needed to keep our communities safe and our state on the path to a sustainable future.

夏威夷最大的優勢之一是我們的合作能力。我們這裡有一個概念，我們稱之為“勞利瑪”，意思是許多人共同努力，這就是我們的州度過難關並佔據優勢所需要的。昨天，州長喬什·格林宣布了一項多階段舉措，以支持毛伊島的復甦，保護我們的社區免受未來極端天氣事件的影響，並確保作為一個州，我們能夠吸引所需的資金來保證我們的社區安全和我們的州走上永續發展的道路。

The first phase is focused on providing financial support for families who have lost a loved one and those who are severely injured in the Maui fire. Payment will be offered on an expedited basis, providing an alternative to a lengthy legal process and the costs associated with it. Those who choose to participate will waive their ability to get compensated again through litigation related to associated claims.

第一階段的重點是為在毛伊島火災中失去親人的家庭和受重傷的人提供經濟支持。付款將快速提供，為冗長的法律程序和相關費用提供替代方案。選擇參與的人將放棄透過與相關索賠相關的訴訟再次獲得賠償的能力。

The state of Hawaii, County of Maui, Hawaiian Electric and Kamehameha Schools have agreed to see this fund as part of the One Ohana initiative. Over $150 million has been raised to date, and Hawaiian Electric will contribute up to $75 million of the total. Hawaiian Electric's contribution will be funded by insurance, not customers. This is the start of a constructive and collaborative process.

夏威夷州、毛伊島縣、夏威夷電力公司和卡美哈美哈學校已同意將該基金視為 One Ohana 計劃的一部分。迄今已籌集超過 1.5 億美元，其中 Hawaiian Electric 將出資高達 7,500 萬美元。夏威夷電力公司的捐款將由保險而非客戶提供資金。這是建設性和協作過程的開始。

The next phase is intended to support property owners and businesses who have been severely impacted by the fire, followed by statutory and regulatory changes to be proposed in early 2024 to protect Hawaii consumers and businesses from climate risks. We look forward to working with the Governor, the County of Maui, Kamehameha Schools and others in our communities to help address the many tragic impacts of the Maui wildfires. Additional details will be provided in the months ahead.

下一階段旨在支持受火災嚴重影響的業主和企業，隨後將於 2024 年初提議進行法律和監管改革，以保護夏威夷消費者和企業免受氣候風險的影響。我們期待與州長、毛伊島縣、卡美哈美哈學校和我們社區的其他機構合作，幫助解決毛伊島野火的許多悲慘影響。更多細節將在未來幾個月內提供。

As a result of this late-breaking development, we will be delaying the filing of our 10-Q to early next week. Separate from the events on August 8, the fundamentals of our businesses remain strong. While we had utility equipment damage and lost the ASB branch in Lahaina, both our utility and bank have made the necessary adjustments to continue serving the people of West Maui at a time when they most need us. Our recovery and restoration efforts have required close collaboration with the community, and this coordination will remain crucial going forward.

由於這一最新進展，我們將把 10-Q 的提交推遲到下週初。除了 8 月 8 日發生的事件之外，我們業務的基本面依然強勁。雖然我們的公用事業設備遭到損壞並失去了拉海納的ASB 分行，但我們的公用事業公司和銀行都做出了必要的調整，以便在西毛伊島人民最需要我們的時候繼續為他們提供服務。我們的恢復和恢復工作需要與社區密切合作，這種協調在未來仍然至關重要。

As many of you know, we took prudent actions during the quarter to reinforce our financial strength. We recognize that our decision to suspend the quarterly cash dividend impacts many of you, especially those who rely on the dividend as an important source of income. This was not a decision we took lightly. We believe it was the right decision to support our ability to be a strong partner to our communities and empower a thriving future for Hawaii.

眾所周知，我們在本季採取了謹慎的行動來增強我們的財務實力。我們認識到，我們暫停季度現金股利的決定影響了你們中的許多人，特別是那些依賴股息作為重要收入來源的人。這不是我們輕易做出的決定。我們相信，這是一個正確的決定，有助於我們成為社區的強大合作夥伴，並為夏威夷帶來繁榮的未來。

Toward that end, Hawaiian Electric is reexamining and updating its near- and long-term capital expenditure plan to further mitigate the risks of extreme weather events. This is a priority for us, and the work is ongoing. I know there is a lot of interest in the causes of the fire, and our community deserves answers. Hawaiian Electric and others are working to gain a full understanding of what happened before, during and after the fire, particularly as we advance efforts to figure out what we need to do collectively to keep our communities safe.

為此，夏威夷電力公司正在重新審查和更新其近期和長期資本支出計劃，以進一步減輕極端天氣事件的風險。這是我們的首要任務，工作正在進行中。我知道人們對火災的原因很感興趣，我們的社區應該得到答案。夏威夷電力公司和其他公司正在努力全面了解火災發生前、火災期間和火災後發生的情況，特別是在我們努力找出需要共同採取哪些措施來確保社區安全的時候。

We know that the litigation process is top of mind for many of you. And I can tell you that as of November 7, Hawaiian Electric has been named as a defendant in 64 lawsuits by plaintiffs claiming losses related to the August 8 windstorm and wildfires. HEI has been named in 65. Many of those lawsuits also named other defendants, including the County of Maui, the State of Hawaii, private landowners and developers and telecommunications companies.

我們知道訴訟程序是許多人最關心的問題。我可以告訴你，截至 11 月 7 日，夏威夷電力公司已被原告列為 64 起訴訟的被告，這些訴訟索賠與 8 月 8 日的風暴和野火有關的損失。 HEI 已被點名 65 起。

We will vigorously defend the litigation, and we intend to contest both causation and negligence. Most of the lawsuits are in the State Circuit Court for Maui County. We will need to file our responses to the first lawsuits with the court by November 17, and we will then need to file our counterclaims against other defendants by January 19 of next year. Each of those dates is subject to extension or change by the court, but that's what we have currently.

我們將積極為訴訟辯護，我們打算對因果關係和過失進行抗辯。大多數訴訟均在毛伊縣州巡迴法院審理。我們需要在 11 月 17 日之前向法院提交對第一批訴訟的回應，然後我們需要在明年 1 月 19 日之前對其他被告提出反訴。這些日期中的每一個都可能被法院延長或更改，但這就是我們目前所掌握的。

The first trial date is scheduled for October 21, 2024. Lawsuits have also been filed on behalf of shareholders, alleging losses from a decline in the stock price and claiming that the HEI Board of Directors has breached its fiduciary duties. Those cases are on different paths and have been tendered to our separate D&O insurance carriers.

初審日期定於 2024 年 10 月 21 日。這些案件處於不同的路徑，並已提交給我們單獨的 D&O 保險公司。

Turning to the slides. Our core operations have remained strong, while we work alongside others in recovery and rebuilding efforts. On a consolidated basis, third quarter earnings per share were $0.37 for the quarter, net of about $0.19 of wildfire-related costs. Excluding these costs, we earned $0.56 per share for the quarter. Scott Deghetto will speak to the quarter's financials in more detail shortly.

轉向幻燈片。我們的核心業務仍然強勁，同時我們與其他人一起致力於恢復和重建工作。綜合來看，第三季每股收益為 0.37 美元，扣除約 0.19 美元的野火相關成本。排除這些成本，本季我們每股獲利 0.56 美元。 Scott Deghetto 很快就會詳細介紹本季的財務狀況。

A few brief updates on the utility and bank operations during the quarter. Our utility performed well despite working through the challenges of restoring power to our Maui customers following the wildfires. We've requested deferral treatment of windstorm and wildfire-related expenses. And we've asked the PUC to issue a decision on an expedited basis by the end of the year.

本季公用事業和銀行業務的一些簡短更新。儘管在野火發生後為毛伊島客戶恢復電力方面遇到了挑戰，但我們的公用事業公司仍表現良好。我們已請求推遲處理與風暴和野火相關的費用。我們已要求 PUC 在今年年底前盡快做出決定。

Last week, we reached a stipulated settlement with the consumer advocate, paving the way for a PUC decision. The final award group selection and announcement under the Stage 3 RFP, which we've updated you on each quarter this year, has been delayed by a little over a month given the events on Maui. And for Oahu, Hawaii Island and Maui's variable generation portion, the utility will announce the selection of the final award group on December 1. Proposals for the firm generation portion of the Maui RFP are due in January of next year.

上週，我們與消費者權益倡議者達成了規定的和解，為 PUC 的決定鋪平了道路。鑑於毛伊島發生的事件，我們今年每季都會向您通報最新情況，第三階段 RFP 下的最終獎項組選擇和公告已推遲了一個多月。對於瓦胡島、夏威夷島和毛伊島的可變發電部分，公用事業公司將於 12 月 1 日宣布最終授予組的選擇。

Turning to the bank. ASB continues to be in a strong position to support our customers and community with a strong capital position, excellent credit quality, lending capacity and ample liquidity. Customer deposits are safe, and there is no risk to customer deposits as a result of legal claims related to the wildfires. ASB's deposit base remained stable and was 77% insured and 87% insured or fully collateralized as of quarter end. The deposit base remains majority retail at 84%. We have not seen meaningful deposit outflows as a result of the events on Maui.

轉向銀行。 ASB 憑藉強大的資本狀況、卓越的信用品質、貸款能力和充裕的流動性，繼續處於有利地位，為我們的客戶和社區提供支援。客戶存款安全，不存在因山火相關法律索賠而給客戶存款帶來風險的情況。截至季末，ASB 的存款基礎保持穩定，77% 已投保，87% 已投保或完全抵押。存款基礎仍以零售為主，為 84%。我們尚未看到毛伊島事件導致存款大幅外流。

ASB remains focused on supporting teammates, customers and community members affected by the events of August 8 and is committed to helping Maui recover. The bank has donated nearly $150,000 to support Maui relief efforts and is offering waived ATM fees as well as 90-day forbearance and deferment for commercial and consumer loans. Customers are able to apply for an emergency personal line of credit up to $5,000. I'm also proud to say that ASB teammates have contributed numerous volunteer hours to support the Maui community through donation drives, cleanups and fundraising activities.

ASB 仍然專注於支持受 8 月 8 日事件影響的隊友、客戶和社區成員，並致力於幫助毛伊島恢復。該銀行已捐贈近 15 萬美元來支持毛伊島救災工作，並免除 ATM 費用以及商業和消費貸款 90 天的寬限和延期。客戶可以申請高達 5,000 美元的緊急個人信用額度。我還很自豪地說，ASB 團隊成員貢獻了大量的志工時間，透過捐贈活動、清潔和籌款活動來支持毛伊島社區。

In summary, our core operations remain strong across the enterprise and we continue to be well positioned to serve our customers and community. I'll now turn the call over to Shelee Kimura, President and CEO of Hawaiian Electric, to provide detail on the utilities recovery and response efforts.

總而言之，我們整個企業的核心業務依然強勁，我們繼續處於有利地位，為我們的客戶和社區提供服務。我現在將把電話轉給 Hawaiian Electric 總裁兼執行長 Shelee Kimura，以提供有關公用事業恢復和響應工作的詳細資訊。

Thank you, Scott. Aloha, everyone. I'll start by echoing Scott that our hearts ache for the many people who have been affected by this horrible tragedy on Maui. I have spent much of my time over the last several months on Maui and have seen the devastation in Lahaina firsthand. I know I speak for the entire Hawaiian Electric team when I say that we will stand with the Maui community to help recover and rebuild for however long it takes.

謝謝你，斯科特。大家好。首先我要重複斯科特的說法，我們為許多受到毛伊島這場可怕悲劇影響的人感到心痛。過去幾個月我大部分時間都在毛伊島度過，親眼目睹了拉海納的破壞情況。我知道當我說我們將與毛伊島社區站在一起幫助恢復和重建時，我代表整個夏威夷電力團隊，無論需要多長時間。

Since August 8, over 400 employees have been assisting on the ground, alongside first responders, FEMA, and other federal, state and county agencies to assist in the recovery efforts. Our team has shown unwavering dedication in helping our communities on Maui. Power has now been restored to 99% of customers who lost electricity in West Maui and Upcountry Maui. Collaborating with the state, Maui County, Maui Emergency Management and other county officials on the path forward for Lahaina and Maui is a critical priority for us.

自 8 月 8 日以來，超過 400 名員工一直在現場與急救人員、FEMA 以及其他聯邦、州和縣機構一起協助恢復工作。我們的團隊在幫助毛伊島社區方面表現出了堅定不移的奉獻精神。西毛伊島和毛伊島內陸地區 99% 斷電的客戶現已恢復供電。與州政府、毛伊島縣、毛伊島緊急管理部門和其他縣官員合作，推動拉海納和毛伊島的前進道路是我們的首要任務。

As an example, Maui emergency management officials have asked us to start replacing poles and other electrical equipment that was damaged in and around Lahaina. This involves installing temporary poles, transformers, power lines and other equipment that enables us to provide safe and reliable power while long-term community-driven plans are developed for Lahaina and its future energy needs.

例如，毛伊島緊急管理官員要求我們開始更換拉海納及其周邊地區損壞的電線桿和其他電氣設備。這包括安裝臨時電線桿、變壓器、電線和其他設備，使我們能夠提供安全可靠的電力，同時為拉海納及其未來的能源需求制定長期社區驅動的計劃。

We have been keeping our utility regulators well informed on restoration efforts. And as Scott mentioned, we have filed a request to defer expenses related to the wildfires. We expect to work in coordination with the PUC as we continue our restoration work and further strengthen our grid's resilience to impacts from climate change and extreme weather.

我們一直讓公用事業監管機構充分了解復原工作。正如斯科特所提到的，我們已提出推遲與野火相關的費用的請求。我們希望與 PUC 合作，繼續進行復原工作，並進一步增強電網抵禦氣候變遷和極端天氣影響的能力。

The risk of wildfires was only one of a number of Hawaii's unique mix of risks identified through our resilience planning efforts. Hawaiian Electric first began developing its wildfire safety strategy in 2019 and continues to adapt it to address the elevated risks in Hawaii. Hawaiian Electric is focusing its efforts in areas identified by the State of Hawaii as being at-risk for wildfires.

野火風險只是我們透過復原力規劃工作所確定的夏威夷獨特風險組合之一。 Hawaiian Electric 於 2019 年首次開始製定野火安全策略，並繼續對其進行調整，以應對夏威夷較高的風險。夏威夷電力公司正將工作重點放在夏威夷州確定的有野火風險的地區。

The 3-phase safety strategy starts with immediate actions, including expanding the segments of our system to immediately turn off power if a fault or disturbance is detected on a circuit in an elevated risk area. The power stays off until crews visually confirm that it is safe to restore power. The second phase encompasses some of the work that will be done with the $95 million in federal funding from the U.S. Department of Energy under the Infrastructure Investment and Jobs Act, which contributes half of the capital for the $190 million grid resilience plan that we filed in June 2022. This is subject to PUC approval.

三相安全策略從立即採取行動開始，包括擴展系統的各個部分，以便在高風險區域的電路上檢測到故障或乾擾時立即關閉電源。電源將保持關閉狀態，直到工作人員目視確認可以安全恢復供電為止。第二階段的部分工作將利用美國能源部根據《基礎設施投資和就業法案》提供的9,500 萬美元聯邦資金來完成，該資金為我們在2017 年提交的1.9 億美元電網彈性計劃中提供了一半資金。

The plan includes investments to strengthen critical transmission lines to withstand extreme wins, bolster distribution lines serving essential community facilities, hardened targeted utility poles, enhanced vegetation management that falls under the utility's purview and deploy devices to help prevent and respond to wildfires. As Scott mentioned, we are updating our capital expenditure program to further harden our system.

該計劃包括投資加強關鍵輸電線路以承受極端勝利，加強為重要社區設施服務的配電線路，加固有針對性的電線桿，加強屬於公用事業公司職權範圍內的植被管理，並部署幫助預防和應對野火的設備。正如史考特所提到的，我們正在更新我們的資本支出計劃，以進一步強化我們的系統。

We are working in partnership with others to evaluate our resilience and wildfire defense strategies as risks evolve We are doing that work now by developing Hawaii-focused solutions to threats posed by climatological events like the one we experienced on August 8, solutions that are tailored to the mix of geologies, topographies, climate and community needs that are unique to the islands we serve.

我們正在與其他方合作，隨著風險的變化評估我們的抵禦能力和野火防禦策略 我們現在正在進行這項工作，針對氣候事件（例如我們8 月8 日經歷的事件）所造成的威脅，開發以夏威夷為中心的解決方案，這些解決方案是針對我們所服務的島嶼所特有的地質、地形、氣候和社區需求的結合。

The launch of the One Ohana initiative that Scott spoke about is a step forward in this regard. While it is still early days, we see this as the start of a constructive and collaborative process that could lay the foundation for work we need to do to improve and harden the grid and better protect Hawaii from extreme weather events going forward. I'll also highlight that a working group of the state legislature recently issued a draft report on wildfire prevention actions that could take shape as legislation in the coming months.

斯科特談到的 One Ohana 倡議的啟動是在這方面向前邁出的一步。雖然現在還處於早期階段，但我們認為這是一個建設性和協作過程的開始，可以為我們需要做的工作奠定基礎，以改進和強化電網，並更好地保護夏威夷免受未來極端天氣事件的影響。我還要強調的是，州立法機構的一個工作小組最近發布了一份關於野火預防行動的報告草案，該報告草案可能在未來幾個月內形成立法。

The reports, conclusions and recommendations aligned with Hawaiian Electric's own analysis and action steps described in our wildfire safety strategy, including development of best practices on prevention and ignition during extreme weather conditions and prioritizing undergrounding lines and fire risk hazard areas. We will continue to work closely with our legislators as well as regulators, the communities we serve and others, to develop and implement statewide strategies to keep our communities safe and ensure nothing like the events of August 8 ever happens again.

這些報告、結論和建議與Hawaiian Electric 在我們的野火安全戰略中描述的自己的分析和行動步驟相一致，包括制定極端天氣條件下預防和點火的最佳實踐，以及優先考慮地下線路和火災風險區域。我們將繼續與我們的立法者、監管者、我們所服務的社區和其他人密切合作，制定和實施全州範圍的策略，以確保我們社區的安全，並確保類似8 月8 日的事件不再發生。

I'll now turn the call over to Scott Deghetto, who will provide detail on the quarter's financials.

我現在將把電話轉給 Scott Deghetto，他將提供有關本季財務狀況的詳細資訊。

Thank you, Shelee. I'll start with our results for the quarter on Slide 6. We earned consolidated net income of $41.1 million and EPS of $0.37 for the third quarter. This included $20.4 million or $0.19 per share of wildfire-related expenses. And excluding those expenses, core net income and EPS of $61.5 million and $0.56 compared to $62.1 million and EPS of $0.57 for the third quarter of last year. Utility net income included $10.4 million of windstorm and wildfire-related impacts, bank net income included $6.3 million and holding company and other segment net income included $3.8 million.

謝謝你，雪莉。我將從幻燈片 6 中本季的業績開始。其中包括 2,040 萬美元或每股 0.19 美元的野火相關費用。排除這些費用，核心淨收入和每股收益分別為 6,150 萬美元和 0.56 美元，而去年第三季的核心淨收入和每股收益為 6,210 萬美元和 0.57 美元。公用事業淨利潤包括 1,040 萬美元的風暴和野火相關影響，銀行淨利潤包括 630 萬美元，控股公司和其他部門的淨利潤包括 380 萬美元。

Our consolidated last 12 months core ROE remains healthy at 10.4%, excluding wildfire impacts. This is down slightly from 10.5% last year due primarily to last year's gain on sale recorded at Pacific Current and this year's higher holding company loss and lower bank earnings. Utility core ROE was up 20 basis points to 8.3%, excluding wildfire impacts, and bank core ROE on an LTM basis was up 220 basis points to 16.4%, excluding wildfire impacts. The higher bank ROE reflects the impacts of higher interest rates to bank AOCI, which reduces shareholders' equity.

過去 12 個月的綜合核心 ROE 保持在 10.4% 的健康水平，不包括野火的影響。這比去年的 10.5% 略有下降，主要是由於去年 Pacific Current 的銷售收益以及今年控股公司虧損增加和銀行盈利下降。扣除山火影響後，公用事業核心股本回報率上升了 20 個基點，達到 8.3%；扣除山火影響後，銀行核心股本回報率按 LTM 計算，上漲了 220 個基點，達到 16.4%。較高的銀行 ROE 反映了較高利率對銀行 AOCI 的影響，從而減少了股東權益。

On Slide 7, we show major variances across the enterprise compared to the third quarter of last year. On the utility side, we saw higher ARA and MPIR revenues, higher fossil fuel cost risk-sharing revenues and higher AFUDC from increased CapEx. These were offset by $17 million in higher O&M, $10 million of which was related to the Maui windstorm and wildfires. These expenses included legal, outside services and consultant costs. The remaining $7 million O&M increase was due to higher transmission and distribution expenses, higher customer support costs and higher overhaul costs.

在投影片 7 上，我們展示了整個企業與去年第三季相比的主要差異。在公用事業方面，我們看到了 ARA 和 MPIR 收入的增加、化石燃料成本風險分擔收入的增加以及資本支出增加帶來的 AFUDC 的增加。這些被 1,700 萬美元的較高營運和維護成本所抵消，其中 1,000 萬美元與毛伊島風暴和野火有關。這些費用包括法律費用、外部服務費用和顧問費用。其餘 700 萬美元的營運和維護費用增加是由於輸電和配電費用增加、客戶支援成本增加以及檢修成本增加。

On the bank side, lower net income was primarily due to variances in provision for credit losses, noninterest expense and net interest income, partially offset by higher noninterest income. The higher provision for credit losses was primarily due to additional credit reserves related to the Maui wildfires, and $5.9 million of the $9 million variance in provision was wildfire-related. ASB's credit exposure in Maui is approximately $742 million, with 95% of those loans secured by real estate. The provision for credit losses for this portfolio includes reserves relating to the expected economic disruption brought on by the wildfires resulting in added credit risk.

在銀行方面，淨利下降主要是由於信貸損失撥備、非利息費用和淨利息收入的差異，但部分被非利息收入的增加所抵銷。信貸損失準備金增加主要是由於與毛伊島山火相關的額外信貸準備金，900 萬美元準備金差異中的 590 萬美元與山火有關。 ASB 在毛伊島的信貸風險約為 7.42 億美元，其中 95% 的貸款由房地產擔保。此投資組合的信用損失撥備包括與野火造成的預期經濟損失（導致信用風險增加）相關的準備金。

The higher noninterest expense of $4.8 million included wildfire-related expenses of $2.7 million as well as higher compensation benefits expenses of $1.3 million. The $2.7 million of wildfire-related noninterest expense included $1.3 million of professional services costs and about $1 million of other extraordinary expenses related to the destruction of our Lahaina Bank branch, which was a leased location.

非利息支出增加了 480 萬美元，其中包括 270 萬美元的野火相關支出以及 130 萬美元的補償福利支出。與山火相關的 270 萬美元非利息費用包括 130 萬美元的專業服務費用和約 100 萬美元與我們的拉海納銀行分行（租賃地點）被毀相關的其他非常費用。

The lower net interest income was primarily due to higher interest expense from increased wholesale borrowings and certificates of deposit and lower interest and dividends on investment securities. The higher holding company and other segment net loss was primarily due to lower Pacific Current performance and the $3.8 million of after-tax wildfire-related expenses mentioned.

淨利息收入減少主要是由於批發借款和存款證增加導致利息支出增加以及投資證券利息和股息減少。控股公司和其他部門的淨虧損較高，主要是由於 Pacific Current 業績下降以及提到的 380 萬美元的稅後野火相關費用。

Turning to Slide 8. Given the uncertainty stemming from the August 8 wildfires, we are not providing full year 2023 EPS guidance at this time. We will revisit our ability to provide guidance as we develop better clarity into potential impacts related to the Maui wildfires. I will address how we are thinking about near-term liquidity as we know this is top of mind for many of you.

轉向幻燈片 8。隨著我們更清楚地了解毛伊島野火的潛在影響，我們將重新審視我們提供指導的能力。我將討論我們如何考慮近期流動性，因為我們知道這是你們許多人最關心的問題。

With the downgrades to utility and HEI credit ratings from all 3 rating agencies, our capital markets access is constrained. We ended the previous quarter with a higher cash position as we had prefunded the November $100 million utility maturity earlier this year, and as a result, had considerable cash on the balance sheet as of June 30. The drawdown of the HEI and utility revolvers following the wildfires provided $370 million of immediately available cash.

隨著三大評級機構公用事業和高等教育機構信用評級的下調，我們的資本市場准入受到限制。我們在上一季結束時擁有較高的現金頭寸，因為我們已在今年早些時候為11 月到期的1 億美元公用事業公司預先提供了資金，因此，截至6 月30 日，資產負債表上有大量現金。

We also suspended HEI's dividend, which represents about $40 million of cash quarterly. We believe these were prudent and measured actions. The revolver draws and dividend suspension have created significant liquidity runway as we work through the timing and potential impacts of litigation. As of the end of the third quarter, the holding company and the utility had $127 million and $275 million of cash on hand, respectively.

我們也暫停了 HEI 的股息，該股息相當於每季約 4000 萬美元的現金。我們認為這些都是審慎且慎重的行動。當我們研究訴訟的時間安排和潛在影響時，左輪手槍抽籤和股息暫停創造了巨大的流動性跑道。截至第三季末，控股公司和公用事業公司手頭現金分別為1.27億美元和2.75億美元。

In closing, I want to acknowledge what a challenging 3 months this has been for all of our stakeholders, including our shareholders, many of whom are part of our communities here in Hawaii. We wanted you to know that we are resolved to continue taking the right steps to remain a financially healthy enterprise best positioned to support the needs of our customers and the state of Hawaii.

最後，我想承認這對我們所有利益相關者（包括我們的股東，其中許多人都是我們夏威夷社區的一部分）來說是充滿挑戰的三個月。我們希望您知道，我們決心繼續採取正確的措施，以維持財務健康的企業，最有能力滿足客戶和夏威夷州的需求。

And with that, let's open up the call to questions.

接下來，讓我們開始提問。

(Operator Instructions) We'll take our first question from Mike Lonegan with Evercore.

（操作員說明）我們將回答 Evercore 的 Mike Lonegan 提出的第一個問題。

So obviously, you spoke about the runway you have with your liquidity position. You said you're reexamining and updating your capital program to harden the grid. You talked about resiliency. I was just wondering, how should we think about your maintenance level of spending? Is that like the ARA-approved level? And what would be on top of that, that you're planning in terms of capital spending?

顯然，您談到了您的流動性狀況。你說你正在重新檢查和更新你的資本計劃以強化電網。你談到了彈性。我只是想知道，我們應該如何考慮您的維持支出水準？這是 ARA 批准的等級嗎？除此之外，您在資本支出上有何規劃？

Mike, this is Scott Seu. I'm going to ask Shelee if she can comment on -- or actually, I'm sorry, I'm going to ask Paul Ito, Hawaiian Electric CFO, if he can comment on that.

麥克，這是史考特·蘇。我會問 Shelee 是否可以對此發表評論，或者實際上，我很抱歉，我會問夏威夷電力首席財務官 Paul Ito 是否可以對此發表評論。

Yes. So Mike, thanks for the question. So our typical maintenance spend is somewhere in the range of $300 million a year. As you know, we're prioritizing spend on -- we've always been spending on resilience in wildfire, but obviously, we're going to be accelerating some of that. We also mentioned that we have IIJA funding that will be part of the mix as we go forward here.

是的。麥克，謝謝你的提問。因此，我們每年的典型維護支出約為 3 億美元。如您所知，我們優先考慮在野火復原力方面的支出，但顯然，我們將加快其中的一些速度。我們也提到，我們擁有 IIJA 資金，這將是我們在此推進過程中的一部分。

We're currently in the process of establishing our 2024 CapEx budget, so I don't have anything to report at this time. But typically, our budget process runs through the end of the year, and then we report to the Board next year. But again, we will be prioritizing wildfire-related type investments, and we think it's the right thing to do. We've been doing it, but we're just going to start accelerating that program.

我們目前正在製定 2024 年資本支出預算，因此我目前沒有任何可報告的內容。但通常情況下，我們的預算流程會持續到年底，然後我們明年向董事會報告。但我們將再次優先考慮與野火相關的投資，我們認為這是正確的做法。我們一直在這樣做，但我們只是要開始加速該計劃。

Great. And then I have one follow-up. Again, it looks like you have some runway with liquidity. Just wondering, is there anything you could say about whether you're pursuing asset sales? Like if the bank is a candidate or on a smaller scale Pacific Current? And then if you are doing that, any anticipated challenges to closing such a transaction?

偉大的。然後我有一個後續行動。再說一次，看起來你有一些流動性。只是想知道，對於您是否正在尋求資產出售，您有什麼可以說的嗎？例如該銀行是候選銀行還是規模較小的 Pacific Current 銀行？那麼，如果您這樣做，完成此類交易會遇到哪些預期的挑戰？

Yes, Mike, it's Scott Deghetto. At this point, we just are not going to speculate on any of those potential options.

是的，麥克，我是史考特‧德蓋托。在這一點上，我們不會猜測任何潛在的選擇。

We'll take our next question from Julien Dumoulin-Smith with Bank of America.

我們將回答美國銀行 Julien Dumoulin-Smith 提出的下一個問題。

Excellent. Best wishes to you and the employees and the impacted customers here, and welcome Scott as well. Look, just coming back to the core plan here, obviously, you talked about prioritizing spend and accelerating some of the CapEx. Can you talk about just where you stand today given the pro forma cash balances, what your cash flow profile looks like through the course of next year given that outside spend?

出色的。向您、員工以及受影響的客戶致以最良好的祝愿，並歡迎斯科特。看，回到這裡的核心計劃，顯然，您談到了優先考慮支出並加速一些資本支出。您能否談談考慮到預計現金餘額，您今天的處境，考慮到外部支出，您明年的現金流狀況如何？

Can you give us any kind of further clarity on just sort of status quo with that accelerated spend, how long that cash could last given without tapping capital markets or debt capital markets further? Again, I get that's a difficult question, but I just wanted to ask it here at the outset. Whatever you can offer.

您能否進一步澄清一下加速支出的現狀，以及在不進一步利用資本市場或債務資本市場的情況下，現金可以持續多久？再說一次，我知道這是一個很難的問題，但我只是想從一開始就在這裡問它。無論你能提供什麼。

Yes. And I think, Julien, at the end of the third quarter, as we previously said, the holding company and utility had $127 million and $275 million of cash on hand, respectively. We believe that, that provides us with a good level of runway at this particular point in time.

是的。 Julien，我認為，正如我們之前所說，在第三季末，控股公司和公用事業公司手頭現金分別為 1.27 億美元和 2.75 億美元。我們相信，這為我們在這個特定時間點提供了良好的跑道水平。

Excellent. And then when you think about the state's actions, obviously, there's a number of things moving already here. Can you comment at all about any potential backstop elements or other wildfire-related avenues being pursued by the state that could help bolster and backstop your liquidity and your ability to invest here, if you will?

出色的。然後，當你思考國家的行動時，顯然，這裡已經發生了很多事情。如果您願意的話，您能否評論國家正在尋求的任何潛在的支持因素或其他與野火相關的途徑，這些途徑可以幫助增強和支持您的流動性以及您在這裡的投資能力？

Yes, Julien, at this stage, it is still early. There's a lot more discussions to be had, including with the state. One of the things that we have mentioned or was mentioned in the announcement of -- by the governor yesterday, was working together to see what can be done here in Hawaii to provide greater coverage, looking at various options, which would not only provide for the resilience of Hawaii, but also make sure that the customers are protected and the businesses in Hawaii remain financially strong. So there's a lot more detail still being -- to be worked.

是的，朱利安，在這個階段，還為時過早。還有很多討論需要進行，包括與國家的討論。我們在州長昨天的公告中提到或提到的一件事是共同努力，看看在夏威夷可以做些什麼來提供更大的覆蓋範圍，考慮各種選擇，這不僅可以提供夏威夷的復原力，同時也要確保客戶受到保護並且夏威夷的企業保持財務強勁。因此，還有更多細節需要處理。

Got it. And if I can be a little bit more specific here. When do you expect wildfire reports here? And what's the statute of limitations to get those in as well, right, in terms of some of the liabilities?

知道了。我可以在這裡說得更具體一點嗎？什麼時候會收到這裡的野火報告？就某些責任而言，追究這些責任的時效是多少？

Julien, just to clarify, are you asking about utility filing wildfire mitigation plans?

Julien，我想澄清一下，您是在詢問公用事業公司提交野火緩解計劃嗎？

Well, I was thinking more in the context of wildfire reports on just the status of the actual -- the Lahaina fire, specifically, right, in terms of the documentation around those -- that fire -- and then separately, the statute of limitations for liabilities and when we'll see that statute expire, if you will?

嗯，我在野火報告的背景下更多地思考了實際情況——拉海納火災，具體來說，就那些火災的文件而言——然後分別考慮時效對於責任，我們什麼時候會看到該法規到期，如果您願意的話？

So Julien, this is Shelee Kimura. We plan to file with the PUC report about the August 8 incident. I don't have a timing on that. That work is still ongoing. But that's about all I can say right now.

Julien，這是 Shelee Kimura。我們計劃向 PUC 提交有關 8 月 8 日事件的報告。我對此沒有時間安排。這項工作仍在進行中。但這就是我現在能說的全部。

And there's no specific statute that you'd be looking to in terms of when claims need to be filed by? Or that's ambiguous still?

對於何時需要提交索賠，您沒有需要參考的具體法規嗎？或者這仍然是模稜兩可的？

Yes, Julien, we'll have -- I think that's -- it's a legal question, I'm sorry. We'll have to get back to you on that one. But in general, again, as I talked about earlier, the pathway forward using the court system, that will play out. And like I mentioned, the first trial is not scheduled until October of next year. There will be continuing discussions for sure between parties, but that's about all I can say right now.

是的，朱利安，我們會——我想這是——這是一個法律問題，我很抱歉。我們必須就此問題與您聯繫。但總的來說，正如我之前談到的，利用法院系統的前進之路將會發揮作用。正如我所提到的，第一次審判要到明年 10 月才會安排。各方之間肯定會繼續進行討論，但這就是我現在能說的。

Got it. All right. Fair enough, guys. I'll leave it there. You guys take care.

知道了。好的。很公平，夥計們。我會把它留在那裡。你們保重。

Yes, thank you.

是的，謝謝。

(Operator Instructions) We'll take our next question from Paul Patterson with Glenrock Associates.

（操作員說明）我們將接受 Glenrock Associates 的 Paul Patterson 提出的下一個問題。

Just wanted to follow up on Julien's questions. And I apologize if I missed this, what is the total amount in the suits that's being sought from those 65 or so suits that have been filed? What are the damages that they're asking for?

只是想跟進朱利安的問題。如果我錯過了這一點，我深表歉意，從已提起的 65 起左右的訴訟中，尋求的訴訟總額是多少？他們要求賠償多少？

Paul, this is Scott. At this time, there are no specified monetary amounts in the lawsuits.

保羅，這是史考特。目前，訴訟中沒有具體的金額。

Okay. And then with respect to the program, which you guys are funding $75 million -- or the insurance companies are filing $75 million, where does that leave your insurance coverage for the remaining -- how does -- let me put it this way, including that, what is the level of insurance coverage that you guys have liability that could be applied potentially for the damages?

好的。然後就這個計劃而言，你們資助了 7500 萬美元——或者保險公司申請了 7500 萬美元，那麼剩下的保險範圍在哪裡——如何——讓我這樣說，包括那麼，你們可能承擔的損害賠償責任的保險範圍是多少？

Yes. So we have $165 million of liability insurance. So if you just simply take the $75 million and subtract it from the $165 million, that would leave $90 million of additional coverage.

是的。所以我們有 1.65 億美元的責任保險。因此，如果您只是簡單地從 1.65 億美元中減去 7500 萬美元，就剩下 9000 萬美元的額外保險。

Okay. And with respect to the program where this alternative to litigation program, when would people -- what is the cutoff period for people to apply under that methodology?

好的。就訴訟替代方案而言，人們何時會——人們根據該方法提出申請的截止期是多長？

Yes. The details are still being worked on that, Paul. The governor statement indicated that once you get through more details of the program design and the launch that participants could perhaps start to receive their compensation second quarter of next year.

是的。保羅，細節仍在研究中。州長聲明表示，一旦了解了計劃設計和啟動的更多細節，參與者也許可以在明年第二季開始收到補償。

Okay. And then the 10-Q timing, I apologize if you guys did mention that, I guess it's delayed. When is the ETA on the 10-Q?

好的。然後是 10-Q 時間，如果你們確實提到了這一點，我很抱歉，我想它已經被推遲了。 10-Q 的預計到達時間是什麼時候？

Yes. We would expect that early next week. And the reason really was due to the governor's announcement yesterday.

是的。我們預計下周初會發生。原因確實是由於州長昨天的宣布。

Okay. Great. Much appreciated, and hang in there, guys.

好的。偉大的。非常感謝，夥計們，堅持下去。

Thank you, Paul.

謝謝你，保羅。

Thank you.

謝謝。

And there are no further questions at this time. I'd like to turn the call back over to Scott Seu for any additional closing remarks.

目前沒有其他問題。我想將電話轉回給 Scott Seu，以獲取更多的結束語。

Thank you. As we've said before, our overarching objective is to remain a strong, financially healthy enterprise. Hawaiian Electric, American Savings Bank played very critical roles here in Hawaii, and it's important that they continue their service to our customers, communities and to Hawaii.

謝謝。正如我們之前所說，我們的首要目標是維持一家強大、財務健康的企業。夏威夷電力公司、美國儲蓄銀行在夏威夷發揮了非常關鍵的作用，他們繼續為我們的客戶、社區和夏威夷提供服務非常重要。

The utility is focused on working with the Governor and other parties to uplift the people of Lahaina and Maui and to do what's needed to make all of Hawaii stronger and more resilient against extreme weather events. American Savings Bank is strong and secure and continues to serve its customers as well.

該公用事業公司的重點是與總督和其他各方合作，為拉海納和毛伊島人民提供幫助，並採取必要措施，使整個夏威夷變得更強大，更有抵禦極端天氣事件的能力。美國儲蓄銀行實力雄厚、安全，並持續為其客戶提供服務。

So with that, I just want to thank all of you. Mahalo to all of you for joining us today.

因此，我只想感謝你們所有人。感謝大家今天加入我們。

Thank you. And that does conclude today's presentation. Thank you for your participation, and you may now disconnect.

謝謝。今天的演講到此結束。感謝您的參與，您現在可以斷開連接。