Hawaiian Electric Industries Inc (HE) 2023 Q4 法說會逐字稿

Good day, and welcome to the Hawaiian Electric Industries Fourth Quarter 2023 Earnings Conference Call. Please note that this call is being recorded. (Operator Instructions) I will now turn the call over to Mateo Garcia, Director of Investor Relations. You may begin your conference.

美好的一天，歡迎參加 Hawaiian Electric Industries 2023 年第四季財報電話會議。請注意，此通話正在錄音。 （操作員指示）我現在將電話轉給投資者關係總監馬特奧·加西亞 (Mateo Garcia)。您可以開始您的會議了。

Thank you. Welcome, everyone, to HEI's Fourth Quarter and Full Year 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. Our earnings release and our presentation for this call are available in the Investor Relations section of our website.

謝謝。歡迎大家參加 HEI 2023 年第四季和全年財報電話會議。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。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查看。

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. 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. Now Scott Seu will begin with his remarks.

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產生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。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。現在 Scott Seu 將開始他的演講。

Aloha kakou. Welcome, everyone. For today's call, I'll start with key updates regarding the Maui wildfires, followed by financial and operational updates, and then Scott Deghetto will walk you through our 2023 financial results in more detail before we open it up for questions.

阿羅哈卡庫。歡迎大家。在今天的電話會議中，我將首先介紹有關毛伊島野火的重要最新情況，然後是財務和運營方面的最新情況，然後斯科特·德蓋托(Scott Deghetto) 將向您詳細介紹我們2023年的財務業績，然後再開放提問。

It's been just over 6 months since the tragedy of the August 8 wildfires. Our community continues to grieve, and we know that it will be a long road ahead. However, I'm encouraged and inspired by the way so many in our community have come together to work towards the near- and long-term solutions necessary to help our state heal and emerge stronger.

8 月 8 日發生的山火悲劇剛過 6 個多月。我們的社區繼續悲傷，我們知道前面的路還很長。然而，我們社區中如此多的人齊心協力，努力尋找必要的近期和長期解決方案，以幫助我們的國家康復並變得更加強大，這讓我感到鼓舞和鼓舞。

It's clear that supporting Maui's recovery and addressing the increasing risk of wildfires as our climate changes will take a whole of society approach. We're seeing this whole of society view reflected in the One Ohana initiative Governor Josh Green announced last fall and in our state's legislative session that is now underway. One Ohana lays out a holistic framework 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 invest in wildfire mitigation and keep our communities safe.

很明顯，支持毛伊島的恢復並解決隨著氣候變遷而增加的野火風險將需要全社會的參與。我們看到整個社會的觀點反映在州長喬許·格林去年秋天宣布的「One Ohana」倡議以及目前正在進行的本州立法會議中。 One Ohana 制定了一個整體框架，以支持毛伊島的恢復，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，我們能夠吸引投資於減輕野火並確保我們社區安全所需的資金。

Governor Green has also stated his intention for our state to avoid protracted legal conflicts, which could not only jeopardize Hawaii's energy future, but could also severely delay reconstruction and economic recovery. The intentions of One Ohana align with our company's values and priorities. Under One Ohana, many parties are working together to find solutions to help the families most impacted by the fires, reduce the risk of catastrophic wildfires and provide economic stabilization for the state.

格林州長也表示，他希望我們州避免曠日持久的法律衝突，這不僅會危及夏威夷的能源未來，還可能嚴重推遲重建和經濟復甦。 One Ohana 的意圖與我們公司的價值觀和優先事項一致。在 One Ohana 的領導下，多方正在共同努力尋找解決方案，幫助受火災影響最嚴重的家庭，降低災難性野火的風險，並為該州提供經濟穩定。

Meaningful progress has been made towards these goals in just the 3 months since One Ohana was announced. The Maui Recovery Fund, one aspect of the Governor's One Ohana initiative, provides an alternative to litigation for families who have lost a loved one and those who are severely injured in the Maui fires. It now has $175 million of commitments and is targeting a March 1 launch. Hawaiian Electric will contribute up to $75 million, and the State of Hawaii, Maui County, Kamehameha Schools, Spectrum and Hawaiian Telcom have committed to contribute the remainder.

自 One Ohana 宣布以來的短短 3 個月內，我們在實現這些目標方面取得了有意義的進展。毛伊島恢復基金是州長 One Ohana 倡議的一個方面，為失去親人的家庭和在毛伊島火災中受重傷的家庭提供了訴訟之外的另一種選擇。目前該公司已承諾投入 1.75 億美元，並計劃於 3 月 1 日發布。 Hawaiian Electric 將出資最多 7,500 萬美元，夏威夷州、毛伊縣、卡美哈美哈學校、Spectrum 和 Hawaiian Telcom 已承諾出資剩餘部分。

The speed at which this first fund has come together is encouraging. And as the governor has said, it will help with healing and help everyone move forward. The next phase of this process will seek to support property owners and businesses who have been severely impacted by the fire. As part of the One Ohana framework, Governor Green also laid out intentions to explore legislative solutions to address not only Maui's recovery, but also measures for a state to address the impacts of increasingly severe weather events going forward. The legislative session began last month, and in the range of bills that have been introduced, we're seeing a whole of society approach to ensuring our state utilities and communities have the tools needed to address the challenges we face. We're focused on bills that would establish a fund for property owners to recover damages from future catastrophic wildfires, wildfire risk mitigation planning requirements overseen by the Public Utilities Commission, along with cost recovery for implementing approved plans, and securitization as a financing option.

第一個基金的組成速度令人鼓舞。正如州長所說，這將有助於康復並幫助每個人前進。過程的下一階段將尋求支持受火災嚴重影響的業主和企業。作為「One Ohana」框架的一部分，格林州長還提出了探索立法解決方案的意圖，不僅要解決毛伊島的復甦問題，還要製定該州應對未來日益嚴重的天氣事件影響的措施。立法會議於上個月開始，在已提出的一系列法案中，我們看到了全社會的努力，以確保我們的國家公用事業和社區擁有應對我們面臨的挑戰所需的工具。我們重點關注為業主建立基金以彌補未來災難性野火損失的法案、公共事業委員會監督的野火風險緩解規劃要求、實施批准計劃的成本回收以及作為融資選擇的證券化。

The Office of the Governor has expressed the importance of legislation that can help stabilize the electric utility and Hawaii's energy future. His administration has proposed a bill that requires the utility to develop a wildfire mitigation plan overseen by the Public Utilities Commission and also includes securitization as a tool to finance wildfire safety and recovery. Dozens of bills have been introduced to address other aspects of wildfire risk more broadly. The legislature is considering bills that would establish a state fire marshal, a State Wildfire Field Reduction Task Force, a Wildfire Safety Advisory Board and a state firefighting helicopter program, to name a few examples. It's still early in the legislative process, and bills can undergo significant changes over the legislative session, which will run through early May. However, I'm pleased to see commitment among so many in Hawaii to urgently address the risks wildfires and other extreme weather events posed to our state.

州長辦公室表達了立法的重要性，這有助於穩定電力公司和夏威夷的能源未來。他的政府提出了一項法案，要求公用事業公司製定由公用事業委員會監督的野火緩解計劃，並包括證券化作為為野火安全和恢復提供資金的工具。已經提出了數十項法案，以更廣泛地解決野火風險的其他方面。立法機關正在考慮建立州消防隊長、州野火現場減少工作小組、野火安全諮詢委員會和州消防直升機計畫等法案。目前仍處於立法進程的早期階段，法案可能會在五月初的立法會議期間發生重大變化。然而，我很高興看到夏威夷這麼多人承諾緊急解決野火和其他極端天氣事件對我們州的風險。

We also continue to work through the litigation process. As of February 12, Hawaiian Electric Company has been named as a defendant in 101 lawsuits by plaintiffs claiming losses related to the August 8 windstorm and wildfires, and HEI has been named in 101 as well. Most of these lawsuits have been removed from the state court to federal court, but jurisdiction is still in the process of being settled. Certain milestone dates that were set earlier by the State Court, such as when we'll need to file counter claims, are no longer in effect and will be revisited once jurisdiction is settled.

我們也將繼續完成訴訟程序。截至2月12日，夏威夷電力公司已被原告列為101起訴訟中的被告，這些訴訟聲稱與8月8日的風暴和山火有關的損失，HEI也被列為101起訴訟中的被告。這些訴訟大部分已從州法院轉移至聯邦法院，但管轄權仍在確定過程中。州法院早些時候設定的某些里程碑日期（例如我們需要反訴的時間）不再有效，一旦管轄權確定，我們將重新審視這些日期。

Subrogation claims from about 150 different insurers with exposure on Maui have also been filed, and we'll respond to those complaints once they are served on us. Turning to the next slide. Our utility received several constructive regulatory decisions in recent months that support our efforts to strengthen the resiliency of our system while we continue to advance Hawaii's clean energy goals. Earlier this month, Hawaiian Electric received PUC approval for their 5-year $190 million grid resilience plan. The plan includes a slate of foundational resilience investments as the first phase of a long-term climate adaptation effort that will help harden the utilities grids against severe weather-related events fueled by climate change. This approval enables the utility to move forward with $95 million in Department of Energy Infrastructure Investment and Jobs Act funding by matching it with $95 million in rate recovery.

來自大約 150 家在毛伊島有業務的不同保險公司也提出了代位求償索賠，我們將在收到這些投訴後立即回應。轉到下一張投影片。近幾個月來，我們的公用事業公司收到了幾項建設性的監管決定，這些決定支持我們在繼續推進夏威夷清潔能源目標的同時加強系統彈性的努力。本月早些時候，夏威夷電力公司 (Hawaiian Electric) 的 5 年期 1.9 億美元電網恢復計畫獲得了 PUC 的批准。該計劃包括一系列基礎復原力投資，作為長期氣候調適努力的第一階段，這將有助於加強公用事業電網抵禦氣候變遷引發的惡劣天氣相關事件的影響。這項批准使該公用事業公司能夠透過與 9,500 萬美元的費率回收相匹配的能源基礎設施投資和就業法案資金來推進 9,500 萬美元。

The utility also received several important regulatory decisions prior to 2023 year-end, including approvals to defer costs associated with the Maui wildfires and to recover $8.8 million in previously deferred costs from the COVID-19 pandemic. Our approximately $82 million Waena battery energy storage project on Maui was also approved. This is a critical project for ensuring adequacy of supply on the island.

該公用事業公司還在 2023 年底之前收到了幾項重要的監管決定，包括批准推遲與毛伊島野火相關的成本，以及收回先前因 COVID-19 大流行而推遲的 880 萬美元成本。我們位於毛伊島的約 8,200 萬美元的 Waena 電池儲能專案也獲得了批准。這是確保島上供應充足的關鍵項目。

The utility has continued to progress its Stage 3 RFP, its largest renewables procurement ever. Contract negotiations are in process with the developers of 16 renewable energy projects across our islands. The projects will further reduce Hawaii's dependence on imported oil for power generation. The negotiations are expected to produce long-term contracts for approximately 517 megawatts of variable generation, 694 megawatts of firm renewable generation and 2.1 gigawatt hours of storage.

該公用事業公司繼續推進其第三階段招標，這是其有史以來最大的可再生能源採購。我們正在與島上 16 個再生能源項目的開發商進行合約談判。這些項目將進一步減少夏威夷發電對進口石油的依賴。預計談判將達成約 517 兆瓦可變發電、694 兆瓦穩定再生發電和 2.1 吉瓦時儲能的長期合約。

As we've discussed previously, the utility's own 253-megawatt Waiau repowering project on Oahu was selected in the RFP. The project will be built at the site of Hawaiian Electric's existing 85-year-old facility, and could potentially use renewable gas or hydrogen when it becomes commercially available. The utility is working closely with the Department of Energy on federal loan funding options to help fund the project. We are also pursuing additional federal funding sources, including nearly $450 million of grants for grid resilience, modernization and innovation for investments to increase resilience to natural hazards, including wildfires.

正如我們之前討論的，該公用事業公司自己的歐胡島 253 兆瓦 Waiau 改造項目在 RFP 中被選中。該項目將建在 Hawaiian Electric 已有 85 年歷史的現有設施所在地，當可再生天然氣或氫氣投入商業使用時，可能會使用該設施。該公用事業公司正在與能源部就聯邦貸款融資方案密切合作，以幫助為該項目提供資金。我們也正在尋求額外的聯邦資金來源，包括近 4.5 億美元的贈款，用於電網復原力、現代化和投資創新，以提高對包括野火在內的自然災害的抵禦能力。

In December, the utility connected the world's most advanced battery energy storage system to Oahu's grid. The Kapolei energy storage battery plant provides 185 megawatts of total power capacity and 565-megawatt hours of energy. And this is the first time a stand-alone battery has provided grid-forming services at this scale. We're pleased with the utility's continued progress towards a clean energy powered grid and encouraged by the constructive regulatory and federal government engagement on Hawaii's clean energy future.

12 月，該公用事業公司將世界上最先進的電池儲能係統連接到歐胡島的電網。卡波雷儲能電池廠提供185兆瓦的總發電量和565兆瓦時的能源。這是第一次由獨立電池提供如此規模的併網服務。我們對公用事業公司在清潔能源電網方面不斷取得的進展感到高興，並受到建設性監管和聯邦政府對夏威夷清潔能源未來的參與的鼓舞。

I'm also pleased to announce that we recently reached agreement with our union, IBEW 1260, on a new 3-year contract effective through October 2027. The contract provides stability and visibility as we continue performing critical work to modernize our generation system and make our electric grids more resilient.

我還很高興地宣布，我們最近與工會IBEW 1260 就一份新的3 年期合約達成協議，該合約有效期至2027 年10 月。該合約為我們繼續開展關鍵工作以實現發電系統現代化並使我們的發電系統現代化提供了穩定性和可見性。我們的電網更有彈性。

Turning now to our financial results. Our core operations have continued to perform in line with expectations, while we work alongside others in the Maui reconstruction efforts. On a consolidated basis, 2023 net income was $199.2 million, and earnings per share was $1.81. This included about $14 million of Maui wildfire-related expenses net of insurance recoveries and deferrals and a loss on the sale of securities of $11 million resulting from a strategic balance sheet repositioning at the bank. Excluding these items, core net income was $224 million, and EPS was $2.04, down about 5% compared to last year's core net income, which excludes the gain on sale of an equity method investment recorded in 2022 at Pacific Current.

現在轉向我們的財務表現。我們的核心業務繼續符合預期，同時我們與其他人一起參與毛伊島的重建工作。合併後，2023 年淨利為 1.992 億美元，每股收益為 1.81 美元。其中包括約 1,400 萬美元的毛伊島野火相關費用（扣除保險賠償和延期費用）以及因銀行戰略性資產負債表重新定位而導致的 1,100 萬美元證券銷售損失。不包括這些項目，核心淨利潤為2.24億美元，每股收益為2.04美元，比去年的核心淨利潤下降約5%，其中不包括Pacific Current在2022年記錄的權益法投資出售收益。

Utility net income and EPS were $194 million and $1.76 or $195.1 million and $1.77 on a core basis, up about 3% compared to 2022. Bank net income and EPS were $53.4 million and $0.48. Excluding wildfire-related expenses and the securities loss, core net income was $72.6 million and EPS was $0.66, down from $80 million and $0.73 last year. At the holding company level, the net loss of $48.1 million in 2023 was up from $27.8 million in the prior year and included $4.7 million of wildfire-related expenses. Excluding these expenses, core net loss was $43.4 million, and core EPS loss was $0.39.

公用事業淨收入和每股收益分別為1.94 億美元和1.76 美元，核心基礎上分別為1.951 億美元和1.77 美元，比2022 年增長約3%。銀行淨收入和每股收益分別為5,340 萬美元和0.48 美元。不包括野火相關費用和證券損失，核心淨利潤為 7,260 萬美元，每股收益為 0.66 美元，低於去年的 8,000 萬美元和 0.73 美元。在控股公司層面，2023 年的淨虧損為 4,810 萬美元，高於上一年的 2,780 萬美元，其中包括 470 萬美元的野火相關費用。不包括這些費用，核心淨虧損為 4,340 萬美元，核心每股收益虧損為 0.39 美元。

Turning to the bank. ASB's business proved resilient through the economic impacts of the Maui wildfires and the challenging interest rate environment experienced in 2023. ASB's loyal and long tenured deposit base remained stable during the year. And as of December 31, 86% of deposits were FDIC insured were fully collateralized. Customer deposits are safe, and there is no risk to customer deposits as a result of legal claims related to the wildfires. Asset quality remains strong, and the Hawaii market continues to be characterized by strong credit quality and low delinquency rates in comparison to the mainland. The bank's capital remains strong with ample liquidity and lending capacity.

轉向銀行。事實證明，ASB 的業務在毛伊島野火的經濟影響和 2023 年經歷的充滿挑戰的利率環境中具有韌性。ASB 忠誠且長期的存款基礎在這一年保持穩定。截至 12 月 31 日，86% 的 FDIC 承保存款均已全額抵押。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。資產品質仍然強勁，與大陸相比，夏威夷市場的特點仍然是信用品質高、拖欠率低。該行資本實力依然雄厚，流動性和放款能力充裕。

The sale of investment securities executed in the fourth quarter positions ASB for improved profitability and net interest margin while strengthening the balance sheet. In the fourth quarter, the bank sold low-yielding securities and reduced high-cost deposits with proceeds. Scott Deghetto will discuss the transaction in greater detail. ASB has continued to support the Maui community at a time when they most need us, and the bank has provided numerous options for our Maui customers facing financial hardship as a result of the fires, including waived ATM fees, forbearance and deferment for commercial and consumer loans and emergency personal lines of credit.

第四季執行的投資證券出售使 ASB 能夠提高獲利能力和淨息差，同時強化資產負債表。第四季度，該銀行出售了低收益證券，並用收益減少了高成本存款。 Scott Deghetto 將更詳細地討論該交易。 ASB 在毛伊島社區最需要我們的時候繼續為他們提供支持，該銀行為因火災而面臨財務困難的毛伊島客戶提供了多種選擇，包括免除 ATM 費用、商業和消費者的寬恕和延期貸款和緊急個人信用額度。

In addition, the bank has provided $135,000 of charitable contributions to support the Maui community and has partnered with the Hawaii Restaurant Association, the Hawaii Bankers Association and others to provide donations and other resources for Maui residents during this difficult time. We are optimistic regarding Hawaii's economic outlook, and the economy has proved resilient following the wildfires in August.

此外，該銀行還提供了 135,000 美元的慈善捐款來支持毛伊島社區，並與夏威夷餐廳協會、夏威夷銀行家協會等合作，在這段困難時期為毛伊島居民提供捐款和其他資源。我們對夏威夷的經濟前景持樂觀態度，在八月的山火之後，經濟已證明具有彈性。

Hawaii's statewide seasonally adjusted unemployment rate was 2.9% in December and continues to outperform the U.S. average of 3.7%. The University of Hawaii Economic Research Organization, or UHERO, forecasts that the state unemployment rate will remain low at 2.5% in 2024. UHERO's latest outlook is an improvement compared to their outlook immediately following the wildfires. UHERO had initially predicted a more prolonged recovery, estimating that Maui's visitor arrivals would be 50% of the previous years, and Maui unemployment would be over 10%. Maui's unemployment rate was around 5% as of year-end. And in the month of December, visitor arrivals to Maui were 75% of the previous years.

12 月夏威夷全州經季節性調整的失業率為 2.9%，持續高於美國 3.7% 的平均值。夏威夷大學經濟研究組織 (UHERO) 預測，2024 年該州失業率將保持在 2.5% 的低水平。UHERO 的最新展望與山火剛發生後的展望相比有所改善。 UHERO 最初預測復甦時間會更長，估計毛伊島的遊客人數將是前幾年的 50%，毛伊島的失業率將超過 10%。截至年底，毛伊島的失業率約為 5%。 12月份，毛伊島的遊客人數是往年的75%。

Total statewide arrivals for the year were 90% of pre-pandemic levels. Despite the economic impacts from the Maui wildfires, statewide visitor spending for the full year was up over 2022. Visitor spending increased 5.5% to $20.8 billion in 2023. This is well above pre-pandemic levels by almost 20% despite Japanese visitor arrivals being at about half of pre-pandemic levels.

今年全州入境總人數為疫情前水準的 90%。儘管毛伊島野火對經濟造成影響，但全州全年遊客支出比 2022 年有所增長。2023 年遊客支出增長 5.5%，達到 208 億美元。儘管日本遊客入境人數為約為大流行前水平的一半。

Real estate values in Hawaii remain consistently strong. In December, the Oahu median single-family home price was over $1 million. And the median condo sales price was just under $510,000. Home sales volumes were down year-over-year, but we're encouraged to see the recent decline in mortgage rates. Hawaii's market continues to be characterized by limited inventory and stable prices, supported by limited land available for property development. I'll now hand it off to Scott Deghetto to walk through our financial results in more detail.

夏威夷的房地產價值始終保持強勁。 12 月，歐胡島單戶住宅中位數超過 100 萬美元。公寓銷售價格中位數略低於 51 萬美元。房屋銷售量較去年同期下降，但我們很高興看到抵押貸款利率最近下降。在可用於房地產開發的土地有限的支持下，夏威夷市場的特徵仍然是庫存有限且價格穩定。現在我將把它交給 Scott Deghetto，讓他更詳細地介紹我們的財務表現。

Thank you, Scott. I'll start with our results for the year on Slide 8. We earned consolidated net income of $199.2 million and EPS of $1.81 for the full year. That included $14.1 million or about $0.13 per share of wildfire-related expenses net of insurance recoveries and deferrals and $11 million or $0.10 per share from a loss on a sale of securities at the bank resulting from the bank's balance sheet repositioning. Excluding those nonrecurring expenses, core net income and EPS were $224.3 million and $2.04 compared to $235 million and $2.14 in 2022.

謝謝你，斯科特。我將首先在幻燈片 8 上介紹我們今年的業績。我們全年的綜合淨利潤為 1.992 億美元，每股收益為 1.81 美元。其中包括1,410 萬美元，即每股約0.13 美元的野火相關費用（扣除保險賠償和延期費用），以及因銀行資產負債表重新定位而導致銀行出售證券的損失，即1,100 萬美元，即每股0.10美元。不包括這些非經常性費用，核心淨利和每股盈餘分別為 2.243 億美元和 2.04 美元，而 2022 年為 2.35 億美元和 2.14 美元。

Utility net income included $1.1 million of windstorm and wildfire-related impacts, bank net income included $8.3 million and the holding company and Other segment included $4.7 million of these costs. In December, the PUC granted the utility's request for deferral treatment of windstorm and wildfire-related incremental nonlabor expenses. And as a result, the utility deferred $10.9 million of after-tax O&M expenses in 2023. In total, the utility's incremental after-tax Maui windstorm and wildfire-related expenses of $1.1 million were comprised of $29.6 million of expenses, net of $17.5 million of insurance-related recoveries and the $10.9 million in deferred costs.

公用事業淨收入包括 110 萬美元的風暴和野火相關影響，銀行淨收入包括 830 萬美元，控股公司和其他部門包括 470 萬美元的這些成本。 12 月，公用事業公司批准了公用事業公司推遲處理與風暴和野火相關的增量非人工費用的請求。因此，該公用事業公司推遲了2023 年1,090 萬美元的稅後營運和維護費用。總的來說，該公用事業公司與毛伊島風暴和野火相關的增量稅後費用為110 萬美元，其中包括2,960 萬美元的費用（扣除1,750 萬美元）與保險相關的追償和 1,090 萬美元的遞延費用。

As mentioned, the bank executed a balance sheet repositioning in the fourth quarter that resulted in an $11 million after-tax loss on the sale of investment securities. This resulted from a strategic sale of $185 million of low-yielding assets, with proceeds used to reduce ASB's highest cost source of funding, which was certificates of deposit. The transaction is expected to improve this year's net interest income and net interest margin. In addition, lower asset levels will allow ASB's leverage ratio to improve faster.

如前所述，該銀行在第四季度執行了資產負債表重新定位，導致投資證券銷售產生 1,100 萬美元的稅後損失。這是由於策略性出售了 1.85 億美元的低收益資產，所得收益用於減少 ASB 成本最高的資金來源，即存單。該交易預計將改善今年的淨利息收入和淨利差。此外，較低的資產水準將使ASB的槓桿率提高得更快。

On a consolidated basis, core ROE remains healthy at 9.9%, excluding wildfire impacts and the loss on sale of securities. This is down from 10.2% core ROE last year due primarily to lower bank earnings and a higher holding company loss. Utility core ROE was flat at 8.2%, excluding wildfire impacts, and Bank core ROE was up 80 basis points to 14.9%, excluding wildfire impacts. The higher Bank ROE reflects the impacts of higher interest rates to Bank AOCI, which reduces shareholders' equity. The approximately $0.04 increase in the Utility's EPS contribution was the result of a $0.28 increase in revenues, primarily from the annual revenue adjustment and major project interim recovery mechanisms, a $0.05 increase in AFUDC and a $0.04 increase from the fuel cost risk-sharing mechanism. These increases were partially offset by a $0.24 increase in O&M expense, a $0.06 increase in depreciation, $0.03 of higher interest expense and about $0.01 per share of incremental wildfire costs, net of insurance recoveries and deferred costs.

綜合來看，核心股本回報率維持在 9.9% 的健康水平，不包括野火影響和證券銷售損失。這比去年 10.2% 的核心股本回報率有所下降，主要是由於銀行獲利下降和控股公司虧損增加。扣除山火影響後，公用事業核心股本回報率持平於 8.2%，扣除山火影響後，銀行核心股本回報率上升 80 個基點，達到 14.9%。銀行 ROE 較高反映了利率上升對銀行 AOCI 的影響，從而減少了股東權益。公用事業公司的 EPS 貢獻增加了約 0.04 美元，這是由於收入增加了 0.28 美元，主要來自年度收入調整和主要項目臨時回收機制，AFUDC 增加了 0.05 美元，燃料成本風險分擔機制增加了 0.04 美元。這些增長被營運和維護費用增加 0.24 美元、折舊增加 0.06 美元、利息費用增加 0.03 美元以及每股約 0.01 美元的增量野火成本（扣除保險賠償和遞延成本）部分抵消。

The approximately $0.25 decrease in ASB's EPS contribution was driven by the $0.10 loss from the bank's balance sheet repositioning, $0.09 of higher noninterest expenses, $0.08 of wildfire-related expenses, including $0.04 of additional provision recorded in Q3, and $0.02 of higher provision, partially offset by a $0.03 increase in noninterest income. Holding company and other segment expenses were higher by about $0.19 per share, consisting of $0.04 in wildfire expenses, $0.05 from lower Pacific Current asset performance, $0.04 of interest expense and a $0.06 negative variance due to the 2022 gain on sale of an equity investment at Pacific Current.

ASB 的每股盈餘貢獻減少約0.25 美元，原因是該銀行資產負債表重新定位造成0.10 美元的損失、非利息費用增加0.09 美元、野火相關費用0.08 美元（包括第三季記錄的額外準備金0.04 美元以及準備金增加0.02 美元）。被非利息收入增加 0.03 美元所抵銷。控股公司和其他部門費用每股增加約 0.19 美元，其中包括 0.04 美元的野火費用、0.05 美元的太平洋流動資產業績下降、0.04 美元的利息費用以及 2022 年出售股權投資收益產生的 0.06 美元的負差異。太平洋洋流。

Turning to our liquidity on Slide 10. We continue to believe that we have sufficient liquidity runway as we work through the timing and potential impacts of litigation related to the Maui wildfires. As of the end of fourth quarter, the holding company and the utility had $137 million and $106 million of cash on hand, respectively. In addition, we continue to pursue additional financing through an accounts receivable facility at the utility, which we expect will provide $200 million to $250 million of additional liquidity.

轉向幻燈片 10 上的流動性。我們仍然相信，在我們研究與毛伊島野火相關的訴訟的時間安排和潛在影響時，我們擁有足夠的流動性跑道。截至第四季末，控股公司和公用事業公司手頭現金分別為 1.37 億美元和 1.06 億美元。此外，我們繼續透過公用事業公司的應收帳款融資尋求額外融資，預計這將提供 2 億至 2.5 億美元的額外流動性。

Last week, Hawaiian Electric's Board of Directors declared a $13 million quarterly cash dividend to HEI. With the suspension of HEI's dividend to our common shareholders, cash needs at the HEI parent company are limited relative to cash needs prior to the dividend suspension. Rightsizing the utility's dividend to HEI allows more cash to be kept at the utility, supporting its ability to perform needed restoration work in West Maui and make critical capital investments for wildfire mitigation and in other electrical infrastructure while capital markets access remains constrained.

上週，夏威夷電力公司董事會宣布向 HEI 派發 1,300 萬美元的季度現金股利。隨著哈電國際暫停向普通股股東派發股息，哈電國際母公司的現金需求相對於暫停派息之前的現金需求有限。調整公用事業公司對HEI 的股息規模，可以讓公用事業公司保留更多現金，支持其在毛伊島西部開展所需恢復工作的能力，並在資本市場准入仍然受到限制的情況下，為緩解野火和其他電力基礎設施進行關鍵資本投資。

In closing, I want to acknowledge what a challenging year 2023 was for our community, our employees and our shareholders. We will continue taking the right steps in working collaboratively with our community, regulators and lawmakers to remain a financially healthy enterprise best positioned to support the needs of our customers in the state. And with that, let's open up the call to questions.

最後，我想承認 2023 年對我們的社區、員工和股東來說是充滿挑戰的一年。我們將繼續採取正確的步驟與我們的社區、監管機構和立法者合作，以保持財務健康的企業能夠最好地支持該州客戶的需求。接下來，讓我們開始提問。

(Operator Instructions) Your first question comes from Michael Lonegan with Evercore.

（操作員說明）您的第一個問題來自 Evercore 的 Michael Lonegan。

So utility cash on hand decreased from $275 million at the end of the third quarter to $106 million as of year-end. I was just wondering if you could share some of the key uses of cash during the quarter? And any details you can share on your current level of CapEx and also ongoing level of investment given grid resilience, storage and other projects that are ongoing?

因此，手頭上的公用事業現金從第三季末的 2.75 億美元減少到年底的 1.06 億美元。我只是想知道您是否可以分享本季現金的一些關鍵用途？您可以分享有關當前資本支出水平以及考慮到電網彈性、儲存和其他正在進行的項目的持續投資水平的任何詳細資訊嗎？

Yes. Mike, it's Scott Deghetto. Yes. So I think when you look at the $275 million and you compare it to the $106 million, what you need to keep in mind is that the $275 million had a prefunding of the $100 million maturity. So the way I look at it is we really ended the quarter at $175 million. And so $175 million versus the $106 million. And again, as you know, there's varying capital requirements and cash requirements as you move through a business and throughout the year. And so I would just keep that in mind as you look at the end of the year number.

是的。麥克，我是史考特‧德蓋托。是的。因此，我認為，當您查看 2.75 億美元並將其與 1.06 億美元進行比較時，您需要記住的是，2.75 億美元有 1 億美元到期的預融資。所以我的看法是，我們本季結束時的實際收入為 1.75 億美元。因此，1.75 億美元與 1.06 億美元相比。再說一次，如您所知，隨著您在業務中和全年的發展，資本要求和現金要求會有所不同。因此，當您查看年末數字時，我會記住這一點。

The other thing I can tell you is, as we said on the call, we're working through the accounts receivable facility. We've retained a large global bank to work with us on that facility, and we're basically finalizing that as we speak. And we'll be filing with the PUC in the not-too-distant future to get formal approval for that facility.

我可以告訴你的另一件事是，正如我們在電話中所說，我們正在透過應收帳款設施進行工作。我們已經聘請了一家大型全球銀行與我們合作開展該設施，就在我們發言的時候，我們基本上已經敲定了這一點。我們將在不久的將來向 PUC 提交申請，以獲得該設施的正式批准。

Great. And then secondly for me, on the Maui Recovery Fund, do you have a sense or expectation of the participation in it? And could there be upside to the $175 million between now and launch on March 1?

偉大的。其次，對於毛伊島復甦基金，您是否有參與的感覺或期望？從現在到 3 月 1 日推出，這 1.75 億美元還有上升空間嗎？

Mike, this is Scott Seu. At this stage, we don't have any projections for the potential uptake. I mean, the sizing of the fund and the consideration of payments of $1.5 million per claim. We're hopeful. I think the Governor's office is trying to get the word out about why this provides an attractive option for claimants to litigation. At this stage, we won't be able to tell you until the fund is actually launched on March 1.

麥克，這是史考特·蘇。現階段，我們對潛在的採用率並沒有任何預測。我的意思是，基金規模和每項索賠 150 萬美元的付款考慮。我們充滿希望。我認為州長辦公室正在試圖說明為什麼這為訴訟索賠人提供了一個有吸引力的選擇。現階段，我們要等到基金在 3 月 1 日真正推出後才能告訴您。

Your next question comes from Jonathan Reeder with Wells Fargo.

您的下一個問題來自富國銀行的喬納森·里德。

So I was just kind of curious, as currently being considered in the legislature, like -- can you discuss how the governor sponsored bill, the HB-2407 like does or does not potentially mitigate any of HECO's potential liabilities related to the August 2023 Maui wildfires?

所以我只是有點好奇，正如立法機關目前正在考慮的那樣，您能否討論一下州長發起的法案（HB-2407 之類）如何或不潛在地減輕HECO 與2023 年8 月毛伊島相關的任何潛在責任野火？

Yes. Well, so the governor-sponsored bills, Jonathan, they focus on wildfire mitigation plans and allowing the utility to use securitization to pay for improvements as a result of those plans. I would say that those bills as currently drafted are forward-looking. I think the governor in one of the testimonies on one of the other bills made the point that as we consider these bills that are more forward-looking with respect to wildfire mitigation strategies, securitization, even a wildfire relief fund, it's still noted that we all still have to work through the issues of resolving the claims from last August.

是的。好吧，喬納森，州長發起的法案重點關注野火緩解計劃，並允許公用事業公司利用證券化來支付這些計劃帶來的改進費用。我想說，目前起草的這些法案是具有前瞻性的。我認為州長在關於其他法案之一的證詞中指出，當我們認為這些法案在野火緩解策略、證券化、甚至野火救濟基金方面更具前瞻性時，我們仍然注意到，我們一切仍需解決去年八月以來的索賠問題。

We talked a lot about fund #1 already. Suffice to say that there is active discussions happening right now with respect to claims dealing with property damage, business losses and the like. So the long and short of it is the bills are predominantly forward-looking, albeit there is still capacity to think about funds, securitization and the like, which could possibly apply towards past claims. But most of the bills' focus is on a forward-looking basis.

我們已經討論了很多關於基金#1 的問題。可以說，目前正在就涉及財產損失、商業損失等的索賠進行積極的討論。因此，總而言之，這些法案主要是前瞻性的，儘管仍有能力考慮基金、證券化等問題，這可能適用於過去的索賠。但大多數法案的重點都是前瞻性的。

Okay. So I mean, in terms of any specific legislative proposals that would be more related to the wildfires themselves. At this point, there's nothing it's more related to, I guess, the One Ohana recovery funds?

好的。所以我的意思是，就任何與野火本身更相關的具體立法提案而言。在這一點上，我想，沒有什麼比 One Ohana 恢復基金更相關的了？

Well, I would say this. I would think about it this way, Jonathan. The One Ohana, specifically on fund 2, there are any number of options available when you consider what the sources of funding might be, which could include, for example, anything ranging from securitization if it's deemed appropriate. It could include -- thinking from the HEI perspective, shareholder contributions. It could include use of insurance funds. Governor has also mentioned potential philanthropy. So I'd say that for fund 2, it is still a -- we're working through a number of different options. And there could very well be some overlap or interplay with some of the bills that are being considered. It's still very early in the process for the legislative bills.

嗯，我會這麼說。我會這樣想，喬納森。 One Ohana，特別是基金 2，當您考慮資金來源時，可以有多種選擇，例如，如果認為合適的話，可以包括從證券化到證券化的任何內容。它可能包括——從高等教育機構的角度思考，股東的貢獻。它可能包括保險資金的使用。州長也提到了潛在的慈善事業。所以我想說，對於基金 2，它仍然是——我們正在研究許多不同的選擇。正在考慮的一些法案很可能存在重疊或交互作用。立法法案的進程還處於早期階段。

Okay. When does the legislative session in -- I mean, when you're saying it's early in the process?

好的。我的意思是，當你說立法會議還處於早期階段時，立法會議什麼時候舉行？

Yes. It will end in May. But I would say that the next significant milestones in the legislature are first crossover on March 7. And then later on, second crossover is April 11. Crossover is very important because at that point, that's when you will see what one House or the House or the Senate, where they ultimately land on the initially proposed bills.

是的。將於五月結束。但我想說，立法機構的下一個重要里程碑是3 月7 日的第一次交叉。然後，第二次交叉是4 月11 日。交叉非常重要，因為那時你會看到一個或多個眾議院或參議院，他們最終在參議院提出最初提出的法案。

Okay. That helps. Any further insight into when like the results of the ATF-led investigation into the cause of the fire, even the Hawaii AG's investigation will be finalized and shared?

好的。這有幫助。任何進一步的見解，例如 ATF 領導的火災原因調查結果，甚至夏威夷總檢察長的調查何時會最終確定並分享？

Yes. We don't have any further updates, Jonathan, from what we talked about last quarter at that point. There was still no hard and fast schedule for the ATF Maui Fire Department investigation. And the State Attorney General's investigation, I think as we talked about last time, they had been initially planning to share some initial results back in December, but there were some delays as they needed to get more information from Maui County. So we still don't know of any further updates to their timing either.

是的。喬納森，我們沒有關於上個季度當時討論的任何進一步更新。 ATF 毛伊島消防局的調查仍然沒有硬性規定的時間表。至於州總檢察長的調查，我想正如我們上次談到的那樣，他們最初計劃在 12 月分享一些初步結果，但由於需要從毛伊縣獲取更多資訊而出現了一些延誤。所以我們仍然不知道他們的時間有任何進一步的更新。

Okay. And then I guess, based on the lawsuits filed and maybe just the time that's passed since the wildfires, do you have any sense of what the total damages may be, excluding obviously any potential punitive damages? Like, for instance, I think the state has disclosed that residential property losses claimed through at least the end of November amount to just over $1.5 billion.

好的。然後我想，根據提起的訴訟，也許只是野火以來所經過的時間，您是否知道總損失可能是多少，顯然不包括任何潛在的懲罰性損失？例如，我認為該州已經披露，至少到 11 月底索賠的住宅財產損失總額剛剛超過 15 億美元。

Yes. We don't have any additional information beyond that, Jonathan.

是的。除此之外，我們沒有任何其他信息，喬納森。

Okay. Great. Now I know you're still working through all that. So good luck as you go through the process, and interested to see how it all plays out. I appreciate you taking the questions.

好的。偉大的。現在我知道你仍在努力解決這一切。祝你在整個過程中好運，並有興趣看看這一切是如何進行的。感謝您提出問題。

Your next question comes from Paul Patterson with Glenrock Associates.

您的下一個問題來自 Glenrock Associates 的 Paul Patterson。

So, Jonathan asked a lot of my questions. But -- but just sort of following up on a few of them. Do we have -- I know it's still kind of early, but you were talking about the wildfire mitigation going forward kind of efforts and what have you, do we have any sense or do you guys have any sense about what the size of that might be or when we might get a better picture as to -- as to what your -- when we might get a better idea about what that would be?

所以，喬納森問了我很多問題。但是——只是對其中一些進行跟進。我們是否有——我知道現在還為時過早，但你們談論的是未來的野火緩解工作，你們有什麼，我們是否有任何感覺，或者你們是否有任何感覺，了解其規模可能有多大或者什麼時候我們可以更了解──關於你的──什麼時候我們可以更了解那會是什麼？

Paul, I think you're asking about the proposed wildfire relief fund. Is that correct?

保羅，我想你問的是擬議的野火救援基金。那是對的嗎？

It's actually just what -- if there's any idea about what the -- what the level of mitigation expenditures might have to be? Do we have any sense as to when we'll get a better picture as opposed to the funding for it? Just what the actual amount might be. Do you follow what I'm saying?

實際上，如果有任何想法的話，緩解支出的水平可能必須是多少？我們是否知道什麼時候才能獲得更好的畫面而不是資金？實際金額可能是多少。你聽懂我說的了嗎？

Yes, I think so. That would still -- that still needs to be determined, Paul. One component of that is actually sizing what the overall wildfire risk would be to the states. And I know that there has been discussion and part of some of the proposals are to do and from an actuarial perspective, doing a risk assessment, which will help size the overall risk and what the fund and potential investments could be. At the utility, of course, it will continue to do its own work looking at its wildfire mitigation plans, and that analysis is still in process and will play out.

是的，我想是這樣。這仍然需要確定，保羅。其中一個組成部分實際上是評估各州的整體野火風險。我知道已經進行了討論，其中一些建議的一部分是從精算的角度來看，進行風險評估，這將有助於確定整體風險以及基金和潛在投資的規模。當然，在公用事業公司，它將繼續進行自己的工作，研究其野火緩解計劃，並且該分析仍在進行中並將進行。

Okay. And then in terms of the bank and the sale, this balance sheet repositioning, what will be -- could you just give a little bit more of a description as to the high-cost loans and what have you that you were paying down? Like what was the cause of the -- like when did they occur? Just if you could give a little bit more flavor on that, that would be helpful.

好的。然後就銀行和出售而言，資產負債表的重新定位，您能否對高成本貸款以及您要償還的貸款進行更多描述？例如是什麼原因造成的──例如它們什麼時候發生的？如果你能在這方面多加一點品味，那就有幫助了。

Yes. Paul, this is Ann Teranishi. The funds -- the proceeds from the sale were used to pay our highest cost funding, which were public CDS.

是的。保羅，這是寺西安。這些資金－出售所得的收益被用來支付我們成本最高的資金，即公共 CDS。

And when did those CDS -- when -- what's the tenor on them? In other words, are they recently issued CDS? Just sort of -- so that high cost? Just a little surprised.

這些 CDS 是什麼時候——什麼時候——它們的主旨是什麼？換句話說，它們是最近發行的 CDS 嗎？只是有點——成本那麼高？只是有點驚訝。

Yes. So the public funds were yielding 5.6%, and they were 60 to 90 day certificates of deposits.

是的。因此，公共基金的收益率為 5.6%，而且是 60 至 90 天的存款單。

Okay. Okay. And then just really finally, the labor contract, can you give us a sense of the cost increases that are going to be -- that sort of the annual CAGR of what you guys negotiate with your union?

好的。好的。最後，勞動合同，您能否讓我們了解一下成本的增加—你們與工會談判的年度複合年增長率？

Paul, this is Shelee Kimura. Nice to hear from you. So we're talking about an extension, basically, of the current contract. So those would be 3% increases every year. We had a separate component for our linemen, given the market rates for linemen in our sector. And the cost increase for that should not be different. It should actually be a little bit less than what we experienced in 2023 because we had a pilot program ongoing. And so the total impact of that should be about in the same range, if not a little bit less.

保羅，這是 Shelee Kimura。很高興聽到你的消息。所以我們基本上正在討論現有合約的延期。所以每年都會增加 3%。考慮到我們行業巡線員的市場價格，我們為巡線員提供了一個單獨的組件。因此成本的增加也不應該有什麼不同。實際上應該比我們在 2023 年經歷的要少一些，因為我們正在進行試點計劃。因此，其總影響應在相同範圍內，甚至稍微小一些。

Your next question is a follow-up from Jonathan Reeder with Wells Fargo.

您的下一個問題是富國銀行喬納森·里德 (Jonathan Reeder) 的後續問題。

Perhaps I did miss it in the slide, but can you let us know how much utility funded CapEx is planned for 2024 and perhaps even over like the 2024 to 2026 period? Obviously, there's the resiliency spending, which a portion of that is going to come from the DOE funds. But it looks like you have some utility-owned repowering battery projects, stuff like that. Can you give us a sense or is that going to be laid out in the K?

也許我確實在幻燈片中錯過了這一點，但您能否告訴我們 2024 年甚至可能在 2024 年至 2026 年期間計劃有多少公用事業資助的資本支出？顯然，有彈性支出，其中一部分將來自能源部資金。但看起來你們有一些公用事業公司擁有的電池充電項目，諸如此類。你能給我們一個感覺嗎？或者這會在 K 中列出嗎？

Jonathan, this is Paul. So we are not providing guidance on CapEx. But what I would say is, as we look at our liquidity, we're managing to what we can afford in terms of our financial resources. I would say, generally, we would probably be on the lower end of what we have seen historically. As we mentioned, we are reprioritizing our spend to focus on critical things like wildfire mitigation, resilience. There will be some moderation in other areas as long as it doesn't impact public safety. But again, it's a matter of managing within our financial resources. And as Scott mentioned, we do have our facility that we're working on, we've made good progress on that. So that should provide additional capital as we operate our business going forward.

喬納森，這是保羅。因此，我們不會提供有關資本支出的指導。但我想說的是，當我們審視我們的流動性時，我們正在管理我們的財務資源所能承受的範圍。我想說，一般來說，我們可能處於歷史水平的低端。正如我們所提到的，我們正在重新調整支出的優先順序，將重點放在緩解野火、復原能力等關鍵事項上。只要不影響公共安全，其他領域也會有節制。但同樣，這是一個在我們的財務資源範圍內進行管理的問題。正如斯科特所提到的，我們確實有我們正在建造的設施，我們在這方面取得了良好的進展。因此，這將為我們未來的業務運營提供額外的資本。

There are no further questions at this time. I will now turn the call back over to Scott Seu for any closing remarks.

目前沒有其他問題。我現在將把電話轉回給 Scott Seu，讓其發表結束語。

Thank you for joining us today. And to our shareholders, thank you for your continued support and investment through these challenging times. I think that all of us here at the companies, our hearts continue to be with the people of Maui, including our many customers and of course, our own employees. So we're going to support and work alongside them every step of the way. As I said earlier, I'm encouraged by the support and collaboration that has really characterized the reconstruction efforts. And we look forward to continuing our work with the community, governor, lawmakers and others. We will chart our path forward together. So thank you very much.

感謝您今天加入我們。感謝我們的股東在這個充滿挑戰的時期給予我們的持續支持和投資。我認為我們公司的所有人，我們的心仍然與毛伊島人民在一起，包括我們的許多客戶，當然還有我們自己的員工。因此，我們將全程支持他們並與他們一起工作。正如我之前所說，我對重建工作中真正體現的支持和合作感到鼓舞。我們期待繼續與社區、州長、立法者和其他人合作。我們將共同規劃前進的道路。非常感謝。

This concludes today's conference call. Thank you for joining us. You may now disconnect.

今天的電話會議到此結束。感謝您加入我們。您現在可以斷開連線。