Hawaiian Electric Industries Inc (HE) 2024 Q3 法說會逐字稿

Good afternoon. My name is Audra, and I will be your conference operator today. At this time, I would like to welcome everyone to the third quarter 2024 Hawaiian Electric Industries Inc earnings conference call. Today's conference is being recorded. (Operator Instructions)

午安.我叫奧德拉，今天我將擔任你們的會議操作員。現在，我歡迎大家參加 Hawaiian Electric Industries Inc 2024 年第三季財報電話會議。今天的會議正在錄製中。（操作員說明）

At this time, I would like to turn the conference over to Matteo Garcia, Director of Investors Relations. Please go ahead.

這次，我想把會議交給投資者關係總監馬泰奧·加西亞(Matteo Garcia)。請繼續。

Welcome everyone to HEI's third-quarter 2024 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.

歡迎大家參加哈電國際 2024 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；寺西安 (Ann Teranishi)，美國儲蓄銀行總裁兼執行長以及其他高階管理層成員。

Our earnings release and our presentation for this call are available in 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查看。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 將開始講話。

Aloha Kakou. Welcome, everyone. For today's call, I'll start with key updates regarding the Maui wildfires and the definitive settlement agreement signed earlier this week. I'll then touch on updates at the utility, bank, and Pacific Current before turning it over to Scott DeGhetto, who will walk through our third-quarter financial results in more detail and discuss the financial implications of recent announcements. We'll then 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以及本週早些時候簽署的最終和解協議。然後，我將介紹公用事業公司、銀行和 Pacific Current 的最新情況，然後將其交給 Scott DeGhetto，他將更詳細地介紹我們的第三季財務業績，並討論最近公告的財務影響。然後我們將打開它以供提問。

On November 5, we announced that HEI, Hawaiian Electric, and other defendants entered into a definitive settlement agreement with plaintiffs in the Maui wildfire tort litigation. Finalizing the terms of this agreement is another important milestone in our efforts to offer those who suffered loss an accelerated path to recovery and regain the financial strength of our enterprise.

11 月 5 日，我們宣布 HEI、夏威夷電力公司和其他被告與毛伊島野火侵權訴訟中的原告達成最終和解協議。敲定協議的條款是我們努力為那些遭受損失的人提供加速康復之路並恢復我們企業的財務實力的另一個重要里程碑。

We're pleased to sign this final agreement just three months after reaching the initial term sheet agreement we discussed last quarter. We remain confident that this settlement represents the best outcome for our community and our company. We're moving forward with a clearer line of sight toward resolution of the wildfire-related tort litigation and increased certainty for our company's path ahead.

我們很高興在達成上季討論的初步條款清單協議僅三個月後就簽署了這份最終協議。我們仍然相信，這項和解代表了我們社區和公司的最佳結果。我們正在以更清晰的思維向前邁進，以解決與野火相關的侵權訴訟，並提高我們公司前進道路的確定性。

As previously announced under the terms of the settlement agreement, HEI and Hawaiian Electric will contribute a total of $1.99 billion pre-tax, which includes the $75 million we previously contributed to the One 'Ohana Initiative. We expect to pay the settlement amount in four equal annual installments, with the first payment expected to be made in late 2025. The settlement agreement is conditioned on a resolution of the claims of the insurance companies that have paid claims for property loss and other damages with no additional payments from defendants.

正如先前根據和解協議條款所宣布的，HEI 和 Hawaiian Electric 將總共提供 19.9 億美元的稅前資金，其中包括我們先前向 One 'Ohana Initiative 提供的 7,500 萬美元。我們預計每年分四期等額支付和解金額，第一筆款項預計將於 2025 年末支付。和解協議的條件是保險公司的索賠得到解決，保險公司已支付財產損失和其他損害賠償，被告無需額外付款。

Over the last few months, important progress has been made toward resolving the insurer's claims. On August 19, the Second Circuit Court on Maui, which is overseeing the Maui wildfire tort litigation issued an order requiring insurers to seek recovery according to Hawaii law, which requires them to assert liens against their policyholders recoveries if their policyholders settle. The Second Circuit Court subsequently requested the Hawaii Supreme Court to weigh in on the order. And on September 25, Hawaii's Supreme Court agreed to review the Circuit Court's questions.

在過去的幾個月裡，在解決保險公司的索賠方面取得了重要進展。8 月19 日，負責監督毛伊島野火侵權訴訟的毛伊島第二巡迴法院發布了一項命令，要求保險公司根據夏威夷法律尋求賠償，該法律要求他們在保單持有人和解的情況下對其保單持有人的賠償主張留置權。第二巡迴法院隨後請求夏威夷最高法院對該命令進行權衡。9 月 25 日，夏威夷最高法院同意複審巡迴法院的問題。

Opening briefs in the state Supreme Court proceeding were filed earlier this week on November 4 and reply briefs are due December 16, after which the Hawaii Supreme Court is expected to rule. We're hopeful that the Supreme Court will issue a ruling in favor of the individual plaintiffs, which would likely resolve the outstanding issue with insurers and bring us one step closer towards finalizing the settlement.

州最高法院訴訟程序的開庭簡報已於本週稍早於 11 月 4 日提交，答覆簡報將於 12 月 16 日提交，預計夏威夷最高法院隨後將做出裁決。我們希望最高法院能夠做出有利於個人原告的裁決，這可能會解決與保險公司之間的懸而未決的問題，並使我們距離最終解決方案又近了一步。

Many of the steps required to eventually receive judicial approval are happening concurrently with the Supreme Court process, seeking resolution of the insurer claims. For example, the defendants and the class plaintiffs agreed to dismiss the consolidated class action case in federal court so that it could be refiled in state court and the class settlement could be effectuated in state court.

最終獲得司法批准所需的許多步驟與最高法院程序同時進行，尋求解決保險公司的索賠。例如，被告和集體原告同意在聯邦法院駁回合併集體訴訟案件，以便可以在州法院重新提起訴訟，並在州法院實現集體和解。

The final settlement agreement will become final after judicial review and approval is received and other conditions laid out in the settlement agreement are met. Scott DeGhetto will discuss the accounting implications of our current expectations regarding the settlement agreement timeline and financing plan.

最終和解協議將在收到司法審查和批准並滿足和解協議中規定的其他條件後成為最終協議。Scott DeGhetto 將討論我們目前對和解協議時間表和融資計劃的預期對會計的影響。

Turning to operational updates, over the past year, we've shared the immediate action plans the utility is prioritizing to address wildfire risks in the near term. These plans included implementation of a public safety power shutoff program or PSPS, improving situational awareness through use of advanced technologies, implementing enhanced operational strategies and practices and hardening the grid to increase resilience. The utility has rapidly advanced each of these priorities throughout 2024.

談到營運更新，在過去的一年裡，我們分享了該公用事業公司優先考慮的立即行動計劃，以解決近期的野火風險。這些計劃包括實施公共安全斷電計劃（PSPS）、透過使用先進技術提高態勢感知、實施強化的營運策略和實踐以及強化電網以提高彈性。該公用事業公司在 2024 年迅速推進了這些優先事項中的每一個。

On our last earnings call, we noted that the utility had officially launched its public safety power shutoff program or PSPS on July 1. The high degree of coordination and communication required for the program to be successful has already been put to the test twice when we activated PSPS watches in September and October. The utility carefully monitored weather conditions throughout the activations. And fortunately it was not necessary to shut off power to customers.

在我們上次的財報電話會議上，我們注意到該公用事業公司已於 7 月 1 日正式啟動其公共安全斷電計畫（PSPS）。當我們在 9 月和 10 月啟動 PSPS 手錶時，該計劃成功所需的高度協調和溝通已經接受了兩次考驗。該公用事業公司在整個啟動過程中仔細監測天氣狀況。幸運的是，沒有必要切斷客戶的電源。

I'm pleased that the utility was able to effectively coordinate with public agencies, first responders, customers, and others through the PSPs watches. Our utility will continue to work closely with key stakeholders to refine and enhance this new program to continuously make it more targeted and effective.

我很高興該公用事業公司能夠透過 PSP 手錶與公共機構、急救人員、客戶和其他人進行有效協調。我們的公用事業公司將繼續與主要利益相關者密切合作，以完善和加強這項新計劃，不斷使其更具針對性和有效性。

The implementation of advanced technologies to improve situational awareness continues. And the utility has now deployed 55 new weather stations and installed 39 AI-enhanced video cameras across its service territory.

繼續實施先進技術以提高態勢感知能力。該公用事業公司現已在其服務區域部署了 55 個新氣象站並安裝了 39 個人工智慧增強型攝影機。

Grid hardening work is also progressing, and the utility continues to make investments to upgrade poles, install covered conductors, and strategically underground lines. Crews have inspected over 37,000 poles since the fall of 2023 across the highest-risk circuits and have replaced approximately 2,200 poles. Technologies such as sparkless fuses, new lightning arresters, and smart reclosers are also being implemented, in addition to executing increased vegetation management and hazard tree removal efforts.

電網加固工作也在取得進展，公用事業公司繼續投資升級電線桿、安裝覆蓋導線和戰略性地下線路。自 2023 年秋季以來，工作人員已檢查了風險最高的賽道上的 37,000 多根電線桿，並更換了大約 2,200 根電線桿。除了加強植被管理和危險樹清除工作外，無火花保險絲、新型避雷器和智慧重合器等技術也正在實施中。

Importantly, investments to harden the grid increase resilience for various environmental risks that we face in Hawaii including hurricanes, floods, tsunamis, and wildfires. The utility will be filing a new and comprehensive wildfire mitigation plan within the next few months, by January of 2025.

重要的是，加強電網的投資可以提高夏威夷面臨的各種環境風險的抵禦能力，包括颶風、洪水、海嘯和野火。該公用事業公司將在未來幾個月內（即 2025 年 1 月）提交新的全面野火緩解計畫。

Turning now to the bank, the bank's core operations and earnings remain strong as it continues to serve as a trusted financial partner to customers across Hawaii. In the third quarter, ASB continued to perform well generating strong net income and profitability while continuing the net interest margin expansion we've seen throughout 2024, following last year's strategic balance sheet repositioning. ASB has continued replacing higher-cost sources of financing with cheaper sources of financing. And ASB's balance sheet is currently well positioned for a potential decline in the interest rate environment.

現在轉向該銀行，該銀行的核心業務和利潤仍然強勁，因為它繼續作為夏威夷各地客戶值得信賴的金融合作夥伴。第三季度，ASB 繼續表現良好，產生強勁的淨利潤和盈利能力，同時繼去年戰略資產負債表重新定位後，我們在 2024 年全年繼續看到淨息差擴張。ASB 繼續以更便宜的融資來源取代更高成本的融資來源。目前，ASB 的資產負債表已做好應對利率環境潛在下降的準備。

Economic indicators in Hawaii remain healthy, and the bank is seeing strong credit quality across its loan portfolio. The bank's loyal and long-tenured deposit base remains stable. And as of September 30, 83% of deposits were FDIC insured or fully collateralized.

夏威夷的經濟指標保持健康，該銀行的貸款組合信用品質良好。該銀行忠誠且長期的存款基礎保持穩定。截至 9 月 30 日，83% 的存款已獲得 FDIC 保險或全額抵押。

Lastly, I'll give a brief update on Pacific Current before turning the call over to Scott DeGhetto. As we've discussed over the past year, HEI has been advancing a strategy designed to support a strong, financially healthy enterprise that will empower a thriving future for Hawaii.

最後，在將電話轉給 Scott DeGhetto 之前，我將簡要介紹 Pacific Current 的最新情況。正如我們在過去一年中討論的那樣，HEI 一直在推進一項策略，旨在支持強大、財務健康的企業，為夏威夷繁榮的未來提供支援。

Consistent with this approach HEI has been undertaking a comprehensive review of strategic options for Pacific current. There is no set timetable for the review, and there can be no assurances that any actions regarding Pacific current will result from our evaluation. In connection with this ongoing evaluation, we reported a non-cash asset impairment charge for Pacific Current, which Scott DeGhetto will discuss.

根據這一方針，HEI 一直在對太平洋洋流的戰略選擇進行全面審查。審查沒有設定時間表，也不能保證我們的評估將導致任何有關太平洋洋流的行動。結合本次持續評估，我們報告了 Pacific Current 的非現金資產減損費用，Scott DeGhetto 將對此進行討論。

In summary, our operations remain strong across our companies. And with a signed settlement agreement now in place, we're continuing to build on our significant progress to clarify HEI's path forward. As we look ahead, we'll continue to take prudent and measured actions to ensure our companies are well positioned to serve our customers and community for the long term.

總而言之，我們各公司的營運依然強勁。現在已簽署和解協議，我們將繼續取得重大進展，明確 HEI 的前進道路。展望未來，我們將繼續採取審慎和審慎的行動，以確保我們的公司處於有利地位，能夠長期為我們的客戶和社區服務。

With that, I'll now turn the call over to Scott DeGhetto.

現在，我將把電話轉給 Scott DeGhetto。

Thank you, Scott. I'll start with our results for the quarter on slide 6. For the second quarter, we recorded a consolidated net loss of $104.4 million or $0.91 per share. The quarter's results included two significant one-time losses.

謝謝你，斯科特。我將從幻燈片 6 上的本季業績開始。第二季度，我們的綜合淨虧損為 1.044 億美元，即每股 0.91 美元。該季度的業績包括兩次重大的一次性虧損。

First, at the utility, we recorded an additional $203 million pre-tax loss for the accrual of estimated wildfire liabilities from tort-related claims. You'll recall, in the second quarter of this year, we accrued $1.71 billion for estimated wildfire liabilities. The $1.71 billion accrual was our best estimate as of June 30, 2024, of an equivalent lump sum amount of the four annual installments stipulated in the settlement agreement in principle.

首先，在公用事業公司，我們因與侵權相關的索賠而應計的估計野火責任而額外記錄了 2.03 億美元的稅前損失。您還記得，今年第二季度，我們為估計的野火負債累積了 17.1 億美元。17.1 億美元的應計費用是我們截至 2024 年 6 月 30 日的最佳估計，相當於和解協議中原則上規定的四次年度分期付款的一次性總金額。

HEI now expects to make four annual payments of $478.8 million totaling $1.92 billion, which is the $1.99 billion total agreed to in the settlement plus the $75 million already contributed under the One 'Ohana Initiative. Our revised expectations resulted in the additional $203 million accrual recorded in the third quarter.

HEI 現在預計每年分四次付款，金額為 4.788 億美元，總計 19.2 億美元，這是和解協議中商定的總額 19.9 億美元，加上 One 'Ohana 倡議下已繳納的 7500 萬美元。我們修改後的預期導致第三季額外增加了 2.03 億美元的應計費用。

Second, we also recorded a $35.2 million pre-tax asset impairment at Pacific Current in connection with the ongoing review of strategic options that Scott mentioned. Approximately $40 million of the $203 million settlement accrual made at the utility is expected to be offset with insurance proceeds.

其次，我們也記錄了 Pacific Current 3,520 萬美元的稅前資產減值，這與史考特提到的對策略選擇的持續審查有關。公用事業公司 2.03 億美元的應計和解金中約有 4,000 萬美元預計將以保險收益抵銷。

There were also $16.7 million of pre-tax wildfire related expenses, net of $8.6 million in deferrals recorded at the utility in the third quarter as well as $9.6 million in accrued insurance receivables in addition to the $40 million mentioned. Excluding the impacts of these items, utility core net income was $43.7 million in the third quarter compared to $53.8 million in the same quarter of last year. Lower utility core net income was driven by higher O&M.

除上述 4,000 萬美元外，還有 1,670 萬美元的稅前野火相關費用，扣除公用事業公司第三季記錄的 860 萬美元的延期費用以及應計保險應收帳款 960 萬美元。排除這些項目的影響，第三季公用事業核心淨利潤為 4,370 萬美元，而去年同期為 5,380 萬美元。公用事業核心淨利下降是由於營運和維護費用增加所致。

Bank wildfire-related pre-tax expenses were $900,000. And excluding the after-tax impact of these expenses, bank core net income was $19.4 million for the quarter compared to $17.6 million in the same quarter last year. Bank core net income increased due to a lower provision for credit losses and higher non-interest income.

銀行與野火相關的稅前費用為 90 萬美元。排除這些費用的稅後影響，本季銀行核心淨利潤為 1,940 萬美元，而去年同期為 1,760 萬美元。由於信貸損失準備金減少和非利息收入增加，銀行核心淨利增加。

The Pacific Current asset impairment was recorded at the holding company which also recorded $4.7 million of pre-tax wildfire-related expenses, net of $2.5 million of insurance recoveries. Excluding these items, the holding company core net loss was $10.9 million compared to $9.9 million in the same quarter last year, primarily due to higher holding company expenses. Excluding enterprise-wide wildfire expenses net of insurance recoveries and deferrals and excluding the Pacific Current asset impairment, HEI's core net income for the third quarter was $52.2 million compared to $61.5 million in the same quarter of last year.

Pacific Current 控股公司記錄了資產減損，該公司還記錄了 470 萬美元的稅前野火相關費用，扣除 250 萬美元的保險賠償。不包括這些項目，控股公司核心淨虧損為 1,090 萬美元，而去年同期為 990 萬美元，主要是由於控股公司費用增加。不包括企業範圍內的野火費用（保險賠償和延期費用）以及太平洋流動資產減值，HEI 第三季度的核心淨利潤為 5,220 萬美元，而去年同期為 6,150 萬美元。

Turning to our liquidity on slide 7, as of the end of the third quarter, the holding company and the utility had approximately $678 million and $148 million of cash on hand respectively. Holding company cash includes proceeds from our recent equity issuance. As previously announced, in September, we successfully closed on an offering of newly issued shares of common stock resulting in approximately $558 million in net proceeds.

轉向幻燈片 7 上的流動性，截至第三季末，控股公司和公用事業公司手頭現金分別約為 6.78 億美元和 1.48 億美元。控股公司現金包括我們最近發行股票的收益。正如先前宣布的，9 月份，我們成功完成了新發行普通股的發行，產生了約 5.58 億美元的淨收益。

We intend to use the proceeds from our equity offering to fund our first settlement payment and for general corporate purposes. During the quarter, we also put in place an at-the-market equity issuance program that allows us to issue up to $250 million of common stock at our discretion. We have not yet issued any equity under the ATM program, but it provides an additional source of liquidity and flexibility.

我們打算將股票發行所得款項用於資助我們的第一筆和解付款以及一般公司用途。在本季度，我們還實施了一項市場股票發行計劃，讓我們可以酌情發行最多 2.5 億美元的普通股。我們尚未根據 ATM 計劃發行任何股權，但它提供了額外的流動性和靈活性來源。

Last month, the utility received final approval from the Public Utilities Commission for their accounts receivable backed credit facility. The $250 million facility had previously been approved to use for short-term financing needs. And this final approval allows the utility to use up to $100 million of the facility for long-term financing needs at any given time.

上個月，該公用事業公司的應收帳款支援信貸安排獲得了公用事業委員會的最終批准。這筆 2.5 億美元的貸款先前已獲批准用於滿足短期融資需求。最終的批准允許公用事業公司在任何特定時間使用高達 1 億美元的融資來滿足長期融資需求。

Lastly, I'm pleased to report that we have resolved the going concern issue disclosed last quarter. As Scott mentioned, under the final settlement agreement signed earlier this week, we will make four payments of $479 million to resolve the Maui wildfire tort litigation. The first payment of approximately $479 million is anticipated to be made in late 2025 and is classified as a current liability. The remaining payments expected to be made over the next several years are classified as long-term liabilities.

最後，我很高興地報告，我們已經解決了上季揭露的持續經營問題。正如史考特所提到的，根據本週稍早簽署的最終和解協議，我們將支付四筆金額為 4.79 億美元的款項，以解決毛伊島山火侵權訴訟。第一筆付款預計將於 2025 年底支付，金額約為 4.79 億美元，並被歸類為流動負債。預計未來幾年支付的剩餘款項被歸類為長期負債。

Following the September common stock offering and other actions taken to address liquidity, sufficient cash is available to fund this current liability portion, and we have concluded that the conditions that led to the substantial doubt regarding HEI's ability to continue as a going concern have been addressed.

在9 月普通股發行和採取其他行動解決流動性問題之後，有足夠的現金可以為當前負債部分提供資金，我們得出的結論是，導致對哈電國際持續經營能力產生重大疑問的條件已經得到解決。

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

接下來，讓我們開始提問。

(Operator Instructions)

（操作員說明）

Michael Lonegan, Evercore ISI.

羅根 (Michael Lonegan)，Evercore ISI。

Hi, thanks for taking my questions. So you announced the strategic review of Pacific Current. Obviously, it's a smaller-scale asset. No mention of the bank strategic review. Just wondering if it's fair to say that's ongoing. And then also would you be able to share the carrying cost of Pacific Current or the core earnings of it this quarter?

您好，感謝您回答我的問題。因此，您宣布了對 Pacific Current 的策略審查。顯然，這是一項規模較小的資產。沒有提及銀行策略審查。只是想知道這種情況是否持續存在是否公平。然後能否分享一下 Pacific Current 的持有成本或本季的核心收益？

Yeah. Hi Mike. This is Scott Seu. Yeah, I will confirm that we are still going through the strategic review for both the bank and of course, now with the Pacific current. Let me pitch it over to Scott DeGhetto in terms of addressing the other part of your question.

是的。嗨，麥克。這是史考特·蘇。是的，我將確認，我們仍在對銀行進行策略審查，當然，現在還有太平洋洋流。讓我將其轉給 Scott DeGhetto 來解決您問題的其他部分。

Yeah, Mike, could you just repeat the question in terms of what you're looking for on Pacific Current?

是的，麥克，您能重複一下您在 Pacific Current 上尋找什麼內容的問題嗎？

Yeah. So the carrying cost on your balance sheet or the core earnings that it delivered this quarter.

是的。因此，您的資產負債表上的帳面成本或本季交付的核心收益。

Yeah, so we're not going to -- as we've said previously, Mike, when it comes to the review processes that we run for these assets, just like we've said in the past for ASB, same comment for Pacific Current, we're not going to comment any further until such time as we've made and the Board has made a determination that we feel it's relevant to continue to talk about it.

是的，所以我們不會 - 正如我們之前所說的那樣，邁克，當談到我們為這些資產運行的審查流程時，就像我們過去對 ASB 所說的那樣，對 Pacific 也有同樣的評論目前，在我們做出決定並且董事會做出我們認為有必要繼續討論此事的決定之前，我們不會進一步發表評論。

Got it. Thanks. And then secondly, for me the -- so the opening briefs were filed with the Supreme Court. But wondering how you're feeling about the prospects that the settlement could be resolved through negotiation between the subrogating insurers and plaintiffs. Obviously, if the Supreme Court rules against the insurance companies that could set a bad precedent for them nationwide.

知道了。謝謝。其次，對我來說，開庭簡報已提交最高法院。但想知道您對透過代位追償的保險公司和原告之間的談判解決和解的前景有何看法。顯然，如果最高法院做出不利於保險公司的裁決，可能會在全國範圍內為它們樹立一個不好的先例。

Yeah, Mike, it's always possible that the individual plaintiffs and the subrogation plaintiffs could come to some sort of an agreement -- a negotiated agreement. That would obviously be an acceleration of the process perhaps, but we're not directly a part of any of these discussions. So that's about all I can say on that.

是的，麥克，個人原告和代位原告總是有可能達成某種協議——透過談判達成的協議。這顯然可能會加速這一進程，但我們並沒有直接參與任何這些討論。這就是我能說的全部。

Got it. Thank you. And then you highlighted that you expect to pay the settlement in four installments. But the definitive settlement stipulate you can accelerate the payments, is that something you're considering? Is there a scenario where you pay the settlement all up front or are you committed to the four-year timeframe?

知道了。謝謝。然後您強調說您預計分四期支付和解金。但最終的和解協議規定你可以加快付款，你正在考慮這一點嗎？是否存在您預先支付全部和解金或承諾四年期限的情況？

Yeah. Right now, we anticipate paying the settlement over the four installment period, Mike, we do have that option embedded in the settlement agreement where we decide to pre-pay. We have that ability at any given time, and there's a discount rate embedded in that settlement agreement; it's 5.5%. So again, that option is always available to us if we want to use it in the future.

是的。目前，我們預計分四期支付和解金，麥克，我們確實在和解協議中嵌入了該選項，我們決定提前付款。我們在任何特定時間都有這種能力，和解協議中嵌入了折扣率；是5.5%。再說一次，如果我們將來想使用它，我們總是可以使用該選項。

Thanks. And then lastly for me, so on the PBR framework, if I recall correctly, it became effective in 2021. So you're coming up on the fourth year or the five-year framework. So my understanding is the commission is going to conduct a review process in 2025 to review the framework. Just, that was part of the establishment of it to evaluate a course of action before its last year in '26.

謝謝。最後對我來說，PBR 框架，如果我沒記錯的話，它在 2021 年生效。所以你即將進入第四或五年框架。所以我的理解是委員會將在 2025 年進行審查流程來審查該框架。只是，這是該機構成立的一部分，旨在評估 26 年去年之前的行動方針。

Just wondering in light of the wildfire development -- all the development since, and what are your thoughts heading into a review of that framework, what you see as risks or opportunities and what kind of steps you would be taking to prepare?

只是想知道野火的發展 - 此後的所有發展，以及您在審查該框架時有何想法，您認為風險或機會是什麼，以及您將採取哪些準備步驟？

Yeah, I might ask Joe Viola of the utility. Joe is our Senior Vice President. He oversees regulatory affairs. If Joe can comment on the response.

是的，我可能會向喬·維奧拉詢問該實用程式。喬是我們的高級副總裁。他負責監督監理事務。如果喬可以對回應發表評論。

Sure. And in fact, the PBR comprehensive review is going on right now. So we've been meeting with the stakeholders in tlhat group, meeting with the commission staff to chart out the issues that we want to review, and the commission will give all the parties including Hawaiian Electric, an opportunity to make suggestions on how the framework should be modified as it all goes forward.

當然。事實上，PBR全面審查正在進行中。因此，我們一直在與tlhat 集團的利益相關者會面，與委員會工作人員會面，以製定我們想要審查的問題，委員會將為包括夏威夷電力在內的所有各方提供機會，就如何制定框架提出建議。

So that process that the commission has set out is a multi-year process. The next multi-year rate plan would be scheduled to begin on January 1, 2027. So everything that's happened during the five years of the first multi-year rate plan, including the Maui wildfires and all the implications of that, will be considered in designing what the next multi-year rate plan should look like.

因此，委員會所製定的這個過程是一個多年的過程。下一個多年費率計劃於 2027 年 1 月 1 日開始。因此，在設計下一個多年費率計劃時，將考慮第一個多年費率計劃五年內發生的所有事情，包括毛伊島野火及其所有影響。

Jonathan Reeder, Wells Fargo.

喬納森·里德，富國銀行。

Hey. Just a couple quick questions. I know you're limited what you can say on the other side. But were any of the terms of the definitive settlement agreement that was signed earlier this week materially different than the agreement in principle terms?

嘿。只是幾個簡單的問題。我知道你在另一邊能說的話是有限的。但本週稍早簽署的最終和解協議的任何條款是否與原則上的協議有重大差異？

No. No, they were consistent.

不。不，他們是一致的。

Okay. And then I think you said in terms of the core utility income that the decrease was due to higher O&M. Was that the case -- and I saw it was like a pretty substantial $10 million decrease.

好的。然後我想你說核心公用事業收入的下降是由於營運和維護的增加所造成的。是這樣嗎——我發現這相當於減少了 1000 萬美元。

Yeah. Jonathan, let me ask Paul Ito, Hawaii Electric's CFO, to comment.

是的。喬納森，讓我請夏威夷電力公司財務長保羅‧伊藤發表評論。

Hey, Jonathan. Yeah, there were higher O&M. Some of them were one-time items. Some of them were things like wildfire mitigation that we've been accelerating, for example, inspections. But in the quarter, we did record settlement administrative fee as part of the accrual for the quarter. It's limited. We also accrued additional costs related to the state settlement of indemnification claim.

嘿，喬納森。是的，運維水準較高。其中一些是一次性物品。其中一些是我們一直在加速的諸如野火緩解之類的事情，例如檢查。但在本季度，我們確實將結算管理費記錄為本季應計費用的一部分。這是有限的。我們還產生了與國家賠償索賠相關的額外費用。

And then we also saw higher insurance premiums for property and general liability. So those are the main items that resulted in higher O&M for the quarter.

然後我們也看到財產和一般責任的保險費更高。這些是導致本季營運和維護更高的主要項目。

Okay. And so the one-time items, the administrative fees, stuff like that, like roughly how much (technical difficulty) we get from the versus the (technical difficulty) could be maybe a little more ongoing.

好的。因此，一次性項目，管理費，諸如此類的東西，例如我們從（技術難度）中獲得的大約多少（技術難度）可能會更加持續一些。

The after tax -- so the settlement administration fee after tax was about $2.6 million. The state indemnification claims is about the same amount $2.6 million. And those would be the one that would be, yeah, more one-time in nature.

稅後－所以稅後結算管理費約 260 萬美元。國家賠償索賠金額約 260 萬美元。是的，這些本質上是一次性的。

And that concludes our Q&A session. I will now turn the conference back over to Scott Seu for closing remarks.

我們的問答環節到此結束。現在我將把會議轉回斯科特·蘇（Scott Seu）發表閉幕詞。

In closing, I just wanted to highlight again how we feel we've made substantial progress in the quarter. I'm very proud of the fact that we were able to reach the final settlement agreement in a fairly quick timeframe after the August term sheet agreement. I'm also very pleased that we're able to resolve the going concern issue that we disclosed last quarter.

最後，我只想再次強調我們認為本季取得了實質進展。我感到非常自豪的是，在八月的條款清單協議之後，我們能夠在相當快的時間內達成最終和解協議。我也很高興我們能夠解決上季揭露的持續經營問題。

And above all, I think I just want to thank our shareholders, many of whom are our neighbors here in Hawaii, for your continued investment in HEI. I also want to thank those shareholders that supported our successful equity issues in September. We really appreciate your support, and we continue to help our communities move forward to a sustainable future. So with that, thank you, everybody.

最重要的是，我想我只想感謝我們的股東，其中許多人是我們在夏威夷的鄰居，感謝你們對 HEI 的持續投資。我還要感謝那些支持我們九月成功發行股票的股東。我們非常感謝您的支持，我們將繼續幫助我們的社區邁向永續的未來。就這樣，謝謝大家。

And that concludes today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。