Hawaii utility focused on green energy, delayed fire mitigation.
Hawaiian Electric Under Scrutiny for Allegedly Neglecting Grid Modernization
Hawaiian Electric is facing criticism for its alleged slow progress in modernizing and repairing its electrical grid, which is believed to have contributed to the devastating fire that recently swept through the island of Maui.
As Hawaii’s primary electric utility, Hawaiian Electric provides power to approximately 95% of the state. However, financial disclosures and reports indicate that the company prioritized expanding its green energy network over mitigating fire risks, despite concerns about the state of its electrical grid and the potential for wildfires.
The Wall Street Journal reports that the company’s past priorities are now under scrutiny as it faces allegations in court that it is responsible for the deadly fire in Lahaina, which claimed over 100 lives and destroyed numerous buildings. This wildfire has become the deadliest in modern American history, surpassing the devastating Camp Fire in Paradise, California, in 2019.
Hawaiian Electric Launches Investigation
Hawaiian Electric CEO Shelee Kimura announced during a press conference that the utility will be conducting its own investigation into the incident. Additionally, the state attorney general will also be conducting an investigation.
“We will be doing our own investigation. The state will be doing an investigation. We will cooperate fully in that. I think we all believe it’s important to understand what happened, and I think we all believe it’s important to make sure it never happens again,” said Kimura.
According to a 2019 report, Hawaiian Electric acknowledged the need to take more action to mitigate fire risk following one of Maui’s worst fire seasons. However, between 2019 and 2022, the utility spent less than $245,000 on fire risk mitigation projects, while allocating $84 million for power line clearance and maintenance since 2018.
Green Energy Priorities and Regulatory Framework
Over the past decade, Hawaii has been focused on transitioning to green energy. In 2015, the state enacted a groundbreaking law mandating that its grid be powered by 100% renewable energy by 2045. In 2021, regulators implemented a comprehensive restructuring of the regulatory framework to guide this transition, offering Hawaiian Electric significant incentives for completing green energy projects on time and imposing fines for missed deadlines.
“You have to look at the scope and scale of the transformation within [Hawaiian Electric] that was occurring throughout the system,” said Mina Morita, the former chair of the state utilities commission. “While there was concern for wildfire risk, politically the focus was on electricity generation.”
Although Hawaiian Electric submitted a plan to the Hawaii Public Utilities Commission last year, outlining a $190 million investment in projects on Maui to address fire risks and improve the island’s aging electrical infrastructure, the implementation has been delayed pending approval to increase rates on customers. As of now, that approval has not been granted.
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It remains to be seen how the investigations and legal proceedings will unfold, but the spotlight is now on Hawaiian Electric’s past priorities and its role in the tragic wildfire that devastated Maui.
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