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Hawaii Is Bailing Out Its Wildfire-Causing Energy Company

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2 years ago

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Hawaii Is Bailing Out Its Wildfire-Causing Energy Company


Last August, a deadly wildfire tore through Hawaii, erasing the town of Lahaina and killing over one hundred people. The state’s publicly traded utility corporation was found responsible; it is now facing a deluge of claims from residents seeking compensation for damages, as well as lawsuits from the insurance companies that have been paying out disaster claims.

Hawaii’s electricity is provided by a for-profit utility supplier that is granted monopoly power over energy distribution. In addition to its dominance of Hawaii’s power grid, Hawaiian Electric Industries, Inc., (HEI) enjoys almost complete autonomy in the physical management of its power lines on the islands of Oahu, Hawaii, Maui, Lanai, and Molokai. Only residents of the island of Kauaʻi maintain some semblance of control over their electricity, through a resident-owned energy cooperative.

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When massive winds from Hurricane Dora blew into Maui, HEI subsidiary Maui Electric Company (MECO) refused to respond to early calls to shut down the grid. This came even as fire-safety officials warned that a flash drought put most of the state in a Red Flag Warning, the highest possible fire alert issued by the National Weather Service.

More than thirty power lines went down as winds battered the island, but MECO remained silent — apparently refusing to cut power to downed lines that were sparking fires. In the fallout of the fires, it came to light that MECO had not properly insulated wires or maintained poles and surrounding vegetation. These are standard precautionary measures in most states, especially ones with significant wildfire and windstorm risk. Many lines were bare — i.e., lacking any insulation at all — a direct violation of state regulations dating back to 2002 that significantly increased the probability of ignition in surrounding vegetation.

Now, as HEI struggles to pay for damages, state regulators look set to bail out the negligent utility company.

Five months after the fire, legal fees, disaster relief bills, and settlements are piling up. A battery of personal claims against HEI prompted 142 insurance companies, including USAA, State Farm, Island Insurance, and Tradewind, to seek reimbursement for over $1 billion in claims they had paid to residents as of December 2023. The companies are following the lead of Maui County, which similarly filed suit against HEI on the grounds that the corporation’s negligence is to blame for property damage and loss of life.

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Recent analysis estimates HEI could be on the hook for over $4.9 billion when the ashes clear. The corporation itself was only insured up to $165 million, a drop in the bucket compared to what they owe in damages combined with what insurers are seeking in reimbursement.

This scheme by insurance companies puts them in league with individual residents and the county in civil suits against HEI. This is not uncommon in catastrophe underwriting, as insurance companies will leave no stone unturned in trying to mitigate losses from natural disasters.

To that end, insurers often use gray areas in coverage to deny consumers’ claims related to flood or hurricane damage. But as the $1 billion in insurance payouts suggest, the insurance companies don’t seem to be fighting consumers’ claims. When it’s evident that a battery of claims cannot be denied, will not be sufficiently covered by reinsurance (the insurance that insurance companies themselves take out to protect against significant losses), and cannot be stalled in court, industry-wise lawyers will go after the next best offering: in this case, the utility company left holding the bag.

Soon after the announcement that the company had failed to de-energize its grid, the corporation’s long- and short-term bond ratings were downgraded by two of the “Big Three” credit-rating agencies, with Fitch lowering HEI’s grade to B on Rating Watch Negative and S&P lowering it to B-. The third of the Big Three, Moody’s, put HEI “under review for downgrade.” This means that lending companies would charge extremely high rates on anything HEI borrowed to pay its bills, whether those bills be to the people of Hawaii, state conservation efforts, insurance lawsuits, an infrastructure overhaul, or disaster relief funds.

But HEI has an important friend ready to help: the state of Hawaii. On January 23, state legislators introduced measures drafted by HEI to safeguard the company from bankruptcy by allowing it to raise costs to residents and issue a new bond covering the costly bill for starting the wildfire. Essentially, the state plans on issuing a low-APR, no-limit credit card that HEI can use to pay its bills, with minimal risk to the long-term financial health of the corporation. The monopoly’s survival is crucial to the state of Hawaii, which would lose 95 percent of its electrical coverage should HEI go bankrupt and cease operations. It is also crucial to the company’s boardroom.

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Some supporters of the bailout say it is ultimately the best bet for residents of Hawaii, so long as the bonds are used to fund grid updates rather than lawsuits from insurance companies. The current deal would allow HEI to push the cost of the bonds — including interest — onto residents immediately; supporters argue that this would theoretically allow for avoidance of massive consumer rate hikes, which would inevitably follow in the long term should HEI be forced to borrow on the open market. Better to start paying a little bit extra over many years than a lot extra years down the road, when it comes time to pay back the high-rate bonds. But this crowd ignores the bigger picture — that the private debt of a for-profit company will be foisted on consumers regardless.

Whether in the short or long term, consumers are being made liable for the fire, the immediate costs, and the ensuing market fallout. Even if a resident receives an insurance payout, the insurance company is passing the ball to HEI, which is passing it to the state, which is ultimately turning it back over to the resident.

HEI vice president of corporate communications James Kelly claims that the utility doesn’t intend to use the bond proceeds to cover legal claims. But the state is not imposing any safeguards to ensure this, and there are no mechanisms to enforce transparency. In fact, legislators seem to have the opposite in mind — litigation and settlement costs are explicitly covered by the bonds.

An important question for Kelly, then, is how the utility does intend to process over $4.9 billion in legal claims if its current equity and insurance backing is so insufficient as to require a generous bailout by Hawaii residents. Why else would HEI directly include litigation and settlement contingencies in the legislative measure the company itself drafted, if not to use the bonds to cover those costs?

Pacific Gas and Electric Company — California’s energy utility — went through its own equity crisis following the 2018 Camp Fire. That fire resulted in at least eighty-five deaths and was found to be the result of similarly mismanaged power lines. A recent decision by the California judiciary hopes to save their for-profit energy corporation from the same type of bankruptcy facing HEI with big rate hikes, brought about by an $11 billion insurance settlement.

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Both disasters might have been avoided with state-run utilities or publicly held energy cooperatives, which would be democratically accountable to residents. Had there been public, democratic oversight in place of a concern with profit maximization, HEI might have taken measures that prevented the wildfires from starting in the first place — like implementing the 2002 infrastructure regulation. Hawaii could take notes from the publicly owned New York Power Authority (NYPA), for instance. NYPA is the lowest-cost energy provider in New York State, which is theoretically bound by regulations set by the state comptroller.

Instead, Hawaiian consumers are not only bearing the burden of loss of life, land, and property caused by corporate negligence — they’re being forced to pick up the bill for the corporation’s negligence too. Here, utility deregulation has taken to such an extreme that the company at fault is allowed to build its own legislative life raft. This state of affairs is par for the course with private utilities: Hawaii needs HEI as the owner and operator of the vast majority of the state’s electrical grid. Yet the utility needs the state of Hawaii to help it avoid being eaten by the bigger fish it exposes itself to as a profit-generating corporation. Until utilities are publicly controlled, corporate boardrooms will dictate who ultimately pays utilities’ financial burden.





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Hawaii

Elvis slept here: Inside the luxurious Waikiki resort he made world-famous

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10 hours ago

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February 24, 2026

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Elvis slept here: Inside the luxurious Waikiki resort he made world-famous


Elvis loved spending time in Hawaii. – Photo courtesy of Public Domain

Elvis loved quite a few things: luxury cars, peanut butter and banana sandwiches, and Hawaii. The King of Rock and Roll spent nearly 20 years of his life visiting Hawaii, and more specifically, at the Hilton Hawaiian Village, an iconic resort that’s still open today — and brimming with fellow Elvis fans who want a glimpse into the King’s past.

The resort has an elite roster of famous fans who’ve roamed its halls, from Barack Obama to Ronald Reagan to Michael Jackson. But Elvis is regarded as the superstar who put this hotel on the map, having filmed “Blue Hawaii” on its property in 1961 and returning frequently over the course of two decades.

As you can imagine, the hotel has embraced the iconic connection. Visitors can explore the resort’s timeline wall, which features photos of Presley during his stays, information about the star, and memorabilia from his various visits.

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Elvis regularly stayed in the Rainbow Tower.Elvis regularly stayed in the Rainbow Tower. – Photo courtesy of Hilton

Why did Elvis Presley love this hotel?

Initially, the Hilton Hawaiian Village served as the filming location for Elvis’s movie “Blue Hawaii.” There aren’t many reports on why Elvis loved this specific hotel, but it’s the only one he stayed at while visiting Hawaii (which he did quite a bit).

Kathleen King, an art gallery owner on Waikiki Beach, met Elvis in 1966 while he was filming the movie “Paradise, Hawaiian Style.” She told Elvis Information Network that he was always happy to sign autographs, but fans were extremely cordial, leaving the star to enjoy his vacation after meeting him.

“That is one of the reasons Elvis kept returning to Hawaii — he wasn’t hassled or bothered by the press or the fans,” author Sanja Meegin wrote, following her research into the area.

Meegin did quite a bit of research into the star’s Hawaii ventures. She found a telegram Elvis sent to the Honolulu Star newspaper in 1957, ahead of his first visit to the resort:

“I know I will enjoy your islands. Like to surf and swim. Getting good tan on board. Have read about Hawaiian hospitality and am eagerly looking forward to same,” Elvis wrote.

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Hawaii allowed Elvis to escape the attention from his daily life.Hawaii allowed Elvis to escape the attention from his daily life. – Photo courtesy of Public Domain

Inside Elvis Presley’s favorite hotel room

When he stayed at the Hilton Hawaiian Village in 1957 and 1961, Elvis stayed in the Ali’i Oceanfront Presidential Suite on the 14th floor of the Rainbow Tower.

In the ‘60s, Elvis was known to rent out the whole floor for his entourage. These days, the Ali’i Presidential Suite is available across two full floors (the 14th and 15th). It comes with a number of stunning features, including:

  • The ability to sleep seven
  • A 285-square-foot balcony
  • A large living room
  • An entry foyer
  • A wet bar
  • Premium resort amenities and services
  • Oceanfront views
  • Security alarms
  • Optional: Private lobby check-in
  • Optional: Private pool, bar, and fitness center

The King was known to stay in the presidential suite, but you don’t need to book one yourself to step in his shoes. He famously held a press conference prior to the Pearl Harbor benefit concert in the hotel’s Carousel Room. Information about this room is not publicly available, so when you visit, be sure to ask the hotel staff to point you in the right direction.

What other celebrities love this resort?

The Hilton Hawaiian Village is no stranger to superstar guests. While Elvis is among the resort’s most notable famous fans, it has hosted a number of big names.

Michael Jackson stayed at the hotel in 1997 and stayed on the 14th floor of the Ali’i Tower in the Mahele Suite, according to Hawaii News Now.

“We had customers on property day and night,” recalled Lani Bjork, head of security at the resort in 1997. “He came out to the lanai to wave to them and you could hear that wave of Michael, Michael, throughout the evening.”

The resort has also hosted several presidents in the past few decades, including Barack Obama, Bill Clinton, Ronald Reagan, and Gerald Ford.

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More recently, Ryan Seacrest and Vanna White filmed an episode of “Wheel of Fortune” at the resort in 2024.

The film The film “Girls Girls Girls” was partially filmed at the Hilton Hawaiian Village. – Photo courtesy of Public Domain

How to experience Hawaii like Elvis

To Elvis, Hawaii wasn’t just a vacation destination — it was a livelihood. The singer loved the locale so much that he incorporated elements of Hawaii into his music, his films, and his own home at Graceland.

Numerous blogs, books, and archives note that Elvis loved Hawaii for its atmosphere, notably its stunning natural features (including its waterfalls and relaxing beaches). There are hundreds of pictures available online of the star enjoying his time in Hawaii. Based on what we’ve found, you can experience Hawaii like Elvis by:

  • Sunbathing. The beaches were a huge draw for Elvis, where he was often found sunbathing and relaxing on white sands.
  • Visiting the Halona Blowhole lookout: Want to see the Halona Blowhole? Elvis did — check out the natural formation to step into the King’s literal footsteps.
  • Renting a speedboat: Elvis was spotted doing all manner of water sports during his 1968 vacation, including driving a speedboat and paddling on a floating device.
  • Getting on those water skis: Hawaii’s beaches are the perfect spots for waterskiing, even if you’ve never done it before. Elvis was spotted trying out the sport for himself during a Hawaii vacation.
  • Swimming: You don’t visit Hawaii and spend hours on the beach without going for a dip. Elvis has been spotted swimming during nearly every trip he has on record.
  • Surfing: As noted in his own telegram, Elvis was a surfer, and he enjoyed practicing his craft during visits to The Aloha State.





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Farmer rescues co-worker from flood in Waialua

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22 hours ago

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February 24, 2026

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Farmer rescues co-worker from flood in Waialua


HONOLULU (HawaiiNewsNow) – A former firefighter, Chris Greer, did not hesitate when his co-worker needed him after being trapped in flood water Saturday at their workplace, Laulau Solutions farm in Waialua.

“She just called me screaming, like ‘we need help!,’ and I was like, let’s do it,” Greer recalled. “Just kind of, in those moments, you just kind of go. I mean it was kind of crazy, the current coming out with the water rushing out was pretty tough. But, I know this lo’i, kind of the back of my hand.”

Greer’s familiarity with the taro farm allowed him to track down his co-worker and her pet piglet.

“Threw her pet on a little surfboard and pushed it out. Kind of took like 30 minutes to get out of here, but we’re thankful everyone’s alright,” Greer said.

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But other animals were stuck.

Farm owner Joey Cadiz said the flood killed one of his pigs and two chickens.

“We put time and invested time and energy into taking care of these animals, so that’s always, devastating too, in and of itself,” Cadiz said. “Quite dangerous, so we just had to evacuate and get out of there with whatever we could carry.”

Cadiz added the equipment that did not make it out, including a farm truck and lawnmowers, were thrown around and extensively damaged.

A part of one of the lo’i, taro patches was destroyed.

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Cadiz estimated repairs and replacements will cost about $6,000.

“Every time something like this happens, it sets us back quite a bit and that’s probably what hurts us the most, is making all this progress and having to start over in some areas again,” Cadiz said.

The non-profit organization that aims to educate community members about sustainability relies on volunteers like Leialoha Cambonga.

While Cambonga called the destruction at the farm “devastating,” she also said, “It also inspires us to come together and bring it back to life and find the solutions to maybe mitigate some of the damage in the future.”

Cadiz is seeking volunteers to help him clean the farm over the coming days. He is also accepting donations.

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Click here for more information.

Copyright 2026 Hawaii News Now. All rights reserved.



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More high surf ahead as most of Hawaii remains under flood watch | Honolulu Star-Advertiser

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1 day ago

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February 23, 2026

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More high surf ahead as most of Hawaii remains under flood watch | Honolulu Star-Advertiser


STAR-ADVERTISER / JAN. 12

High surf pounded Oahu’s North Shore as sightseers took in the action at Sharks Cove. The National Weather Service in Honolulu has ramped up its weather alerts today as a massive north-northeast swell begins its approach toward the islands. While many residents spent Sunday under a flood watch, the focus is shifting toward the shoreline, where surf heights are expected to reach dangerous levels.

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The National Weather Service has ramped up its weather alerts today as a large north-northeast swell approaches the islands.

While many residents remain under a flood watch today, the focus is shifting toward the shoreline, where surf heights are expected to reach dangerous levels.

A new high surf warning will take effect at noon today for the north and east shores of Niihau, Kauai, Oahu, Molokai, Maui and Hawaii island. This warning is scheduled to remain in place through Tuesday afternoon. Forecasters expect waves along north shores to build to 10 to 16 feet today before peaking at 20 to 25 feet late tonight and Tuesday. East shores should see surf of 7 to 10 feet this afternoon, building to 12 to 16 feet tonight and Tuesday.

The impact for these coastal areas is expected to be “very high” with weather officials warning that “ocean water surging and sweeping across beaches” could create “the potential for impacts to coastal roads and infrastructure.” Swimmers and boaters should also be aware that “powerful longshore and rip currents will be present at most beaches.”

Starting at 6 p.m., a high surf advisory will also go into effect for several other coastlines. West shores of Hawaii island in the Kohala districts will see surf building to 6 to 10 feet. On Maui, west shores will see waves between 8 and 15 feet. The west shores of Molokai and the north shores of Lanai are expected to see the biggest surf at 10 to 16 feet.

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Inland conditions remain unsettled as the flood watch remains in effect through this afternoon for most of the state except Hawaii island. This is a continuation of the watch issued on Sunday. Because the ground is already saturated from previous heavy rain, there is a lingering risk of flash flooding, forecasters said.

Runoff from additional showers could cause problems quickly. The weather service notes that “flood-prone roads and other low-lying areas may be closed due to elevated runoff and overflowing streams.” They also caution that “urban areas may receive more significant flooding and property damage due to rapid runoff.”

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On Hawaii island, conditions at the summits are changing. A previously issued high wind warning for Mauna Kea and Mauna Loa has been canceled and replaced with a wind advisory in effect until noon today. Sustained winds are blowing between 40 and 50 mph with gusts reaching 60 mph today.

The summit conditions present physical risks for anyone in the area. The weather service said that “winds this strong can make driving and walking dangerous” and noted that “the winds can forcefully open doors and damage hinges or slam doors shut, possibly causing injuries.”

A cooling trend is expected to follow this unstable weather. As a drier air mass moves in tonight, temperatures will drop into the 50s and 60s for many areas. This pattern of breezy tradewinds and cooler nights is expected to persist through Thursday.

The weather on Tuesday will be mostly cloudy and breezy with northeast winds between 15 and 25 mph, according to the NWS. Windward and mauka areas can expect scattered showers during the day, followed by isolated showers at night. Highs should stay between 73 and 78 degrees.

Conditions on Wednesday are expected remain mostly cloudy with isolated showers for windward and mauka areas. Highs will again range from 73 to 78 degrees while lows drop to between 62 and 67. Tradewinds will continue at 15 to 20 mph.

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On Thursday the islands are forecast stay mostly cloudy with isolated windward showers. Highs will climb slightly to between 75 and 80 degrees. Trades will hold steady at around 15 mph as the drier air mass remains in place.

On Friday cloudy skies are forecast for windward areas with isolated showers continuing. Winds will begin to shift from the east as a new front starts to approach the state from the west. Highs will reach between 76 and 81 degrees.




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