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Hawaii Is Bailing Out Its Wildfire-Causing Energy Company

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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 2025: Mauna Lani lives up to its name with breathtaking golf

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Hawaii 2025: Mauna Lani lives up to its name with breathtaking golf


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  • Mauna Lani resort in Hawaii offers a unique golfing experience with courses set in volcanic landscapes.
  • The resort features two 18-hole courses, the North and South, each with distinct challenges and seaside views.
  • In addition to championship golf, Mauna Lani provides a short course, a sunrise canoe paddle, and upscale dining options.
  • The North Course is known for trees in the fairways and a par-3 17th hole set in a lava bowl.
  • The South Course is famous for its scenic par-3s, including the 15th hole which requires a carry over a Pacific inlet.

(Editor’s note: Although the PGA Tour’s 2026 Sentry Tournament of Champions at Kapalua was canceled, golf in Hawaii is very much alive and well. As the year comes to a close, Golfweek has been highlighting some of the state’s incredible courses and views.)

WAIMEA, Hawaii — A few decades ago, Ross Birch was a 20-something with big golf dreams and plenty of time to chase them. One day, he found himself walking outside the ropes alongside Jack Nicklaus during a practice round for the PGA Senior Skins Game at Mauna Lani. The setting was pure paradise — crystal-blue waters lapping against the shores of Hawaii’s two-course resort.

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Nicklaus had played the South Course as part of the event’s 10-year run, which also featured legends like Arnold Palmer, Raymond Floyd and Lee Trevino. But when the Golden Bear turned his attention to the North Course — a layout dotted with large trees in the middle of fairways — even the 18-time major champion was flummoxed.

“What the hell is with these trees?” Nicklaus said, eyeing the first hole, a dogleg right guarded by a towering kiawe tree, a tropical cousin of mesquite.

Birch laughed and warned him there were plenty more surprises ahead. Nicklaus threw up his hands in disbelief, then motioned for Birch — who was working at another Big Island course at the time — to join the group.

“It was one of the greatest days of my life,” Birch recalls, “walking this incredible course with one of the greatest players ever.”

Today, Birch shares that story often in his role as Mauna Lani’s director of golf, a position he’s held since 2022. An affable host and solid player, he sprinkles anecdotes like this throughout an afternoon on either of the resort’s stunning seaside courses. And at Mauna Lani, there’s no shortage of tales to tell.

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Despite the cancellation of the 2026 The Sentry, golf in Hawaii is thriving. Here, the game becomes an experience — teeing off on courses carved into volcanic landscapes, challenging seaside holes where waves crash just beyond the green, and soaking in panoramic views that stop you in your tracks. With more than 70 courses across the islands, every round is an adventure.

But Mauna Lani offers something truly special.

The North Course

Opened in 1988, the North Course is a mature track, its rolling fairways framed by weathered lava beds and kiawe forests. Trees often stand boldly in the middle of fairways, forcing creative shot-making, while trade winds add another layer of challenge. On the ninth hole, a par-4 near the water, strong gusts can turn an approach into a test of nerve.

Wildlife adds to the charm — and the challenge. Feral goats frequently wander across fairways, a quirky hazard that once caused serious backups. In fact, the state held a lottery in 2021 to relocate some of the herds, which had become invasive in the nearby Historic Park. That park, Pu’uhonua o Hōnaunau, holds deep cultural significance as a place of refuge for defeated warriors and civilians during times of battle.

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Survive the wildlife and navigate the narrow fairways, and you’ll reach the course’s crown jewel: the par-3 17th. From elevated tees, you’ll fire toward a green cradled in a dramatic lava bowl—a natural amphitheater and one of the most unforgettable shots in Hawaii.

The South Course

For those who prefer a more forgiving layout, the South Course delivers equally stunning views with fewer trees but newer, jagged lava flows. Opened in 1981, it’s a sensory feast — and home to two of the most spectacular par 3s you’ll ever play.

No. 7 demands a long iron or fairway wood to reach a green perched beside the ocean, with water hugging the left and a tall tree guarding the right. A well-placed bunker offers a lucky bailout for those who flirt with disaster.

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Later, the shorter 15th hole tests your nerves with a mid-iron carry over an inlet to a green framed by palms and water. It’s no wonder this hole ranks among the most photographed in the country. No matter what your score, these two holes will be lodged in your memory for years to come.

Short course and more

As if the two courses don’t offer enough to keep a golfer fully engaged, Mauna Lani’s short course is the perfect way to spend some time before sunset, or to get the kids out on the course before a day at the beach.

The WikiWiki short course is best played in flip-flops or with no shoes at all. Lined on the outside by towering palms, the course was originally part two holes from the main complex, but have since become a perfect way to enjoy tropical breezes for an hour or so, preferably with a Kona Big Wave or a dragonfruit margarita in hand.

We played the course as a group, two teams playing rotating shots, and the laughs and smiles were consistent. The short course sits up on a slight perch, so the winds are even more severe and the views of the Mauna Kea, the state’s highest point, are breathtaking.

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Other amenities

Golf may be the star at Mauna Lani as the South Course is currently No. 13 on Golfweek’s Best Courses You Can Play in Hawaii and the North Course sits at No. 6, but the resort offers experiences that linger long after the final putt. One highlight? A sunrise canoe paddle that stirs the soul. Before dawn, our group pushed off into the gentle surf, working hard for 15 minutes to break free from the incoming waves. Then, as the first light crept over the mountains, our guides shared stories of the island’s heritage — how generations of Hawaiians gave thanks each morning to the sun and all it provided. It’s a moment that blends effort, beauty, and deep cultural connection — an unforgettable way to start the day.

There’s a reason both locals and visitors gravitate to the Clubhouse Bar. Perched on the second floor overlooking the practice facility, it offers sweeping ocean views and a relaxed vibe — the perfect spot to toast the day with craft cocktails and island-inspired bites.

Craving something more indulgent? Head to the nearby CanoeHouse, where Japanese-inspired cuisine meets a breathtaking oceanfront setting. Menu highlights include a melt-in-your-mouth Wagyu ribeye, local mushrooms like lion’s mane and ali‘i with koji barbecue and cashews, and the showstopper: The King Tower — a lavish spread of poached lobster, Kaua‘i shrimp, Hokkaido scallops, Japanese uni, local sashimi, oysters, and snow crab. It’s a feast as unforgettable as the view.

In Hawaiian, Mauna Lani means “mountain reaching heaven.” And after a day — or even a week — on these breathtaking shores, no matter what your scorecard says, you’ll drift off with a full belly and an even fuller heart.

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Game-ending 18-point run allows UC Davis to beat Hawaii | Honolulu Star-Advertiser

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Game-ending 18-point run allows UC Davis to beat Hawaii | Honolulu Star-Advertiser


JAMM AQUINO / JAQUINO@STARADVERTISER.COM

Hawaii coach Laura Beeman has seen her team lose four games in a row over the last seven days.

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UC Davis scored the final 18 points in the fourth quarter to storm back and defeat Hawaii 68-63 tonight in the Big West women’s basketball opener for both teams at University Credit Union Center in Davis, Calif.

Nya Epps made consecutive 3-pointers and gave the Aggies the lead with 1:16 remaining, and the Aggies (7-2, 1-0) made their final four shots from the field to stun the Rainbow Wahine (4-4, 0-1).

Bailey Flavell scored 12 of her team-high 22 points in the fourth quarter for UH and Saniyah Neverson added 17 points and seven rebounds for the Rainbow Wahine, who were held scoreless over the final 4:41.

Hawaii turned the ball over 25 times, five of them during UCD’s game-deciding run.

Megan Norris led the Aggies with 26 points and 11 rebounds and played 39 minutes.

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UH, which has lost four straight, will play at Cal State Fullerton on Saturday.


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HPD says fraud losses total $7 million in 2025 | Honolulu Star-Advertiser

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HPD says fraud losses total  million in 2025 | Honolulu Star-Advertiser




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