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Profile: Hawaiian Electric Industries Inc (HE.N)

HE.N on New York Stock Exchange

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15 Dec 2017
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Hawaiian Electric Industries, Inc. (HEI), incorporated on July 20, 1981, is a holding company with its principal subsidiaries engaged in electric utility and banking businesses operating primarily in the State of Hawaii. The Company's subsidiaries include Hawaiian Electric Company, Inc. (Hawaiian Electric) and ASB Hawaii, Inc. (ASB Hawaii). The Company's segments include Electric utility, Bank and Other. The Company operates its electric utility business through Hawaiian Electric and its subsidiaries, Hawaii Electric Light Company, Inc. (Hawaii Electric Light) and Maui Electric Company, Limited (Maui Electric). The Company operates its Bank segment through ASB Hawaii's subsidiary, American Savings Bank, F.S.B. (ASB).

Electric utility

Hawaiian Electric, Hawaii Electric Light and Maui Electric (Utilities) are electric public utilities in the business of generating, purchasing, transmitting, distributing and selling electric energy on all principal islands in Hawaii other than Kauai. The utility subsidiaries within the electric utility segment are involved in the business of supplying electric energy in the same geographical location (the State of Hawaii). The Utilities have same production processes that include electric generators (conventional oil-fired steam units and combustion turbines); serve residential, commercial and industrial customers within their franchise territories, and use electric grids to distribute the energy to their customers. Hawaiian Electric also owns the non-regulated subsidiaries Renewable Hawaii, Inc. (RHI), which was formed to invest in renewable energy projects; HECO Capital Trust III, which is a financing entity, and Uluwehiokama Biofuels Corp. (UBC).

Hawaiian Electric owns four generating plants on the island of Oahu at Waiau, Kahe, Campbell Industrial Park (CIP) and Honolulu. Hawaiian Electric operates three of the four generation plants. These plants had an aggregate net generating capability of 1,214 megawatts (MW) as of December 31, 2016. As of December 31, 2016, Hawaiian Electric's Barbers Point Tank Farm (BPTF) had three storage tanks with an aggregate of one million barrels of storage for low sulfur fuel oil (LSFO). The BPTF is located in Campbell Industrial Park, on the same property as the CIP Generating Station, and is the central fuel storage facility where LSFO purchased by Hawaiian Electric is received and stored. From the BPTF, LSFO is transported via Hawaiian Electric owned underground pipelines to the Kahe and Waiau Power Plants. As of December 31, 2016, Hawaiian Electric also had fuel storage facilities at each of its plant sites with an aggregate capacity of 770,000 barrels for LSFO storage, 44,000 barrels for diesel storage, and 88,000 barrels for biodiesel storage.

Hawaii Electric Light owns and operates four generating plants on the island of Hawaii in Hilo, Waimea, Keahole and Puna, along with distributed generators at substation sites. These plants had an aggregate net generating capability of 179 MW as of December 31, 2016 (excluding several small run-of-river hydro units). As of December 31, 2016, Hawaii Electric Light also owned fuel storage facilities with a storage capacity of 48,000 barrels of medium sulfur fuel oil (MSFO) and 81,802 barrels of diesel. There are an additional 19,200 barrels of diesel and 22,770 barrels of MSFO storage capacity for Hawaii Electric Light-owned fuel off-site at Island Energy Services, LLC (Island Energy)-owned terminalling facilities as of December 31, 2016.

Maui Electric owned and operated two generating plants on the island of Maui, at Kahului and Maalaea, with an aggregate net generating capability of 246.3 MW as of December 31, 2016 and owned fuel oil storage facilities with a total usable capacity of 81,272 barrels of MSFO and 94,586 barrels of diesel. As of December 31, 2016, Maui Electric also owned two one-MW standby diesel generators and a 6,000 gallon fuel storage tank in Hana and 65.7 acres of undeveloped land at Waena. Maui Electric also owned and operated smaller distribution systems, generation systems with an aggregate net capability of 21.1 MW as of December 31, 2016 and fuel storage facilities on the islands of Lanai and Molokai. As of December 31, 2016, the Utilities owned overhead transmission and distribution lines, underground cables, poles (some jointly) and metal high voltage towers.

Bank

ASB is a federally chartered savings bank providing a range of banking services to individual and business customers through its branch system in Hawaii. In addition to net interest income, ASB has various sources of noninterest income, including fee income from credit and debit cards, fee income from deposit liabilities, mortgage banking income, and other financial products and services. As of December 31, 2016, ASB owned 114 automated teller machines (ATMs). ASB offers residential and commercial real estate loans; fixed rate and adjustable rate loans for single family residential property; fixed rate loans for the construction of one-to-four unit residential and commercial properties; permanent financing and construction and development financing; a range of secured and unsecured consumer loans, and secured and unsecured commercial loans to business entities.

ASB's investment portfolio consists of the United States Treasury and federal agency obligations, mortgage-related securities, stock of the Federal Home Loan Banks (FHLB) of Des Moines and a mortgage revenue bond. ASB owns mortgage-related securities issued by the Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC) and Government National Mortgage Association (GNMA). As of December 31, 2016, ASB's stock in FHLB amounted to $11 million. ASB's sources of funds are deposits and funds from the receipt of interest and principal on outstanding loans receivable and mortgage-related securities, borrowings from the FHLB of Des Moines, securities sold under agreements to repurchase and other sources.

Company Address

Hawaiian Electric Industries Inc

1001 Bishop St Ste 2900
HONOLULU   HI   96813-3480
P: +1808.5435662

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