Beatrice Lang
Hawaiian Electric Industries, Inc. (HEI) is the largest electricity supplier in Hawaii, serving 95% of the state's population. It is a private, investor-owned utility (IOU) and comprises three electric utilities: Hawaiian Electric Company (HECO), Hawai'i Electric Light Company (HELCO), and Maui Electric Company (MECO). The company has faced scrutiny and lawsuits following devastating wildfires in Maui, allegedly caused by its refusal to shut off energized power lines during high-risk conditions. There is growing interest in converting Hawaiian Electric and its subsidiaries into community-owned cooperatives or municipal utilities, with proponents arguing for more democratic control and better alignment with community needs and renewable energy goals. The Kauai Island Utility Cooperative (KIUC), the only electric utility in the state outside of Hawaiian Electric's control, is cited as a successful example of a publicly owned cooperative.
| Characteristics | Values |
|---|---|
| Electricity Supplier in Hawaii | Hawaiian Electric Industries, Inc. (HEI) |
| Electricity Supplier in Kauai | Kauai Island Utility Cooperative (KIUC) |
| Number of Electric Utility Companies Regulated by Hawaii Public Utilities Commission | 4 |
| Number of Gas Utility Companies Regulated by Hawaii Public Utilities Commission | 1 |
| Percentage of Population Supplied by HEI | 95% |
| Number of Customers Served by HEI in 2023 | 306,978 |
| Total Firm Generating Capability of HEI in 2023 | 1,614.5 megawatts |
| Total Firm Generating Capability of HEI in 2022 | 280.5 megawatts |
| Percentage of Power from Renewable Resources in 2022 | 35.6% |
| Percentage of Power from Renewable Resources in 2020 | 40.8% |
| Year of Incorporation of Hawaiian Electric Company | 1891 |
| Year Hawaii Became a US State | 1959 |
| Year of Merger Announcement with NextEra | 2022 |
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What You'll Learn
- Hawaiian Electric Industries, Inc. (HEI) is the largest electricity supplier in Hawaii
- The company serves 95% of the state's population
- It owns Hawaiian Electric Company, Hawai'i Electric Light Company, and Maui Electric Company
- Hawaiian Electric supports the adoption of electric vehicles
- There is interest in converting the company from private to public ownership
Hawaiian Electric Industries, Inc. (HEI) is the largest electricity supplier in Hawaii
HEI has a long history in Hawaii, with the Hawaiian Electric Company incorporating in 1891, when Hawaii was still an independent kingdom. By 1914, HECO had expanded to serve rural areas of Oahu, and by 1937, it had begun construction on its second power plant. During World War II, HECO played a crucial role in providing electricity to US military bases on the island.
In addition to its electric utilities, HEI also owns a financial institution, American Savings Bank, and a clean energy and sustainability company, Pacific Current LLC. The company employs more than 2,000 people, and approximately 20,000 Hawaii residents are shareholders of HEI.
While HEI is currently a private, investor-owned utility, there have been recent discussions about converting it into a publicly owned cooperative or municipal utility. Some groups, such as KULOLO (Keep Our Utility Locally Owned and Locally Operated), advocate for public ownership, arguing that it would make the utility more responsive to the community and better able to meet the island's modern energy needs.
Despite facing challenges, such as the recent wildfires in Maui and the impact of the COVID-19 pandemic, HEI remains a vital part of Hawaii's economy and energy infrastructure. The company is working towards increasing the adoption of electric vehicles in the state, with a goal of making the majority of vehicles in Hawaii electric by 2045.
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The company serves 95% of the state's population
Hawaiian Electric Industries, Inc. (HEI) is the largest electricity supplier in Hawaii, providing power to approximately 95% of the state's population. The company comprises three electric utilities: Hawaiian Electric Company (HECO), which serves the island of Oahu; Hawai'i Electric Light Company (HELCO), which serves the Big Island; and Maui Electric Company (MECO), which serves Maui, Lanai, and Molokai. HECO, HELCO, and MECO together make up the "HECO Companies".
HECO, the oldest of the three utilities, was incorporated in 1891 when Hawaii was still an independent kingdom. By 1914, it had expanded to provide rural service to the windward side of Oahu, and by 1937, it had begun construction on its second power plant. During World War II, HECO's power plants supplied electricity to US military bases, generating over one million kilowatt-hours of electricity daily. By the time Hawaii became a US state in 1959, Oahu was fully electrified.
Today, HECO, HELCO, and MECO collectively employ more than 2,000 people. Approximately 20,000 Hawaii residents are shareholders of their parent company, HEI, which also owns a financial institution, American Savings Bank, and a clean energy company, Pacific Current LLC.
Despite its extensive reach and history, Hawaiian Electric has faced scrutiny and public debate over its future. The company has been criticised for its role in the devastating Maui wildfires, which allegedly resulted from its refusal to shut off energised power lines during high-risk conditions. This incident sparked discussions about converting the company from a private, investor-owned utility to a community-owned cooperative or a municipally-owned utility.
The Kauai Island Utility Cooperative (KIUC), which manages electricity on the island of Kauai, has been cited as a successful example of a public power alternative. KIUC is owned by its members and operates democratically, with members voting for responsive board members. Additionally, as a nonprofit, KIUC returns excess income to its members, keeping money within the community.
As Hawaiian Electric grapples with the aftermath of the wildfires and faces pressure for public ownership, it also strives to embrace renewable energy and support the adoption of electric vehicles in Hawaii. The company aims to have the majority of vehicles in the state be electric by 2045, and it has implemented a Public Safety Power Shutoff (PSPS) program to reduce wildfire risks.
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It owns Hawaiian Electric Company, Hawai'i Electric Light Company, and Maui Electric Company
Hawaiian Electric Industries, Inc. (HEI) is the largest electricity supplier in Hawaii, providing power to 95% of the state's population. It owns Hawaiian Electric Company, Hawaii Electric Light Company, and Maui Electric Company.
The Hawaiian Electric Company (HECO) was incorporated in 1891, when Hawaii was still an independent kingdom. It serves the island of Oahu and has been pivotal in the electrification of the island. HECO has over 2,500 customers and has been expanding its services and marketing electric products since the early 1900s.
The Hawaii Electric Light Company (HELCO) serves the island of Hawaii, also known as the Big Island.
The Maui Electric Company (MECO) serves the islands of Maui, Lanai, and Molokai. In 2024, the company faced a lawsuit alleging that its power lines, which were knocked down by strong winds, had caused Maui's wildfires.
Together, these companies, known as the "HECO Companies," are regulated by the Hawaii Public Utilities Commission, which oversees four electric and one gas utility company in the state.
There has been growing interest in converting these companies from private, investor-owned utilities to community-owned cooperatives or municipal utilities. This is partly due to the success of the Kauai Island Utility Cooperative (KIUC), which is the only electric utility in the state outside of Hawaiian Electric's control. KIUC is owned by its members and operates democratically, with excess income returned to the community.
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Hawaiian Electric supports the adoption of electric vehicles
Hawaiian Electric Industries, Inc. (HEI) is the largest supplier of electricity in Hawaii, serving about 95% of the state's population. Hawaiian Electric supports the adoption of electric vehicles (EVs) as a critical part of its clean energy strategy. The company has set an ambitious goal: to ensure the majority of vehicles in Hawaii are electric by 2045.
As of 2018, electric vehicles made up only 1% of all vehicles in the state. To achieve its goal, Hawaiian Electric filed a roadmap with the state, outlining its plans for increasing EV adoption. The company also owns power plants and purchases power from independent plant owners, including distributed solar, to support its generating capability. In 2023, HEI's total firm generating capability was 1,614.5 megawatts, serving over 300,000 customers.
Hawaiian Electric offers various incentives and programs to encourage the adoption of electric vehicles. The company provides information on electric vehicle rates, fast-charging locations, and other incentives to make the transition to electric vehicles more accessible and attractive to consumers.
Hawaiian Electric is committed to increasing the use of renewable energy sources. In 2022, 28% of the company's power came from renewable resources, an increase from 25% in 2020. The company has implemented a Public Safety Power Shutoff (PSPS) program to reduce the risk of wildfires, which have had devastating impacts on the state in the past.
Hawaiian Electric's efforts to support the adoption of electric vehicles are aligned with its goal of promoting clean energy and sustainability. The company owns a clean energy and sustainability company, Pacific Current LLC, further demonstrating its commitment to environmental initiatives. With its focus on renewable energy and electric vehicles, Hawaiian Electric is working towards a more sustainable future for Hawaii.
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There is interest in converting the company from private to public ownership
Hawaiian Electric Industries, Inc. (HEI) is the largest electricity supplier in Hawaii, powering 95% of the state through its electric utilities: Hawaiian Electric Company, Hawai'i Electric Light Company, and Maui Electric Company. However, there is growing interest in converting the company from private to public ownership.
The discussion around public ownership largely stems from the success of the Kauai Island Utility Cooperative (KIUC), the only electric utility in the state not controlled by HEI. KIUC is a consumer-owned cooperative, where members own the utility and vote for board members, making it more responsive to the community. As a non-profit, any excess income is returned to the members, keeping money in the community rather than paying dividends to out-of-state investors.
On Oahu, a group called KULOLO advocates for the public acquisition of HEI's subsidiary, HECO, arguing that a municipal utility owned by the City and County of Honolulu would be more responsive to the community and better equipped to meet modern energy needs. This sentiment is echoed by Maui Mayor Alan Arakawa, who has expressed frustration with MECO's lack of alignment with the county's energy plans. A group of legislators and county council members, led by state House Energy Committee chair Chris Lee, have also expressed interest in exploring public ownership of electric utilities.
The interest in converting HEI and its subsidiaries to public ownership is driven by a desire for greater community responsiveness and control over energy decisions. The KIUC model demonstrates the potential benefits of cooperative or municipal utilities, where profits are reinvested locally and decisions are made democratically. With HEI facing challenges like the recent wildfires and a significant drop in stock value, the time may be ripe to reevaluate the structure of Hawaii's energy sector.
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Frequently asked questions
Hawaiian Electric Industries (HEI) is a privately-owned investor-owned utility (IOU). However, there is interest in converting the company to a publicly-owned utility.
As of 2023, Hawaiian Electric Industries supplies roughly 95% of Hawaii's residents with power, making it the largest electricity supplier in the state.
The consumer-owned Kauai Island Utility Cooperative (KIUC) is the only electric utility in the state outside of Hawaiian Electric's control. KIUC is owned by its members, who vote for board members, making it more responsive to the community. As a non-profit, any excess income is returned to the members, keeping money in the community.
Some argue that Hawaiian Electric's business model is different from that of a public utility, and it has a distinct portfolio of energy resources. For example, it does not have access to natural gas or legacy hydroelectric projects as energy sources.
