Hawaiian Electric, a utility company in Hawaii, has been aware of the increasing risk of extreme weather for some time. However, they have failed to take necessary precautions to strengthen their equipment and implement emergency plans used by other companies. This negligence has raised concerns among state lawmakers, consumer groups, and county officials who have urged the company to make significant changes.
As early as 2019, Hawaiian Electric acknowledged the risk of fires and began studying how utilities in California were addressing similar threats. In 2018, the Maui County government also issued a warning about the potential for power lines to ignite wildfires, especially in windy or stormy conditions. Despite these warnings, the company did not seek authorization from state regulators to invest $190 million in equipment upgrades until last year. The request is still pending, and even when approved, it will take several years to complete the necessary work.
The company’s shortcomings came to light after a video surfaced showing a power line in Lahaina emitting sparks and igniting dry grass just hours before the devastating fire broke out. Data from Whisker Labs, a sensor company, also indicated major faults with Hawaiian Electric’s systems during the strong winds. Experts have criticized the company for not reinforcing its system and taking adequate precautions.
Utility companies across the US have been taken aback by the increasing frequency and intensity of weather-related disasters in recent years. However, energy experts argue that these events should not have come as a surprise. Many utilities have neglected to maintain and improve their electric grids for decades, while regulators and lawmakers have turned a blind eye to these issues.
Hawaiian Electric is a unique case due to the nature of Hawaii’s geography, with multiple islands spread over 1,500 miles. The company operates several electric grids and depends on imported fuel to power its plants, resulting in high electricity rates. This makes it more challenging for the company and the state to invest in costly grid upgrades.
Efforts to improve the grid have been hindered by concerns over who will bear the costs. State Senator Gilbert S.C. Keith-Agaran comments that the utility does not want to pay for upgrades unless the cost can be passed on to ratepayers. Hawaiian Electric’s $190 million proposal aimed to replace aging power poles, including 80 in Maui, but energy experts believe many of the existing poles were not strong enough to withstand the winds in Lahaina. Additionally, the spread of invasive grasses around the poles has been a long-standing issue that has not been adequately addressed.
Hawaiian Electric claims to have spent substantial amounts on vegetation management, equipment replacement, and grid strengthening since 2018. However, experts argue that more could have been done. They suggest that the company should have implemented a power shut-off program in consultation with local authorities and emergency services. California utilities have successfully implemented such programs, shutting off power during high winds to reduce the risk of fires caused by power lines. Critics, including Henry Curtis of Life of the Land, have accused Hawaiian Electric of being dismissive of power shut-off programs.
The recent wildfire in Maui has raised concerns about the company’s actions and potential legal liabilities. At least four lawsuits have been filed on behalf of Maui residents, leading to a decline in the company’s share and bond prices. Hawaiian Electric has stated its commitment to remain a financially strong utility by consulting with advisors to address these challenges.
The cause of the fire is currently being investigated by the US Bureau of Alcohol, Tobacco, Firearms, and Explosives. Due to Hawaii’s unique situation, with its scattered islands and high electricity rates, addressing grid vulnerabilities and investing in upgrades has been a long-standing challenge. State lawmaker Lorraine R. Inouye introduced a bill in 2018 to strengthen electrical equipment in response to the growing threat of extreme weather. Unfortunately, the bill did not advance, and the company now faces the consequences of its inadequate preparations.
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