Hawaiian Electric Industries (HE) investor relations material

Company overview and regulatory environment

• Serves 1.4 million people across five grids, covering 95% of Hawaii’s population, with a $4B rate base and $3.9B enterprise value as of 2026.

• Operates under a unique Performance Based Regulation (PBR) framework, providing stable, predictable revenues with sales decoupling and annual revenue adjustments.

• Rate rebasing is underway, with a phased increase and a tentative schedule for new rates to take effect in January 2027.

• PBR mechanisms include annual inflation adjustments, productivity factors, and ex post recovery for exogenous events.

• Additional revenue opportunities are being pursued in Phase 6, including modifications to inflation adjustments and performance incentives.

Wildfire mitigation and climate resilience

• Over $400M is being invested from 2025–2027 to reduce wildfire risk and enhance grid resilience, with 51% of distribution lines underground and only 6% in high-risk areas.

• Grid hardening includes replacing wood poles, copper conductors, and installing advanced weather stations and AI cameras.

• Public Safety Power Shutoff program and 24/7 monitoring are in place, with extensive community outreach and risk mapping.

• Statewide efforts include new legislation, a formal Office of the State Fire Marshal, and over $450M in wildfire mitigation funding.

• Wildfire Mitigation Plan costs of $350M have been approved, with securitization planned to minimize customer bill impact.

Financial performance and capital investment

• 2Q 2026 core EPS was $0.20, with net income of $22.5M after adjusting for wildfire and Pacific Current impacts.

• Adjusted O&M costs rose to $143.5M in 2Q 2026, and YTD adjusted O&M reached $282.9M.

• Utility LTM core ROE was 5.7% as of June 2026, below the allowed ROE due to non-recoverable items and wildfire impacts.

• Capital expenditures of $2.2–$2.4B are forecast for 2026–2028, with major projects including the Waiau Repowering Project and wildfire mitigation.

• Securitization and EPRM mechanisms are used to recover costs for major projects and wildfire mitigation.