Hawaiian Electric Industries (HE) Investor presentation summary

Strategic position and execution

• Vertically integrated electric utility serves 1.4M people across five grids, covering ~95% of Hawaii’s population; rate base ~$4.1B and owned generation 1,608 MW.

• Since 2023, key financial and operational objectives have advanced, including wildfire risk reduction, restored credit ratings, stronger liquidity, capital-market access and business simplification.

• 2025 and 2026 YTD safety metrics reached records, with TCIR improving 52% since 2024; customer satisfaction rose from the 20th to 86th percentile over the same period.

Wildfire mitigation and risk reduction

• Planned 2025–27 wildfire and resilience spending totals $407M: $237M WMP capital, $80M WMP O&M, $79M resilience capital and $11M grid modernization capital.

• Since Jan. 2024, replaced or upgraded 5,072 poles, 52.9 miles of conductor, 16,114 fuses and 4,594 lightning arresters; installed 135 weather stations and 145 AI-assisted camera stations.

• The 2025–27 Wildfire Mitigation Plan is PUC-approved and being implemented; $350M of WMP costs was approved, with securitization planned to limit customer bill impact.

• Hawaii has 622 high-wildfire-risk transmission and distribution miles versus 74,000 for six California utilities; 6% of its T&D system is high-risk versus 28% in California.

• Global Maui wildfire settlement signed; $479M first installment paid in April 2026 and $80M prepaid in Sept./Oct.; Act 258 liability-cap rulemaking is underway, and a wildfire fund was deemed warranted.

Regulation and growth opportunities

• Performance-based regulation and sales decoupling support stable, predictable revenues; rate rebasing is underway for the next five-year rate period, with a preliminary PUC decision schedule for mid-to-late April 2027.

• Rebasing request seeks $170M of additional revenue, or 5.3%; illustrative increases include $125M in 2027 and a $44.8M 2028 depreciation adjustment, totaling $169.8M requested.

• PBR Phase 6 objectives include basing inflation adjustment on actual inflation, revising PIMs and expanding potential PIM earnings impact to 200 bps at risk, with 50 bps downside and 150 bps upside.

• Illustrative full-year run-rate utility Core ROE is 8.3%–8.8% after rebasing, excluding potential PIMs; illustrative after-tax PIM contributions range from $11M at 50 bps to $33M at 150 bps.

• Planned investments include $1.3B through 2035 for renewable interconnections, ~$60M for distribution upgrades over 10 years and $190M over five years for climate adaptation; procurements include 1,650 GWh renewable energy and 465 MW grid-forming resources.