Maui County Sues Hawaiian Electric over Deadly Wildfires
Introduction
Maui County has filed a lawsuit against Hawaiian Electric for damages caused by the devastating wildfires that have resulted in numerous fatalities and billions of dollars in property losses.
Impact on Hawaiian Electric
Upon news of the lawsuit, Hawaiian Electric’s stock dropped by 6% in extended trading. The electric utility has announced the suspension of its quarterly dividend starting in the third quarter to allocate funds towards rebuilding and restoring power after the fires.
Allegations against Hawaiian Electric
Maui County’s attorneys claim that Hawaiian Electric negligently failed to de-energize its powerlines despite receiving a warning from the National Weather Service about the high fire risk due to Hurricane Dora’s strong winds and drought conditions.
The wildfires have had devastating consequences, reducing the historic town of Lahaina to ruins. This event marks the deadliest blazes in the United States in over a century and the worst disaster in Hawaii’s history, with 115 reported deaths and over 1,000 people still missing.
Hawaiian Electric’s Response
When the fires broke out, Hawaiian Electric issued a statement acknowledging that 30 utility poles had fallen in West Maui, the area where Lahaina is located.
In the lawsuit, Maui County’s attorneys argue that these powerlines ignited the fast-moving and destructive Lahaina Fire, which resulted in the complete destruction of homes, businesses, churches, schools, and historic sites.
Legal Action and Financial Impact
The lawsuit filed by Maui County is one of several seeking damages for the catastrophic wildfires caused by Hawaiian Electric. Fitch downgraded Hawaiian Electric’s credit rating to junk status, highlighting the company’s potential liability of over $3.8 billion for the Maui wildfires. This situation is reminiscent of Pacific Gas & Electric’s bankruptcy filing in 2019 due to liabilities from California wildfires.
Moody’s estimates that the Maui wildfires have resulted in economic losses of up to $6 billion.
County’s Claims and Negligence
In the lawsuit, Maui County asserts that Hawaiian Electric could have prevented the loss of life and destruction by shutting off the power. The county highlights that the Federal Emergency Management Agency estimates the costs of rebuilding Lahaina to exceed $5 billion.
Furthermore, Maui County states that Hawaiian Electric was aware of the high wildfire risk in western Maui, as indicated in the county’s 2020 hazard mitigation plan. Despite this knowledge, Hawaiian Electric continued to use wooden utility poles, which are prone to decay in Maui’s environment. The county alleges that many of these poles were severely damaged by decay, contributing to their failure during the high winds. Additionally, Hawaiian Electric’s overhead transmission lines lacked available technology to reduce fire risks.
This Article Maui County Sues Hawaiian Electric for Damages Over Deadly Wildfires: Stock Drops 6% was first Published on World Weekly News
Source: Maui County Sues Hawaiian Electric for Damages Over Deadly Wildfires: Stock Drops 6%
