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SENATOR JARRETT KEOHOKALOLE COMMENDS HAWAIIAN ELECTRIC INDUSTRIES SALE OF AMERICAN SAVINGS BANK TO INDEPENDENT INVESTORS

Writer's picture: Hawaiʻi State Senate Hawaiʻi State Senate

HONOLULU – Senator Jarrett Keohokalole (District 24 – Kāne‘ohe, Kailua) today commended Hawaiian Electric Industries’ (HEI) sale of American Savings Bank (ASB). On Tuesday morning, HEI announced an agreement to sell 90.1% of the company’s shares in ASB to independent investors. HEI is the parent company of Hawaiian Electric Company (HECO), which serves Oʻahu.  

 

"The sale of ASB is a significant step by HEI to show that the company and their shareholders are taking responsibility for their financial situation in the wake of the Maui wildfires. This, combined with their stock sale in September 2024, demonstrates that HEI is taking the concerns of the Legislature and rate payers seriously," said Senator Keohokalole, who chairs the Senate Committee on Commerce and Consumer Protection.

 

Last year, state senators cited concerns about Hawaiian Electric asking for a surcharge on customers’ electricity bills and receiving liability protections to help protect the company. In the wake of the wildfires, HEI’s credit rating dropped to junk bond status, meaning it was seen as a risky investment. The senators were concerned that these actions could unfairly burden customers while helping a company that was struggling financially.

 

“Our concern last session was adding to the cost of ratepayers' electrical bills without assurances that Hawaiian Electric’s stockholders were doing their part to absorb the costs. Today's announcement appears to validate those concerns,” stated Keohokalole. "It is especially encouraging to hear that the sale is structured to keep local jobs and operations of a local bank in local hands."

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