Current:Home > Finance'Factually and legally irresponsible': Hawaiian Electric declines allegations for causing deadly Maui fires -FinanceMind
'Factually and legally irresponsible': Hawaiian Electric declines allegations for causing deadly Maui fires
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Date:2025-04-15 20:14:03
In the face of multiple lawsuits alleging responsibility for the cataclysmic Maui fires that destroyed thousands of buildings, displaced residents and killed over 100 people, Hawaiian Electric Company (HECO) has rebutted allegations that its power lines were the cause of the deadly inferno.
In response to being sued by Maui County on Thursday, the power company issued its first statement on the fires on Monday, saying its power lines had been "de-energized for more than six hours" before the devastating "Afternoon Fire" started.
The company also said, "the cause of the devastating Afternoon Fire has not been determined."
However, downed HECO power lines from strong winds were behind a 6:30 a.m. "small Morning Fire" that was 100% contained" and "extinguished" by the Maui County Fire Department, according to the statement. Firefighters were able to leave the scene by 2 p.m.
"We were surprised and disappointed that the County of Maui rushed to court even before completing its own investigation," said Shelee Kimura, president and CEO of Hawaiian Electric.
Calling the suit "factually and legally irresponsible" and "inconsistent" with the spirit of recovery for the community, Kimura went on to say, "We continue to stand ready to work to that end with our communities and others. Unfortunately, the county’s lawsuit may leave us no choice in the legal system but to show its responsibility for what happened that day."
The company said that records indicate "there was no electricity flowing through the wires in the area or anywhere else on the West Maui coast" on the afternoon of Aug. 8.
More:Devastating losses: Economic toll from Maui fires at least $4 billion, Moody's projects
According to the company's timeline, after the small fire in the morning, an emergency crew by the power company arrived at Lahainaluna Road in the afternoon to make repairs. They saw no fire, smoke or embers, the company said.
Right before 3 p.m., crew members saw a fire break out and reported the fire to 911. "By the time the Maui County Fire Department arrived back on the scene, it was not able to contain the Afternoon Fire and it spread out of control toward Lahaina," HECO said.
HECO has not immediately responded to USA TODAY's request for comment.
In its lawsuit, Maui County said Hawaiian Electric was negligent for knowing that the high winds predicted days earlier "would topple power poles, knock down power lines, and ignite vegetation," the lawsuit said. "Defendants also knew that if their overhead electrical equipment ignited a fire, it would spread at a critically rapid rate."
The county said it is seeking compensation for damage to public property and resources in Lahaina as well as nearby Kula.
"To the extent HECO has information of a second ignition source, HECO should offer that evidence now," Baron & Budd law firm attorney John Fiske, who is representing Maui County, told local news outlet KHON2. "The ultimate responsibility rests with HECO to de-energize, ensure its equipment and systems are properly maintained, and ensure downed power lines are not energized."
Some are skeptical of HECO claiming it was the cause of the first fire but not the second, and that the company is pointing the finger at other entities.
"Essentially, as I understand it, Hawaiian Electric is admitting that they started the fire that destroyed Lahaina, but saying that the Maui Fire Department is to blame for failing to put it out," said Singleton Schreiber Managing Partner Gerald Singleton. Singleton's law firm has filed multiple lawsuits against HECO on behalf of individuals who lost their homes and belongings in the fire.
"If so, that’s not a defense. Hawaiian Electric started the fire and they are legally liable to their victims. Period."
Even one of HECO's investors is suing the company, accusing HECO of fraud and failing to disclose that its wildfire prevention and safety measures were inadequate.
Hawaiian Electric stock up nearly 45%
On the day of the fire, HECO stock was trading at $35.58. Following accusations its power lines may have sparked the fires, the stock dropped precipitously to $12.03, down nearly 63%, in days. After Maui County filed a lawsuit on Thursday, its stock dropped to a new low of $9.66 on Friday, down 70% since Aug. 11. As of the close of trading Monday, the stock has recovered slightly to $13.97.
Kathleen Wong is a travel reporter for USA TODAY based in Hawaii. You can reach her at kwong@usatoday.com
Contributing: Associated Press
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