Financial Data and Key Metrics Changes - In Q3 2025, the company generated net income of $30.7 million or $0.18 per share, including $4.5 million for pre-tax Maui wildfire-related expenses [10] - Consolidated core net income was $32.8 million or $0.19 per share, compared to $32.7 million or $0.29 per share in Q3 2024 [10] - Utility core net income for the quarter was $39.6 million, down from $43.7 million in Q3 2024, driven by lower tax benefits and higher expenses [10][11] Business Line Data and Key Metrics Changes - The holding company reported a core net loss of $6.8 million, improved from a loss of $10.9 million in Q3 2024, due to lower interest expenses and higher interest income [11] - The company has approximately $40 million in unrestricted cash at the holding company and $504 million at the utility as of the end of Q3 [12] Market Data and Key Metrics Changes - The company completed a $500 million unsecured debt offering in September, enhancing liquidity and access to capital markets [12] - The board approved a $10 million quarterly dividend to HEI for Q3 2025 [13] Company Strategy and Development Direction - The company is focused on improving financial strength and resilience, implementing wildfire safety strategies, and advancing tort litigation settlements [4][5] - A proposal for an alternative non-rate case process to rebase rates was approved by the PUC, aiming to avoid the burdens of a formal rate case [5][6] - Capital expenditures (CapEx) are projected to increase significantly, with expectations of $400 million in 2025 and $550 million-$700 million in 2026, driven by wildfire safety and reliability projects [15][16] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the progress of the Maui wildfire tort litigation settlement and operational risk improvements since the 2023 wildfires [7][9] - The company anticipates that the first payment related to the settlement will be due no sooner than early 2026 [14] - Management is cautious about providing earnings guidance until after the final settlement approval process is completed [25] Other Important Information - The company is awaiting PUC approval for its utility wildfire safety strategy and has filed an application to increase costs for the Wai'a Repowering Project [15] - Approximately $1.8 billion-$2.4 billion in total CapEx is expected over the next three years, subject to additional PUC approvals [16] Q&A Session Summary Question: Revenue requirement and timing under the alternative rebasing filing - Management discussed the timing of the rebasing proposal due to the PUC on January 7, 2026, and the potential for a 2027 test year rate case if the proposal is unsuccessful [20][22] Question: Sustainable cadence of utility to hold co-dividends - The utility dividend to the holding company has been set based on the needs of the holding company, with no changes expected in the foreseeable future [23] Question: CapEx guidance and earnings guidance - Management indicated it is too soon to provide earnings guidance, as it will depend on the final settlement approval process and the outcomes of the rate rebasing [25][26] Question: Update on the sale of the remaining portion of the bank - The company intends to monetize its remaining stake in American Savings but has not committed to a specific timeline [32] Question: Expectations of the commission's report on the wildfire fund - The PUC is on track to submit a report to the Hawai'i State Legislature, but management is uncertain about potential legislative movements in 2026 [33][34]