Financial Data and Key Metrics Changes - The company generated a loss from continuing operations of 1.3billionforthefullyear2024,whichincludeswildfiresettlementaccrualsof1.9 billion pretax and other Maui wildfire-related expenses [28][29] - Consolidated core net income was 124millionin2024,downfrom152 million in 2023, while utility core net income decreased to 181millionfrom195 million in 2023 [29] - The average residential bill decreased by 7% in 2024, reflecting the company's efforts to reduce customer rates [14] Business Line Data and Key Metrics Changes - The sale of 90.1% of American Savings Bank (ASB) for 405millionwascompleted,withnetproceedsofapproximately380 million used to pay down holding company debt [25][26] - ASB's 2024 results showed a net loss from discontinued operations of 103millioncomparedtoanetincomeof53 million in 2023 [27] Market Data and Key Metrics Changes - The utility achieved a 36% renewable portfolio standard in 2024, up from 33% in 2023, on track to reach an interim goal of 40% by 2030 [14] - The company ended 2024 with the strongest liquidity position in its history, bolstered by a successful equity offering that raised 558million[10][23]CompanyStrategyandDevelopmentDirection−ThecompanyaimstofocusonitscoreutilitybusinessfollowingthesaleofASB,whichsimplifiesitsstrategyandregulatoryposition[11][12]−Athree−yearactionplanforwildfiresafetywithanestimatedcostof450 million has been established, with approximately 400millionexpectedtobecapitalexpenditures[18][19]Management′sCommentsonOperatingEnvironmentandFutureOutlook−ManagementexpressedconfidenceinthepositiveoutcomeoftheHawaiiSupremeCourtruling,whichisasignificantsteptowardsfinalizingthesettlementagreementrelatedtotheMauiwildfires[21][22]−Thecompanyplanstocontinuepursuingsupportivelegislationandaimstoreturntoinvestmentgrade[24][86]OtherImportantInformation−Thecompanyinvestedapproximately120 million in wildfire safety improvements in 2024, including a public safety power shutoff program and upgrades to utility infrastructure [16][17] - The updated wildfire safety strategy was filed with the Public Utilities Commission (PUC) in January, building upon immediate actions taken after the August 2023 wildfires [18] Q&A Session Summary Question: Confidence in the settlement proceeding without interference from insurers - Management expressed confidence in the positive outcome of the Hawaii Supreme Court decision, which is a major step towards finalizing the settlement agreement [36][37] Question: Capital expenditure expectations and financing plans - The company is refining its three-year capital forecast, expecting an increase in capital expenditures, particularly for wildfire safety and other approved projects [42][49] Question: Legislative session and potential impacts on customer bills - Management noted that discussions are ongoing regarding the impacts on customers and the establishment of a wildfire recovery fund, emphasizing the importance of balancing customer and shareholder needs [52][66] Question: Securitization and rating agency expectations - Management indicated that there is a good understanding of the benefits of securitization for securing lower-cost financing, which would ultimately benefit customers [71][73]
