Hawaiian Electric to pay majority of $4 Billion in Maui Wildfire Settlement

Nearly a year after a devastating wildfire ravaged Maui, killing 102 people and destroying the historic town of Lahaina, a landmark legal settlement has been reached. Hawaiian Electric, Hawaii’s largest utility, has agreed to pay the largest portion of a $4.037 billion settlement, compensating more than 10,000 plaintiffs, including homeowners and businesses affected by the disaster.

The proposed settlement, filed late Friday in a Maui-based state court, comes just days before the one-year anniversary of the wildfire. This agreement marks a significant resolution to over 600 lawsuits filed by survivors of the calamity, which swept through one of the world’s most picturesque destinations. The blaze caused extensive damage, destroying more than 3,000 homes and structures, and displacing thousands of residents.

Governor Josh Green, who advocated for a swift and comprehensive settlement, hailed the agreement as a crucial step towards recovery. “Settling a matter like this within a year is unprecedented,” Green stated on Friday. “It will be beneficial that our people don’t have to wait as long as others have in similar tragedies to rebuild their lives.”

The settlement, which still requires court approval, is a major financial commitment from Hawaiian Electric, expected to pay approximately $1.99 billion of the total sum. This figure is less than the $4.9 billion liability that investment research firm Capstone projected could have led to the company’s bankruptcy. The settlement aims to mitigate potential financial strains on Maui County and avoid the bankruptcy of the utility, which supplies electricity to over 90% of residents across Oahu, Maui, Molokai, Lanai, and Hawaii Island.

State officials, including Governor Green, had pushed for a global settlement to expedite compensation and recovery efforts, rather than prolonging negotiations and payments. The settlement covers less than half of the total estimated cost of the disaster, which stands at nearly $12 billion.

While the settlement does not include any admission of liability by Hawaiian Electric, it represents a significant step toward addressing the immense financial and emotional toll inflicted by the wildfire. The agreement underscores a commitment to swiftly addressing the needs of those impacted and supporting the rebuilding of the affected communities. The settlement’s approval and distribution of funds will be monitored as Maui continues its recovery from the unprecedented tragedy.