• Pacific Research Institute economist Dr. Wayne Winegarden examined the monopolist nature of Hawaiian Electric and the examples of their mismanagement for Forbes. Dr. Winegarden specifically highlights the Hu Honua lawsuit as part of this broader narrative.  The column details further how Hawaiian Electric’s monopoly behavior has led to wildfire risks, electric grid reliability challenges, and high electricity prices. A notable passage reads:
    • While the Maui wildfire tragedy has multiple causes, Hawaiian Electric was aware for years that its equipment needed maintenance to address the risks from extreme weather. Yet these investments were not made. The necessary investments dedicated toward upgrading capacity have also been deficient, which has led to stability issues. For instance, Hawaiian Electric has initiated “rolling outages” on the Big Island due to supply insufficiencies compared to demand.
    • The utility’s monopoly position has also led to market tensions with suppliers. For instance, Hu Honua Bioenergy has filed a lawsuit against Hawaiian Electric alleging that the utility imposed $1 billion in damages when it canceled a power purchase agreement with Hu Honua. The courts have not ruled on the merits of this allegation, but by locking out competition, the state’s monopoly model has certainly fostered the inhospitable environment that allowed this controversy to fester.
    • The monopolist’s controversies have not escaped investors’ notice either. As reported in Bloomberg Law, an investor alleges that “the leaders of Hawaiian Electric Co. and its parent, Hawaiian Electric Industries Inc., misleadingly touted its management of safety and climate change risks before the utility’s power lines sparked a catastrophic wildfire in August”.