Critics and lawmakers are questioning whether Hawaiian Electric’s parent company sold American Savings Bank too cheaply in 2024, as the bank’s value has since grown from $450 million to nearly $1.2 billion after going public. The controversy is surfacing during hearings on Hawaiian Electric’s proposed $170 million rate increase.
- HEI sold American Savings Bank on New Year’s Eve 2024 for approximately $450 million to help fund Hawaiian Electric’s $2 billion Maui wildfire settlement obligations.
- The bank went public on the NYSE and is now valued at nearly $1.2 billion — a 164% increase — prompting critics to argue HEI left hundreds of millions on the table.
- Hawaiian Electric is currently seeking a $170 million rate increase before the Public Utilities Commission, which is fueling criticism over the bank sale’s pricing.
- State lawmakers questioned the sale price as early as March 2025, suggesting a higher sale price could have strengthened HECO’s finances and better compensated fire victims.
- Hawaiian Electric maintains the bank was sold for the maximum market value available at the time of the transaction.
Source: Hawaii News Now
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