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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: December 29, 1994
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Exact Name of Registrant Commission I.R.S. Employer
as Specified in Its Charter File Number Identification No.
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Hawaiian Electric Industries, Inc. 1-8503 99-0208097
Hawaiian Electric Company, Inc. 1-4955 99-0040500
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State of Hawaii
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(State or other jurisdiction of incorporation)
900 Richards Street, Honolulu, Hawaii 96813
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(Address of principal executive offices and zip code)
Registrant's telephone number, including area code:
(808) 543-5662 - Hawaiian Electric Industries, Inc.
(808) 543-7771 - Hawaiian Electric Company, Inc.
None
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(Former name or former address, if changed since last report.)
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Item 5. Other Events
On December 29, 1994, Hawaiian Electric Industries, Inc. (HEI) issued the
following news release:
HAWAIIAN ELECTRIC INDUSTRIES, INC. UTILITY SUBSIDIARY RECEIVES RATE RELIEF
HONOLULU -- Hawaiian Electric Industries, Inc. (NYSE - HE) today reported
that its electric utility subsidiary serving the island of Oahu received a
final decision and order from the Hawaii Public Utilities Commission
authorizing a $40.5 million, or 6.5%, increase in annual revenue.
The rate increase is based on a 12.15% return on average common equity and
a 1994 calendar test year. The order grants Hawaiian Electric Company
(HECO) an increase of approximately $3.5 million in addition to interim
increases that took effect in April, May and November. The additional
increase takes effect on January 1, 1995.
The commission completed hearings in November on HECO's pending rate
increase request for a 1995 calendar test year. Revenue from the 1994 and
1995 cases would help pay for transmission and distribution system
improvements on the state's most populous island.
Hawaiian Electric Industries is a diversified holding company that delivers
essential services to the people of Hawaii through its electric utility,
savings bank, maritime freight transportation and residential real estate
development subsidiaries.
On January 3, 1995, HEI issued the following news release:
HAWAIIAN ELECTRIC INDUSTRIES, INC. UTILITY SUBSIDIARY RECEIVES 1995 INTERIM
RATE ORDER
HONOLULU -- Hawaiian Electric Industries, Inc. (NYSE - HE) reported that
its electric utility subsidiary serving the island of Oahu received a
decision on December 30, 1994 from the Hawaii Public Utilities Commission
authorizing an interim increase of $13.2 million, or 1.9%, in annual
revenue.
Approximately $10.6 million of the interim increase took effect January 1,
1995. The balance is effective in steps in May and November 1995. The
interim order was calculated using a 12.6% return on common equity and a
forecasted 1995 test year. The ruling, which is subject to further analysis
and possible revision in the commission's final ruling, is part of Hawaiian
Electric Company's revised request for an increase of $38.5 million, or
about 5%, based on a 13.25% return on common equity.
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Hawaiian Electric Industries is a diversified holding company that delivers
essential services to the people of Hawaii through its electric utility,
savings bank, maritime freight transportation and residential real estate
development subsidiaries.
Rating Agency Actions
On January 3, 1995, Standard & Poor's Corporation (S&P) revised its ratings
outlook on Hawaiian Electric Industries, Inc. and its utility subsidiary,
Hawaiian Electric Company, Inc. (HECO) to "stable" from "negative". S&P also
revised its ratings outlook on HECO's subsidiaries, Maui Electric Company,
Limited and Hawaii Electric Light Company, Inc., to "stable" from "negative".
See Item 7, Financial Statements and Exhibits, for the S&P press release
summarizing its rating actions.
As stated in HEI's January 3, 1995 press release, the increase for the 1995 test
year was based on a 12.6% return on common equity rather than the 12.16% stated
in the S&P press release.
Item 7. Financial Statements and Exhibits
(c) Exhibits
HEI/HECO S&P Press Release
Exhibit 28(a)
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrants have duly caused this report to be signed on their behalf by the
undersigned thereunto duly authorized. The signature of the undersigned
companies shall be deemed to relate only to matters having reference to such
companies and any subsidiaries thereof.
HAWAIIAN ELECTRIC INDUSTRIES, INC. HAWAIIAN ELECTRIC COMPANY, INC.
(Registrant) (Registrant)
/s/ Robert F. Mougeot /s/ Paul Oyer
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Robert F. Mougeot Paul A. Oyer
Financial Vice President and Financial Vice President and
Chief Financial Officer Treasurer
(Principal Financial Officer of HEI) (Principal Financial Officer of HECO)
Date: January 4, 1995 Date: January 4, 1995
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Exhibit 28(a)
NEW YORK - DJ - Standard & Poor's Ratings Group said it revised its
ratings outlook on Hawaiian Electric Industries, Inc.'s (HEI) and its utility
subsidiary, Hawaiian Electric Co., (HECO) to stable from negative. S&P also said
it revised its ratings outlook on HECO's units, Maui Electric Co. (MECO) and
Hawaii Electric Light Co. (HELCO) to stable from negative.
Said S&P: "S&P affirms its ratings on the various entities (see list
below).
"The outlook revision reflects recent Hawaii Public Utilities Commission
(PUC) decisions which demonstrate a continuing trend of regulatory support for
the company's heavy construction program and HEI's commitment to a well balanced
capital structure. As expected, on Dec. 30, HEI infused $30 million of common
equity into the utility.
"HECO, the system's primary cash source (76% of operating income), has
received three orders from the PUC, all of which took effect Jan. 1, 1995. On
Dec. 28, the PUC issued a final decision in the 1994 test-year case, awarding a
6.5% hike, or about 75% of the amount sought by HECO. The permanent increase is
premised on a 12.15% return on equity (ROE) and grants an increase of
$3.5 million in addition to the interim hikes of $36.9 million that became
effective in several steps during 1994.
"On Dec. 30, 1994, the PUC granted HECO an interim hike of $13.2 million
(1.9%) in the 1995 test-year proceeding based on a 12.16% ROE. The ruling, which
is subject to further review, is part of HECO's revised request for a
$38.5 million hike. The PUC deferred consideration of HECO's request for an
$8.6 million increase related to the Waiau-CIP transmission line until a later
date. A final order is expected this fall. In addition, on Nov. 29, 1994, the
PUC authorized recovery of the full cost of postretirement benefits other than
pensions.
"The higher tariffs are needed to recover rising operating costs and new
capital projects aimed at improving reliability.
"HECO ratings reflect a low average business position and somewhat subpar
financials when adjusted for off-balance sheet purchased power obligations. The
utility's ambitious capital program, oil-dependency, soft economy, and high
rates are only partly offset by limited competitive threats and absence of both
acid rain exposure and nuclear challenges. Yet, continued regulatory support and
management's commitment to a solid capital structure will help to alleviate
downward credit pressure," S&P said. Rating Affirmed, Outlook Revised to Stable
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Rating
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Hawaiian Electric Industries, Inc.
Senior unsecured debt BBB
Commercial paper A-2
Hawaiian Electric Co.
Senior secured debt BBB+
Senior unsecured debt BBB
Unsecured IRBs BBB
Preferred stock BBB
Commercial paper A-2
Maui Electric Co.
Senior unsecured debt BBB
Hawaii Electric Light Co.
Senior unsecured debt BBB
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