|
|
|
|
|
|
|
|
|
<PAGE>
Page 1 of 15
File No. 69-284
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM U-3A-2
Statement by Holding Company Claiming Exemption
Under Rule U-3A-2 from the Provisions of the
Public Utility Holding Company Act of 1935
To Be Filed Annually Prior to March 1
HAWAIIAN ELECTRIC INDUSTRIES, INC. and
HAWAIIAN ELECTRIC COMPANY, INC.
each hereby files with the Securities and Exchange Commission (SEC),
pursuant to Rule 2, its statement claiming exemption as a holding
company from the provisions of the Public Utility Holding Company Act
of 1935 (PUHCA), and submits the following information:
1. Name, State of organization, location and nature of business of
claimant and every subsidiary thereof, other than any exempt
wholesale generator (EWG) or foreign utility company in which
claimant directly or indirectly holds an interest.
Hawaiian Electric Industries, Inc. (HEI) was incorporated under
the laws of the State of Hawaii on July 20, 1981, for the purpose of
becoming the holding company of Hawaiian Electric Company, Inc. (HECO)
and its subsidiaries. Its principal executive office is located at 900
Richards Street, Honolulu, Hawaii 96813. The restructuring became
effective on July 1, 1983. HEI is a nonutility holding company which
currently conducts no business and owns no material assets other than
the common stock of HECO, HEI Investment Corp. (HEIIC), Malama Pacific
Corp. (MPC), Hawaiian Tug & Barge Corp. (HTB), HEI Diversified, Inc.
(HEIDI), Pacific Energy Conservation Services, Inc. (PECS), HEI Power
Corp. (HEIPC), HEI District Cooling, Inc. (HEIDC), ProVision
Technologies, Inc., Hycap Management, Inc. (Hycap), Hawaiian Electric
Industries Capital Trust I (HEI Trust I), Hawaiian Electric Industries
Capital Trust II and Hawaiian Electric Industries Capital Trust III.
<PAGE>
Page 2 of 15
HECO is the parent company of Hawaii Electric Light Company, Inc.
(HELCO), Maui Electric Company, Limited (MECO), HECO Capital Trust I
and HECO Capital Trust II.
MPC is the parent company of Malama Property Investment Corp.
(MPIC), Malama Waterfront Corp. (MWC), Malama Development Corp. (MDC),
Malama Realty Corp. (MRC), Malama Elua Corp. (MElC), Malama Hoaloha
Corp. (MHC), TMG Service Corp. (TMG) and Malama Mohala Corp. (MMoC).
Baldwin*Malama (B*M) is a limited partnership in which MDC owns 50%
and is the sole general partner. On September 14, 1998, the Board of
Directors of HEI adopted a plan to exit the residential real estate
development business (engaged in by Malama Pacific Corp. and its
subsidiaries) by September 1999. Accordingly, MPC management commenced
a program to sell all of MPC's real estate assets and investments and
HEI reported MPC as a discontinued operation in the Company's
consolidated statements of income in the third quarter of 1998.
HTB is the parent company of Young Brothers, Limited (YB).
HEIDI is the parent company of HEIDI Real Estate Corp. (HEIDIREC)
and American Savings Bank, F.S.B. (ASB), which is the parent company
of American Savings Investment Services Corp. (ASISC),
AdCommunications, Inc., American Savings Mortgage Co., Inc., ASB
Service Corporation and ASB Realty Corporation.
HEIPC is the parent company of HEI Power Corp. Guam (a foreign
utility company, see items 4a and 4b), HEI Power Corp. Saipan and HEI
Power Corp. International, which is the parent company of HEIPC
Philippine Development, LLC, HEIPC Philippine Ventures, HEIPC Lake
Mainit Power, LLC, HEIPC Cambodia Ventures, HEIPC Phnom Penh Power
(General), LLC, HEIPC Phnom Penh Power (Limited), LLC, HEIPC Bulacan
I, LLC, HEIPC Bulacan II, LLC, HEI Power Corp. China (parent of Dafeng
Sanlian Cogeneration Co., Ltd.), HEI Power Corp. China II [80% owner
of United Power Pacific Company Limited (UPP), which is the 75% owner
of Baotou Tianjiao Power Co., Ltd. (a foreign utility company, see
items 4a and 4b)], HEI Power Corp. China III and HEI Power Corp. China
IV.
HECO was incorporated under the laws of the Kingdom of Hawaii on
October 13, 1891, under the name of The Hawaiian Electric Company,
Limited. Its name was changed to Hawaiian Electric Company, Inc., on
March 16, 1964. Its principal executive office is located at 900
Richards Street, Honolulu, Hawaii 96813. It is a regulated operating
electric public utility engaged in the production, purchase,
transmission, distribution and sale of electricity on the island of
Oahu,
<PAGE>
Page 3 of 15
State of Hawaii. HELCO was incorporated under the laws of the
Republic of Hawaii on December 5, 1894. Its principal executive office
is located at 1200 Kilauea Avenue, Hilo, Hawaii 96720. It is a
regulated operating electric public utility engaged in the production,
purchase, transmission, distribution and sale of electricity on the
island of Hawaii, State of Hawaii. MECO was incorporated under the
laws of the Territory of Hawaii on April 28, 1921, and purchased the
franchise and certain assets of Island Electric Company, Limited,
which had been organized in 1911. Its principal executive office is
located at 210 Kamehameha Avenue, Kahului, Maui, Hawaii 96732. It is
a regulated operating electric public utility engaged in the
production, purchase, transmission, distribution and sale of
electricity on the islands of Maui, Lanai and Molokai, all located in
the State of Hawaii. HECO Capital Trust I was formed under the laws of
the State of Delaware on December 31, 1996. The Bank of New York is
the corporate trustee and its principal administrative offices are
located at 101 Barclay Street 21st floor, New York, New York 10286.
HECO Capital Trust I is a statutory business trust formed for the
exclusive purposes of (i) issuing and selling its common securities to
HECO and its 8.05% Cumulative Quarterly Income Preferred Securities,
Series 1997 (QUIPS) to the public in an underwritten public offering
in March 1997, (ii) using the proceeds from the sale of QUIPS and the
common securities to acquire 8.05% Junior Subordinated Deferrable
Interest Debentures, Series 1997 issued by HECO and its subsidiaries,
MECO and HELCO, (iii) maintaining the status of HECO Capital Trust I
as a grantor trust for United States federal income tax purposes and
(iv) engaging in only those other activities necessary, convenient or
incidental thereto. HECO Capital Trust II was formed under the laws of
the State of Delaware on October 15, 1998. The Bank of New York is the
corporate trustee and its principal administrative offices are located
at 101 Barclay Street 21st floor, New York, New York 10286. HECO
Capital Trust II is a statutory business trust formed for the
exclusive purposes of (i) issuing and selling its common securities to
HECO and its 7.30% Cumulative Quarterly Income Preferred Securities,
Series 1998 (QUIPS) to the public in an underwritten public offering
in December 1998, (ii) using the proceeds from the sale of QUIPS and
the common securities to acquire 7.30% Junior Subordinated Deferrable
Interest Debentures, Series 1998 issued by HECO and its subsidiaries,
MECO and HELCO, (iii) maintaining the status of HECO Capital Trust II
as a grantor trust for United States federal income tax purposes and
(iv) engaging in only those other activities necessary, convenient or
incidental thereto.
<PAGE>
Page 4 of 15
HEIIC was incorporated under the laws of the State of Hawaii on
May 25, 1984. Its principal executive office is located at 900
Richards Street, Honolulu, Hawaii 96813. It is a nonutility company
organized primarily to invest in corporate securities and other long-
term investments. HEIIC holds investments primarily in leveraged
leases.
On December 30, 1985, HEIIC acquired, as part of its investment
portfolio,a 15.1899% undivided interest in Plant Robert W. Scherer
Unit No. 2, an 818-megawatt (MW) coal-fired generating unit located
in Monroe County, Georgia in a sale and leaseback transaction (the
Transaction) with Oglethorpe Power Corporation (An Electric Membership
Generation and Transmission Corporation). The Transaction is described
in the Form U-7D filed by the Wilmington Trust Company and William J.
Wade, owner trustees on behalf of HEIIC on December 30, 1985. The
Transaction is also the subject of letters (dated December 16 and 24,
1985), from Mudge Rose Guthrie Alexander and Ferdon to the Commission,
to which a reply was sent by Mr. Lewis B. Reich, Special Counsel
(Reference No. 85-1216E-OPUR). Two amendments to the Form U-7D were
filed on October 20, 1986 and on January 16, 1998 for the refinancings
of the nonrecourse debt secured by this lease interest. These
refinancings had no impact on HEIIC's investment return because, under
the lease agreement, the lessee is entitled to the benefit of any
refinancing. The undersigned takes the position that the passive
nature of the ownership by HEIIC which results from its participation
in the Transaction is exactly comparable to the form of ownership
which would qualify under Rule 7(d)(1) under PUHCA. Accordingly,
although the information contained in the aforesaid Amendment No. 1
was submitted, the undersigned and HEIIC reserve all rights to claim
(and do hereby claim) that by virtue of HEIIC's participation in the
Transaction, HEIIC has not acquired "ownership" of facilities used for
the generation, transmission or distribution of electric energy for
sale so as to result in HEIIC's becoming an "electric utility company"
as defined in Section 2(a)(3) of the Act.
MPC was incorporated on December 5, 1985; MPIC and MWC were
incorporated on December 30, 1988; MDC was incorporated on December
15, 1989; and MRC, MElC, MHC, TMG and MMoC were incorporated on August
21, 1990, all under the laws of the State of Hawaii, with principal
executive offices located at 915 Fort Street Mall, Honolulu, Hawaii
96813. MDC acquired a 50% general partnership interest in B*M in 1990
and, in 1993, B*M was reorganized as a limited partnership in which
MDC was the sole general partner. B*M is a Hawaii partnership with
principal executive offices located at
<PAGE>
Page 5 of 15
915 Fort Street Mall, Honolulu, Hawaii 96813. MPC and its subsidiaries
are nonutility companies which were organized to invest in, develop
and sell real estate. Effective September 14, 1998, MPC and its
subsidiaries are being accounted for as discontinued operations in
HEI's consolidated financial statements.
Dillingham Tug & Barge Corporation was incorporated under the
laws of the State of Hawaii on March 16, 1972, and its name was
changed to Hawaiian Tug & Barge Corp. on October 1, 1986 when HTB was
acquired by HEI from Dillingham Corporation. Its principal executive
office is located at 1331 N. Nimitz Highway, Honolulu, Hawaii 96817.
It is a nonutility company organized to provide charter towing and
harbor-assist services primarily within the State of Hawaii. YB, also
acquired on October 1, 1986, was incorporated under the laws of the
State of Hawaii on January 7, 1960. Its principal executive office is
located at 1331 N. Nimitz Highway, Honolulu, Hawaii 96817. It is a
regulated company organized to transport cargo within the State of
Hawaii and operates as the major authorized common carrier under the
Hawaii Water Carrier Act.
HEIDI was incorporated under the laws of the State of Hawaii on
January 6, 1988. Its principal executive office is located at 900
Richards Street, Honolulu, Hawaii 96813. It is a nonutility holding
company which currently conducts no business and owns no material
assets other than the common stock of ASB and HEIDIREC. ASB was
chartered by the Federal Home Loan Bank as a federal savings bank on
January 23, 1987, and is qualified to do business in the State of
Hawaii. Its wholly owned subsidiaries were incorporated under the laws
of the State of Hawaii. The principal executive offices of ASB and its
subsidiaries are located at 915 Fort Street Mall, Honolulu, Hawaii
96813. ASB and its subsidiaries are nonutility companies providing
financial and related services. ASB was acquired by HEI on May 26,
1988. ASB's business consists primarily of attracting deposits from
the general public and using such deposits, together with borrowings
and other funds, to (1) make residential and other real estate-related
loans which enable borrowers to purchase, refinance, construct or
improve real estate, (2) invest in loans secured by real estate and in
mortgage-backed and other securities, and (3) make various types of
commercial and consumer loans. ASB Service Corporation, which holds
real estate for use by ASB employees was incorporated on October 23,
1990; American Savings Mortgage Co., Inc. is a mortgage brokerage
company which was incorporated on October 23, 1990; AdCommunications,
Inc. is an advertising agency which was incorporated on October 23,
1990; ASISC which was incorporated on October 11, 1990, markets
<PAGE>
Page 6 of 15
insurance products and ASB Realty Corporation which was incorporated
on March 27, 1998, owns and manages real estate assets. HEIDIREC was
incorporated under the laws of the State of Hawaii on February 9,
1998. Its principal executive office is located at 900 Richards
Street, Honolulu, Hawaii 96813. HEIDIREC was formed as a nonutility
company to own and manage real estate assets, but has at all times
been inactive.
PECS was incorporated under the laws of the State of Hawaii on
August 12, 1994. Its principal executive office is located at 900
Richards Street, Honolulu, Hawaii 96813. PECS was formed as a
nonutility service company to promote energy conservation in Hawaii
and the Pacific Basin, but had no operations until December 1996. PECS
currently is primarily a contract services company providing limited
services to an affiliate.
HEIPC was incorporated under the laws of the State of Hawaii on
March 24, 1995. Its principal executive office is located at 220 South
King Street, Honolulu, Hawaii 96813. It is a nonutility company
formed to pursue independent power and integrated energy services
projects in Asia and the Pacific. Those direct and indirect
subsidiaries of HEIPC which are not foreign utility companies have
been formed generally for the purposes of directly or indirectly
acquiring and maintaining an interest in one or more foreign utility
companies or developing or operating utility facilities in foreign
countries. The following are active, direct and indirect subsidiaries
which have their principal executive offices at Ugland House, P.O. Box
309, George Town, Grand Cayman, Cayman Islands, British West Indies
(Cayman Location) and were incorporated under the laws of the Cayman
Islands (incorporation date are noted in parentheses): HEI Power
Corp. International (International) (April 10, 1996); HEIPC Philippine
Development, LLC (Philippine Develop) (September 9, 1996); HEIPC Lake
Mainit Power, LLC (May 21, 1996). The following are inactive
subsidiaries at the Cayman Location which were incorporated under the
laws of the Cayman Islands: HEIPC Philippine Ventures (April 23,
1996); HEIPC Cambodia Ventures (April 23, 1996); HEIPC Phnom Penh
Power (General), LLC (April 24, 1996); HEIPC Phnom Penh Power
(Limited), LLC (April 24, 1996); HEIPC Bulacan I, LLC (May 29, 1997);
and HEIPC Bulacan II, LLC (May 29, 1997). The following are active,
indirect subsidiaries which have their principal executive offices at
Les Jamalacs Building, Vieux Conseil St., Port-Louis, Mauritius
(Mauritius Location) and were incorporated under the laws of Mauritius
(incorporation date and effective percentage of ownership, if other
than 100%, are noted in parentheses): HEI Power Corp. China (December
10, 1997); HEI Power Corp. China II
<PAGE>
Page 7 of 15
(China II) (June 10, 1998); and UPP (June 29, 1998) (80% owned by
China II). The following are inactive, indirect subsidiaries at the
Mauritius Location which were incorporated under the laws of
Mauritius: HEI Power Corp. China III (June 24, 1998) and HEI Power
Corp. China IV (June 24, 1998). HEI Power Corp. Saipan (April 1, 1998)
is an inactive, direct subsidiary incorporated under the laws of the
Commonwealth of the Northern Mariana Islands and having its principal
executive offices at P.O. Box 410, Saipan, MP 96950. Dafeng Sanlian
Cogeneration Co., Ltd. (August 19, 1998; 76.4%) is an active, indirect
subsidiary registered under the laws of the People's Republic of China
(China) and having its principal executive offices at Dafeng Economic
Development Zone, Dafeng City, Jiangsu Province, China; however, it
does not own or operate any facilities that are used for the
generation, transmission, or distribution of electric energy or the
distribution of natural or manufactured gas and does not have any
interest in any foreign utility company. Other direct or indirect
subsidiaries or investments of HEIPC are listed under item 4a.
HEIDC was incorporated under the laws of the State of Hawaii on
August 17, 1998. Its principal executive office is located at 900
Richards Street, Honolulu, Hawaii 96813. HEIDC was formed to develop,
build, own, operate and/or maintain, either directly or indirectly,
central chilled water, cooling system facilities, and other energy
related products and services for commercial and residential
buildings.
ProVision Technologies, Inc. was incorporated under the laws of
the State of Hawaii on October 13, 1998. Its principal executive
office is located at 900 Richards Street, Honolulu, Hawaii 96813.
ProVision Technologies, Inc. was formed to sell, install, operate and
maintain on-site power generation equipment and auxiliary appliances
in Hawaii and the Pacific Rim.
Hycap was incorporated under the laws of the State of Delaware on
January 22, 1997. Its registered agent's office is located at PL&F
Service, One Rodney Square, 10th Floor, Tenth and King Streets,
Wilmington, Delaware 19801. Hycap is a nonutility company formed in
connection with a trust preferred securities offering to be the sole
general partner of HEI Preferred Funding, LP (the Partnership). The
Partnership is a limited partnership formed under the Delaware Revised
Uniform Limited Partnership Act, as amended, pursuant to an agreement
of limited partnership and the filing of a certificate of limited
partnership with the Secretary of State on December 23, 1996, which
was subsequently amended by an amended and restated agreement of
limited partnership dated as of February 1, 1997. Its principal
executive office is located
<PAGE>
Page 8 of 15
at 300 Delaware Avenue, Suite 1704, Wilmington, Delaware 19801. The
Partnership is managed by the general partner and exists for the
exclusive purposes of (a) purchasing certain eligible debt instruments
of HEI and the wholly owned subsidiaries of HEI (collectively, the
Affiliate Investment Instruments) and certain U.S. government
obligations and commercial paper of unaffiliated entities (Eligible
Debt Securities) with the proceeds from (i) the sale of its
Partnership Preferred Securities, representing limited partner
interests in the Partnership, to HEI Trust I and (ii) a capital
contribution by HEI in exchange for the general partner interest in
the Partnership, (b) receiving interest and other payments on the
Affiliate Investment Instruments and the Eligible Debt Securities held
by the Partnership from time to time, (c) making distributions on the
Partnership Preferred Securities and distributions on the general
partner interest in the Partnership if, as and when declared by the
general partner in its sole discretion, (d) subject to the
restrictions and conditions contained in the Agreement of Limited
Partnership, making additional investments in Affiliate Investment
Instruments and Eligible Debt Securities and disposing of any such
investments and (e) except as otherwise limited in the Agreement of
Limited Partnership, entering into, making and performing all
contracts and other undertakings, and engaging in those activities and
transactions as the general partner deems necessary or advisable for
carrying out the purposes of the Partnership.
HEI Trust I, Hawaiian Electric Industries Capital Trust II and
Hawaiian Electric Industries Capital Trust III were formed under the
laws of the State of Delaware on December 19, 1996. The Bank of New
York is the corporate trustee of each of the three trusts and its
principal administrative office is located at 101 Barclay Street, 21st
Floor, New York, NY 10286. HEI Trust I is a statutory business trust
formed for the exclusive purposes of (i) issuing in February of 1997
its 8.36% Trust Originated Preferred Securities and its 8.36% Common
Securities, (ii) purchasing the 8.36% Partnership Preferred
Securities, representing the limited partner interests in HEI
Preferred Funding, LP, with the proceeds from the sale of Trust
Originated Preferred Securities and Common Securities, and (iii)
engaging in only those other activities necessary or incidental
thereto. Hawaiian Electric Industries Capital Trust II and Hawaiian
Electric Industries Capital Trust III have at all times been inactive.
2. A brief description of the properties of claimant and each of its
subsidiary public utility companies used for the generation,
transmission and distribution of electric energy for sale, or for
the production, transmission and distribution of natural or
manufactured
<PAGE>
Page 9 of 15
gas, indicating the location of principal generating plants,
transmission lines, producing fields, gas manufacturing plants and
electric and gas distribution facilities, including all such
properties which are outside the State in which claimant and its
subsidiaries are organized and all transmission or pipelines which
deliver or receive electric energy or gas at the borders of such
State.
HEI is a nonutility holding company which currently conducts no
business and owns no material operating assets other than as listed
under item 1. Currently, the consolidated revenues of HEI are derived
primarily from electric service, savings bank operations, maritime
freight transportation operations, energy conversion fees and
investments.
HECO owns and operates three electric generating plants located
on the island of Oahu, with an aggregate generating capability of
1,263 megawatts as of December 31, 1998. HECO's power purchase
agreements with Kalaeloa Partners, L.P., AES Barbers Point, Inc. and
Honolulu Resource Recovery Venture each provide for an additional 180
MW, 180 MW and 46 MW, respectively, of firm generating capability as
of December 31, 1998.
HELCO owns and operates electric generating equipment with an
aggregate generating capability of approximately 161 megawatts as of
December 31, 1998. Its five power plants are located on the island of
Hawaii. As of December 31, 1998, HELCO had power purchase agreements
with Puna Geothermal Ventures and Hilo Coast Processing Company
providing for an additional 30 MW and 22 MW, respectively, of firm
generating capability. HELCO currently owns and operates a windfarm at
Waikoloa which consists of 71 operating wind machines with a total
operating capacity of 1.4 MW as of December 31, 1998.
MECO owns and operates electric generating equipment located on
the islands of Maui, Lanai and Molokai, with an aggregate generating
capability of approximately 240 megawatts as of December 31, 1998. A
power purchase agreement between MECO and a sugar company provided for
an additional 16 MW of firm generating capability as of December 31,
1998.
HECO, HELCO and MECO own land, buildings, overhead transmission
lines, overhead distribution lines, underground cables, fully owned or
jointly owned poles, steel or aluminum high voltage transmission
towers, transmission and distribution substations, fuel oil storage
facilities and other property and equipment used in the business of
generating, purchasing, transmitting, distributing and selling
electric energy.
<PAGE>
Page 10 of 15
3. The following information for the last calendar year with respect
to claimant and each of its subsidiary public utility companies:
(a) Number of kwh. of electric energy sold (at retail or wholesale),
and Mcf. of natural or manufactured gas distributed at retail.
In 1998, HEI sold no kilowatthours of electric energy, HECO sold
at retail 6,938,325,636 kwh. of electric energy, HELCO sold at retail
903,159,724 kwh. of electric energy, and MECO sold at retail
1,028,555,750 kwh. of electric energy.
(b) Number of kwh. of electric energy and Mcf. of natural or
manufactured gas distributed at retail outside the State in which
each such company is organized.
None.
(c) Number of kwh. of electric energy and Mcf. of natural or
manufactured gas sold at wholesale outside the State in which each
such company is organized, or at the State line.
None.
(d) Number of kwh. of electric energy and Mcf. of natural or
manufactured gas purchased outside the State in which each such
company is organized or at the State line.
None.
4. The following information for the reporting period with respect to
claimant and each interest it holds directly or indirectly in an
EWG or a foreign utility company, stating monetary amounts in
United States dollars:
(a) Name, location, business address and description of the facilities
used by the EWG or foreign utility company for the generation,
transmission and distribution of electric energy for sale or for
the distribution at retail of natural or manufactured gas.
HEI Power Corp. Guam (HPG), a subsidiary of HEIPC, has principal
executive offices at Tanguisson power plant, NCS Dededo, Guam 96921
and 220 South King Street, Honolulu, Hawaii 96813. In September 1996,
HPG entered into an energy conversion agreement with Guam Power
Authority (GPA), pursuant to which HPG rehabilitated, and for a period
of approximately 20 years will be operating and maintaining, two oil-
fired 25-MW (net) steam turbine generators at Tanguisson, Guam.
<PAGE>
Page 11 of 15
On or about September 3, 1998, HEI acquired an indirect interest
in Baotou Tianjiao Power Co., Ltd. (Tianjiao) which has its principal
executive offices at Suite 906, Baotou Youdian Building, Kun District,
Baotou 014010, Inner Mongolia, China and is a Sino-foreign
coorperative joint venture established under the laws of the People's
Republic of China. Tianjiao will construct, operate, and maintain a
206-megawatt (net) coal-fired power plant in Baotou, Inner Mongolia,
China, over a 22 year period, which includes construction, beginning
September 18, 1996. The power plant is being built "inside the fence"
for Baotou Iron & Steel (Group) Co., Ltd. (BaoSteel), which will be
the sole purchaser of the power. At the end of the term, the plant
will be transferred by Tianjiao to BaoSteel (which owns a 25% interest
in Tianjiao).
On December 4, 1998, HEI acquired an indirect interest in Cagayan
Electric Power and Light Company, Inc. (CEPALCO) which has its
principal executive offices at 8/F Strata 100 Building, Emerald
Avenue, Ortigas Complex, Pasig City, Metro Manila 1600, Philippines
and is incorporated under the laws of the Philippines. CEPALCO is a
privately owned regulated local distribution company on the island of
Mindanao. It operates and maintains three substations, with a total
capacity of 75 MVA, and 47 kilometers of transmission lines (rates at
69 KV and 138 KV) and 1,000 kilometers of distribution lines. It also
has an interest in Mindanao Energy Systems, Inc., a Philippine power
generation company that owns and operates an 18.9 MW Bunker-C fed
diesel power generating facility.
(b) Name of each system company that holds an interest in such EWG or
foreign utility company and description of the interest held.
HEI owns all of the issued and outstanding shares of common stock
of HEIPC. HEIPC owns all of the issued and outstanding shares of
common stock of HPG and International.
International owns all of the issued and outstanding shares of
common stock of China II. China II owns 80% of the issued and
outstanding shares of UPP. UPP owns 75% of Tianjiao.
International owns all of the issued and outstanding shares of
common stock of Philippine Develop. Philippine Develop owns
convertible cumulative nonparticipating preferred shares of CEPALCO,
which are convertible within the period generally from two to four
years after the acquisition and, when fully converted, are intended to
constitute 15% of the issued and outstanding capital stock of CEPALCO.
<PAGE>
Page 12 of 15
(c) Type and amount of capital invested, directly or indirectly, by
the holding company claiming exemption; any direct or indirect
guarantee of the security of the EWG or foreign utility company by
the holding company claiming exemption; and any debt or other
financial obligation for which there is recourse, directly or
indirectly, to the holding company claiming exemption or another
system company, other than the EWG or foreign utility company.
As of December 31, 1998, HEI had invested, through HEIPC (in
addition to retained earnings), $2,250,000 in HPG. Also as of December
31, 1998, there were short-term intercompany borrowings by HPG from
HEIPC of $10,705,000 and no other borrowings. HEIPC's intercompany
loans to HPG were funded by investments in and loans to HEIPC by HEI.
As of December 31, 1998, HEI has not directly or indirectly guaranteed
the securities of HPG and there was no debt or other financial
obligation relating to HPG for which there was recourse against HEI or
any other system company (other than HPG).
As of December 31, 1998, HEI had invested, through HEIPC and its
subsidiaries, $16 million in the project in China, of which $6.9
million is reflected in equity in Tianjiao. As of December 31, 1998,
there were no short-term intercompany borrowings by Tianjiao from HEI,
HEIPC or any HEIPC subsidiary. As of December 31, 1998, HEI has not
directly or indirectly guaranteed the securities of Tianjiao and there
was no debt or other financial obligation relating to Tianjiao for
which there was recourse against HEI or any other system company
(other than Tianjiao).
As of December 31, 1998, HEI had invested, through HEIPC and its
subsidiaries, $7.6 million in CEPALCO. As of December 31, 1998, there
were no short-term intercompany borrowings by CEPALCO from HEI, HEIPC
or any HEIPC subsidiary. As of December 31, 1998, HEI has not directly
or indirectly guaranteed the securities CEPALCO and there was no debt
or other financial obligation relating to CEPALCO for which there was
recourse against HEI or any other system company (other than CEPALCO).
(d) Capitalization and earnings of the EWG or foreign utility company
during the reporting period.
As of December 31, 1998, HPG's capitalization (i.e., common stock
equity) was $3,335,000. For the year ended December 31, 1998, HPG's
net income was $643,000.
<PAGE>
Page 13 of 15
As of December 31, 1998, Tianjiao's capitalization (i.e., common
stock equity) was $9,717,000. For the year ended December 31, 1998
Tianjiao's net loss was $150,000.
As of December 31, 1998, the investment in CEPALCO preferred
stock was carried at $7.6 million, which was its estimated fair value
on that date in accordance with Statement of Financial Accounting
Standard No. 115, "Accounting for Certain Investments in Debt and
Equity Securities."
(e) Identify any service, sales or construction contract(s) between
the EWG or foreign utility company and a system company, and
describe the services to be rendered or goods sold and fees or
revenues under such agreement(s).
HPG maintains agreements with certain HEI affiliates for
operation, maintenance and administrative and general services of the
power plants and electrical systems. For the year ended December 31,
1998, HPG payments for services from HEI, HECO and HEIPC totaled
$163,000.
Tianjiao and CEPALCO have no service, sales or construction
contracts with any HEI affiliate. However, certain HEI affiliates
provide general management and other services to Tianjiao in
connection with UPP's obligations under the cooperative joint venture
agreement. The HEI affiliates receive no compensation directly from
Tianjiao.
<PAGE>
Page 14 of 15
EXHIBIT A
Unaudited consolidating statements of income and retained
earnings of Hawaiian Electric Industries, Inc. and its subsidiary
companies for the calendar year 1998, together with an unaudited
consolidating balance sheet of Hawaiian Electric Industries, Inc. and
its subsidiary companies as of December 31, 1998, are attached hereto
as Exhibit A.
Unaudited consolidating income and retained earnings information
for the calendar year 1998 for Hawaiian Electric Company, Inc. and its
subsidiary companies, for HEI Diversified, Inc. and its subsidiary
companies, for American Savings Bank, F.S.B. and its subsidiary
companies, for Hawaiian Tug & Barge Corp. and its subsidiary company,
for HEI Power Corp. and its subsidiary companies, for HEI Power Corp.
International and its subsidiary companies and for HEI Power Corp.
China II and its subsidiary companies, together with unaudited
consolidating balance sheet information for said companies and their
respective subsidiaries as of December 31, 1998, are attached hereto
as Exhibits A-1 through A-7. Unaudited consolidating income, retained
earnings and balance sheet information for MPC and its subsidiaries
are not provided as MPC and its subsidiaries are being accounted for
as discontinued operations in HEI's consolidated financial statements
effective September 14, 1998.
EXHIBIT B
The unaudited financial data schedules for HEI and its
subsidiaries and for HECO and its subsidiaries are attached hereto as
Exhibit B.
EXHIBIT C
HEI - HEIPC - HPG
HEI - HEIPC - International - China II - UPP (China II owns 80%)
- Tianjiao (UPP owns 75%)
HEI - HEIPC - International - Philippine Develop - CEPALCO
<PAGE>
Page 15 of 15
Each of the above-named claimants has caused this statement to be duly
executed on its behalf by its duly authorized officers on this 25th day of
February 1999.
HAWAIIAN ELECTRIC INDUSTRIES, INC.
Claimant
By /s/ Robert F. Clarke
----------------------------------------
Robert F. Clarke
Chairman, President and
ATTEST: Chief Executive Officer
/s/ Peter C. Lewis By /s/ Robert F. Mougeot
------------------------ ---------------------------------------
Peter C. Lewis Robert F. Mougeot
Vice President- Financial Vice President and
Administration Chief Financial Officer
& Corporate Secretary
HAWAIIAN ELECTRIC COMPANY, INC.
Claimant
By /s/ T. Michael May
---------------------------------------
T. Michael May
ATTEST: President and
Chief Executive Officer
/s/ Molly M. Egged By /s/ Jackie M. Erickson
------------------------ --------------------------------------
Molly M. Egged Jackie M. Erickson
Secretary Vice President - Customer Relations
& General Counsel
Name, title, and address of officer to whom notices and correspondence
concerning this statement should be addressed:
Peter C. Lewis
Vice President-Administration & Corporate Secretary
Hawaiian Electric Industries, Inc.
P. O. Box 730
Honolulu, Hawaii 96808-0730
<PAGE>
<TABLE>
<S> <C>
HAWAIIAN ELECTRIC INDUSTRIES, INC. AND SUBSIDIARIES Exhibit A
Consolidating Balance Sheet (Page 1 of 3) Page 1 of 8
December 31, 1998
(Unaudited)
(in thousands)
</TABLE>
<TABLE>
<CAPTION>
Hawaiian
Hawaiian Hawaiian Electric HEI
Electric Tug & Barge HEI Company, Diversified,
Industries, Corp. and Investment Inc. and Inc. and
ASSETS Inc. subsidiary Corp. subsidiaries subsidiaries
- --------------------------------------------- ------------- ------------ ------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Cash and equivalents $ 636 18 299 54,783 $ 352,637
Notes receivable from affiliated companies 13,823 - 10,682 - 17,330
Accounts receivable and
unbilled revenues, net 1,370 5,683 43 116,697 30,913
Investment and mortgage-backed securities - - - - 1,902,927
Loans receivable, net - - - - 3,143,197
Property, plant and equipment, net 4,464 46,446 - 1,943,172 68,028
Regulatory assets - 2,115 - 108,344 -
Other 35,946 5,152 57,114 88,257 79,140
Goodwill and other intangibles - - - - 115,006
Investments in wholly owned
subsidiaries, at equity 1,280,903 - - - -
---------- ------ ------ --------- ----------
$1,337,142 59,414 68,138 2,311,253 $5,709,178
========== ====== ====== ========= ==========
LIABILITIES AND
STOCKHOLDERS' EQUITY
- ---------------------------------------------
Liabilities
Accounts payable $ 5,995 1,608 12 51,927 $ 49,481
Deposit liabilities - - - - 3,865,736
Short-term borrowings 100,245 1,450 - 139,413 -
Securities sold under agreements
to repurchase - - - - 515,330
Advances from Federal Home Loan Bank - - - - 805,581
Long-term debt 375,000 16,250 - 621,998 17,073
Deferred income taxes (20) 8,308 45,134 128,327 4,637
Contributions in aid of construction - - - 198,904 -
Other 28,950 9,977 2,873 202,744 38,882
---------- ------ ------ --------- ----------
510,170 37,593 48,019 1,343,313 5,296,720
---------- ------ ------ --------- ----------
HEI- and HECO-obligated preferred
securities of trust subsidiaries
directly or indirectly holding
solely HEI and HEI-guaranteed and
HECO and HECO-guaranteed subordinated
debentures - - - 100,000 -
Preferred stock of electric utility
subsidiaries
Subject to mandatory redemption - - - 33,080 -
Not subject to mandatory redemption - - - 48,293 -
Minority interests - - - - 113
---------- ------ ------ --------- ----------
- - - 181,373 113
---------- ------ ------ --------- ----------
Stockholders' equity
Preferred stock - - - - -
Common stock 661,720 13,229 22,166 380,731 326,168
Retained earnings (deficit) 165,252 8,592 (2,047) 405,836 86,177
---------- ------ ------ --------- ----------
826,972 21,821 20,119 786,567 412,345
---------- ------ ------ --------- ----------
$1,337,142 59,414 68,138 2,311,253 $5,709,178
========== ====== ====== ========= ==========
</TABLE>
Continued on next page.
<PAGE>
<TABLE>
<S> <C>
HAWAIIAN ELECTRIC INDUSTRIES, INC. AND SUBSIDIARIES Exhibit A
Consolidating Balance Sheet (Page 2 of 3) Page 2 of 8
December 31, 1998
(Unaudited)
(in thousands)
</TABLE>
(Continued)
<TABLE>
<CAPTION>
Malama
Pacific Pacific
Energy HEI Corp. and
Conservation HEI Power District ProVision subsidiaries
Services, Corp. and Cooling, Technologies, (Discontinued
ASSETS Inc. subsidiaries Inc Inc. operations)
- ------------------------------------------- ------------ -------------- ----------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
Cash and equivalents $ 16 1,803 32 10 $ -
Notes receivable from affiliated companies 17 - 305 - -
Accounts receivable and
unbilled revenues, net 15 3,126 1 - -
Investment and mortgage-backed securities - - - - -
Loans receivable, net - - - - -
Property, plant and equipment, net - 31,283 5 - -
Regulatory assets - - - - -
Other 6 7,711 2 - (7,529)
Goodwill and other intangibles - - - - -
Investments in wholly owned
subsidiaries, at equity - - - - -
-------- ------- ----- ---- ---------
$ 54 43,923 345 10 $ (7,529)
======== ======= ===== ==== =========
LIABILITIES AND
STOCKHOLDERS' EQUITY
- -------------------------------------------
Liabilities
Accounts payable $ 4 433 31 - $ -
Deposit liabilities - - - - -
Short-term borrowings - 6,823 - - -
Securities sold under agreements
to repurchase - - -
Advances from Federal Home Loan Bank - - - - -
Long-term debt - 6,423 - - -
Deferred income taxes - (248) - - -
Contributions in aid of construction - - - - -
Other 31 1,750 - 33 -
-------- ------- ----- ---- --------
35 15,181 31 33 -
-------- ------- ----- ---- --------
HEI- and HECO-obligated preferred
securities of trust subsidiaries
directly or indirectly holding
solely HEI and HEI-guaranteed and
HECO and HECO-guaranteed subordinated
debentures - - - - -
Preferred stock of electric utility
subsidiaries
Subject to mandatory redemption - - - - -
Not subject to mandatory redemption - - - - -
Minority interests - 3,562 - - -
-------- ------- ----- ---- --------
- 3,562 - - -
-------- ------- ----- ---- --------
Stockholders' equity
Preferred stock - - - - -
Common stock 320 36,231 850 10 39,475
Retained earnings (deficit) (301) (11,051) (536) (33) (47,004)
-------- ------- ----- ---- --------
19 25,180 314 (23) (7,529)
-------- ------- ----- ---- --------
$ 54 43,923 345 10 $ (7,529)
======== ======= ===== ==== ========
</TABLE>
Continued on next page.
<PAGE>
HAWAIIAN ELECTRIC INDUSTRIES, INC. AND SUBSIDIARIES Exhibit A
Consolidating Balance Sheet (Page 3 of 3) Page 3 of 8
December 31, 1998
(Unaudited)
(in thousands)
(Continued)
<TABLE>
<CAPTION>
Hawaiian
HEI Electric Reclassifications
Hycap Preferred Industries and
Management, Funding, Capital Eliminations
ASSETS Inc. LP Trust I Dr. (Cr.) Consolidated
- -------------------------------------------- ------------- ----------- ------------ ----------------- ------------
<S> <C> <C> <C> <C> <C>
Cash and equivalents $ 750 1,270 - - $ 412,254
Notes receivable from affiliated companies - 120,073 - (162,230) -
Accounts receivable and unbilled revenues, net 57 - - (1,685) 156,220
Investment and mortgage-backed securities - - - - 1,902,927
Loans receivable, net - - - - 3,143,197
Property, plant and equipment, net - - - - 2,093,398
Regulatory assets - - - - 110,459
Other - - - - 265,799
Goodwill and other intangibles - - - - 115,006
Investments in wholly owned subsidiaries, at equity 18,193 - 103,093 (1,402,189) -
------- ------- ------- ---------- ----------
$19,000 121,343 103,093 (1,566,104) $8,199,260
======= ======= ======= ========== ==========
LIABILITIES AND
STOCKHOLDERS' EQUITY
- --------------------------------------------
Liabilities
Accounts payable $ - 57 - 1,685 $ 107,863
Deposit liabilities - - - - 3,865,736
Short-term borrowings - - - 25,084 222,847
Securities sold under agreements
to repurchase - - - - 515,330
Advances from Federal Home Loan Bank - - - - 805,581
Long-term debt - - - 137,146 899,598
Deferred income taxes - - - - 186,138
Contributions in aid of construction - - - - 198,904
Other 3 - - - 285,243
------- ------- ------- ---------- ----------
3 57 - 163,915 7,087,240
------- ------- ------- ---------- ----------
HEI-and HECO-obligated preferred
securities of trust subsidiaries
directly or indirectly holding solely
HEI and HEI-guaranteed and HECO and
HECO-guaranteed subordinated debentures - - 100,000 - 200,000
Preferred stock of electric utility subsidiaries
Subject to mandatory redemption - - - - 33,080
Not subject to mandatory redemption - - - - 48,293
Minority interests - - - - 3,675
------- ------- ------- ---------- ----------
- - 100,000 - 285,048
------- ------- ------- ---------- ----------
Stockholders' equity
Preferred stock - - - - -
Common stock 18,364 121,286 3,093 961,923 661,720
Retained earnings (deficit) 633 - - 440,266 165,252
------- ------- ------- ---------- ----------
18,997 121,286 3,093 1,402,189 826,972
------- ------- ------- ---------- ----------
$19,000 121,343 103,093 1,566,104 $8,199,260
======= ======= ======= ========== ==========
</TABLE>
<PAGE>
HAWAIIAN ELECTRIC INDUSTRIES, INC. AND SUBSIDIARIES Exhibit A
Consolidating Statement of Income (Page 1 of 3) Page 4 of 8
Year ended December 31, 1998
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Hawaiian
Hawaiian Hawaiian Electric HEI
Electric Tug & Barge HEI Company, Diversified,
Industries, Corp. and Investment Inc. and Inc. and
Inc. subsidiary Corp. subsidiaries subsidiaries
----------- ---------- ---------- ------------- ------------
<S> <C> <C> <C> <C> <C>
Revenues
Electric utility $ - - - 1,016,283 $ -
Savings bank - - - - 409,883
Other 2,067 53,231 1,095 - 1,483
Equity in net income of subsidiaries 115,567 - - - -
-------- ------ ----- --------- --------
117,634 53,231 1,095 1,016,283 411,366
-------- ------ ----- --------- --------
Expenses
Electric utility - - - 838,833 -
Savings bank - - - - 356,233
Other 8,207 48,200 319 - 149
-------- ------ ----- --------- --------
8,207 48,200 319 838,833 356,382
-------- ------ ----- --------- --------
Operating income (loss)
Electric utility - - - 177,450 -
Savings bank - - - - 53,650
Other 109,427 5,031 776 - 1,334
-------- ------ ----- --------- --------
109,427 5,031 776 177,450 54,984
-------- ------ ----- --------- --------
Interest expense-electric utility
and other (32,994) (1,291) - (47,921) (1,477)
Allowance for borrowed funds
used during construction - - - 5,915 -
Preferred stock dividends of
electric utility subsidiaries - - - (2,551) -
Preferred securities distributions of
trust subsidiaries - - - (4,197) -
Allowance for equity funds used
during construction - - - 10,106 -
-------- ------ ----- --------- --------
Income (loss) from continuing
operations before income taxes and
preferred HECO 76,433 3,740 776 138,802 53,507
Income tax expense (benefit) (18,195) 1,711 101 54,572 17,930
-------- ------ ----- --------- --------
Income (loss) from continuing
operations before preferred stock
dividends of HECO 94,628 2,029 675 84,230 35,577
Preferred stock dividends of HECO - - - 3,454 -
-------- ------ ----- --------- --------
Income (loss) from continuing operations 94,628 2,029 675 80,776 35,577
Income (loss) from discontinued operations (9,817) - - - 13,765
-------- ------ ----- --------- --------
Net income (loss) $ 84,811 2,029 675 80,776 $ 49,342
======== ====== ===== ========= ========
</TABLE>
Continued on next page.
<PAGE>
HAWAIIAN ELECTRIC INDUSTRIES, INC. AND SUBSIDIARIES Exhibit A
Consolidating Statement of Income (Page 2 of 3) Page 5 of 8
Year ended December 31, 1998
(Unaudited)
(in thousands)
(Continued)
<TABLE>
<CAPTION>
Malama
Pacific
Pacific Energy HEI Corp. and
Conservation HEI Power District ProVision subsidiaries
Services, Corp. and Cooling, Technologies, (Discontinued
Inc. subsidiaries Inc Inc. operations)
-------------- ------------ --------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Revenues
Electric utility $ -- -- -- -- $ --
Savings bank -- -- -- -- --
Other 182 4,773 7
Equity in net income of subsidiaries -- -- -- -- --
----------- ----------- ----------- ----------- ----------
182 4,773 7 -- --
----------- ----------- ----------- ----------- ----------
Expenses
Electric utility -- -- -- -- --
Savings bank -- -- -- -- --
Other 270 7,937 543 33 --
----------- ----------- ----------- ----------- ----------
270 7,937 543 33 --
----------- ----------- ----------- ----------- ----------
Operating income (loss)
Electric utility -- -- -- -- --
Savings bank -- -- -- -- --
Other (88) (3,164) (536) (33) --
----------- ----------- ----------- ----------- ----------
(88) (3,164) (536) (33) --
----------- ----------- ----------- ----------- ----------
Interest expense-electric utility
and other -- (538) -- -- --
Allowance for borrowed funds
used during construction -- -- -- -- --
Preferred stock dividends of
electric utility subsidiaries -- -- -- -- --
Preferred securities distributions of
trust subsidiaries -- -- -- -- --
Allowance for equity funds used
during construction -- -- -- -- --
----------- ----------- ----------- ----------- ----------
Income (loss) from continuing operations
before income taxes and preferred
stock dividends of HECO (88) (3,702) (536) (33) --
Income tax expense (benefit) -- 329 -- -- --
----------- ----------- ----------- ----------- ----------
Income (loss) from continuing operations
before preferred stock dividends of HECO (88) (4,031) (536) (33) --
Preferred stock dividends of HECO -- -- -- -- --
----------- ----------- ----------- ----------- ----------
Income (loss) from continuing operations
before preferred stock dividends of HECO (88) (4,031) (536) (33) --
Preferred stock dividends of HECO -- -- -- -- --
----------- ----------- ----------- ----------- ----------
Income (loss) from continued operations (88) (4,031) (536) (33) --
Income (loss) from discontinued operations -- -- -- -- (23,557)
----------- ----------- ----------- ----------- ----------
Net income (loss) $ (88) (4,031) (536) (33) $(23,557)
=========== =========== ========== =========== ==========
</TABLE>
Continued on next page.
<PAGE>
HAWAIIAN ELECTRIC INDUSTRIES, INC. AND SUBSIDIARIES Exhibit A
Consolidating Statement of Income (Page 3 of 3) Page 6 of 8
Year ended December 31, 1998
(Unaudited)
(in thousands)
(Continued)
<TABLE>
<CAPTION>
Hawaiian Reclassifi-
HEI Electric cations
Hycap Preferred Industries and
Management, Funding, Capital Eliminations
Inc. LP Trust I Dr. (Cr.) Consolidated
-------------- -------------- -------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Revenues
Electric utility $ - - - - $1,016,283
Savings bank - - - - 409,883
Other 56 10,096 - 13,991 58,999
Equity in net income of subsidiaries 1,477 - 8,619 125,663 -
-------------- -------------- -------------- --------------- ---------------
1,533 10,096 8,619 139,654 1,485,165
-------------- -------------- -------------- --------------- ---------------
Expenses
Electric utility - - - - 838,833
Savings bank - - - - 356,233
Other 89 - - (294) 65,453
-------------- ------------- -------------- --------------- ---------------
89 - - (294) 1,260,519
-------------- -------------- -------------- --------------- ---------------
Operating income (loss)
Electric utility - - - - 177,450
Savings bank - - - - 53,650
Other 1,444 10,096 8,619 139,360 (6,454)
-------------- -------------- -------------- --------------- ---------------
1,444 10,096 8,619 139,360 224,646
-------------- -------------- -------------- --------------- ---------------
Interest expense-electric utility - - - (13,697) (70,524)
and other
Allowance for borrowed funds
used during construction - - - - 5,915
Preferred stock dividends of
electric utility subsidiaries - - - 3,454 (6,005)
Preferred securities distributions of
trust subsidiaries - - (8,360) - (12,557)
Allowance for equity funds used
during construction - - - - 10,106
-------------- -------------- -------------- --------------- ----------------
Income (loss) from continuing
operations
before income taxes and preferred
stock dividends of HECO 1,444 10,096 259 129,117 151,581
Income taxes (benefit) 505 - - - 56,953
-------------- -------------- -------------- --------------- ---------------
Income (loss) from continuing
operations
before preferred stock dividends
of HECO 939 10,096 259 129,117 94,628
Preferred stock dividends of HECO - - - (3,454) -
-------------- -------------- -------------- --------------- ---------------
Income (loss) from continuing
operations 939 10,096 259 125,663 94,628
Income (loss) from discontinued
operations - - - (9,792) (9,817)
-------------- -------------- -------------- --------------- ---------------
Net income (loss) $ 939 10,096 259 115,871 $ 84,811
============== ============== ============== =============== ===============
</TABLE>
<PAGE>
HAWAIIAN ELECTRIC INDUSTRIES, INC. AND SUBSIDIARIES Exhibit A
Consolidating Statement of Retained Earnings (Page 1 of 2) Page 7 of 8
Year ended December 31, 1998
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Hawaiian
Hawaiian Hawaiian Electric HEI
Electric Tug & Barge HEI Company, Diversified,
Industries, Corp. and Investment Inc. and Inc. and
Inc. subsidiary Corp. subsidiaries subsidiaries
----------- ----------- ----------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Retained earnings (deficit), beginning of year $159,862 8,017 (2,722) 387,582 $ 68,555
Net income (loss) 84,811 2,029 675 80,776 49,342
Distributions of HEI Preferred
Funding, LP - - - - -
Common stock dividends (79,421) (1,454) - (62,522) (31,720)
-------- ------ ------ ------- --------
Retained earnings (deficit), end of year $165,252 8,592 (2,047) 405,836 $ 86,177
======== ====== ====== ======= ========
</TABLE>
Continued below.
HAWAIIAN ELECTRIC INDUSTRIES, INC. AND SUBSIDIARIES
Consolidating Statement of Retained Earnings
Year ended December 31, 1998
(Unaudited)
(in thousands)
(Continued)
<TABLE>
<CAPTION>
Malama
Pacific Pacific
Energy HEI Corp. and
Conservation HEI Power District ProVision subsidiaries
Services, Corp. and Cooling, Tecnologies, (Discontinued
Inc. subsidiaries Inc Inc. operations)
------------ ------------ -------- ------------ --------------
<S> <C> <C> <C> <C> <C>
Retained earnings (deficit), beginning of year $(213) (7,020) - - $(23,447)
Net income (loss) (88) (4,031) (536) (33) (23,557)
Distributions of HEI Preferred
Funding, LP - - - - -
Common stock dividends - - - - -
----- ------- ---- -------- --------
Retained earnings (deficit), end of year $(301) (11,051) (536) (33) $(47,004)
===== ======= ==== ======== ========
</TABLE>
Continued on next page.
<PAGE>
HAWAIIAN ELECTRIC INDUSTRIES, INC. AND SUBSIDIARIES Exhibit A
Consolidating Statement of Retained Earnings (Page 2 of 2) Page 8 of 8
Year ended December 31, 1998
(Unaudited)
(in thousands)
(Continued)
<TABLE>
<CAPTION>
Hawaiian Reclassif-
HEI Electric cations
Hycap Preferred Industries and
Management, Funding, Capital Eliminations
Inc. LP Trust I Dr. (Cr.) Consolidated
------------ ------------ ----------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Retained earnings (deficit),
beginning of year $ 894 -- -- 431,646 $159,862
Net income (loss) 939 10,096 259 115,871 84,811
Distributions of HEI
Preferred Funding, LP -- (10,096) -- (10,096) --
Common stock dividends (1,200) -- (259) (97,155) (79,421)
------- ------- ------ --------- --------
Retained earnings (deficit), end of
year $ 633 -- -- 440,266 $165,252
======= ======= ====== ========= ========
</TABLE>
<PAGE>
<TABLE>
<S> <C>
HAWAIIAN ELECTRIC COMPANY, INC. AND SUBSIDIARIES Exhibit A-1
Consolidating Schedule - Balance Sheet Information (Page 1 of 2) Page 1 of 5
December 31, 1998
(Unaudited)
(in thousands)
</TABLE>
<TABLE>
<CAPTION>
Hawaii
Hawaiian Electric Maui
Electric Light Electric
Company, Company, Company,
ASSETS Inc. Inc. Limited
- ----------------------------------------------- ----------------- ----------------- -----------------
<S> <C> <C> <C>
Cash and equivalents $ 29,753 10,024 $ 15,006
Notes receivable from affiliated companies 25,200 - -
Accounts receivable and unbilled revenues, net 81,322 19,681 14,761
Property, plant and equipment, net 1,188,312 396,281 358,579
Regulatory assets 74,649 17,921 15,774
Other 52,913 15,844 19,500
Investments in wholly owned
subsidiaries, at equity 317,763 - -
---------- ------- --------
$1,769,912 459,751 $423,620
========== ======= ========
LIABILITIES AND
STOCKHOLDER'S EQUITY
- -----------------------------------------------
Liabilities
Accounts payable $ 33,949 9,396 $ 8,052
Short-term borrowings 139,413 25,200 -
Long-term debt 410,488 143,342 171,261
Deferred income taxes 107,254 10,043 11,030
Contributions in aid of construction 130,192 45,293 23,419
Other 111,156 52,208 38,976
---------- ------- --------
932,452 285,482 252,738
---------- ------- --------
HECO-obligated mandatorily redeemable
preferred securities of trust subsidiary
holding solely HECO
and HECO-guaranteed
subordinated debentures - - -
Preferred stock
Subject to mandatory redemption 20,600 7,000 5,480
Not subject to mandatory redemption 30,293 10,000 8,000
---------- ------- --------
50,893 17,000 13,480
---------- ------- --------
Stockholder's equity
Common stock 380,731 100,059 94,410
Retained earnings 405,836 57,210 62,992
---------- ------- --------
786,567 157,269 157,402
---------- ------- --------
$1,769,912 459,751 $423,620
========== ======= ========
</TABLE>
Continued on next page.
<PAGE>
HAWAIIAN ELECTRIC COMPANY, INC. AND SUBSIDIARIES Exhibit A-1
Consolidating Schedule - Balance Sheet Information (Page 2 of 2) Page 2 of 5
December 31, 1998
(Unaudited)
(in thousands)
(Continued)
<TABLE>
<CAPTION>
Reclassifi-
cations
HECO HECO and
Capital Capital Eliminations
ASSETS Trust I Trust II Dr. (Cr.) Consolidated
- ---------------------------------------------- ------- -------- ------------ ------------
<S> <C> <C> <C> <C>
Cash and equivalents $ - - - $ 54,783
Notes receivable from affiliated companies 51,546 51,546 (128,292) -
Accounts receivable and unbilled revenues, net - 178 755 116,697
Property, plant and equipment, net - - - 1,943,172
Regulatory assets - - - 108,344
Other - - - 88,257
Investments in wholly owned
subsidiaries, at equity - - (317,763) -
------- ------ -------- ----------
$51,546 51,724 (445,300) $2,311,253
======= ====== ======== ==========
LIABILITIES AND
STOCKHOLDER'S EQUITY
- ----------------------------------------------
Liabilities
Accounts payable $ - 178 (352) $ 51,927
Short-term borrowings - - 25,200 139,413
Long-term debt - - 103,093 621,998
Deferred income taxes - - - 128,327
Contributions in aid of construction - - - 198,904
Other - - (404) 202,744
------- ------ -------- ----------
- 178 127,537 1,343,313
======= ====== ======== ==========
HECO-obligated mandatorily redeemable preferred
securities of trust subsidiary holding
solely HECO and HECO-guaranteed
subordinated debentures 50,000 50,000 - 100,000
Preferred stock
Subject to mandatory redemption - - - 33,080
Not subject to mandatory redemption - - - 48,293
------- ------ -------- ----------
50,000 50,000 - 181,373
======= ====== ======== ==========
Stockholder's equity
Common stock 1,546 1,546 197,561 380,731
Retained earnings - - 120,202 405,836
------- ------ -------- ----------
1,546 1,546 317,763 786,567
------- ------ -------- ----------
$51,546 51,724 445,300 $2,311,253
======= ====== ======== ==========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
HAWAIIAN ELECTRIC COMPANY, INC. AND SUBSIDIARIES Exhibit A-1
Consolidating Schedule - Income Information (Page 1 of 2) Page 3 of 5
Year ended December 31, 1998
(Unaudited)
(in thousands)
Hawaii
Hawaiian Electric Maui
Electric Light Electric
Company, Company, Company,
Inc. Inc. Limited
----------------- ----------------- -----------------
<S> <C> <C> <C>
Revenues
Electric utility $722,677 157,227 $138,605
Equity in net income of subsidiaries 28,573 - -
----------------- ----------------- -----------------
751,250 157,227 138,605
Expenses-Electric utility 605,246 123,670 109,917
----------------- ----------------- -----------------
Operating income 146,004 33,557 28,688
Interest expense (34,025) (10,481) (9,968)
Allowance for borrowed funds used
during construction 2,623 2,137 1,155
Preferred stock dividends of electric
utility subsidiaries - - -
Preferred securities distributions of
trust subsidiary - - -
Allowance for equity funds used
during construction 4,583 3,531 1,992
----------------- ----------------- -----------------
Income before income tax expense and
preferred stock dividends 119,185 28,744 21,867
Income taxes 34,955 11,225 8,392
----------------- ----------------- -----------------
Income before preferred stock dividends 84,230 17,519 13,475
Preferred stock dividends 3,454 1,445 1,106
----------------- ----------------- -----------------
Net income $ 80,776 16,074 $ 12,369
================= ================= =================
</TABLE>
Continued on next page.
<PAGE>
<TABLE>
<CAPTION>
HAWAIIAN ELECTRIC COMPANY, INC. AND SUBSIDIARIES Exhibit A-1
Consolidating Schedule - Income Information (Page 2 of 2) Page 4 of 5
Year ended December 31, 1998
(Unaudited)
(in thousands)
(Continued)
Reclassifi-
cations
HECO HECO and
Capital Capital Eliminations
Trust I Trust II Dr. (Cr.) Consolidated
--------------- --------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Revenues
Electric utility $ 4,149 178 6,553 $1,016,283
Equity in net income of subsidiaries - - 28,573 -
------- ----- ------ ----------
4,149 178 35,126 1,016,283
------- ----- ------ ----------
Expenses-Electric utility - - - 838,833
------- ----- ------ ----------
Operating income 4,149 178 35,126 177,450
Interest expense (6,553) (47,921)
Allowance for borrowed funds used
during construction - - - 5,915
Preferred stock dividends of electric
utility subsidiaries - - 2,551 (2,551)
Preferred securities distributions of
trust subsidiary (4,025) (172) - (4,197)
Allowance for equity funds used
during construction - - - 10,106
------- ----- ------ ----------
Income before income tax expense and
preferred stock dividends 124 6 31,124 138,802
Income taxes - - - 54,572
------- ----- ------ ----------
Income before preferred stock dividends 124 6 31,124 84,230
Preferred stock dividends - - (2,551) 3,454
------- ----- ------ ----------
Net income $ 124 6 28,573 $ 80,776
======= ===== ====== ==========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
HAWAIIAN ELECTRIC COMPANY, INC. AND SUBSIDIARIES Exhibit A-1
Consolidating Schedule - Retained Earnings Information Page 5 of 5
Year ended December 31, 1998
(Unaudited)
(in thousands)
Hawaii
Hawaiian Electric Maui
Electric Light Electric
Company, Company, Company,
Inc. Inc. Limited
--------------- --------------- ---------------
<S> <C> <C> <C>
Retained earnings, beginning of year $387,582 53,707 $ 61,730
Net income 80,776 16,074 12,369
Common stock dividends (62,522) (12,571) (11,107)
-------- ------ --------
Retained earnings, end of year $405,836 57,210 $ 62,992
======== ======= ========
</TABLE>
Continued below.
<TABLE>
<CAPTION>
HAWAIIAN ELECTRIC COMPANY, INC. AND SUBSIDIARIES
Consolidating Schedule - Retained Earnings Information
Year ended December 31, 1998
(Unaudited)
(in thousands)
(Continued)
Reclassifi-
cations
HECO HECO and
Capital Capital Eliminations
Trust I Trust II Dr. (Cr.) Consolidated
----------------- ----------------- ----------------- ------------
<S> <C> <C> <C> <C>
Retained earnings, beginning of year $ - - 115,437 $387,582
Net income 124 6 28,573 80,776
Common stock dividends (124) (6) (23,808) (62,522)
----- ----- -------- --------
Retained earnings, end of year $ - - 120,202 $405,836
===== ===== ======== ========
</TABLE>
<PAGE>
HEI DIVERSIFIED, INC. AND SUBSIDIARIES Exhibit A-2
Consolidating Schedule - Balance Sheet Information Page 1 of 2
December 31, 1998
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
American Reclassifi-
Savings HEIDI cations
HEI Bank, Real and
Diversified, F.S.B. and Estate Eliminations
ASSETS Inc. subsidiaries Corp. Dr. (Cr.) Consolidated
- ------------------------------------------ ------------- -------------- ---------- ----------- ------------
<S> <C> <C> <C> <C> <C>
Cash and equivalents $ 70 352,566 1 - $ 352,637
Notes receivable from
affiliated companies 17,330 - - - 17,330
Accounts receivable and
unbilled revenues, net 105 30,808 - - 30,913
Investment and mortgage-backed
securities - 1,902,927 - - 1,902,927
Loans receivable, net - 3,143,197 - - 3,143,197
Property, plant and equipment, net - 68,028 - - 68,028
Other - 79,140 - - 79,140
Goodwill and other intangibles - 115,006 - - 115,006
Investments in wholly owned
subsidiaries, at equity 412,760 - - (412,760) -
------------- -------------- --------- ------------ -----------
$430,265 5,691,672 1 (412,760) $5,709,178
============= ============== ========= ============= ===========
LIABILITIES AND
STOCKHOLDER'S EQUITY
- ------------------------------------------
Liabilities
Accounts payable $ 248 49,233 - - $ 49,481
Deposit liabilities - 3,865,736 - - 3,865,736
Securities sold under
agreements to repurchase - 515,330 - - 515,330
Advances from Federal Home Loan Bank - 805,581 - - 805,581
Long-term debt 17,073 - - - 17,073
Deferred income taxes (586) 5,223 - - 4,637
Other 1,185 37,697 - - 38,882
------------- -------------- --------- ------------ -----------
17,920 5,278,800 - - 5,296,720
------------- -------------- --------- ------------- -----------
Preferred stock of savings
bank subsidiary - 75,000 - 75,000 -
Minority interests - 113 - - 113
Stockholder's equity
Common stock 326,168 238,849 1 238,850 326,168
Retained earnings 86,177 98,910 - 98,910 86,177
------------- -------------- --------- ------------- -----------
412,345 337,759 1 337,760 412,345
------------- -------------- --------- ------------- -----------
$430,265 5,691,672 1 412,760 $5,709,178
============= ============== ========= ============= ===========
</TABLE>
<PAGE>
HEI DIVERSIFIED, INC. AND SUBSIDIARIES Exhibit A-2
Consolidating Schedule - Income Information Page 2 of 2
Year ended December 31, 1998
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
American Reclassifi-
Savings HEIDI cations
HEI Bank, Real and
Diversified, F.S.B. and Estate Eliminations
Inc. subsidiaries Corp. Dr. (Cr.) Consolidated
------------- -------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Revenues
Savings bank $ -- 409,883 -- -- $409,883
Other 6,883 5,400 1,483
Equity in net income of subsidiaries 30,263 -- -- 30,263 --
------------- ------------- ------------- ------------- ------------
37,146 409,883 -- 35,663 411,366
------------- ------------- ------------- ------------- ------------
Expenses
Savings bank -- 356,233 -- -- 356,233
Other 149 -- -- -- 149
------------- ------------- ------------- ------------- ------------
149 356,233 -- -- 356,382
------------- ------------- ------------- ------------- ------------
Operating income
Savings bank -- 53,650 -- -- 53,650
Other 36,997 -- -- 35,663 1,334
------------- ------------- ------------- ------------- ------------
36,997 53,650 -- 35,663 54,984
Interest expense-electric utility
and other (1,477) -- -- -- (1,477)
------------- ------------- ------------- ------------- ------------
Income before income tax expense
and preferred stock dividends 35,520 53,650 -- 35,663 53,507
Income tax expense (benefit) (57) 17,987 -- -- 17,930
------------- ------------- ------------- ------------- ------------
Income before preferred stock
dividends 35,577 35,663 -- 35,663 35,577
Preferred stock dividends -- 5,400 -- (5,400) --
------------- ------------- ------------- ------------- ------------
Income from continuing operations 35,577 30,263 -- 30,263 35,577
Income from discontinued operations 13,765 -- -- -- 13,765
------------- ------------- ------------- ------------- ------------
Net income $49,342 30,263 -- 30,263 $ 49,342
============= ============= ============= ============= ============
</TABLE>
HEI DIVERSIFIED, INC. AND SUBSIDIARIES
Consolidating Schedule - Retained Earnings Information
Year ended December 31, 1998
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
American Reclassifi-
Savings HEIDI cations
HEI Bank, Real and
Diversified, F.S.B. and Estate Eliminations
Inc. subsidiaries Corp. Dr. (Cr.) Consolidated
------------- -------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Retained earnings, beginning of year $68,555 82,967 -- 82,967 $ 68,555
Net income 49,342 30,263 -- 30,263 49,342
Common stock dividends (31,720) (14,320) -- (14,320) (31,720)
------------- ------------- ------------- ------------- ------------
Retained earnings, end of year $ 86,177 98,910 -- 98,910 $ 86,177
============= ============= ============= ============= ============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN SAVINGS BANK, F.S.B. AND SUBSIDIARIES Exhibit A-3
Consolidating Schedule - Balance Sheet Information (Page 1 of 2) Page 1 of 4
December 31, 1998
(Unaudited)
(in thousands)
American
American Savings AdCom-
Savings Investment ASB muni
Bank, Services Service cations,
ASSETS F.S.B. Corp. Corporation Inc.
- -------------------------------------------- ---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Cash and equivalents $ 343,408 2,633 88 $344
Accounts receivable and
unbilled revenues, net 21,137 - - -
Investment and mortgage-backed securities 1,311,803 - - -
Loans receivable, net 2,115,417 - - -
Property, plant and equipment, net 67,893 50 36
Other 79,031 107 7
Goodwill and other intangibles 114,997 9
Investments in wholly owned
subsidiaries, at equity 1,657,146 - - -
---------- ------ --- ----
$5,710,832 2,799 124 $351
========== ====== ==== ====
LIABILITIES AND
STOCKHOLDER'S EQUITY
- --------------------------------------------
Liabilities
Accounts payable $ 49,233 - - $ -
Deposit liabilities 3,877,795 - - -
Securities sold under
agreements to repurchase 515,330 - - -
Advances from Federal Home Loan Bank 805,581 - - -
Deferred income taxes 5,223 - - -
Other 44,911 936 34
---------- ------ --- ----
5,298,073 936 - 34
---------- ------ --- ----
Preferred stock 75,000 - - -
Minority Interests - - - -
Stockholder's equity
Common stock 238,849 10 309 61
Retained earnings (deficit) 98,910 1,853 (185) 256
---------- ------ --- ----
337,759 1,863 124 317
---------- ------ --- ----
$5,710,832 2,799 124 $351
========== ====== === ====
</TABLE>
Continued on next page.
<PAGE>
<TABLE>
<CAPTION>
AMERICAN SAVINGS BANK, F.S.B. AND SUBSIDIARIES Exhibit A-3
Consolidating Schedule - Balance Sheet Information (Page 2 of 2) Page 2 of 4
December 31, 1998
(Unaudited)
(in thousands)
(Continued)
Reclassifi-
cations
American and
ASB Savings Elimi-
Realty Mortgage nations Consoli-
ASSETS Corporation Co., Inc. Dr. (Cr.) dated
- -------------------------------------------- ---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Cash and equivalents $ 9,158 675 (3,740) $ 352,566
Accounts receivable and
unbilled revenues, net 9,671 - - 30,808
Investment and mortgage-backed securities 591,124 - - 1,902,927
Loans receivable, net 1,027,780 - - 3,143,197
Property, plant and equipment, net - 49 - 68,028
Other 16,772 3 (16,780) 79,140
Goodwill and other intangibles - - - 115,006
Investments in wholly owned
subsidiaries, at equity - - (1,657,146) -
---------- --- ----------- ----------
$1,654,505 727 (1,677,666) $5,691,672
========== === =========== ==========
LIABILITIES AND
STOCKHOLDER'S EQUITY
- --------------------------------------------
Liabilities
Accounts payable $ - - - $ 49,233
Deposit liabilities - - 12,059 3,865,736
Securities sold under
agreements to repurchase - - - 515,330
Advances from Federal Home Loan Bank - - - 805,581
Deferred income taxes - - - 5,223
Other - 277 8,461 37,697
---------- --- ----------- ----------
- 277 20,520 5,278,800
---------- --- ----------- ----------
Preferred stock 999 - 999 75,000
Minority Interests - - (113) 113
Stockholder's equity
Common stock 1,653,720 440 1,654,540 238,849
Retained earnings (deficit) (214) 10 1,720 98,910
---------- --- ----------- ----------
1,653,506 450 1,656,260 337,759
---------- --- ----------- ----------
$1,654,505 727 1,677,666 $5,691,672
========== === ========== ==========
</TABLE>
<PAGE>
AMERICAN SAVINGS BANK, F.S.B. AND SUBSIDIARIES Exhibit A-3
Consolidating Schedule Income (Loss) Information Page 3 of 4
Year ended December 31, 1998
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
American
American Savings AdCom-
Savings Investment ASB muni
Bank, Services Service cations,
F.S.B. Corp. Corporation Inc.
------- --------- ----------- --------
<S> <C> <C> <C> <C>
Revenues
Savings bank $315,845 3,131 - $167
Equity in net income of subsidiaries 90,856 - - -
-------- ----- --- ----
406,701 3,131 - 167
Expenses-Savings bank 353,707 1,682 38 88
-------- ----- --- ----
Operating income (loss) 52,994 1,449 (38) 79
Income taxes 17,331 622 - 34
-------- ----- --- ----
Income (loss) before
preferred stock dividends 35,663 827 (38) 45
Preferred stock dividends 5,400 - - -
-------- ----- --- ----
Net income (loss) $ 30,263 827 (38) $ 45
======== ===== === ====
</TABLE>
Continued below.
AMERICAN SAVINGS BANK, F.S.B. AND SUBSIDIARIES
Consolidating Schedule Income (Loss) Information
Year ended December 31, 1998
(Unaudited)
(in thousands)
(Continued)
<TABLE>
<CAPTION>
Reclassifi-
cations
American and
ASB Savings Elimi-
Realty Mortgage nations
Corporation Co., Inc. Dr. (Cr.) Consolidated
----------- --------- ----------- ------------
<S> <C> <C> <C> <C>
Revenues
Savings bank $90,754 595 609 $409,883
Equity in net income of subsidiaries - - 90,856 -
------- --- ------ ---------
90,754 595 91,465 409,883
Expenses-Savings bank 954 359 (595) 356,233
------- --- ------ ---------
Operating income (loss) 89,800 236 90,870 53,650
Income taxes - - - 17,987
------- --- ------ ----------
Income (loss) before
preferred stock dividends 89,800 236 90,870 35,663
Preferred stock dividends 14 - (14) 5,400
------- --- ------ ----------
Net income (loss) $89,786 236 90,856 $ 30,263
======= === ====== ==========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN SAVINGS BANK, F.S.B. AND SUBSIDIARIES Exhibit A-3
Consolidating Schedule - Retained Earnings (Deficit) Information Page 4 of 4
Year ended December 31, 1998
(Unaudited)
(in thousands)
American
American Savings AdCom-
Savings Investment ASB muni
Bank, Services Service cations,
F.S.B. Corp. Corporation Inc.
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Retained earnings (deficit),
beginning of year $ 82,967 1,026 (147) $211
Net income (loss) 30,263 827 (38) 45
Common stock dividends (14,320) - - -
-------- ----- ----- ----
Retained earnings (deficit),
end of year $ 98,910 1,853 (185) $256
======== ===== ===== ====
</TABLE>
Continued below.
<TABLE>
<CAPTION>
AMERICAN SAVINGS BANK, F.S.B. AND SUBSIDIARIES
Consolidating Schedule - Retained Earnings (Deficit) Information
(Continued)
Reclassifi-
cations
American and
ASB Savings Elimi-
Realty Mortgage nations
Corporation Co., Inc. Dr. (Cr.) Consolidated
---------------- ---------------- ---------------- -----------------
<S> <C> <C> <C> <C>
Retained earnings (deficit),
beginning of year $ - (226) 864 $ 82,967
Net income (loss) 89,786 236 90,856 30,263
Common stock dividends (90,000) - (90,000) (14,320)
-------- ----- -------- --------
Retained earnings (deficit),
end of year $ (214) 10 1,720 $ 98,910
======== ===== ======== ========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
HAWAIIAN TUG & BARGE CORP. AND SUBSIDIARY Exhibit A-4
Consolidating Schedule - Balance Sheet Information Page 1 of 2
December 31, 1998
(Unaudited)
(in thousands)
Reclassifi-
Hawaiian cations
Tug & Young and
Barge Brothers, Eliminations
ASSETS Corp. Limited Dr. (Cr.) Consolidated
- -------------------------------------------------- ---------- ---------- ------------- ---------------
<S> <C> <C> <C> <C>
Cash and equivalents $ - 18 - $ 18
Notes receivable from affiliated company 9,120 - (9,120) -
Accounts receivable and unbilled revenues, net 758 5,153 (228) 5,683
Property, plant and equipment, net 7,543 38,903 - 46,446
Regulatory assets - 2,115 - 2,115
Other 2,869 2,283 - 5,152
Investment in wholly owned subsidiary, at equity 17,660 - (17,660) -
------- ------ -------- -------
$37,950 48,472 (27,008) $59,414
======= ====== ======== =======
LIABILITIES AND
STOCKHOLDER'S EQUITY
- --------------------------------------------------
Liabilities
Accounts payable $ 900 936 228 $ 1,608
Short-term borrowings (4,076) 5,526 - 1,450
Long-term debt 16,250 9,120 9,120 16,250
Deferred income taxes 1,910 6,398 - 8,308
Other 1,145 8,832 - 9,977
------- ------ -------- -------
16,129 30,812 9,348 37,593
------- ------ -------- -------
Stockholder's equity
Common stock 13,229 7,414 7,414 13,229
Retained earnings 8,592 10,246 10,246 8,592
------- ------ -------- -------
21,821 17,660 17,660 21,821
------- ------ -------- -------
$37,950 48,472 27,008 $59,414
======= ====== ======== =======
</TABLE>
<PAGE>
HAWAIIAN TUG & BARGE CORP. AND SUBSIDIARY Exhibit A-4
Consolidating Schedule - Income Information Page 2 of 2
Year ended December 31, 1998
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Reclassifi-
Hawaiian cations
Tug & Young and
Barge Brothers, Eliminations
Corp. Limited Dr. (Cr.) Consolidated
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Revenues
Other $ 7,980 47,511 2,260 $53,231
Equity in net income of subsidiary 2,391 - 2,391 -
----------------- ----------------- ----------------- -----------------
10,371 47,511 4,651 53,231
----------------- ----------------- ----------------- -----------------
Expenses-Other 6,889 42,798 (1,487) 48,200
----------------- ----------------- ----------------- -----------------
Operating income 3,482 4,713 3,164 5,031
Interest expense-electric utility and
other (1,265) (799) (773) (1,291)
----------------- ----------------- ----------------- -----------------
Income before income taxes 2,217 3,914 2,391 3,740
Income taxes 188 1,523 - 1,711
----------------- ----------------- ----------------- -----------------
Net income $ 2,029 2,391 2,391 $ 2,029
================= ================= ================= =================
</TABLE>
HAWAIIAN TUG & BARGE CORP. AND SUBSIDIARY
Consolidating Schedule - Retained Earnings Information
Year ended December 31, 1998
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Reclassifi-
Hawaiian cations
Tug & Young and
Barge Brothers, Eliminations
Corp. Limited Dr. (Cr.) Consolidated
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Retained earnings, beginning of year $ 8,017 9,309 9,309 $ 8,017
Net income 2,029 2,391 2,391 2,029
Common stock dividends (1,454) (1,454) (1,454) (1,454)
----------------- ----------------- ----------------- -----------------
Retained earnings, end of year $ 8,592 10,246 10,246 $ 8,592
================= ================= ================= =================
</TABLE>
<PAGE>
HEI POWER CORP. AND SUBSIDIARIES Exhibit A-5
Consolidating Schedule - Balance Sheet Information Page 1 of 2
December 31, 1998
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
HEI HEI Reclassifications
HEI Power Power and
Power Corp. Corp. Eliminations
ASSETS Corp. Guam International Dr. (Cr.) Consolidated
- ------------------------------ -------------- -------------- --------------- ----------------- --------------
<S> <C> <C> <C> <C> <C>
Cash and equivalents $ 14 82 1,707 - $ 1,803
Notes receivable from
affiliated companies 11,653 - (948) (10,705) -
Accounts receivable and
unbilled revenues, net 30 451 2,645 - 3,126
Property, plant and equipment, net 363 14,398 16,522 - 31,283
Other 4 90 7,617 - 7,711
Investments in wholly owned
subsidiaries, at equity 26,924 - - (26,924) -
-------- --------- --------- -------- --------
$ 38,988 15,021 27,543 (37,629) $ 43,923
======== ========= ========= ======== ========
LIABILITIES AND
STOCKHOLDER'S EQUITY
- ------------------------------
Liabilities
Accounts payable $ 144 12 277 - $ 433
Short-term borrowings 6,823 10,705 - 10,705 6,823
Long-term debt 6,423 - - - 6,423
Deferred income taxes - (248) - - (248)
Other 418 1,217 115 - 1,750
-------- --------- --------- -------- --------
13,808 11,686 392 10,705 15,181
-------- --------- --------- -------- --------
Minority interests - - 3,562 - 3,562
-------- --------- --------- -------- --------
Stockholder's equity
Common stock 36,231 2,250 25,004 27,254 36,231
Retained earnings (deficit) (11,051) 1,085 (1,415) (330) (11,051)
-------- --------- --------- -------- --------
25,180 3,335 23,589 26,924 25,180
-------- --------- --------- -------- --------
$ 38,988 15,021 27,543 37,629 $ 43,923
======== ========= ========= ======== ========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
HEI POWER CORP. AND SUBSIDIARIES Exhibit A-5
Consolidating Schedule - Income (Loss) Information Page 2 of 2
Year ended December 31, 1998
(Unaudited)
(in thousands)
Reclassifi-
HEI HEI cations
HEI Power Power and
Power Corp. Corp. Eliminations
Corp. Guam International Dr. (Cr.) Consolidated
-------------- -------------- ---------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Revenues
Other $ 642 4,437 331 637 $ 4,773
Equity in net loss of (423) - - (423) -
subsidiaries ------- --------- -------- ------ -------
219 4,437 331 214 4,773
------- --------- -------- ------ -------
Expenses - Other 3,712 2,828 1,397 - 7,937
------- --------- -------- ------ -------
Operating income (loss) (3,493) 1,609 (1,066) 214 (3,164)
Interest expense (538) (637) - (637) (538)
------- --------- -------- ------ -------
Income (loss) before
income tax expense (4,031) 972 (1,066) (423) (3,702)
Income taxes - 329 - - 329
------- --------- -------- ------ -------
Net income (loss) $(4,031) 643 (1,066) (423) $(4,031)
======= ========= ======== ====== =======
</TABLE>
<TABLE>
<CAPTION>
HEI POWER CORP. AND SUBSIDIARIES
Consolidating Schedule - Retained Earnings (Deficit) Information
Year ended December 31, 1998
(Unaudited)
(in thousands)
Reclassifi-
HEI HEI cations
HEI Power Power and
Power Corp. Corp. Eliminations
Corp. Guam International Dr. (Cr.) Consolidated
-------------- -------------- ---------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Retained earnings (deficit),
beginning of year $ (7,020) 442 (349) 93 $ (7,020)
Net income (loss) (4,031) 643 (1,066) (423) (4,031)
------- --------- ------- ------ -------
Retained earnings (deficit),
end of year $(11,051) 1,085 (1,415) (330) $(11,051)
========= ========= ======= ====== ========
</TABLE>
<PAGE>
HEI POWER CORP. INTERNATIONAL AND SUBSIDIARIES Exhibit A-6
Consolidating Schedule - Balance Sheet Information (Page 1 of 3) Page 1 of 6
December 31, 1998
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
HEIPC
HEI HEIPC Lake
Power Philippine Mainit
Corp. Development, Power,
ASSETS International LLC LLC
- -------------------------------------------- ---------------- ----------------- ----------------
<S> <C> <C> <C>
Cash and equivalents $ 22 339 $ 121
Notes receivable from affiliated companies (91) - 91
Accounts receivable and
unbilled revenues, net - - -
Property, plant and equipment, net - - 25
Other 6 7,601 1
Investments in wholly owned
subsidiaries, at equity 23,672 - -
-------- ------- -------
$ 23,609 7,940 $ 238
======== ======== ========
LIABILITIES AND
STOCKHOLDER'S EQUITY
- --------------------------------------------
Liabilities
Accounts payable $ 20 - $ -
Other - - -
-------- -------- --------
20 - -
-------- -------- --------
Minority interests - - -
-------- -------- --------
Stockholder's equity
Common stock 25,004 7,901 447
Retained earnings (deficit) (1,415) 39 (209)
-------- -------- --------
23,589 7,940 238
-------- -------- --------
$23,609 7,940 $ 238
======== ======== ========
</TABLE>
Continued on next page.
<PAGE>
HEI POWER CORP. INTERNATIONAL AND SUBSIDIARIES Exhibit A-6
Consolidating Schedule - Balance Sheet Information (Page 2 of 3) Page 2 of 6
December 31, 1998
(Unaudited)
(in thousands)
(Continued)
<TABLE>
<CAPTION>
HEIPC HEIPC
Bulacan I, Bulacan II, HEIPC HEIPC
ASSETS LLC LLC China China II
- ------------------------------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Cash and equivalents $ - - 96 $ 1,129
Notes receivable from affiliated
companies - - (102) (846)
Accounts receivable and
unbilled revenues, net - - - 2,645
Property, plant and equipment, net - - 6 16,491
Other - - - 5
Investments in wholly owned
subsidiaries, at equity - - - -
------------- -------------- -------------- --------------
$ - - - $19,424
============= ============== ============== ==============
LIABILITIES AND
STOCKHOLDER'S EQUITY
- -------------------------------------
Liabilities
Accounts payable $ - - 20 $ 237
Other - - - 115
------------- -------------- ------------- --------------
- - 20 352
------------- -------------- -------------- --------------
Minority interests - - 3,562
------------- -------------- -------------- --------------
Stockholder's equity
Common stock - - - 16,428
Retained earnings (deficit) - - (20) (918)
-------------- -------------- -------------- --------------
- - (20) 15,510
-------------- -------------- --------------- --------------
$ - - - $19,424
============== ============== ============== ==============
</TABLE>
Continued on next page.
<PAGE>
<TABLE>
<CAPTION>
HEI POWER CORP. INTERNATIONAL AND SUBSIDIARIES Exhibit A-6
Consolidating Schedule - Balance Sheet Information (Page 3 of 3) Page 3 of 6
December 31, 1998
(Unaudited)
(in thousands)
(Continued)
HEIPC HEIPC Phnom Reclassifi-
Phnom Penh Penh cations
Power Power and
(General), (Limited), Eliminations
ASSETS LLC LLC Dr. (Cr.) Consolidated
- -------------------------------------------- -------------- -------------- --------------- ------------
<S> <C> <C> <C> <C>
Cash and equivalents $- - - $ 1,707
Notes receivable from affiliated companies - - - (948)
Accounts receivable and
unbilled revenues, net - - - 2,645
Property, plant and equipment, net - - - 16,522
Other 2 2 - 7,617
Investments in wholly owned
subsidiaries, at equity - - (23,672) _
-------- -------- ---------- -------
$2 2 (23,672) $27,543
======== ======== ========== =======
LIABILITIES AND
STOCKHOLDER'S EQUITY
- --------------------------------------------
Liabilities
Accounts payable $- - - $ 277
Other - - - 115
-------- -------- ---------- -------
- - - 392
-------- -------- ---------- -------
Minority interests - - - 3,562
-------- -------- ---------- -------
Stockholder's equity
Common stock 2 2 24,780 25,004
Retained earnings (deficit) - - (1,108) (1,415)
-------- -------- ---------- -------
2 2 23,672 23,589
-------- -------- ---------- -------
$2 2 23,672 $27,543
======== ======== ========== =======
</TABLE>
<PAGE>
HEI POWER CORP. INTERNATIONAL AND SUBSIDIARIES Exhibit A-6
Consolidating Schedule - Income (Loss) Information (Page 1 of 2) Page 4 of 6
Year ended December 31, 1998
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
HEIPC
HEI HEIPC Lake
Power Philippine Mainit
Corp. Development, Power,
International LLC LLC
---------------- --------------- --------------
<S> <C> <C> <C>
Revenues
Other $ - 39 $ 5
Equity in net loss of subsidiaries (894) - -
------- ---- ---
(894) 39 5
------- ---- ---
Expenses-Other 172 - -
------- ---- ---
Net income (loss) $(1,066) 39 $ 5
======= ==== ===
</TABLE>
Continued below.
HEI POWER CORP. INTERNATIONAL AND SUBSIDIARIES
Consolidating Schedule - Income (Loss) Information
Year ended December 31, 1998
(Unaudited)
(in thousands)
(Continued)
<TABLE>
<CAPTION>
HEI HEI
HEIPC HEIPC Power Power
Bulacan I, Bulacan II, Corp. Corp.
LLC LLC China China II
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Revenues
Other $ - - - $ 287
Equity in net loss of subsidiaries - - - -
---- ------- ----- ------
- - - 287
---- ------- ----- ------
Expenses-Other - - 20 1,205
---- ------- ----- ------
Net income (loss) $ - - (20) $ (918)
==== ======= ===== ======
</TABLE>
Continued on next page.
<PAGE>
<TABLE>
<CAPTION>
HEI POWER CORP. INTERNATIONAL AND SUBSIDIARIES Exhibit A-6
Consolidating Schedule - Income (Loss) Information (Page 2 of 2) Page 5 of 6
Year ended December 31, 1998
(Unaudited)
(in thousands)
(Continued)
HEIPC HEIPC Reclassifi-
Phnom Penh Phnom Penh cations
Power Power and
(General), (Limited), Eliminations
LLC LLC Dr. (Cr.) Consolidated
---------------- -------------- ---------------- --------------
<S> <C> <C> <C> <C>
Revenues
Other $- - - $ 331
Equity in net loss of subsidiaries - - (894) -
-------- ------- ----- -------
- - (894) 331
-------- ------- ----- -------
Expenses-Other - - - 1,397
-------- ------- ----- -------
Net income (loss) $- - (894) $(1,066)
======== ======= ===== =======
</TABLE>
<PAGE>
HEI POWER CORP. INTERNATIONAL AND SUBSIDIARIES Exhibit A-6
Consolidating Schedule - Retained Earnings (Deficit) Information Page 6 of 6
Year ended December 31, 1998
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
HEI HEIPC HEIPC
Power Philippine Lake Mainit
Corp. Development, Power,
International LLC LLC
---------------- --------------- ---------------
<S> <C> <C> <C>
Retained earnings (deficit), $ (349) - $(214)
beginning of year
Net income (loss) (1,066) 39 5
-------------- ------------ -------------
Retained earnings (deficit), end of $(1,415) 39 $(209)
year ============== ============= =============
</TABLE>
Continued below.
HEI POWER CORP. INTERNATIONAL AND SUBSIDIARIES
Consolidating Schedule - Retained Earnings (Deficit) Information
Year ended December 31, 1998
(Unaudited)
(in thousands)
(Continued)
<TABLE>
<CAPTION>
HEI HEI
HEIPC HEIPC Power Power
Bulacan I, Bulacan II, Corp. Corp.
LLC LLC China China II
-------------- ------------ -------------- --------------
<S> <C> <C> <C> <C>
Retained earnings (deficit), $ - - - $ -
beginning of year
Net income (loss) - - (20) (918)
-------------- ------------ -------------- --------------
Retained earnings (deficit), end of $ - - (20) $(918)
year ============== ============ ============== ==============
</TABLE>
Continued below.
HEI POWER CORP. INTERNATIONAL AND SUBSIDIARIES
Consolidating Schedule - Retained Earnings (Deficit) Information
Year ended December 31, 1998
(Unaudited)
(in thousands)
(Continued)
<TABLE>
<CAPTION>
HEIPC HEIPC Reclassifi-
Phnom Penh Phnom Penh cations
Power Power and
(General), (Limited), Eliminations
LLC LLC Dr. (Cr.) Consolidated
--------------- ------------ -------------- --------------
<S> <C> <C> <C> <C>
Retained earnings (deficit), $ - - (214) $ (349)
beginning of year
Net income (loss) - - (894) (1,066)
------------- ------------ -------------- --------------
Retained earnings (deficit), end of $ - - (1,108) $(1,415)
year ============= ============ ============== ==============
</TABLE>
<PAGE>
HEIPC CHINA II AND SUBSIDIARIES Exhibit A-7
Consolidating Schedule - Balance Sheet Information Page 1 of 2
December 31, 1998
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
United Reclassifi-
Power Baotou cations
Pacific Tianjiao and
HEIPC Company Power Eliminations
ASSETS China II Limited Co., Ltd. Dr. (Cr.) Consolidated
- --------------------------------------- ------------ --------- ---------- ------------- ------------
<S> <C> <C> <C> <C> <C>
Cash and equivalents $ 150 250 729 -- $ 1,129
Notes receivable from
affiliated companies (846) 5 (5) -- (846)
Accounts receivable and
unbilled revenues, net 2,645 -- -- -- 2,645
Property, plant and equipment, net 4,000 3,291 9,200 -- 16,491
Other -- -- 5 -- 5
Investments in wholly owned
subsidiaries, at equity 9,562 8,546 -- (18,108) --
------- --------- ------- -------- --------
$15,511 12,092 9,929 (18,108) $19,424
======= ======== ======== ======== =======
LIABILITIES AND
STOCKHOLDER'S EQUITY
- ---------------------------------------
Liabilities
Accounts payable $ -- 25 212 -- $ 237
Other 1 114 -- -- 115
------- --------- ------- -------- --------
1 139 212 -- 352
------- --------- ------- -------- --------
Minority interests -- -- -- (3,562) 3,562
------- --------- ------- -------- --------
Stockholder's equity
Common stock 16,428 13,101 9,867 22,968 16,428
Retained earnings (deficit) (918) (1,148) (150) (1,298) (918)
------- --------- ------- -------- --------
15,510 11,953 9,717 21,670 15,510
------- --------- ------- -------- --------
$15,511 12,092 9,929 18,108 $19,424
======= ========= ======= ======== ========
</TABLE>
<PAGE>
HEIPC CHINA II AND SUBSIDI Exhibit A-7
Consolidating Schedule Income (Loss) Information Page 2 of 2
Year ended December 31, 1998
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
United Reclassifi-
Power Baotou cations
Pacific Tianjiao and
HEIPC Company Power Eliminations
China II Limited Co., Ltd. Dr. (Cr.) Consolidated
-------------- -------------- -------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Revenues
Other $ - 7 13 (267) $ 287
Equity in net loss of subsidiaries (918) (113) - (1,031) -
-------------- -------------- -------------- --------------- ---------------
(918) (106) 13 (1,298) 287
-------------- -------------- -------------- --------------- ---------------
Expenses Other - 1,042 163 - 1,205
-------------- -------------- -------------- --------------- ---------------
Net income (loss) $(918) (1,148) (150) (1,298) $ (918)
============== ============== ============== =============== ===============
</TABLE>
HEIPC CHINA II AND SUBSIDIARIES
Consolidating Schedule - Retained Earnings (Deficit) Information
Year ended December 31, 1998
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
United Reclassifi-
Power Baotou cations
Pacific Tianjiao and
HEIPC Company Power Eliminations
China II Limited Co., Ltd. Dr. (Cr.) Consolidated
-------------- -------------- -------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Retained earnings (deficit),
beginning of year $ - - - - $ -
Net income (loss) (918) (1,148) (150) (1,298) (918)
-------------- -------------- -------------- --------------- ---------------
Retained earnings (deficit),
end of year $(918) (1,148) (150) (1,298) $(918)
============== ============== ============== =============== ===============
</TABLE>
<PAGE>
Exhibit B
Page 1 of 1
HAWAIIAN ELECTRIC INDUSTRIES, INC. AND SUBSIDIARIES
FINANCIAL DATA SCHEDULE
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Item No. Year ended December 31, 1998
- ------------- --------------------------------------------------------------------------
<S> <C> <C>
1 Total Assets (at December 31)......................... $8,199,260
2 Total Operating Revenues.............................. 1,485,165
3 Net Income............................................ 84,811
</TABLE>
HAWAIIAN ELECTRIC COMPANY, INC. AND SUBSIDIARIES
FINANCIAL DATA SCHEDULE
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Item No. Year ended December 31, 1998
- ------------- --------------------------------------------------------------------------
<S> <C> <C>
1 Total Assets (at December 31)......................... $2,311,253
2 Total Operating Revenues.............................. 1,016,283
3 Net Income............................................ 80,776
</TABLE>
|
|