Hawaiian Electric Rises on Bill to Securitize Fire Costs (2)

Hawaiian Electric Industries Inc.’s shares rose on Tuesday after state lawmakers introduced a bill that would allow the company’s electric utility to sell recovery bonds backed by customer rates to cover costs from the deadly Maui wildfire.

Hawaiian Electric, whose shares have been battered since the August 2023 wildfire, climbed 4.5% to close at $13.35 in New York.

The Hawaii measure, if passed by the state legislature, would allow Hawaiian Electric to raise capital through a process called securitization where bonds are sold to cover large expenses that can be paid off over a long period of time. ...