"'Worst Wildfire' Cause Was a Broken Power Line"…Hawaii Sues Electric Company

"Hurricane Forecast but Power Not Cut, Wildfire Occurs"
Damage Exceeds 7 Trillion Won...Electric Company Stock Plummets

Authorities on Maui Island, Hawaii, devastated by the worst wildfire in over 100 years, filed a lawsuit against the electric company on the 24th (local time), claiming the wildfire was caused by a downed power line.

According to the Wall Street Journal (WSJ) and others, Maui County filed a damage compensation lawsuit on the same day at the Second Circuit Court of Hawaii against Hawaiian Electric (HECO) and other corporations. The lawsuit alleges that the electric company’s failure to cut power despite forecasts of hurricanes led to three wildfires in August.

[Image source=AP Yonhap News]

In particular, county authorities claimed that despite a red hurricane warning issued by the U.S. National Weather Service (NWS) on the 7th, Hawaiian Electric did not cut power to its electrical equipment, and the downed power lines caused by strong winds came into contact with dry grass and bushes, igniting the wildfire.

The authorities stated that the wildfire caused damage including losses to public infrastructure, firefighting costs, loss of tax revenue, environmental damage, and loss of historic and cultural landmarks. The fire that broke out on the 8th in the Lahaina and Kula areas of Maui Island burned over 3,000 acres (12.1 km²) and destroyed more than 2,200 buildings, resulting in estimated damages exceeding $5.5 billion (approximately 7.3 trillion KRW).

The human toll is also severe. As of the 23rd, 115 deaths have been confirmed, and at least 850 people remain missing.

However, this lawsuit targets only the damages suffered by public authorities. Maui County stated, "We are working with the residents of Lahaina and Kula and the local community to restore public resources and rebuild public facilities."

HECO provides electricity to 95% of the Hawaii region, and its stock is traded on the New York Stock Exchange. Several similar lawsuits from residents have already been filed against the company following the fire. Since the beginning of this month, its stock price has plummeted to about one-third of its previous value, and three credit rating agencies have downgraded the company’s credit rating to junk (speculative grade).

According to Bloomberg News, investment research firm Capstone projected that if Hawaiian Electric is found liable, the company’s potential liabilities could reach nearly $4 billion.

HECO stated, "Following this unimaginable tragedy, we are focused on doing everything we can to support not only the residents of Maui but also Maui County," adding, "We deeply regret that Maui County has chosen to pursue litigation while investigations are still ongoing."

This content was produced with the assistance of AI translation services.