HEI may write off One of Hawaiian Electric Industries Inc.'s units said it may have to write off part of the $81 million cost of putting two power generators into service after a court reversed a decision allowing their construction.
generator costs
Star-Bulletin staff and wire
The Third Circuit Court of Hawaii ruled Thursday that the state's Board of Land and Natural Resources exceeded its authority in extending a 1999 deadline for Hawaii Electric Light Co. to expand its Keahole power station, the utility said in a filing with the Securities and Exchange Commission. The BLNR's permit extension to allow construction to proceed through Dec. 31, 2003, had been appealed by the Keahole Defense Coalition, the Department of Hawaiian Home Lands and two individuals.
Chuck Freedman, a spokes-man for Hawaii Electric Light parent Hawaiian Electric Co., said the company was surprised by the ruling.
"The plant is about 75 percent completed and we were anticipating having power from the first generating unit in December or January, with the second unit to follow about a month later," Freedman said. "So we were definitely planning on having this power available. Right now, we're looking at alternatives with an eye at getting it completed."
Hawaii Electric Light said options it is considering include requesting a reconsideration of the order, or appealing to either the Hawaii Supreme Court or the Hawaii Intermediate Court of Appeals.
If unsuccessful in its appeal, Hawaiian Electric Industries, the parent company of Hawaiian Electric Co., "may be required to write off a material portion of the costs incurred in its efforts to put these units into service," according to the filing.
In 1991, Hawaii Electric Light began planning to meet increased electric generation demand forecast for 1994. Each of the units was designed to produce 20 megawatts. One megawatt is enough power for 800 typical U.S. homes.
Hawaiian Electric's stock fell 52 cents today to close at 42.33.
