Benzinga - by Vandana Singh, Benzinga Editor.
Hawaiian Electric Industries Inc (NYSE: HE), the power utility allegedly responsible for the catastrophic Lahaina fire, stands accused of removing key evidence from the primary fire scene, potentially hampering the official investigation.
Data from Whisker Labs reported multiple incidents in the power grid on August 7, with power outages on the morning of August 8, shortly after, a fire was reported near the Lahaina substation.
Later, the same day, a wind-fueled blaze swept through downtown Lahaina, marking the deadliest fire in Hawaii's history.
Citing documents, the Washington Post notes that the company removed fallen poles, transformers, power lines, and other equipment near the Lahaina substation shortly after the fire on August 8, actions preceding the arrival of federal investigators.
Michael Wara, director of the Climate and Energy Policy Program at Stanford University, highlighted the significance of maintaining the original scene for investigators to understand the fire's origin.
However, Hawaiian Electric stated that they have carefully documented, photographed, and stored the removed equipment and are working closely with the federal Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and local authorities.
Mounting evidence suggests that Hawaiian Electric's wind-damaged equipment may have caused sparks that ignited the surrounding vegetation.
The utility now faces multiple lawsuits for allegedly sparking the Maui wildfires, including the Lahaina fire that resulted in at least 115 deaths.
Notably, Hawaiian Electric failed to cut off power in anticipation of high winds despite other preemptive measures. Maui County's lawsuit criticizes the utility for neglecting to shut down power even after wind warnings and accuses the company of not maintaining its equipment adequately.
After the fire, the ATF began its investigation to pinpoint the cause of the wildfires. However, the utility had already cleared the vicinity of the substation and relocated damaged equipment.
Many have drawn parallels between Hawaiian Electric's current predicament and the situation Pacific Gas & Electric (PG&E) faced following the 2018 Camp Fire.
PG&E had previously been fined for not preserving evidence correctly after fires.
Price Action: HE shares are down 23.30% at $9.01 during the premarket session on the last check Friday.
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