When You Want Everything, You End Up with Nothing

(Images of class action lawsuits against HE)

After its 2019 bankruptcy resulting from wildfire liabilities, PG&E enacted procedures to cut off electricity preemptively when fire danger is high.

Now similar class-action lawsuits have been filed against Hawaiian Electric for not shutting down Maui's power lines.

Utilities may not be as legally responsible in Hawaii as they are in California. [bold added]

The company noted that there is no precedent in Hawaii, as there is in California, for property owners to receive compensation for damages caused by a private party such as an investor-owned utility, or from a government entity.

Hawaiian Electric also cited the dangers of shutting down electricity in the midst of a fire:

“Preemptive, short-notice power shut-offs have to be coordinated with first responders, and in Lahaina, electricity powers some of the pumps that provide the water needed for firefighting,” the company wrote. “A power shut-off can jeopardize the health and safety of the elderly, the disabled and those most in need.”

Hawaiian Electric management no doubt bears some responsibility, but IMHO government is at least equally culpable. Government regulates utilities because utility monopolies are free to set prices without being restrained by competition. The WSJ says that Hawaiian Electric and PG&E are simply following their State governments' orders:

If Hawaiian Electric’s lines did ignite the fires, it would echo the problems of PG&E, the California utility that filed for Chapter 11 bankruptcy in 2019 after getting sued for tens of billions of dollars for damages from fires caused by its equipment. The 2018 Camp Fire killed 84 people and razed the town of Paradise.

What both utilities have in common is that they prioritized growing renewable power to meet government mandates over hardening their systems and reducing fire risk. In 2015 Hawaii lawmakers required that 100% of the state’s electricity come from renewable sources by 2045. California and some other states followed with similar mandates.

Hawaii and California share another characteristic: the Democratic Party has held all state-wide offices and controlled the state legislature for over a decade. This means that the priorities of regulated businesses are the priorities of the Party: eliminating fossil fuels, promoting DEI (diversification, equity, and inclusion) and corporate ESG (environment, social, and governance) all supersede such mundane activities as hardening infrastructure and operating profitably.

The voters of Hawaii and California are getting what they wanted, and the victims of Paradise, CA, and Lahaina, HI paid the tragic price.