Hawaiian Electric Industries Enters Material Definitive Agreement
Ticker: HE · Form: 8-K · Filed: Aug 19, 2024 · CIK: 354707
Sentiment: neutral
Topics: material-agreement, definitive-agreement
Related Tickers: HE
TL;DR
HE just signed a big deal, details TBD.
AI Summary
Hawaiian Electric Industries, Inc. (HE) entered into a Material Definitive Agreement on August 14, 2024. The filing does not disclose specific details of the agreement, such as the counterparty or financial terms, but indicates it is a significant event for the company.
Why It Matters
This filing signals a significant new contract or partnership for Hawaiian Electric Industries, which could impact its future operations and financial performance.
Risk Assessment
Risk Level: medium — The lack of specific details in the filing creates uncertainty about the nature and implications of the material definitive agreement.
Key Players & Entities
- HAWAIIAN ELECTRIC INDUSTRIES INC (company) — Filer
- HAWAIIAN ELECTRIC CO INC (company) — Subsidiary/Former Company
- August 14, 2024 (date) — Date of Report
FAQ
What is the nature of the Material Definitive Agreement entered into by Hawaiian Electric Industries?
The filing states that Hawaiian Electric Industries, Inc. entered into a Material Definitive Agreement on August 14, 2024, but does not provide specific details about the agreement itself.
Who is the counterparty to this Material Definitive Agreement?
The filing does not disclose the name of the other party involved in the Material Definitive Agreement.
What are the key financial terms or obligations associated with this agreement?
The filing does not specify any financial terms, dollar amounts, or obligations related to the Material Definitive Agreement.
When was this Material Definitive Agreement officially entered into?
The agreement was entered into on August 14, 2024.
Does this agreement represent a significant change in Hawaiian Electric Industries' business operations?
As a 'Material Definitive Agreement,' it is presumed to be significant, but the filing does not elaborate on the specific impact on business operations.
Filing Stats: 957 words · 4 min read · ~3 pages · Grade level 11.4 · Accepted 2024-08-19 15:04:02
Filing Documents
- he-20240814.htm (8-K) — 31KB
- 0000354707-24-000056.txt ( ) — 190KB
- he-20240814.xsd (EX-101.SCH) — 3KB
- he-20240814_def.xml (EX-101.DEF) — 14KB
- he-20240814_lab.xml (EX-101.LAB) — 26KB
- he-20240814_pre.xml (EX-101.PRE) — 15KB
- he-20240814_htm.xml (XML) — 5KB
01 Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement. On August 14, 2024, Hawaiian Electric Company, Inc., and its subsidiaries Hawaii Electric Light Company, Inc., and Maui Electric Company, Limited, (collectively, the Companies) and PAR Hawaii Refining, LLC (PAR), entered into a Second Amendment to Supply Agreement for Petroleum Fuels (Second Amendment), which amends that Supply Agreement for Petroleum Fuels dated January 19, 2022, as amended by the First Amendment to Supply Agreement for Petroleum Fuels dated February 1, 2022 (Supply Agreement). The Supply Agreement is an agreement for the Companies' Low Sulfur Fuel Oil Supply (LSFO), High Sulfur Fuel Oil (HSFO), No. 2 Diesel (Diesel), and Ultra-Low Sulfur Diesel (ULSD) requirements. The Second Amendment extends the term of the Supply Agreement through January 31, 2029, and provides for automatic one-year extensions thereafter beginning on February 1, 2029, unless a party gives written termination notice at least 120 days before the beginning of an extension. In addition to extending the term, the Second Amendment amends LSFO pricing. While all LSFO in the current contract is priced on the same index, LSFO pricing for volumes up to 13,500 barrels per day will be based on an average of two indices that the Companies expect will remove some pricing volatility risk on the majority of LSFO volume that the Companies purchase. Also, the Second Amendment amends the Supply Agreement's LSFO tiered discount and premium structure to provide only a discount structure for all tiers. The Companies will file an application with the Public Utilities Commission of the State of Hawaii (PUC), requesting approval of the Second Amendment and to recover the costs associated with the Second Amendment through the energy cost recovery clause to the extent the costs are not recovered in base rates. The Second Amendment must be approved by the PUC to become effective. The foregoing description of the Second Amendment is limited and qual
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized. The signature of the undersigned companies shall be deemed to relate only to matters having reference to such companies and any subsidiaries thereof. HAWAIIAN ELECTRIC INDUSTRIES, INC. HAWAIIAN ELECTRIC COMPANY, INC. (Registrant) (Registrant) /s/ Scott T. DeGhetto /s/ Paul K. Ito Scott T. DeGhetto Paul K. Ito Executive Vice President, Senior Vice President, Chief Financial Officer and Treasurer Chief Financial Officer and Treasurer Date: August 19, 2024 Date: August 19, 2024 2