Maui County announced it has initiated legal action against a local electric provider to recover compensation for damages sustained due to the terrible wildfires on the island, including those that hit Lahaina and Kula.
For the first time, a branch of Hawaii's government has publicly blamed its electricity provider for contributing to the worst fire in the US in more than a century.
Maui County vs. HECO
A lawsuit filed on Thursday, August 24, by the county against Hawaiian Electric Company (HECO) and its subsidiaries claimed that the utility firm's negligence was to blame for the deadly wildfires that ravaged the state, destroying thousands of acres of property and killing more than 100 people.
According to CNN, the complaint claims that HECO, the electric provider, "inexcusably kept their power lines energized" in early August despite a high wind watch and a fire warning issued by the National Weather Service. Apparently, the alerts warned that high winds might down power lines, sparking a fire that could swiftly spread owing to the dry ground.
As stated in the complaint, "the fire was a direct and legal result of the negligence, carelessness, recklessness, and/or unlawfulness" of HECO.
John Fiske, the attorney for Maui County in this case, stated that the county is suing HECO for damages that might run into the tens or hundreds of millions of dollars.
In a statement to CNN, a representative from HECO expressed their extreme disappointment that Maui County had decided to take legal action while the inquiry was still ongoing. "Our primary focus in the wake of this unimaginable tragedy has been to do everything we can to support not just the people of Maui, but also Maui County."
The majority of Hawaii's residents are served by Hawaiian Electric Company, a for-profit firm listed on the New York Stock Exchange.
After the news of the lawsuit broke, shares of HECO plummeted by 6% in extended trading, CNBC reported. In order to redirect funds toward disaster relief, rebuilding efforts, and power restoration, the utility company has announced it will stop paying quarterly dividends starting in the third quarter.
Also Read : Delayed Water in Maui Contributes to Wildfire's Severity; Hawaiian Company Shares Details
Economic Damages
Hundreds of acres in Kula and Olinda and over 2,000 acres in Lahaina on the island of Maui were destroyed by the wildfires that started on August 8.
Moody's RMS estimates financial losses of up to $6 billion as a consequence of the damage done to houses, companies, infrastructure, and the decline in tourism.
According to Fiske, the community will need to work with the government in order to rebuild after the devastating fire. "The expectations here are going to be looking forward towards recovery and rebuilding."
