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HONOLULU (HawaiiNewsNow) – Facing potentially billions of dollars in damages from the Maui wildfires, Hawaiian Electric has proposed a $1 billion fund to pay for damages from future conflagrations. I am.
The bill, now before lawmakers, would protect companies like Hawaiian Electric from lawsuits.
This proposal is one of several strategies emerging from the Lahaina disaster. The wildfires have revealed a crisis for utilities, the insurance industry, and housing. His bill addressing all three received key votes Thursday.
But one bill has gotten less attention.
House Bill 2700 would establish a state wildfire fund with enough money to immediately pay for property damage from another fire. If the fire was large enough he would damage more than 500 buildings.
State Sen. Jarrett Keokalor, chairman of the Consumer Protection Committee, said the Maui wildfires have highlighted important gaps that need to be addressed.
“Maui is in its seventh month of recovery, but we still have many challenges getting back on track,” he said. “So the idea is that if another catastrophe occurs in the future, there will be a pool of funds available to immediately begin recovery.”
It functions like the One Ohana Fund for victims of the Maui fires and is made up of donations from the state, HECO, and other landowners and businesses.
At a recent public hearing, HECO said it wanted $1 billion in the fund. One-third of him is from HECO, one-third from the state, and the rest from other organizations.
Special Section: Maui Wildfire Disaster
HECO said the fund will give investors further confidence in the company’s future.
“We must address the financial uncertainty caused by wildfire risk and regain access to capital markets,” said Jason Benn, HECO’s senior vice president and chief information officer.
But there are concerns that the fund will use money provided by taxpayers and utility customers to protect those who started the fires from lawsuits.
“If donors add to the fund, Hawaii will for the first time set a dangerous precedent that protects donors from negligence,” said Evan Ohe of the Hawaii Association for Justice.
Continuing coverage:
The Senate Consumer Protection Committee approved the bill Thursday without clarifying the size of the fund or where the money would come from.
“HECO can’t go out of business. We need someone to provide power to the people of Hawaii,” Keokallol said.
“The real concern here is: What is the impact on consumers? How much will our electricity bills change at the end of each month? And what do we get out of it? ”
The committee also approved a House bill to establish a fund to stabilize property insurance and a bill to allow counties to phase out some short-term vacation rentals.
The House and Senate agree on the concept, but the devil lies in the details that must be ironed out before the end of the session.
Copyright 2024 Hawaii News Now. All rights reserved.
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