Hawaiian Electric Industries Inc. said its utility is ahead of schedule to generate 15 percent of its electricity from renewable sources by 2015.
The holding company for the state’s largest utility and American Savings Bank gave a progress report on its clean-energy target Thursday while announcing that second-quarter earnings rose 4.6 percent from the year-earlier quarter.
Subsidiary Hawaiian Electric Co., which provides electrical service in Honolulu, Maui and Hawaii counties, was generating a record of nearly 18 percent of energy needs from renewable sources at midyear, HEI said. In Hawaii County, renewable energy usage was 49 percent at midyear, climbing to as high as 70 percent at night. In Maui County, renewable energy usage was 28 percent, while Honolulu County was 11 percent.
"While Hawaii’s utility customers have had to contend with brief oil price spikes in the past, we are currently in a prolonged period of high prices," HEI President and CEO Connie Lau said on an earnings conference call.
"Thus, our highest priority is to find ways to lower customer bills as quickly as possible."
While positive strides were made with renewable energy, it was gains at American Savings Bank, the third largest in the state, that offset lower earnings at the utility and enabled HEI to top analysts’ earnings forecast.
HEI earned $40.6 million, or 41 cents a share, during the April-through-June period to beat the consensus estimate of 38 cents. A year ago HEI made $38.8 million, or 40 cents a share.
Revenue, however, fell 6.7 percent last quarter to $796.7 million from $854.3 million.
HECO’s net income of $28.7 million was down 2.3 percent from $29.4 million in the year-ago quarter. The decline was primarily due to an $8.8 million customer refund that resulted in $5 million in decreased after-tax revenue at the Maui utility. The refund followed a decision by the state Public Utilities Commission to reduce an interim rate increase in that county.
American Savings Bank, which separately reported its earnings July 30, had net income of $15.9 million, up 12.5 percent from $14.2 million in the second quarter of 2012.
"The bank’s earnings continued to be challenged by the continued low interest rate environment and increasingly restrictive regulations, including regulation on fee income," Lau said. "In response, the management team is working hard to deliver prudent loan growth, strong risk management and efficient operation. And as a result, the bank has been a steady performer and again delivered strong profitability metrics and stable earnings."
HEI shares closed up 36 cents, or 1.4 percent, at $26.81 on the New York Stock Exchange. The results were released Thursday after the market closed.
