HAWAIIAN ELECTRIC INDUSTRIES REVISES 2013 EARNINGS GUIDANCE BASED ON MECO 2012 TEST YEAR FINAL DECISION AND ORDER; PUC APPROVES

HAWAIIAN ELECTRIC INDUSTRIES REVISES 2013 EARNINGS GUIDANCE BASED ON MECO 2012
  TEST YEAR FINAL DECISION AND ORDER; PUC APPROVES ANNUAL DECOUPLING FILINGS

PR Newswire

HONOLULU, June 3, 2013

HONOLULU, June 3, 2013 /PRNewswire/ --Hawaiian Electric Industries, Inc.
(NYSE: HE) (HEI) today announced that as a result of the Maui Electric
Company, Limited (MECO) 2012 test year final rate case decision and order
(D&O) issued by the Public Utilities Commission of the State of Hawaii (PUC)
on May31,2013, it has lowered its 2013 earnings per share (EPS) guidance
from its previous range of $1.58 to $1.68 to a revised range of $1.52 to $1.62
on a GAAP basis. Excluding the refund of MECO revenues attributed to 2012,
the EPS guidance range would be $0.02 higher or $1.54 to $1.64. The
corresponding revision to the EPS guidance for Hawaiian Electric Company, Inc.
(HECO) and its subsidiaries reduces the previous range from $1.23 to $1.29 to
a revised range of $1.17 to $1.23 on a GAAP basis (or $1.19 to $1.25 excluding
the $0.02 discussed above). The revised guidance assumes $7.8 million lower
MECO annual revenues in accordance with the MECO final D&O. Of this amount
$1.5 million relates to pension and other postretirement benefits (OPEB) which
will be offset by lower pension expense (as a result of the pension tracking
mechanism). The EPS guidance assumptions previously disclosed in HEI's fourth
quarter 2012 and first quarter 2013 earnings call remain unchanged.

HECO is currently evaluating the impact of the MECO final D&O to the
previously disclosed guidance for HECO's consolidated structural gap of 80 to
110 basis points between its allowed return on average equity (ROACE) and the
ROACE it actually achieves. An update, if any, will be provided in the HEI
second quarter 2013 earnings call and webcast.

MECO 2012 TEST YEAR RATE CASE
On May 31, 2013, the PUC issued a final D&O in the MECO 2012 test year
proceeding. The final D&O approved an increase in annual revenues of $5.3
million, which is $7.8 million less than the interim increase that had been in
effect since June1, 2012 (including the $3.4 million of MECO Revenue
Adjustment Mechanism (RAM) revenues approved in the "Annual Decoupling
Filings" section below, the net impact to annual revenues is $4.4 million less
than the interim increase). Reductions from the interim D&O relate primarily
to:

(in millions)
Lower ROACE                                      $4.0
Customer Information System (CIS) expenses       0.3
Pension and OPEB expense based on 3-year average 1.5
Integrated resource planning (IRP) expenses      0.9
Study costs                                      1.1
Total adjustment                                 $7.8

According to the PUC, the reduction in the allowed ROACE from the stipulated
ROACE of 10% to the final approved ROACE of 9% is composed of 0.5% allocation
to lower interest rates and 0.5% for over curtailment of renewable energy.

The reduction in the pension and OPEB expense is due to applying a three-year
average in the calculation of pension costs for the purpose of the 2012 test
year. This is not a PUC decision to change the pension and OPEB tracking
mechanisms, although the PUC emphasizes the need to evaluate alternatives to
decrease or limit the growth in employee benefit costs.

The PUC also continues MECO's existing energy cost adjustment clause (ECAC)
and power purchase adjustment clause (PPAC) design. The PUC will consider
HECO, Hawaii Electric Light Company (HELCO), and MECO's (the Hawaiian Electric
Companies) future actions to reduce fuel costs and increase use of renewable
energy as it continues to review this matter in the future.

Since the final rate increase is lower than the interim increase currently in
effect, MECO will refund to customers approximately $8.1 million, which
includes interest accrued since June1, 2012, the date on which interim rate
increases were previously implemented.

A summary of the interim D&O in effect and final D&O is as follows:

                                  InterimD&O       FinalD&O

                                  6/1/2012          5/31/2013
                                  $13.1 million     $5.3 million
Revenue increase
                                  (3.2% increase)  (1.3% increase)
ROACE (%)                         10.00 %           9.00 %
Common equity capitalization (%)  56.86 %           56.86 %
Return on average rate base (%)   7.91 %            7.34 %
Average rate base amount          $393 million      $393 million

The PUC also directed that, within 30 days from the issuance date of the final
D&O, MECO file documentation regarding the re-setting of its target heat rate
to take into account the operation of the Auwahi wind farm, as well as make
its curtailment information readily available to the public on its website.
The PUC also directed that, within 90 days from the issuance date of the final
D&O, MECO file a System Improvement and Curtailment Reduction Plan. MECO
continues to review the D&O and is considering what further action, if any, it
may take.

ANNUAL DECOUPLING FILINGS
On May 31, 2013, the PUC approved the revised annual decoupling filings for
tariffed rates for HECO, HELCO and MECO that will be effective from June 1,
2013 through May 31, 2014. The revised tariffed rates include: (1) the
incremental RAM adjusted revenues (the components of which are shown below),
(2) the accrued earnings sharing credits to be refunded, and (3) the amount of
the accrued Revenue Balancing Account (RBA) balance as of December31, 2012
(and associated revenue taxes) to be collected. The amounts approved as noted
below reflect the Hawaiian Electric Companies' agreements with the position of
the Consumer Advocate which are not substantially different than the amounts
filed by the Hawaiian Electric Companies in March 2013.

(inmillions)                                             HECO    HELCO  MECO
Annual incremental RAM adjusted revenues
Operations and maintenance (O&M)                          $ 3.9  $ 0.9  $1.0
Invested capital                                          27.5    1.2    2.4
Total annual incremental RAM adjusted revenues            $ 31.4  $ 2.1  $3.4
Accrued earnings sharing credits to be refunded           $(2.6)  $—     $—
Accrued RBA balance (and associated revenue taxes) to be  $55.4   $4.9   $5.8
collected

Also on May 31, 2013, as provided for in its original order issued in 2010
approving decoupling and citing three years of implementation experience for
HECO, the PUC opened an investigative docket to review whether the decoupling
mechanism is functioning as intended. The PUC affirmed its support for the
continuation of the sales decoupling (RBA) mechanism and stated its interest
in evaluating the RAM to ensure it provides the appropriate balance of risks,
costs, incentives and performance requirements, as well as administrative
efficiency and whether the current interest rate applied to the outstanding
RBA balance is reasonable.

The Hawaiian Electric Companies and the Consumer Advocate are named as parties
to this proceeding and are directed to file a statement of position no later
than twenty days from the order (i.e., by June 20, 2013).

HEI and HECO intend to continue to use HEI's website, www.hei.com, as a means
of disclosing material information, as well as other important information.
Such disclosures will be included on HEI's website in the Investor Relations
section. Accordingly, investors should routinely monitor such portions of
HEI's website, in addition to following HEI's, HECO's and/or American Savings
Bank, F.S.B.'s (American) press releases, HEI's and HECO's Securities and
Exchange Commission (SEC) filings and HEI's public conference calls and
webcasts. Also, at the Investor Relations section of HEI's website, investors
may sign up to receive e-mail alerts (based on each investor's selected
preferences). The information on HEI's website is not incorporated by
reference in this document or in HEI's and HECO's SEC filings unless, and
except to the extent, specifically incorporated by reference. Investors may
also wish to refer to the PUC website at dms.puc.hawaii.gov/dms in order to
review documents filed with and issued by the PUC. No information on the PUC
website is incorporated by reference in this document or in HEI's and HECO's
SEC filings.

HEI supplies power to approximately 450,000 customers or 95% of Hawaii's
population through its electric utilities, HECO, Hawaii Electric Light
Company, Inc. and Maui Electric Company, Limited and provides a wide array of
banking and other financial services to consumers and businesses through
American, one of Hawaii's largest financial institutions.

FORWARD-LOOKING STATEMENTS
This release contains "forward-looking statements," which include statements
that are predictive in nature, depend upon or refer to future events or
conditions, and usually include words such as "expects," "anticipates,"
"intends," "plans," "believes," "predicts," "estimates" or similar
expressions. In addition, any statements concerning future financial
performance (e.g., EPS guidance), ongoing business strategies or prospects or
possible future actions are also forward-looking statements. Forward-looking
statements are based on current expectations and projections about future
events and are subject to risks, uncertainties and the accuracy of assumptions
concerning HEI and its subsidiaries, the performance of the industries in
which they do business and economic and market factors, among other things.
These forward-looking statements are not guarantees of future performance.

Forward-looking statements in this report should be read in conjunction with
the "Forward-Looking Statements" and "Risk Factors" discussions (which are
incorporated by reference herein) set forth in HEI's Quarterly Report on Form
10-Q for the quarter ended March 31,2013 and HEI's subsequent periodic
reports that discuss important factors that could cause HEI's results to
differ materially from those anticipated in such statements. These
forward-looking statements speak only as of the date of the report,
presentation or filing in which they are made. Except to the extent required
by the federal securities laws, HEI, HECO, American and their subsidiaries
undertake no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.

Contact: Shelee M.T. Kimura
         Manager, Investor Relations & Telephone: (808) 543-7384
         Strategic Planning            E-mail: skimura@hei.com

(Logo: http://photos.prnewswire.com/prnh/20110411/LA80136LOGO)

SOURCE Hawaiian Electric Industries, Inc.

Website: http://www.hei.com
 
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