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Jul 09, 2023

How Did the Maui Fire Start? Why Hawaii’s Power Lines Are Suspect

There’s still no official cause for the Aug. 8 fire that destroyed the seaside Hawaiian town of Lahaina, one of the deadliest wildfires in US history. But attention is focusing on whether power lines owned by Hawaiian Electric Industries Inc. sparked the flames, which were fanned by winds fierce enough to knock down wires and poles. Electrical lines have a tragic history of triggering fires during wind storms, and Maui County has already sued the utility, saying fallen power lines started a grass fire that ultimately consumed the town. The company argues the county itself bears responsibility for the disaster.

1. What caused the Maui fire?

We don’t know. Many things can spark a blaze when winds are strong and vegetation is dry. Wildfires have been started by cigarette butts, trucks dragging chains along a road, and in one infamous case, pyrotechnics at a gender-reveal party. But Maui County, in its suit, blames Hawaiian Electric’s power lines, and videos a Lahaina resident posted online the morning the fire erupted appear to show a downed electrical line on the edge of town sparking in the midst of burning grass. The company says the early morning fire “appears to have been caused by power lines” but argues that it was quickly put out by firefighters, with no smoke or flames visible when the utility’s workers arrived in early afternoon to make repairs. Firefighters had left the scene by the time the utility says its crew spotted another fire 75 yards away, which quickly spread out of control. The county also blames the utility for triggering the Kula Fire, which broke out the same day in Maui’s Upcountry region.

2. How do power lines cause wildfires?

Several ways, usually involving wind. Strong enough gusts can tear down lines or knock over poles. They can also topple nearby trees or send branches flying into power lines, causing sparks. Even when lines don’t fall, winds can cause them to sway into each other, again creating sparks and sending molten metal into the grass below.

3. What’s the history?

Power lines have repeatedly sparked deadly fires across the western US, particularly in California. The state’s largest utility, PG&E Corp., was driven into bankruptcy in 2019 after several devastating, wind-driven fires blamed on the company’s equipment, including the 2017 wine country fires north of San Francisco and the 2018 Camp Fire, which leveled the town of Paradise and killed 85 people. Plaintiff law firms now working in Maui represented fire victims in a $13.5 billion settlement with PG&E.

4. How can fires from power lines be prevented?

Utilities have long trimmed trees near power lines. But the string of deadly western fires, which also were fueled by years of drought, have forced the companies to try other tactics. They’ve started placing more power lines underground, and using protective coatings on overhead lines. In California, Nevada and Oregon, utilities now also shut off power lines in advance of high winds during dry conditions. The practice, know as Public Safety Power Shutoffs, angers customers but likely prevents fires.

5. What does it mean for Hawaiian Electric?

Investor worries about Hawaiian Electric’s potential role in starting the Maui fires, which killed at least 115 people, triggered a selloff of the company’s stock. On Aug. 14, the company’s shares tumbled in their biggest one-day loss in 19 years. Guggenheim Securities warned in a research note that given the size of the company — with a market capitalization of about $1.5 billion — and the possible liabilities if power lines started the fires, “it’s hard for us to imagine if the company will emerge from this tragic incident in its current form.” Some type of government intervention, such as municipalization, could be the result, the New York-based investment research firm said.

(Updates first and second paragraphs with new details of lawsuits and statements by Maui County and Hawaiian Electric Industries Inc.)

More stories like this are available on bloomberg.com

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