Hawaiian Electric Industries Earnings Call Insights: RAMs and Structural Lag
Hawaiian Electric Industries (NYSE:HE) recently reported its first quarter earnings and discussed the following topics in its earnings conference call.
Charles Fishman – Morningstar: On the RAMs, at this point, going forward then they will always be filed in March and effective in June as part of that settlement, is that all three?
Constance H. Lau – President and CEO: For Oahu, the RAMs are always filed in March and effective June 1.
Charles Fishman – Morningstar: Okay. I thought something had changed with the settlement, but it appears not. And then on the HELCO – I’m sorry, go ahead.
Constance H. Lau – President and CEO: Could you hold on just one sec? Charles, I’m sorry, we were debating what question you had actually asked and let me just state what it is. So the filings are always done March 1, effective June 1 – I’m sorry, March 31. Going forward, in 2014 through 2016 for the Oahu utility for that particular cycle, it will be effective January 1.
Charles Fishman – Morningstar: That was the one that changed with this settlement, correct?
Constance H. Lau – President and CEO: Yeah, that’s correct. So that is now effective January 1, although still the cash collection begins on June 1.
Charles Fishman – Morningstar: Then on the statement that HELCO will – ROE will likely underperform the rest of this year and next year. But do you see improvement over the 6.3% just because of the reduction in O&M et cetera?
Constance H. Lau – President and CEO: I’ll let Dick answer that…