HECO Exhibit 18.2
                                                               -----------------
[KPMG LLP letterhead]

                                                                    May 12, 2000

The Board of Directors
Hawaiian Electric Company, Inc.
Honolulu, Hawaii

Ladies and Gentlemen:

We have been furnished with a copy of Form 10-Q of Hawaiian Electric Company,
Inc. for the three months ended March 31, 2000, and have read the Company's
statements contained in note 2 to the consolidated condensed financial
statements included therein.  As stated in note 2, the Company changed its
method of calculating the market-related value of the plan assets by including a
15% range around the fair value of such assets (i.e., 85% to 115% of fair
value).  If the market-related value is outside the 15% range, then the amount
outside the range will be recognized immediately in the calculation of annual
net periodic benefit cost.  If the market-related value remains within the 15%
range, the Company will continue to amortize the difference over future years
using the amortization method previously used.  The Company states that the
newly adopted accounting principle is preferable in the circumstances because
the new method results in calculated asset values of the plans that more closely
approximate fair value, while still mitigating the effect of annual fair value
fluctuations. In accordance with your request, we have reviewed and discussed
with Company officials the circumstances and business judgment and planning upon
which the decision to make this change in accounting principle was based.

We have not audited any consolidated financial statements of Hawaiian Electric
Company, Inc. as of any date or for any period subsequent to December 31, 1999,
nor have we audited the information set forth in the aforementioned note 2 to
the consolidated condensed financial statements; accordingly, we do not express
an opinion concerning the factual information contained therein.

With regard to the aforementioned accounting change, authoritative criteria have
not been established for evaluating the preferability of one acceptable method
of accounting over another acceptable method.  However, for purposes of Hawaiian
Electric Company, Inc.'s compliance with the requirements of the Securities and
Exchange Commission, we are furnishing this letter.

Based on our review and discussion, with reliance on management's business
judgment and planning, we concur that the newly adopted method of accounting is
preferable in the Company's circumstances.


                               Very truly yours,

                                  /s/ KPMG LLP