Hawaiian Electric Co. is proposing to raise rates by nearly 7 percent, which would be the first increase in base rates on Oahu in nearly six years, the utility said Friday.
Pacific Business News broke the story about the proposal from Hawaiian Electric Co., a subsidiary of Hawaiian Electric Industries Inc. (NYSE: HE), to raise rates, which would help pay for operating costs, including system upgrades to increase reliability, improve customer service and integrate more renewable energy.
The request, which still needs Hawaii Public Utilities Commission approval, is for a 6.9 percent increase in revenues, or $106 million.
If approved, a typical Oahu residential customer using 500 kilowatt hours a month would see an increase on a monthly bill of $8.71 up to $141.03, based on December 2016 bills.
The utility said that thanks to lower fuel prices and cost containment efforts, bills reflecting the new rates, if the full amount were approved today, would still be lower than the average bill in 2015.
Hawaiian Electric said any change in bills would likely not take effect until the second half of 2017 at the earliest, and that the rate filing is part of a required periodic regulatory review.