HECO to seek increase in rates

It cites equipment investments and higher expenses

Hawaiian Electric Co. Inc. has given notice that it will ask the state Public Utilities Commission for permission to raise rates again for its 295,000 customers on Oahu.

The utility company plans to apply for a rate increase on or after July 1, citing higher expenses and investments in a new plant and equipment to ensure reliable service, according to a HECO notice filed Thursday.

HECO said it has not determined the amount or timing of the proposed rate increase. The utility's latest increase was granted late last year.

Lynne Unemori, vice president of corporate relations, said the PUC requires it to file such notices at least two months before it files for permission to raise rates.

The main reason behind the filing is a planned $164 million power plant HECO is building at Campbell Industrial Park.

The new renewable biodiesel fuel unit, which will be used to cover electrical demand during peak hours, is expected to come online by Aug. 1, 2009.

Catherine Awakuni, executive director of the state Department of Commerce and Consumer Affairs' Division of Consumer Advocacy, said the agency will need to review the upcoming application before assessing whether it is reasonable, she said.