State agency rolls back HECO on cost recovery, raise in rate

By Alan Yonan Jr.

POSTED: 01:30 a.m. HST, Jan 29, 2013

~~<p>Hawaiian Electric Co. has agreed to reduce by $60 million the amount of revenue it will seek to recover from ratepayers as a result of a settlement the utility negotiated with the state consumer advocate.</p>
<p>Under the settlement announced Monday, HECO will write off $40 million that it had hoped to collect to help cover the cost of two major projects, a biofuel-fired power plant in Campbell Industrial Park and a new customer information system. The utility also agreed to withdraw its request to raise electricity rates for Hawaii island customers served by its subsidiary Hawaii Electric Light Co. The request was for a rate increase of 4.2 percent, or $19.8 million.</p>
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Hawaiian Electric Co. has agreed to reduce by $60 million the amount of revenue it will seek to recover from ratepayers as a result of a settlement the utility negotiated with the state consumer advocate.

Under the settlement announced Monday, HECO will write off $40 million that it had hoped to collect to help cover the cost of two major projects, a biofuel-fired power plant in Campbell Industrial Park and a new customer information system. The utility also agreed to withdraw its request to raise electricity rates for Hawaii island customers served by its subsidiary Hawaii Electric Light Co. The request was for a rate increase of 4.2 percent, or $19.8 million. Login for more...