First Maui Electric Co. rate increase in 6 years approved

The state Public Utilities Commission issued an interim decision today approving a 3.8 percent base-rate hike by Maui Electric Co. that will mark the utility’s first increase in more than six years.

The typical Maui monthly residential bill for 500 kilowatt-hours will go up by $5, effective Aug. 23. On Lanai, a typical monthly residential bill for 400 kWh will increase by $5 and on Molokai by $4.62.

The 3.8 percent increase, which will generate about $12.4 million in annual revenue, will help pay for operational improvements, including system upgrades to increase reliability, improve customer service, and integrate more renewable energy.

The interim rate is less than the company’s original request last October for a 9.3 percent increase, or $30 million.