HAWAIIAN ELECTRIC INDUSTRIES UTILITY SUBSIDIARY RECEIVES RATE INCREASE
HAWAIIAN ELECTRIC INDUSTRIES UTILITY SUBSIDIARY
RECEIVES RATE INCREASE
HONOLULU, Oct. 5 /PRNewswire/ -- Hawaiian Electric Industries, Inc. (NYSE: HE) announced today that its electric utility subsidiary serving the island of Hawaii received a final decision from the Hawaii Public Utilities Conmmission authorizing a $3.9 million increase in annual revenue, $523,000 of which takes effect Oct. 9. The increase for Hawaii Electric Light Company, Inc. (HELCO) is based on a 13.0 percent return on common equity. The $3.9 million total includes approximately $3.2 million in previously authorized interim increases and a pending union wage increase. The commission's decision left open the possibility of future adjustments.
"We are pleased with the commission's continuing support of our utilities' efforts to deliver electricity to the growing communities in our service territory," said Robert F. Clarke, HEI president and chief executive officer. "The HELCO decision essentially completes the second rate case this year for an HEI utility."
HELCO applied for a rate increase of $7.1 million, based on a 1992 test year, on July 31, 1991. Interim increases totaling $3.2 million were effective July 1 and Aug. 1. The original request included approximately $1.9 million to cover the increased cost of nonpension postretirement benefits. The commission is expected to decide that issue in a separate generic docket later this year. Other rate adjustments could be made based on the results of a service reliability study.
In June, HEI's electric utility subsidiary serving the island of Oahu received a $124.3 million increase in annual rates, also subject to upward adjustment based on the commission's ruling on nonpension postretirement benefits.
Maui Electric Company, Limited, the HEI electric utility subsidiary serving the islands of Maui, Lanai and Molokai, has a pending request to increase rates by approximately $18.3 million annually in several steps through 1993. Most of the proposed increase reflects the costs of adding a 56-megawatt combined cycle unit on Maui in three phases during 1992 and 1993.
Hawaiian Electric Industries, Inc. is a Hawaii-based electric utility holding company delivering essential services to the people of Hawaii through its electric utility, banking, property-casualty insurance, maritime freight transportation and real estate development subsidiaries.
(Note: The PUC-approved capital structure and weighted cost of capital for HELCO's 1992 test year rate case are listed below.)
Cost rate Weighted cost
Short term debt 3.2 percent 5.0 percent 0.2 percent
Long-term debt 41.0 percent 7.9 percent 3.2 percent
Preferred stock 6.9 percent 9.5 percent 0.7 percent
Common equity 48.9 percent 13.0 percent 6.3 percent
Composite cost 100.0 percent 10.4 percent
/CONTACT: Gary Sharpe of Hawaiian Electric Industries,
808-543-7385, or (fax) 808-543-7966/
CO: Hawaiian Electric Industries, Inc.
SU: 483 10-05-92 07:59 EDT TS -- NYON1 -- 6453 10/05/92 09:38 EDT