Those items more than offset a 5 percent rise in revenue driven by gains in the Honolulu company’s electric utility business. During the three months ended Sept. 30, the company — which provides electric power to most Hawai'i residents and owns the state’s third-largest financial institution, American Savings Bank — earned $30.5 million, or 81 cents a share, versus income of $33.5 million, or 92 cents a share in the year-ago period.

Revenue rose to $453.7 million in part because of increased electricity sales from warmer weather and higher residential and Neighbor Island commercial power use. But the gain was offset by an increase in retirement benefit expenses to $5.5 million, compared with $3.4 million in the third quarter of 2002, and a $1.6 million fine from the state Department of Health at two of the company’s Maui generating units for violation of air pollution rules.