Electric utility net income for the first quarter was $21.0 million , up from $12.4 million a year earlier, the company said in a release yesterday. Higher kilowatthour sales added $11 million to revenues for the quarter compared to the first quarter of 2005, and were due to an increase in the number of customers and new construction loads, the company said. In addition, interim rate relief for our Oahu utility granted in late September 2005, added $9 million to first quarter revenues.

"Although operations and maintenance expenses were relatively flat quarter-over-quarter, we expect the overall trend of higher expense levels to continue due to load growth and increased retirement benefits expenses," said Robert F. Clarke, HEI chairman, president and chief executive officer.

Clarke noted that although first-quarter earnings were up significantly from a year ago, they were only slightly above 2004's first quarter earnings which were $30.9 million or 40 cents per share.

"Utility earnings were up quarter-over-quarter, but essentially back to 2004 levels, helped by increased quarter-over-quarter kilowatthour sales and interim rate relief for our Oahu utility," Clarke said.

Earnings at HEI's American Savings Bank subsidiary fell to $16.8 million in the first quarter from $17.8 million in the same period a year earlier.

"At our bank, loans and deposits grew in the first quarter, although bank earnings quarter-over-quarter were down modestly," Clarke said. "While credit quality at our bank remains excellent, first quarter 2005 results included a $3.1 million reversal of the allowance for loan losses that did not recur in the first quarter of 2006."