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The Honolulu Advertiser
Posted on: Wednesday, May 3, 2006

Interim rate increase pushes HEI income up 34 percent over last year

Advertiser Staff

Hawaiian Electric Industries Inc.'s net income jumped 34 percent during the first quarter 2006 due in part to an interim rate increase plan that added $9 million in revenue. Net income at the company's American Savings Bank subsidiary fell 5.3 percent.


Net income: $32.3 million, up 34 percent from a year ago.

Per-share income: 40 cents, up 33.3 percent from a year ago.

Revenues: $574.9 million, up 21.7 percent from a year ago.

Expenses: $505.8 million, up 21.6 percent from a year ago.

Bank income: $16.8 million, down 5.6 percent from a year ago.


  • Electric utility units earned $21 million, up 69.4 percent from first quarter of 2005 and 5 percent from the first quarter 2004.

  • In September the Public Utilities Commission granted a request for interim rate relief, which added $9 million in revenues.

  • First-quarter earnings at American Savings Bank fell 5.3 percent to $16.8 million. But the comparison was skewed by a $3.1 million loan loss allowance recorded in first quarter 2005 and later reversed.


    "Although first quarter results were up comparable with the same quarter last year, they were only slightly above 2004's first quarter earnings."

    Robert Clarke
    Hawaiian Electric Industries Inc. chief executive officer.


    HECO is waiting for the PUC to rule on a 1.9 percent rate increase to pay for the expansion of its energy-efficiency and energy-conservation programs.

    The company said it expects expenses to continue to grow because of to rising consumer demand and higher retirement benefit costs.

    Under a 20-year plan, the local utility is considering building a100-megawatt power plant at Campbell Industrial Park and a 180-megawatt coal-burning plant.