Hawaiian Electric filed with the Public Utilities Commission for a rate increase that would add $170 million a year in revenue. The increase phases in over two years: $125 million in 2027 and another $45 million in 2028. If approved, the new base rates lock in until 2032.
Hawaii already has the highest commercial electricity rates in the country. The statewide commercial rate sits around 48 cents per kWh, compared to a national average near 18 cents. Residential customers pay even more, at roughly 41 to 52 cents per kWh depending on the island.
The proposed increase works out to a 5% bump on Oahu, about $8 more per month for a typical residential customer in 2027 and $3 more in 2028. Hawaii Island customers would see 5.8% total. Maui County faces the steepest increase at 6.4%.
HECO says the increases cover inflation, rising insurance premiums, and costs tied to closing fossil fuel plants by 2035 under Governor Josh Green's executive order. The company is also recovering from Lahaina: customers are already paying a $4-per-month wildfire surcharge to fund a $500 million risk-reduction loan. That surcharge stays on your bill for years regardless of what the PUC decides.
More than 260 customers had filed comments opposing the increase before the September hearings. Environmental attorney Marti Townsend, representing Local Power Hawai'i, noted that grid outages are increasing while HECO asks for more money.
The PUC still has to rule. But businesses running tight margins on the energy-intensive side of their operations should model the 5% Oahu increase into 2027 budgets now. Commercial customers with rooftop solar or storage already have some insulation. Everyone else is waiting on the commission.