The typical Hawaiian Electric Co. customer on O'ahu will see their monthly bill increase by $6.77 under a new 5.2 percent rate hike proposed by HECO.

HECO said yesterday that it filed a rate increase proposal with the state Public Utilities Commission, which aims to raise $97 million in annual revenues for the local utility.

HECO customers already pay some of the highest electricity bills in the nation. And the proposed new increase comes seven months after HECO received a 4.96 percent, or $70 million, rate increase.

"You gotta be kidding," said Wai'anae resident David Hammond, whose monthly electricity bill for his three-bedroom home is about $250. "Everybody is paying too much."

HECO said it needs the rate increase to help pay for its new $164 million biodiesel power plant at Campbell Industrial Park and other enhancements to its system. The Campbell unit, which will generate about 110-megawatts, is expected to be in service by August 2009.

The rate increase requires the approval of the Public Utilities Commission. If it gets the PUC's approval, HECO said the new rates will go into effect in mid-2009 at the earliest.

"There's never a good time to ask for a rate increase, but we have a responsibility to meet the current and future energy needs of our residential and business customers on O'ahu," said Robbie Alm, HECO's executive vice president for public affairs.

According to HECO, the rate increase has several tiers. Most residential consumers — those that don't use as much electricity as HECO's large customers — will see an increase of 3 percent to 4 percent.

HECO said the typical residential household using 600 kilowatt-hours a month will see their monthly bill increase from $176.85 to $183.62.

The rate increase doesn't cover the rising cost of fuel, which has doubled in the past year. Those fuel costs are calculated separately and are passed on directly to customers through a fuel surcharge.

"Our customers pay the actual cost of the fuel used to make electricity, not a penny more," Alm said.

"We don't want to make a profit on fuel but we know that doesn't make the current situation any easier. Hawai'i needs to move away from oil and we have a central role to play in that move."

Shares of HECO's parent, Hawaiian Electric Industries Inc., rose 10 cents to close at $24.88 on the New York Stock Exchange yesterday.

In addition to the Campbell Industrial power plant, HECO said the rate increase will pay for: