Yep, as if we didn’t pay enough to live in Hawaii.  Now, Hawaiian Electric Company (HECO) has announced that they are going to increase their rate by 4.96%.  According to the Star Bulletin, the increase will provide the state with an additional revenue of $70 annually.  The rate hike was effective yesterday.

So why this rate hike?  HECO needed the money to invest in new capital projects, but initially wanted to raise the rate to 7.1%, but have settled at 4.96% effective immediately.

I guess 5% isn’t much of a hike, but it’s high enough, especially since we already have to deal with the high cost of gas, milk, and even inflation.  I remember only a few months ago milk at Costco was about $3.25, and now it’s around $4.50.  And with the low paying jobs on Oahu, especially compared to the mainland, and high living costs, people who are living paycheck to paycheck will feel the pain from this 5% hike.

I guess this is still better than the hike that occurred in 1992, when HECO raised their rate by 23.7% (Source: Hawaiian Electric Company).  Just be prepared folks, because everything just gets more and more expensive.  And HECO is still seeking a increase of 5.3%, apparently not satisfied with the 4.96%.  Who knows, maybe in a few weeks, it will be 5.3%.  Again, living in paradise does come with its costs.

• Hawaii’s Jobless Rate at 2%
• Electric Rates May Increase
• Hawaii Well Below National Average in Pay

               
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