HILO, Hawai'i — Hawaii Electric Light Co. heard some furious objections last night to its proposal for an electricity rate increase on the Big Island from consumers who already pay some of the highest electricity rates in the nation.

Big Island Mayor Harry Kim and two nonprofit social service providers praised the HELCO rate increase plan because it would offer a price break to some poor consumers, and would encourage conservation.

But a half-dozen other rate payers objected to the HELCO rate increase proposal, saying they already pay too much. Some called the rate increase proposal "ridiculous."

"You want to raise 'em because you want more money in you folks' pocket? What about my pocket?" said Kaumana resident Doreen Kaneko, who walks with a cane. "You gotta think about people on disability who get only one check a month, and gotta spread 'em."

Hawaiian Paradise Park resident Pam Jones said that with prices going up for everything from gasoline to rent, an electricity rate increase would present a hardship.

"I just want to let you know that me as a consumer, and the vast majority of people who have to pay bills on this island, we're strapped," Jones said.

HELCO has applied to the state Public Utilities Commission for a 9.2 percent overall rate increase, which would generate an extra $30 million a year for the utility.

Under the request filed with the state Public Utilities Commission in May, HELCO is also asking to restructure its rates to encourage consumers to conserve. Under the proposal, the largest residential power users would also pay the highest rates.

If the PUC approves the rate structure, the utility predicts most Big Island residents would see rate increases ranging from 2.6 percent to 7.6 percent. However, the largest residential power users would see rate increases of almost 15 percent, depending on how much power they use.

Under HELCO's proposal, Big Island business customers would see rate increases ranging from 7 percent to 10.5 percent. However, the proposed rate structure to encourage conservation would not apply to business customers.

Under the "block rate" structure for HELCO's business customers, Big Island businesses pay lower rates as their electricity use goes up. HELCO President Warren Lee said that rate structure for businesses encourages economic growth, and said business customers already have ample incentives to conserve.

HELCO has a total of about 75,000 customers, and the utility says the rate increase is necessary to recoup the cost of improvements to the electrical grid.

Those improvements include about $100 million to install two new combustion turbine generators at the Kona plant at Keahole that began making power in 2004.

"We know that a rate increase is tough for everyone, and we held off on asking for one for as long as possible," Lee said. If approved, the new rates could take effect in early next year.

About 60 people turned out for the hearing on the HELCO rate increase. The PUC also accepted comments at the meeting on a Young Brothers Inc. proposal to discontinue less-than-container-load shipping to and from Kahului on Jan. 1.

The statewide average cost of electricity in Hawai'i is the highest in the nation. Big Island consumers now pay higher electric rates than on Maui and O'ahu, but lower rates than on Kaua'i, Moloka'i and Lana'i.

Reach Kevin Dayton at kdayton@honoluluadvertiser.com.