KAHULUI, Maui — Maui Electric Co. is seeking a 5.3 percent rate increase that would boost the electricity bill for a typical Maui household by almost $8 per month.

The utility said that under a new tiered rate structure submitted yesterday to the Public Utilities Commission, customers who conserve electricity during peak evening usage times would see smaller increases, ranging from 2 percent to 4.4 percent.

The proposal for voluntary time-of-use residential rate options would provide lower rates for off-peak times when power generation reserves are greater, and higher rates for peak usage times, generally between 6 and 8 p.m., said MECO spokeswoman Kau'i Awai-Dickson.

Most of the $18.9 million in additional revenue from the proposed rate increase would pay for the two new units at the Ma'alaea Generating Station, said MECO president Ed Reinhardt. The first unit, Unit 19, was installed in September 2000, and the second, Unit 18, in October, providing an increase of 58 megawatts of capacity, he said.

Unit 18 does not use fuel oil, producing power from the waste heat of the Unit 17 and Unit 19 combustion turbines.

The additional revenue also would cover replacement and upgrading of aging equipment, Reinhardt said.

If the new rate structure is approved by the PUC, a typical Maui household consuming 600 kilowatt hours a month would see an increase of $7.78 per month, for a total bill of $179.47.

On Moloka'i, the increase for a typical household using 500 kwh would be $8.69 per month, for a total bill of $182.26. On Lana'i, 500 kwh could cost $175.02 per month, an increase of $7.63.

"We understand that any increase is difficult for our customers," Reinhardt said in a statement. "However, it is our job to not only meet the growing demand for electricity, but to also ensure that the service we provide is reliable. We need this increase to maintain the level of service our customers deserve."

MECO last filed for a rate increase in 1998, winning PUC approval for an 8.2 percent hike. The PUC is expected to hold a public hearing on the power company's latest proposal sometime in the spring.