Maui, Molokai and Lanai customers of Hawaii Gas would all pay the same rates on their residential bills if the company gets approval to increase its rates statewide.

The Gas Co., doing business as Hawaii Gas, has asked the state Public Utilities Commission for an average statewide increase of about 15 percent in utility rates, which the company hopes will generate $15 million more in revenue.

That means a typical residential utility bill would increase by $14.50 per month on Maui and $4.55 on Molokai, while decreasing by an average of $4.15 per month on Lanai.

Company officials said the reason they decided to “harmonize” rates across Maui County was so that projects — such as adding storage to the Lanai and Molokai systems — would have less of an impact on residents’ overall bills.

“They’re relatively small-sized systems,” said Tom Kobashigawa, director of regulatory affairs for Hawaii Gas. “So if you make an addition or capital expenditure it has a huge effect on rates. Rather than have that happen, we made Molokai and Lanai . . . part of a bigger system, the Maui system, which has cheaper rates in general.”

Hawaii Gas has 509 utility customers on Maui, 79 on Molokai and 23 on Lanai, spokesperson Scott Kim said. The current average residential bill is $80 for Maui customers, about $75 for Lanai and $64 for Molokai.

The average commercial customer bill on Maui is $1,400 and would increase by 12.2 percent if Hawaii Gas’ request is approved. Kim said the changes wouldn’t impact commercial customers on Molokai and Lanai because those customers use propane. The rate change would only affect utility customers, “that is, those that receive gas energy through an underground pipeline system. Non-utility customers with propane tanks are not affected,” Kim said.

Any changes would go into effect in mid-2018.

Hawaii Gas is a government-franchised public utility serving about 35,000 utility customers statewide, according to its application. The company manufactures synthetic natural gas for utility customers on Oahu and distributes liquefied petroleum gas to utility, tank and bottled gas customers on all islands.

Alicia Moy, company president and chief executive officer, told the state Public Utilities Commission in written testimony that Hawaii Gas hasn’t sought a rate change since 2008.

That’s partly why Hawaii Gas is looking for an increase now. The company also has a number of projects in the works that it hopes to fund with the additional revenue. Moy said Hawaii Gas is breaking ground on a new renewable natural gas project at the Honouliuli Wastewater Treatment Plant on Oahu, “the first biogas project of its kind in the state.”

Hawaii Gas also wants to provide its synthetic natural gas plant on Oahu with 30 percent liquefied natural gas, which is “much cleaner,” Kim said.

“These projects are all with an eye toward the future — burning cleaner fuels and reducing our dependence on foreign oils,” Kim explained.

Kim added that Hawaii Gas is considering biogas projects on other islands, but it doesn’t have anything planned for Maui.

No Maui residents testified on the rate increases at a hearing Wednesday evening at the Velma McWayne Santos Community Center. Hearings have been taking place across the state, including one Thursday on Lanai. A final hearing is scheduled for Molokai at 3 p.m. Wednesday at Kulana ‘Oiwi in the Office of Hawaiian Affairs conference room.

The commission will need to render a decision in May, said Delmond Won, commission executive officer.

Written comments may be sent to the commission at 465 S. King St., Room 103, Honolulu 96813 or emailed to puc.comments@hawaii.gov. Comments should refer to docket No. 2017-0105, and they should include the author’s name and any group or organization represented.

The public can review Hawaii Gas’ application by visiting dms.puc.hawaii.gov/dms/ and typing the docket number into the search bar. Copies also may be reviewed by contacting the commission’s Maui District office at 984-8182. Special accommodations for testifiers may be requested in advance by calling the commission’s Honolulu office at (808) 586-2020.Any motions to intervene must comply with commission rules and be filed by Jan. 2.

* Colleen Uechi can be reached at cuechi@mauinews.com.