The Public Utilities Commission has accepted a settlement between Hawaiian Electric Company and the Hawaii Division of Consumer Advocacy, resulting in HELCO canceling its request for a rate increase on the Big Island.

HELCO had been seeking a 4.2% rate hike for Hawaii Island customers that would have generated an additional $19.8 million in revenue for the utility company.

The state’s consumer advocate had been fielding customer concerns over how the planned rate hike would affect already high electrical prices on the Big Island.

HELCO’s parent company will also stop its attempt to recoup from customers part of the $40 million it spent on a biofuel generation system at Campbell Industrial Park.

The company has also agreed to delay filing its next rate increase, which would have been sought in 2013.