announced yesterday.

The company has applied to the Price Control Commission for permission to increase its rates by 2.75 percent from January 1.

The increase would mean about $3 a month more for the average customer using 560 kilowatts.

The company also wants rate increases of 3.5 percent in both 1995 and 1996.

Belco spokeswoman Ms Linda Smith said rates had not been increased for two years.

The company needed to replace old engines, restore other engines and improve other equipment.

It was getting less income from military bases. It was estimated closures and cutbacks by Canada and the US would mean $2.5 million less income in 1994.

At the same time costs were going up, Ms Smith said.