A small gray box attached to the breaker panel at Bubbies Homemade Ice Cream & Desserts shop on University Avenue holds great hope for store owner Keith Robbins in his quest to tamp down electricity costs and avoid raising prices for customers.

The device made by Power-Save Energy Corp. claims it can help cut up to 25 percent of electricity costs. Robbins said it's worth taking a chance since seeing his electricity bill jump from $6,000 to $7,000 a month to as much as $12,000 for the store and his ice cream factory in Halawa Valley.

"That hurts because that's a lot of money," said Robbins, who has looked at other ways to cut his electricity bill as he deals with other increases, such as escalating shipping costs.

"It's a tough issue and it's not getting any better outside of trying to find another way to freeze ice cream."

Robbins and thousands of other Hawai'i companies are wrestling with similar issues. Just how do they cope with escalating energy costs, not to mention steady gains in health insurance premiums and raw materials? Among the questions are whether they can minimize expenses and cut others. They also are wondering how much of price increases they should absorb and at what point they should raise prices at the risk of losing customers.

Energy prices have been among the most high-profile of the costs, with the statewide average for regular gasoline headed toward $4 a gallon. During the past year the cost has risen by about one-fifth.

Trucking fleets are facing diesel prices that are edging toward $4.50 a gallon. At restaurants, natural gas stoves favored by chefs are more costly, with commercial rates per thousand cubic feet of gas swelling by one-third, according to U.S. Energy Information Administration data.

Hawai'i's commercial natural gas and electricity rates are three times the national average and the highest in the country. Hawaiian Electric Co.'s rates include an energy cost adjustment charge that helps the utility pass through what it pays for fuel oil.

During the past year that charge has risen more than 70 percent and is now more than half of the bill for commercial electricity rates.

pricier Zippy's chili?

At Zippy's Restaurants, one of the state's largest locally based chains, with 24 locations, the battle over whether to raise prices may be over. The company is experiencing hits from hikes in rice, flour, chili bean, electricity, natural gas, and shipping prices.

"All the costs of our goods have gone up," said marketing manager Jeanine Mamiya-Kalahiki, noting an at least 40 percent bump in costs since the beginning of the year.

Zippy's has tried energy savings programs that include trying to bring down costs for its walk-in refrigerators by making sure door insulation is proper and having employees close the door promptly. It's also looked at keeping fewer stove burners lit during slow periods and switching to compact fluorescent lights.

But there's only so much it can do to contain rising costs. A price increase will probably occur, Mamiya-Kalahiki said.

"We'll probably have to do that," she said.

For Bob Mingus, there's little he can do but complain about higher gasoline costs and work longer hours. His taxi business, Robert Star Executive Service, is being squeezed by fuel prices that have jumped and meter rates that haven't been increased by the city.

"I'm paying about $400 more a month in fuel costs," said Mingus, who drives a gold-colored 2001 Lincoln Town Car.

"You've got to stay out for an extra three, four or five hours a day to try and replace the money that's going out.

"You have to or you will not meet your budget."

As such some cab drivers turn off air conditioners while not carrying passengers to try and conserve gasoline, while some reportedly will tell fares their air conditioner is broken. Mingus said he doesn't subscribe to that practice and instead just works the longer hours.

Others, like Hal Josephson, owner of Hawaii Kai Airport Shuttle, are just eating the higher prices. He can remember his monthly gasoline bill being $350 to $400 a month — now it's about $1,000.

"Then you have the taxes, cost of the car, maintenance, associated business costs, so I'm making about 20 to 25 percent less," said Josephson.

"I'm not excited about it."

Hawaiian Electric is well aware of the consternation with the rising prices and promotes various steps businesses can take to cut their electricity usage. Last month it ran an annual event for facilities managers, building and condo managers and others to detail ways to boost energy efficiency. About 400 people attended the event, which included information on rebates for things ranging from energy-efficient air conditioning chillers to compact fluorescent light bulbs.

The utility sees where commercial customers could save 111 gigawatt-hours next year if all energy-efficiency measures were enacted. This includes those in space cooling, ventilation, water heating, refrigeration, lighting and other uses. Spokesman Darren Pai said account managers and others at HECO are available to discuss energy savings measures.

'DOES IT HURT? YES'

At Bubbies, Robbins is hoping the steps he's taking will help with costs, especially since he runs his 18-foot-high, 30-foot by 45-foot factory freezer around the clock, 365 days a year.

Last year, struck by higher prices for cream, he raised wholesale prices. This year he's continuing to feel the price-increase pinch, with higher shipping costs.

Two pallets of ice cream flavorings brought in from Massachusetts used to run him $800 to $900 for shipping. The last time he brought it in he paid $1,850. Ditto for the increased shipping on hot fudge he brings in from New Jersey.

"Does it hurt? Yes," said Robbins, who's also considering instituting a surcharge on his own deliveries. Matson Navigation Co. and Horizon Lines LLC last month raised their fuel surcharge to 33.75 percent on shipments to Hawai'i.

But Robbins said he's come up with another way to deal with rising costs beyond finding ways to cut expenses or having to raise prices.

Robbins said he's intent on increasing sales and is hitting all the food trade shows he can from San Diego to Toronto to Paris to promote Bubbies' premium ice cream and its ice cream-filled frozen mochi.

"We're just trying to increase sales everywhere we're going," Robbins said.

"As long as I can keep volume up, hopefully I'll make it up."