Hawai'i's oil imports rose 6.7 percent during the first quarter compared with last year, with double-digit percentage increases occurring in February and March.

That's among the information in the latest Energy Trend report released by the state Department of Business, Economic Development and Tourism, which also indicates people are starting to drive more again. State gasoline tax revenues rose 7.5 percent during the January-to-March quarter compared with a year earlier.

The figures show 10.94 million barrels of foreign crude oil were imported to the state during the first quarter. That compared with 10.26 barrels a year earlier.

The increase comes as state government looks for ways to increase use of renewable energy. Gov. Linda Lingle's administration wants to lower consumption of foreign oil, which now accounts for about 90 percent of Hawai'i's energy needs.

The report also detailed an 8.4 percent decline in the amount of electricity sold during the quarter.

YOUNG BROTHERS' INTERVENTION OK'D

The state Public Utilities Commission has granted a request by interisland shipper Young Brothers to intervene in a case in which Pasha Hawaii Transport Lines is seeking to compete with Young Brothers in the local market.

Young Brothers said Pasha's entry would create an "unlevel playing field" because the company wants to serve the Honolulu to Hilo and Kahului routes while ignoring smaller markets such as Moloka'i, Lana'i and Kawaihae on the Big Island.

Pasha Hawaii filed an application with the PUC in March to provide service between Honolulu, Kahului and Hilo using its 579-foot ship the Jean Anne. It currently uses the ship on routes between Hawai'i and the West Coast.

PACIFIC OFFICE DISPUTES DEFAULT

Pacific Office Properties Trust Inc., a real estate investment trust that owns buildings in Honolulu and in the Western U.S., is disputing an assertion that its operating partnership has had a credit default.

The Los Angeles-based company said its partnership, Pacific Office Properties LP, was told by KeyBank National Association that an "event of default" existed with respect to a credit agreement.

The bank told the partnership that the default relates to the calculation of a financial covenant, and that no additional borrowings under the agreement would be available, according to a Pacific Office regulatory filing.

The partnership has borrowed $3 million under the agreement. Pacific Office said it does not agree with KeyBank that a default had occurred. It said it is continuing to have discussions with the bank to resolve the situation.