Confidential – Limited Distribution

Roadmap for Hawaii’s Clean Energy Future

PMI HonoluluOctober 20, 2010

Dick RosenblumPresident & CEO Hawaiian Electric Company

2Confidential – Limited Distribution

The Challenge

Whether you think you can or can’t you’re right

Henry Ford

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Hawaii’s Economy in 2008

“Our dependence on oil means that we will continue to send billions of dollars of our hard-earned wealth to other countries every month.” B. Obama

SPENDING ON ENERGY $ 8.4 BILLION

GROSS STATE PRODUCT $63.8 BILLION

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Hawaii’s Fossil Fuel UseFossil fuels provide 90% of HECO’s Supply

ELECTRICITY 32%

JET FUEL 34%

GASOLINE/ 27%MARINE FUEL

OTHER 7%

Hawaii Economy HECO Electric Supply2008

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A Paradigm Shift is Required

Economic drain > Economic engine Energy insecurity > Energy security Environmental harm > Environmental

compatibility Price volatility > Price stability

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The Solutions Even if you are on the right track, you’ll get run over if you just sit there

Will Rogers

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Three Goals

Meet RPS targets

40% by 2030

Reduce volatility

Reduce costs compared to current path

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Differing Circumstances

Oahu 5 %**

Molokai

Lanai

Maui County 14 %**

Hawaii Island 34 %**

Oahu population 907,574 *

Population173,057 *

Neighbor islands’ population322,992 *

* U. S. Census estimate July 2009

** % Renewable electricity 2009

Renewable RichRenewable Poor

KauaiOahu

Maui

Hawaii

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How Can We Do It?

Use abundant wind resources

Island interconnection

Liquid bio-fuel Local ?

Effective integration of intermittent generation Hawaii Island

29% of peak loadLanai

26% of peak loadMaui

17% of peak load

Wind speed mapof Hawaii

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Inter-Island Wind

A program not a project Wind Project(s) Undersea cable Oahu transmission enhancements

Each critically dependent on the others

Market power Financing Government interface Community

NIMBY, NIMTOO

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What Are We Doing To Prepare

Sr. Executive Project Management Office (PMO) Three levels of involvement

Small Medium Large

What are the tools/processes Scheduling Estimating Project Controls Change Management Risk Management

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What do I think

Everything should be as simple as it is, but not simpler. Albert Einstein

Don’t create a monument to project management

Be careful what you measure

Be flexible – leave room for innovation

Communicate, communicate, communicate

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Let’s Talk!

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Learn More

Hawaii’s Energy Future www.hawaiisenergyfuture.com

Hawaiian Electric Companywww.heco.com

Hawaii Clean Energy Initiativewww.hawaiicleanenergyinitiative.org

Hawaii energy datahttp://hawaii.gov/dbedt/info/energy

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Together…Shaping the Future of Electricity