1. Confidential – Limited Distribution Roadmap for Hawaii’s Clean Energy Future PMI Honolulu October 20, 2010 Dick Rosenblum President & CEO Hawaiian Electric Company

2. Confidential – Limited Distribution 2 The Challenge Whether you think you can or can’t you’re right Henry Ford

3. Confidential – Limited Distribution 3 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

4. Confidential – Limited Distribution 4 Hawaii’s Fossil Fuel Use Fossil fuels provide 90% of HECO’s Supply ELECTRICITY 32% JET FUEL 34% GASOLINE/ 27% MARINE FUEL OTHER7% Hawaii Economy HECO Electric Supply 2008

5. Confidential – Limited Distribution 5 A Paradigm Shift is Required  Economic drain >Economic engine  Energy insecurity >Energy security  Environmental harm >Environmental compatibility  Price volatility >Price stability

6. Confidential – Limited Distribution 6 The Solutions Even if you are on the right track, you’ll get run over if you just sit there Will Rogers

7. Confidential – Limited Distribution 7 Three Goals  Meet RPS targets  40% by 2030  Reduce volatility  Reduce costs compared to current path

8. Confidential – Limited Distribution 8 Differing Circumstances Oahu 5 % ** Molokai Lanai Maui County 14 %** Hawaii Island 34 %** Oahu population 907,574 * Population 173,057 * Neighbor islands’ population 322,992 * * U. S. Census estimate July 2009 ** % Renewable electricity 2009 Renewable Rich Renewable Poor Kauai Oahu Maui Hawaii

9. Confidential – Limited Distribution 9 How Can We Do It?  Use abundant wind resources  Island interconnection  Liquid bio-fuel  Local ?  Effective integration of intermittent generation Hawaii Island29% of peak load Lanai26% of peak load Maui17% of peak load Wind speed map of Hawaii

10. Confidential – Limited Distribution 10 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

11. Confidential – Limited Distribution 11 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

12. Confidential – Limited Distribution 12 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

13. Confidential – Limited Distribution 13 Let’s Talk!

14. Confidential – Limited Distribution 14 Learn More  Hawaii’s Energy Future www.hawaiisenergyfuture.com www.hawaiisenergyfuture.com  Hawaiian Electric Company www.heco.com www.heco.com  Hawaii Clean Energy Initiative www.hawaiicleanenergyinitiative.orghawaiicleanenergyinitiative.org  Hawaii energy data http://hawaii.gov/dbedt/info/energy http://hawaii.gov/dbedt/info/energy

15. Confidential – Limited Distribution 15 Together… Shaping the Future of Electricity