Our Energy Future Hawaiian Electric Company, Inc.

1. Our Energy Future Hawaiian Electric Company, Inc.

2. Growing electricity use 1970 - 2005 Electricity/per capita Growth GSP Growth 161% 139% Population Growth 75% Source: DBEDT Energy Resources Coordinator’s 2006 Annual Report

3. Our dependence on oil 90% of all Hawaii energy • Jet fuel • Gasoline • Electricity Oil challenges: • Security of supply • High cost • Environmental impact

4. Oil is refined for many uses Each barrel is refined first for jet fuel, then gas and marine fuel. What’s left, the goop called “residual,” is used to create electricity. An “integrated” energy system

5. Global warming policy We are committed to direct action to decrease the contribution to global warming from electricity production…including aggressive energy conservation and transition to producing clean, efficient and eco-effective electricity in all markets we serve.

6. The good news • Renewable Energy • Conservation • Energy Efficiency

7. Why more renewable energy? • Control use of imported oil • Cleaner, no emissions • Less climate change • More secure • ‘Fuel’ is free HECO goal/State law: 10% RPS by 2010 15% RPS by 2015 20% RPS by 2020

8. Next power plant by 2009 • Peaking unit: 110 MW • A ‘GREEN’ power plant • 100% renewable (preferably local) • Hydrogen (in the future?)

9. Biodiesel • Higher energy yield than ethanol • Palm, jatropha, soybeans, peanuts, canola, kukui, coconut • Imported or can be grown locally

10. Garbage-to-energy • H-Power burns Oahu garbage • Electricity production • Waste elimination

11. Kaheawa Wind Farm, Ma‘alaea, Maui Hawi Wind Farm, Big Island Wind energy

12. Puna Geothermal Ventures, Big Island Geothermal

13. Top five states for renewables Energy Information Administration, Electric Power Annual 2006, 1990-2006 Net Generation by State by Type of Producer by Energy Source (EIA-906).

14. Conservation & energy efficiency • Conservation: Use less power • Efficiency: Get more work from same amount of power

15. Conservation awareness

16. My Home Energy Check www.heco.com Energy$olutions for the home

17. In the workplace www.heco.com 94-Power

18. Energy$olutions in action Commercial and Industrial Energy Efficiency Investments: $80 million (since 1986)

19. Energy$olutions in action Energy Rebates: $18 million Energy Savings: $500 million

20. Energy$olutions in action • Reduced energy demand: 42 MW • Energy savings: 300 gWh+ annually • Total savings: 4.5 million+ barrels of oil

21. John A. Burns School of Medicine • HECO rebates: $250,000+ • Annual utility cost savings: $230,000 • LEED certification in progress

22. Technical Resources • Power CD • Program engineers • Professional engineers and consulting community • www.heco.com

23. Energy$olutions for the home

24. Solar water heating • Over 75,000 systems state-wide – one in five homes • One of largest, most successful programs in U.S.

25. Solar water heating A Hot Deal!

26. New Energy$olutions • Energy Scout • Radio switch shuts off water heater in emergencies • $3 per month discount (even if water heater is never turned off) • Commercial & Industrial Direct Load Control • Similar deal with thousands in possible savings

27. The bottom line: Less and Local • Use LESS energy whenever possible, without sacrificing comfort or safety • Use more LOCAL energy whenever possible – clean, renewable energy from sources all around us

28. Hawaii’s Energy Future Questions? Visit www.heco.com www.hawaiisenergyfuture.com Comments? 543-7753

29. Our Energy Future Hawaiian Electric Company, Inc. www.heco.com