1. Floyd Shiroma, Director Fuels Infrastructure Division HAWAIIAN ELECTRIC COMPANY

2. Aloha from Hawaii Tourism => Principal Economic Driver Military => Home of the US Military Pacific Command Construction => Government and Private Projects

3. HECO and Hawaii - A History Entwined Inspired by the Vision of King Kalakaua Inspired by the Vision of King Kalakaua Hawaiian Electric Company, Inc. (HECO) Incorporated in 1891 Hawaiian Electric Company, Inc. (HECO) Incorporated in 1891 Acquired Maui Electric Company (MECO) in 1968 Acquired Maui Electric Company (MECO) in 1968 Acquired Hilo Electric Light Company Light Company in 1970 Acquired Hilo Electric Light Company Light Company in 1970 Iolani Palace

4. Hawaiian Electric Utilities HECO: Island of Oahu (the gathering place) =========== = HELCO: Island of Hawaii (the Big Island) MECO-Maui: Island of Maui (Valley Isle) MECO-Lanai: Island of Lanai (Pipeapple Isle) MECO-Molokai: Island of Molokai (Friendly Isle)

5. Hawaiian Electric Utilities Hawaiian Electric Industries (HEI) Incorporated in 1981 Hawaiian Electric Industries (HEI) Incorporated in 1981 HEI: Holding Co. w/ Subsidiaries in the Electric Utility, Banking, Renewables, etc HEI: Holding Co. w/ Subsidiaries in the Electric Utility, Banking, Renewables, etc HECO, HELCO, and MECO: Utility Service to 95% of Population HECO, HELCO, and MECO: Utility Service to 95% of Population Population 1.2 Million over 5 Islands Population 1.2 Million over 5 Islands 440,000 customers, $ 2.8 billion annual revenue 440,000 customers, $ 2.8 billion annual revenue

6. Sources of Supply Chevron Hawaii Refinery Chevron Hawaii Refinery 55,000 bpd55,000 bpd Crude Slate: Primarily Far East CrudesCrude Slate: Primarily Far East Crudes Output Focused on Mogas and Fuel Oil ProductionOutput Focused on Mogas and Fuel Oil Production Utility Purchases under Term ContractsUtility Purchases under Term Contracts “Refinery Feasibility Study underway”“Refinery Feasibility Study underway” Tesoro Hawaii Refinery Tesoro Hawaii Refinery 95,000 bpd95,000 bpd Crude Slate: Primarily Far East CrudesCrude Slate: Primarily Far East Crudes Output Focused on Jet Fuel ProductionOutput Focused on Jet Fuel Production Utility Purchases under Term ContractsUtility Purchases under Term Contracts Biodiesel Biodiesel Test burn of 400,000 gallonsTest burn of 400,000 gallons Renewable Energy Group, Houston, TxRenewable Energy Group, Houston, Tx

7. Utility Fuel Specifications Low Sulfur Fuel Oil Specifications: Low Sulfur Fuel Oil Specifications: Sulfur 0.50% MaxSulfur 0.50% Max API @ 60df, 12-24API @ 60df, 12-24 Vis 100-450 SSUVis 100-450 SSU Pour 125df MaxPour 125df Max BTU 6.00 MMBTU/Bbl MinBTU 6.00 MMBTU/Bbl Min #6 Fuel Oil Specifications #6 Fuel Oil Specifications Sulfur 2.00% MaxSulfur 2.00% Max API @ 60df, 6.5 MinAPI @ 60df, 6.5 Min Vis @ 122 df, 179-226 SSFVis @ 122 df, 179-226 SSF Pour 55df MaxPour 55df Max BTU 6.00 MMBTU/Bbl MinBTU 6.00 MMBTU/Bbl Min No. 2 Diesel Specifications No. 2 Diesel Specifications Sulfur 0.40% MaxSulfur 0.40% Max API @ 60df, 30 MinAPI @ 60df, 30 Min Vis @ 100df, 32 – 40 SSUVis @ 100df, 32 – 40 SSU Pour 35df MaxPour 35df Max BTU 5.84 MMBTU/Bbl MinBTU 5.84 MMBTU/Bbl Min

8. Hawaiian Electric Co. (HECO) Located on island of Oahu (Gathering Place) HECO Firm Generating Capability: 3 Central Generating Stations + DG = 1238 MW 3 Central Generating Stations + DG = 1238 MW CIP (biodiesel-pending)………………….110 MW CIP (biodiesel-pending)………………….110 MW HECO 2008 LSFO Consumption ~8 Million Barrels ~ 4% decrease compared to 2007 99% of HECO fuel consumption consumption is fuel oil 99% of HECO fuel consumption consumption is fuel oil Independent Power Producers: 434 MW (25% of generation) HPOWER (waste-to-energy)... 46 MW Kalaeloa Partners (LSFO)......... 208 MW AES-Hawaii (coal)..................... 180 MW

9. 9 HECO Transportation and Logistics Barbers Point Tankfarm Barbers Point Tankfarm Nominal 1,000,000 Bbl StorageNominal 1,000,000 Bbl Storage LSFO Deliveries from RefineriesLSFO Deliveries from Refineries Monitored by Chevron 24/7Monitored by Chevron 24/7 Waiau LSFO Pipeline Waiau LSFO Pipeline $26 Million Pipeline & Infrastructure$26 Million Pipeline & Infrastructure 13 miles, 8” Pipeline, Telvent SCADA13 miles, 8” Pipeline, Telvent SCADA Continuous Flow ~ 6000-9000 bpdContinuous Flow ~ 6000-9000 bpd Kahe LSFO Pipeline Kahe LSFO Pipeline 5 Mile Fuel Oil Pipeline to Kahe Power Plant5 Mile Fuel Oil Pipeline to Kahe Power Plant Continuous Flow ~ 12,000-18,000 bpdContinuous Flow ~ 12,000-18,000 bpd Trucking to Iwilei Terminal: 3 Tanker Trucks, 24/7 Trucking to Iwilei Terminal: 3 Tanker Trucks, 24/7 BPTF LSFO Kahe Waiau Iwilei LSFO Diesel BPTF LSFO Kahe Waiau Iwilei (Waiau)

10. Maui Electric Co. (MECO) Located on the island of Maui (Valley Isle), Lanai, and Molokai MECO Firm Generating Capability: 2 Generating Plants = 244 MW MECO 2008 #6 Fuel Oil Consumption ~ 500,000 Barrels ~ 2% decrease compared to 2007 MECO 2008 Diesel Consumption ~ 1.4 Million Barrels ~ 4% decrease compared to 2007 16 % of Generation from Renewables (wind, biomass) 16 % of Generation from Renewables (wind, biomass)

11. Hawaii Electric Light Co. (HELCO) Located on Hawaii Island (the Big Island) HELCO Firm Generating Capability: 5 Central Generating Stations + DGs = 182 MW HELCO 2008 #6 Consumption ~700,000 Barrels ~ 5% decrease compared to 2007 HELCO 2008 Diesel Consumption ~300,000 Barrels ~ 2% decrease compared to 2007 40 % of System Capacity is from Renewables Highest percentage of Renewables in Hawaii Highest percentage of Renewables in Hawaii (wind, hydro, geothermal, biomass)(wind, hydro, geothermal, biomass)

12. 12 Inter-Island Marine Transport 70,000 Double Hull Barge + 4000HP Tug One Voyage a Week from Oahu to MECO-Maui: Discharges at Maui -> MECO, Shell, Chevron Terminals One Voyage a Week from Oahu to HELCO-Hawaii Discharges at Hawaii Island-> Chevron and Tesoro Terminals

13. Hawaii Clean Energy Initiative Biodiesel at CIP Station Study underway to install undersea cable to transmit 400 MW of wind generated power from Lanai and Molokai to Oahu. CPO at Kahe Station

14. Utility Fuel Consumption Outlook HECO HECO LSFO Fuel Oil Consumption: DecliningLSFO Fuel Oil Consumption: Declining 113mw “Biodiesel” Fired CT Plant Commercial in 2009113mw “Biodiesel” Fired CT Plant Commercial in 2009 Energy conservation initiatives by government and private sectorEnergy conservation initiatives by government and private sector HELCO HELCO #6 Fuel Oil Consumption: Declining#6 Fuel Oil Consumption: Declining Diesel: Slight Increase due to Combined Cycle Plant OperationDiesel: Slight Increase due to Combined Cycle Plant Operation Renewable generation expected to impact utility fuel consumptionRenewable generation expected to impact utility fuel consumption MECO MECO #6 Fuel Oil Consumption: Declining#6 Fuel Oil Consumption: Declining Diesel: Slight Increase due to Combined Cycle Plant OperationDiesel: Slight Increase due to Combined Cycle Plant Operation Renewable generation expected to impact utility fuel consumptionRenewable generation expected to impact utility fuel consumption If you build it they will come?

15. Mahalo!