Roadmap for Hawaii’s Clean Energy Future PMI Honolulu October 20, 2010 Dick Rosenblum President & CEO Hawaiian Electric Company Confidential – Limited Distribution The Challenge Whether you think you can or can’t you’re right Henry Ford Confidential – Limited Distribution 2 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 GROSS STATE PRODUCT $63.8 BILLION SPENDING ON ENERGY $ 8.4 BILLION Confidential – Limited Distribution 3 Hawaii’s Fossil Fuel Use Fossil fuels provide 90% of HECO’s Supply Hawaii Economy HECO Electric Supply 2008 & MECO HECO, HELCO Net Generation, 2008 Hydroelectric Conventional Less than 1% JET FUEL 34% ELECTRICITY 32% GASOLINE/ MARINE FUEL OTHER 27% Non-Hydro Renewables 8% Coal 15% Petroleum 77% 7% Confidential – Limited Distribution 4 A Paradigm Shift is Required Economic drain > Economic engine Energy insecurity > Energy security Environmental harm > Environmental compatibility Price volatility > Price stability Confidential – Limited Distribution 5 The Solutions Even if you are on the right track, you’ll get run over if you just sit there Will Rogers Confidential – Limited Distribution 6 Three Goals Meet RPS targets 40% by 2030 Reduce volatility Reduce costs compared to current path Confidential – Limited Distribution 7 Differing Circumstances Renewable Poor Renewable Rich Oahu population 907,574 * Neighbor islands’ population 322,992 * Oahu Molokai Kauai Maui County 14 %** Maui Lanai Oahu * U. S. Census estimate July 2009 Hawaii 5 %** Hawaii Island 34 %** Population 173,057 * ** % Renewable electricity 2009 Confidential – Limited Distribution 8 How Can We Do It? Use abundant wind resources Island interconnection Liquid bio-fuel Local ? Effective integration of intermittent generation Wind speed map of Hawaii Hawaii Island Lanai Maui 29% of peak load 26% of peak load 17% of peak load Confidential – Limited Distribution 9 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 Confidential – Limited Distribution 10 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 Confidential – Limited Distribution 11 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 Confidential – Limited Distribution 12 Let’s Talk! Confidential – Limited Distribution 13 Learn More Hawaii’s Energy Future www.hawaiisenergyfuture.com Hawaiian Electric Company www.heco.com Hawaii Clean Energy Initiative www.hawaiicleanenergyinitiative.org Hawaii energy data http://hawaii.gov/dbedt/info/energy Confidential – Limited Distribution 14 Together… Shaping the Future of Electricity Confidential – Limited Distribution 15