Floyd Shiroma, Director

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HAWAIIAN ELECTRIC COMPANY
Floyd Shiroma, Director Fuels Infrastructure
Division
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Aloha from Hawaii
Tourism gt Principal Economic Driver Military gt
Home of the US Military Pacific Command
Construction gt Government and Private Projects
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HECO and Hawaii - A History Entwined

• Inspired by the Vision of King Kalakaua

Iolani Palace

• Hawaiian Electric Company, Inc. (HECO)
  Incorporated in 1891
• Acquired Maui Electric Company (MECO) in 1968
• Acquired Hilo Electric Light Company Light
  Company in 1970

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Hawaiian Electric Utilities

• HECO Island of Oahu (the gathering place)

MECO-Maui Island of Maui (Valley
Isle) MECO-Lanai Island of Lanai (Pipeapple
Isle) MECO-Molokai Island of Molokai (Friendly
Isle)
HELCO Island of Hawaii (the Big Island)

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Hawaiian Electric Utilities

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

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Sources of Supply

• Chevron Hawaii Refinery
• 55,000 bpd
• Crude Slate Primarily Far East Crudes
• Output Focused on Mogas and Fuel Oil Production
• Utility Purchases under Term Contracts
• Refinery Feasibility Study underway
• Tesoro Hawaii Refinery
• 95,000 bpd
• Crude Slate Primarily Far East Crudes
• Output Focused on Jet Fuel Production
• Utility Purchases under Term Contracts
• Biodiesel
• Test burn of 400,000 gallons
• Renewable Energy Group, Houston, Tx

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Utility Fuel Specifications

• Low Sulfur Fuel Oil Specifications
• Sulfur 0.50 Max
• API _at_ 60df, 12-24
• Vis 100-450 SSU
• Pour 125df Max
• BTU 6.00 MMBTU/Bbl Min
• 6 Fuel Oil Specifications
• Sulfur 2.00 Max
• API _at_ 60df, 6.5 Min
• Vis _at_ 122 df, 179-226 SSF
• Pour 55df Max
• BTU 6.00 MMBTU/Bbl Min
• No. 2 Diesel Specifications
• Sulfur 0.40 Max
• API _at_ 60df, 30 Min
• Vis _at_ 100df, 32 40 SSU
• Pour 35df Max

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Hawaiian Electric Co. (HECO)

• Located on island of Oahu (Gathering Place)
• HECO Firm Generating Capability
• 3 Central Generating Stations DG 1238 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
• Independent Power Producers 434 MW (25 of
  generation)
• HPOWER (waste-to-energy) ... 46 MW
• Kalaeloa Partners (LSFO) ......... 208 MW
• AES-Hawaii (coal) ..................... 180 MW

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HECO Transportation and Logistics

• Barbers Point Tankfarm
• Nominal 1,000,000 Bbl Storage
• LSFO Deliveries from Refineries
• Monitored by Chevron 24/7
• Waiau LSFO Pipeline
• 26 Million Pipeline Infrastructure
• 13 miles, 8 Pipeline, Telvent SCADA
• Continuous Flow 6000-9000 bpd
• Kahe LSFO Pipeline
• 5 Mile Fuel Oil Pipeline to Kahe Power Plant
• Continuous Flow 12,000-18,000 bpd
• Trucking to Iwilei Terminal 3 Tanker Trucks,
  24/7

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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)

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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
• (wind, hydro, geothermal, biomass)

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Inter-Island Marine Transport

• 70,000 Double Hull Barge 4000HP Tug
• One Voyage a Week from Oahu to MECO-Maui
• Discharges at Maui -gt MECO, Shell, Chevron
  Terminals
• One Voyage a Week from Oahu to HELCO-Hawaii
• Discharges at Hawaii Island-gt Chevron and
  Tesoro Terminals

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

• HECO
• LSFO Fuel Oil Consumption Declining
• 113mw Biodiesel Fired CT Plant Commercial in
  2009
• Energy conservation initiatives by government and
  private sector
• HELCO
• 6 Fuel Oil Consumption Declining
• Diesel Slight Increase due to Combined Cycle
  Plant Operation
• Renewable generation expected to impact utility
  fuel consumption
• MECO
• 6 Fuel Oil Consumption Declining
• Diesel Slight Increase due to Combined Cycle
  Plant Operation
• Renewable generation expected to impact utility
  fuel consumption

If you build it they will come?
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Mahalo!