01/04/06 1

November 2005

Introduction to:

Kaheawa Wind Power, LLCMaui, Hawaii

01/04/06 2

A Convergence of Events

Maui’s First Large Scale Wind Power Project

Robust WindResource

HighPricedEnergy

StrongPoliticalSupport

ProvenTechnology

Local Knowledge

Makani Nui

Industry Expertise

UPC

Hard Assets

01/04/06 3

The Environment(For Wind Power)

01/04/06 4

Global Market of 39,294 MW installed capacity (12/31/03).Equivalent to 26,000 1.5 MW wind turbine generators.

Worldwide Wind CapacityDecember 2003Country Installed MWGermany 14,609United States 6,374Spain 6,202Denmark 3,110India 2,110Netherlands 912Italy 904Japan 686United Kingdom 649China 568

Worldwide Installed Wind CapacityGlobal Wind Power Capacity

6,2587,669

9,800

13,500

17,300

23,800

31,100

39,294

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

1996 1997 1998 1999 2000 2001 2002 2003

InstalledCapacity(MW)

30%CAGR

Source: AWEA

Wind Power Market Overview

Wind Power Has Become a Viable andEconomic Power Generation Alternative

01/04/06 5

Wind Power Market Overview

Wind Power is Less Than 1% of US Total ProductionSource: AWEA

Wind Energy ProjectsThroughout the United States of America

TOTAL INSTALLED U.S. WIND ENERGY CAPACITY: 6,740 MW as of Jan 24, 2005

01/04/06 6

Government support through recently passedRenewable Portfolio Standards.

HECO/MECO now actively support renewable projectsso that they can meet RPS goals.

QHTB investment incentives for individuals to invest inrenewable energy projects.

State Government Support

7% by December 31, 20038% by December 31, 200510% by December 31, 201015% by December 31, 201520% by December 31, 2020

HI State RPS Requirements

Governor Lingle has provided the target!

01/04/06 7

Advanced Technology

01/04/06 8

Technology Innovations: Machine size, reliability and efficiencyhave increased dramatically over the past 20 years.

Proven Technology: GE has over 2,400 1.5 MW machines inoperation worldwide with an average availability over 98%.

Advancements in Technology

Including Hawaii’sAttempts at CommercialWind power

01/04/06 9

Advanced Technology

Variable Speed ControlGE technology features unique variable speed controltechnology to maximize energy capture from the wind andminimize turbine drive train loads. Through its advancedelectronics, the GE wind turbine’s control system continuallyadjusts the wind turbine’s blade pitch angle to enable it toachieve optimum rotational speed and maximum lift-to-drag ateach wind speed. This “variable speed” operation maximizes theturbine’s ability to remain at the highest level efficiency.

Unique Wind Volt-Amp-Reactive (“WindVAR”) TechnologyGE’s unique dynamic power conversion system with optionalWindVAR control provides support and control to local gridvoltage, improving transmission efficiencies and providing theutility grid with reactive power (VARs), increasing grid stability.

Low Voltage Ride-Thru TechnologyGE has just taken wind power electronics to the next level ofperformance. Wind turbines can now, for the first time, remainonline and feed reactive power to the electric grid right throughmajor system disturbances.

01/04/06 10

Advanced Technology

The 1.5 MW machine is active yaw and pitch regulated withpower/torque control capability and an asynchronousgenerator. It uses a bedplate drive train design where allnacelle components are joined on a common structure,providing exceptional durability. The generator and gearboxare supported by elastomeric elements to minimize noiseemissions.

01/04/06 11

Power Generation

Power Generation begins at approximately 8 mph

01/04/06 12

Kaheawa Pastures

01/04/06 13

Kaheawa Pastures History

The project was first proposed in 1996. Over the yearsseveral companies have been involved in thedevelopment of this renewable energy concept forMaui.

Zond Pacific and Enron Wind

GE Wind Energy

Hawi Renewable Development (HRD)

An Environmental Impact Statement was completedand approved in 1999.

A Conservation District Use Application was approvedby the Board of Land and Natural Resources in January2003.

Kaheawa Wind Power, LLC began development in Julyof 2004.

01/04/06 14

Project Description

The “Kaheawa Pastures” project is a commercial scalerenewable energy project. It includes the design,engineering, construction and operations of a 30 MWrenewable wind energy generation facility.

The project will consist of 20 wind turbines arranged in asingle row, an operations & maintenance building,communications system, substation, and aninterconnection to MECO’s transmission lines.

The project includes the construction of a 5 mile accessroad over difficult terrain. Average slope of access roadand project site is 14 degrees.

The turbines are located at the 1900 – 3000 foot level,well away from the central population areas.

01/04/06 15

Project Location

01/04/06 16

Site Layout & Access

01/04/06 17

Robust Wind Resource

Project Site

01/04/06 18

KWP Project Site

01/04/06 19

Project Sponsors

01/04/06 20

The project is being developed and sponsored by UPC WindPartners, LLC and Makani Nui Associates, LLC.

UPC Wind Partners is the US expansion of a leading wind powerdeveloper.

Built, own and operate approximately 640 MW of wind projects

Raised over $900 million in non-recourse project finance debt

Actively developing a further 1,500 MW of wind projects inNorth America

Makani Nui was formed by Kent Smith and Hilton Unemori on Maui.

Kent Smith leads Smith Development a Maui based respectedreal-estate development company.

Hilton Unemori heads ECM, Inc. a Maui-based electricalengineering consultancy.

The Sponsors have entered a state-wide joint developmentagreement to bring subsequent wind projects throughout Hawaii.

Management Team

01/04/06 21

UPC Has Raised Over $900Million in Connection with637 MW of Operating Wind

Projects

Non-Recourse Project Finance Facilities

For 165.75 MW

Italian Green Certificate Wind Farm Projects

(Project Sponsor)

The Undersigned acted as financial advisers to the Borrowersand Structured the Facilities

This Announcement appears as a matter of record only

€ 170,000,000

December 2003

ENERGY FINANCEADVISORSENERGY FINANCEADVISORS

Non-Recourse Project Finance Facilities

For 165.75 MW

Italian Green Certificate Wind Farm Projects

(Project Sponsor)

The Undersigned acted as financial advisers to the Borrowersand Structured the Facilities

This Announcement appears as a matter of record only

€ 170,000,000

December 2003

ENERGY FINANCEADVISORSENERGY FINANCEADVISORS

UPC Wind Projects

01/04/06 22

Power Pricing

01/04/06 23

Size: 206 MW total installed capacity at 12/31/03.

Fuel Mix: Maui highly dependent upon petroleum based fuel.

Expensive Maui Power

Replacing 9% of MECO Load with Clean Renewable In-State Generation at a Discount to Current Market Rates

Sugar CaneWaste

7%

93%

2003Production

Petroleum

9%

6%

85%

KaheawaWind

Projected2006 Production

Petroleum

01/04/06 24

Oil Price Correlation

Note: There is a correlation between Avoided Cost and theprice of crude, and the trend is up! What price in the future?

No hedge on future prices!No hedge on future prices!

01/04/06 25

Innovative Power Pricing

HECO/MECO and KWP have arrived at an innovative pricingagreement, providing benefits to all parties.

Avoided Costs pricing option (currently about $0.14/kWh)

For HECO/MECO, not desirable because of current high price

For KWP, maximizes revenue, but debt financing costs more.

Fixed Price pricing option

For HECO/MECO, not desirable unless it is very low.

For KWP, lowers revenue, but is best for securing financing.

Solution:

A hybrid pricing agreement utilizing both Avoided Cost and fixedcost pricing.

Result:

Immediate benefit to HECO/MECO of approximately 40% vs.straight Avoided Costs.

01/04/06 26

Derived Benefits

01/04/06 27

Some Economic Benefits

Revenue to the State from lease payments on theproject site (percent of gross revenue).

Local jobs; during design, development, constructionand operations.

Improved balance of trade, reducing imports of oil byapproximately $10 million annually.1

KWP has offered local banks senior project debt, and isproud to announce that CPB has joined the syndication,thereby keeping the dollars circulating in our state.

Current price of energy offered to the utility isapproximately 40% below current avoided costs.

Pricing agreement is a hedge against raising crudeprices now and in the future, reducing volatility forconsumers.

1. At $41 per barrel.1. At $41 per barrel.

01/04/06 28

Benefits for Hawaii/Maui

Direct short term economic activity of $18.1M including:$17M in site constructing contracts and services.$1.1M in state excise tax revenues.

Direct long term economic activity in excess of $100Mincluding:

Estimated $7M of lease revenue for land use.$3.8M in job-related income (plus the income taxrevenues)$1.9M of property taxes (0.2% per year over 25 yrs.)$76.6M in imported fuel costs savings (based on oil at$30/barrel)$13.4M in ratepayer savings (based on 3.5%/yearincrease in MECO’s avoided costs)

01/04/06 29

Some Environment Benefits

The project can generate enough renewable energy topower approximately 11,0001 average Maui homes.

Importantly, the project will eliminate the use of 244,000barrels of oil annually, and thereby help reduce the State’sdependence on imported oil.

Some of the air emissions eliminated in our state as abenefit of this project not burning fossil fuels

Source: 1. Hawaii Electric web site, 7/04Source: 1. Hawaii Electric web site, 7/04

2. lbs/year, American Wind Energy Association2. lbs/year, American Wind Energy Association

321,2261,242,581177,645,442

Nitrogen Oxides2Sulfur Dioxide2Carbon Dioxide2

01/04/06 30

Significant Tangible andIntangible Benefits for Hawaii

Tangible BenefitsPrimarily measured economically andenvironmentally, but with a tremendous humanimpact

Currently hard to quantify, but fewer emissions resultin fewer health problems

Intangible Benefits

Pride in our progress toward creating and utilizingclean energy sources

Satisfaction in improving our environmental legacy forfuture generations

Utilizing our technological progress for the benefit ofour society

Improving our national security and energyindependence

01/04/06 31

Conclusions

01/04/06 32

Barriers to Entry

There are still significant hurdles to overcome for renewableenergy projects in Hawaii

Siting: anti development, cultural and land use issues

Economically, Hawaii projects are too large for a smallcompany and too small for a large company.

Some utility resistance to Independent Power Producers,stringent interconnect requirements which results in highcosts and longer lead times.

Extensive government agency involvement, which increasescosts and lead times.

Difficult and costly logistics for transportation, challenging andexpensive access to site.

In short, the issue of project size, location, expensivedevelopment and construction create barriers that makeHawaii projects less desirable when compared to others.

01/04/06 33

And the Good News is:

The State of Hawaii has excellent dynamics for smallto mid-sized commercial wind farms

High power prices (relatively)Excellent wind resourceTechnology advancesGovernment support

Community support for Renewable Energy is strongSuccessful development does require an experiencedand determined sponsor group with adequate financialstrength to bring a project to fruition

Conclusions

01/04/06 34

Mahalo!