1. “Super” Joint Action presentation to APPA 2004 Joint Action Workshop Dec. 5-7, 2004

2. 2 “Super” Joint Action  What is it?  Why do it?  Roadblocks  PGP  Other Efforts

3. 3 What Is It?  The idea of “super” joint action is not new  Finding opportunities where agencies spread over multiple regions can create synergies

4. 4 Why Do It?  Create economies of scale in market  Diversify risk of participating in opportunity  Sharing of knowledge and experience across multiple agencies  Sharing of costs

5. 5 Roadblocks  State laws/regulations  Agency Interlocal agreements  Multiple legal staffs  Egos

6. 6 PGP  Idea for multi-regional agency spawned by MGAG, FMPA and MEAG  Marketing of concept  MGAG – municipal gas groups in Southeast  FMPA – Florida municipals, electric and gas  MEAG – other TEA members  Initial interest by 15 JAA/municipals in February 2004

7. 7 PGP Continued  LOI signed by 10 JAA/municipals April 2004  Work began on agreements in May 2004  Production Sharing Agreement  Letters of Incorporation  By-Laws  Committees formed to help move process along  Legal & Tax  Finance  Operations

8. 8 PGP Continued  Weekly conference calls and monthly face-to- face meetings  Multiple drafts of all agreements  Letters of Incorporation filed in Georgia in October 2004  Production Sharing Agreements signed by 7 entities in November 2004 and election of Officers

9. 9 Why PGP?  Mission Statement To provide the most economical and reliable long term natural gas supplies in the most proficient manner for the greater benefit of the customers served by its Members.

10. 10 Why PGP? Continued  Opportunity to invest in multiple projects in multiple locations  Sharing of overhead costs  Complimentary load shapes of gas and electrics  RISK DIVERSITY!!!

11. 11 Other “Super” Joint Action  The “Good Guys”  Group of large Florida municipals, one electric cooperative and Georgia JAA  Objective to spawn ideas for cooperative efforts

12. 12 Other “Super” Joint Action  Ideas from “Good Guys”  Mutual Aid Agreement  Solid Fuel Generation Project  Natural gas reserve acquisitions  Joint purchasing of LNG  Joint disaster recovery  Statewide power pool  Coal reserve acquisitions

13. 13 Final Comments  “Super” joint action provides great risk diversity opportunities and economies of scale  Be prepared for roadblocks  Allows for thinking outside the box  Take advantage of talents available at multiple agencies  Lowers costs of projects

14. 14 “Super” Joint Action Questions?