2007 Hurricane Season Preparations Florida Public Utilities Company May 23,2007

Florida Public Utilities Company Description Small Investor Owned Electric Utility Approximately 28,000 Customers Small Service Territory Northeast Florida Division - Amelia Island and Fernandina Beach Northwest Florida Division – Parts of Jackson, Calhoun and Liberty Counties

Hurricane Season Preparations Vegetation Management – Focus on Critical Infrastructure and Areas with Reliability Issues Pole Replacements – Focus on Replacements of Deteriorated Poles Updated Emergency Procedures Substation Inspections and Corrections Continued Involvement with Mutual Assistance Groups

Hurricane Season Preparations Inventory Needs Evaluated to Ensure Adequate Supplies Additional Manpower And Resources have been identified GIS and SCADA System Completed In Northwest Florida Division

Storm Hardening Initiatives In September 2006, FPU filed a petition to address additional storm hardening cost required to implement the initiatives Some initiatives were delayed pending resolution of the filing Implementation of all initiatives are planned for July 2007

Additional Preparations Needed Pole Inspections – Limited Inspections have been completed. Detailed inspections to begin in July. Transmission Inspections – Visual Inspections have been performed. Climbing Inspections to begin in July. Vegetation Management – Critical Infrastructure has been addressed. Additional resources to start in July to comply with the needed trim cycle.

Additional Preparations Needed Completion of the GIS System in Northeast Florida– Completion is expected in July Disaster Preparedness and Recovery Plan – Additional detail is underway on this and will be completed in July Details on the Forensics Data Collection needs to be completed

Conclusion FPUC is adequately prepared for the 2007 Hurricane Season Although some additional items require completion, most will be initiated or completed in July 2007