Introduction & Opening Remarks l Hurricanes of 2004 & 2005 highlight the need for a fresh look at these issues l We support this effort and will be active participants l Help shape infrastructure strategy that works for Florida l Be clear what we’re trying to improve; make sure any change is for the better

FPSC Infrastructure Hardening Workshop Presented by: Michael G. Spoor, P.E. Florida Power & Light January 23 rd, 2006

Florida Power & Light Co. 27,000 sq. miles & 35 counties 4.2 M customer accounts 535 substations Over 6K miles of transmission lines Over 65K miles of distribution lines Over 68K transmission structures Over 1.1M distribution poles Over 800K distribution transformers 2

Overview Summary of 2004 hurricane season Lessons learned from 2004 Summary of 2005 hurricane season Lessons learned from 2005 Next Steps 3

2004 Hurricane Season Tropical storm force winds Hurricane force winds Hurricane Charley Category 4 Hurricane Frances Category 2 Hurricane Jeanne Category 3 4

2004 Hurricane Season – Distribution and Transmission Equipment Repaired Distribution –10,379 FPL poles –960 miles of OH conductor –590 miles of OH service conductor –1 million OH splices –30 miles of UG cable –100 miles of UG service cable Transmission / Substation –174 structures –15 miles of conductor –3 substation transformers –10 regulators –39 breakers 5

Lessons Learned from 2004 Hired 3 rd party consultant to help evaluate system performance and restoration processes –Key findings  FPL met or exceeded standard utility restoration practices  FPL’s distribution, transmission, & substation facilities performed well  FPL’s transmission system was restored effectively –Areas of opportunity  Enhance customer communications by providing lower level ETR’s  Establish critical infrastructure priorities with local EOC’s  Establish partnerships to improve resource acquisition capabilities Internal reviews –Distribution  Introduced forensic team to perform detail analysis  Streamlined processes for underground conversions –Transmission/Substation  Reviewed remainder of system from lessons learned  Implemented plans accordingly 6

2005 Hurricane Season Tropical storm force winds Hurricane force winds Hurricane Katrina Category 1 Hurricane Wilma Category 3 7

2005 Hurricane Season – Distribution and Transmission Equipment Repaired Distribution –12,632 poles (FPL & non-FPL) –930 miles of OH conductor –570 miles of OH service conductor –1.1 million OH splices –30 miles of UG cable –100 miles of UG service cable Transmission / Substation –100 structures –7 miles of conductor –1 substation transformers –7 regulators –16 breakers 8

Lessons Learned from 2005 –Distribution Performance –Distribution Standards –Quality Processes –Pole Maintenance –Transmission Performance –Substation Performance –Weather Assessment –Industry Benchmark Retained independent outside consultant (KEMA) to examine the performance of FPL facilities during Wilma in an attempt to better understand whether transmission and distribution structures performed appropriately Key Finding FPL’s transmission, substation and distribution systems are designed to meet or exceed all required safety standards, and, during Wilma, performed as expected and in accordance with FPL standards Most of FPL’s poles are designed 50% stronger than required by the NESC 9

Next Steps Evaluate recommendations from KEMA study Develop infrastructure hardening plan –”Hardening Roadmap”. Items under consideration: –Strengthen Poles –Shorter Spans –Conductor Size –Undergrounding of Facilities –Vegetation Management –Other Design Considerations –Substation Facilities 10

Questions 11