1. Florida Keys Electric Cooperative Association, Inc. Storm Hardening Florida Public Service Commission May 1, 2008 Scott Newberry, CEO John Stuart, COO

2. Florida Keys Electric Cooperative Association, Inc. FKEC was established in 1940 as a not-for-profit cooperative electric utility to serve member- owners in the Upper and Middle Florida Keys. The cooperative is managed by an elected board of directors and currently serves 25,000 members and 31,000 accounts. Approximately 99% of our power is purchased from FPL on the Mainland. FKEC’s power system peak capacity is approximately 160 megawatts.

3. FKEC Electric System 100 Miles of 138kv Transmission Lines 647 Miles of 24kv Distribution Lines 44 miles of Underground 24kv Distribution 9 Miles of Transmission Lines Over Water 6 - 138/24 kv Substations 8 Diesel Generators in Marathon with 22 Mw of Peaking Power 12 Mw Purchase Power Agreement with Keys Energy Services of Key West

4. Storm Hardening Objectives Design and build a safe and strong system which meets or exceeds extreme wind standards. Keep our trees trimmed and replace deteriorated poles. Provide a safe and secure locations for our equipment and materials. Provide facilities that will enable our restoration efforts to begin immediately after the storm passes and be sustained as long as needed.

5. Storm Hardening Initiatives Design Infrastructure Maintenance Restoration

6. Design Adoption of Extreme Wind Standard April 2006 Increased Wood Distribution Pole Class Engineered Concrete Poles

7. Infra-Structure Pole Testing and Treating – 5 Year Cycle –Approximately 3000 poles/year –Currently experiencing an 8% failure rate Pole Replacement –Approximately 200 Distribution Primary/Secondary poles/year New Warehouse and Operations Building Anchor and Guy Replacement Programs with AT&T and Comcast

8. FKEC Transmission To Florida City (FP&L) To Marathon and Lower Keys Post-Andrew Construction Pre-Andrew Construction

9. Preventive Maintenance Vegetation Management – 3 Year Cycle –Approximately 215 Miles of line cleared/year –All main feeder work completed prior to July 1 Annual Aerial Patrols of Transmission & Main Distribution Feeders Annual Infra-red Patrols of Transmission Lines and Substations

10. Restoration Plans Established Major Storm Restoration Plan (Reviewed Annually) –Damage Assessment –Transmission and Substations –Main Feeders –Post Storm Critique Ensure the Safety of the Public and FKEC Staff Adequate Materials On Hand Vehicles and Equipment Safely Stored Coordination with Monroe County EOC

11. Restoration Plans (continued) Redundant Communication Systems GIS/OMS Systems for Storm Damage Evaluation Out of State Data Back-up w/ Remote CIS Support Line Contractor On-site During Peak Hurricane Season Mutual Aid from Florida and Southeast Cooperatives