1. Florida Municipal Electric Utilities May 6, 2009 Paul Kalv, Director City of Leesburg Electric Department Florida Public Service Commission Docket No. 090000-OT

2. Who We Are 2

3. City of Leesburg Electric Utility Lake County - 40 miles Northwest of Orlando 50 Square mile service territory Serves Leesburg, Fruitland Park and portions of unincorporated Lake County 5 Substations and 25 Distribution Feeders Distribution Miles: 228 OH (58%) & 164 UG (42%) 22,000 electric customers 18,500 Residential (83%) 3,500 Commercial (17%) 3

4. City of Leesburg Electric Utility Earned the APPA Reliable Public Power Provider designation 2006 and 2008 (valid for 2 years) Criteria: Reliability, Safety, Workforce Development, System Improvement History of assisting other utilities: Homestead 1992: Hurricane Andrew Mount Dora 1993: The Storm of the Century Key West 1998: Hurricane Georges Next?: We are prepared and willing to help 4

5. System Design & Hardening Standards Construction meets NESC 100 mph wind contour Harden all new and replacement Feeder poles Underground facilities along major arterials Participate in Public Utility Research Center wind and overhead to underground research through FMEA 5

6. System Design & Hardening Standards Minimal exposure to flooding and storm surge located 60 miles inland Facilities constructed along front lot lines Ensure “foreign” utility attachment design standards and inspections 6

7. System Maintenance & Inspection 8 Year inspection cycle for 16,500 poles 10,200 wood (62%) and 6,300 concrete (38%) 6,220 (38%) poles inspected during CY 2007 0.05% Priority reject poles (3 poles) 2.6% Failed minimum strength and replaced (160 poles) 1,300+ (8%) poles in be inspected May-June 2009 7

8. Pole Inspection Benefits History of wood pole inspection & treatment since 1970s – poles installed during 1940s still in service Wood pole inspection and treatment is cost effective 18-24” Excavation Plus Sound and Bore and Supplemental Treatment together with Visual inspection will identify ≈ 98% of reject and priority poles. (Note 1) Recommended to repeat inspection every 6 to 10 years External and Internal treat as needed to preserve remaining strength and prolong service life Priority poles reported to utility each day and assigned to crew to replace Inspector also replaces pole tags and guy markers, repairs pole ground, and reports observed safety hazards Note 1 : Industry estimate 8

9. System Maintenance & Inspection Vegetation management – 4 year trim cycle for feeders and laterals (10 foot clearance) CY 2008 Vegetation outages 7 Outages (20%) caused 175,020 CMI (87%) 27 Outages (80%) caused 26,971 CMI (13%) ( CMI = Customer Minutes Interrupted) Added 4 th Tree Crew during 2008 Budget: $400,000 (8% of Distribution budget) 9

10. Early Preparation Activities Review Lake County and City Storm Plans Revise Electric Department Storm Plan, Plan Coordination meetings, Assignments, and Dry Run Confirm local motel, restaurant agreements Update Mutual Aid contact information Confirm all employees completed appropriate National Incident Management System training 10

11. Annual Planning Activities “ Prepare for the Worst… Hope for the Best” Coordination involves the entire community: Verify material storm stock levels Confirm Contracted Services Electric Department Initial Damage Assessment assignments Assist Public Works “First Push” to clear arterial roadways Verify additional communications equipment availability Assist Telecommunications utility repair damaged fiber facilities Coordinate and confirm Building Department repair permit Confirm retiree, utility construction and ROW clearing contractor availability 11

12. Pre-Storm Activities Initiate activities based on projected storm track Complete Pre-storm department checklists and create restoration work orders Prepare mobile generators for deployment Complete personal preparations and confirm personnel assignments Confirm appropriate local motel, restaurant needs Confirm Local and FPSC reporting needs & schedule Maintain restoration activities until wind gusts make work unsafe (35 mph) “Hunker Down” or other appropriate activity 12

13. Post Storm Restoration Activities Perform Initial Damage Assessments Data sheet and pictures Request additional resources or offer assistance to others Prioritize initial restoration activities Public safety and health facilities Feeders, portions of feeders, and priority laterals Dispatch ROW & Distribution Crews Prepare initial restoration forecasts Maintain accurate periodic reporting statistics Ensure restoration activities are progressing without labor, material, or equipment shortages 13

14. Concerns & Vulnerabilities We surveyed our members for ideas Over-subscription of resources for restoration: Workforce – Independent line crews and tree trimming crews Supplies – Poles Housing – Hotel/motel rooms, with utilities reserving rooms 2-3 days ahead, before storms approach Suggestion: Create ad hoc committee through ESF-12 at State Emergency Operations Center with representatives from each investor- owned utility, and the municipal and cooperative associations to share information and needs as they arise during emergency events. 14

15. Concerns & Vulnerabilities Transmission system vulnerability Most municipal electric utilities are transmission dependent – they purchase power from other utilities and receive electricity via the high- voltage transmission system. The most storm-hardened local distribution can still go dark if a transmission line fails. Keys Energy – Health care after evacuations Keys are evacuated frequently, along with medical personnel Keys management is reluctant to allow lineworkers to work without an active emergency room nearby Have been working with Agency for Health Care Administration to keep medical personnel in area (storm hardened facility), but to no avail Result – restoration in Keys may be slower than expected 15

16. Concerns & Vulnerabilities Keys Energy – Storm Hardening – Electric vs. Telecom About 12,000 poles in Keys Energy service territory 9,000 owned by Keys Energy 3,000 owned by AT&T Poles are intermingled throughout system, and most are joint use Keys Energy designs distribution system to NESC standard of 150 mph extreme wind load Local communications company, AT&T, is not required to do so When AT&T replaces a pole, Keys Energy has agreed to pay incremental cost from standard wood pole to storm-hardened concrete pole. AT&T continues to own pole. Keys Energy asks “Is it fair that only they are required to pay the cost of storm hardening when facilities are so obviously intermingled and jointly used?” Issue may exist elsewhere across Florida 16

17. Questions? Thank you for this opportunity to share our story I look forward to answering your questions 17