Introduction & Opening Remarks

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

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

3. 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

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

5. Hurricane force winds Tropical storm force winds 2004 Hurricane Season Hurricane CharleyCategory 4 Hurricane FrancesCategory 2 Hurricane JeanneCategory 3 4

6. 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

7. Lessons Learned from 2004 • Hired 3rd 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

8. Hurricane force winds Tropical storm force winds 2005 Hurricane Season Hurricane KatrinaCategory 1 Hurricane WilmaCategory 3 7

9. 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

10. Distribution Performance Distribution Standards Quality Processes Pole Maintenance Transmission Performance Substation Performance Weather Assessment Industry Benchmark Lessons Learned from 2005 • 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

11. 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

12. Questions 11