City of Sarasota Franchise Agreement Rae Dowling, Buck Martinez and Ken Rubin June 16, 2010

2 $15 million investment in underground power in downtown $113,000 for United Way since 2007 Home Energy Makeover for 50 City of Sarasota families Nonprofit Energy Makeover at St. Martha’s Early Learning Center Operation Sleeping Bag Nearly $20,000 given additionally the past year, i.e. Girl Scouts At FPL, our first responsibility is to provide affordable, reliable electricity, but we also work to build up the communities we serve – after all, we live here, too Commitment to the Sarasota Community Sarasota children at the Nonprofit Energy Makeover event at St. Martha’s Early Learning Center.

3 Lowest Bill in Florida FPL’s typical residential bill is the lowest of 55 utilities in Florida, including all 33 municipal utilities FPL: $97.60 (with franchise fee) State Average: $ Winter Park: $ Gainesville: $ Peace River: $143.51

4 FPL delivers better than percent service reliability FPL has inspected 66 percent of the City’s 40,240 poles for strength and health and will continue our inspections Additionally, FPL has: –Upgraded and strengthened several main power lines serving critical and community facilities in and near Sarasota, including: Sarasota Memorial Hospital Doctors Hospital of Sarasota Several 911 communication towers –Trimmed tree limbs and branches along 1,670 miles of power lines in the city, among the most common causes of flickers FPL works proactively to improve the reliability and efficiency of our electric service, preparing for storms and investing in year-round preventative maintenance FPL’s service reliability is 46 percent better than the national average Reliability and Storm Preparedness Figures above reflect FPL system improvements, 2006 – 2009

5 Energy Smart Florida Project Overview Energy Smart Florida will build a smarter grid: –Investing more than $800 million overall –Installation of 9,000+ intelligent devices –Deployment of 4.5 million smart meters for customers, including more than 27,000 in the City Expected Sarasota deployment in 2012 Energy Smart Florida is part of FPL’s ongoing commitment to building a stronger, smarter, cleaner and more efficient electrical infrastructure for customers

6 110 megawatts in utility- scale solar projects kilowatts of additional solar installations –Rothenbach Park –Six schools –Eight other projects planned –FPL living lab New solar projects planned in 2011 that will make Florida the nation’s leader Florida is becoming a national leader in solar energy and FPL is working across the state on a variety of renewable energy projects Commitment to Clean Energy We are prepared to build much more but can only do so with the right public policy framework in place

7 FPL sees several opportunities to partner with the city Ways We Can Work Together FPL has had multiple meetings with city officials about new and innovative opportunities in the city and would like to continue discussions

8 FPL contributes to the City through funding, jobs and community involvement –Since 1990, FPL has paid more than $70 million in franchise fees –Since 1995, FPL has paid more than $2 million in property taxes –FPL employs approximately 425 people in the area –Over past year, FPL has paid $2.4 million in incentives to local air conditioner contractors in the area Enables the City fiscally to take advantage of energy opportunities today and tomorrow –City would avoid purchase, legal and operation costs –Can use FPL payments toward renewable investments FPL needs assurance of long-term business due to the large capital investments we make to serve customers –Solar projects and Energy Smart Florida A 30-year term benefits the city by providing a guaranteed revenue stream that it can bond and use as it sees fit Benefits of the 30-Year Agreement

9 Franchise agreement is non-exclusive –Providers are free to offer new technology and customers are allowed to generate their own power with installed systems or distributive generation –The city is free to build its own renewable or other generation facility to serve its own facilities City and individual customers could participate in net metering program, which is state regulated FPL is at the forefront of these technologies –FPL has a proven track record of investment Next Generation Solar Energy Centers Energy Smart Florida If the city wants to be a leader in renewable energy, then it should continue partnering with FPL and fully explore public-private opportunities Access to New Energy Technologies