2007 Hurricane Season Preparedness Briefing Gulf Power Company Presented by Andy McQuagge Power Delivery Services Manager May 23, 2007

Transmission Vegetation Management 230kV ROW Vegetation Inspection & Correction Inspections are complete Vegetation hazards identified have been corrected 115kV ROW Vegetation Inspection & Correction Inspections are 75% complete Vegetation hazards identified are being corrected Scheduled completion date is June 1, 2007 46kV ROW Vegetation Inspection & Correction Inspections have been started Scheduled completion date is June 30, 2007

Distribution Vegetation Management Storm Hardening Annual Removal Program (SHARP) 1,238 danger trees removed with 9 customer refusals Mainline Inspection & Correction Schedule (MICS) Inspect & correct vegetation hazards on 2/3 of the mainlines 1,230(mi) inspected, vegetation hazards corrected by June 1st Mainline Annual Trim Schedule (MATS) Feeder maintenance on 1/3 of the mainlines (3 year cycle) 50(mi) completed of the 615(mi) scheduled for 2007 Scheduled Annual Lateral Trimming (SALT) Lateral maintenance of 1/6 of the lateral lines (6 year cycle) 660 miles of the 3,978 lateral miles are scheduled for 2007

Transmission Inspections & Maintenance The complete transmission system has been inspected aerially once this year Gulf typically performs four aerial inspections annually All critical lines have been inspected aerially for 2007 Comprehensive walking/climbing and groundline inspection 6 year program 75% of inspections will be completed by August 1, 2007 Additional activities 76 structures storm hardened by installing additional guys 139 replacements of wood cross-arms have been completed Designs include “loss of conductor” contingency

Distribution Inspections & Maintenance Distribution Pole Inspections 2007 Pole inspections scheduled for 4th quarter Repairs in progress on poles identified in 4th qtr 2006 inspections Joint-Use Audit – Pole Strength Assessments Gulf held a Request for Proposals (RFP) bid meeting May 10 All critical lines will be inspected up to the first protective device and infrared inspections performed on critical equipment (mainline three-phase feeder) by June 1, 2007

Areas of Concern Availability of Resources Forensic Data Gathering Qualified Contractors Tree trim contractors having a difficult time finding certified line clearance personnel to use in storm restoration process Similar concerns with line construction contractors Forensic Data Gathering Key to the Storm Hardening Plan Availability of resources

Summary - Gulf is Fully Prepared On-going coordination with government, community groups and other utilities System: Transmission and Distribution Progress in implementing 10 Storm Preparedness Plan initiatives filed in 2006 Storm Recovery Plan: Proven and battle tested Improvements based on lessons learned Support

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