Electric Infrastructure Workshop Gulf Power Company January 23, 2006

– 2005 Hurricane Season Who We Are  Our size  Our location and geography  Our company affiliation  Our communication system

– 2005 Hurricane Season What We Experienced  Damage to our system Transmission Substation Distribution  Hurricane T&D Material Summary - slide 16 Hurricane T&D Material Summary

– 2005 Hurricane Season What We Experienced  Damage to our system by Wind Storm Surge Trees Debris Debris Removers Customers  Coastal Damage slides Coastal Damage  Hurricane Ivan Maps slides 27 and 28 Hurricane Ivan Maps

– 2005 Hurricane Season What We Did  Prior to Hurricane Season Review and refine the restoration process  Critiques after each storm  Updates of contact information  Lessons learned from other utilities Communicate storm assignments to employees Prepare storm kits for each substation Ensure adequate material stocks can meet needs Negotiate and confirm contracts with vendors

– 2005 Hurricane Season What We Did  Approaching Storm Execute contracts  Materials  Food/Lodging/Staging/Transportation/Fuel  Electrical and tree contractors Communicate with customers and local / state officials Conference call with Southeastern Electric Exchange members

– 2005 Hurricane Season What We Did  Post Storm Decentralize the restoration process  Decision making ability is at the substation level  Distribution assessments and restoration begin as soon as it is safe to report to work Draw upon Southern Company affiliates for assistance as needed Perform “sweeps” – slide 29sweeps

– 2005 Hurricane Season What Is In The Future  Underground  Help with vegetative management in right of way  Evolving specifications  Increased data from our mapping system  Distribution Assessment Teams

– 2005 Hurricane Season What Is In The Future  Vegetation Management  Pole Inspections maximize plant facility life gather information necessary to manage and prioritize needs and resources minimize unscheduled or emergency maintenance by performance of preventative maintenance  NESC and Specifications

10 Vegetation Management  Work performed by contractors  Clearance at the time of pruning based on NESC requirements  Program performance indicators Vegetation SAIDI Customer satisfaction - justified PSC complaints on tree trimming Public Safety – number of documented accidents related to vegetation

11 Vegetation Management (cont.)  Program utilizes a mix of maintenance pruning on entire circuits, targeted spot pruning on portions of circuits, and spot pruning in response to customer call ins.  Annual work plans developed from Forestry Services field inspection data, outage data, customer call ins, and field engineering reports  100% of transmission field inspected each year – all hazardous situations corrected (i.e., leaning or dead trees)

12 Distribution Line Inspections  249,802 wooden poles as of December  10 year inspection cycle for all distribution poles  Gulf started its 2 nd inspection cycle in  All poles are inspected using one of the following inspection types: Visual Sound and Bore Partial Excavation Full Excavation

13 Transmission Line Inspections  12 year inspection cycle for all transmission poles and structures  Aerial patrol of system at least 4 times per year  All structures are inspected every 6 years using one of the following inspection types: Ground Inspection Wood Ground Line Treatment Inspection Steel Ground Line Treatment Inspection Comprehensive Walking Inspection Comprehensive Aerial Inspection Routine Aerial Patrol

14 National Electric Safety Code  Purpose  The NESC is composed of 8 sub-committees, an executive sub-committee, and an accredited standards committee  Member Representation  A new revision is published every 5 years.  Recognized Authority

Appendix

16 Hurricane T&D Material Summary

17 Navarre Underwater Cable Crossing

18 Storm Surge Damage on Underground Equipment and Cable along Navarre Beach

19 Customer Crane Damage to Padmount Switchgear

20 Destroyed Underground Switching Cabinet

21 Underground Cables Exposed by Storm Surge

22 Road Destroyed on Barrier Island

23 Destruction to overhead lines, Pensacola Beach

24 Erosion around Padmount Switchgear

25 Customer Debris Hampers Restoration Efforts

26 Storm Surge Damage

27 Hurricane Ivan Wind

28 Hurricane Ivan Surge

29 Data Gathered by Sweeps  Final Assessment Code Sheet includes Poles Down Primary Conductor Down, Floating or Low Clearance Secondary Conductor Down, Low Clearance, or Attached to Object Equipment Damaged  Transformer, Capacitor, Recloser, Regulator, or Light Hardware Damaged or Missing Guy Wire Slack, Damaged or Broken Tree Trimming Needed Equipment Needing Pick Up Leaning Pole