1. Electric Infrastructure Workshop January 23, 2005 Florida Public Utilities Company

2. Florida Public Utilities Company Description Small Investor Owned Electric Utility Small Investor Owned Electric Utility Approximately 27,500 Customers Approximately 27,500 Customers Small Service Territories Located On Amelia Island And In The Florida Panhandle (Marianna) Small Service Territories Located On Amelia Island And In The Florida Panhandle (Marianna) Limited Staffing And Resources Limited Staffing And Resources

3. Hurricane Damage During 2004 and 2005 Hurricane Seasons Only Severe Damage Caused By Tornadoes Associated With Hurricane Ivan Only Severe Damage Caused By Tornadoes Associated With Hurricane Ivan Minimal Damage Sustained From Winds Associated With Seven (7) Named Hurricanes Minimal Damage Sustained From Winds Associated With Seven (7) Named Hurricanes Total Of 74 Poles (0.3% of total) Were Damaged During The Hurricanes Total Of 74 Poles (0.3% of total) Were Damaged During The Hurricanes Total Of 3.25 Miles (0.3% of total) Of Wire Was Replaced During the Hurricanes Total Of 3.25 Miles (0.3% of total) Of Wire Was Replaced During the Hurricanes

4. System Restoration Tornadoes Caused Severe Damage During Hurricane Ivan Tornadoes Caused Severe Damage During Hurricane Ivan Damage From Hurricane Winds Was Minimal In Most Cases Damage From Hurricane Winds Was Minimal In Most Cases Inventory Was Available To Make All Repairs During Hurricane Restoration Inventory Was Available To Make All Repairs During Hurricane Restoration Additional Manpower And Resources Were Available During All Hurricanes Additional Manpower And Resources Were Available During All Hurricanes Longest Customer Outage Was Five (5) Days During Hurricane Ivan Longest Customer Outage Was Five (5) Days During Hurricane Ivan

5. Impact Of System Upgrades Current FPUC Rate Base Is Approximately $37.85 Million Current FPUC Rate Base Is Approximately $37.85 Million Estimated Upgrade Cost Is $41 Million Or 108% of the current rate base Estimated Upgrade Cost Is $41 Million Or 108% of the current rate base 2004 And 2005 Hurricane Related Damage Results Do Not Justify This Expense 2004 And 2005 Hurricane Related Damage Results Do Not Justify This Expense

6. System Studies And Research Due To Small Size And Limited Resources, No Comprehensive Studies Or Research Has Been Conducted Due To Small Size And Limited Resources, No Comprehensive Studies Or Research Has Been Conducted

7. Conclusion With The Exception of Tornadoes Associated With Hurricane Ivan, Minimal Damage Sustained During the 2004 and 2005 Hurricane Seasons With The Exception of Tornadoes Associated With Hurricane Ivan, Minimal Damage Sustained During the 2004 and 2005 Hurricane Seasons Experience And Results Indicate That Preparation And Restoration Were Adequate Experience And Results Indicate That Preparation And Restoration Were Adequate