1. 2006 Hurricane Preparedness June 5, 2006 Sumter Electric Cooperative, Inc R. Ben Brickhouse: Director of Engineering & IT John J. LaSelva: Director of Reliability & Operations

2. SECO Overview 7 Counties in Central Florida 150,000+ members 8.7% member growth rate 2

3. SECO Electrical System Overview Overhead Distribution: – –4537 circuit miles – –149,000 poles – median pole age is 17 yrs Underground Distribution (URD) – –1845 circuit miles Transmission Facilities: – –72 miles of 69kv transmission circuits – –1250 structures 43 Substations 3

4.   Reliability Based Design   On-going Asset Management   Vegetation Management   Restoration Plan Steps to Hurricane Preparedness: 4

5. SECO Reliability Based Design Transmission: – –Joint transmission planning with Progress Energy Florida for capacity and reliability – –Minimize all radial transmission delivery points – –All new transmission structures are “Spun Concrete” versus wood – –Designed per NESC “Extreme” wind loading criteria 5

6. SECO Reliability Based Design Substation: – –All new and renovated substations: “Low Profile” steel “Ring Bus” configured and designed for multiple power transformers with load transfer capability – –All existing and new substations: Connections for SECO’s mobile transformers SCADA control including individual feeder telemetry 6

7. SECO Reliability Based Design Distribution: – –Designed per “Rural Utility Service (RUS)” and “National Electric Safety Code (NESC)” specifications for 100 mph wind loading – –~80% of new subdivision construction is URD – –New OH feeder circuits are constructed to reliability based model feeder standards for maximizing both conductor sizing and sectionalizing capability 7

8. SECO On-Going Asset Management Asset Inspections: – –Transmission: Ground / climbing inspection completed in 2006 56 structures will be replaced with spun concrete poles 5 year cycle – –Thermographic Inspections: Transmission: Annually Substation: Bi-monthly “ALL” OH Feeder Lines: Every 18 months URD Facilities: Reliability dictates 8

9. SECO On-Going Asset Management Distribution: –Pole inspections: Ground line & visual - Current 9 year cycle begun in 1990. Going to 8 yr in 2007. 2003 – 2005: – –37,599 Inspected – –255 Rejected and replaced (0.7% rejection) –URD Inspections: Full inspection was complete in 2000. Will implement an 8 yr cycle in 2007. “State of the Art” fully integrated GIS / Design / OMS / Storm Center Systems – General Electric 9

10. SECO – Vegetation Management 3 year trim cycle of all OH facilities since 1996 Hurricanes in 2004: Trees - Primary cause of outages SECO lost 662 poles in 3 hurricanes (0.4%) Poles Up Wires Down 10

11. Post Hurricane Evaluation of Trim Policies: Conclusions: Trees were major cause of outages Increased tolerance by members for aggressive trimming Increase budget expenditures for long term gains (Increased 30% in 2006) Actions Taken: Entire system assessed by ACRT (Consultant) – –2% trees contacting lines (industry 10%) Revised specifications: – –Species specific – –Increase to remove trees vs. trim – –Implemented “Ground to Sky” for new circuit projects 11

12. BEFORE 12

13. AFTER 13

14. BEFORE 14

15. AFTER 15

16. BEFORE 16

17. AFTER 17

18. BEFORE 18

19. AFTER 19

20. SECO: Disaster Recovery Plan 20

21. Restoration Model PLAN MATERIALLOGISTICS PERSONNEL 21

22. SECO’s Emergency Plan Prior to Storm Season Plan Reviewed / Updated Planning with Local EOC’s Materials Staged Logistics Pre-Arranged –Caterers, fuel, hotels, buses, tents, ice, water, etc. Personnel –Florida / Southeast Mutual Aid, establish contracts with vegetation crews and line crews 22

23. SECO Restoration Priority 1. 1.Transmission Lines 2. 2.Substations 3. 3.Feeders Emergency Services (Hospitals, Special needs Shelters and Shelters) 4. 4.Fused Laterals / Taps 5. 5.Individual Homes 23

24. Customer Newsletter: Explains restoration process at the beginning of storm season Paid Advertisements: Appear in the daily newspapers 1 & 2 days prior to storm impact 24

25. SECO’s Emergency Plan Hurricane Predicted – –Activate Plan (Pull the Trigger) – –Run “Damage Prediction and Manpower” Model: Based on historical damage – –Materials / Manpower / Logistics Activated pre-landfall 25

26. Sept 2004 - Daily MWH Sales “Stick to the Plan” Storm Impact 26

27. Conclusions   SECO currently designs a reliable transmission, substation, and distribution system based on RUS and NESC standards   SECO currently performs inspections on all its assets – frequency is increasing in 2007   SECO has an aggressive vegetation management program that was revised post 2004 hurricanes   SECO has a disaster recovery plan that is reviewed, revised, and institutionalized based on “Lessons Learned” by both SECO and the industry 27

28. Questions? 28