1. 2008 Hurricane Season Preparedness Briefing Gulf Power Company Presented by Andy McQuagge Power Delivery Services Manager May 1, 2008

2. 2 Storm Preparedness Activities  Storm Hardening Projects and Initiatives  Vegetation Management  Inspections and Maintenance  Extreme Wind Loading Projects  Grade B Construction  Third Party Attachers and Local Government coordination  Storm Restoration and Recovery Plans  Storm Recovery Plan  Southern Company Affiliate/Mutual Assistance Support  Supply Chain  Post-Storm Forensic Teams  Local Government Coordination

3. 3 Storm Hardening Projects and Initiatives Transmission Vegetation Management  230kV ROW vegetation inspection & correction  Inspections are complete  Vegetation hazards identified have been corrected  115kV ROW vegetation inspection & correction  Inspections are 80% complete  Vegetation hazards identified are being corrected  On schedule to be complete by June 1, 2008  46kV ROW vegetation inspection & correction  Inspection patrols scheduled to start May 1, 2008  On schedule to be complete by June 30, 2008

4. 4 Storm Hardening Projects and Initiatives Distribution Vegetation Management  Mainline Annual Trim Schedule ( MATS)  Feeder maintenance on 1/3 of the mainlines (3 year cycle)  225 (mi) completed of the 265 (mi) scheduled for 2008  Mainline Inspection & Correction Schedule ( MICS)  Inspect & correct vegetation hazards on 2/3 of the mainlines  760 (mi) completed of the 803 (mi) scheduled for 2008  All hazards on schedule to be corrected by June 1, 2008  Scheduled Annual Lateral Trimming ( SALT)  Lateral maintenance of 1/6 of the lateral lines (6 year cycle)  310 (mi) completed of the 843 (mi) scheduled for 2008  Storm Hardening Annual Removal Program (SHARP)  In 2007 and YTD 2008, 13,579 danger trees removed. Annual goal is 5,000

5. 5 Storm Hardening Projects and Initiatives Transmission Inspections and Maintenance  The complete transmission system has been inspected aerially once in 2008 (quarterly aerial inspection cycle)  Comprehensive walking/climbing (6 year program)  Commencing June 1, 2008, scheduled completion September 30, 2008  Additional activities –  170 structures storm hardened by installing additional guys (5 year program)  214 wood cross-arms replaced to date (24% of a ten year program)  All steel groundline inspections completed for 2008 (140 structures)  All wood groundline treatment inspections completed for 2008 (1,117 poles)

6. 6 Storm Hardening Projects and Initiatives Distribution Inspections and Maintenance  Distribution Pole Inspections  Transition from 10 year inspection cycle to 8 year cycle in 2007  Contracted inspections to OSMOSE  Met target of inspecting 1/8 of wood poles on distribution system  Joint-Use Audit – Pole Strength Assessments  2007 Pole Inspection Results (500 poles)  Met target of inspecting 500 poles, 41 failures due to loading, 2 failures due to damage. Repairs underway  2008 Pole Inspection Results (500 poles)  516 poles currently being inspected  Conducting semi-annual Third Party Attachers meetings  Face-to-face meetings in all 3 Gulf Power districts held in February 2008  Annual infrared inspections  75% complete  Scheduled completion date: May 1, 2008

7. 7 Storm Hardening Projects and Initiatives  Grade B Construction  Transition to Grade B Construction in January, 2008  Training complete for all field personnel  Extreme Wind Loading Projects  Focus of these projects are interstate crossings and lines serving critical infrastructure facilities including fuel depots, hospitals, and sewage treatment facilities  Storm Hardening Plan as approved, identified 19 projects for 2007/2008. As of May 1 st, 14 completions, 3 under construction and 2 in the design phase.

8. 8 Storm Hardening Projects and Initiatives  Third Party Attachers & Local Government Coordination  Ongoing meetings with Third Party Attachers  Participated in Pubic Information workshop in Escambia County  Primary Sponsor at the My Safe Florida Hurricane Expo in Escambia County during April  Hurricane Preparedness seminars conducted in all counties with local EOC personnel and news media during April  Participated in EOC workshop on hurricane season in Escambia County in March  Bill inserts going out in June giving customers hurricane preparedness and safety information  Three Community Leader Forums scheduled in June and July to discuss issues, including hurricane readiness  Presentation on Storm Preparedness for Escambia Health Care Facilities scheduled for May, 2008

9. 9 Storm Restoration and Recovery Plans  Storm Recovery Plan  2008 Storm Procedures completed  Employee Storm Assignments  Storm training and refresher courses underway  Mutual Assistance  Southern Company Affiliate Support  SEE Mutual Assistance  Supply Chain  Storm Supply materials available by June 1, 2008  Post-Storm Forensic Teams  Contractor hired, 2 trial runs successfully conducted in 2007 to test forensic data gathering system  Local Government Coordination  EOC Representatives assigned, trained and actively engaged in EOC activities

10. 10 Summary – Gulf is Fully Prepared  On target with Transmission and Distribution storm hardening initiatives  On-going coordination with government, community groups, third party attachers, and other utilities  Storm Recovery Plan:  Proven and battle tested  Improvements based on lessons learned  Training and refreshers ongoing  Experienced Teams are ready if needed

11. 11 QUESTIONS?