2009 HURRICANE SEASON PREPARATION B RIEFING

1. 2009 HURRICANE SEASONPREPARATION BRIEFING Florida Municipal Electric Utilities May 6, 2009 Paul Kalv, Director City of Leesburg Electric Department Florida Public Service Commission Docket No. 090000-OT

2. Who We Are

3. City of Leesburg Electric Utility • Lake County - 40 miles Northwest of Orlando • 50 Square mile service territory • Serves Leesburg, Fruitland Park and portions of unincorporated Lake County • 5 Substations and 25 Distribution Feeders • Distribution Miles: 228 OH (58%) & 164 UG (42%) • 22,000 electric customers • 18,500 Residential (83%) • 3,500 Commercial (17%)

4. City of Leesburg Electric Utility • Earned the APPA Reliable Public Power Provider designation 2006 and 2008 (valid for 2 years) • Criteria: Reliability, Safety, Workforce Development, System Improvement • History of assisting other utilities: • Homestead 1992: Hurricane Andrew • Mount Dora 1993: The Storm of the Century • Key West 1998: Hurricane Georges • Next?: We are prepared and willing to help

5. System Design & Hardening Standards • Construction meets NESC 100 mph wind contour • Harden all new and replacement Feeder poles • Underground facilities along major arterials • Participate in Public Utility Research Center wind and overhead to underground research through FMEA

6. System Design & Hardening Standards • Minimal exposure to flooding and storm surge located 60 miles inland • Facilities constructed along front lot lines • Ensure “foreign” utility attachment design standards and inspections

7. System Maintenance & Inspection • 8 Year inspection cycle for 16,500 poles • 10,200 wood (62%) and 6,300 concrete (38%) • 6,220 (38%) poles inspected during CY 2007 • 0.05% Priority reject poles (3 poles) • 2.6% Failed minimum strength and replaced (160 poles) • 1,300+ (8%) poles in be inspected May-June 2009

8. Pole Inspection Benefits • History of wood pole inspection & treatment since 1970s – poles installed during 1940s still in service • Wood pole inspection and treatment is cost effective • 18-24” Excavation Plus Sound and Bore and Supplemental Treatment together with Visual inspection will identify ≈ 98% of reject and priority poles. (Note 1) Recommended to repeat inspection every 6 to 10 years • External and Internal treat as needed to preserve remaining strength and prolong service life • Priority poles reported to utility each day and assigned to crew to replace • Inspector also replaces pole tags and guy markers, repairs pole ground, and reports observed safety hazards • Note 1 : Industry estimate

9. System Maintenance & Inspection • Vegetation management – 4 year trim cycle for feeders and laterals (10 foot clearance) • CY 2008 Vegetation outages • 7 Outages (20%) caused 175,020 CMI (87%) • 27 Outages (80%) caused 26,971 CMI (13%) (CMI = Customer Minutes Interrupted) • Added 4th Tree Crew during 2008 • Budget: $400,000 (8% of Distribution budget)

10. Early Preparation Activities • Review Lake County and City Storm Plans • Revise Electric Department Storm Plan, Plan Coordination meetings, Assignments, and Dry Run • Confirm local motel, restaurant agreements • Update Mutual Aid contact information • Confirm all employees completed appropriate National Incident Management System training

11. Annual Planning Activities “Prepare for the Worst… Hope for the Best” • Coordination involves the entire community: • Verify material storm stock levels • Confirm Contracted Services • Electric Department Initial Damage Assessment assignments • Assist Public Works “First Push” to clear arterial roadways • Verify additional communications equipment availability • Assist Telecommunications utility repair damaged fiber facilities • Coordinate and confirm Building Department repair permit • Confirm retiree, utility construction and ROW clearing contractor availability

12. Pre-Storm Activities • Initiate activities based on projected storm track • Complete Pre-storm department checklists and create restoration work orders • Prepare mobile generators for deployment • Complete personal preparations and confirm personnel assignments • Confirm appropriate local motel, restaurant needs • Confirm Local and FPSC reporting needs & schedule • Maintain restoration activities until wind gusts make work unsafe (35 mph) • “Hunker Down” or other appropriate activity

13. Post Storm Restoration Activities • Perform Initial Damage Assessments • Data sheet and pictures • Request additional resources or offer assistance to others • Prioritize initial restoration activities • Public safety and health facilities • Feeders, portions of feeders, and priority laterals • Dispatch ROW & Distribution Crews • Prepare initial restoration forecasts • Maintain accurate periodic reporting statistics • Ensure restoration activities are progressing without labor, material, or equipment shortages

14. Concerns & Vulnerabilities • We surveyed our members for ideas • Over-subscription of resources for restoration: • Workforce – Independent line crews and tree trimming crews • Supplies – Poles • Housing – Hotel/motel rooms, with utilities reserving rooms 2-3 days ahead, before storms approach • Suggestion: Create ad hoc committee through ESF-12 at State Emergency Operations Center with representatives from each investor-owned utility, and the municipal and cooperative associations to share information and needs as they arise during emergency events. 14

15. Concerns & Vulnerabilities • Transmission system vulnerability • Most municipal electric utilities are transmission dependent – they purchase power from other utilities and receive electricity via the high-voltage transmission system. The most storm-hardened local distribution can still go dark if a transmission line fails. • Keys Energy – Health care after evacuations • Keys are evacuated frequently, along with medical personnel • Keys management is reluctant to allow lineworkers to work without an active emergency room nearby • Have been working with Agency for Health Care Administration to keep medical personnel in area (storm hardened facility), but to no avail • Result – restoration in Keys may be slower than expected 15

16. Concerns & Vulnerabilities • Keys Energy – Storm Hardening – Electric vs. Telecom • About 12,000 poles in Keys Energy service territory • 9,000 owned by Keys Energy • 3,000 owned by AT&T • Poles are intermingled throughout system, and most are joint use • Keys Energy designs distribution system to NESC standard of 150 mph extreme wind load • Local communications company, AT&T, is not required to do so • When AT&T replaces a pole, Keys Energy has agreed to pay incremental cost from standard wood pole to storm-hardened concrete pole. • AT&T continues to own pole. • Keys Energy asks “Is it fair that only they are required to pay the cost of storm hardening when facilities are so obviously intermingled and jointly used?” • Issue may exist elsewhere across Florida 16

17. Questions? Thank you for this opportunity to share our story I look forward to answering your questions