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December 2007

A Year in Review: 2007

In 2007, Florida Keys Electric Cooperative focused on improving the reliability of our electric system, which is currently 99.999% reliable.

37.8 MINUTES "OUT" TO DATE
Through October 1, 2007, FKEC's year-to-date average outage time per member was only 37.8 minutes.

FKEC's annual goal for this statistic is less than 1.22 hours out per member, so we are doing well as of this printing. In March and April, we experienced inadvertent outages caused by relay testing and in May, a burnt recloser coil and two wire down incidents caused Marathon outages.

One interesting incident that did not result in outages was a lightning strike on October 1 that took out our main transmission line from Florida City to Oz Moody Substation in Key Largo. All of our transmission load was automatically shifted to our other transmission line from Florida City to Tavernier so no customers were affected by the lightning strike. Our system worked perfectly.

POWER SYSTEM STORM HARDENING
One of the reasons our system has been so reliable is that over the past several years, FKEC has been stepping up its "storm hardening" efforts to strengthen our electric system. As we have previously mentioned on these pages, FKEC's board adopted the NESC extreme wind standard for new construction and reconstruction of our system last year.

To help meet these standards, FKEC has hired a consulting engineering firm to design storm-hardened poles specifically for local applications. Included will be self-supporting poles for areas that don't have enough room for proper down-guy wires. The study will be complete by the end of the year and in 2008 FKEC will ask pole manufacturers for bids on our designs.
Also in the first three quarters of 2007, our line crews combined their efforts with contract line crews from Glades Utility Service to continue the existing replacement program for worn poles. As of October 2007, a total of 70 of the 222 poles identified have been replaced with new poles.

In addition, FKEC continued its work on the other aspects of its storm hardening program in 2007, including aggressive tree trimming to help ensure system reliability year-round.

FACILITY STORM HARDENING
In 2007, FKEC began to construct new storm-ready facilities on its existing bayside property in Tavernier. The cooperative entered into a contract for $13.67 million to build a category five hurricane rated warehouse/office complex to replace existing storm-vulnerable buildings. Once complete, all of the company's Upper Keys operations will be located in the three-story structure on the same side of U.S. 1. The expected completion is in the Spring of 2009.

The most significant benefit of this new facility will be its ability to withstand a major hurricane. Our bucket trucks, equipment, line and other materials will all be stored inside to avoid damage so we'll be ready to restore power after a storm strikes. It will also contain adequate power generation, fuel storage, water storage, food storage and meal preparation facilities to allow FKEC to operate in a stand-alone mode for at least 72 hours. A large reinforced cafeteria/multipurpose space with moveable partitions and a commercial kitchen will be available to house and feed employees and any outside restoration crews called in to assist.

In addition to its storm resistance, the facility will also provide benefits in terms of energy efficient design and environmental conservation.

FKEC used LEED (Leadership in Energy and Environmental Design) guidelines to help plan a "greener" building. Some of the green features include the following: high efficiency chillers in lieu of standard central air; a louvered "eyebrow" around the top of the building to direct natural light in while keeping heat out; and solar-assist water heating. To capture rain for use on the property, a cistern will collect water from the roof. FKEC is also using recycled building materials where possible and has incorporated an energy efficient cross-ventilation system in the warehouse.

A final additional benefit of the combined warehouse/office will be greater operational efficiency. FKEC's present administrative offices are on the oceanside and the operations complex is across U.S. 1. The new facility will combine these functions for greater operational efficiency, better member service and increased safety. For photos and updates on the construction, visit www.fkec.com.

OUTAGE RESPONSE SYSTEM
FKEC members will soon begin to enjoy even faster response to their outage calls with the help of an advanced outage response system. FKEC has hired a professional project manager to oversee the implementation of a fully automated system that will use live calls to determine if an outage is limited to one house, street or neighborhood or if an entire area is affected.

The new software was installed in November with current, GPS-located data on all of our poles, transformers, lines and other equipment served by the Tavernier substation. FKEC employees will be able to update this database in real time when upgrades, construction or maintenance change the facilities. Marathon will be added to the database next and we will keep adding to the system until all FKEC facilities are recorded. For you, the key to the system is the telephone number associated with your account, so please check your electric bill to ensure that the phone number is current. The outage system is available 24 hours a day by calling 305-852-2431 or 305-743-5344.

Scott is an active member of the Upper Keys community and is a past president, current director and president-elect of the Rotary Club of Key Largo, is a director for the Key Largo Chamber of Commerce and is co-founder and president of the Upper Keys Golf Association.

In 1994, Scott completed the three-year national electrical course for apprentice linemen to further his education in cooperative operations. He is a graduate of Leadership Monroe County Class XI and completed the National Rural Electric Cooperative Association's Management Internship Program in 2005.

Scott graduated from Arkansas State University with a degree in Agriculture Business and Economics in 1986. In 1988, he began his career in the electricity industry when he joined the Rural Electrification Administration (REA) in Washington, D.C. With the REA, he worked first as a Commercial Loan Specialist and was later promoted to Power Requirements Officer before moving to the Florida Keys to join FKEC in 1990.