JANUARY 2007

In This Issue:
  • Letter from the GM
  • OUC Focuses on the Environment
  • Boroughs to Chair State Commission
  • OUC Earns Honors
  • Get OUCurrents
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    • Letter from the General Manager & CEO

    As this new year begins, OUC is building on our success from 2006 to continue providing award-winning reliability and service for our customers. Our goal is to make positive changes in our service to provide even cleaner and more affordable energy to our customers.

    The first of these changes began Jan. 1, when we enacted significant rate decreases, resulting in substantial savings for our customers. Collectively, our customers will save more than $23 million each year. The decreases are a direct result of cost savings through our efforts to effectively budget fuel purchases in a volatile market. Diversifying our fuel supply is key and has long helped us to maintain rate stability.

    Still, it’s important for everyone to recognize that all Florida utilities operate in a fluctuating fuel market. OUC uses a variety of fuels to generate electricity, including coal, natural gas, oil and nuclear and are leading efforts to diversify energy sources by identifying new technologies that focus on alternative fuels and innovative, clean technologies for existing fossil fuels.

    The bottom line for all of our decisions this year will be how they help us support OUC’s mission of providing outstanding performance, unsurpassed value and customer commitment to all of our customers.

    Best wishes for a fabulous 2007.

    Sincerely,

    OUC General Manager & CEO

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      OUC Focuses on Environment with Clean-Coal, Biofuel Energies

    In efforts that lessen the environmental impacts of energy production, OUC has taken a leadership role in the use of available clean technologies.

    In addition to its work to develop a large-scale coal-gasification generator at the Stanton Energy Center, which will enable OUC to generate about 285 megawatts of electricity using innovative clean-coal technologies, the commission has approved the purchase of biodiesel fuel for use by certain fleet vehicles.

    The fuel OUC will use is B20, a blended fuel of 20 percent biodiesel and 80 percent petroleum diesel. A U.S. Department of Energy study showed that the production and use of B20 biodiesel resulted in a 15.66 percent reduction in carbon dioxide emissions.

    “This is going to help the local environment tremendously,” said Alvin Frazier, vice president of corporate services. “OUC strongly supports alternative fuel options that contribute to the reduction of emissions into the environment.”

    B20 can be integrated seamlessly into OUC’s fueling system without any changes to vehicles or fuel storage and distribution equipment.

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      Boroughs Appointed to Chair State Energy Commission

    Many in the Orlando community have had the opportunity to know Tommy Boroughs, an attorney with Holland & Knight who has served in various capacities as a local, state and national leader in the electricity industry.

    The immediate past president of the OUC board of commissioners, Boroughs was recently chosen to serve as the first chairman of the Florida Energy Commission.

    “I am honored to be appointed chair of the Florida Energy Commission at such an important time in determining our state’s energy future,” Boroughs said. “Florida is now facing some of its toughest energy decisions of the past 30 years. The solutions that we embrace today will have lasting impacts on the quality of life and economic viability of our state.”

    The appointment represents a tremendous opportunity for OUC and its customers to help shape important state energy policy. Boroughs is a strong advocate for municipal ownership and control of electric utilities, and for a public voice in planning Florida’s energy future.

    He represented Florida’s public power utilities on the Governor’s Energy Council, which was instrumental in developing innovative ideas that were incorporated into energy legislation approved during the 2006 legislative session.

    Boroughs is past chair of the American Public Power Association (APPA) Policy Makers Council and ex-officio member of the APPA board of directors. The Washington, D.C.-based council promotes federal legislation of importance to community-owned power and provides advice on a broad range of issues to APPA.

    The Florida Municipal Electric Association (FMEA) recently named Boroughs as its 2006 Member of the Year. FMEA represents the unified interests of 33 public power communities across the state that provides electricity to more than 3 million of Florida’s residential and business consumers.

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      OUC Recognized for Efficiency and Reliability

         The Reliable One recently received two important awards and distinctions that further cement its reputation as a leading provider of reliable, low-cost utility service.

    The Association of Metropolitan Water Agencies (AMWA) recognized OUC with its Gold Award for Competitiveness Achievement, recognizing accomplishments in applying competitive business strategies to meet the expectations of drinking water consumers and municipal leaders.

    A primary reason for this recognition was OUC’s $124 million water production modernization and expansion project that resulted in eight interconnected and fully automated water treatment facilities. OUC’s pioneering work with regional partners to implement a comprehensive, integrated water resources plan was also a significant factor. Only six other water utilities in the nation earned the award.

    “Meeting competitive goals for efficiency, cost of operations and quality of service are hallmarks of AMWA’s Gold Award-winning water systems,” said AMWA President Mark Premo. “OUC is forward-looking in its plans to maintain its infrastructure and ensure future water supplies.”

    OUC Named Most Reliable Electric Utility in Southeastern U.S.

    OUC’s second November honor came from PA Consulting Group, a leading management, systems and technology consulting firm, which selected OUC as the most reliable electric utility in the Southeastern United States. Regional winners of the ReliabilityOne™ award were selected based on power-restoration performance and other reliability data.

    The award recognizes OUC’s efforts to prepare for electricity needs during times of crises.

    “We are thrilled to earn this distinction,” said Ken Ksionek, OUC’s General Manager and CEO. “OUC’s employees have worked hard to make us the best-performing electric provider not just in Central Florida, but in the state and the entire Southeast. This is quite an honor.”

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