Unauthorized use of the Transmission System:

Section 11 of Schedule 21-FPL-NED states: “Any use of the Local Network Transmission System that exceeds a) the Transmission Customer’s firm Reserved Capacity at any Point of Receipt or Point of Delivery or b) the Transmission Customer’s non-firm capacity reservation, will be deemed an unauthorized use of the Local Network Transmission System. In the event that a Transmission Customer exceeds its firm reserved capacity or non-firm capacity reservation at any Point of Receipt or Point of Delivery, it shall pay an amount equal to 200% of the otherwise applicable charge for each Kilowatt of the excess, exclusive of any discounts offered to any other Eligible Customer. Such charge shall apply for the length of the reservation period, not to exceed one month. In all cases of unauthorized use of the Local Network Transmission System, the service will be considered non-firm and FPL-NED will be under no obligation to provide any services for such use.”

In accordance with Order 890, the terms and conditions of unauthorized use of FPL-NED’s transmission system are clarified to include the following provisions: The period over which a one-time inadvertent use is penalized is reduced from one month to one day and the penalty must be based on the period of unreserved use rather than the reservation period (¶ 846 lists the guiding principles). For subsequent violations, the assessment for a given duration (e.g., daily) will increase the penalty period to the next longest duration (e.g., weekly). The penalty charge for multiple instances (i.e., more than one hour) within a day will be based on the rate for daily Firm Point-To-Point Transmission Service. The penalty charge for multiple instances isolated to one calendar week will result in a penalty based on the charge for weekly Firm Point-To-Point Transmission Service. The penalty charge for multiple instances during more than one week during a calendar month will based on the charge for monthly Firm Point-To-Point Transmission Service.A transmission customer will also be responsible for ancillary service charges for any unreserved use for the period of such unreserved use. Any tariff revisions required to reflect these clarifications of service will be reflected in revised tariffs that will be filed with the Commission on October 11, 2007.