Susan D. Ritenour Secretary and Treasurer and Regulatory Manager

One Energy Place Pensacola, Florida 32520-0781

Tel 850.444.6231 Fax 850.444.6026 SDRITENO@southernco.com

POWER A SOUTHERN COMPANY

October 28, 2008

Ms. Ann Cole, Commission Clerk Florida Public Service Commission 2540 Shumard Oak Boulevard Tallahassee FL 32399-0850

co s

Dear Ms. Cole:

RE: Docket No. 080001-El

Enclosed are an original and fifteen copies of Gulf Power Company's Request for Confidential Classification regarding certain information submitted by Gulf Power in connection with a Review of Gulf Power's Hedging Information Report in the above referenced docket (ACN 08-221 -1-1).

Sincerely,

~~~~- mv ECR GCX 2 Enclosures OPC

SSC SGA ABM

cc: Beggs & Lane Jeffrey A. Stone, Esq.

@G

CL'K !

4

BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION

IN RE: Fuel and Purchased Power Cost ) Recovery Clause with Generating) Performance Incentive Factor 1 Docket No.: 080001-El

)

CERTIFICATE OF SERVICE

I HEREBY CERTIFY that a true copy of the foregoing was furnished by U. S. mail this %day of October, 2008, on the following:

John T. Burnett, Esq. Progress Energy Service Co. P. 0. Box 14042 St. Petersburg FL 33733-4042

John T. Butler, Esq. Senior Attorney for Florida Power & Light Company 700 Universe Boulevard Juno Beach FL 33408-0420

John W. McWhirter, Jr., Esq. Attorney for Florida Industrial Power Users Group McWhirter Reeves & Davidson P.O. Box 3350 Tampa, FL 33601 -3350

Paul Lewis, Jr. Progress Energy Florida, Inc. 106 E. College Ave., Ste. 800 Tallahassee FL 32301 -7740

Michael B. Twomey Attorney for AARP P. 0. Box 5256 Tallahassee FL 3231 4-5256

Karin S. Torain PCS Administration (USA), Inc. Skokie Boulevard, Ste. 400 Northbrook IL 60062

Karen S. White

139 Barnes Drive, Suite 1 Tyndall AFB, FL 32403

AFLSNJACL-U LT

Mehrdad Khojasteh Florida Public Utilities Company P. 0. Box 3395 West Palm Beach FL 33402-3395

R. Wade Litchfield, Esq. Associate General Counsel for Florida Power & Light Company 700 Universe Boulevard Juno Beach FL 33408-0420

Lee L. Willis, Esq. James D. Beasley, Esq. Attorneys for Tampa Electric Co. Ausley & McMullen P. 0. Box 391 Tallahassee FL 32302

Patricia Ann Christensen, Esq. Office of Public Counsel 11 1 W. Madison St., Room 812 Tallahassee FL 32399-1400

Cecilia Bradley Senior Assistant Attorney General Office of the Attorney General The Capitol-PLOI Tallahassee FL 32399-1050

Florida Retail Federation 100 East Jefferson Street Tallahassee FL 32301

Shayla L. McNeill, Capt. USAF

139 Barnes Drive, Suite 1 Tyndall AFB, FL 32403

AFLSNJACL-ULT

Lisa Bennett, Esq. FL Public Service Commission 2540 Shumard Oak Boulevard Tallahassee FL 32399-0863

Jeffrey S. Bartel Vice President Florida Power & Light Co. 215 S. Monroe Street, Ste. 810 Tallahassee FL 32301 -1 859

Paula K. Brown, Administrator Regulatory Coordination Tampa Electric Company P. 0. Box 111 Tampa FL 33601

Norman H. Horton, Jr., Esq. Messer, Caparello & Self, P.A. P. 0. Box 15579 Tallahassee FL 3231 7

James W. Brew Brickfield, Burchette, et al., P.C. 1025 Thomas Jefferson St., NW Eighth, West Tower Washington DC 20007-5201

Robert Scheffel Wright John T. LaVia, Ill Young van Assenderp, P.A. 225 S. Adams Street, Suite 200 Tallahassee FL 32301

Florida Bar No. 325953 RUSSELL A. BADDERS Florida Bar No. 007455 STEVEN R. GRIFFIN Florida Bar No. 0627569 BEGGS & LANE P. 0. Box 12950 Pensacola FL 32591 -2950

Attorneys for Gulf Power Company (850) 432-2451

BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION

IN RE: Fuel and purchased power cost recovery clause and generating performance incentive factor

1

Docket No.: 08000 1 -E1 Date: October 28,2008

REOUEST FOR CONFIDENTIAL CLASSIFICATION

GULF POWER COMPANY [“Gulf Power”, “Gulf”, or the “Company”], by and through

its undersigned attorneys and pursuant to Rule 25-22.006, Florida Administrative Code, hereby

files a request that the Florida Public Service Commission enter an order protecting from public

disclosure certain documents produced by Commission Staff and Gulf Power in connection with

a Review of Gulf Power’s Hedging Information Report in the above-referenced docket (ACN

08-22 1-1 - 1) (the “Review”). As grounds for this request, the Company states:

1. A portion of the information submitted by Gulf Power in response to

Commission Data Requests and also included in Staffs work papers constitutes “proprietary

confidential business information” as defined by section 366.093(3), Florida Statutes.

2. Specifically, the information relates to contractual matters which would cause

irreparable harm to Gulf Power, the entities with whom it has entered into contracts and, most

importantly, to Gulfs customers if such information was disclosed to the general public. This

information contains details concerning Gulf Power’s hedging activities between January and

July, 2008, including specific price information. Disclosure of this pricing information would

adversely affect Gulfs ability to conduct its hedging activities to the benefit of its customers and

would impair Gulfs ability to enter into contracts for the benefit of its customers. The

information is entitled to confidential classification pursuant to section 366.093(3) (d) and (e),

Florida Statutes.

3. The information filed pursuant to this Request is intended to be, and is treated as,

confidential by the Gulf Power and, to this attorney's knowledge, has not been otherwise

publicly disclosed.

4. Submitted as Exhibit "A" are copies of the subject documents. The information

for which confidential classification is requested is highlighted in yellow. Exhibit "A" should be

treated as confidential pending a ruling on this request. Attached as Exhibit "B" are two (2)

edited copies of the subject documents, which may be made available for public review and

inspection. Attached as Exhibit "C" to this request is a line-by-line/field-by-field justification for

the request for confidential classification.

WHEREFORE, Gulf Power Company respectfully requests that the Commission enter

an order protecting the information highlighted on Exhibit "A" from public disclosure as

proprietary confidential business information.

Respectfully submitted this 28th day of October, 2008.

" J E F F R E ~ A . STOAE Florida Bar No. 325953 RUSSELL A. BADDERS Florida Bar No. 007455 STEVEN R. GRIFFIN Florida Bar No. 0627569 Beggs & Lane P. 0. Box 12950 Pensacola, FL 32591

Attorneys for Gulf Power Company (850) 432-245 1

BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION

IN RE: Fuel and purchased power cost recovery clause and generating performance incentive factor

Docket No.: 080001-E1 Date: October 28,2008

REQUEST FOR CONFIDENTIAL CLASSIFICATION

EXHIBIT "A"

Provided to the Commission Clerk under separate cover as confidential

information.

EXHIBIT "Bll

EXHIBIT "B"

tL .I

SCS Receivable from OPCOs Allocated by Peak Period Load Ratlo

Swap Deal Detail Counterpatty Counterparty CPSettle SoCo SoCo soco Price Pricn SettlePrice SettleAmount

I ContractlD CounterParty DealType DealNumber TransactionDate StartDate EndDate Quantity Price

Svstem - PPLR / 100 BANKAMER SwaD 2007.39915 11/9/2007 17:26 11112008 7:00 2/1/2008 6:OO 77500

H s y s t e m - PPLR / 100 JPMORGAN Swap 2007.3989 11/5/2007 1557 11112008 7:00 2/1/2006 6:OO 77500 -Gas DIy

CONFI DENTM L

I '

- Q Gulf Power Company Fuel Price Hedging Costs -

Dkt 080001-E1 ; ACN 08-221-1-1; - < January-July 2008 Description: 4&33 q ; q Y ' . 1 9 n R A A k5 -

i d Le

.- .~ - - --, . .- . . .. . .. . - . .. .~ .. BANKAMER -134,340 00 0 S (134.340.00) BARCLAYS -153.890.00 0 S (153,890.00) ClBC -142,080 00 0 S (142.080.00)

JPMORGAN -99.030 00 0 S (99,030 00) MlTSUl -143,330.00 0 I (143.330.00) MORGAN 486.040 00 0 S 486.040.00 Suisse -189.430.00 0 5 (189,430.00) Total for GULF 498,350.00 0 S (4BS,350.00) SCS Recolvablo from GULF

7-Dec ($32 1.050 on) ?-Jan 15177.3Mj Lk7) DEUTSCHE -90.450 00 0 5 (90.45000)

ContractlD Swap Deal Detall $ % - t a l 4 Counterparty Counterparty CPSenle SoCo SoCo SoCo soco CountorParty DoalType

50 ABNAMRO Swap 50 ABNAMRO Swap

ABNAMRD Total:

50 BANKAMER Swap 50 BANKAMER Swap 50 BANKAMER Swap 50 BANKAMER Swap 50 BANKAMER Swap 50 BANKAMER Swap 50 BANKAMER Swap

BANKAMER Total:

50 BARCLAYS Swap 50 BARCLAYS Swap 50 BARCLAYS Swap 50 BARCLAYS Swap 50 BARCLAYS Swap 50 BARCLAYS Swap 50 BARCLAYS Swap

BARCLAYS Total:

50 ClBC Swap 50 ClBC swap 50 ClBC Swap 50 ClBC swap 50 ClBC Swap 50 ClBC SWP 50 ClBC Swap 50 ClBC Swap

ClBC Total:

50 DEUTSCHE Swap 50 DEUTSCHE Swap 50 DEUTSCHE Swap 50 DEUTSCHE Swap 50 DEUTSCHE Swap

DEUTSCHE Total:

50 JPMORGAN Swap

2007 39975 11/26/2007 21:35 2007 40043 12/7/2007 1522 2007 40082 12/18/2007 1629 2007 40093 12120/2007 15:44

Y(4.V 2006 371 J 5/17/2006 2120

2006 37987 9/13/2006 15 52 2007 39268 7/12/2007 16 04 2007 39478 1 8/2W2007 16 21 2007 39989 11/28/2007 17 43 2007 40014 1113M007 1625 2007 40053 12/11/2007 1522

2007 39967 llf26/2007 21 19 2007 40037 12/6/2007 15 12 2007 40076 12/17/2007 1531 2007 40104 12/26/2007 16 42

q$- IA

2007 40048 1211On007 15 15 2007 40089 12/19/2007 1508

# - l l v 2006.36823 L 2 / l W 0 0 6 19:lO

ContractMonth Hodgoblonth Puantlty Prlce EJan &Jan

8Jan &Jan &Jan &Jan &Jan &Jan &Jan

&Jan &Jan 8 Jan &Jan &Jan 8-Jan 8Jan

&Jan &Jan &Jan &Jan &Jan 8Jan &Jan &Jan

&Jan &Jan 8-Jan &Jan &Jan

8Jan &Jan

&Jan &Jan &Jan 7-Dec 7-Dec 7-Dec 7-Dec

&Jan &Jan 8Jan 8Jan 7-Dec 7-Dec 7-Dec

&Jan 8-Jan &Jan &Jan 7-Dec 7-Dec 7-Dec 7-Dec

&Jan 8Jan &Jan 7-Dec 7-Dec

1ooM) 2MMo

1ooM) 10000 10000 60000 40000 1 OOOO 10000

10000 1OMx) 20000 2OMx) 60000 3ooM) loo00

1 0000 ZOOM) 10000 2ooM) 6oooO loo00 ZOO00 3oooo

10000 loo00 20000 lo000 30000

8Jan &Jan loo00

hdox NYMEX LD NYMEX LD

NYMEX LD NYMEX LD NYMEX LD NYMEX LD

I

NYMEX LD NYMEX LD NYMEX LD NYMEX LD NYMEX LD

NYMEX LO NYMEX LD NYMEX LD NYMEX LD NYMEX LD

NYMEX LD NYMEX LD NYMEX LD

NYMEX LD

CUNFIOENTIAL

GULF GULF GULF GULF GULF GULF GULF

GULF GULF

GULF GULF GULF GULF GULF GULF GULF GULF

JPMORGAN Total:

50 MlTSUl Swap 50 MlTSUl Swap 50 MlTSUl swap 50 MlTSUl swap 50 MITSUI swap 50 MlTSUl Swap 50 MlTSUl Swap

MlTSUl Total:

50 MORGAN Swap 50 MORGAN Swap

MORGAN Total:

50 Suisse Swap 50 Suisse Swap 50 Suisse Swap 50 Suisse Swap 50 Suisse Swap 50 Suisse Swap 50 Suisse Swap 50 Suisse Swap

I 'L

3

Lf

w.6

2007.39971 11/26/2007 2127 2007 40032 12/5/2007 1451 2007 4007 12/14/2007 15:33

2007 40008 11/29/2007 1533 2007 40021 12/5/2007 1529 2007 40059 12/12/2007 15:05

2007 401 12/21/2007 1522

&Jan &Jan 8Jan &Jan &Jan %Jan &Jan

&Jan 8-Jan

&Jan 8-Jan 8Jan &Jan &Jan &Jan 8-Jan &Jan

8Jan 8-Jan &Jan 8Jan 7-Dec 7 - I C 7-Dec

8-Jan &Jan &Jan &Jan 7-Dec 7 - I C 7-Dec

8-Jan 8-Jan

8-Jan 8-Jan &Jan 7-Dec 7-Dec 7-Oec 7-Dec 7-Dec

loo00 2owO loo00 10000 Zoo00 IMXH) 20000

1 WOO loo00 loo00 loo00 6ooM) loo00 3ooM)

Zoo00 4 m

10000 Zoo00 20000

130000 loo00 1 OOOO 70wO 30000

K

- % Gulf Power Company Fuel Price Hedging Costs - r - Dkt 080001-E1 ; ACN 08-221-1-1; < January-July 2008 - 43 Description: M . s : * \ 9 >I - t r ~ n s & i ~ ~

0 AN KA M E R BARCLAYS ClBC CONOCO DETM DELlTSCHE EPPS JPMORGAN MlTSUl MORGAN Suisse Total for GULF

-66.190 00 -58.650 00 0 -58,650 00 -34.990 00 0 -34.99000

0 0 0 0 0 0

-52.740 00 0 -52.74000 0 0 0

-41.220 00 0 -41,22000 -41.790 00 0 -41,79000

-680 0 -680 -43.600 00 0 43.60000

T O W by Hedge Mmlh 7-Jan 0946 (ItlJ 00) 7-Feb

-348.S80.00 0 -346,080.00 SCS Recelvable from GULF

Swap Deal Delall qx- 1,2 adz:2 Counlamrrtv Countamartv CPSeItla SoCo SoCo SoCo ‘SoCo OpCo ConlracllD CounlorParly DeaITi&\ DeaINumber IrranractlonDale ConWactMonlh HedaeMonlh Quantltv Prlce

50 ABNAMRO Swap . 8-Feb 50 ABNAMRO Swap 8-Feb

ABNAMRO Total:

50 BANKAMER Swap 50 BANKAMER Swap 50 BANKAMER Swap 50 BANKAMER Swap 2008 40137 1/4/2008 15:32 50 BANWMER Swap 2008 40206 1/24/2008 14:46

BANKAMER Total: aq- 2 .z

50 BARCLAYS 2006.3719. 5/17/2006 2120 50 BARCLAYS 2006 37987 9/13/2006 15:52 50BARCLAYS SF-’[ 2007 39268 1 7/12/2007 16:04 50 BARCLAYS Swap 2007.39478 8/20/2007 16:21 50 BARCLAYS Swap 200840163 1/15/2008 1510

BARCLAYS Total:

50 ClBC 50 ClBC 50 ClBC Swap 50 ClBC Swap 1.2007 39563 h 7 / 2 0 0 7 17:55 50 ClBC Swap 2008 40132 1/312008 1547 50 ClBC Swap 2008 40159 1/14/2008 1550 50 ClBC Swap 2008 40198 1/23/2008 14:47

ClBC Total:

50 50 DEUTSCHE DEUTSCHE Swap Swap “1 ?yJ;;;i!6&= ;;;;; 50 DEUTSCHE Swap 2007.39244 7/6/2007 18:55 50 DEUTSCHE Swap 2008.40143 1/8/2008 1520 50 DEUTSCHE Swap 2008 40168 1/16/2008 15 46

DEUTSCHE Total:

50 JPMORGAN S w a ~ 9 * ~ ’ ~ 2 0 0 6 50 JPMORGAN Swap g$ -1,32006 50 JPMORGAN Swap I 2007

8-Feb 8-Feb 8-Feb 8-Feb 8-Feb

8-Feb 8-Feb 8-Feb 8-Feb 8-Feb

8-Feb 8-Feb 8-Feb 8-Feb 8-Feb 8-Feb 8-Feb

8-Feb 8-Feb 8-Feb 8-Feb 8-Feb

8-Feb 8-Feb 8-Feb

8-Jan 8 Jan

8Jan &Jan 8Jan 8-Jan 8Jan

8 Jan 8Jan 8-Jan &Jan &Jan

&Jan &Jan 8Jan &Jan 8Jan &Jan &Jan

8-Jan &Jan &Jan &Jan 8-Jan

8Jan &Jan 8-Jan

looW ZMXH)

1ooW 10000 1ooW 100M) 1Mxx)

looW 1ooM) 20000 2oOoo 10000

low0 20000 10000 Zoo00 20000 2ooW looW

10000 10000 20000 20000 10000

10000 1Oooo

lndu Pll +YMEXLD 5-7

NYMEXLD L

NYMEXLD 5-q NYMEXLD NYMEX LD L

NYMEX LD NYMEX LD NYMEX LD

NYMEXLD $-q NYMEX LD NYMEX LD NYMEX LD 1

NYMEX LD

NYMEX LD

Prlco Index

NYMEX LD NYMEX LD

NYMEX LD

NYMEX LD NYMEX LD NYMEX LD

NYMEX LD NYMEX LD

~~~~

SettlePrlco S s s f

s s s f s I

5 S s S s I

s S s s s S s t

f s s s s I

s s S

CONFI DENTI At

v) +I

8 U I

50 MlTSUl Swap %$d.32006 36fJ%t-2~~4iz006 17:04 50 MlTSUl 2006 37376 6/8/2006 14:45 50 MlTSUl zzi 1 2006 38281 12/22/2006 17:06 50 MITSUI Swap 2007 39198 6126/2007 2030 50 MlTSUl Swap 2008 40128 1/2/2008 15:14 50 MlTSUl Swap 2008.40155 111 112008 17% 50 MITSUI Swap 2008 40213 1/25/2008 152.8

Swap Y$-'*' 2007 39345 , 7/25/2007 1726

MlTSUl Total:

MORGAN Total: 1 qq -2.3

50 MORGAN

8-Feb &Jan 8-Feb &Jan 8-Feb %Jan 8-Feb &Jan 8-Feb &Jan 8-Feb &Jan 8-Feb 84an

8 f e b 8-Jan

CONFIDENTIAL

N

P 3-

1

OPC GULF MPC SPC 101.1

42 15119% K 0275% I owe% 104153%

loo oooox f I1 17@02) I 11705200)

P

I _-

CONFIDENTIAL

17.052 W

A I B I C l o 1 E 1 F I G I H I I 1 J I K l L I M I N I 0 1 P 1 I I I I I I I I I I I

4 ICounter Party ISwap Total IOptlon TolCounter Party Total I I I I I I I I I 1

2 lnvolce for GULF for the NYMEX Seltlement for Mar 2008 212M001 3 Totals by

5 ABNAMRO 20,900 00 0 20.90000 - 6 BANKAMER -31.000 00 0 -31.00000

50 BANKAMER Swap 50 BANKAMER Swap

BANKAMER Total: 50 BANKAMER Swap .

2006 37092 2006 3794

. 2007 39672

50 BARCLAYS Swap 50 BARCLAYS Swap 50 BARCLAYS Swap 50 BARCLAYS Swap

BARCLAYS Total:

2006 3719 2006 37987 2007 39268 2007 39478

Gulf Power Company Fuel Price Hedging Costs Dkt 080001-E1 ; ACN 08-221-1-1;

h' January-July c 2008 Description: &dci ;cg! \/A@-Sk.& -5

I

2 \

rb

Y

BARCLAYS ClBC CONOCO DETM DEUTSCHE EPPS JPMORGAN MlTSUl MORGAN Suisse Total for GULF

-5.100 00 0 -119,18000 0

0 0 0 0

-35.500 00 0 0 0

15.350 00 0 -59.875 00 0 18,000.00 0

200 0 -196.205.00 0

-5.100.00 -119,18000

0 0

0 15.350 00

Totals by Hedge MOnlh Feb-08 (S1Sd.205 001 Mar-08

-35.500 00 ToIal (S166,XG "oj

-59.875 00 18,000 00

200 -196,205.00 SCS Payable to GULF

Swap Deal Detail CounterParly DealType DealNumber TransactlonDate ContractMonlh

50 ABNAMRO Swap t#,1.~2006 38045 9/21/2006 13:30 8-Mar 50 ABNAMRO Swap \ 200739642 9/18/2007 1826 &Mar

Counterr" Counterparty CPSettle SoCo SoCo Price

soco soco ContractlD HedpeMonth

8-Feb 8-Feb

8-Feb 8-Feb 8-Feb

8-Feb 8-Feb 6-Feb 8-Feb

8-Feb 8-Feb 8-Feb 8-Feb 8-Feb 8-Feb 8-Feb 8-Feb 8-Feb

8-Feb 8-Feb 8-Feb 8-Feb 8-Feb 8-Feb

8-Feb 8-Feb 8-Feb 8-Feb 8-Feb

Quantity loo00 20000

10000 iwoo 10000

10000 10000 20000 20000

10000 20000 10000 2 m o

150000 30000 loo00 1 Do00 10000

10000 loo00 20000 20000 30000 1 0000

10000 loo00 10000 2 m o 10000

5

I ABNAMRO Total: 124) 4/25/2006 15:OO

9/8/2006 16:09 9/20/2007 16:20

8-Mar 8-Mar 8-Mar

8-Mar 8-Mar &Mar 8-Mar

8-Mar 8-Mar 8-Mar 8-Mar 8-Mar 8-Mar 8-Mar &Mar 8-Mar

8-Mar &Mar 8-Mar &Mar &Mar 8-Mar

GULF GULF GULF

GULF GULF GULF GULF

GULF GULF GULF GULF GULF GULF GULF GULF GULF

GULF GULF GULF GULF GULF GULF

5/17/2006 2120 9/13/2006 1552 7/12/2007 16.04 8/20/2007 1621

50 ClBC 50 ClBC 50 ClBC 50 Cl0C 50 ClBC 50 ClBC 50 ClBC 50 Cl0C 50 ClBC

ClBC 1

Swap Swap Swap Swap Swap Swap Swap Swap Swap

'otal:

2006 37134 2006 38299 2007 39219 2007 39563 2008 40253 2008.40267 2008.40282 2008 40289 2008 40302

1 5/3/2006 13.52 12/27/2006 21 46 6/29/2007 17 21 8/27/2007 17 55 2/8/2008 15 35

2/13/2008 16 19 2/19/2008 19 39 2/21/2008 15 55 2/26/2008 15 32

50 DEUTSCHE SwapuV- /.'f2006 37165 50 DEUTSCHE Swap 2006 3802

50 OEUTSCHE Swap 2008 40263 50 DEUTSCHE Swap 2008.40273 50 DEUTSCHE Swap 2008 40306

DEUTSCHE Total:

YIw2006 18 45 9/18/2006 1524 7/6/2007 18 55

2/12/2008 15 23 2/14/2008 1613 2/27/2008 15 49

5

50 JPMORGAN Swap&1.42006 36823 2/15/2006 19.10 8-Mar 50 JPMORGAN Swap \ 2006.37967 9/12/2006 16.00 8-Mar

GULF 50 JPMORGAN Swap 1 2007 39212 " o 7 21:26 8-Mar 50 JPMORGAN Swap 4 2007 39652 9/18/2007 1859 8-Mar 50 JPMORGAN ~ w a p N - / , > ~007.39661 9 " o 7 17:03 &Mar

C 0 N F ! 0 ENTl AL

50 JPMORGAN Swap&,(.$200739666 50 JPMORGAN Swap 2008.40228 50 JPMORGAN Swap 2008 40257 50 JPMORGAN Swap 2008 40286

JPMORGAN Total:

50 MlTSUl 2006 37376 2006.38261 2007.39198

50 MlTSUl 50 MITSUI 50 MlTSUl Swap 50 MlTSUl Swap 2008.40233 50 MlTSUl Swap 2008 40277 50 MlTSUl Swap 2008.40297

MlTSUl Total:

50 MORGAN swap ~ 1 . ( ~ 0 0 7 . 3 9 3 4 5 MORGAN Total:

2006 37273 2006 38213

50 Suisse 50 Suisse Swap 50 Suisse Swap 2007.39488

Sulise Total:

I v) C v1

5

F I G I H I 1 1 9/20/2007 (6.08 &Mar 8-Feb loo00 1/31/2008 15.27 &Mar 8-Feb loo00 2 1 1IZ008 15.27 8-Mar 6-Feb Zoo00 2/20/2008 1 5 : s 84ar 8-Feb loo00

2/14/2006 17 04 &Mar 8-Feb loo00 6/8R006 14 45 6-Mar 8-Feb IO000

12/22/2006 17 OB 8Mar W e b loo00 8/28/2007 20 30 &Mar 8-Feb 1oM)o 2/1/2008 15.25 8-Mar 8-Feb 3ooM)

2/ly2008 15 58 &Mar &Feb SOOOO 2nW008 15 43 6-Mar BFeb loo00

7/25/2007 17% &Mar 8-Feb ZMXM

5/24/2006 20:13 8-Mar 8-Feb loo00 125i2006 15:38 &Mar 8-Feb Zoo00 8/21/2007 14:ll 8-Mar 8-Feb Zoo00

-7,

-z

-L,

CONFIDENTIAL

Page 1 of 2

Curl, Charlotte Gulf Power Company Fuel Price Hedging Costs Dkt 080001-EI ; ACN 08-221-1-1; -

Jan ary-Jul 2008 Description: d+ IV - f r ~ n-s 6&+5 From: Kilgore, Bronson

Sent: Friday, March 28, 2008 10:27 AM 1 1

To:

cc: Boyett, C. Shane

Subject : Attachments: Gulf invoice Asian 0ption.doc; April - May Asian Option System trade.xls

Curl, Charlotte; Shimel, Paul D.; Ball, H. Rusty; Peters, Jocelyn P.; Moore, Lucresha M.

FW: Nymex asian otm options

4-3 Gulf should make a payment of $4,035.91 to SCS on March 31, 2008 for the option premiums listed below. The deal settlement is two business days, so that is the reason for the short turn around time. If you have any questions, please let me know. Bronson

From: Gary, Tonya M. Sent: Friday, March 28, 2008 9:13 AM To: Kilgore, Bronson Subject: FW: Nymex asian otm options

From: Gary, Tonya M. Sent: Thursday, March 27, 2008 11:31 AM To: Ankar, Tony; Hughes, Paul Cc: Haygood, Jon; Norton, Bill; Bush, Mike (SCGEN); Walding, Becky H.; Sorrell, Tim D.; Carner, David E.; Phillips, Tim (SCS) Subject: RE: Nymex asian otm options

Asian Option for April - May 2008 executed at:

i Total Swap

Month Contracts Reference Strike

/I Apr-2008 c. *

May- $7 2008 ,)

5,00O/day

2,50O/day

Deal # - 2008.40456

Please let me know if you have any questions.

Tonya M. Gary Southern Conzpariy Generation - Fuel Services (205) 257-1278 - OfJice (205) 257-6803 - FCU

JPMorgan Offer

P

Premium

CON FI OENTI AL From: Ankar, Tony Sent: Thursday, March 27, 2008 8:57 AM To: Hughes, Paul; Gary, Tonya M.

8/22/2008 . - qy

’ + ---- - . - - ~ ------ 9 c(6-3, I

A page z or L Cc: Haygood, Jon; Norton, Bill; Bus,., ,+like (SCGEN); Walding, Becky H.; Sorrt,,, Tim D. Subject: Nymex asian otm options

To confirm, we would like to execute the following trades as hedge positions against existing forward system sales.

I * Buy an asian option on 5,000 mmBtu/day, p u t of the money strike, April Nymex (Strike vs average of 19 fixings May daily sett ements/3 June daily settlements).

2 * Buy an asian option on 2,500 mmBtu/day, p u t of the money strike, May Nymex (Strike vs average of 20 fixings June daily set ements/2 July daily settlements).

Thanks, Tony

Gulf Power Company Fuel Price Hedging Costs Dkt 080001-E1 ; ACN 08-221-1-1;

January-July 2008 Description: AClrhQ X%&L&&< ...........................

I / Tony S. Ankar Southern Company Tel (205) 257-5700 Fax (205) 257-5786 Mobile (423) 505-5456 tankar@southernco.com

CONFIDENTIAL 8/22/2008 Y t - 3 . 2 ,

0 z n - n U m

o

9 8 6

j OIOOs"l %I$ fis"OiI I%iOOI $1 Illis" OIIIIfJ

i

i

Qt- 3.3

. / '

A Trade Date

1 4/1/2008 4/2/2008

3 4/3/2008 '4 4/4/2008

4/7/2008 ' 4/8/2008 4/9/2008

4 4/10/2008 a 411 112008

4/14/2008 I' 411 512008 i: 4/16/2008

411 712008 ! '/ 411 812008 ': 4/21/2008 t g 4/22/2008 :" 4/23/2008 1 f{ 4/24/2008 C 4/25/2008

c3 4/28/2008 ' 4/29/2008

1 'L 4/30/2008 23

Deal 2008.40456

25

Contract 8-May 8-May 8-May 8-May 8-May 8-May 8-May 8-May 8-May 8-May 8-May 8-May 8-May 8-May 8-May 8-May 0-May 8-May 8-May 8-Jun 8-Jun 8-Jun

Average

Strike

In the money

Price Gulf Power Company Fuel Price Hedging Costs

Dkt 080001-E1 ; ACN 08-221-1-1;

i I Description:

Settlement for April 08 contract

April MMBtu 150,000

Total Settlement 38,297.73

loperating Co. IPeak Period Load Ratio APC 33.1 91 7% 12,711.67 GPC 42.7589% 16,375.69 GULF 6.8275% 2,614.78 'I..q -(I MPC 6.8066% 2,606.77 SPC 10.41 53% 3,988.82 Total 100.0000% 38,297.73

CONFIDENTIAL

nARCU*S 135.7wm Clec 559.m w CONOCO 0 M l U 0 DEUTSCHE ~7.7-m EPPS 0 JPUOROAN itsram UIlSV( l8SSSODO UOROkN w x e m 6.4.- ICS*ylDO 1.w u OULF i.wz.au DO

0 IU.75000 O W" 0 0 0 0 0 n7.7cnm 0 0 0 116.3Y)m 0 l l S 4 6 0 0 0

Io CIBC a CIM: m cinc so cmc

cinc a cinc a cinc a cinc UJ Clec Y) ClBC Io CIBC Io Clec a Clnc

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m CIBC

50 cmc clre low:

60 OEUTSCHE 60 DEUTSCHE Io OEUTSCHE Io OEUTSCHE Io OEVlSCHE W DEUTSCHE IO niuTscne

mulacI(F 1.w:

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5Q JPUORObN 50 J M R O I N Io JPUOROAN 54 JPUORQAN 60 JPU)ROAN UJ JPUOROLN

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nu(." 1.W:

Gulf Power Company

Description: 0 9 ,'M 7 r - s d i

Fuel Price Hedging Costs Dkt 080001-E1 ; ACN 08-221-1-1;

January-July 2008

( J

A CPI C N

4 c D E

Trade Date I 511 12008

5/2/2008 5/5/2008

'4 5/6/2008 5 5/7/2008 6 5/8/2008 ? 5/9/2008 5/12/2008

G 511 3/2008 ! 3 5/14/2008

511 512008 1% 511 612008 I S 5/19/2008 1+ 5/20/2008 'f 5/21/2008 !k 5/22/2008 12 5/23/2008 !g 5/27/2008 i? 5/28/2008 ig 5/29/2008 ".[ 5/30/2008 2 2

t

Deal 2008.40585

Contract

Average

Strike

In the mol

Price Jun-08 Jun-08 Jun-08 Jun-08 Jun-08 Jun-08 Jun-08 Jun-08 Jun-08 Jun-08 Jun-08 Jun-08 Jun-08 Jun-08 Jun-08 Jun-08 Jun-08 Jun-08 JuI-08 Jul-08 Jul-08

May MMBtu 77,500

Total Settlement 97,681 .OO

loperating Co. APC 33.1 91 7% 32,421.98 G P C 42.7589% 41,767.32 GULF 6.8275% 6,669.1 8 qe< MPC 6.6066% 6,648.75 SPC 10.41 53% 10,173.77 Total 100.0000% 97,681 .OO

IPeak Period Load Ratio

JP Morgan

CON F I D ENTl AL

Gulf Power Company Fuel Price Hedging Costs Dkt 080001-E1 ; ACN 08-221-1-1:

Settlement for May 08 contract

1 GULF

1 OULF i, OULF GULF

'>GULF

!I GULF :?. GULF f 3 GULF !y GULF I C GULF !; GULF

GULF f . GULF I.

: / GULF it GULF

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._

76 :;; " L 7

50 DEUTSCWE 50 DEUTSCYE 50 DEUTXHE 50 DEVTSCHE Y) DEUTSCHE Sa DEUTSCHE 50 DEUTSCME 50 DEUTfiCHE 50 DEUlSCHE 50 DEUTSCHE 50 DEUTSCHE

OEUTSCWE TOW:

50 MlTSUl 50 U1TSUI 50 UTSUI 50 &UT*", 50 MRSUI 50 MITSUI 50 MITSUI 50 WTSUl

YlTSUl TO,*:

50 MORGAN 50 WRGAN 50 MORGAN

YOROAN 1.W.

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bhn

chn ahn

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CONFl DENTIAL

A l e 1 C I D I € 1 F 1 G I H I I 1 J I K I L I M I N 1 0 I P I (I Settlement Updrted

May Contract Contract Hedge Counterparty Dlrcount Previous amount Updated Selllennnt amount 1 Settlement OpCo Perlod Perlod Index SoCo Prlce .NYMEX Fador Volume galn/(losr) VO~UIM galn/(lorr) Dlfference 2 A X Map08 May-08 10 925 NYMEX LD 11 28 0 190.000 (67.450 00) 60.W (21.300 00) S 46.15000 - 3 GPC Map08 May-08 10.925 NYMEXLD 11.28 0 310.000 (110,050.00) 200,wO (71.000.00) S 39.050.00 - 4 [GULF May-OB May-08 10.925 NYMEX LD 11 .ze 0 50.000 (17.750.00h 150.ooO (53.250.00) I (35.5M).W)] qb-b 5 MPC May-08 May-08 10 925 NYMEX LD 11 28 0 60.000 (21.30000) 200.MK) (71.ooO00) S (49.700 00) 6 610.000 (216.550) 610.000 (216.550) S 7 a- Y n Z R

rvationDale DealNumber DealType 4/30/2008 2008 40571 Swap

Jpdate 4/30/2008 2008 40571 Swap

5/22/2008 2008 40571 swap

FASBType RegAssel RegAssel RepAssel RegAssel

RegAssel RegAssel RegAsSel RegASsel

RegASSel RegASSel RegAssel RegAssel

Book APC GPC GULF MPC

APC GPC GULF M P C

APC GPC GULF MPC

StartDale EndDale 6/1/2008 613W008 6/1/2wB 6130/2008 6/1/2008 8AO/2OOa 6/1/2008 MJW008

6/1/2008 6/30/2008 6/1/2008 6/3W2008 6/1/2008 6/3012008 6/1/2008 6/3W008

6/1/2008 613012008 6/1/2008 613W008 6/1/2008 613012008 61112008 6AW008

HemeMOnlh YlR008 Yli-2008 5/1/2008 5/1/2008

5/1/2008 5/1/2008 YlnOo8 Yl/2W8

5/1/2008 5/1/2008 5/1/2wB 5/1/2008

Cwnlerparly Volume Index

190.000 NYMEX LD 310.000 NYMEXLD 50,000 NYMWLD 60.000 NYMEX LD

610.000

60.000 NYMEXLD 200.000 NYMEXLD 150.000 NYMEX LD 200,000 NYMEX LD 610.000

60,000 NYMEXLD 200.000 NYMEX LD 150.000 NYMEX LD 200.000 NYMWLD 610,000

DiscFactor MTMValue 0 99550616 (44.827 64) 0 99550616 (73,139 84) 0.99550616 (11.796 75) 099550616 (14.156 10)

0 99550616 (44.827 64) 0 99550616 (73.139 84) 099550616 (11,79675) 099550616 (14.156 10)

0 99701003 36.909 31 099701003 123,031 04 0 99701003 92.273 28 0 99701003 123,031.04 1

CONFIDENTIAL

Io mu. Io SU." Io su(s.. Io W". Io sul... e W," Io W".

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CONFl DENTI AL

BARCLAYS 0 0 0 0 0 0

CONOCO DETM

0 0 0 0 D 0 _ _

DEUTSCHE 0 0 0 EPPS 0 0 0 JPMORGAN 0 0 0 MlTSUl 0 0 0 MORGAN 0 0 0 Suisse -561.348 00 0 -561.348.00 Total for GULF -561,348.00 0 -561,348.00 SCS Recelvable from GULF

Swap Deal Detall Counterparty Counterparty CPSettle soco soco soco SettlePrice SettleAmo n

50 Suisse Swap 2008.40856 6R4R008 16:26 8-Jul 8-JUl 310000 Index Gas Dly a Contract10 CounterPatty DealType DealNumber TrannctlonDate ContnctMonth HedgeMonth Puantlty Prlce

Sulrte Total: ( # ,

VI La Y

8

%-7

CONFl DENTI AL

I

k h C"

h. ..I h h LI k

LI k LU

LI ..I

LI t-.. L" L"

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Gulf Power Company Fuel Price Hedging Costs Dkt 080001-E1 ; ACN 08-221-1-1;

January-Jul 2008 Description: Qc, lq -L **Ai&

I /

i 1

J

rt nN FI nFNTl AL

Gulf Power Company Fuel Price Hedging Costs Dkt 080001-E1 ; ACN 08-221-1-1;

pr

GULF POWER COMPANY Docket No. 080001 -El

Hedging 7 Item No. 2 Page 2 of 6

Build Hedge Posit

-I-

f

Why do we Roll & Unwind?

:ions over time

3

4

JGj? SOURCE CONFIDENTIAL Z b

2 4 - P . 1

Gulf Power Company Fuel Price H, _.ng Costs GULF POWER COMPANY -- ~

Dkt 080001-E1 ; ACN 08-221-1-1; January-July 2008.

. T, g ,-.J Description: .Ce 8. Y lr-9 ‘ 4

Docket No. 080001 -El Hedging 7 Item No. 2 Page 3 of 6

I 2 P Y

Why not just hedge one month forward and skip the “rolling” process?

A B L The Roll Transaction

Sell BUY December January

Fixed Price . Fixed Price

NYMEX LD NYMEX LD .

SOURCE @ * CONFl !lENTl AL 2 )

Gulf Power Company Fuel PriL- Hedging Costs Dkt 080001-E1 ; ACN 08-221-1-1;

January-July 2008 Description: B L4,'L-D -1 J%DAch9-#iP

G c GULF POWER COMPANY

Docket No. 080001-El Hedging 7 Item No. 2 Page 4 of 6

I 1

The Unwind Transaction

Svnthetic Deilv Settlement

Fired Price,

NYMEX LO

Dailv Burn Volatilitv

7

Summary

n

SOURCE t9 CONFIDENTIAL 4

Ctb- 2.3

-c 00

'! I

EXHIBIT C Line-by-Line/Field-bv-Field Justification Line(s)/Field(s) Justification Page 1 of 23 Columns J, L-0, Lines 17-20,

Page 2 of 23 Columns J, L, M and 0 in their entirety Column P, Lines 21 -22,253 1,34-40,43-50, 53- 57 and 60.

This information is entitled to confidential classification pursuant to $366.093(3) (d)- (e), Florida Statutes. The basis for this information being designated as confidential is more fully set forth in paragraph 2.

Page 3 of 23 Columns J, L, M, and 0 in their entirety Column P, Lines 61-68,71-77,80-81, and 84-91. Column Q, Line 2 Column R, Line 3

Page 4 of 23 Columns J, L, M and 0 in their entirety Column P, Lines 23-24,27-3 1,34-38,4 1-47,50- 54 and 57-60.

Page 5 of 23 Columns J, L, M and 0 in their entirety Column P, Lines 61-66,69-75,78, and 81-85.

Page 6 of 23 Columns A-E in their entirety

Page 7 of 23 Columns J, L, M and 0 in their entirety Column P, Lines 22-23,26-28,31-34,37-45,48- 53, and 56-60.

Page 8 of 23 Columns J, L, M, and 0 in their entirety Column P, Lines 61-64,67-73,76, and 79-81

Page 9 of 23 Columns A, C and D, Lines 2-3 Column By Line 1

Page 10 of 23 Column A, Lines 1-2

Page 11 of 23 Columns A-D in their entirety Column E, Lines 1-45

Page 12 of 23 Column A, Lines 1-25

Page 13 of 23 Columns A-D in their entirety Column E, Lines 1-59

Page 14 of 23 Column A, Lines 1-24

Page 15-23 Columns A-D in their entirety Column E, Lines 1-59

Page 16 of 23 Columns K,L,M,P and Q, in their entirety

Page 17 of 23 Columns A-D in their entirety Column E, Lines 1-66

Page 18 of 23 Columns J, L, N, 0 and P, Line 22

Page 19 of 23 Columns A-D in their entirety Column E, Lines 1-90

Page 20 of 23 Column A, Line 1

Page 21 of 23 Column A, Lines 1 and 4 Column B, Lines 2-3 Column C Lines 1 and 3

Page 22 of 23 Columns A-C, Lines 1-3

Page 23 of 23 Columns A-B, Lines 1-20 Columns C-D, Lines 1,4- 16 Column E, Lines 1-20

STATE OF FLORIDA COMMISSIONERS: MATTHEW M. CARTER 11, CHAIRMAN LISA POLAK EDGAR ANN COLE KATRINA J. MCMURRIAN COMMISSION CLERK

OFFICE OF COMMISSION CLERK

NANCY ARGENZIANO (850) 413-6770 NATHAN A. SKOP

ACKNOWLEDGEMENT

DATE: October 29,2008

TO:

FROM: Ruth Nettles, Office of Commission Clerk

RE: Acknowledgement of Receipt of Confidential Filing

This will acknowledge receipt of a CONFIDENTIAL DOCUMENT filed in Docket Number

080001 or, if filed in an undocketed matter, concerning certain information submitted in

connection with Review of Gulfs Hedging Information Report (CAN 08-221-1-1), and filed on behalf

of Gulf Power Companv. The document will be maintained in locked storage.

If you have any questions regarding this document, please contact Marguerite Lockard,

Deputy Clerk, at (850) 413-6770.

CAPITAL CIRCLE OFFICE CENTER 2540 SHUMARD OAK BOULEVARD TALLAHASSEE, FL 32399-0850 An Affirmative Action/Equal Opportunity Employer

PSC Website: htto://www.floridavsc.com

PSClCLK 019-C (Rev. 05/07)

Internet E-mail: contact@psc.state.Il.us

U 0 D

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