Phase IV Liquidated Damages

fyi Our contract with Latex Construction provides that they will assume
responsibility for the $33,000/day liquidated damages from the FPL contract
provided that we release them to start construction in a timely manner, and
that we have in place the required permits, ROW, and all permanent material
for construction.

Also, we will be asking FERC for clarification, or in the alternative for
rehearing, that we will be allowed to construct water crossings after June
1. FERC misunderstood a request by FDEP that construction across water
bodies be limited to the period between November 1 and June 1. FDEP has
issued our preliminary permits without this requirement, and has given us a
letter confirming that we may construct after June 1. We need to be able to
construct after June 1 to make the October 1 inservice for FPL.

Rock