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To our south right on the beach. we had to get out of there very quickly because the water literally within five minutes started rising and coming toward us. it was up to our knees. we knew it would get much deeper. we've also seen a lot of transformer fires. power lines are coming out and fires are not being put out because the fire officials aren't out right now. everyone is taking care of their families and taking care of critical situations. the situation near the coast is scary, we think it's dire because the water is so deep. people are just waiting to see what happens to their homes and...

Wilmington. just above the horizon i can see the blue explosions, the transformer explosions, the power has gone out already, and 280,000 customers without power, and the number rising minute by minute. behind me is the northeast cape fear river. one of the rivers that flows into the atlantic, the concern is that the storm surge will push some of the river up, and you might see flooding from the surge pushing up, but in the next few days, the rainfall falling at three inches per minute will flood the rivers and put them well over their banks. it floods at ten feet. and it could reach 22 feet.

Back. if we don't have a hard number as to how many are here. what we do know is that as it stands right now we have over 7,500 people without electricity and we don't know when that will be cut back on. we have not been able to do an assessment of our roads and our bridges, and what we're worried about at this point is the flooding situation. that can be in a matter of four to five days before things crest, so we really don't know what the true impact of the flooding is going to be really across our entire state. >> reporter: yeah. when you say 7,500 people without power, the state -- the rep...

Bit ago and there was lightning near the eye wall. had transformer explode outside of the hotel. i was in the hotel room and it rattled the entire thing. we went outside and sparks were flying. we have seen transformer explosions out here. the wind is increasing. report of 60 mile an hour gust. and i'm on cocoa -- >> looks like we may have lost reed's audio there. he is on cocoa beach. he was talking able is a storm surge. they are vulnerable because there is the ocean on one side and a river on the other. if the storm surge reaches the proportions they are expecting, areas like cocoa beach wi...

Able to compete with the rest of the world. that was never a question for other generations. all of a sudden, we're questioning whether we should make those investments. >> governor dan malloy. you're in the thick of it. thank you for your time tonight. we appreciate it. >> thank you. i have a modest proposal. how about this? sometimes power goes out because of transformer explosions or water. more frequently power goes out because a tree falls down on the power line. how about we do a big stimulus project. wherein all of the places where the power went out because of hurricane sandy or some...