An anti-technology terrorist is setting bombs around the beach, and will only let T.C. and Victor dismantle them. He wants all power in Santa Monica shut down for twelve hours on the first of the month. An FBI agent comes in to assist the unit, butting heads with Palermo by making Chris his liaison. In the end, it's the Bike Patrol -- and not the FBI -- that discovers the bomber's true plan is to use the blackout to pull a multi-million dollar bank heist. While this is happening, T.C.'s girlfriend Sandy returns to live with him, with the condition that he not tell her anything about his job so she won't worry. But the agreement ends up making things harder on both of them.

Timothy Stone, the F.B.I. agent who worked with the Bike Patrol on the bombing case in ""Lights Out"", returns to the Firehouse to get Cory and Chris' assistance in investigating a counterfeit ring operating in Santa Monica. Chris and Cory both find themselves attracted to Agent Stone, but when he and Cory begin a romance, Chris feels betrayed.

The counterfeiter, Lazlo Parkes-- who the Treasury Department has nicknamed ""Rumplestiltskin"" -- has been passing off fake $100 bills at Santa Monica hotspots with the help of a trio of women: Bree, Sheila and Lana. Lazlo is plotting to exchange one million in fake bills for a supply of heroin from drug lord Alejandro Cruz-- a drug deal that Palermo has ordered T.C. and Victor to investigate. Little does Lazlo expect that Bree is plotting with boyfriend Nicky Mink to kill Lazlo and take off with the money... until the other two women discover the plan.

T.C. is outraged when ""The Sandman"", a hitman responsible for the murders of a police informant and an innocent bystander, is released from prison.Against the orders of DEA agent INSPECTOR ENRIGHT (from the episode ""Black Pearl""), T.C. trails the Sandman on his own, hoping to catch him committing another crime. Enright finally arrests T.C. for obstruction of justice. Neither knows that Sandman plans to use T.C. in exacting revenge on the three drug runners who made him take the fall for the informant's murder, and in such a way that he -- the Sandman -- won't even have to pull the trigger...