Florida Public Service Commission native order document 05435-2026

FILED 8/24/2026
DOCUMENT NO. 05435-2026
FPSC 	- COMMISSION CLERK
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In re: Fuel and purchased power cost recovery
clause with generating performance incentive
factor.
In re: Review of the 2024-2025 outage of
Tampa Electric Company's Bayside Steam
Turbine Unit 	2.
In re: Petition for approval of revised
depreciation rates for Bayside Power Station
assets, by Tampa Electric Company.
DOCKET NO. 20260001 -EI
DOCKET NO. 20260053-EI
DOCKET NO. 20260062- EI
ORDER NO. PSC-2026-0297-FOF-EI
ISSUED: August 24, 2026
The following Commissioners participated in the disposition of this matter:
GABRIELLA PASSIDOMO SMITH, Chairman
GARY F. CLARK
MIKE LA ROSA
BOBBY PAYNE
ANA ORTEGA
ORDER APPROVING TAMPA ELECTRIC COMPANY’S
2026 BAYSIDE AGREEMENT
BY THE COMMISSION:
BACKGROUND
Two replacement power 	issues 	associated with Tampa 	Electric Company’s (TECO 	or
Company) Bayside Unit 2 were raised 	in 	the 2026 Fuel Clause docket, Docket 20260001 -EI: 1
replacement power costs associated with an outage of TECO’ s Bayside Steam Turbine 2 	lasting
from October 	1, 2024 to August 	15, 2025, and replacement power costs associated with a forced
outage of Bayside Combustion Turbine 2D from January 22, 2025 	to June 	12, 2025. TECO and
the Office of Public Counsel (OPC) filed a Joint Motion to spin-off the Bayside Steam Turbine 2
outage 	into a 	separate docket on March 	23, 2026, due 	to 	the complexity of the outage and the
volume of confidential 	utility and third-party documents 	that would have 	to be reviewed. 	This
request was granted by Order No. PSC-2026-008 1-PCO-EI 2and Docket No. 20260053-EI, In re:
Review of the 2024-2025 outage of Tampa Electric Company 	’s Bayside Steam 	Turbine Unit 2,
was established on April 	6, 2026.
1Docket No. 20260001 -EI, In 	re: Fuel and purchased power cost recovery clause with generating performance
incentive factor.
2Order No. PSC-2026-008 1-PCO-EI, issued April 	1, 2026, in Docket No. 20260001-EI, In re: Fuel and purchased
power cost recovery clause with generating performance incentive factor.

ORDER NO. PSC-2026-0297-FOF-EI
DOCKET NOS. 20260001-EI, 20260053-EI, 20260062-EI
PAGE 2
The January 22, 2025 to June 12, 2025 Bayside Combustion Turbine 2D outage was not
moved to the new docket, but remained at issue in Docket No. 2026001-EI.
On April 15, 2026, TECO filed a petition seeking approval of revised depreciation rates
for its Bayside Power Station assets to be effective January 1, 2027. Docket No. 20260062-EI
was assigned to the depreciation rate change petition. The Company retrofitted the steam
turbines of its Bayside Units 1 & 2; and placed them back in service in August 2025 and June
2026. The retrofit materially extends the remaining lives and anticipated retirement dates for
these units; consequently, it also impacts the depreciation rates of various depreciation accounts
for Bayside Station. TECO requested to approve its proposed new depreciation rates for the
affected accounts, with an implementation date of January 1, 2027. The revised depreciation
rates result in a reduction to depreciation expense of approximately $19.5 million.
On 	June 	16, 	2026, 	TECO 	filed 	a 	Motion 	to 	Approve 	2026 	Bayside 	Agreement
(Stipulation and Settlement Agreement dated June 12, 2026, or "2026 Bayside Agreement")
which proposed to resolve both Bayside Steam Turbine 2 and Bayside Combustion Turbine 2D
outage issues and the depreciation rate changes for the Bayside Power Station assets. The
signatories to the 2026 Bayside Agreement are TECO and OPC. There are no other parties to
Docket No. 20260053-EI or Docket No. 20260062-EI. The 2026 Bayside Agreement is
Attachment A to this order.
The Fuel Clause docket, Docket 20260001-EI, has seven parties in addition to TECO and
OPC: Florida Public Utilities Company; Duke Energy Florida, LLC; Florida Power & Light
Company; Florida Industrial Power Users Group; Southern Alliance for Clean Energy; White
Springs Agricultural Chemicals, Inc. d/b/a/ PCS Phosphate – White Springs; and Nucor Steel
Florida, Inc. All of these parties took no position on the 2026 Bayside Agreement and were
excused from the attending the final hearing conducted on August 4, 2026. At the final hearing,
the pre-filed testimony of TECO witnesses Ned Allis, Jeff Chronister and Kris Stryker and
Exhibits Nos. 1-15 were admitted into the record. The parties waived briefs and a vote was taken
after our staff gave an oral recommendation.
We have jurisdiction over this subject matter by the provisions of Chapter 366, Florida
Statutes (F.S.).
DECISION
The legal standard for approval of a settlement agreement is whether, when taken as a
whole, the agreement is in the public interest and results in fair, just and reasonable rates.3 	In
order to do this, we must identify the major elements of the settlement and provide an
explanation of how those elements affect our decision on public interest.4
3 Floridians Against Increased Rates, Inc. v. Clark (FAIR), 371 So. 3d 905, 910 (Fla. 2023).
4 Order No. PSC-2024-0078-FOF-EI, issued March 25, 2024, in Docket No. 20210015-EI, In re: Petition for rate
increase by Florida Power & Light Company.

ORDER NO. PSC-2026-0297-FOF-EI
DOCKET NOS. 20260001-EI, 20260053-EI, 20260062-EI
PAGE 3
There are three major elements in the 2026 Bayside Agreement: a base rate freeze;
Bayside outage-related replacement power costs; and modifications of depreciation rates for
Bayside Unit 1 and 2 assets.
Base Rate Freeze
The 2026 Bayside Agreement states that the Company may not petition to change any of
its general base rates, charges, or credits for retail electric service with an effective date earlier
than January 1, 2028. The 2026 Bayside Agreement further states that this "freeze" is with the
exception for rate and tariff changes necessary to implement the Company's 2027 Subsequent
Year Adjustment as approved by this Commission in TECO' s last rate case; and the exception
for filing for approval of large load tariffs required by 366.043, F.S. This base rate freeze
provision forecloses the possibility that TECO might seek base rate relief to be effective in 2027
to address the earnings pressure discussed in the Company's public and confidential Commission
staff data request responses.
Bayside Outage-Related Replacement Power Costs
The 2026 Bayside Agreement states that the replacement fuel and purchased power issues
associated with the Bayside Steam Turbine Unit 2 Outage in Docket Nos. 20260053-EI and
Bayside Combustion Turbine 2D Outage shall be resolved by reducing the Company's 2027
recoverable fuel and purchased power expense by a combined total of $10 million.
Depreciation Rates
OPC and TECO agree that the Bayside depreciation rates proposed in Docket No.
20260062 are reasonable and should be approved effective July 1, 2026.
Public Interest
In the Company's responses to Commission staff’s data requests, TECO stated that,
compared to its originally requested effective date of January 1, 2027, the new effective date will
reduce its 2026 depreciation expense by approximately $9.6 million. TECO also confirmed that
if the 2026 Bayside Agreement is approved, the Company still intends to proceed with the
installation of "solar assets or other projects excluded from 2027 subsequent year adjustment
revenues approved in its last rate case" without increasing customers' bills in 2027. 	TECO has
stated that it expects three solar projects representing 166.5 MW to go into service by December
2026, but would not impact rates due to the proposed base rate freeze through 2027. The revenue
requirement of such plants is estimated to be $22. 7M.
The 2026 Bayside Agreement would result in a $10 million reduction in the 2027
recoverable fuel costs. Further, the Agreement would provide stability in current base rates until
at least December 31, 2027, in part through the deferral of new solar project cost recovery in
2027. 	Additionally, the 2026 Bayside Agreement would serve to reduce earnings pressure for

ORDER NO. PSC-2026-0297-FOF-EI
DOCKET NOS. 20260001-EI, 20260053-EI, 20260062-EI
PAGE 4
TECO and supports the decision to forego seeking additional 	rate relief during 	this same period
in 2027.
Based on 	the 	record of the 	three 	associated 	dockets, we 	find 	that 	the 2026 	Bayside
Agreement, and 	its major elements, 	are 	in the public 	interest when taken as a whole and 	results
in rates that are 	fair, just and reasonable.
Based on the foregoing, 	it is
ORDERED by 	the Florida Public Service Commission 	that Tampa Electric Company’s
Motion to Approve 2026 Bayside Agreement, titled Stipulation and Settlement Agreement, dated
June 	12, 2026, Attachment A hereto, 	is hereby approved.
ORDERED 	that Docket No. 	20260053-EI, 	in 	re: Review of the 2024-2025 	outage of
Tampa Electric Company’s Bayside Steam Turbine 	Unit 2and Docket No. 20260062-EI, In 	re:
Petition for approval of revised depreciation rates for Bayside Power Station 	assets, by Tampa
Electric Company, 	shall be closed. 	Docket No. 20260001-EI 	shall remain open.
By ORDER of the Florida Public Service Commission this 24th day of August, 2026 	.
Commission C?erk
Florida Public Service Commission
2540 Shumard Oak Boulevard
Tallahassee, Florida 32399
(850)413-6770
www.floridapsc.com
Copies 	furnished: A copy 	of 	this document 	is
provided 	to 	the 	parties 	of record 	at 	the 	time 	of
issuance and, 	if applicable, interested persons.
SBr

ORDER NO. PSC-2026-0297-FOF-EI
DOCKET NOS. 20260001-EI, 20260053-EI, 20260062-EI
PAGE 5
NOTICE OF FURTHER PROCEEDINGS OR JUDICIAL REVIEW
The Florida Public Service Commission is required by Section 120.569(1), Florida
Statutes, to notify parties of any administrative hearing or judicial review of Commission orders
that is available under Sections 120.57 or 120.68, Florida Statutes, as well as the procedures and
time limits that apply. 	This notice should not be construed to mean all requests for an
administrative hearing or judicial review will be granted or result in the relief sought.
Any party adversely affected by the Commission's final action in this matter may request:
1) reconsideration of the decision by filing a motion for reconsideration with the Office of
Commission Clerk, 2540 Shumard Oak Boulevard, Tallahassee, Florida 32399-0850, within
fifteen (15) days of the issuance of this order in the form prescribed by Rule 25-22.060, Florida
Administrative Code; or 2) judicial review by the Florida Supreme Court in the case of an
electric, gas or telephone utility or the First District Court of Appeal in the case of a water and/or
wastewater utility by filing a notice of appeal with the Office of Commission Clerk, and filing a
copy of the notice of appeal and the filing fee with the appropriate court. 	This filing must be
completed within thirty (30) days after the issuance of this order, pursuant to Rule 9.110, Florida
Rules of Appellate Procedure. 	The notice of appeal must be in the form specified in Rule
9.900(a), Florida Rules of Appellate Procedure.

ORDER NO. PSC-2026-0297-FOF-EI
DOCKET NOS. 20260001-EI, 20260053-EI, 20260062-EI 	Attachment A
PAGE 6 	Page 1 of 7
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In 	re: Fuel and Purchased Power Cost
Recovery 	Clause 	with 	Generating
Performance Incentive Factor
DOCKET NO. 20260001 -El
DOCKET NO. 20260053-EI
DOCKET NO. 20260062-EI
In re: Review of the 2024-2025 Outage of
Tampa 	Electric 	Company’s 	Bayside
Steam Turbine Unit 2
In 	re: 	Petition 	for Approval of Revised
Depreciation Rates 	for Bayside Power
Station 	Assets 	by Tampa 	Electric
Company
STIPULATION AND SETTLEMENT AGREEMENT
THIS AGREEMENT Is dated this 12 th of June, 2026 and is by and between Tampa
Electric Company (“Tampa Electric" or the “company") and the Office of Public Counsel
(“OPC”). Tampa Electric and OPC shall be referred to collectively as the “Parties”, and
the term “Party” shall be the singular form of the term “Parties”. This agreement shall be
referred to as the “2026 Bayside Agreement”.
Recitals
Tampa Electric filed a Petition for Approval of Revised Depreciation Rates for
Bayside Power Station Assets on 	April 15, 2026, which was assigned Docket No.
20260062-E1 (“Bayside Depreciation Docket”). Therein, the company requested new
depreciation 	rates that 	reflect longer remaining 	lives and 	later retirement dates 	for
Bayside Power Station assets resulting from the retrofit of the steam turbines for Bayside
Units 	1 and 2 in 2026 and 2025, respectively (“Proposed Bayside Depreciation Rates”).
1

ORDER NO. PSC-2026-0297-FOF-EI
DOCKET NOS. 20260001-EI, 20260053-EI, 20260062-EI 	Attachment A
PAGE 7 	Page 2 of 7
Docket No. 20260001-EI 	is the Florida Public Service Commission’s (“FPSC” or
“Commission”) annual proceeding to address fuel and purchased power cost recovery for
Florida electric public 	utilities (“Fuel Docket"). The Parties and FPSC Staff 	(“Staff”)
identified two replacement power issues in the Fuel Docket, one of which was associated
with an unplanned outage involving the Bayside 2 Steam Turbine (“Bayside ST Outage”),
which was spun off and is currently under consideration in Docket No. 20260053-EI. The
other replacement power issue is associated with a forced outage of Bayside Combustion
Turbine 2D from January 22, 2025 through June 12, 2025 (“Bayside CT2D Outage”),
which is currently under consideration in the Fuel Docket.
OPC and the Staff have conducted extensive discovery addressing the depreciation
and replacement power issues 	in 	the three dockets. The company has answered
interrogatories and data 	requests and produced 	approximately 14,000 documents
(approximately 175,000 individual pages) in support of its positions on the prudence of its
actions 	for the two outages and the reasonableness of the company’s depreciation
proposals. The Parties have undertaken to resolve these issues by agreement to: (1)
protect the 	interests 	of the company’s customers and the company, 	(2) promote
regulatory 	efficiency, and 	(3) avoid the inherent 	risks, 	uncertainties, dedication 	of
resources, and costs of further litigation.
The Parties have entered 	into this 2026 Bayside Agreement 	in compromise of
positions in accordance with their rights and interests under Chapters 120, 350, and 366,
Florida Statutes, as applicable, and believe that this 2026 Bayside Agreement completely
and fairly resolves all of the issues presented in Docket Nos. 20260053-EI and 20260062-
El and the Bayside CT2D Outage issue 	in Docket No. 20260001-EI, is 	in the public
2

ORDER NO. PSC-2026-0297-FOF-EI
DOCKET NOS. 20260001-EI, 20260053-EI, 20260062-EI 	Attachment A
PAGE 8 	Page 3 of 7
interest, determines and approves reasonable depreciation rates for Bayside Power
Station assets, will result in fuel and purchased power cost recovery factors that are fair,
just, and reasonable, and will not result in changes to the company’s currently approved
base rates and charges.
As part of a negotiated exchange of consideration among the Parties to this 2026
Bayside Agreement, each Party has agreed 	to concessions 	to the other with the
expectation, intent, and understanding that all provisions of the 2026 Bayside Agreement,
upon approval by the Commission, will be enforced by the Commission as to all matters
addressed herein with respect to all Parties.
NOW, THEREFORE, in consideration of the foregoing, and the mutual covenants
contained herein, which the Parties agree and acknowledge constitute good and valuable
consideration, the Parties hereby stipulate and agree as follows:
Terms
1. 	Base Rate Freeze . Except for the rate and tariff changes to implement the
company’s 2027 Subsequent Year Adjustment as approved by Order No. PSC-2025-
0038-FOF-EI, dated February 3, 2025, 	in Docket No. 20240026-EI (“2024 Rate Case
Final Order”), the company may not petition to change any of 	its general base rates,
charges, or credits for retail electric service with an effective date earlier than January 1,
2028. This provision shall not prevent the company from filing for approval, or limit the
Commission’s authority to act, on large load tariffs as required by Section 3 of Chapter
2026-65, Laws of Florida, as codified in Section 366.043, Florida Statutes (“Data Center
Law”).
3

ORDER NO. PSC-2026-0297-FOF-EI
DOCKET NOS. 20260001-EI, 20260053-EI, 20260062-EI 	Attachment A
PAGE 9 	Page 4 of 7
2. 	Replacement Power Issues . The Parties agree that the replacement fuel
and purchased power issues associated with the Bayside ST Outage and Bayside CT2D
Outage, 	in Docket Nos. 20260053-EI and 20260001 -El, respectively, shall be resolved
by reducing the company's recoverable fuel and purchased power expense in Docket No.
20260001-EI by a combined total of $1 0 million. This amount shall be a full and complete
satisfaction of the company’s 	liability for replacement fuel and purchased power issues
associated with the Bayside ST Outage and Bayside CT2D Outage. This amount 	is a
negotiated amount agreed to by the Parties based on their understanding and assessment
of the litigation risks associated with the issues in the cases and was not based on specific
adjustments with 	identified 	dollar amounts or a prudence determination on the merits
attributable to the advocacy positions of either Party
3. 	Depreciation Issues . The Parties agree, as a full and complete resolution of
the issues in Docket No. 20260062-EI, that the Proposed Bayside Depreciation Rates are
reasonable, that the Commission should find that they are reasonable, and that the
Commission should approve the Proposed Bayside Depreciation Rates to be effective
July 1,2026.
4. 	Approval . The provisions of this 2026 Bayside Agreement are contingent on
approval of this agreement as presented and in 	its entirety by the Commission without
modification. The Parties agree and ask that the Commission find that: 	(a) this 2026
Bayside Agreement is in the public interest; (b) will result in fuel and purchased power
cost recovery factors that are 	fair, just, and reasonable; 	(c) will result in depreciation
parameters and 	rates associated with the Bayside Power Station Assets that are
reasonable, and (d) will not result in changes to the company’s currently approved base
4

ORDER NO. PSC-2026-0297-FOF-EI
DOCKET NOS. 20260001-EI, 20260053-EI, 20260062-EI 	Attachment A
PAGE 10 	Page 5 of 7
rates and charges. The Parties further agree that they will support this 2026 Bayside
Agreement, and that they will not request or support any order, relief, outcome, or result
in conflict with the terms of this 2026 Bayside Agreement in any future administrative or
judicial proceeding 	relating 	to, reviewing, or challenging the establishment, approval,
adoption, or implementation of this 2026 Bayside Agreement or the subject matter hereof.
Neither Party shall seek appellate review of any Commission order approving this 2026
Bayside Agreement.
5. 	No 	Precedential 	Value . 	This 2026 	Bayside Agreement 	reflects 	a
compromise of disputed claims and shall not be construed as a finding of, or an admission
by, any Party of any 	liability, wrongdoing, or imprudence. No Party 	will assert 	in any
proceeding before the Commission that this 2026 Bayside Agreement or any of the terms
in the 2026 Bayside Agreement 	shall have any 	precedential 	value. The 	Parties'
agreement to the terms in this 2026 Bayside Agreement shall be without prejudice to any
Party's ability to advocate a different position in future proceedings not involving this 2026
Bayside Agreement. The Parties further expressly agree that no individual provision, by
itself, necessarily represents a position of any Party 	in any future proceeding, and the
Parties further agree that no Party will assert or represent in any future proceeding in any
forum that another Party endorses any specific provision of this 2026 Bayside Agreement
by virtue of that Party’s signature on, or participation in, this 2026 Bayside Agreement. 	It
is the intent of the Parties to this 2026 Bayside Agreement that the Commission’s approval
of all the terms and provisions of this 2026 Bayside Agreement is an express recognition
that no individual term or provision, by itself, necessarily represents a position, in isolation,
of any Party or that a Party to this 2026 Bayside Agreement endorses a specific provision,
5

ORDER NO. PSC-2026-0297-FOF-EI
DOCKET NOS. 20260001-EI, 20260053-EI, 20260062-EI 	Attachment A
PAGE 11 	Page 6 of 7
in isolation, of this 2026 Bayside Agreement by virtue of that Party’s signature on, or
participation 	in, this 2026 Bayside Agreement. However, nothing 	in this paragraph shall
impact the continuing validity of this 2026 Bayside Agreement.
6. 	Final Order . The Parties intend and agree to request that the Commission's
final order approving this 2026 Bayside Agreement find that approval of this 2026 Bayside
Agreement in its entirety is in the public interest and fairly resolves all matters as specified
in this agreement pursuant to and in accordance with Section 120.57(4), Florida Statutes,
and that the Docket Nos. 20260053-EI and 20260062-EI will be closed effective on the
date the Commission's order approving this 2026 Bayside Agreement becomes final.
7. 	Execution . This 2026 Bayside Agreement may be executed in counterpart
originals, and a facsimile or electronic scan of an original signature shall be deemed an
original.
[Remainder of Page Intentionally Left Blank]
6

ORDER NO. PSC-2026-0297-FOF-EI
DOCKET NOS. 20260001-EI, 20260053-EI, 20260062-EI 	Attachment A
PAGE 12 	Page 7 of 7
IN WITNESS WHEREOF, the Parties evidence their acceptance and agreement
with the provisions of this 2026 Bayside Agreement by their signature(s):
DATED this 12 th Day of June, 2026.
Tampa Electric Company
3600 Midtown Drive
Tampa, FL 33607
By: _ 	, 	_
Archie Collins, President and Chief Executive Officer
Office of Public Counsel
Walt Trierweiler, Public Counsel
c/o The Florida Legislature
111 West Madison Street, Room 812
Tallahassee, FL 32399-1400
By:
Walt Trierweiler, Public Counsel
7