Florida Public Service Commission native order document 03898-2024

Order No. PSC-2024-0166-PCO-EIFlapubserv

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FILED 5/23/2024
DOCUMENT NO. 03898-2024
FPSC - COMMISSION CLERK
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In re : Petition for rate increase by Duke Energy 	DOCKET NO. 20240025-EI
Florida, LLC. 	ORDER NO. PSC-2024-0166-PCO-EI
ISSUED: May 23, 2024
-------------------"
The following Commissioners participated in the disposition of this matter:
BY THE COMMISSION :
MIKE LA ROSA, Chairman
ART GRAHAM
GARY F. CLARK
ANDREW GILES FAY
GABRIELLA PASSIDOMO
ORDER SUSPENDING TARIFFS
Background
This proceed ing commenced on April 2, 2024, with the filing of a petition for a permanent
rate increase by Duke Energy Florida, LLC (DEF or Company). The Company is engaged in
business as a public utility providing electric service as defined in Section 366.02, Florida Statutes
(F.S.), and is subject to our jurisdiction. DEF provides electric service to approximately two million
retail customers in Pinellas, Pasco, Orange, Osceola, and Seminole Counties.
DEF has requested an increase in its retail rates and charges to generate $593 million in
additional gross annual revenue, effective January I , 2025, $98 million, effective January I, 2026,
and $129 million, effective January 1, 2027. DEF asserts that the combined increases will allow the
Company to earn a return on equity of 11.15 percent. The Company based its requests on projected
test years ending December 31 , 2025; December 31, 2026; and December 3 1, 2027. DEF stated that
these test years are the appropriate periods to be utilized because they best represent expected
future operations in the period immediately after any new base rates go into effect. In total , the
Company is requesting an $820 million base rate increase. DEF did not request any interim rate
relief.
In DEF's most recent base rate proceeding in Docket No. 20210016-EI, we approved a
settlement agreement which authorized a revenue increase of $67 million effective January 1,
2022, a revenue increase of $49 million effective January 1, 2023, and a further revenue increase
of $79 million effective January 1, 2024. 1 The settlement agreement established base rates
through the last billing cycle in December 2024.
1 Order No. PSC-2021-0202-AS-EI , issued June 9, 2021 , in Docket No. 20210016-EI, In r e: Petition for limited
proceeding to approve 2021 settlement agreement, including base rate increases, by Duke Energy Florida, LLC.
ORDER NO. PSC-2024-0166-PCO-EI
DOCKET NO. 20240025-EI
PAGE2
On February 16, 2024, we acknowledged the Office of Public Counsel's notice of
intervention in this proceeding.2 On April 19, 2024, Florida Rising, Inc.; League of United Latin
American Citizens of Florida; Florida Industrial Power Users Group; Florida Retail Federation;
and Sien-a Club were granted intervention. 3 On April 24, 2024, White Springs Agricultural
Chemicals, Inc. (White Springs) and Nucor Steel Florida, lnc ., were granted intervention.4 On
May 13, 2024, Southern Alliance for Clean Energy was granted intervention. 5 On April 24,
2024, Americans for Affordable Clean Energy, Inc.; Circle K Stores, Inc.; RaceTrac Inc.; and
Wawa, Inc. filed a collective Petition to Intervene. 6 A hearing has been scheduled for August 12-
16, 2024. August 19-23, 2024, have also been reserved, if necessary. 7
This Order is to suspend the proposed tariffs submitted with the requested permanent rate
increase. We have jurisdiction over this matter pursuant to Sections 366.06(2) and (4), F.S.
Decision
DEF filed its petition, testimony, and minimum filing requirements on April 2, 2024. The
Company has requested an increase in its retail rates and charges to generate $593 million in
additional gross annual revenue, effective January l, 2025. DEF has also requested an increase in
its retail rates and charges to generate $98 million in additional gross annual revenue, effective
January l, 2026. Further, DEF has requested an increase in retail rates and charges to generate
$129 million in additional gross annual revenue, effective January 1, 2027.
Historically, we have suspended requested permanent rate schedules in order to allow
sufficient time to adequately and thoroughly examine the basis for the new rates. Suspension of a
requested rate increase is authorized by Section 366.06(3), F.S., wnich provides:
Pending a final order by the commission in any rate proceeding under this section,
the commission may withhold consent to the operation of all or any portion of the
new rate schedules, delivering to the utility requesting such increase, within 60 days,
a reason or written statement of good cause for withholding its consent.
We find good cause consistent with the requirements of Section 366.06(3), F.S., exists in
this docket. Therefore, we hereby suspend the requested permanent rate schedules to allow s taff
2 Order No. PSC-2024-0041-PCO-El, issued February 16, 2024, in Docket No. 20240025-EI, In re: Petition for rate
increase by Duke Energy Florida, LLC.
3 Order No s. PSC-2024-0 I 06-PCO-El, PSC-2024-0 I07-PCO-EI, PSC-2024-0 I08-PCO-El, and PSC-2024-0 I09-
PCO-El, issued April 19, 2024, in Docket No. 20240025-EI, In re: Petition for rate increase by Duke Energy
Florida, LLC.
4 Order Nos. PSC-2024-0129-PCO-EI and PSC-2024-0130-PCO-EI, issued April 24, 2024, in Docket No.
20240025-El , In re: Pelitionfor rate increase by Duke Energy Florida, LLC.
5 Order No. 2024-0 150-PCO-EI, issued May 13, 2024, in Docket No. 20240025-EI, In re: Petition for rate increase
by Duke Energy Florida, LLC.
6 Document No. 02346-2024
7 Order No. PSC-2024-0092-PCO-EI, issued April 11, 2024, in Docket No. 20240025-EI, In re: Petition for rate
increase by Duke Energy Florida, LLC.
ORDER NO. PSC-2024-0166-PCO-EI
DOCKET NO. 20240025-EI
PAGE3
and any intervenors sufficient time to analyze the petition for base rate increase and for us to
conduct an administrative hearing.
Based on the foregoing, it is
ORDERED by the Florida Public Service Commission that all tariffs and rate schedules
associated with the petition for a permanent rate increase by Duke Energy Florida, LLC, are hereby
suspended. It is further
ORDERED that this docket shall remain open pending our decision on DEF's proposed
base rate increase.
SPS
By ORDER of the Florida Public Service Commission this 23rd day of May, 2024.
AD
Commissi
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 pa11ies of record at the time of
issuance and, if applicable, interested persons.
ORDER NO. PSC-2024-0166-PCO-EI
DOCKET NO. 20240025-EI
PAGE4
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.
Mediation may be available on a case-by-case basis. If mediation is conducted, it does
not affect a substantially interested person's right to a hearing.
Any 	party 	adversely 	affected 	by 	this 	order, 	which 	is 	preliminary, 	procedural 	or
intermediate in nature, may request: (1) reconsideration within IO days pursuant to Rule 25-
22.0376, 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 or wastewater utility. A motion for reconsideration shall be filed with the Office of
Commission Clerk, in the form prescribed by Rule 25-22.0376, Florida Administrative Code.
Judicial review of a preliminary, procedural or intermediate ruling or order is available if review
of the final action will not provide an adequate remedy. Such review may be requested from the
appropriate court, as described above, pursuant to Rule 9.100, Florida Rules of Appellate
Procedure.

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