Florida Public Service Commission native order document 06436-2024

OCR transcription for search; preserved printed pages are authoritative

FILED 6/14/2024
DOCUMENT NO. 06436-2024
FPSC - COMMISSION CLERK

BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION

In re: Petition for limited proceeding for DOCKET NO. 20230017-EI
recovery of incremental storm restoration costs | ORDER NO, PSC-2024-0192-PHO-EI
related to Hurricanes Ian and Nicole, by ISSUED: June 14, 2024

Florida Power & Light Company.

PREHEARING ORDER

Pursuant to Notice and in accordance with Rule 28-106.209, Florida Administrative Code
(F.A.C.), a Prehearing Conference was held on June 11, 2024, in Tallahassee, Florida, before
Commissioner Art Graham, as Prehearing Officer.

APPEARANCES:

CHRISTOPHER T. WRIGHT and JOEL T. BAKER, ESQUIRES, 700 Universe
Blvd., Juno Beach, Florida 33408
On behalf of Florida Power & Light Company (FPL).

WALT TRIERWEILER, Public Counsel, CHARLES REHWINKEL, and
PATRICIA A. CHRISTENSEN, ESQUIRES, Office of Public Counsel, c/o The
Florida Legislature, 111 W. Madison Street, Room 812, Tallahassee, Florida
32399

On behalf of Office of Public Counsel (OPC).

STEPHANIE U. EATON, ESQUIRE, Spilman, Thomas & Battle, PLLC, 110
Oakwood Drive, Suite 500, Winston-Salem, North Carolina 27103

On behalf of Walmart. Inc. (Walmart).

DERRICK PRICE WILLIAMSON and STEVEN W. LEE, ESQUIRES, Spilman,
Thomas & Battle, PLLC, 1100 Bent Creek Blvd., Suite 101, Mechanicsburg,
Pennsylvania 17050

On behalf of Walmart, Inc. (Walmart).

SHAW STILLER and DANIEL DOSE ESQUIRES, Florida Public Service
Commission, 2540 Shumard Oak Boulevard, Tallahassee, Florida 32399-0850
On behalf of the Florida Public Service Commission (Staff).

MARY ANNE HELTON, ESQUIRE, Deputy General Counsel, Florida Public
Service Commission, 2540 Shumard Oak Boulevard, Tallahassee, Florida 32399-
0850

Advisor to the Florida Public Service Commission.

ORDER NO. PSC-2024-0192-PHO-EI
DOCKET NO. 20230017-EI
PAGE 2
KEITH C. HETRICK, ESQUIRE, General Counsel, Florida Public Service
Commission, 2540 Shumard Oak Boulevard, Tallahassee, Florida 32399-0850
Florida Public Service Commission General Counsel
I. 	CASE BACKGROUND
On January 23, 2023, Florida Power & Light Company (FPL) filed a Petition for limited
proceeding for recovery of incremental storm restoration costs related to Hurricanes Ian and
Nicole. The petition was filed pursuant to the provisions of the Stipulation and Settlement
Agreement approved by Final Order of the Commission as a full resolution of FPL’s most recent
base rate case.1 Under that Settlement and Final Order, FPL can begin recovery of storm costs 60
days following the filing of a petition for recovery.
In its petition, FPL sought authority to implement an interim storm restoration recovery
surcharge to recover an estimated total of $1.3 billion for incremental restoration costs related to
Hurricanes Ian and Nicole and to replenish the storm reserve to the pre-storm level of $219.9
million. FPL also prepared an alternate storm charge calculation seeking authority to implement
an interim storm restoration recovery charge to recover an estimated total of $1.5 billion. This
alternate calculation combines the incremental restoration costs related to Hurricanes Ian and
Nicole with the remaining amounts to be collected for Hurricanes Michael, Sally, and Zeta,
which we previously approved for recovery by Gulf Power Company,2 and to replenish the storm
reserve. The Commission granted FPL’s petition by Order No. PSC-2023-0110-PCO-EI, issued
March 3, 2023, and approved a consolidated interim storm surcharge using FPL’s alternate storm
charge calculation to cover restoration costs and to replenish the storm reserve. The Commission
ordered that this docket remain open pending final disposition (true-up) of storm costs.
On July 28, 2023, FPL filed in this docket a petition for a temporary waiver of or
variance from Rule 25-6.0143(1)(g), Florida Administrative Code (F.A.C.). FPL requested a
waiver of the portion of this Rule that required it to file its petition and documentation
concerning disposition of deferred storm costs related to Hurricanes Ian and Nicole not later than
September 30, 2023. FPL requested that it be allowed until December 31, 2023, to file its
petition and supporting documentation. By Order PSC-2023-0298-PAA-EI, issued October 2,
2023, the Commission granted FPL’s petition and established December 31, 2023, as the utility’s
filing deadline.
On September 5, 2023, FPL filed a supplemental petition to reduce the interim storm
surcharge based on its internal review and finalization of the invoices and storm costs associated
with Hurricanes Ian and Nicole. As a result of this internal process, the estimated incremental
storm restoration cost related to the two storms decreased from the original estimate of $1.3
billion to $1.1 billion. Thus, the total estimate reflected in the alternative storm charge
calculation decreased from $1.5 billion to $1.3 billion. FPL proposed amended (reduced) interim
1Order No. PSC-2021-0446-S-EI, issued December 2, 2021, in Docket No. 20210015-EI, In re: Petition for rate
increase by Florida Power & Light Company.
2Order Nos. PSC-2019-0221-PCO-EI and PSC-2022-0406-FOF-EI.

ORDER NO. PSC-2024-0192-PHO-EI
DOCKET NO. 20230017-EI
PAGE 3
storm restoration charges applicable to all rate classes, effective with the first billing cycle of
January 2024 and continuing through March 2024, subject to a final true-up. The Commission
approved FPL’s petition and reduced the interim storm surcharge by Order No. PSC-2023-0354-
PAA-EI, issued November 27, 2023.
The Commission acknowledged intervention by the Office of Public Counsel (OPC) in
this docket by Order No. PSC-2023-0081-FOF-EI, issued February 10, 2023. Intervention was
granted to Walmart, Inc. (Walmart) by Order No. PSC-2023-0381-PCO-EI, issued December 20,
2023. A petition for intervention by Jet Blast, Inc., filed May 8, 2024, was denied.
On December 14, 2023, Order No. PSC-2023-0372-PCO-EI was issued, establishing
controlling dates for this proceeding and scheduling an administrative hearing for these matters
on June 18-20, 2024.
II. 	CONDUCT OF PROCEEDINGS
Pursuant to Rule 28-106.211, F.A.C., this Prehearing Order is issued to prevent delay and
to promote the just, speedy, and inexpensive determination of all aspects of this case.
III. 	JURISDICTION
This Commission is vested with jurisdiction over the subject matter by the provisions of
Chapter 120 and 366, Florida Statutes (F.S.). This hearing will be governed by said Chapter and
Chapters 25-6, 25-22, and 28-106, F.A.C., as well as any other applicable provisions of law.
IV. 	PROCEDURE FOR HANDLING CONFIDENTIAL INFORMATION
Information for which proprietary confidential business information status is requested
pursuant to Section 366.093, F.S., and Rule 25-22.006, F.A.C., shall be treated by the
Commission as confidential. 	The information shall be exempt from Section 119.07(1), F.S.,
pending a formal ruling on such request by the Commission or pending return of the information
to the person providing the information. 	If no determination of confidentiality has been made
and the information has not been made a part of the evidentiary record in this proceeding, it shall
be returned to the person providing the information. 	If a determination of confidentiality has
been made and the information was not entered into the record of this proceeding, it shall be
returned to the person providing the information within the time period set forth in Section
366.093, F.S. 	The Commission may determine that continued possession of the information is
necessary for the Commission to conduct its business.
It is the policy of this Commission that all Commission hearings be open to the public at
all times. 	The Commission also recognizes its obligation pursuant to Section 366.093, F.S., to
protect proprietary confidential business information from disclosure outside the proceeding.

ORDER NO. PSC-2024-0192-PHO-EI
DOCKET NO. 20230017-EI
PAGE 4
Therefore, any party wishing to use any proprietary confidential business information, as that
term is defined in Section 366.093, F.S., at the hearing shall adhere to the following:
(1) 	When confidential information is used in the hearing that has not been filed as
prefiled 	testimony 	or 	prefiled 	exhibits, 	parties 	must 	have 	copies 	for 	the
Commissioners, necessary staff, and the court reporter, in red envelopes clearly
marked with the nature of the contents and with the confidential information
highlighted. 	Any party wishing to examine the confidential material that is not
subject to an order granting confidentiality shall be provided a copy in the same
fashion as provided to the Commissioners, subject to execution of any appropriate
protective agreement with the owner of the material.
(2) 	Counsel and witnesses are cautioned to avoid verbalizing confidential information
in such a way that would compromise confidentiality. 	Therefore, confidential
information should be presented by written exhibit when reasonably possible.
At the conclusion of that portion of the hearing that involves confidential information, all
copies of confidential exhibits shall be returned to the proffering party. If a confidential exhibit
has been admitted into evidence, the copy provided to the court reporter shall be retained in the
Office of Commission Clerk’s confidential files. If such material is admitted into the evidentiary
record at hearing and is not otherwise subject to a request for confidential classification filed
with the Commission, the source of the information must file a request for confidential
classification of the information within 21 days of the conclusion of the hearing, as set forth in
Rule 25-22.006(8)(b), F.A.C., if continued confidentiality of the information is to be maintained.
V. 	PREFILED TESTIMONY AND EXHIBITS; WITNESSES
Testimony of all witnesses to be sponsored by the parties and Staff has been prefiled and
will be inserted into the record as though read after the witness has taken the stand and affirmed
the correctness of the testimony and associated exhibits. All testimony remains subject to timely
and appropriate objections. 	Upon insertion of a witness' testimony, exhibits appended thereto
may be marked for identification. 	Each witness will have the opportunity to orally summarize
his or her testimony at the time he or she takes the stand. 	Summaries of testimony shall be
limited to three minutes.
Witnesses are reminded that, on cross-examination, responses to questions calling for a
simple yes or no answer shall be so answered first, after which the witness may explain his or her
answer. 	After all parties and Staff have had the opportunity to cross-examine the witness, the
exhibit may be moved into the record. All other exhibits may be similarly identified and entered
into the record at the appropriate time during the hearing.
The Commission frequently administers the testimonial oath to more than one witness at
a time. 	Therefore, when a witness takes the stand to testify, the attorney calling the witness is
directed to ask the witness to affirm whether he or she has been sworn.

ORDER NO. PSC-2024-0192-PHO-EI
DOCKET NO. 20230017-EI
PAGE 5
The parties shall avoid duplicative or repetitious cross-examination. Further, friendly
cross-examination will not be allowed. 	Cross-examination shall be limited to witnesses whose
testimony is adverse to the party desiring to cross-examine. Any party conducting what appears
to be a friendly cross-examination of a witness should be prepared to indicate why that witness's
direct testimony is adverse to its interests.
VI. 	ORDER OF WITNESSES
Each witness whose name is preceded by an asterisk (*) has been stipulated and excused.
The testimony and exhibits of stipulated witnesses shall be introduced into the record in the order
presented below.
Witness 	Proffered By 	Issues #
Direct
*Michael Jarro 	FPL 	3-6, 8-10
*Keith Ferguson 	FPL 	1-12
*Amber De Lucenay 	FPL 	2, 5-6
*Tiffany C. Cohen 	FPL 	13-15
*Yen Ngo 	Staff 	As Needed
VII. 	BASIC POSITIONS
FPL: 	FPL’s service area was impacted in 2022 by Hurricanes Ian and Nicole, both
National Hurricane Center-classified storms that caused widespread devastation,
flooding, and customer service outages. 	Hurricane Ian made landfall near Fort
Myers Beach, Florida on September 28, 2022, as a catastrophic Category 4 storm
with sustained winds of 150 miles per hour (“mph”). The storm required FPL to
engage in extensive restoration efforts to restore service to more than 2.1 million
affected customers. 	Hurricane Nicole made its first of three landfalls near Vero
Beach, Florida on November 10, 2022, as a Category 1 storm with sustained
winds of 75 mph, and likewise required FPL to engage in extensive restoration
efforts to restore service to more than 480,000 customers.
FPL undertook reasonable, necessary, and prudent measures to prepare for and
respond to the impacts of both Hurricanes Ian and Nicole. 	These preparations
included complex and comprehensive logistical arrangements for mobilizing FPL

ORDER NO. PSC-2024-0192-PHO-EI
DOCKET NO. 20230017-EI
PAGE 6
employees, external contractors, and mutual aid utilities to support the restoration
effort. Logistical arrangements and coordination of resources included, but were
not limited to, staging sites, lodging, food, communications, and fuel delivery.
FPL’s proactive approach to storm preparation, mobilization and pre-staging of
resources, and execution of storm related activities was highly successful in
restoring service to its customers safely and as quickly as reasonably practicable.
In total, FPL restored service to more than 2.1 million customers impacted by
Hurricane Ian. 	Approximately 66% of these customers were restored within the
first full day of restoration and 95% of these customers were restored within the
first six full days of restoration. By October 7, 2022 (i.e., within eight full days of
restoration), FPL restored power to 99% of the affected customers, essentially
completing the restoration effort for all customers that could feasibly receive
power. FPL restored power to essentially all of its more than 480,000 customers
impacted by Hurricane Nicole in less than 24 hours after the storm exited Florida.
FPL’s investments over the past decade in smart grid technology, undergrounding
power lines, and strengthening the energy grid enabled FPL to avoid outages and
restore power faster where outages occurred. There was no significant structural
damage to FPL’s power generating facilities, including the 38 solar energy centers
exposed to storm conditions, and not a single transmission structure failed during
Hurricane Ian. Similarly, for Hurricane Nicole, there was no significant structural
damage to FPL’s power generating facilities, and not a single transmission
structure failed. In both storms, FPL’s storm-hardened and underground facilities
performed well. 	Smart investments in FPL’s energy grid also helped the
Company restore service to customers before it was safe to send crews into the
field, and helped to avoid more than 400,000 outages during Hurricane Ian and
more than 150,000 during Hurricane Nicole.
FPL followed a detailed, deliberate, and comprehensive process to review
contractor invoices associated with Hurricanes Ian and Nicole in accordance with
the Stipulation and Settlement of FPL’s Hurricane Irma storm restoration costs
approved 	by 	Commission 	Order 	No. 	PSC-2019-0319-S-EI 	in 	Docket 	No.
20180049-EI 	(“Irma 	Settlement”). 	This 	process 	included 	invoice 	receipt,
individual invoice review, and follow-up analysis to ensure that invoices were
paid in conformance with the applicable contract terms.
In 	total, 	FPL 	incurred 	actual 	retail 	incremental 	storm 	restoration 	costs 	of
$1,023.393 million associated with Hurricane Ian and actual retail incremental
storm restoration costs of $118.423 million associated with Hurricane Nicole.
Pursuant 	to 	Section 	18 	of 	the 	Irma 	Settlement, 	FPL 	engaged 	an 	outside
independent audit firm to examine FPL’s storm restoration costs and processes
associated with Hurricane Ian. 	This audit validated that FPL’s storm restoration
costs were accurately presented, appropriately supported, and incurred within the
time period allowed for recovery.

ORDER NO. PSC-2024-0192-PHO-EI
DOCKET NO. 20230017-EI
PAGE 7
FPL’s total Recoverable Storm Amount 3 is $1,298.027 million, as shown on
Exhibit KF-3. 	FPL petitioned for recovery of these costs consistent with the
Stipulation and Settlement approved in Order No. PSC-2021-0446-S-EI and has
collected those costs though the Interim Storm Charge approved by Order Nos.
PSC-2023-0110-PCO-EI and PSC-2023-0354-PCO-EI.
After the Commission has made its final determination of the final actual
Recoverable Storm Amount in this proceeding, FPL will compare the approved
Recoverable Storm Amount to the actual total revenues collected from the Interim
Storm Charge, as set forth in Exhibit TCC-1, in order to determine any excess or
shortfall in recovery. 	FPL will make a compliance filing with the Commission
that sets forth the calculation of the appropriate true-up rates to apply to customer
bills for a one-month period in order to refund the excess to or collect the shortfall
from customers. 	The true-up rates will be designed consistent with the cost
allocation used for the Interim Storm Charge rates approved in Order Nos. PSC-
2023-0110-PCO-EI and PSC-2023-0354-PCO-EI.
OPC: 	The burden of proof in a Commission proceeding is always on a utility seeking a
rate change and upon other parties seeking to change established rates. Fla. Power
Corp. v. Cresse, 413 So. 2d 1187, 1191 (Fla. 1982). Florida Power & Light (FPL)
has the burden to prove whether the Commission should approve FPL’s Petition
for limited proceeding for recovery of incremental storm restoration costs related
to Hurricanes Ian and Nicole, by Florida Power & Light Company.
As a result of the stipulation entered into among the parties to Docket No.
20180049-EI and approved in Order No. PSC-2019-0319-S- EI (Irma Settlement),
issued August 1, 2019, FPL agreed to follow certain process provisions related to
incurring 	storm 	restoration 	costs. 	Pursuant 	to 	Paragraph 	18 	of 	the 	Irma
Settlement, FPL also agreed to engage an independent accounting firm to audit its
compliance with the agreed process provisions for the first named tropical system
named by the National Hurricane Center for which claimed damages exceed $250
million.
The OPC has reviewed FPL’s audit plan, audit report and audit workpapers, and
the OPC further conducted discovery involving a review of a representative
sample of invoices and cost documentation. After conducting this review and
cooperatively meeting with FPL and their outside auditors, the OPC determined
that the company has materially complied with the Irma Settlement and that the
3 FPL’s total Recoverable Storm Amount, upon which the Consolidated Interim Storm Restoration Recovery Charge
was based, includes: (i) the actual retail incremental storm restoration costs associated with Hurricane Ian; (ii) the
actual retail incremental storm restoration costs associated with Hurricane Nicole; (iii) the replenishment of FPL’s
storm reserve in accordance with Paragraph 10 of the Stipulation and Settlement approved in Order No. PSC-2021-
0446-S-EI; and (iv) the remaining amounts to be collected for Hurricanes Michael, Sally, and Zeta, which have been
previously approved by the Commission Order Nos. PSC-2020-0349-S-EI and PSC-2022-0406-FOF-EI.

ORDER NO. PSC-2024-0192-PHO-EI
DOCKET NO. 20230017-EI
PAGE 8
audit was well designed and executed. FPL has also demonstrated that it
maintains processes that ensure their positive stewardship of the resources they
acquire for restoring service after severe weather events.
Based on the entirety of the circumstances, FPL’s petition meets the burden of
proof established by the Irma Settlement and other applicable laws. OPC and FPL
have agreed to stipulations to resolve all outstanding issues. OPC represents that
these stipulations are reasonable and prudent resolutions to the issues and are in
the public interest. As a result of the due diligence performed by the OPC and the
cooperation by FPL in this matter, OPC is in support of FPL’s continued
commitment 	to 	implement 	and 	update 	the 	process 	provision 	in 	the 	Irma
Settlement so that current and future customers only pay for prudent, cost-
effective storm restoration costs incurred due to extreme weather events.
Walmart: 	Walmart takes no position regarding the majority of Issues raised in this Docket,
as set forth in Section V. below. However, Walmart supports Florida Power &
Light Company's ("FPL") plan to refund storm cost charges that it over-collected
from customers in the same manner in which those storm cost charges were
originally collected, i.e., via energy charges for all customers, as set forth in Issue
14. Walmart reserves the right to raise issues addressed in its Comments filed on
March 7, 2023, in FPL's next storm cost recovery proceeding.
STAFF: 	Staff's positions are preliminary and based on materials filed by the parties and on
discovery. The preliminary positions are offered to assist the parties in preparing
for the hearing. 	Staff's final positions will be based upon all the evidence in the
record and may differ from the preliminary positions stated herein.
VIII. 	ISSUES AND POSITIONS
ISSUE 1: 	Should the incremental cost and capitalization approach (ICCA) found in
Rule 25-6.0143, F.A.C., be used to determine the reasonable and prudent
amounts to be included in the restoration costs?
FPL: 	Yes. The Incremental Cost and Capitalization Approach prescribed in Rule 25-
6.0143, 	Florida 	Administrative 	Code, 	should 	be 	used 	to 	calculate 	FPL’s
Hurricanes 	Ian 	and 	Nicole 	storm 	costs, 	including 	removing 	below-the-line
expenses and calculating storm capital costs. (Ferguson)
OPC: 	Based on the entirety of the circumstances, FPL’s petition meets the burden of
proof established by the Irma Settlement and other applicable laws. As a result of
the due diligence performed by the OPC and the cooperation by FPL in this
matter, OPC is in support of FPL’s commitment to an ongoing, continuous storm
restoration process improvement plan so that current and future customers only

ORDER NO. PSC-2024-0192-PHO-EI
DOCKET NO. 20230017-EI
PAGE 9
pay for prudent, cost-effective storm restoration costs incurred due to extreme
weather events. OPC agrees with FPL.
Walmart: 	Walmart takes no position.
STAFF: 	Staff has no position at this time.
ISSUE 2: 	Has FPL complied with the terms of the 2019 Stipulation and Settlement,
approved by Order No. PSC-2019-0319-S-EI, issued August 1, 2019? If not,
why not?
FPL: 	Yes. 	FPL has complied with the terms of the 2019 Stipulation and Settlement,
approved by Order No. PSC-2019-0319-S-EI, issued August 1, 2019. (Ferguson,
De Lucenay)
OPC: 	Based on the entirety of the circumstances, FPL’s petition meets the burden of
proof established by the Irma Settlement and other applicable laws. As a result of
the due diligence performed by the OPC and the cooperation by FPL in this
matter, OPC is in support of FPL’s commitment to an ongoing, continuous storm
restoration process improvement plan so that current and future customers only
pay for prudent, cost-effective storm restoration costs incurred due to extreme
weather events. OPC agrees with FPL.
Walmart: 	Walmart takes no position.
STAFF: 	Staff has no position at this time.
ISSUE 3: 	What is the reasonable and prudent amount of regular payroll expense to be
included in the restoration costs?
FPL: 	The reasonable and prudent regular payroll expense to be included in storm
restoration costs for Hurricane Ian and Hurricane Nicole is $6.001 million and
$2.342 million, respectively, as set forth in the table below and as shown on
Exhibits KF-1 and KF-2. 	These are the costs FPL incurred for employee time
spent in direct support of storm related activities including but not limited to
restoration, which excludes bonuses and incentive compensation.

ORDER NO. PSC-2024-0192-PHO-EI
DOCKET NO. 20230017-EI
PAGE 10
Reasonable and Prudent Amount of Regular Payroll Expense
($000s)
Storm
Total Storm
Restoration Costs
Incurred
Less
Capitalized
Costs
Less ICCA
Adjustments
Recoverable
Incremental Storm
Costs
Ian 	$15,263 	$3,789 	$5,472 	$6,001
Nicole 	$3,075 	$112 	$621 	$2,342
(Jarro, Ferguson)
OPC: 	Based on the entirety of the circumstances, FPL’s petition meets the burden of
proof established by the Irma Settlement and other applicable laws. As a result of
the due diligence performed by the OPC and the cooperation by FPL in this
matter, OPC is in support of FPL’s commitment to an ongoing, continuous storm
restoration process improvement plan so that current and future customers only
pay for prudent, cost-effective storm restoration costs incurred due to extreme
weather events. OPC agrees with FPL.
Walmart: 	Walmart takes no position.
STAFF: 	Staff has no position at this time.
ISSUE 4: 	What is the reasonable and prudent amount of overtime payroll expense to
be included in the restoration costs?
FPL: 	The reasonable and prudent amount of overtime payroll expense to be included in
storm restoration costs for Hurricane Ian and Hurricane Nicole is $28.715 million
and $6.135 million, respectively, as set forth in the table below and as shown on
Exhibits KF-1 and KF-2. These are the costs FPL incurred for employee time
spent in direct support of storm related activities including but not limited to
restoration, which excludes bonuses and incentive compensation.
Reasonable and Prudent Amount of Overtime Payroll Expense
($000s)
Storm
Total Storm
Restoration Costs
Incurred
Less ICCA
Adjustments
Recoverable
Incremental
Storm Costs
Ian 	$29,277 	$562 	$28,715
Nicole 	$6,222 	$87 	$6,135
(Jarro, Ferguson)

ORDER NO. PSC-2024-0192-PHO-EI
DOCKET NO. 20230017-EI
PAGE 11
OPC: 	Based on the entirety of the circumstances, FPL’s petition meets the burden of
proof established by the Irma Settlement and other applicable laws. As a result of
the due diligence performed by the OPC and the cooperation by FPL in this
matter, OPC is in support of FPL’s commitment to an ongoing, continuous storm
restoration process improvement plan so that current and future customers only
pay for prudent, cost-effective storm restoration costs incurred due to extreme
weather events. OPC agrees with FPL.
Walmart: 	Walmart takes no position.
STAFF: 	Staff has no position at this time.
ISSUE 5: 	What is the reasonable and prudent amount of contractor costs to be
included in the restoration costs?
FPL: 	The reasonable and prudent amount of contractor costs to be included in storm
restoration costs for Hurricane Ian and Hurricane Nicole is $564.784 million and
$64.083 million, respectively, as forth in the table below and as shown on
Exhibits KF-1 and KF-2. 	These are the costs FPL incurred for line crews and
mutual aid utilities that were necessary to support FPL’s storm restoration effort.
Reasonable and Prudent Amount of Contractor Costs
($000s)
Storm
Total Storm
Restoration
Costs Incurred
Less
Capitalized
Costs
Less ICCA
Adjustments
Recoverable
Incremental
Storm Costs
Ian 	$621,490 	$55,511 	$1,195 	$564,784
Nicole 	$65,138 	$661 	$393 	$64,083
(Jarro, Ferguson, De Lucenay)
OPC: 	Based on the entirety of the circumstances, FPL’s petition meets the burden of
proof established by the Irma Settlement and other applicable laws. As a result of
the due diligence performed by the OPC and the cooperation by FPL in this
matter, OPC is in support of FPL’s commitment to an ongoing, continuous storm
restoration process improvement plan so that current and future customers only
pay for prudent, cost-effective storm restoration costs incurred due to extreme
weather events. OPC agrees with FPL.
Walmart: 	Walmart takes no position.
STAFF: 	Staff has no position at this time.

ORDER NO. PSC-2024-0192-PHO-EI
DOCKET NO. 20230017-EI
PAGE 12
ISSUE 6: 	What is the reasonable and prudent amount of vegetation and line clearing
costs to be included in the restoration costs?
FPL: 	The reasonable and prudent amount of vegetation and line clearing costs to be
included in the restoration costs for Hurricane Ian and Hurricane Nicole is
$165.704 million and $23.451 million, respectively, as shown on Exhibits KF-1
and KF-2. 	Since FPL recovers all actual vegetation costs incurred through the
storm charge or the Storm Protection Plan Cost Recovery Clause, there is no
ICCA adjustment applicable. (Jarro, Ferguson, De Lucenay)
OPC: 	Based on the entirety of the circumstances, FPL’s petition meets the burden of
proof established by the Irma Settlement and other applicable laws. As a result of
the due diligence performed by the OPC and the cooperation by FPL in this
matter, OPC is in support of FPL’s commitment to an ongoing, continuous storm
restoration process improvement plan so that current and future customers only
pay for prudent, cost-effective storm restoration costs incurred due to extreme
weather events. OPC agrees with FPL.
Walmart: 	Walmart takes no position.
STAFF: 	Staff has no position at this time.
ISSUE 7: 	What is the reasonable and prudent amount of employee expenses to be
included in the restoration costs?
FPL: 	The reasonable and prudent amount of employee expenses to be included in the
restoration costs for Hurricane Ian and Hurricane Nicole is $0.614 million and
$0.028 million, respectively, as shown on Exhibits KF-1 and KF-2. (Ferguson)
OPC: 	Based on the entirety of the circumstances, FPL’s petition meets the burden of
proof established by the Irma Settlement and other applicable laws. As a result of
the due diligence performed by the OPC and the cooperation by FPL in this
matter, OPC is in support of FPL’s commitment to an ongoing, continuous storm
restoration process improvement plan so that current and future customers only
pay for prudent, cost-effective storm restoration costs incurred due to extreme
weather events. OPC agrees with FPL.
Walmart: 	Walmart takes no position.
STAFF: 	Staff has no position at this time.

ORDER NO. PSC-2024-0192-PHO-EI
DOCKET NO. 20230017-EI
PAGE 13
ISSUE 8: 	What is the reasonable and prudent amount of materials and supplies
expense to be included in the restoration costs?
FPL: 	The reasonable and prudent amount of materials and supplies expense to be
included in storm restoration costs for Hurricane Ian and Hurricane Nicole is
$16.024 million and $0.959 million, respectively, as forth in the table below and
as shown on Exhibits KF-1 and KF-2.
Reasonable and Prudent Amount of Materials and Supplies Expense
($000s)
Storm
Total Storm
Restoration
Costs Incurred
Less
Capitalized
Costs
Recoverable
Incremental
Storm Costs
Ian 	$47,790 	$31,766 	$16,024
Nicole 	$2,010 	$1,051 	$959
(Jarro, Ferguson)
OPC: 	Based on the entirety of the circumstances, FPL’s petition meets the burden of
proof established by the Irma Settlement and other applicable laws. As a result of
the due diligence performed by the OPC and the cooperation by FPL in this
matter, OPC is in support of FPL’s commitment to an ongoing, continuous storm
restoration process improvement plan so that current and future customers only
pay for prudent, cost-effective storm restoration costs incurred due to extreme
weather events. OPC agrees with FPL.
Walmart: 	Walmart takes no position.
STAFF: 	Staff has no position at this time.
ISSUE 9: 	What is the reasonable and prudent amount of logistics costs to be included
in the restoration costs?
FPL: 	The reasonable and prudent amount of logistic costs to be included in the
restoration costs for Hurricanes Ian and Nicole are $204.781 million and $16.841
million, respectively, as shown on Exhibits KF-1 and KF-2. (Jarro, Ferguson)
OPC: 	Based on the entirety of the circumstances, FPL’s petition meets the burden of
proof established by the Irma Settlement and other applicable laws. As a result of
the due diligence performed by the OPC and the cooperation by FPL in this
matter, OPC is in support of FPL’s commitment to an ongoing, continuous storm
restoration process improvement plan so that current and future customers only

ORDER NO. PSC-2024-0192-PHO-EI
DOCKET NO. 20230017-EI
PAGE 14
pay for prudent, cost-effective storm restoration costs incurred due to extreme
weather events. OPC agrees with FPL.
Walmart: 	Walmart takes no position.
STAFF: 	Staff has no position at this time.
ISSUE 10: 	What is the reasonable and prudent total amount of costs to be included in
the restoration costs?
FPL: 	The reasonable and prudent total amount of retail incremental costs to be included
in the restoration costs for Hurricane Ian and Hurricane Nicole is $1,023.393
million and $118.423 million, respectively, which excludes capital costs, ICCA
adjustments, and below-the-line expenses, as shown on Exhibits KF-1 and KF-2.
FPL’s 	total 	Recoverable 	Storm 	Amount, 	which 	includes 	the 	actual 	retail
incremental storm restoration costs associated with Hurricane Ian, the actual retail
incremental 	storm 	restoration 	costs 	associated 	with 	Hurricane 	Nicole, 	the
replenishment of FPL’s storm reserve in accordance with Paragraph 10 of the
Stipulation and Settlement approved in Order No. PSC-2021-0446-S-EI, and the
remaining amounts to be collected for Hurricanes Michael, Sally, and Zeta, which
were previously approved by the Commission, is $1,298.027 million as shown on
Exhibit KF-3. (Jarro, Ferguson)
OPC: 	Based on the entirety of the circumstances, FPL’s petition meets the burden of
proof established by the Irma Settlement and other applicable laws. As a result of
the due diligence performed by the OPC and the cooperation by FPL in this
matter, OPC is in support of FPL’s commitment to an ongoing, continuous storm
restoration process improvement plan so that current and future customers only
pay for prudent, cost-effective storm restoration costs incurred due to extreme
weather events. OPC agrees with FPL.
Walmart: 	Walmart takes no position.
STAFF: 	Staff has no position at this time.
ISSUE 11: 	What is the reasonable and prudent amount of storm-related costs that
should be capitalized?
FPL: 	The 	reasonable 	and 	prudent 	amount 	of storm-related 	costs 	that 	should 	be
capitalized for Hurricane Ian and Hurricane Nicole is $95.642 million and $1.945
million, respectively, as shown on Exhibits KF-1 and KF-2. 	To determine the
amount of capitalized costs, FPL used Part (1)(d) of Rule 25-6.0143, which states
that “…the normal cost for the removal, retirement and replacement of those

ORDER NO. PSC-2024-0192-PHO-EI
DOCKET NO. 20230017-EI
PAGE 15
facilities in the absence of a storm, is the basis for calculating storm restoration
capital.” (Ferguson)
OPC: 	Based on the entirety of the circumstances, FPL’s petition meets the burden of
proof established by the Irma Settlement and other applicable laws. As a result of
the due diligence performed by the OPC and the cooperation by FPL in this
matter, OPC is in support of FPL’s commitment to an ongoing, continuous storm
restoration process improvement plan so that current and future customers only
pay for prudent, cost-effective storm restoration costs incurred due to extreme
weather events. OPC agrees with FPL.
Walmart: 	Walmart takes no position.
STAFF: 	Staff has no position at this time.
ISSUE 12: 	What is the appropriate accounting treatment associated with any storm
costs found to have been imprudently incurred?
FPL: 	In the event that the Commission were to find that any of FPL’s Hurricane Ian or
Hurricane Nicole storm related costs were impudently incurred based on the
actual conditions and circumstances at the time decisions were made, such costs
would 	be 	charged 	below-the-line, 	with 	a 	corresponding 	adjustment 	to 	the
applicable total Recoverable Storm Amount, capital, or above-the-line base
O&M, and would not be recovered from customers. (Ferguson)
OPC: 	Based on the entirety of the circumstances, FPL’s petition meets the burden of
proof established by the Irma Settlement and other applicable laws. As a result of
the due diligence performed by the OPC and the cooperation by FPL in this
matter, OPC is in support of FPL’s commitment to an ongoing, continuous storm
restoration process improvement plan so that current and future customers only
pay for prudent, cost-effective storm restoration costs incurred due to extreme
weather events. OPC agrees with FPL.
Walmart: 	Walmart takes no position.
STAFF: 	Staff has no position at this time.
ISSUE 13: 	Should the Commission approve FPL’s proposed tariffs and associated
charges?
FPL: 	FPL’s Interim Storm Charge has been fully recovered and terminated as of March
31, 2024. 	The Commission should approve FPL’s proposed one-time true-up
methodology of the revenues collected through the Interim Storm Charge as set

ORDER NO. PSC-2024-0192-PHO-EI
DOCKET NO. 20230017-EI
PAGE 16
forth in Issue 14 below. Staff should be authorized to review and verify the final
true-up rates contained in FPL’s compliance filing referenced in Issue 14 below.
(Cohen)
OPC: 	Based on the entirety of the circumstances, FPL’s petition meets the burden of
proof established by the Irma Settlement and other applicable laws. As a result of
the due diligence performed by the OPC and the cooperation by FPL in this
matter, OPC is in support of FPL’s commitment to an ongoing, continuous storm
restoration process improvement plan so that current and future customers only
pay for prudent, cost-effective storm restoration costs incurred due to extreme
weather events. OPC agrees with FPL.
Walmart: 	Walmart understands that FPL's Storm Charges have been fully recovered and
terminated as of March 31, 2024. 	Without waiving its right to challenge rate
design or cost allocation in future Dockets, Walmart joins the Stipulation entered
into between the Office of Public Counsel ("OPC") and FPL related to this Issue,
and specifically FPL's proposal to refund its over-collection as set forth in Issue
14.
STAFF: 	Staff has no position at this time.
ISSUE 14: 	If applicable, how should any under-recovery or over-recovery be handled?
FPL: 	After the Commission has made its final determination of the final actual
Recoverable Storm Amount in this proceeding, FPL will compare the approved
Recoverable Storm Amount to the actual total revenues collected from the Interim
Storm Charge, as set forth in Exhibit TCC-1, in order to determine any excess or
shortfall in recovery. 	Interest will be applied to any excess or shortfall at the
thirty-day 	commercial 	paper 	rate 	consistent 	with 	Rule 	25-6.109, 	Florida
Administrative Code. 	FPL will make a compliance filing with the Commission
that sets forth the calculation of the appropriate true-up rates to apply to customer
bills for a one-month period in order to refund the excess or collect the shortfall.
The true-up rates will be designed in a manner that is consistent with the cost
allocation used for the Interim Storm Charge rates filed and approved in Order
Nos. PSC-2023-0110-PCO-EI and PSC-2023-0354-PCO-EI. 	FPL will apply the
true-up rates through the non-fuel energy charge on customers’ bills starting on
Cycle Day 1 of the first month that is more than thirty days after Commission
approval. 	FPL will notify customers of the change in their rates due to the one-
time true-up at least thirty days in advance in the form of a message on their bill,
with more detailed information regarding the revised Interim Storm Charge tariff
provided on FPL’s website, www.FPL.com/rates. (Cohen)
OPC: 	Based on the entirety of the circumstances, FPL’s petition meets the burden of
proof established by the Irma Settlement and other applicable laws. As a result of

ORDER NO. PSC-2024-0192-PHO-EI
DOCKET NO. 20230017-EI
PAGE 17
the due diligence performed by the OPC and the cooperation by FPL in this
matter, OPC is in support of FPL’s commitment to an ongoing, continuous storm
restoration process improvement plan so that current and future customers only
pay for prudent, cost-effective storm restoration costs incurred due to extreme
weather events. OPC agrees with FPL.
Walmart: 	Walmart understands that after the Commission has made its final determination
of the final actual Recoverable Storm Amount in this proceeding, FPL will
compare the approved Recoverable Storm Amount to the actual total revenues
collected from the Interim Storm Charge, as set forth in Exhibit TCC-1, in order
to determine any excess or shortfall in recovery. 	Interest will be applied to any
excess or shortfall at the thirty-day commercial paper rate consistent with Rule
25-6.109, Florida Administrative Code. FPL will make a compliance filing with
the Commission that sets forth the calculation of the appropriate true-up rates to
apply to customer bills for a one-month period in order to refund the excess. The
true-up rates will be designed in a manner that is consistent with the cost
allocation used for the Interim Storm Charge rates filed and approved in Order
Nos. PSC-2023-0110-PCO-EI and PSC-2023-0354-PCO-EI. 	FPL will apply the
true-up rates through the non-fuel energy charge on customers' bills starting on
Cycle Day 1 of the first month that is more than thirty days after Commission
approval, and will provide notification to customers of the same. 	Without
waiving its right to challenge rate design or cost allocation in future Dockets,
Walmart joins the Stipulation entered into between OPC and FPL related to this
Issue, and specifically supports FPL's proposal to refund its over-collection in the
same manner in which the charges were originally collected (i.e., via energy
charges).
STAFF: 	Staff has no position at this time.
ISSUE 15: 	Should this docket be closed?
FPL: 	Upon FPL’s submission of the compliance filing set forth in Issue 14 above, this
docket should be closed. (Cohen)
OPC: 	No.
Walmart: 	[No position stated].
STAFF: 	Staff has no position at this time.

ORDER NO. PSC-2024-0192-PHO-EI
DOCKET NO. 20230017-EI
PAGE 18
IX. 	EXHIBIT LIST
Each exhibit that is preceded by an asterisk (*) has been stipulated. All stipulated exhibits
shall be introduced into the record in the order presented below.
Witness 	Proffered By 	Description
Direct
*Michael Jarro 	FPL 	MJ-1 	Hurricane Ian - National
Hurricane Center’s Forecast
Track
*Michael Jarro 	FPL 	MJ-2 	Hurricane Ian – Satellite View
*Michael Jarro 	FPL 	MJ-3 	Hurricane Nicole – National
Hurricane Center’s Forecast
Track
*Michael Jarro 	FPL 	MJ-4 	Hurricane Nicole – Satellite
View
*Michael Jarro 	FPL 	MJ-5 	FPL’s T&D Hurricane Ian
Restoration Costs
*Michael Jarro 	FPL 	MJ-6 	FPL’s T&D Hurricane Nicole
Restoration Costs
*Keith Ferguson 	FPL 	KF-1 	Hurricane Ian Incremental
Cost and Capitalization
Approach Adjustments as of
June 1, 2023
*Keith Ferguson 	FPL 	KF-2 	Hurricane Nicole Incremental
Cost and Capitalization
Approach Adjustments as of
June 1, 2023
*Keith Ferguson 	FPL 	KF-3 	Total Storm Costs to be
Recovered from Customers
*Keith Ferguson 	FPL 	KF-4 	PwC Engagement Letter
*Keith Ferguson 	FPL 	KF-5 	PwC Attestation Report
*Tiffany C. Cohen 	FPL 	TCC-1 	Consolidated Interim Storm
Restoration Recovery Charge
Revenues

ORDER NO. PSC-2024-0192-PHO-EI
DOCKET NO. 20230017-EI
PAGE 19
Witness 	Proffered By 	Description
*Yen Ngo 	Staff 	YN-1 	Audit Report of Florida Power
& Light
Parties and Staff reserve the right to identify additional exhibits for the purpose of cross-
examination.
X. 	PROPOSED STIPULATIONS
On May 29, 2024, FPL and OPC entered into a set of stipulations attached to this
Prehearing Order as Attachment A. On June 12, 2024, Walmart filed a statement that it agrees
with paragraphs 1-4 and 12-13, and takes no position on paragraphs 5-11 and 14-16 of
Attachment A. If approved by the Florida Public Service Commission, the stipulations in
Attachment A will fully resolve the Parties' respective issues in Docket No. 20230017-EI, and
Issues 1-15 will be moot.
XI. 	PENDING MOTIONS
There are no pending motions at this time.
XII. 	PENDING CONFIDENTIALITY MATTERS
1. 	FPL’s request for confidential classification filed on November 20, 2023 [DN
06137-2023].
2. 	FPL’s request for confidential classification filed on January 25, 2024 [DN
00336-2024].
XIII. 	POST-HEARING PROCEDURES
If no bench decision is made, each party shall file a post-hearing statement of issues and
positions. A summary of each position, set off with asterisks, shall be included in that statement.
If a party's position has not changed since the issuance of this Prehearing Order, the post-hearing
statement may simply restate the prehearing position; however, if the prehearing position is
longer than 50 words, it must be reduced to no more than 50 words. If a party fails to file a post-
hearing statement, that party shall have waived all issues and may be dismissed from the
proceeding.

ORDER NO. PSC-2024-0192-PHO-EI
DOCKET NO. 20230017-EI
PAGE 20
Pursuant to Rule 28-106.215, F.A.C., a party's proposed findings of fact and conclusions
of law, if any, statement of issues and positions, and brief, shall together total no more than 40
pages and shall be filed at the same time.
XIV. 	RULINGS
Opening statements, if any, shall not exceed three minutes per party.
It is therefore,
ORDERED by Commissioner Art Graham, as Prehearing Officer, that this Prehearing
Order shall govern the conduct of these proceedings as set forth above unless modified by the
Commission.
By ORDER of Commissioner Art Graham, as Prehearing Officer, this 14th day of June,
2024.
ART GRAHAM
Commissioner and Prehearing Officer
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.
SPS
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.

ORDER NO. PSC-2024-0192-PHO-EI
DOCKET NO. 20230017-EI
PAGE 21
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 10 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.

ORDER NO. PSC-2024-0192-PHO-EI Attachment A
DOCKET NO. 20230017-EI

PAGE 22

In re: In re: Petition for limited proceeding for

recovery of incremental storm restoration costs | Docket No. 20230017-EI
related to Hurricanes Ian and Nicole, by

Florida Power & Light Company

STIPULATIONS

Florida Power & Light Company (“FPL” or the “Company”) and the Office of Public

Counsel (“OPC”) (hereinafter referred to individually as “Party” or collectively as “Parties”) herby

agree to submit for approval by the Florida Public Service Commission (“Commission”) the

following stipulations to fully resolve the Parties’ respective issues in Docket No. 20230017-EI on

the following terms and conditions:

i, The Parties stipulate to having all pre-filed testimony and exhibits filed in this docket

entered into the record; specifically the following:

a. The direct testimony of FPL witnesses Michael Jarro, along with Exhibits MJ-
1 through MJ-6;

b. The direct testimony of FPL witness Amber De Lucenay;

c. The direct testimony of FPL witness Keith Ferguson, along with Exhibits KF-
1 through KF-5;

d. The direct testimony of Tiffany C. Cohen, along with Exhibit TCC-1; and

e. The direct testimony of Staff witness Yen Ngo, along with Exhibit YN-1.

oH The Parties agree to waive cross-examination of all witnesses and, upon Commission

approval, have no objection witnesses being excused from appearing at the hearing.

3. The Parties stipulate to having all FPL’s responses to Staffs data requests entered into the

record,

ORDER NO. PSC-2024-0192-PHO-EI Attachment A
DOCKET NO. 20230017-EI
PAGE 23

4, The Parties stipulate to having all FPL responses to interrogatories and requests for
production of documents entered into the record.

5. The Parties stipulate and agree that the Incremental Cost and Capitalization Approach
prescribed in Rule 25-6.0143, Florida Administrative Code, is applicable to determining
the reasonable and prudent amounts to be included in FPL’s final Recoverable Storm
Amount! to be approved in this docket.

6. The Parties stipulate and agree that the record supports a Commission finding that the terms
of the Stipulation and Settlement of FPL’s Hurricane Irma storm restoration costs approved
by Commission Order No. PSC-2019-0319-S-EI in Docket No. 20180049-EI (“Irma
Settlement”) have been satisfied and met.

th. The Parties stipulate and agree that the record supports a Commission finding that the
actual retail incremental storm restoration costs of $1,023.393 million associated with
Hurricane Ian, as shown in Exhibit KF-1, were reasonable and prudent.

8. The Parties stipulate and agree that the record supports a Commission finding that the
actual retail incremental storm restoration costs of $118.423 million associated with
Hurricane Nicole, as shown in Exhibit KF-2, were reasonable and prudent.

9. The Parties stipulate and agree that the record supports a Commission finding that FPL’s

total Recoverable Storm Amount is $1,298.027 million, as shown on Exhibit KF-3.

' The Recoverable Storm Amount, upon which the Consolidated Interim Storm Restoration Recovery Charge
(“Interim Storm Charge”) was based, includes: (i) the actual retail incremental storm restoration costs associated with
Hurricane Ian; (ii) the actual retail incremental storm restoration costs associated with Hurricane Nicole; (iii) the
replenishment of FPL’s storm reserve in accordance with Paragraph 10 of the Stipulation and Settlement approved in
Order No. PSC-2021-0446-S-EI; and (iv) the remaining amounts to be collected for Hurricanes Michael, Sally, and
Zeta, which have been previously approved by the Commission Order Nos. PSC-2020-0349-S-EI and PSC-2022-
0406-FOF-EI.

2

ORDER NO. PSC-2024-0192-PHO-EI Attachment A
DOCKET NO. 20230017-EI
PAGE 24

10. The Parties stipulate and agree that the record supports a Commission finding that FPL’s
final Recoverable Storm Amount was calculated in compliance with the Incremental Cost
and Capitalization Approach prescribed in Rule 25-6.0143, Florida Administrative Code.

11. The Parties stipulate and agree that the record supports a Commission finding that the
actual revenues collected under the Interim Storm Charge was $1,313.764 million, as
shown on Exhibit TCC-1.

12. The Parties stipulate and agree that the record supports a Commission finding that the one-
time true-up methodology for the actual revenues collected under the Interim Storm
Charge, as proposed in the direct testimony of FPL witness Tiffany C. Cohen, is reasonable
and appropriate. Specifically, the Parties agree that once the Commission has made its
final determination of the final actual Recoverable Storm Amount in this proceeding, FPL
shall compare the approved Recoverable Storm Amount to the actual total revenues
collected from the Interim Storm Charge, as shown on Exhibit TCC-1, in order to
determine any excess or shortfall in recovery. The Parties also agree that interest shall be
applied to any excess or shortfall at the thirty-day commercial paper rate consistent with
Rule 25-6.109, Florida Administrative Code.

13. The Parties stipulate and agree that the record supports a Commission finding that FPL’s
proposal to make a compliance filing with the Commission that sets forth the calculation
of the appropriate true-up rates to apply to customer bills for a one-month period in order
to refund the excess or collect the shortfall is reasonable and appropriate. Specifically, the
Parties agree that the true-up rates shall be designed in a manner that is consistent with the
cost allocation used for the Interim Storm Charge rates filed and approved in Order Nos.

PSC-2023-0110-PCO-EI and PSC-2023-0354-PCO-EI, and that FPL shall apply the true-
3

ORDER NO. PSC-2024-0192-PHO-EI Attachment A
DOCKET NO. 20230017-EI
PAGE 25

up rates through the non-fuel energy charge on customers’ bills starting on Cycle Day 1 of
the first month that is more than thirty days after Commission approval.

14. The Parties stipulate and agree that the Commission should authorize its Staff to review
and verify the final true-up rates contained in FPL’s proposed compliance filing referenced
in Paragraph 13 above.

15. The Parties stipulate and agree that the record supports a Commission finding that FPL’s
proposal to notify customers of the change in their rates, due to the one-time true-up, at
least thirty days in advance in the form of a message on their bill, with more detailed
information regarding the revised Interim Storm Charge tariff provided on FPL’s website,
www.FPL.com/rates, is reasonable and appropriate.

16. The Parties stipulate and agree that FPL will continue to implement and update the process

provisions set forth in Sections 5 through 17 of the Irma Settlement.

ORDER NO. PSC-2024-0192-PHO-EI
DOCKET NO. 20230017-EI
PAGE 26

Attachment A

In Witness Whereof, FPL and OPC evidence their acceptance and agreement with all provisions

of these Stipulations by their signature.

FLORIDA PQWER & LIGHT COMPANY

_By: Le -

John/T “Burnett

Vice President and General Counsel
Florida Power & Light Company
700 Universe Boulevard

Juno Beach, FL 33408-0420

OFFICE OF PUBLIC COUNSEL

Ue LL

Walt Trierweiler

Public Counsel

Office of Public Counsel

111 West Madison Street, Room 812
Tallahassee, FL 32399-1400