Florida Public Service Commission native order document 01263-2024

Order No. PSC-2024-0075-PHO-EIFlapubserv

Testo completo

FILED 3/21/2024
DOCUMENT NO. 01263-2024
FPSC - COMMISSION CLERK
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In re: Fuel and purchased power cost recovery
clause with generating performance incentive
factor.
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DOCKET NO. 20240001-EI
ORDER NO. PSC-2024-0075-PHO-EI
ISSUED: March 21, 2024
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 March 19 , 2024 in Tallahassee, Florida, before
Commissioner Gabriella Passidomo, as Prehearing Officer.
APPEARANCES:
MARIA 	JOSE 	MONCADA, 	WILLIAM 	P. 	COX, 	and 	DAVID 	M. 	LEE,
ESQUIRES, Florida Power & Light Company, 700 Universe Boulevard, Juno
Beach, Florida 33408-0420
On behalf of Florida Power & Light Company (FPL)
WALT 	TRIERWEILER, 	CHARLES 	REHWINKEL, 	PATRICIA 	A.
CHRISTENSEN, 	MARY 	WESSLING, 	and 	OCTAVIO 	SIMOES-PONCE,
ESQUIRES, Office of Public Counsel, c/o The Florida Legislature, 111 West
Madison Street, Room 812, Tallahassee, Florida 32399-1400
On behalf of the Citizens of the State of Florida (OPC)
JON C. MOYLE, JR. and KAREN A. PUTNAL, ESQUIRES, Moyle Law Firm,
PA, The Perkins House, 118 North Gadsden Street, Tallahassee, Florida 32301
On behalf of the Florida Industrial Power Users Group (FIPUG)
ROBERT SCHEFFEL WRIGHT and JOHN T. LAVIA, III, ESQUIRES, Gardner
Bist, Bowden, Dee, LaVia, Wright, Perry, and Harper, PA, 1300 Thomaswood
Drive, Tallahassee, Florida 32308
On behalf of Florida Retail Federation (FRF)
SUZANNE BROWNLESS and RYAN 	SANDY, 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-2024-0075-PHO-EI
DOCKET NO. 20240001-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
An administrative hearing will be held by the Florida Public Service Commission
(Commission) on March 26-27, 2024. 	The issues to be determined in 	this proceeding were
deferred from the 2023 Fuel Clause docket and are associated with nuclear power plant outages
that occurred at Florida Power & Light Company’s St. Lucie Units 1 and 2 and Turkey Point
Units 3 and 4 between 2020 and 2022.
At this time there are only four parties to the Fuel Clause docket that have standing to
participate in this proceeding: 	FPL, Office of Public Counsel (OPC), Florida Industrial Power
Users Group (FIPUG) and Florida Retail Federation (FRF). The other parties to the docket that
are without standing to participate in this proceeding are the other investor-owned electric
utilities (TECO, DEF, FPUC), Nucor, and PCS Phosphate.
FRF filed a Prehearing Statement on March 11, 2024. 	FPL, OPC, and FIPUG filed
Prehearing Statements on March 12, 2024. FPL and OPC have agreed to stipulations on all the
issues raised in this proceeding. 	FRF and FIPUG have stated that they take no position on the
issues raised in this proceeding and have requested to be excused from the March 26 final
hearing.
Given these facts, on March 8, 2024, FPL filed an Unopposed Motion to Stay Rebuttal
Testimony Deadline (Motion). 	In its Motion, FPL requested that the filing date for its rebuttal
testimony, currently March 12, be stayed and that these stipulations be voted upon by the full
Commission at the March 26 hearing. 	Should the Commission vote not to accept the
stipulations, FPL requested that a new trial schedule be set, e.g., dates for filing rebuttal
testimony, prehearing statements, hearing, etc. 	FPL’s Motion was granted by Order No. PSC-
2024-0062-PCO-EI, issued March 11, 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 366, Florida Statutes (F.S.). 	This hearing will be governed by said Chapter, Chapter
ORDER NO. PSC-2024-0075-PHO-EI
DOCKET NO. 20240001-EI
PAGE 3
120, F.S., 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.
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.
ORDER NO. PSC-2024-0075-PHO-EI
DOCKET NO. 20240001-EI
PAGE 4
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.
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
Witness 	Proffered By 	Issues #
Direct
*Daniel DeBoer 	FPL 	1-2
*Joel Gebbie 	FPL 	1
*Richard A. Polich 	OPC 	1-2
*Carl Vinson 	Staff 	1-2
*Tom Ballinger 	Staff 	1-2
*These witnesses have been excused from attending the March 26, 2024 final hearing.
ORDER NO. PSC-2024-0075-PHO-EI
DOCKET NO. 20240001-EI
PAGE 5
VII. 	BASIC POSITIONS
FPL: 	The Commission should approve the stipulated positions reached by FPL and the
Office of Public Counsel (OPC) as a reasonable resolution of the issues involved
in this matter.
OPC: 	OPC and Florida Power & Light Company (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.
FRF: 	The Commission’s task in the Fuel Docket, as in all ratemaking proceedings, is to
ensure that the rates charged by Florida public utilities are fair, just, reasonable,
non-discriminatory, and neither insufficient nor excessive. 	The utilities bear the
burden of proof that their proposed Fuel Charges satisfy the statutory criteria
articulated above. 	The FRF understands that FPL and OPC have reached a
stipulation on the issues to be addressed in the hearing scheduled for March 26,
2024, and the FRF takes no position on the proposed stipulation.
FIPUG: 	Florida Power & Light Company (FPL) and the Office of Public Counsel (OPC)
have reached a stipulation which addresses the two issues in this case. 	FIPUG
takes no position on these two issues. 	Thus, FIPUG’s position in this matter is
that FIPUG takes no position.
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
ISSSUE 1: 	What adjustment should be made with respect to replacement power costs
associated with any unplanned outages that occurred at Turkey Point or St.
Lucie during the calendar years 2020, 2021, and 2022?
FPL: 	See Stipulated Issues (Section 5).
OPC: 	Stipulation: 	FPL 	shall 	credit 	customers 	$5 	million, 	inclusive 	of 	interest,
through the fuel clause. 	The credit shall be included in the calculation of FPL’s
fuel factors the next time the fuel factors are reset. 	The prudence of, and
replacement power cost calculations associated with, all forced or unplanned
outages or down power events at the Turkey Point and St. Lucie nuclear facilities
which occurred during the calendar years 2020, 2021 and 2022 are hereby fully
resolved and shall not be subject to further challenge or litigation in the future.
ORDER NO. PSC-2024-0075-PHO-EI
DOCKET NO. 20240001-EI
PAGE 6
FRF: 	No position.
FIPUG: 	No position.
STAFF: 	No position at this time.
ISSUE 2: 	Should FPL be subject to a follow up nuclear operations and management
audit covering the 2024 to 2029 time period?
FPL: 	See Stipulated Issues (Section 5).
OPC: 	Stipulation: Yes, a follow up audit may be conducted no earlier than 2030.
FRF: 	No position.
FIPUG: 	No position.
STAFF: 	No position at this time.
IX. 	EXHIBIT LIST
Witness 	Proffered By 	Description
Direct
Daniel DeBoer 	FPL 	(DD-1) 	Reactor Trip and Trip Bypass
Breaker Inspection
Maintenance
Richard Polich 	OPC 	(RAP-1) 	Resume
(RAP-2) 	List of Polich testimony
(RAP-3) 	20220001-EI Polich testimony
(RAP-4) 	PSC Audit Report
(RAP-5) 	NRC Inspection Report
12/09/2020
Carl Vinson 	Staff 	(CV-1) 	PSC Audit Report
Tom Ballinger 	Staff 	(TEB-1) 	Summary of outages
ORDER NO. PSC-2024-0075-PHO-EI
DOCKET NO. 20240001-EI
PAGE 7
Parties and Staff reserve the right to identify additional exhibits for the purpose of cross-
examination.
X. 	PROPOSED STIPULATIONS
ISSUE 1: 	What adjustment should be made with respect to replacement power costs
associated with any unplanned outages that occurred at Turkey Point or St.
Lucie during the calendar years 2020, 2021, and 2022?
FPL:
Stipulation: 	FPL shall credit customers $5 million, inclusive of interest, through the fuel
clause. 	The credit shall be included in the calculation of FPL’s fuel factors the
next time the fuel factors are reset. The prudence of, and replacement power cost
calculations associated with, all forced or unplanned outages or down power
events at the Turkey Point and St. Lucie nuclear facilities which occurred during
the calendar years 2020, 2021 and 2022 are hereby fully resolved and shall not be
subject to further challenge or litigation in the future.
OPC:
Stipulation: 	FPL shall credit customers $5 million, inclusive of interest, through the fuel
clause. 	The credit shall be included in the calculation of FPL’s fuel factors the
next time the fuel factors are reset. The prudence of, and replacement power cost
calculations associated with, all forced or unplanned outages or down power
events at the Turkey Point and St. Lucie nuclear facilities which occurred during
the calendar years 2020, 2021 and 2022 are hereby fully resolved and shall not be
subject to further challenge or litigation in the future.
FRF: 	The FRF understands that FPL and the Office of Public Counsel have agreed to a
stipulation on the above issues. The FRF takes no position on the stipulation. If
the stipulation is not approved, the FRF will take positions on any remaining
issues as instructed by the Commission.
FIPUG: 	FIPUG has not stipulated to any matters in this matter, but understands that FPL
and OPC have reached a stipulation on the two issues above. 	FIPUG takes no
position at this time on these two issues. Should the Commission not approve this
“Type 2” stipulation between FPL and OPC, FIPUG reserves the right to
subsequently take a position on the two issues.
ISSUE 2: 	Should FPL be subject to a follow up nuclear operations and management
audit covering the 2024 to 2029 time period?
FPL:
Stipulation: 	Yes, a follow up audit may be conducted no earlier than 2030.
ORDER NO. PSC-2024-0075-PHO-EI
DOCKET NO. 20240001-EI
PAGE 8
OPC:
Stipulation: 	Yes, a follow up audit may be conducted no earlier than 2030.
FRF: 	The FRF understands that FPL and the Office of Public Counsel have agreed to a
stipulation on the above issues. The FRF takes no position on the stipulation. If
the stipulation is not approved, the FRF will take positions on any remaining
issues as instructed by the Commission.
FIPUG: 	FIPUG has not stipulated to any matters in this matter, but understands that FPL
and OPC have reached a stipulation on the two issues above. FIPUG takes no
position at this time on these two issues. Should the Commission not approve this
“Type 2” stipulation between FPL and OPC, FIPUG reserves the right to
subsequently take a position on the two issues.
XI. 	PENDING MOTIONS
There are no pending motions at this time.
XII. 	PENDING CONFIDENTIALITY MATTERS
There are no confidentiality orders pending at this time.
XIII. 	POST-HEARING PROCEDURES
Post-hearing 	procedures 	will 	depend 	upon 	whether 	the 	proposed 	stipulations 	are
approved by the Commission or are not approved. If approved, all issues will be resolved and no
further action needs to be taken by the parties. If the Commission does not approve the proposed
stipulations, the hearing will be continued and a revised procedural order will be issued.
XIV. 	RULINGS
Opening statements, if any, shall not exceed 5 minutes per party unless a party chooses to
waive its opening statement. FRF’s and FIPUG’s requests to be excused from the final hearing
on March 26 are hereby granted.
Stipulations resolving all issues shall be voted upon by the full Commission at the March
26 hearing. If approved, the testimony and exhibits as listed on the Comprehensive Exhibit List
shall be admitted into the record. Should the Commission vote not to accept the stipulations, the
hearing shall be continued and a new trial schedule shall be set, e.g., dates for filing rebuttal
testimony, prehearing statements, hearing, briefing, etc.
21st
March 2024
PSC-2024-0075-PHO-EI	ORDER NO.
DOCKET NO. 20240001-EJ
PAGE9
It is therefore,
ORDERED by Commissioner Gabriella Passidomo, 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 Gabriella Passidomo, as Prehearing Officer, this __ day
of -------
SBr
Gabriefla Passidomo
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,
NOT I CE OF FUR THE R PROCEEDINGS OR JUD ICIAL REVIEW
The Florida Public Service Commission is required by Section 	120.569( I) , 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 substantia ll y 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 Adm inistrative Code; or (2) jud icial 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 presc ribed by Rule 25-22.0376, Florida Administra ti ve Code.
Judicial review of a preliminary, procedural or intermediate ruling or order is available if review
of the final ac ti on will not provide an adequate remedy. Such review may be requested from the
ORDER NO. PSC-2024-0075-PHO-EI
DOCKET NO. 20240001-EI
PAGE 10
appropriate court, as described above, pursuant to Rule 9.100, Florida Rules of Appellate
Procedure.

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