Florida Public Service Commission native order document 01607-2026

FILED 3/18/2026
DOCUMENT NO. 01607-2026
FPSC 	- COMMISSION CLERK
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In re: Petition for a limited proceeding to
approve second solar base rate adjustment, by
Duke Energy Florida, LLC._
DOCKET NO. 202501 34- EI
ORDER NO. PSC-2026-0064-PAA-EI
ISSUED: March 	18, 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
NOTICE OF PROPOSED AGENCY ACTION
ORDER GRANTING DUKE ENERGY FLORIDA. LLC’S PETITION FOR
APPROVAL OF SECOND SOLAR BASE RATE ADJUSTMENT
BY THE COMMISSION:
NOTICE 	is 	hereby 	given by 	the 	Florida 	Public 	Service Commission 	that 	the 	action
discussed herein 	is preliminary 	in nature and will become 	final unless a person whose 	interests
are 	substantially 	affected 	files a petition 	for a formal proceeding, pursuant 	to Rule 	25-22.029,
Florida Administrative Code.
Background
By Order No. PSC-2024-0472-AS-EI, 	issued November 	12, 	2024, we approved Duke
Energy 	Florida, LLC’s (DEF 	or Company) 2024 	Settlement Agreement 	(2024 	Settlement). 1
Paragraph 	16 	of 	the 2024 	Settlement 	allows 	for 	the 	inclusion, 	in 	base 	rates, 	of up 	to 900
megawatts (MW) of solar generation through a Solar Base Rate Adjustment (SoBRA). Pursuant
to 	the 2024 Settlement, DEF will construct approximately 300 MW, per calendar year, of solar
generation that must meet certain criteria for inclusion in base rates.
On November 	6, 2025, DEF filed a limited proceeding for approval of four solar projects,
collectively known as 	the Second SoBRA Tranche. These 	solar projects 	include: Jumper Creek
in 	Sumter 	County, 	Turnpike 	in 	Osceola 	County, Lonesome Camp 	in 	Osceola 	County, 	and
Banner in Columbia County with a combined 	total capacity of approximately 300 MW. As each
of the 	solar 	facilities 	is below 75 MW, 	our 	decision 	is 	limited based on 	the 2024 	Settlement
regarding the reasonableness and cost-effectiveness of the solar generation projects.
1Order No. PSC-2024-0472-AS-EI, issued November 12, 2024, in Docket No. 20240025-EI, In re: Petition for rate
increase by Duke Energy Florida, LLC.

ORDER NO. PSC-2026-0064-PAA-EI
DOCKET NO. 20250134-EI
PAGE 2
We have jurisdiction pursuant to Sections 366.06, 366.076, and 366.92, Florida Statutes.
Decision
I. 	DEF’s Second SoBRA Tranche
In its petition, DEF proposes the addition of four solar generating facilities, with three
facilities rated at 74.9 MW, and one rated at 74.5 MW. Table 1 lists the capacity, location,
estimated in-service dates, estimated rate effective date, and the estimated installed cost for each
project. We note that the installed costs of each project below are inclusive of transmission
network upgrades associated with the facilities, which ranged from $1.5 million for Jumper
Creek to $53.3 million for Turnpike. These upgrades are necessary for designated resource status
and for a new switching station that will serve as the Turnpike site’s point of interconnection.
Table 1
Second SoBRA Tranche Projects
Jumper Creek 	Turnpike Lonesome
Camp Banner
Size (MW) 	74.9 	74.9 	74.9 	74.5
County 	Sumter 	Osceola 	Osceola 	Columbia
In-Service Date 	June 2026 	December 2026 	February 2027 	March 2027
Rate Effective Date 	July 2026 	January 2027 	March 2027 	April 2027
Installed Cost ($M) 	$123.3 	$191.9 	$166.5 	$125.7
Source: Document No. 14969-2025
Subparagraph 16(c) of the 2024 Settlement states that the reasonableness and cost-
effectiveness of the SoBRA project(s) shall be evaluated based only on whether the projects in
the 	SoBRA 	will 	(1) 	lower 	the 	projected 	system 	cumulative 	present 	value 	of 	revenue
requirements (CPVRR) as compared to a system CPVRR without the solar projects (also known
as the ‘base case’); (2) whether the CPVRR of the solar projects show positive benefits that
exceed costs within ten years; (3) whether the solar projects meet a 1.15 to 1 benefit to cost ratio;
and (4) whether the solar projects are 100 percent dedicated to serve DEF’s retail load.
The CPVRR compares the cost of the added generation, transmission, operations and
maintenance (O&M), and other expenses of the proposed solar project(s) to the avoided
traditional generation, transmission, fuel, and O&M expenses that would otherwise have been
incurred if the facilities had not been constructed. In response to our staff’s first data request,
DEF produced resource plans for both the SoBRA case and the base case used as part of its
analysis, including additions of solar, batteries, combined cycle, and combustion turbines as
future units.
Exhibit No. BMHB-4 of DEF’s petition shows a net system benefit of $117.5 million
over the life of the Second SoBRA Tranche. In response to our staff’s first data request, DEF
provided the annual values for each category. The data indicates that, on a CPVRR basis, the

ORDER NO. PSC-2026-0064-PAA-EI
DOCKET NO. 20250134-EI
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solar projects become cost-effective in 2033 and provide a lower projected system CPVRR due
to lowered fuel costs, lower generation capital costs due to the deferral of a combustion turbine
unit, and additional production tax credits (PTCs), meeting the first and second requirements.
Exhibit BMHB-4 shows that the projects provide an approximate $661.4 million in avoided costs
(including fuel, emissions, O&M, gas transportation, and capital) and $167.3 million of PTCs for
an approximate total of $828.6 million in benefits. This compares to the approximately $711.1
million cost of the solar projects (including fuel, emissions, O&M, gas transportation, and
capital), resulting in a benefit to cost ratio of 1.165 which satisfies the third requirement of the
2024 Settlement. Finally, DEF stated in its response to our staff’s first data request that the solar
projects will be included in DEF’s overall system service provided to all retail customers and
will not be included in any stratified sale to a wholesale customer, meeting the fourth and final
requirement.
The Second SoBRA Tranche: 1) lowers DEF’s system CPVRR by approximately $117.5
million; 2) shows benefits beginning in 2033; 3) has a total benefit to cost ratio of 1.165; and, 4)
is 100 percent dedicated to serving DEF’s retail load. Therefore, the Second SoBRA Tranche is
reasonable and cost-effective in accordance with the criteria of subparagraph 16(c) of the 2024
Settlement and shall be approved for inclusion in base rates through the SoBRA mechanism.
II. 	Annual Revenue Requirement
Pursuant to the 2024 Settlement, DEF was authorized to establish a SoBRA mechanism
to recover the costs associated with constructing 300 MW of solar generation annually, from
2025 through 2027. The SoBRA mechanism allows DEF to file a petition for approval of groups
of solar generation projects in separate dockets, filed closer to their respective in-service dates, in
order to ensure more accurate and current cost projections.
The 	Company, 	in 	its 	second 	SoBRA, 	requested 	we 	approve 	an 	annual 	revenue
requirement based on the projected installed cost of four projects: Jumper Creek Solar Center,
Turnpike Solar Center, Lonesome Camp Solar Center, and Banner Solar Center. The estimated
in-service dates for the facilities are June 2026 (Jumper Creek), December 2026 (Turnpike),
February 2027 (Lonesome Camp), and March 2027 (Banner). The projected annual revenue
requirement includes the Clean Energy Connection expansion revenues of $7.5 million, pursuant
to the 2024 Settlement subparagraph 16(a).
The revenue requirement for DEF’s SoBRA is based on a projected plant cost to
determine rate base and the required net operating income. The net operating income includes
O&M expenses, depreciation expenses, financing costs, insurance costs, and taxes, as well as a
debit of $7.5 million included in the Jumper Creek Solar Center, for the Clean Energy
Connection, which results in an increase in the revenue requirement. The proposed annual
revenue requirement associated with DEF’s Second SoBRA is $53 million, based on a total rate
base of $573.2 million and a net operating income of $39.5 million. Table 2 reflects each
individual project’s calculated revenue requirement.

ORDER NO. PSC-2026-0064-PAA-EI
DOCKET NO. 20250134-EI
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Table 2
DEF Second SoBRA Annual Revenue Requirement ($000)
Jumper Creek 	Turnpike 	Lonesome Camp 	Banner
Rate Base 	$120,909 	$173,250 	$155,511 	$122,900
Rate of Return 	6.670% 	6.700% 	6.700% 	6.700%
NOI Required 	8,065 	11,608 	10,419 	8,234
NOI Achieved 	(4,277) 	655 	1,045 	1,510
NOI Deficiency/Excess 	12,341 	10,953 	9,375 	6,724
NOI Multiplier 	1.344 	1.344 	1.344 	1.344
Revenue Requirement 	$16,583 	$14,717 	$12,596 	$9,035
Source: Prepared Direct Testimony and Exhibit of DEF witness Olivier, Exhibit MJO-1 (Amended 1/13/26.)
The estimated annual revenue requirement associated with DEF’s Second SoBRA
Tranche is $53 million.
III. 	Administrative Authority to Approve Tariffs
Witness Olivier stated in her testimony that DEF will file the rate adjustments and tariff sheets
for our confirmation approximately two months prior to the effective date of each of the rate
adjustments. The expected rate adjustment effective dates for the solar projects are July 2026
(Jumper Creek), January 2027 (Turnpike), March 2027 (Lonesome Camp), and April 2027.
Witness Olivier provided preliminary approximate base rate increases on the 1,000 kWh
residential bill for the four solar projects as follows: Jumper Creek, $0.49; Turnpike, $0.42;
Lonesome Camp, $0.36; and Banner, $0.26. Witness Olivier additionally stated that each of the
solar projects will provide a fuel savings of approximately $0.17 per solar plant on the 1,000
kWh residential bill.
We hereby grant Commission staff administrative authority to approve the tariffs and
associated charges as they are submitted by DEF. DEF shall file tariffs and supporting
calculations two months prior to the effective date of each solar rate base adjustment. DEF shall
also submit a letter to us declaring the commercial operation date of each solar facility prior to
any base rate changes going into effect.
Based on the foregoing, it is
ORDERED by the Florida Public Service Commission that the Petition for a limited
proceeding to approve second solar base rate adjustment, filed by Duke Energy Florida, LLC, is
approved as set forth herein. It is further
ORDERED that Commission staff shall have administrative authority to approve tariffs
and associated charges for the Second SoBRA Tranche as they are submitted by Duke Energy
Florida, LLC. DEF shall also submit a letter to this Commission declaring the commercial
operation date of each solar facility prior to any base rate changes going into effect. It is further

ORDER NO. PSC-2026-0064-PAA-EI
DOCKET NO. 20250 134-EI
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ORDERED 	that 	the 	provisions 	of this 	Order, 	issued 	as proposed agency 	action, 	shall
become 	final and 	effective upon the issuance of a Consummating Order unless an 	appropriate
petition, 	in the form provided by Rule 28-106.201, Florida Administrative Code, 	is received by
the Commission Clerk, 2540 Shumard Oak Boulevard, Tallahassee, Florida 32399-0850, by the
close of business on the date 	set forth in the “Notice of Further Proceedings” attached hereto. 	It
is further
ORDERED 	that 	if no person whose 	substantial 	interests 	are 	affected by 	the proposed
agency action 	files a protest within 21 days of the issuance of the 	order, a consummating order
shall be 	issued. 	This 	docket 	shall remain open pending DEF’s 	letters confirming commercial
operation. Once these letters have been received, this docket shall be closed administratively.
By ORDER of the Florida Public Service Commission this 18th day of March, 2026 	.
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.
ZB

ORDER NO. PSC-2026-0064-PAA-EI
DOCKET NO. 20250134-EI
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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 that is available under Section 120.57,
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 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.
The action proposed herein is preliminary in nature. Any person whose substantial
interests are affected by the action proposed by this order may file a petition for a formal
proceeding, in the form provided by Rule 28-106.201, Florida Administrative Code. 	This
petition must be received by the Office of Commission Clerk, 2540 Shumard Oak Boulevard,
Tallahassee, Florida 32399-0850, by the close of business on April 8, 2026.
In the absence of such a petition, this order shall become final and effective upon the
issuance of a Consummating Order.
Any objection or protest filed in this/these docket(s) before the issuance date of this order
is considered abandoned unless it satisfies the foregoing conditions and is renewed within the
specified protest period.