Florida Public Service Commission native order document 04620-2026

FILED 7/24/2026
DOCUMENT NO. 04620-2026
FPSC 	- COMMISSION CLERK
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In re: Request for approval of change in rate
used to capitalize allowance for funds used
during construction (AFUDC) from 6.89% to
6.97%, effective January 	1, 2026, by Florida
Power & Light Company._
DOCKET NO. 20260080- EI
ORDER NO. PSC-2026-0257-PAA-EI
ISSUED: July 24, 2026
The following Commissioners participated in the disposition of this matter:
GABRIELLA PASSIDOMO SMITH, Chairman
GARY F. CLARK
MIKE LA ROSA
BOBBY PAYNE
ANA ORTEGA
NOTICE OF PROPOSED AGENCY ACTION
ORDER APPROVING FLORIDA POWER & LIGHT
COMPANY’S AFUDC RATE
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 (F.A.C.).
BACKGROUND
Florida Power & Light Company’s (FPL or Company) current Allowance for Funds Used
During Construction (AFUDC) rate of 6.89 percent was approved by Order No. PSC-2025-0176-
PAA-EI, issued May 29, 2025. 1 On May 	18, 2026, FPL 	filed a petition for approval 	to change
its AFUDC 	rate from 6.89 	percent 	to 6.97 	percent, 	effective January 	1, 	2026. 	As required by
Rule 	25-6.014(5), 	F.A.C., FPL 	filed with 	its 	petition 	Schedules A, 	B, and C 	identifying 	the
capital 	structure, 	capital 	structure 	adjustments, 	and 	the 	methodology 	used 	to 	calculate 	the
monthly AFUDC 	rate. We have jurisdiction over 	this matter pursuant 	to Chapter 366, Florida
Statutes (F.S.), including Sections 366.04, 366.05, and 366.06, F.S.
1 Order No. PSC-2025-0176-PAA-EI, 	issued May 	29, 2025, 	in Docket No. 20250044-EI, In 	re; Request for
approval of change in rate used to capitalize allowance for funds used during construction (AFUDC) from 6.76% to
6.89%, effective January 1, 2025, by Florida Power & Light Company.

ORDER NO. PSC-2026-0257-PAA-EI
DOCKET NO. 20260080-EI
PAGE 2
DECISION
AFUDC rate
FPL has requested an increase in its AFUDC rate from 6.89 percent to 6.97 percent. Rule
25-6.0141(3), F.A.C., Allowance for Funds Used During Construction, provides the following
guidance:
(3) The applicable AFUDC rate will be determined as follows:
(a) The most recent 13-month average embedded cost of capital, except as noted
below, must be derived using all sources of capital and adjusted using
adjustments consistent with those used by the Commission in the Company’s
last rate case.
(b) The cost rates for the components in the capital structure will be the midpoint
of the last allowed return on common equity, the most recent 13-month
average cost of short-term debt and customer deposits and a zero cost rate for
deferred taxes and all investment tax credits. The cost of long-term debt and
preferred stock will be based on end of period cost. The annual percentage
rate will be calculated to two decimal places.
In support of its requested AFUDC rate of 6.97 percent, FPL provided its calculations
and capital structure in Schedules A and B attached to its petition. 	We reviewed the schedules
and determined that the proposed rate was calculated in accordance with Rule 25-6.0141(3),
F.A.C., as presented in Attachment 1, attached to this Order. The requested increase in the
AFUDC rate is due primarily to an increase of 7 basis points in the weighted average cost of
long-term debt; an increase of 3 basis points in the weighted average cost of common equity,
offset by a decrease of 2 basis points in the combined weighted average cost of short-term debt
and customer deposits. In its calculation, the Company appropriately used the mid-point return
on equity of 10.80 percent, which was approved by Order No. PSC-2022-0358-FOF-EI.2
Based on our review, the requested increase in the AFUDC rate from 6.89 percent to 6.97
percent is appropriate and consistent with Rule 25-6.0141, F.A.C. Therefore, an AFUDC rate of
6.97 percent is approved.
Compounding rate
FPL requested a monthly compounding rate of 0.563065 percent to achieve an annual
AFUDC rate of 6.97 percent. 	In support of the requested monthly compounding rate of
0.563065 percent, the Company provided its calculations in Schedule C attached to its request.
2 Order No. PSC-2022-0358-FOF-EI, issued October 21, 2022, in Docket No. 20210015-EI, In re: Petition for rate
increase by Florida Power & Light Company.

ORDER NO. PSC-2026-0257-PAA-EI
DOCKET NO. 20260080-EI
PAGE 3
Rule 25-6.0141(4)(a), F.A.C., provides the following formula for discounting the annual
AFUDC rate to reflect the monthly compounding.
M=[((1+A/100) 1/12
)-1] x 100
Where: M = Discounted monthly AFUDC rate.
A = Annual AFUDC rate.
The rule also requires that the monthly compounding rate be calculated to six decimal places.
We have reviewed the Company’s calculation and determined it was derived in
accordance with Rule 25-6.0141(4), F.A.C., as presented in Attachment 2, attached to this Order.
Therefore, we hereby approve a monthly compounding AFUDC rate of 0.563065 percent.
Effective date
FPL’s requested AFUDC rate was calculated using the most recent 13-month average
capital structure for the period ended December 31, 2025. Rule 25-6.0141(6), F.A.C., provides
that:
No utility may charge or change its AFUDC rate without prior Commission
approval. The new AFUDC rate will be effective the month following the end of
the 12-month period used to establish that rate and may not be retroactively
applied to a previous fiscal year unless authorized by the Commission.
The Company’s requested effective date of January 1, 2026, complies with the rule
requirement that the effective date does not precede the period used to calculate the rate.
Therefore, we approve an effective date of January 1, 2026.
Based on the foregoing, it is
ORDERED by the Florida Public Service Commission that the appropriate AFUDC rate
for Florida Power & Light Company is 6.97 percent based on a 13-month average capital
structure for the period ended December 31, 2025. It is further
ORDERED that the appropriate monthly compounding rate to achieve an annual AFUDC
rate of 6.97 percent is 0.563065 percent. It is further
ORDERED that the AFUDC rate shall be effective January 1, 2026, for all purposes. It
is further
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

ORDER NO. PSC-2026-0257-PAA-EI
DOCKET NO. 20260080-EI
PAGE 4
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 in the event this Order becomes final, this docket shall be closed.
By ORDER of the Florida Public Service Commission this 24th day of July, 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.
SBr

ORDER NO. PSC-2026-0257-PAA-EI
DOCKET NO. 20260080-EI
PAGE 5
NOTICE OF FURTHER PROCEEDINGS OR JUDICIAL REVIEW
The Florida Public Service Commission is required by Section 120.569(1), Florida
Statutes, to notify parties of any administrative hearing 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 August 14, 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.

ORDER NO. PSC-2026-0257-PAA-EI
DOCKET NO. 20260080-EI 	Attachment 1
PAGE 6
FLORIDA POWER & LIGHT COMPANY
CAPITAL STRUCTURE USED FOR THE REQUESTED AFUDC RATE
AS OF DECEMBER 31, 2025
CAPITAL COMPONENTS
JURISDICTIONAL
AVERAGE
CAPITAL
RATIO
COST OF
CAPITAL
WEIGHTED
COST OF
CAPITAL
COMMON EQUITY 	$35,132,360,236 	49.75% 	10.80% 	5.37%
LONG-TERM DEBT 	$22,901,639,288 	32.43% 	4.69% 	1.52%
SHORT-TERM DEBT 	$896,249,804 	1.27% 	4.86%* 	0.06%
CUSTOMER DEPOSITS 	$582,919,497 	0.83% 	2.17%* 	0.02%
DEFERRED INCOME TAXES 	$8,023,947,130 	11.36% 	0.00% 	0.00%
FAS 109 DIT 	$2,299,580,894 	3.26% 	0.00% 	0.00%
INVESTMENT TAX CREDITS 	$785,716,169 	1.11% 	0.00% 	0.00%
TOTAL 	$70,622,413,018 	100.00% 	6.97%
* 13-MONTH AVERAGE
COMMISSION APPROVED

ORDER NO. PSC-2026-0257-PAA-EI
DOCKET NO. 20260080-EI 	Attachment 2
PAGE 7
FLORIDA POWER & LIGHT COMPANY
METHODOLOGY FOR COMPOUNDING AFUDC RATE
AS OF DECEMBER 31, 2025
MONTHS 	AFUDC BASE
MONTHLY
AFUDC RATE
CUMULATIVE
AFUDC RATE
1 	1.00000000 	0.00563065 	0.00563065
2 	1.00563065 	0.00566235 	0.01129300
3 	1.01129300 	0.00569423 	0.01698723
4 	1.01698723 	0.00572629 	0.02271352
5 	1.02271352 	0.00575854 	0.02847206
6 	1.02847206 	0.00579096 	0.03426302
7 	1.03426302 	0.00582357 	0.04008659
8 	1.04008659 	0.00585636 	0.04594295
9 	1.04594295 	0.00588933 	0.05183228
10 	1.05183228 	0.00592250 	0.05775478
11 	1.05775478 	0.00595584 	0.06371062
12 	1.06371062 	0.00598938 	0.06970000
Annual Rate (R) = 0.069700
Monthly Rate = ((1+R)^(1/12))-1 = 0.00563065
COMMISSION APPROVED