Order No. PSC-2024-0481-FOF-EI•Florida Public Service Commission native order document 09997-2024
Florida Public Service Commission native order document 09997-2024
Order No. PSC-2024-0481-FOF-EIFlapubserv
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FILED 11/22/2024 DOCUMENT NO. 09997-2024 FPSC - COMMISSION CLERK BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION In re: Fuel and purchased power cost recovery clause with generating performance incentive factor. DOCKET NO. 20240001-EI ---------------- ORDER NO. PSC-2024-0481-FOF-EI ISSUED: November 22, 2024 The following Commissioners participated in the disposition of this matter: MIKE LA ROSA, Chairman ARTGRAHAM GARY F. CLARK ANDREW GILES FAY GABRIELLA P ASSIDOMO FINAL ORDER APPROVING EXPENDITURES AND TRUE-UP AMOUNTS FOR FUEL ADJUSTMENT FACTORS; GPIF TARGETS, RANGES, AND REWARDS; AND PROJECTED EXPENDITURES AND TRUE-UP AMOUNTS FOR CAPACITY COST RECOVERY FACTORS APPEARANCES: MATTHEW BERNIER and STEPHANIE CUELLO, ESQUIRES, 106 East College Avenue, Tallahassee, Florida 32301-7740; and DIANNE M. TRIPLETT, ESQUIRE, 299 First Avenue North, St. Petersburg, Florida 33701 On behalf of Duke Energy Florida, LLC (DEF). 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). BETH KEATING, ESQUIRE, Gunster, Yoakley & Stewart, P.A., 215 South Monroe St., Suite 601, Tallahassee, Florida 32301 On behalf of Florida Public Utilities Company (FPUC). MALCOLM N. MEANS, and J. JEFFRY WAHLEN, and VIRGINIA PONDER, ESQUIRES, Ausley McMullen, Post Office Box 391, Tallahassee, Florida 32302 On behalf of Tampa Electric Company (TECO). 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).
ORDER NO. PSC-2024-0481-FOF-EI DOCKET NO. 20240001-EI PAGE 2 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 & Harper, PA, 1300 Thomaswood Drive, Tallahassee, Florida 32308 On behalf of the 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. KEITH HETRICK, ESQUIRE, General Counsel, Florida Public Service Commission, 2540 Shumard Oak Boulevard, Tallahassee, Florida 32399-0850 Florida Public Service Commission General Counsel. BY THE COMMISSION BACKGROUND As p art of the continuing fuel and purchased power adjustment and generating performance incentive clause proceedings, an administrative hearing was held on November 5, 2024. We have jurisdiction over this subject matter pursuant to the provisions of Chapter 366, Florida Statutes (F.S.), including Sections 366.04, 366.05, and 366.06, F.S. White Springs Agricultural Chemicals, Inc. d/b/a PCS Phosphate – White Springs and Nucor Steel Florida, Inc., parties to this docket, were excused from this hearing. All of the issues in this docket for Duke Energy Florida, LLC (DEF), Florida Public Utilities Company (FPUC), and Tampa Electric Company (TECO) have been stipulated to by all of the parties. Likewise, all of FPL’s issues have been stipulated to by all of the parties except Issues 2K-2N, as discussed below. DECISION At the hearing, Exhibit Nos. 1-80 were admitted into evidence without objection and the prefiled testimony of all witnesses listed on Page 5 of Prehearing Order, Order No. PSC-2024- 0465-PHO-EI, issued October 31, 2024, were admitted into evidence. We approved all of the
ORDER NO. PSC-2024-0481-FOF-EI DOCKET NO. 20240001-EI PAGE 3 stipulations contained on Attachment A hereto. Upon approval of the Type 2 stipulations1 listed in Attachment A, all issues were resolved for DEF, FPUC and TECO and those parties were excused. Likewise, all of FPL’s issues, except Issues 2K-2N, were also resolved by our approval of the Type 2 stipulations contained in Attachment A. The procedural matters associated with FPL’s Issue Nos. 2K-2N were then taken up. FPL Issue Nos. 2K through 2N FPL Issue Nos. 2K through 2N2 concern the replacement power costs for FPL’s St. Lucie Units 1 and 2 for May/June and July of 2024. All parties have agreed that these issues should be deferred from this final hearing to a later date. However, the parties initially disagreed about three additional procedural matters which have been raised by FPL. First, should the hearing be deferred until a date certain, specifically until 2026? Second, should these issues be taken up in this Fuel Clause docket, the 2025 FPL rate case, or spun off into a separate docket? Third, should discovery on these issues be deferred until 2026? After oral argument FPL, FRF, and FIPUG were able to reach agreement on these procedural issues as follows: “Resolution of these issues, Numbers 2K-2N, should be deferred to the Fuel Clause hearing in 2026, but discovery on Issue Nos. 2K-2N can begin on April 1, 2025, provided it is limited to Issue Nos. 2K-2N.” OPC took no position on this language but agreed that a Type 2 Stipulation was acceptable. Due to the fact that the prudence of plant operation decisions and replacement fuel costs are traditionally litigated in the Fuel Clause we find that the stipulation to do so here is appropriate. We are also persuaded that deferring the consideration of these issues until 2026, given the extensive time it will take for FPL to prepare and litigate its anticipated rate case, is appropriate. We further find that allowing discovery to start on April 1, 2025, provided that discovery is limited to Issue Nos. 2K-2N, is a reasonable compromise and is approved. That being the case, we approve the Type 2 stipulation as proposed by the parties for Issue Nos. 2K-2N. All issues, testimony and exhibits having been stipulated to and all stipulations having been approved by this Commission, the hearing was adjourned. The new fuel adjustment and capacity factors shall become effective as set forth in the stipulations. The new factors shall continue in effect until modified by us. We hereby approve revised tariffs reflecting the fuel adjustment factors and capacity cost recovery factors 1 A Type 2 stipulation occurs on an issue when the utility and staff, or the utility and at least one party adversarial to the utility, agree on the resolution of the issue and the remaining parties (including staff if they do not join in the agreement) do not object to the Commission relying on the agreed language to resolve that issue in a final order. 2Issue 2K: Were FPL’s actions related to the forced outage event(s) that occurred at St. Lucie Nuclear Unit No. 1 in July 2024 prudent? If not, what actions should the Commission take?; Issue 2L:How much replacement power cost did FPL incur due to the forced outage event(s) that occurred at St. Lucie Nuclear Unit No. 1 in July 2024?; Issue 2M: Were FPL’s actions related to the forced outage event(s) that occurred at St. Lucie Nuclear Unit No. 2 in May/June 2024 prudent? If not, what actions should the Commission take?; Issue 2N: How much replacement power cost did FPL incur due to the forced outage event(s) that occurred at St. Lucie Nuclear Unit No. 2 in July 2024?.
ORDER NO. PSC-2024-0481-FOF-EI DOCKET NO. 20240001-EI PAGE 4 determined to be appropriate in this proceeding. We direct staff to verify that the revised tariffs are consistent with our decision. Based on the foregoing, it is ORDERED by the Florida Public Service Commission that the findings set forth in the body of this order, and Attachment A hereto, are hereby approved. It is further ORDERED that Duke Energy Florida, LLC, Florida Public Utilities Company, Florida Power & Light Company and Tampa Electric Company are hereby authorized to apply the fuel cost recovery factors set forth herein during the period January 2025 through December 2025. It is further ORDERED that the estimated true-up amounts contained in the fuel cost recovery factors approved herein are hereby authorized subject to final true-up and further subject to proof of the reasonableness and prudence of the expenditures upon which the amounts are based. It is further ORDERED that Duke Energy Florida, LLC, Florida Power & Light Company, and Tampa Electric Company are hereby authorized to apply the capacity cost recovery factors set forth herein during the period January 2025 through December 2025. It is further ORDERED that the estimated true-up amounts contained in the capacity cost recovery factors approved herein are hereby authorized subject to final true-up and further subject to proof of the reasonableness and prudence of the expenditures upon which the amounts are based. It is further ORDERED that the revised tariffs reflecting the fuel adjustment factors and capacity cost recovery factors determined to be appropriate in this proceeding are hereby approved and we direct Commission staff to verify that the revised tariffs are consistent with our decision. It is further ORDERED that Issue Nos. 2K-2N shall be deferred to the 2026 Fuel Clause docket and that discovery on those issues shall not begin until April 1, 2025. It is further ORDERED that while the Fuel and Purchased Power Cost Recovery Clause with Generating Performance Incentive Factor docket is assigned a separate docket number each year for administrative convenience, it is a continuing docket and shall remain open.
ORDER NO. PSC-2024-048 l-FOF-EI DOCKET NO. 20240001-EI PAGES By ORDER of the Florida Public Service Commission this 22nd day of November, 2024. SBr Commi Florida Public Service Commission 2540 Shumard Oak Boulevard Tallahassee, Florida 32399 (850) 413-6770 www.tloridapsc.com Copies furnished: A copy of this document is provided to the pa,ties of record at the time of issuance and, if applicable, interested persons. NOTICE OF FU RTHER 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. Any party adversely affected by the Commission's final action in this matter may request: 1) reconsideration of the decision by filing a motion for reconsideration with the Office of Commission Clerk, 2540 Shumard Oak Boulevard, Tallahassee. Florida 32399-0850, within fifteen (15) days of the issuance of this order in the form prescribed by Rule 25-22.060, 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 and/or wastewater utility by filing a notice of appeal with the Office of Commission Clerk, and filing a copy of the notice of appeal and the filing fee with the appropriate court. This fil ing must be completed within thirty (30) days after the issuance of this order, pursuant to Rule 9.110, Florida Rules of Appellate Procedure. The notice of appeal must be in the fonn specified in Rule 9.900(a), Florida R ules of Appellate Procedure.
ORDER NO. PSC-2024-0481-FOF-EI Attachment A DOCKET NO. 20240001-EI Page 1 of 23 PAGE 6 BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION In re: Fuel and purchased power cost recovery clause with generating performance incentive factor. DOCKET NO. 20240001-EI ORDER NO. ISSUED: PROPOSED STIPULATIONS The following issues are proposed as Type 2 3 stipulations in this proceeding: 4 I. COMPANY-SPECIFIC FUEL ISSUES Duke Energy Florida, LLC. ISSUE 1A: Should the Commission approve DEF’s 2025 Risk Management Plan? Stipulation: Yes. Approve DEF’s 2025 Risk Management Plan without financial hedging. ISSUE 1B: What is the appropriate subscription bill credit associated with DEF’s Clean Energy Connection Program, approved by Order No. PSC-2021-0059-S-EI, to be included for recovery in 2025? Stipulation: $70,932,763. ISSUE 1C: What is the appropriate Clean Energy Impact (CEI) credit, approved by Order No. PSC-2023-0191-TRF-EI, to be included in the fuel clause in 2025? Stipulation: ($248,300). 3 A Type 2 stipulation occurs on an issue when the utility and staff, or the utility and at least one party adversarial to the utility, agree on the resolution of the issue and the remaining parties (including staff if they do not join in the agreement) do not object to the Commission relying on the agreed language to resolve that issue in a final order. 4 The OPC, FRF, PCS Phosphate, Nucor and FIPUG position on each Type 2 stipulation stated herein is as follows: The OPC, FRF, PCS Phosphate, Nucor and FIPUG take no position on these issues nor do they have the burden of proof related to them. As such, the OPC, FRF, PCS Phosphate, Nucor and FIPUG represent that they will not contest or oppose the Commission taking action approving a proposed stipulation between the Company and another party or staff as a final resolution of these issues. No person is authorized to state that the OPC, FRF, PCS Phosphate, Nucor or FIPUG is a participant in, or party to, a stipulation on these issues, either in this docket, in an order of the Commission or in a representation to a Court.
ORDER NO. PSC-2024-0481-FOF-EI Attachment A DOCKET NO. 20240001-EI Page 2 of 23 PAGE 7 Florida Power & Light Company ISSUE 2A: What was the total gain under FPL’s Incentive Mechanism approved by Order No. PSC-2021-0446A-S-EI that FPL may recover for the period January 2023 through December 2023, and how should that gain to be shared between FPL and its customers? Stipulation: Total gain was $123,207,265. Customer distribution - $77,103,632, FPL distribution - $46,103,632. ISSUE 2B: What is the appropriate amount of Incremental Optimization Costs under FPL’s Incentive Mechanism approved by Order No. PSC-2021-0446A-S-EI that FPL should be allowed to recover through the fuel clause for Personnel, Software, and Hardware costs for the period January 2023 through December 2023? Stipulation: $517,530. ISSUE 2C: What is the appropriate amount of Variable Power Plant O&M Attributable to Off-System Sales under FPL’s Incentive Mechanism approved by Order No. PSC-2021-0446A-S-EI that FPL should be allowed to recover through the fuel clause for the period January 2023 through December 2023? Stipulation: $1,603,947. ISSUE 2D: What is the appropriate amount of Variable Power Plant O&M Avoided due to Economy Purchases under FPL’s Incentive Mechanism approved by Order No. PSC-2021-0446A-S-EI that FPL should be allowed to recover through the fuel clause for the period January 2023 through December 2023? Stipulation: ($76,763). ISSUE 2E: What is the appropriate subscription credit associated with FPL’s SolarTogether Program approved by Order No. PSC-2020-0084-S-EI, to be included for recovery in 2025? Stipulation: $245,377,980.
ORDER NO. PSC-2024-0481-FOF-EI Attachment A DOCKET NO. 20240001-EI Page 3 of 23 PAGE 8 ISSUE 2F: Should the Commission approve FPL’s 2025 Risk Management Plan? Stipulation: Yes. Approve FPL’s 2025 Risk Management Plan without financial hedging. ISSUE 2G: Are the 2025 SoBRA units proposed by FPL cost effective? Stipulation: Yes. ISSUE 2H: What are the revenue requirements associated with the 2025 SoBRA Project? Stipulation: $61,087,293. ISSUE 2I: What is the appropriate base rate percentage increase for the 2025 SoBRA Project, to be effective when all 2025 units are in service? Stipulation: 0.667%. ISSUE 2J: Should the Commission approve revised tariffs for FPL reflecting the base rate percentage increases for the 2025 SoBRA project determined to be appropriate in this proceeding? Stipulation: Yes. Florida Public Utilities Company No company-specific fuel issues for Florida Public Utilities Company have been identified at this time. If such issues are identified, they shall be numbered 3A, 3B, 3C, and so forth, as appropriate.
ORDER NO. PSC-2024-0481-FOF-EI Attachment A DOCKET NO. 20240001-EI Page 4 of 23 PAGE 9 Tampa Electric Company ISSUE 4A: What was the total gain under TECO’s Optimization Mechanism approved by Order No. PSC-2021-0423-S-EI that TECO may recover for the period January 2023 through December 2023, and how should that gain to be shared between TECO and its customers? Stipulation: Total gain was $10,045,377. Customer distribution - $6,922,689, TECO distribution - $3,122,688. ISSUE 4B: Should the Commission approve TECO’s 2025 Risk Management Plan? Stipulation: Yes. Approve TECO’s 2025 Risk Management Plan without financial hedging. GENERIC FUEL ADJUSTMENT ISSUES ISSUE 5: What are the appropriate actual benchmark levels for calendar year 2024 for gains on non-separated wholesale energy sales eligible for a shareholder incentive? Stipulation: DEF: $3,806,475. ISSUE 6: What are the appropriate estimated benchmark levels for calendar year 2025 for gains on non-separated wholesale energy sales eligible for a shareholder incentive? Stipulation: Drop Issue. There are no participating utilities operating under this incentive methodology in 2025. ISSUE 7: What are the appropriate final fuel adjustment true-up amounts for the period January 2023 through December 2023? Stipulations: DEF: Under-recovery of $19,202,150 (collected through its 2024 Mid-Course Correction as per Order No. PSC-2024-0171-PCO-EI).5 5Order No. PSC-2024-0171-PCO-EI, issued May 24, 2024, in Docket No. 20240001-EI, In re: Fuel and purchased power cost recovery clause with generating performance incentive factor.
ORDER NO. PSC-2024-0481-FOF-EI Attachment A DOCKET NO. 20240001-EI Page 5 of 23 PAGE 10 FPL: $0 (actual 2023 fuel cost true-up over-recovery of $37,290,272 was returned through its 2024 Mid-Course Correction as per Order No. PSC-2024-0091-PCO- EI).6 FPUC: Over-recovery of $1,633,921. TECO: Over-recovery of $30,397,837 (returned through its 2024 Mid-Course Correction as per Order No. PSC-2024-0172-PCO-EI).7 ISSUE 8: What are the appropriate fuel adjustment actual/estimated true-up amounts for the period January 2024 through December 2024? Stipulations: DEF: Over-recovery of $163,946,191. FPL: Under-recovery of $19,030,441. FPUC: Over-recovery of $3,060,756. TECO: Over-recovery of $63,853,334. ISSUE 9: What are the appropriate total fuel adjustment true-up amounts to be collected/refunded from January 2025 through December 2025? Stipulations: DEF: Over-recovery of $8,537,789. FPL: Under-recovery of $19,030,441. FPUC: Over-recovery of $4,694,677. TECO: Over-recovery of $28,431,329. 6Order No. PSC-2024-0091-PCO-EI, issued April 10, 2024, in Docket No. 20240001-EI, In re: Fuel and purchased power cost recovery clause with generating performance incentive factor. 7Order No. PSC-2024-0172-PCO-EI, issued May 24, 2024, in Docket No. 20240001-EI, In re: Fuel and purchased power cost recovery clause with generating performance incentive factor.
ORDER NO. PSC-2024-0481-FOF-EI Attachment A DOCKET NO. 20240001-EI Page 6 of 23 PAGE 11 ISSUE 10: What are the appropriate projected total fuel and purchased power cost recovery amounts for the period January 2025 through December 2025? Stipulations: DEF: $1,535,664,540. FPL: $3,112,084,981. FPUC: $52,050,622. TECO: $694,330,891. COMPANY-SPECIFIC GENERATING PERFORMANCE INCENTIVE FACTOR ISSUES Duke Energy Florida, LLC. No company-specific GPIF issues for Duke Energy Florida, LLC have been identified at this time. If such issues are identified, they shall be numbered 11A, 11B, 11C, and so forth, as appropriate. Florida Power & Light Company No company-specific GPIF issues for Florida Power and Light Company have been identified at this time. If such issues are identified, they shall be numbered 12A, 12B, 12C, and so forth, as appropriate. Tampa Electric Company No company-specific GPIF issues for Tampa Electric Company have been identified at this time. If such issues are identified, they shall be numbered 13A, 13B, 13C, and so forth, as appropriate.
ORDER NO. PSC-2024-0481-FOF-EI Attachment A DOCKET NO. 20240001-EI Page 7 of 23 PAGE 12 GENERIC GPIF ISSUES ISSUE 14: What is the appropriate GPIF reward or penalty for performance achieved during the period January 2023 through December 2023 for each investor- owned electric utility subject to the GPIF? Stipulations: DEF: A reward of $1,603,057. FPL: A reward of $11,145,919. TECO: A reward of $1,830,750. ISSUE 15: What should the GPIF targets/ranges be for the period January 2025 through December 2025 for each investor-owned electric utility subject to the GPIF? Stipulations: DEF: Table 15-1 GPIF Targets/Ranges for the period January-December, 2025 DEF Plant/Unit EAF ANOHR Target Maximum Target Maximum EAF ( % ) EAF ( % ) Savings ($000's) ANOHR Btu/kWh ANOHR Btu/kWh Savings ($000's) Bartow 4 90.43 93.25 1,532 7,557 7,758 5,227 Citrus County 1 78.33 79.37 857 6,866 6,967 2,083 Citrus County 2 91.14 91.70 8 6,783 6,870 2,096 Crystal River 5 82.52 88.81 4,193 10,328 10,927 5,908 Hines 1 96.14 97.95 436 7,449 7,578 1,231 Hines 2 82.06 83.79 109 7,831 8,111 2,412 Hines 3 95.21 97.45 350 7,177 7,283 1,016 Hines 4 77.29 80.59 424 7,158 7,287 1,326 Osprey 1 85.26 87.16 203 7,223 7,508 2,631 Totals $8,111 $23,931 Source: GPIF Target and Range Summary (Exhibit ARB-1P, Page 4 of 94).
ORDER NO. PSC-2024-0481-FOF-EI Attachment A DOCKET NO. 20240001-EI Page 8 of 23 PAGE 13 FPL: Table 15-2 GPIF Targets/Ranges for the period January-December, 2025 FPL Plant/Unit EAF ANOHR Target Maximum Target Maximum EAF ( % ) EAF ( % ) Savings ($000’s) ANOHR Btu/kWh ANOHR Btu/kWh Savings ($000’s) Canaveral 3 92.3 94.8 858 6,750 6,837 1,473 Ft. Myers 2 91.2 93.7 163 7,394 7,612 3,269 Manatee 3 90.3 92.8 670 6,899 7,057 3,503 Martin 8 91.4 94.4 539 6,954 7,176 5,098 Okeechobee 1 90.9 93.9 803 6,425 6,510 2,869 Port Everglades 5 76.3 78.8 1,357 6,677 6,834 3,028 Riviera 5 94.3 96.8 640 6,631 6,706 1,946 Sanford 4 93.3 95.8 116 7,312 7,414 1,454 Sanford 5 83.1 85.6 149 7,293 7,397 1,400 St. Lucie 1 82.6 85.6 4,404 10,387 10,486 368 St. Lucie 2 93.6 96.6 4,375 10,341 10,438 306 Turkey Point 3 93.6 96.6 4,184 10,524 10,679 561 Turkey Point 4 84.3 87.3 4,011 10,418 10,548 399 Turkey Point 5 83.6 86.1 809 7,157 7,257 1,051 West County 1 91.0 94.0 874 7,028 7,152 2,621 West County 2 93.5 96.0 935 6,893 7,001 2,780 West County 3 88.0 90.5 772 7,068 7,173 2,244 Totals* $25,659 $34,370 Source: GPIF Target and Range Summary, including Errata (Exhibit CRR-2, Pages 8-9 of 46) TECO: Table 15-3 GPIF Targets/Ranges for the period January-December, 2025 TECO Plant/Unit Target Maximum Target Maximum EAF ( % ) EAF ( % ) Savings ($000's) ANOHR Btu/kWh ANOHR Btu/kWh Savings ($000's) Big Bend CC 1 93.4 94.2 2,497 6,262 6,288 843 Polk 2 71.9 74.3 4,818 7,456 7,871 4,747 Bayside 1 70.6 72.3 2,256 7,349 7,617 9,646 Bayside 2 93.3 94.1 247 7,723 8,638 6,317 Totals $9,818 $21,553 Source: GPIF Target and Range Summary (Exhibit EBV-2, Document 1, Page 4 of 28).
ORDER NO. PSC-2024-0481-FOF-EI Attachment A DOCKET NO. 20240001-EI Page 9 of 23 PAGE 14 FUEL FACTOR CALCULATION ISSUES ISSUE 16: What are the appropriate projected net fuel and purchased power cost recovery and Generating Performance Incentive amounts to be included in the recovery factor for the period January 2025 through December 2025? Stipulations: DEF: $1,599,414,275. FPL: $3,431,589,874. FPUC: $47,355,945. TECO: $671,420,329. ISSUE 17: What is the appropriate revenue tax factor to be applied in calculating each investor-owned electric utility’s levelized fuel factor for the projection period January 2025 through December 2025? Stipulations: DEF: N/A. FPL: N/A. FPUC: 1.000848. TECO: 1.000848. ISSUE 18: What are the appropriate levelized fuel cost recovery factors for the period January 2025 through December 2025? Stipulations: DEF: 3.918 cents per kWh. FPL: January 2025, 2.748 cents per kWh. February-December 2025, 2.710 cents per kWh. FPUC: 5.550 cents per kWh.
ORDER NO. PSC-2024-0481-FOF-EI Attachment A DOCKET NO. 20240001-EI Page 10 of 23 PAGE 15 TECO: January – May 2025, 3.078 cents per kWh. June – December 2025, 3.386 cents per kWh. ISSUE 19: What are the appropriate fuel recovery line loss multipliers to be used in calculating the fuel cost recovery factors charged to each rate class/delivery voltage level class? Stipulations: DEF: Table 19-1 DEF Fuel Recovery Line Loss Multipliers for the period January-December, 2025 Delivery Voltage Level Line Loss Multiplier Transmission 0.9800 Distribution Primary 0.9900 Distribution Secondary 1.0000 Lighting Service 1.0000 Source: Exhibit GPD-3, Part 2, Page 1 of 1. FPL: The appropriate fuel recovery line loss multipliers to be used in calculating the fuel cost recovery factors charged to each rate class/delivery voltage level class are shown in Issue No. 20. FPUC: The appropriate fuel recovery line loss multiplier to be used in calculating the fuel cost recovery factors charged to each rate class/delivery voltage level class is 1.00000. TECO: Table 19-4 TECO Fuel Recovery Line Loss Multipliers for the period January-December, 2025 Delivery Voltage Level Line Loss Multiplier Transmission 0.98 Distribution Primary 0.99 Distribution Secondary 1.00 Lighting Service 1.00 Source: Exhibit ZDJ-3, Document No. 2, Pages 7-8 of 46.
ORDER NO. PSC-2024-0481-FOF-EI Attachment A DOCKET NO. 20240001-EI Page 11 of 23 PAGE 16 ISSUE 20: What are the appropriate fuel cost recovery factors for each rate class/delivery voltage level class adjusted for line losses? Stipulations: DEF: Table 20-1 DEF Fuel Cost Recovery Factors for the period January-December, 2025 Delivery Voltage Level Fuel Cost Recovery Factors (cents/kWh) Time of Use (cents/kWh) First Tier Second Tier Levelized On-Peak Multiplier 1.137 Off-Peak Multiplier 0.995 Discount Multiplier 0.909 Transmission -- -- 3.847 4.374 3.828 3.497 Distribution Primary -- -- 3.886 4.418 3.867 3.532 Distribution Secondary 3.630 4.700 3.925 4.463 3.905 3.568 Lighting Service -- -- 3.829 -- -- -- Source: Schedule E1-E (Exhibit GPD-3, Part 2, Page 1 of 1). FPL: Table 20-2 FPL Fuel Cost Recovery Factors for the period January, 2025 Fuel Recovery Factors – By Rate Group (Adjusted for Line Losses) Group Rate Schedule Avg. Factor (cents/kW h) Fuel Recovery Loss Multiplie r Fuel Recovery Factor (cents/kWh ) A RS-1, first 1,000 kWh 2.748 1.00297 2.446 RS-1, all additional kWh 2.748 1.00297 3.446 GS-1, SL-2, SL-2M, GSCU-1 2.748 1.00297 2.756 A-1 SL-1, SL-1M, OL-1, PL-1 (1), LT-1, OS I/II 2.676 1.00297 2.684 B GSD-1, GSD-1EV 2.748 1.00290 2.756 C GSLD-1, GSLD-1EV, CS-1 2.748 1.00181 2.753 D GSLD-2, CS-2, OS-2, MET 2.748 0.99415 2.732 E GSLD-3, CS-3 2.748 0.97310 2.674 A GST-1 On-Peak 3.108 1.00297 3.117 GST-1 Off Peak 2.593 1.00297 2.601 RTR-1 On-Peak 0.361 RTR-1 Off-Peak (0.155) B GSDT-1, CILC-1(G), SST-1D(1), HLFT-1 On-Peak 3.108 1.00289 3.117 GSDT-1, CILC-1(G), SST-1D(1), HLFT-1 Off-Peak 2.593 1.00289 2.601 C GSLDT-1, CST-1, SST-1D(2), HLFT-2 On-Peak 3.108 1.00181 3.114 GSLDT-1, CST-1, SST-1D(2), HLFT-2 Off-Peak 2.593 1.00181 2.598
ORDER NO. PSC-2024-0481-FOF-EI Attachment A DOCKET NO. 20240001-EI Page 12 of 23 PAGE 17 Source: Schedule E1-E, (Exhibit AM-5, 2024 FCR Projections, Pages 7 of 174). Table 20-3 FPL Fuel Cost Recovery Factors for the period January, 2025 Seasonal Demand Time of Use Rider (SDTR) Fuel Recovery Factors Group Rate Schedule Average Factor (cents/kWh) Fuel Recovery Loss Multiplier Fuel Recovery Factor (cents/kWh) B GSD(T)-1 On-Peak 3.135 1.00290 3.144 GSD(T)-1 Off-Peak 2.698 1.00290 2.706 C GSLD(T)-1 On-Peak 3.135 1.00181 3.141 GSLD(T)-1 Off-Peak 2.698 1.00181 2.703 D GSLD(T)-2 On-Peak 3.135 0.99439 3.117 GSLD(T)-2 Off-Peak 2.698 0.99439 2.683 Source: Schedule E1-E, (Exhibit AM-5, 2024 FCR Projections, Pages 8 of 174). D GSLDT-2, CST-2, SST-1D(3), HLFT-3 On-Peak 3.108 0.99439 3.091 GSLDT-2, CST-2, SST-1D(3), HLFT-3 Off-Peak 2.593 0.99439 2.579 E GSLDT-3, CST-3, CILC-1(T), SST-1(T), ISST-1(T) On-Peak 3.108 0.97310 3.024 GSLDT-3, CST-3, CILC-1(T), SST-1(T) ISST-1(T) Off-Peak 2.593 0.97310 2.524 F CILC-1(D), ISST-1(D) On-Peak 3.108 0.99459 3.091 CILC-1(D), ISST-1(D) Off-Peak 2.593 0.99459 2.579
ORDER NO. PSC-2024-0481-FOF-EI Attachment A DOCKET NO. 20240001-EI Page 13 of 23 PAGE 18 Table 20-4 FPL Fuel Cost Recovery Factors for the period February-December, 2025 Fuel Recovery Factors – By Rate Group (Adjusted for Line Losses) Group Rate Schedule Avg. Factor (cents/ kWh) Fuel Recovery Loss Multiplier Fuel Recovery Factor (cents/kWh) A RS-1, first 1,000 kWh 2.710 1.00297 2.408 RS-1, all additional kWh 2.710 1.00297 3.408 GS-1, SL-2, SL-2M, GSCU-1 2.710 1.00297 2.718 A-1 SL-1, SL-1M, OL-1, PL-1 (1), LT-1, OS I/II 2.639 1.00297 2.647 B GSD-1, GSD-1EV 2.710 1.00290 2.718 C GSLD-1, GSLD-1EV, CS-1 2.710 1.00181 2.715 D GSLD-2, CS-2, OS-2, MET 2.710 0.99415 2.694 E GSLD-3, CS-3 2.710 0.97310 2.637 A GST-1 On-Peak 3.065 1.00297 3.074 GST-1 Off Peak 2.558 1.00297 2.565 RTR-1 On-Peak 0.356 RTR-1 Off-Peak (0.153) B GSDT-1, CILC-1(G), SST-1D(1), HLFT-1 On- Peak 3.065 1.00289 3.074 GSDT-1, CILC-1(G), SST-1D(1), HLFT-1 Off- Peak 2.558 1.00289 2.565 C GSLDT-1, CST-1, SST-1D(2), HLFT-2 On-Peak 3.065 1.00181 3.071 GSLDT-1, CST-1, SST-1D(2), HLFT-2 Off-Peak 2.558 1.00181 2.562 D GSLDT-2, CST-2, SST-1D(3), HLFT-3 On-Peak 3.065 0.99439 3.048 GSLDT-2, CST-2, SST-1D(3), HLFT-3 Off-Peak 2.558 0.99439 2.543 E GSLDT-3, CST-3, CILC-1(T), SST-1(T), ISST- 1(T) On-Peak 3.065 0.97310 2.983 GSLDT-3, CST-3, CILC-1(T), SST-1(T) ISST- 1(T) Off-Peak 2.558 0.97310 2.489 F CILC-1(D), ISST-1(D) On-Peak 3.065 0.99459 3.049 CILC-1(D), ISST-1(D) Off-Peak 2.558 0.99459 2.544 So urce: Schedule E1-E, (Exhibit AM-6, 2024 FCR Projections, Page 4 of 8).
ORDER NO. PSC-2024-0481-FOF-EI Attachment A DOCKET NO. 20240001-EI Page 14 of 23 PAGE 19 Table 20-5 FPL Fuel Cost Recovery Factors for the period February-December, 2025 Seasonal Demand Time of Use Rider (SDTR) Fuel Recovery Factors Group Rate Schedule Average Factor (cents/kWh) Fuel Recovery Loss Multiplier Fuel Recovery Factor (cents/kWh) B GSD(T)-1 On-Peak 3.092 1.00290 3.101 GSD(T)-1 Off-Peak 2.661 1.00290 2.669 C GSLD(T)-1 On-Peak 3.092 1.00181 3.097 GSLD(T)-1 Off-Peak 2.661 1.00181 2.666 D GSLD(T)-2 On-Peak 3.092 0.99439 3.074 GSLD(T)-2 Off-Peak 2.661 0.99439 2.646 Source: Schedule E1-E, (Exhibit AM-6, 2024 FCR Projections, Page 5 of 8). FPUC: Table 20-6 FPUC Fuel Cost Recovery Factors for the period January-December, 2025 Fuel Recovery Factors – By Rate Schedule Fuel Recovery Factors – By Rate Schedule Rate Schedule Levelized Adjustment (cents/kWh) RS 7.849 GS 7.890 GSD 7.392 GSLD 7.176 LS 5.872 Source: Schedule E1, Page 3 of 3 (Exhibit BB-2, Page 3 of 8). Table 20-7 FPUC Fuel Cost Recovery Factors for the period January-December, 2025 Step Rate Allocation For Residential Customers (RS Rate Schedule) Rate Schedule and Allocation Levelized Adjustment (cents/kWh) RS Rate Schedule – Sales Allocation 7.849 RS Rate Schedule with less than or equal to 1,000 kWh/month 7.505 RS Rate Schedule with greater than 1,000 kWh/month 8.755 Source: Schedule E1, Page 3 of 3 (Exhibit BB-2, Page 3 of 8). TECO: *The rates shown in Tables 20-8 and 20-9 were calculated using the modified time-of-day periods proposed by TECO in Docket No. 20240026-EI, Petition for rate increase by Tampa Electric Company. If the Commission were to deny the proposed time-of-day periods in Docket No. 20240026-EI, then TECO should be required to implement the rates shown in Tables 20-10 and 20-11.
ORDER NO. PSC-2024-0481-FOF-EI Attachment A DOCKET NO. 20240001-EI Page 15 of 23 PAGE 20 Table 20-8 *TECO Fuel Cost Recovery Factors for the period January-May, 2025 Under Methodology Proposed in Docket No. 20240026-EI Metering Voltage Level Fuel Cost Recovery Factors (cents per kWh) Levelized Fuel Recovery Factor First Tier (First 1,000 kWh) Second Tier (Over 1,000 kWh) STANDARD Distribution Secondary (RS only) -- 2.852 3.852 Distribution Secondary 3.083 Distribution Primary 3.052 Transmission 3.021 Lighting Service 3.068 TIME OF USE Distribution Secondary- On-Peak 3.238 Distribution Secondary- Off-Peak 3.034 Distribution Secondary- Super Off-Peak 3.001 Distribution Primary- On-Peak 3.206 Distribution Primary- Off-Peak 3.004 Distribution Primary- Super Off- Peak 2.971 Transmission- On-Peak 3.173 Transmission- Off-Peak 2.973 Transmission- Super Off-Peak 2.941 Source: Exhibit ZDJ-3, Document No. 4, Page 2 of 5.
ORDER NO. PSC-2024-0481-FOF-EI Attachment A DOCKET NO. 20240001-EI Page 16 of 23 PAGE 21 Table 20-9 *TECO Fuel Cost Recovery Factors for the period June-December, 2025 Under Methodology Proposed in Docket No. 20240026-EI Metering Voltage Level Fuel Cost Recovery Factors (cents per kWh) Levelized Fuel Recovery Factor First Tier (First 1,000 kWh) Second Tier (Over 1,000 kWh) STANDARD Distribution Secondary (RS only) -- 3.044 4.044 Distribution Secondary 3.391 Distribution Primary 3.357 Transmission 3.323 Lighting Service 3.374 TIME OF USE Distribution Secondary- On-Peak 3.561 Distribution Secondary- Off-Peak 3.336 Distribution Secondary- Super Off-Peak 3.301 Distribution Primary- On-Peak 3.525 Distribution Primary- Off-Peak 3.303 Distribution Primary- Super Off- Peak 3.268 Transmission- On-Peak 3.490 Transmission- Off-Peak 3.269 Transmission- Super Off-Peak 3.235 Source: Exhibit ZDJ-3, Document No. 4, Page 3 of 5.
ORDER NO. PSC-2024-0481-FOF-EI Attachment A DOCKET NO. 20240001-EI Page 17 of 23 PAGE 22 Table 20-10 TECO Fuel Cost Recovery Factors for the period January-May, 2025 Metering Voltage Level Fuel Cost Recovery Factors (cents per kWh) Levelized Fuel Recovery Factor First Tier (First 1,000 kWh) Second Tier (Over 1,000 kWh) STANDARD Distribution Secondary (RS only) -- 2.852 3.852 Distribution Secondary 3.083 Distribution Primary 3.052 Transmission 3.021 Lighting Service 3.059 TIME OF USE Distribution Secondary- On-Peak 3.227 Distribution Secondary- Off-Peak 3.024 Distribution Primary- On-Peak 3.195 Distribution Primary- Off-Peak 2.994 Transmission- On-Peak 3.162 Transmission- Off-Peak 2.964 Source: Exhibit ZDJ-3, Document No. 2, Page 9 of 46. Table 20-11 TECO Fuel Cost Recovery Factors for the period June-December, 2025 Metering Voltage Level Fuel Cost Recovery Factors (cents per kWh) Levelized Fuel Recovery Factor First Tier (First 1,000 kWh) Second Tier (Over 1,000 kWh) STANDARD Distribution Secondary (RS only) -- 3.044 4.044 Distribution Secondary 3.391 Distribution Primary 3.357 Transmission 3.323 Lighting Service 3.363 TIME OF USE Distribution Secondary- On-Peak 3.549 Distribution Secondary- Off-Peak 3.325 Distribution Primary- On-Peak 3.514 Distribution Primary- Off-Peak 3.292 Transmission- On-Peak 3.478 Transmission- Off-Peak 3.259 Source: Exhibit ZDJ-3, Document No. 2, Page 10 of 46.
ORDER NO. PSC-2024-0481-FOF-EI Attachment A DOCKET NO. 20240001-EI Page 18 of 23 PAGE 23 II. CAPACITY ISSUES COMPANY-SPECIFIC CAPACITY COST RECOVERY FACTOR ISSUES Duke Energy Florida, LLC ISSUE 21A: What is the appropriate amount of costs for the Independent Spent Fuel Storage Installation (ISFSI) that DEF should be allowed to recover through the capacity cost recovery clause pursuant to DEF’s 2017 Settlement for 2025? Stipulation: $11,525,180. Florida Power & Light Company No company-specific capacity cost recovery factor issues for Florida Power & Light Company have been identified at this time. If such issues are identified, they will be numbered 22A, 22B, 22C, and so forth, as appropriate. Tampa Electric Company No company-specific capacity cost recovery factor issues for Tampa Electric Company have been identified at this time. If such issues are identified, they will be numbered 23A, 23B, 23C, and so forth, as appropriate. GENERIC CAPACITY COST RECOVERY FACTOR ISSUES ISSUE 24: What are the appropriate final capacity cost recovery true-up amounts for the period January 2023 through December 2023? Stipulations: DEF: Under-recovery of $8,431,790. FPL: Over-recovery of $7,342,001. TECO: Under-recovery of $1,888,665.
ORDER NO. PSC-2024-0481-FOF-EI DOCKET NO. 20240001-EI Attachment A PAGE 24 Page 19 of 23 ISSUE 25: What are the appropriate capacity cost recovery actual/estimated true-up amounts for the period January 2024 through December 2024? Stipulations: DEF: Over-recovery of $1,632,844. FPL: Under-recovery of $6,402,666. TECO: Under -recovery of $9,348,304. ISSUE 26: What are the appropriate total capacity cost recovery true-up amounts to be collected/refunded during the period January 2025 through December 2025? Stipulations: DEF: Under-recovery of $6,798,946. FPL: Over-recovery of $939,336. TECO: Under-recovery of $11,236,969. ISSUE 27: What are the appropriate projected total capacity cost recovery amounts for the period January 2025 through December 2025? Stipulations: DEF: $127,743,993. FPL: $121,736,404. TECO: $6,019,725. ISSUE 28: What are the appropriate projected net purchased power capacity cost recovery amounts to be included in the recovery factor for the period January 2025 through December 2025? Stipulations: DEF: $146,068,118.
ORDER NO. PSC-2024-0481-FOF-EI DOCKET NO. 20240001-EI Attachment A PAGE 25 Page 20 of 23 FPL: $116,885,784. TECO: $17,271,328. ISSUE 29: What are the appropriate jurisdictional separation factors for capacity revenues and costs to be included in the recovery factor for the period January 2025 through December 2025? Stipulations: DEF: Base: 100.000 percent, Intermediate: 95.212 percent, and Peaking: 97.632 percent. FPL: Demand: Transmission 88.7807 percent, Non-Stratified/Base/Solar 96.0110 percent, Intermediate 95.4157 percent, Peaking 94.9428 percent, Distribution 100.0000 percent. Energy: Non-Stratified/Base/Solar 95.7062 percent, Intermediate 93.9405 percent, Peaking 95.6020 percent. General Plant: Labor 96.9425 percent. TECO: The appropriate jurisdictional separation factor is 1.00
ORDER NO. PSC-2024-0481-FOF-EI DOCKET NO. 20240001-EI Attachment A PAGE 26 Page 21 of 23 ISSUE 30: What are the appropriate capacity cost recovery factors for the period January 2025 through December 2025? Stipulations: DEF: Table 30-1 DEF Capacity Cost Recovery Factors for the period January–December, 2025 Rate Class Capacity and ISFSI Cost Recovery Factors ¢/kWh $/kW-month Residential (RS-1, RST-1, RSL-1, RSL-2) At Secondary Voltage 0.410 General Service Non-Demand (GS-1, GST-1) At Secondary Voltage 0.357 At Primary Voltage 0.353 At Transmission Voltage 0.350 General Service (GS-2) 0.252 Lighting (LS-1) 0.107 General Service Demand (GSD-1, GSDT-1, SS-1) At Secondary Voltage 1.07 At Primary Voltage 1.06 At Transmission Voltage 1.05 Curtailable (CS-2, CST-2, CS-3, CST-3, SS-3) At Secondary Voltage 0.72 At Primary Voltage 0.71 At Transmission Voltage 0.71 Interruptible (IS-2, IST-2, SS-2) At Secondary Voltage 0.88 At Primary Voltage 0.87 At Transmission Voltage 0.86 Standby Monthly (SS-1, 2, 3) At Secondary Voltage 0.103 At Primary Voltage 0.102 At Transmission Voltage 0.101 Standby Daily (SS-1, 2, 3) At Secondary Voltage 0.049 At Primary Voltage 0.049 At Transmission Voltage 0.048 Source: Schedule E12-E (Exhibit GPD-3, Part 3, Page 1 of 1
ORDER NO. PSC-2024-0481-FOF-EI Attachment A DOCKET NO. 20240001-EI Page 22 of 23 PAGE 27 FPL: Table 30-2 FPL Capacity Cost Recovery Factors (with IRA Refund) for the period January–December, 2025 Rate Schedule 2025 Capacity Cost Recovery Factors $/kW $/kWh Reservation Demand Charge (RDC) $/kW Sum of Daily Demand Charge (SDD) $/kW RS1/RTR1 - 0.00103 - - GS1/GST1 - 0.00092 - - GSD1/GSDT1/HLFT1/GSD1-EV 0.32 - - - OS2 - 0.00041 - - GSLD1/GSLDT1/CS1/CST1/HLFT2/GSLD1- EV 0.35 - - - GSLD2/GSLDT2/CS2/CST2/HLFT3 0.35 - - - GSLD3/GSLDT3/CS3/CST3 0.35 - - - SST1T - - 0.04 0.02 SST1D1/SST1D2/SST1D3 - - 0.05 0.02 CILC D/CILC G 0.36 - - - CILC T 0.36 - - - MET 0.30 - - - OL1/SL1/SL1M/PL1/OSI/II/LT1 - 0.00007 - - SL2/SL2M/GSCU1 - 0.00065 - -
ORDER NO. PSC-2024-0481-FOF-EI Attachment A DOCKET NO. 20240001-EI Page 23 of 23 PAGE 28 TECO: Table 30-3 TECO Capacity Cost Recovery Factors for the period January–December, 2025 Rate Class and Metering Voltage 2025 Capacity Cost Recovery Factors ¢/kWh $/kW RS 0.096 - GS and CS 0.088 GSD, RSD Secondary - 0.31 Primary 0.31 Transmission 0.30 GSD Optional Secondary 0.075 - Primary 0.074 Transmission 0.074 GSLDPR/GSLDTPR - 0.26 GSLDSU/GSLDTSU 0.30 LS-1, LS-2 0.018 - Source: Exhibit ZDJ-3, Document No. 1, Page 3 of 4. III. EFFECTIVE DATE ISSUE 31: What should be the effective date of the fuel adjustment factors and capacity cost recovery factors for billing purposes? Stipulation: Revised factors should become effective with the first billing cycle of January 2025. ISSUE 32: Should the Commission approve revised tariffs reflecting the fuel adjustment factors and capacity cost recovery factors determined to be appropriate in this proceeding? Stipulation: Yes. The Commission should approve revised tariffs reflecting the fuel adjustment factors and capacity cost recovery factors determined to be reasonable in this proceeding. The Commission should direct staff to verify that the revised tariffs are consistent with the Commission’s decisions. ISSUE 33: Should this docket be closed? Stipulation: No, this is a continuing docket and should remain open.
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