Florida Public Service Commission native order document 07339-2024

OCR transcription for search; preserved printed pages are authoritative

FILED 7/8/2024
DOCUMENT NO. 07339-2024
FPSC - COMMISSION CLERK

BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION

In re: Petition for approval of amended DOCKET NO. 20240048-EQ
standard offer contract (Schedule COG-2), by || ORDER NO. PSC-2024-0229-PAA-EQ
Duke Energy Florida, LLC. ISSUED: July 8, 2024

The following Commissioners participated in the disposition of this matter:

MIKE LA ROSA, Chairman
ART GRAHAM
GARY F. CLARK
ANDREW GILES FAY
GABRIELLA PASSIDOMO

NOTICE OF PROPOSED AGENCY ACTION
ORDER APPROVING DUKE ENERGY FLORIDA, LLC’S REVISED RENEWABLE
ENERGY TARIFF AND STANDARD OFFER CONTRACT

BY THE COMMISSION:

NOTICE is hereby given by the Florida Public Service Commission (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

Section 366.91(3), Florida Statutes (F.S.), requires each investor-owned utility (IOU) to
continuously offer to purchase capacity and energy from renewable generating facilities (RF) and
small qualifying facilities (QF). Commission Rules 25-17.200 through 25-17.310, F.A.C.,
implement the statute and require each IOU to file with us, by April 1 of each year, a revised
standard offer contract based on the next avoidable fossil-fueled generating unit of each
technology type identified in the utility’s current Ten-Year Site Plan (TYSP). On March 28,
2024, Duke Energy Florida, LLC (DEF) filed a petition for approval of its amended standard
offer contract and rate schedule COG-2. On May 6, 2024, DEF filed revisions to its proposed
tariff sheets to correct a forecast error that impacted the avoided unit’s operating and financial
assumptions. We have jurisdiction over this standard offer contract, pursuant to Sections 366.04
through 366.055, and 366.91, F.S.

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ
PAGE 2
Analysis
Section 366.91(3), F.S., and Rule 25-17.250, F.A.C., require that an IOU continuously
make available a standard offer contract for the purchase of firm capacity and energy from RFs
and QFs with design capacities of 100 kilowatts (kW) or less. Pursuant to Rules 25-17.250(1)
and (3), F.A.C., the standard offer contract must provide a term of at least 10 years, and the
payment terms must be based on the utility’s next avoidable fossil-fueled generating unit
identified in its most recent TYSP or, if no avoided unit is identified, its next avoidable planned
purchase. In its 2024 Ten-Year Site Plan, DEF has identified a 215 megawatt (MW) natural gas-
fueled combustion turbine as the next avoidable planned generating unit. This unit has a
projected in-service date of June 1, 2032, with planned construction beginning in July 2029.
Under DEF’s standard offer contract, the RF/QF operator commits to certain minimum
performance requirements, based on the identified avoided unit, such as being operational and
delivering an agreed upon amount of capacity by the in-service date of the avoided unit. In this
way, the RF/QF thereby becomes eligible for capacity payments in addition to payments
received for energy. The standard offer contract may also serve as a starting point for negotiation
of contract terms by providing payment information to an RF/QF operator in a situation where
one or both parties desire particular contract terms other than those established in the standard
offer.
In order to promote renewable generation, the Commission requires each IOU to offer
multiple options for capacity payments, including the options to receive early or levelized
payments. If the RF/QF operator elects to receive capacity payments under the normal or
levelized contract options, it will receive as-available energy payments only until the in-service
date of the avoided unit (in this case June 1, 2032). Thereafter, they begin receiving capacity
payments in addition to firm energy payments. If either the early or early levelized option is
selected, then the operator will begin receiving capacity payments earlier than the in-service date
of the avoided unit. However, payments made under the early capacity payment options tend to
be lower in the later years of the contract term, because the net present value (NPV) of the total
payments must remain equal for all contract payment options.
Table 1 contains DEF’s estimates of the annual payments for the normal and levelized
capacity payment options available under the revised standard offer contract to an operator with
a 50 MW facility operating at a capacity factor of 95 percent, which is the minimum capacity
factor required under the contract to qualify for full capacity payments. Normal and levelized
capacity payments begin with the projected in-service date of the avoided unit (June 1, 2032),
and continue for 10 years, while early and early levelized capacity payments begin two (2) years
prior to the in-service date, or 2030 in this case.
(remainder of this page intentionally left blank)

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ
PAGE 3
Table 0- Estimated Annual Payments to a 50 MW Renewable Facility
(95% Capacity Factor)
Year
Energy
Payment
Capacity Payment
Normal 	Levelized 	Early Early
Levelized
$(000) 	$(000) 	$(000) 	$(000) 	$(000)
2025 	14,256 	- 	- 	- 	-
2026 	13,941 	- 	- 	- 	-
2027 	13,342 	- 	- 	- 	-
2028 	12,710 	- 	- 	- 	-
2029 	12,567 	- 	- 	- 	-
2030 	12,243 	- 	- 	5,354 	5,359
2031 	12,297 	- 	- 	5,358 	5,362
2032 	12,057 	4,120 	4,123 	5,362 	5,365
2033 	12,351 	7,068 	7,073 	5,366 	5,369
2034 	12,159 	7,074 	7,077 	5,371 	5,372
2035 	14,750 	7,080 	7,082 	5,375 	5,376
2036 	15,729 	7,085 	7,087 	5,380 	5,379
2037 	16,487 	7,091 	7,092 	5,384 	5,383
2038 	16,827 	7,097 	7,096 	5,389 	5,387
2039 	17,572 	7,103 	7,102 	5,394 	5,391
2040 	18,299 	7,110 	7,107 	5,399 	5,395
2041 	19,724 	7,116 	7,112 	5,404 	5,399
2042 	20,039 	7,123 	7,117 	5,409 	5,403
2043 	21,483 	7,129 	7,123 	5,414 	5,408
2044 	21,970 	7,136 	7,129 	5,419 	5,412
Total 	310,801 	89,333 	89,320 	80,776 	80,759
Total (NPV) 	154,468 	34,569 	34,569 	34,569 	34,569
Source: DEF’s Response to Staff’s First Data Request1
DEF’s standard offer contract, as revised on May 6, 2024 in type-and-strike format, is
included as Attachment A to this Order. The changes made to DEF’s tariff sheets are consistent
with the updated avoided unit. Revisions include updates to calendar dates and payment
information, which reflect the current economic and financial assumptions for the avoided unit.
Decision
We find that the provisions of DEF’s renewable energy tariff and amended standard offer
contract conform to the requirements of Rules 25-17.200 through 25-17.310, F.A.C. The
amended standard offer contract offers multiple payment options so that a developer of
renewable generation may select the payment stream best suited to its financial needs. Therefore,
we will approve the renewable energy tariff and amended standard offer contract.
1In re: Petition for approval of amended standard offer contract (Schedule COG-2), by Duke Energy Florida, LLC,
Docket No. 20240048-EQ, Document No. 02782-2024 (filed May 6, 2024).

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ
PAGE4
Based on the foregoing, it is
ORDERED by the Florida Public Service Commission that Duke Energy Florida, LLC ' s
Petition for Approval of a Renewable Energy Tariff and Standard Offer Contract is GRANTED.
The revised renewable energy tariff and amended standard offer contract are approved as set
forth herein. 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 , F.A.C., is received by the Commission Clerk,
2540 Shumard Oak Boulevard, TaJlahassee. Florida 32399-0850, by the close of business on the
date set forth in the ''Notice of Further Proceedings or Judicial Review" attached hereto. rt is
further
SF
ORDERED that in the event this Order becomes final , this docket shall be closed.
By ORDER of the Florida Public Service Commission this 8th day of 1.Yly, 2024.
MAN
Commi sion Cl
Florida Public Service Commission
2540 Shumard Oak Boulevard
Tallahassee, Florida 32399
(850) 413-6770
www. floridapsc.corn
Copies furnished: 	A copy of this document is
provided to the parties of record at the time of
issuance and, if applicable, interested persons.

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ
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 July 29, 2024.
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-2024-0229-PAA-EQ

DOCKET NO. 20240048-EQ Attachment A
PAGE 6 Page | of 69
C DUKE SECTION No, IX
Se” ENERGY. GANCELS FIRST REVISED SHEET NO, 9400

STANDARD OFFER CONTRACT FOR THE PURCHASE OF FIRM CAPACITY

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ

PAGE 7

Attachment A

Page 2 of 69

&

DUKE
ENERGY.

SECTION NO. IX
SECOND REVISED SHEET NO. 9.401
CANCELS FIRST SHEET NO. 9.404

ORDER NO. PSC-2024-0229-PAA-EQ

DOCKET NO. 20240048-EQ Attachment A
PAGE 8 Page 3 of 69
C DUKE SECTION NO. IX
THIRD REVISED SHEET NO.9,402
ca ENERGY. CANCELS SECOND REVISED SHEET NO. 9.402
TABLE OF CONTENTS
i
SHEET NO:
Introduction & Parties' Recitals 9.404
1. Definitions 9,405

ISSUED BY: Javier Portuondo, Managing Director, Rates & Regulatory Strategy - FL
EFFECTIVE: July 9, 2019

ORDER NO. PSC-2024-0229-PAA-EQ

DOCKET NO. 20240048-EQ

PAGE 9

Attachment A
Page 4 of 69

C DUKE SECTION NO. IX
“@” ENERGY, CANGELS FOURTH REVISED SHEET NO. 9.403
TABLE OF CONTENTS
ii
17 Insurance 9.430
18. Foree Majeure 9.431
19. Representations, Warranties, and Covenants of RF/QF 9.433
20. General Provisions 9.435
Execution 9.441

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ Attachment A
PAGE 10 Page 5 of 69

C DUKE SECTION NO. IX
& SIXTH REVISED SHEET NO. 9.404
ENERGY. CANCELS FIFTH REVISED SHEET NO. 9.404

STANDARD OFFER CONTRACT FOR THE PURCHASE OF FIRM CAPACITY
AND ENERGY FROM A RENEWABLE ENERGY PRODUCER
OR QUALIFYING FACILITY LESS THAN 100 KW

THIS STANDARD OFFER CONTRACT FOR THE PURCHASE OF FIRM
CAPACITY AND ENERGY (hereinafter referred to as the “Contract”) is made and entered
this ss day of 5 (hereinafter referred to as the “Execution Date”), by and
between (hereinafter the Renewable Energy
Provider/Qualifying Facility ("RF/QF"), and Duke Energy Florida, LLC d/b/a Duke Energy
(hereinafter "DEF"), a private utility corporation organized and existing under the laws of the State
of Florida. The RF/QF and DEF shall be individually identified herein as the “Party” and
collectively as the "Parties". This Contract contains six Appendices which are incorporated into
and made part of this Contract: Appendix A: Monthly Capacity Payment Calculation; Appendix
B: Termination Fee; Appendix C: Detailed Project Information; Appendix D: Rate Schedule
COG-2; Appendix E: Agreed Upon Payment Schedules and Other Mutual Agreements; and
Appendix F: Florida Public Service Commission ("FPSC") Rules 25-17.080 through 25-17.310,
F.ALC.

WITNESSETH:

WHEREAS, the RF/QF desires to sell, and DEF desires to purchase electricity to be

WHEKBAS, ine Kr/YUr guarantees Nat ine Facility 18s Capable OL Gelivering Lirm Capacily
and energy to DEF for the term of this Contract in a manner consistent with the provision of this
Contract;

NOW, THEREFORE, for mutual consideration the Parties agree as follows:

ISSUED BY: Geoff Foster, Vice President, Rates & Regulatory Strategy - FL
EFFECTIVE: July 19, 2021

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ Attachment A
PAGE 11 Page 6 of 69

C DUKE SECTION NO. IX
ENERGY. THIRD REVISED SHEET NO. 9.405
® CANCELS SECOND REVISED SHEET NO. 9.405
1. Definitions
“AFR” means the Facility’s annual fuel requirement.

“AFTR” means the Facility’s annual fuel transportation requirement

“Annual Capacity Billing Factor” or “ACBE” means 12 month rolling average of the Monthly
Availability Factor as further defined and explained in Appendix A.

LO LIT

“Auditor’s Standard Report” means a written opinion of an auditor regarding an entity’s
financial statements. The report is written in a standard format, as mandated by generally
accepted auditing standards (GAAS).

“Authorization to Construct” means authorization issued by any appropriate Government
Agency to construct or reconstruct the Facility granted to RF/QF in accordance with the laws of
the State of Florida and any relevant federal law.

“Avoided Unit” means the electrical generating unit described in Section 4 upon which this
Contract is based.

“Avoided Unit Energy Cost” has the meaning assigned to it in Appendix D.

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ Attachment A
PAGE 12 Page 7 of 69

C DUKE SECTION No. IX
EIGHTH REVISED SHEET NO. 9.406

ENERGY. CANCELS SEVENTH REVISED SHEET NO. 9.406

“Avoided Unit Variable O&M” means the Avoided Unit variable operation and maintenance
expenses as defined in Section 4. The annual escalation will begin in the payment for January
deliveries.

“Base Capacity Payment” or “BCP” means capacity payment rates defined in Appendix D and
further defined by the selection of Option A,B,C or D in Section 9.2 or in Appendix E if
applicable.

“Base Year” means the year that this Contract was approved by the FPSC.

“Business Day” means any day except a day upon which banks licensed to operate in the State of
Florida are authorized, directed or permitted to close, Saturday, Sunday or a weekday that is
observed as a public holiday in the State of Florida.

“CAMD” means the Clean Air Markets Division of the Environmental Protection Agency or
successor administrator (collectively with any local, state, regional, or federal entity given
jurisdiction over a program involving transferability of Environmental Attributes).

“Capacity” means the minimum average hourly net capacity (generator output minus auxiliary
load) measured over the Committed Capacity Test Period.

“Capacity Delivery Date” means the first calendar day immediately following the date of the
Facility's successful completion of the first Committed Capacity Test subject to the requirements

AUUULUGLILY WILLE WIN PLUCUUULES SUL LULL LL DEULLULL O.

“Committed Capacity Test Period” means a test period of twenty-four (24) consecutive hours.

“Completion/Performance Security” means the security described in Section 11.

ISSUED BY: Geoff Foster, Vice President, Rates & Regulatory Strategy - FL
EFFECTIVE: July 1, 2022

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ Attachment A
PAGE 13 Page 8 of 69

C DUKE SECTION No. IX
SIXTH REVISED SHEET NO. 9.407
ce ENERGY. CANCELS FIFTH REVISED SHEET NO. 9.407

“Conditions Precedent” shall have the meaning assigned to it in Section 3.

“Contract” means this standard offer contract for the purchase of Firm Capacity and Energy from
a Renewable Energy Producer or Qualifying Facility with a nameplate capacity of less than 100
kW.

“Credit Support Provider” means any Person that has provided an RF/QF Guarantee in

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ Attachment A
PAGE 14 Page 9 of 69

C DUKE SECTION No. IX
& SEVENTH REVISED SHEET NO. 9.408
ENERGY. CANCELS SIXTH REVISED SHEET NO. 9.408

“Eligible Collateral” means (i) a Letter of Credit from a Qualified Institution or (11) cash deposit
provided to DEF by RF/QF or a combination of (1), and/or (i1) as outlined in Section 11.

“Energy” means megawatt-hours generated by the Facility of the character commonly known as
three-phase, sixty hertz electric energy that is delivered at a nominal voltage at the Electrical
Interconnection Point.

“Environmental Attributes” or “EA” means all attributes of an environmental or other nature that
are created or otherwise arise from the Facility’s generation of electricity from a renewable
energy source in contrast with the generation of electricity using nuclear or fossil fuels or other
traditional resources. Forms of such attributes include, without limitation, any and all
environmental air quality credits, green credits, renewable energy credits (“RECs”), carbon
credits, emissions reduction credits, certificates, tags, offsets, allowances, or similar products or
rights, howsoever entitled, (i) resulting from the avoidance of the emission of any gas, chemical,
or other substance, including but not limited to, mercury, nitrogen oxide, sulfur dioxide, carbon
dioxide, carbon monoxide, particulate matter or similar pollutants or contaminants of air, water
or soil gas, chemical, or other substance, and (11) attributable to the generation, purchase, sale or
use of Energy from or by the Facility, or otherwise attributable to the Facility during the Term.
Environmental Attributes include, without limitation, those currently existing or arising during
the Term under local, state, regional, federal, or international legislation or regulation relevant to
the avoidance of any emission described in this Contract under any governmental, regulatory or
voluntary program, including, but not limited to, the United Nations Framework Convention on
Climate Change and related Kyoto Protocol or other programs, laws or regulations involving or
administered by the Clean Air Markets Division of the Environmental Protection Agency
(“CAMD”) or successor administrator (collectively with any local, state, regional, or federal
entity given jurisdiction over a program involving transferability of Environmental Attributes).

“Event of Default” has the meaning assigned to it in Section 14.
“Execution Date” has the meaning assigned to it in the opening paragraph of this Contract.
“Exemplary Early Capacity Payment Date” means the exemplary date used to calculate Capacity

Payments for Option B and D. This date is specified in Section 4. The actual Capacity Payments
for Option B and D will be calculated based upon the Required Capacity Delivery Date.

“Expected Nameplate Capacity Rating” means the total generating capacity of the Facility that
is the sum of (a) the Committed Capacity, and (b) the capacity required for any station service
use of generating unit equipment or auxiliaries, including, without limitation, cooling towers,
heat exchanges, duct burners and other equipment that could be used for energy production or
as required by law, and shall be in service during the Committed Capacity Test Period and (c)
any other capacity reserved for on-site use or energy production.

“Expiration Date” means the final date upon which this Contract can be executed. This date is
specified in Section 4.

ISSUED BY: Geoff Foster, Vice President, Rates & Regulatory Strategy - FL
EFFECTIVE: July 19, 2021

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ Attachment A

PAGE 15

Page 10 of 69

C DUKE SECTION No. IX
& FIFTH REVISED SHEET NO. 9.409
ENERGY. CANCELS FOURTH REVISED SHEET NO. 9.409

“Facility” means all equipment, as described in this Contract, used to produce electrie energy
and, all equipment that is owned or controlled by the RF/QF required for parallel operation with
the Transmission System. In the case of a cogenerator the Facility includes all equipment that is
owned or controlled by the RF/QF to produce useful thermal energy through the sequential use
of energy.

“Financial Closing’ means the fulfillment of each of the following conditions:

(a) the execution and delivery of the Financing Documents; and

(b) all Conditions Precedent to the initial availability for disbursement of funds under
the Financing Documents (other than relating to the effectiveness of this Contract)
are satisfied or waived.

“Financing Documents” shall mean documentation with respect to any private equity investment
in RF/QF, any loan agreements (including agreements for any subordinated debt), notes, bonds,
indentures, guarantees, security agreements and hedging agreements relating to the financing or
refinancing of the design, development, construction, testing, commissioning, operation and
maintenance of the entire Facility or any guarantee by any Financing Party of the repayment of
all or any portion of such financing or refinancing.

“Financing Party” means the Persons (including any trustee or agent on behalf of such Persons)
providing financing or refinancing to or on behalf of RF/QF for the design, development,
construction, testing, commissioning, operation and maintenance of the Facility (whether limited
recourse, or with or without recourse).

“Firm Capacity and Energy” has the meaning assigned to it in Appendix D.

“Firm Capacity Rate” has the meaning assigned to it in Appendix D.

oe

Firm Energy Rate” has the meaning assigned to it in Appendix D.

oe

Force Majeure” has the meaning given to it in Section 18.

“FPSC” means the Florida Public Service Commission or its successor.

CON oe cee ed AN ee ee? cee ee Ad TT A Odd AL Ae ne nee hn ne none nade ee nd

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ Attachment A
PAGE 16 Page 11 of 69

C DUKE SECTION No. IX
& FIFTH REVISED SHEET NO. 9.410
ENERGY. CANCELS FOURTH REVISED SHEET NO 9.410

“TEEE” means the Institute of Electrical and Electronics Engineers, Inc.
“Indemnified Party” has the meaning assigned to it in Section 16.
“Indemnifying Party” has the meaning assigned to it in Section 16.

“Initial Reduction Value” has the meaning assigned to it in Appendix B.

“Insurance Services Office” has the meaning assigned to it in Section 17.

“KVA” means one or more kilovolts-amperes of electricity, as the context requires.
“kW” means one or more kilowatts of electricity, as the context requires.
“kWh” means one or more kilowatt-hours of electricity, as the context requires.

“Letter of Credit” means a stand-by letter of credit from a Qualified Institution that is acceptable
to DEF whose approval may not be unreasonably withheld. The Letter of Credit must provide
that DEF has the right to draw on the Letter of Credit in the event that less than twenty (20)
Business Days remain until its expiration and RF/QF has failed to renew the Letter of Credit or
provide replacement Eligible Collateral as required under this Agreement.

“Licensed Professional Engineer” means a person who is licensed to engage in the practice of

WLOnNUY Vapacily Fayment Or Mtr means ine payMent Lor Vapacily Calculated in
accordance with Appendix A.

“MW” means one or more megawatts of electricity, as the context requires.

“MWh” means one or more megawatt-hours of electricity, as the context requires.

ISSUED BY: Javier Portuondo, Managing Director, Rates & Regulatory Strategy - FL
EFFECTIVE: July 9, 2019

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ Attachment A
PAGE 17 Page 12 of 69

C DUKE SECTION No. IX
& ENERGY, THIRD REVISED SHEET NO. 9.411
® CANCELS SECOND REVISED SHEET NO. 9.411
“Option A” means normal Capacity Payments as described in Appendix D.
“Option B” means early Capacity Payments as described in Appendix D.
“Option C” means levelized Capacity Payments as described in Appendix D.

“Option D” means early levelized Capacity Payments as described in Appendix D.

ally TEQuired ZOMMY Perit, aa

(c) any integrated pollution control license.

“Project Contracts” means this Contract, and any other contract required to construct, operate
and maintain the Facility. The Project Contracts may include, but are not limited to, the turnkey
engineering, procurement and construction contract, the electrical interconnection and operating
agreement, the fuel supply agreement, the facility site lease, and the operation and maintenance
agreement.

“Prudent Regulated Utility Practices” means any of the practices, methods, standards and acts
(including, but not limited to, the practices, methods and acts engaged in or approved by a
significant portion of owners and operators of power plants regulated by the state authority or
state’s jurisdiction over an electric utility as defined in Florida Statute, 366.02(2) of technology,
complexity and size similar to the Facility in the United States) that, at a particular time, in the

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ Attachment A

PAGE 18 Page 13 of 69

C DUKE SECTION No. IX
ENERGY. FIFTH REVISED SHEET NO. 9.412

CANCELS FOURTH REVISED SHEET NO. 9.412

“Qualifying Facility” or “QF” means a cogenerator, small power producer, or non-utility
generator that has been certified or self-certified by the FERC as meeting certain ownership,
operating and efficiency criteria established by the Federal Energy Regulatory Commission
pursuant to the Public Utility Regulatory Policies Act of 1978 (“PURPA”), the criteria for which
are currently set forth in 18 C.F.R. § 292, ef seq. (2006), Section 210 of PURPA, 16 U.S.C.

§ 824a-3 (2005), 16 U.S.C. 796 ef seg. (2006), and Section 1253 of EPAct 2005, Pub. L. No.

109-58, § 1253, 119 Stat. 594 (2005) or, alternatively, analogous provisions under the laws of the
State of Florida.

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ Attachment A
PAGE 19 Page 14 of 69

C DUKE SECTION No. IX
& THIRD REVISED SHEET NO. 9.413
ENERGY. CANCELS SECOND REVISED SHEET NO. 9.413

“RE/OF Insurance” has the meaning assigned to it in Section 17.

“RE/OF Performance Security” has the meaning assigned in Section 11.

“Security Documentation” has the meaning assigned to it in Section 12.

“Term” has the meaning assigned to it in Section 3.

“Termination Date” means the date upon which this Contract terminates unless terminated earlier
in accordance with the provisions hereof. This date is specified in Section 4.

“Termination Fee” means the fee described in Appendix B as it applies to any Capacity
Payments made under Option B, C or D.

“Termination Security” has the meaning assigned to it in Section 12.

“Transmission Provider” means the operator(s) of the Transmission System(s) or any successor
thereof or any other entity or entities authorized to transmit Energy on behalf of RF/QF from the
Electrical Interconnection Point.

“Transmission System” means the system of electric lines comprised wholly or substantially of
high voltage lines, associated system protection, system stabilization, voltage transformation, and
capacitance, reactance and other electric plant used for conveying electricity from a generating
station to a substation, from one generating station to another, from one substation to another, or
to or from any Electrical Interconnection Point or to ultimate consumers and shall include any
interconnection owned by the Transmission Provider or DEF, but shall in no event include any
lines which the Transmission Provider has specified to be part of the Distribution System except
for any distribution facilities required to accept capacity and energy from the Facility.

ORDER NO. PSC-2024-0229-PAA-EQ

DOCKET NO. 20240048-EQ Attachment A
PAGE 20 Page 15 of 69
C DUKE SECTION No, IX
Se” ENERGY. CANCELS FIRST REVISED SHEET NO, 9.414

Z Facility; Renewable Facility or Qualifying Facility Status
The Facility's location and generation capabilities are as described in Table 1 below.

TABLE 1

TECHNOLOGY AND GENERATOR CAPABILITIES

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ Attachment A
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(: DUKE SECTION No. IX _
ced ENERGY. SEVENTEENTH EIGHTEENTH REVISED SHEET NO.

CANCELS Sl FEENTH SEVENTEENTH REVISED
SHEET NO. 9.415

3. Term of Contract

Except as otherwise provided herein, this Contract shall become effective immediately upon its
execution by the Parties and shall end at 12:01 a.m. on the Termination Date, (the “Term”) unless
terminated earlier in accordance with the provisions hereof. Notwithstanding the foregoing, if the
Capacity Delivery Date of the Facility is not accomplished by the RF/QF before the Required
Capacity Delivery Date (or such later date as may be permitted by DEF pursuant to Section 7),
this Contract shall be rendered null and void and DEF shall have no obligations under this Contract.

4. Minimum Specifications and Milestones

As required by FPSC Rule 25-17.0832(4)(e), the minimum specifications pertaining to this
Contract and milestone dates are as follows:

Avoided Unit Undesignated Combustion ‘Turbine

Avoided Unit Capacity 215 MW

Avoided Unit In-Service Date June 1, 290342032

Avoided Unit Heat Rate 44.99110.487 BTU/k Wh

Avoided Unit Variable O&M 0.328903¢ per kWh in mid-2022-2024 dollars
escalating annually at 2.50%

Avoided Unit Life 35 years

Capacity Payments begin Avoided Unit In-Service Date unless Option B,
or D is selected or amended in Appendix E

| Termination Date May 31, 2644-2042 (10 years) unless amended

in Appendix E
Minimum Performance Standards — On | 95%
Peak Availability Factor*
Minimum Performance Standards — Off | 95%
Peak Availability Factor
Minimum Availability Factor Required to | 75%
qualify for a Capacity payment
Expiration Date April 1, 29242025
Exemplary Early Capacity Payment Date | January 1, 20322030

* RF/QF performance shall be as measured and/or described in Appendix A.

ISSUED BY: Geoff Foster, Vice President, Rates & Regulatory Strategy - FL
EFFECTIVE: June+3_2023

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ Attachment A
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C DUKE SECTION No. IX
& TENTH REVISED SHEET NO. 9.416
ENERGY. CANCELS NINTH REVISED SHEET NO. 9.416

5. Conditions Precedent

(a) Unless otherwise waived in writing by DEF, on or before the Drop Dead Date, RF/QF
shall satisfy the following Conditions Precedent:

(i) RF/QF shall have obtained and maintain firm transmission service necessary to
deliver Capacity and Energy from the Facility to the Electrical Interconnection
Point. For the avoidance of doubt, firm transmission service includes the
execution of an interconnection agreement including the written authorization by

“a i mod 4 1 a

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C DUKE SECTION No. IX
SIXTH REVISED SHEET NO.9.417
ce ENERGY. CANCELS FIFTH REVISED SHEET NO. 9.417

(vill) RF/QF shall obtain a certificate addressed to DEF from a Licensed Professional
Engineer (reasonably acceptable to DEF in all respects) stating the project is
technically viable. The RF/QF shall provide the Duke Energy Florida Director of
Qualified Facility Contracts this certificate and a copy of the Professional
Engineer’s license.

(b) Promptly upon satisfaction of the Conditions Precedent to be satisfied, the Party having
satisfied the same shall deliver to the other Party a certificate evidencing such
satisfaction. DEF mav waive the satisfaction of a Condition Precedent at its sole

wy week Vp wee pany rae eet ee ne a eee A eee ee eee 2 ee ey eee

shall have been effected in accordance with the electrical interconnection and
operating agreement required by the Transmission Provider, provided, however,
that such physical connection shall be made consistent with the terms hereof.

6. Sale of Electricity by the RF/QF

6.1 Consistent with the terms hereof, the RF/QF shall sell to DEF and DEF shall
purchase from the RF/QF electric power generated by the Facility. The purchase
and sale of electricity pursuant to this Contract shall be a (_) net billing arrangement
or( ) simultaneous purchase and sale arrangement; provided, however, that no such
arrangement shall cause the RF/QF to sell more than the Facility's net output. The
billing methodology may be changed at the option of the RF/QF, subject to the
provisions of Appendix D.

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DOCKET NO. 20240048-EQ Attachment A
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C DUKE SECTION No, IX
NINTH REVISED SHEET NO. 9.418
S ENERGY. CANCELS EIGHTH REVISED SHEET NO. 9.418

6.3 In the event that the RF/QF decides to sell any or all EAs that result from the
electric generation of the RF/QF during the term of this Contract, the RF/QF shall
provide notice to the Company of its intent to sell such EAs and provide the
Company a reasonable opportunity to offer to purchase such EAs.

6.4 = The RF/QF shall not rely on interruptible or curtailable standby service for the start
up requirements (initial or otherwise) of the Facility.

64 The RF/OF shall he resnonsible for the scheduling of reanired transmission and for

percent (LUUYo) OL IN€ COMMILlead VCapacily sel LOTLN I Secuon /.1. Subject Lo
Section 8.1, the RF/QF may schedule and perform up to three (3) Committed
Capacity Tests to satisfy the requirements of the Contract with respect to the first
Committed Capacity Test.

ISSUED BY: Geoff Foster, Vice President, Rates & Regulatory Strategy - FL
EFFECTIVE: July 19, 2021

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ Attachment A

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fm, DUKE SECTION No, IX
NINTH REVISED SHEET NO. 9.419
& ENERGY. CANCELS EIGHTH REVISED SHEET NO. 9.419

73 In addition to the first Committed Capacity Test, DEF shall have the right to require
the RF/QF, after notice of no less than ten (10) Business Days prior to such
proposed event, to validate the Committed Capacity by means of a Committed
Capacity Test at any time, up to two (2) times per year, the results of which shall
be provided to DEF within seven (7) calendar days of the conclusion of such test.
On and after the date of such requested Committed Capacity Test, and until the
completion of a subsequent Committed Capacity Test, the Committed Capacity
shall be set at the lower of the Capacity tested or the Committed Capacity as set
forth in Section 7.1. Provided however, any such second test requested within a
twelve (12) month period must be for cause.

7.4 Notwithstanding anything contrary to the terms hereof, the Committed Capacity
may not exceed the amount set forth in Section 7.1 without the consent of DEF,
which consent shall be granted in DEF's sole discretion.

7.5 Unless Option B or D as contained in Appendix D or Appendix E is chosen by
RF/QF, DEF shall make no Capacity Payments to the RF/QF prior to the Avoided
Unit In-Service Date.

7.6 The RF/QF shall be entitled to receive Capacity Payments beginning on the
Capacity Delivery Date, provided the Capacity Delivery Date occurs before the
Required Capacity Delivery Date (or such later date permitted by DEF) and the
following Delivery Date Conditions (defined below) have been satisfied. If the

REULULL LU, GLE DY OWL PLULOEULULL G11 VULLULUL GLU CLULULLIALIY WELIe Lau

Control devices are installed and operational.

ISSUED BY: Javier Portuondo, Vice President, Rates & Regulatory Strategy - FL
EFFECTIVE: June 9, 2020

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ Attachment A
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C DUKE SECTION No. IX
& SEVENTH REVISED SHEET NO. 9.420
ENERGY. CANCELS SIXTH REVISED SHEET NO. 9.420

7.6.2 A certificate addressed to DEF from a Licensed Professional Engineer
(reasonably acceptable to DEF in all respects) stating, in conformance with
the requirements of the interconnection agreement, that: (a) all required
interconnection facilities have been constructed; (b) all required
interconnection tests have been completed; and (c) the Facility is physically
interconnected with the Transmission System in conformance with the
interconnection agreement and able to deliver energy consistent with the
terms of this Contract.

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DOCKET NO. 20240048-EQ Attachment A
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C DUKE SECTION No. IX
& SEVENTH REVISED SHEET NO. 9.421
ENERGY. CANCELS SIXTH REVISED SHEET NO. 9.424

8.2 The Committed Capacity Test results shall be based on a test period of twenty-four
(24) consecutive hours (the "Committed Capacity Test Period") at the highest
sustained net kW rating at which the Facility can operate without exceeding the
design operating conditions, temperature, pressures, and other parameters defined
by the applicable manufacturer(s) for steady state operations at the Facility. The
Committed Capacity Test Period shall commence at the time designated by the
RF/QF pursuant to Section 8.1 or at such time requested by DEF pursuant to Section
7.3; provided, however, that the Committed Capacity Test Period may commence
earlier than such time in the event that DEF is notified of, and consents to, such
earlier time.

8.3 Normal station service use of unit auxiliaries, including, without limitation, cooling
towers, heat exchangers, and other equipment required by law, shall be in service
during the Committed Capacity Test Period.

8.4 The Capacity of the Facility shall be the minimum hourly net output in kW
(generator output minus auxiliary) measured over the Committed Capacity Test
Period.

8.5 The Committed Capacity Test shall be performed according to standard industry
testing procedures for the appropriate technology of the RF/QF.

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ

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Attachment A
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&

DUKE
ENERGY.

9,2 Capacity

SECTION No, IX
SEVENTHREVISED SHEET No. 9.422
CANCELS SIXTH REVISED SHEET NO. 9.422

DEF agrees to pay the RF/QF for the Capacity described in Section 7 in accordance
with the rates and procedures contained in Appendix D, as it may be amended and
approved from time to time by the FPSC, and pursuant to the election of Option

of Appendix D or an alternative rate schedule in Appendix E. The
RF/QF understands and agrees that Capacity Payments will only be made if the
Canacitv Deliverv Date occurs hefore the Reanired Canacitv Deliverv Date and the

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C DUKE SECTION No, IX
NINTH REVISED SHEET NO. 9.423
S ENERGY. CANCELS EIGHTH REVISED SHEET NO. 9.423

10.2. By October 31 of each calendar year, DEF shall notify the RF/QF in writing
whether the requested scheduled maintenance periods in the detailed plan are
acceptable. If DEF does not accept any of the requested scheduled maintenance
periods, DEF shall advise the RF/QF of the time period closest to the requested
period(s) when the outage(s) can be scheduled. The RF/QF shall only schedule
outages during periods approved by DEF, and such approval shall not be
unreasonably withheld. Once the schedule for the detailed plan has been
established and approved, either Party requesting a subsequent change in such
schedule, except when such change 1s due to Force Majeure, must obtain approval
for such change from the other Party. Such approval shall not be unreasonably
withheld or delayed. Scheduled maintenance outage days shall be limited to eleven
days per calendar year. In no event shall maintenance periods be scheduled during
the following periods: June 1 through September 15 and December 1 through and
including the last day of February.

10.3. The RF/QF shall comply with reasonable requests by DEF regarding day-to-day
and hour-by-hour communication between the Parties relative to electricity
production and maintenance scheduling.

10.4 The Parties recognize that the intent of the availability factor in Section 4 of this
Contract includes an allowance for scheduled outages, forced outages and forced
reductions in the output of the Facility. Therefore, the RF/QF shall provide DEF
with notification of any forced outage or reduction in output which shall include

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C DUKE SECTION No. IX
& ELEVENTH REVISED SHEET NO. 9.424
ENERGY. CANCELS TENTH REVISED SHEET NO. 9.424

10.5.2 The RF/QF shall operate the Facility with all system protective equipment
in service whenever the Facility is connected to, or is operated in parallel
with, DEF's system, except for normal testing and repair in accordance with
good engineering and operating practices as agreed by the Parties. The
RF/QF shall provide adequate system protection and control devices to
ensure safe and protected operation of all energized equipment during
normal testing and repair. All RF/QF facilities shall meet IEEE and utility
standards. The RF/QF shall have independent, third party qualified
personnel test, calibrate and certify in writing all protective equipment at
least once every twelve (12) months in accordance with good engineering
and operating practices. A unit functional trip test shall be performed after
each overhaul of the Facility's turbine, generator or boilers and results
provided to DEF in writing prior to returning the equipment to service. The
specifics of the unit functional trip test will be consistent with Prudent
Regulated Utility Practices.

10.5.3 If the Facility is separated from the DEF system for any reason, under no
circumstances shall the RF/QF reconnect the Facility to DEF's system
without first obtaining DEF'S specific approval.

10.5.4 During the term of this Contract, the RF/QF shall employ qualified
personnel for managing, operating and maintaining the Facility and for
coordinating such with DEF. The RF/QF shall ensure that operating

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&

11.

DUKE

SECTION No. IX
NINTH REVISED SHEET NO. 9.425

ENERGY. CANCELS EIGHTH REVISED SHEET NO. 9.425

Completion/Performance Security

11.1

11.2

Simultaneous with the execution of this Contract RF/QF shall deliver to DEF
Eligible Collateral in an amount equal to $30.00/kw of Committed Capacity as
Completion/Performance Security.

The choice of the type of Eligible Collateral by the RF/QF may be selected from
time te time hv the RF/OF and unen receint of substitute Flicihle Collateral DEF

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C DUKE SECTION No, IX

© ENERGY. CANCELS FOURTH REVISED SHEET NO. 9.426
draw upon, or retain, in its sole discretion as the case may be, one-hundred
percent (100%) of the Completion/Performance Security as its sole remedy from
the RF/QF’s failure to perform, free from any claim or right of any nature
whatsoever of the RF/QF, including any equity or right of redemption by the
RF/QF. Following any draws on the Completion/Performance Security, the
RF/QF shall make payment to DEF to replenish the Completion/Performance
Security to the amounts required pursuant to Section 11.1 within five (5) business
days.

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C DUKE SECTION No. IX
EIGHTH REVISED SHEET NO. 9.427

ENERGY. CANCELS SEVENTH REVISED SHEET NO. 9.427

12.1.2 DEF shall have the right and the RF/QF shall be required to monitor the
financial condition of (1) the issuer(s) in the case of any Letter of Credit and
(it) the insurer(s), in the case of any bond. In the event the senior debt rating
of any issuer(s) or insurer(s) has deteriorated to the extent that they fail to
meet the requirements of a Qualified Institution, DEF may require the
RF/QF to replace the letter(s) of credit or the bond, as applicable. In the
event that DEF notifies the RF/QF that it requires such a replacement, the
replacement letier(s) of credit or bond, as applicable, must be issued by a
Qualified Institution, and meet the requirements of Section 12.1.1 within
thirty (30) calendar days following such notification. Failure by the RF/QF
to comply with the requirements of this Section 12.1.2 shall be grounds for
DEF to draw in full on any existing Letter of Credit or bond and to exercise
any other remedies it may have hereunder.

12.1.3 After the close of each calendar quarter (March 31, June 30, September 30,
and December 31) occurring subsequent to the Capacity Delivery Date,
upon DEF's issuance of the Termination Fee calculation as described in
Section 12.1, the RF/QF must provide DEF, within ten calendar (10) days,
written assurance and documentation (the “Security Documentation”), in
form and substance acceptable to DEF, that the amount of the Termination
Security is sufficient to cover the balance of the Termination Fee through
the end of the following quarter. In addition to the foregoing, at any time
during the term of this Contract, DEF shall have the right to request and the

and Oll-peak perioas IM a Manner Wal approximates we proyectea perlorMance OL ine
Avoided Unit. A formula to achieve this objective is attached as Appendix A.

14. Default

Notwithstanding the occurrence of any Force Majeure as described in Section 18, each of
the following shall constitute an Event of Default:

ISSUED BY: Javier Portuondo, Vice President, Rates & Regulatory Strategy - FL
EFFECTIVE: June 9, 2020

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C DUKE SECTION No. IX
ENERGY. NINTH REVISED SHEET NO. 9.428

CANCELS EIGHTH REVISED SHEET NO. 9.428

(a) the RF/QF changes or modifies the Facility from that provided in Section 2 with
respect to its type, location, technology or fuel source, without the prior
written approval of DEF;

(b) after the Capacity Delivery Date, the Facility fails for twelve (12) consecutive
months to maintain an Annual Capacity Billing Factor, as described in Appendix
A, of at least seventy five percent (75%);

fer the RE/OF faile ta catief tte ohlioatians ta maintain enfficient firel an the cite of

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C DUKE SECTION No. IX
SIXTH REVISED SHEET NO. 9.429
ce ENERGY. CANCELS FIFTH REVISED SHEET NO. 9.429

(k) either Party breaches any material provision of this Contract not specifically
mentioned in this Section 14;

(hy the RF/QF fails to maintain its status as a Qualifying Facility;
(m) the RF/QF sells any Energy or Capacity to an entity other than DEF;
(n) the RF/QF suspends its Interconnection Agreement or the construction of its
interconnection facilities;
15. Rights in the Event of Default

15.1. Upon the occurrence of any of the Events of Default in Section 14, the DEF may,
at its option:

15.1.1. immediately terminate this Contract, without penalty or further
obligation, except as set forth in Section 15.2, by written notice to the
RF/QF, and offset against any payment(s) due from DEF to the RF/QF,
any monies otherwise due from the RF/QF to DEF;

15.1.2 enforce the provisions of the Completion/Performance Security pursuant
to Section 11 and/or the Termination Security requirement pursuant to

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C DUKE SECTION No. IX
SIXTH REVISED SHEET NO. 9.430
ce ENERGY. CANCELS FIFTH REVISED SHEET NO. 9.430

(b) any act or omission by the Indemnifying Party or its contractors, agents,
servants or employees in connection with the installation or operation of its
generation system or the operation thereof in connection with the other
Party's system;

(c) any defect in, failure of, or fault related to, the Indemnifying Party’s
generation system;

(d) the negligence or willful misconduct of the Indemnifying Party or its
contractors, agents, servants or employees; or

(e) any other event or act that is the result of, or proximately caused by, the
Indemnifying Party or its contractors, agents, servants or employees related
to the Contract or the Parties’ performance thereunder.

16.2 Payment by an Indemnified Party to a third party shall not be a condition precedent
to the obligations of the Indemnifying Party under Section 16. No Indemnified
Party under Section 16 shall settle any claim for which it claims indemnification
hereunder without first allowing the Indemnifying Party the right to defend such a
claim. The Indemnifying Party shall have no obligations under Section 16 in the
event of a breach of the foregoing sentence by the Indemnified Party. Section 16
shall survive termination of this Contract.

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C DUKE SECTION No. IX
& SEVENTH REVISED SHEET NO. 9.431
ENERGY. CANCELS SIXTH REVISED SHEET NO. 9.434

17.3. To the extent that the RF/QF Insurance is on a “ claims made “ basis, the
retroactive date of the policy(ies) shall be the Effective Date of this Contract or an
earlier date. Furthermore, to the extent the RF/QF Insurance 1s on a “claims
made” basis, the RF/QF’s duty to provide insurance coverage shall survive the
termination of this Contract until the expiration of the maximum statutory period
of limitations in the State of Florida for actions based in contract or in tort. To the
extent the RF/QF Insurance is on an “occurrence” basis, such insurance shall be
maintained in effect at all times by the RF/QF during the term of this Contract.

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C DUKE SECTION No. IX
& FIFTH REVISED SHEET NO. 9.432
ENERGY. CANCELS FOURTH REVISED SHEET NO. 9.432

(iii) the RF/QF’s failure to obtain on a timely basis and maintain a necessary permit
or other regulatory approval; (iv) a failure of performance of any other entity,
including any entity providing electric transmission service to the RF/QF, except
to the extent that such failure was caused by an event that would otherwise qualify
as a Force Majeure event; or (v) an interruption of fuel supply.

18.2 Except as otherwise provided in this Contract, each Party shall be excused from
performance when tts nonperformance was caused, directly or indirectly by an
event of Force Majeure.

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C DUKE SECTION No. IX
ENERGY. FOURTH REVISED SHEET NO. 9.433

CANCELS THIRD REVISED SHEET NO. 9.433

18.8 Upon the cessation of the event of Force Majeure or the conclusion of the cure for
the event of Force Majeure, the Committed Capacity shall be restored to the
Committed Capacity that existed immediately prior to the Force Majeure.
Notwithstanding any other provisions of this Contract, upon such cessation or cure,
DEF shall have right to require a Committed Capacity Test to demonstrate the
Facility's compliance with the requirements of this Section 18.8. Any such
Committed Capacity Test required by DEF shall be additional to any Committed
Capacity Test under Section 7.3.

Contract and all OlMer Telatead GocuMents anda agreements LO WHICN 1 1S OF SNall De
a Party. Each Party is duly qualified or licensed to do business in the State of
Florida and in all other jurisdictions wherein the nature of its business and
operations or the character of the properties owned or leased by it makes such
qualification or licensing necessary and where the failure to be so qualified or
licensed would impair its ability to perform its obligations under this Contract or
would result in a material liability to or would have a material adverse effect on the
other Party.

ISSUED BY: Javier Portuondo, Vice President, Rates & Regulatory Strategy - FL
EFFECTIVE: June 9, 2020

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C DUKE SECTION No. IX
& THIRD REVISED SHEET NO. 9.434
ENERGY. CANCELS SECOND REVISED SHEET NO. 9.434

19.2. Due Authorization, No Approvals, No Defaults

Each of the execution, delivery and performance by each Party of this Contract has
been duly authorized by all necessary action on the part of such Party, does not
require any approval, except as has been heretofore obtained, of the shareholders
DEF or of the (shareholders, partners, or others, as applicable) of
the RF/QF or any consent of or approval from any trustee, lessor or holder of any
indebtedness or other obligation of such Party, except for such as have been duly
obtained, and does not contravene or constitute a default under any law, the articles
of incorporation of DEF or the (articles of incorporation, bylaws,
or other as applicable) of such Party, or any agreement, judgment, injunction, order,
decree or other instrument binding upon such Party, or subject the Facility or any
component part thereof to any lien other than as contemplated or permitted by this
Contract.

19.3. Compliance with Laws

Each party has knowledge of all laws and business practices that must be followed
in performing its obligations under this Contract. Each party also is in compliance
with all laws, except to the extent that failure to comply therewith would not, in the
aggregate, have a material adverse effect on the other Party.

19.4 Governmental Approvals

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C DUKE SECTION No. IX
& FIFTH REVISED SHEET NO. 9.435
ENERGY. CANCELS FOURTH REVISED SHEET NO. 9.435

19.6 Environmental Matters

To the best of its knowledge after diligent inquiry, each Party knows of no
(a) existing violations of any environmental laws at the Facility, including those
governing hazardous materials or (b)pending, ongoing, or unresolved
administrative or enforcement investigations, compliance orders, claims, demands,
actions, or other litigation brought by governmental authorities or other third parties
alleging violations of any environmental law or permit which would materially and
adversely affect the operation of the Facility as contemplated by this Contract.

20. General Provisions
20.1. Project Viability

To assist DEF in assessing the RF/QF's financial and technical viability, the RF/QF
shall provide the information and documents requested in Appendix C or
substantially similar documents, to the extent the documents apply to the type of
Facility covered by this Contract and to the extent the documents are available. All
documents to be considered by DEF must be submitted at the time this Contract is
presented to DEF. Failure to provide the following such documents may result in
a determination of non-viability by DEF.

20.2 Permits

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C DUKE SECTION No. IX
& ENERGY. SIXTH REVISED SHEET NO. 9.436
® CANCELS FIFTH REVISED SHEET NO. 9.436

relieve RF/QF of its obligation to the Capacity Delivery Date. DEF shall have the
right to monitor the construction, start-up and testing of the Facility, erther on-site
or off-site. DEF's technical review and inspections of the Facility and resulting
requests, if any, shall not be construed as endorsing the design thereof or as any
warranty as to the safety. durability or reliability of the Facility.

The RF/QF shall provide DEF with the final designer's/manufacturer's generator
capability curves, protective relay types, proposed protective relay settings, main
one-line diagrams, protective relay functional diagrams, and alternating current and

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C DUKE SECTION No. IX
& ENERGY. FOURTH REVISED SHEET NO. 9.437
® CANCELS THIRD REVISED SHEET NO. 9.437
Contracts and related documents may be mailed to the address below or delivered during
normal business hours (8:00 a.m. to 4:45 p.m.) to the visitors’ entrance at the address
below:

Duke Energy Florida, LLC
d/b/a Duke Energy

299 First Avenue North
St. Petersburg, FL 33701

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&

20.9

20.10

DUKE SECTION No. IX

ENERGY. CANCELS FOURTH REVISED SHEET NO. 9.438

Dispute, Venue and Waiver of Jury Trial

With respect to any dispute, suit, action or proceedings relating to this Contract, cach
party irrevocably submits to the exclusive jurisdiction of the courts of the State of Florida
and the United States District Court located in Hillsborough County in Tampa, Florida,
and in respect of the transactions contemplated hereby, and hereby waive, and agree not
to assert, as a defense in any dispute, action, suit or proceeding for the interpretation or

way tem re ny reser seen wemnrare wencrae y sr cre smn wren yp ma gyeer we me rene yp manne meres a we me mere me

jury in respect of any litigation resulting from, arising out of or relating to this Contract
or the transactions contemplated hereby. Each Party certifies and acknowledges that (a)
no representative, agent or attorney of the other Party has represented, expressly or
otherwise, that such other Party would not, in the event of litigation, seek to enforce the
foregoing waiver, (b) each Party understands and has considered the implications of this
waiver, (c) each Party makes this waiver voluntarily and (d) each Party has been induced
to enter into this Contract by, among other things, the mutual waivers and certifications in
this Section 20.9.

Limitation of Liability

IN NO EVENT SHALL DEF, ITS PARENT CORPORATION, OFFICERS,
DIRECTORS, EMPLOYEES, AND AGENTS BE LIABLE FOR ANY
INCIDENTAL, INDIRECT, SPECIAL, CONSEQUENTIAL, EXEMPLARY,
PUNITIVE, OR MULTIPLE DAMAGES RESULTING FROM ANY CLAIM OR
CAUSE OF ACTION, WHETHER BROUGHT IN CONTRACT, TORT
(INCLUDING, BUT NOT LIMITED TO, NEGLIGENCE OR STRICT
LIABILITY), OR ANY OTHER LEGAL THEORY.

ISSUED BY: Geoff Foster, Vice President, Rates & Regulatory Strategy - FL
EFFECTIVE: July 19, 2021

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ Attachment A

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&

DUKE

SECTION No, IX
THIRD REVISED SHEET NO. 9.439

ENERGY. CANCELS SECOND REVISED SHEET NO. 9.439

20.11

20.12

Severability

If any part of this Contract, for any reason, is declared invalid or unenforceable by
a public authority of appropriate jurisdiction, then such decision shall not affect the
validity of the remainder of the Contract, which remainder shall remain in

force and effect as if this Contract had been executed without the invalid or
unenforceable portion.

Complete Agreement and Amendments

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ Attachment A

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& DUKE
ENERGY.

SECTION No. IX
FIFTH REVISED SHEET NO. 9.440
CANCELS FOURTH REVISED SHEET NO. 9.440

20.17) Change in Environmental Law or Other Regulatory Requirements

(a)

As used herein, “Change(s) in Environmental Law or Other Regulatory
Requirements” means the enactment, adoption, promulgation,
implementation, or issuance of, or a new or changed interpretation of, any
statute, rule, regulation, permit, license, judgment, order or approval by a
governmental entity that specifically addresses environmental or
regulatory issues and that takes effect after the Effective Date.

ORDER NO. PSC-2024-0229-PAA-EQ
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& DUKE SECTION No, IX

ENERGY. THIRD REVISED SHEET NO. 9.444
® CANCELS SECOND REVISED SHEET NO. 9.441
IN WITNESS WHEREOF, the RF/QF has executed this Contract on the date set forth below.

RE/QF

Signature

Print Name

Title

Date

ORDER NO. PSC-2024-0229-PAA-EQ

DOCKET NO. 20240048-EQ Attachment A
PAGE 48 Page 43 of 69
C DUKE SECTION No, IX
Se” ENERGY. CANCELS EIGHTH REVISED SHEET NO, 9.442

APPENDIX A

TO
DUKE ENERGY FLORIDA, LLC
RENEWABLE OR QUALIFYING FACILITY LESS THAN 100 KW
STANDARD OFFER CONTRACT

MONTHLY CAPACITY PAYMENT CALCULATION

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ Attachment A
PAGE 49 Page 44 of 69

C DUKE SECTION No. IX
& THIRD REVISED SHEET NO. 9.443
ENERGY. CANCELS SECOND REVISED SHEET NO. 9.443

ACBF = Annual Capacity Billing Factor. The ACBF shall be the electric
Energy actually received by DEF for the 12 consecutive months
preceding the date of calculation excluding any energy received
during an event of Force Majeure in which the Committed Capacity
is temporarily set equal to 0 kW, divided by the product of the
Committed Capacity and the number of hours in the 12 consecutive
months preceding the date of calculation excluding the hours during
an event of Force Majeure in which the Committed Capacity is
temporarily set equal to 0 kW. If an event of Force Majeure occurs

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ Attachment A

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C DUKE SECTION No. IX
& ENERGY. FOURTH REVISED SHEET 9.444

CANCELS THIRD REVISED SHEET NO. 9.444

APPENDIX B
TO
DUKE ENERGY FLORIDA, LLC
RENEWABLE OR QUALIFYING FACILITY LESS THAN 100 KW
STANDARD OFFER CONTRACT

TERMINATION FEE

Capitalized terms not otherwise defined herein have the meaning ascribed to them in the
Standard Offer Contract for the Purchase of Firm Capacity and Energy from a Renewable
Energy Producer or a Qualifying Facility less than 100 kW.

The “Termination Fee” shall be the sum of the values for each month beginning with the month in
which the Capacity Delivery Date occurs through the month of the Termination Date (or month of
calculation, as the case may be) computed according to the following formula:

n

ye (MCPi—-MCPC) - (1+ n°?

i=l

with: MCPC = 0 for all periods prior to the in-service date of the

Avoided Unit:

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ Attachment A

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C DUKE SECTION No. IX
& SEVENTH REVISED SHEET NO. 9.445
ENERGY. CANCELS SIXTH REVISED SHEET NO. 9.445

In the event that for any Monthly Billing Period, the computation of the value of the Termination
Fee for such Monthly Billing Period (as set forth above) yields a value less than zero, the amount
of the Termination Fee shall be decreased by the amount of such value expressed as a positive
number (the "Initial Reduction Value"), provided, however, that such Initial Reduction Value shall
be subject to the following adjustments (the Initial Reduction Value, as adjusted, the "Reduction

Value"):

a. In the event that in the applicable Monthly Billing Period the Annual
Capacity Billing Factor, as defined in Appendix A is less than or equal
to 75%, then the Initial Reduction Value shall be adjusted to equal
zero (Reduction Value = 0), and the Termination Fee shall not be
reduced for the applicable Monthly Billing Period.

b. In the event that in the applicable Monthly Billing Period the Annual
Capacity Billing Factor, as defined in Appendix A, is greater than 75%
but less than 95%, than the Reduction Value shall be determined as
follows:

Reduction Value = Initial Reduction Value x [5 x (ACBF - .95)]

For the applicable Monthly Billing period, the Termination Fee shall
be reduced by the amount of such Reduction Value.

ORDER NO. PSC-2024-0229-PAA-EQ

DOCKET NO. 20240048-EQ Attachment A
PAGE 52 Page 47 of 69
C DUKE SECTION No, IX
Se” ENERGY. GANCELS FIRST SHEET NO. 9446
APPENDIX C
TO

DUKE ENERGY FLORIDA, LLC
RENEWABLE OR QUALIFYING FACILITY LESS THAN 100 KW
STANDARD OFFER CONTRACT

DETAILED PROJECT INFORMATION
Capitalized terms not otherwise defined herein have the meaning ascribed to them in the Standard
Offer Contract for the Purchase of Firm Capacity and Energy from a Renewable Energy Producer
or a Qualifying Facility less than 100 kW.
Each eligible Contract received by DEF will be evaluated to determine if the underlying RF/QF
project is financially and technically viable. The RF/QF shall, to the extent available, provide DEF
with a detailed project proposal which addresses the information requested below:

I. FACILITY DESCRIPTION

Project Name
e Project Location

* Street Address

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ Attachment A
PAGE 53 Page 48 of 69

C DUKE SECTION No, IX

© ENERGY. CANCELS FIRST REVISED SHEET NO. 9.447
Project Development

Siting and Licensing the Facility

Designing the Facility

Constructing the Facility

Securing the Fuel Supply

Operating the Facility

Decommissioning the Facility

x * © & #& &

Provide details on all electrical facilities which are currently under construction or

Wow bY UW w AIS Iwo YuULLLe.

e Provide a summary of the status of the fuel supply arrangements in place to meet the
AFR, in each year of the proposed operating life of the Facility. Use the categories
below to describe the current arrangement for securing the AFR.

Category Description of Fuel Supply Arrangement

owned= __ fuel is from a fully developed source owned by one or more of the project
participants

contract = fully executed firm fuel contract exists between the developer(s) and fuel
supplier(s)

LOI = a letter of intent for fuel supply exists between developer(s) and fuel supplier(s)

SPP = small power production facility will burn biomass, waste, or another renewable
resource

spot = fuel supply will be purchased on the spot market

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ Attachment A

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C DUKE SECTION No. IX
& ENERGY. SECOND REVISED SHEET NO. 9.448
® CANCELS FIRST REVISED SHEET NO. 9.448
e Describe fuel transportation networks available for delivering all primary and
secondary fuel to the Facility site. Indicate the mode, route and distance of each

segment of the journey, from fuel source to the Facility site. Discuss the current status
and pertinent factors impacting future availability of the transportation network.

® Provide AFTR necessary to support planned levels of generation and list the
assumptions used to determine these quantities.

e Provide a summary of the status of the fuel transportation arrangements in place to meet

id FTOVIGS UC TAXTIILUITL, TITUIT alld Average LUCL WIVCHLOTY Levels LO DE IIldllldaled
for primary and secondary fuels at the Facility site. List the assumptions used in
determining the inventory levels.

e Provide information regarding RF/QF’s plans to maintain sufficient on site fuel to
deliver Capacity and Energy for an uninterrupted seventy-two (72) hour period.

IV. PLANT DISPATCHABILIT Y/CONTROLLABILITY

e Provide the following operating characteristics and a detailed explanation supporting the
performance capabilities indicated:

Ramp Rate (MW/minute)

* Paak Canahility: (94 ahave Cammitted Canacitiu’

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ Attachment A
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C DUKE SECTION No. IX
& FIRST REVISED SHEET NO. 9.449
ENERGY. CANCELS ORIGINAL SHEET NO. 9.449

Vv. SITING AND LICENSING

* Provide a licensing/permitting milestone schedule, which lists all permits, licenses and
variances, required to site the Facility. The milestone schedule shall also identify key
milestone dates for baseline monitoring, application preparation, agency review, certification
and licensing/siting board approval, and agency permit issuance.

e Provide a licensing/permitting plan that addresses the issues of air emission, water use,
wastewater discharge, wetlands, endangered species, protected properties, surrounding land
use, zoning for the Facility, associated linear facilities and support of and opposition to the
Facility.

e List the emission/effluent discharge limits the Facility will meet and describe in detail the pollution
control equipment to be used to meet these limits.

VI. FACILITY DEVELOPMENT AND PERFORMANCE

e Submit a detailed engineering, procurement, construction, startup and commercial operation
schedule. The schedule shall include milestones for site acquisition, engineering phases, selection
of the major equipment vendors, architect engineer, and Facility operator, steam host integration
and delivery of major equipment. A discussion of the current status of each milestone should also

ORDER NO. PSC-2024-0229-PAA-EQ

DOCKET NO. 20240048-EQ Attachment A
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C DUKE SECTION No, IX
Se” ENERGY. CANCELS ORIGINAL SHEET NO. 8.450

e Annual Project Revenues

Capacity Payments ($ and $/kW/Mo.)
Variable O&M ($ and $/MWh)
Energy ($ and $/MWh)

Tipping Fees ($ and $/ton)

Interest Income

Other Revenues

* £ 8 &

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ Attachment A
PAGE 57 Page 52 of 69

CANCELS ORIGINAL SHEET NO. 9.451

C DUKE SECTION No. IX
& ENERGY. FIRST REVISED SHEET NO. 9.451

e Provide details of the financing plan for the project and indicate whether the project will be
non-recourse project financed. If it will not be project financed please explain the alternative
financing arrangement.

e Submit financial statements for the last two years on the principals of the project, and provide
an illustration of the project ownership structure.

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ Attachment A
PAGE 58 Page 53 of 69

C DUKE SECTION No. IX
& ENERGY. THIRD REVISED SHEET NO. 9.452

CANCELS SECOND REVISED SHEET NO. 9.452

APPENDIX D

TO
DUKE ENERGY FLORIDA, LLC
RENEWABLE OR QUALIFYING FACILITY LESS THAN 100 KW
STANDARD OFFER CONTRACT

RATE SCHEDULE COG-2

VUTUMILE GIVTGLIy, CULL Gt Gy GvaNaUIN SLaUaLU Ld VUNARS. 1 ULUaous LEU UuLoUL ULL
territory served by DEF shall be three phase, 60-hertz alternating current at the voltage level
available at the interchange point between DEF and the entry delivering the Firm Capacity and
Energy from the RF/QF.

ISSUED BY: Javier Portuondo, Vice President, Rates & Regulatory Strategy - FL
EFFECTIVE: June 9, 2020

ORDER NO. PSC-2024-0229-PAA-EQ

DOCKET NO. 20240048-EQ Attachment A
PAGE 59 Page 54 of 69
C DUKE SECTION No, IX
Se” ENERGY. CANCELS ORIGINAL SHEET NO, 9.453
LIMITATION

Purchases under this schedule are subject to FPSC Rules 25-17.080 through 25-17.310, F.A.C.,
and are limited to those RF/QFs which:

A. Are defined in the Contract;

B. Execute a Contract;

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ Attachment A

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C DUKE SECTION No. IX
& FIRST REVISED SHEET NO. 9.454
ENERGY. CANCELS ORIGINAL SHEET NO. 9.454

Option B - Fixed Value of Deferral Payments - Early Capacity

Payment schedules under this option are based upon the early capital cost component of
the value of a year-by-year deferral of the Avoided Unit. The term “early” with respect to
Option B means that these payments can start prior to the anticipated in-service date of the
Avoided Unit; provided, however, that under no circumstances may payments begin before
this RF/QF is delivering Firm Capacity and Energy to DEF pursuant to the terms of the
Contract. When this option is selected, the Capacity Payments shall be made monthly
commencing no earlier than the Capacity Delivery Date of the RF/QF and calculated as
shown on Schedule 1. Capacity Payments under Option B do not result in a prepayment
or create a future benefit.

The RF/QF shall select the month and year in which the deliveries of firm capacity and
energy to DEF are to commence and Capacity Payments are to start. DEF will provide the
RF/QF with a schedule of capacity payment rates based on the month and year in which
the deliveries of firm capacity and energy are to commence and the term of the Contract.
The exemplary payment schedule in Table 3 is based on a contract term that begins on the
Exemplary Early Capacity Payment Date in Section 4 of the Contract.

Option C - Fixed Value of Deferral Payment - Levelized Capacity

Payment schedules under this option are based upon the levelized capital cost component

Mamtenance expense snall De Calculated as SNOWN 1 scneaule tL.

The RF/QF shall select the month and year in which the deliveries of firm capacity and
energy to DEF are to commence and Capacity Payments are to start. DEF will provide the
RF/QF with a schedule of capacity payment rates based on the month and year in which
the deliveries of firm capacity and energy are to commence and the term of the Contract.
The exemplary payment schedule in Table 3 is based on a contract term that begins on the
Exemplary Early Capacity Payment Date in Section 4 of the Contract.

ISSUED BY: Javier Portuondo, Director, Rates & Regulatory Strategy - FL
EFFECTIVE: April 29, 2013

ORDER NO. PSC-2024-0229-PAA-EQ

DOCKET NO. 20240048-EQ Attachment A
PAGE 61 Page 56 of 69
| & ay SEVENTEENTH EIGHTEENTH REVISED SHEET NO.
* 9.455
|

CANCELS Sl FEENTH SEVENTEENTH REVISED
SHEET NO. 9.455

TABLE 3
EXAMPLE MONTHLY CAPACITY PAYMENT IN $/kW/MONTH
DEF'S June 1, 2034-2032 Undesignated CT
Renewable or Qualifying Facility Standard Offer Contract Avoided Capacity Payments

(3/kW/MONTH)
Option A Option B Option C Option D
Normal Early Levelized Early Levelized
Capacity Capacity Capacity Capacity
Contract Payment Starting Payment Starting Payment Starting Payment Starting
Year on the Avoided on the on the Avoided on the
Unit In-Service Exemplary Unit In-Service Exemplary
Date Capacity Date Capacity
Payment Date Payment Date
20332032 LTT 9,184.64 11.78 9,194,035.
20352034 11.795-95 9.204-78 11.796-3+ 9.204.96
20362035 11.806-06 9.214-86 11.806-34 9,214.96
20392038 11.83640 9.23513 11.836-33 9.234.908
20492039 1184634 9.245.233 11.83634 9.23499
20442040 11.856-63 9.25332 11,846,335 9.24499.
20422041 11.866-45 9.265-42 11.856-36 9.25500
1. The Capacity Payment schedules contained in this Contract assume a term of ten

years from the Avoided Unit In-Service Date. In the event the RF/QF requests a
term greater than ten years but less than the Avoided Unit Life then DEF shall
prepare a schedule of Capacity Payments for the requested term. Such Capacity
Payment rates shall be calculated utilizing the value-of-deferral methodology
described in FPSC Rule 25-17.0832(6).

ISSUED BY: Geoff Foster, Vice President, Rates & Regulatory Strategy - FL
EFFECTIVE: -

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ Attachment A

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&

B.

DUKE SECTION No. IX

ENERGY. CANCELS FIRST REVISED SHEET NO. 9.456

The RF/OF may also request an alternative Capacity Payment rate stream from
DEF as authorized by Rule 25-17.250(4). Regardless of the Capacity Payment
rate stream requested by the RF/QF, the cumulative present value of the capital
cost payments made to the RF/QF over the term of the Contract shall not exceed
the cumulative present value of the capital cost payments had such payments been
made pursuant to FPSC Rule 25-17.0832(4)(g)(i). Fixed operation and
maintenance expense shall be calculated to conform with FPSC Rule 25-
17.0832(6)(b). Such an alternative Capacity Payment rate shall be subject to the
Termination Fee in Appendix B.

In the event that alternative Capacity Payment rates are agreed upon, such
Capacity Payment rate schedule shall be attached to the Contract in Appendix E.

Energy Rates

Payments Prior to the Avoided Unit In-Service Date

L.

The energy rate, in cents per kilowatt-hour (¢/k Wh), shall be based on DEF's actual
hourly avoided energy costs which are calculated by DEF in accordance with FPSC
Rule 25-17.0825, F.A.C.

The calculation of payments to the RF/QF shall be based on the sum over all hours

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ Attachment A
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C DUKE SECTION No. IX
& ELEVENTH REVISED SHEET NO. 9.457
ENERGY. CANCELS TENTH REVISED SHEET NO. 9.457

For any period during which energy is delivered by the RF/QF to DEF, the Firm Energy
Rate in cents per kilowatt hour (¢/k Wh) shall be the following on an hour-by-hour basis:
the lesser of (a) the As-Available Energy Rate and (b) the Avoided Unit Energy Cost. The
Avoided Unit Energy Cost, in cents per kilowatt - hour (¢/kWh) shall be defined as the
product of (a) the Avoided Unit Fuel Cost and (b) the Avoided Unit Heat Rate; plus (c) the
Avoided Unit Variable O&M.

For the purposes of this agreement, the Avoided Unit Fuel Cost shall be determined from

proj ections will be provided within 30 days of a written request for such proj ections by any
interested person.

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ Attachment A
PAGE 64 Page 59 of 69

C DUKE SECTION No. IX
FOURTEENTH REVISED SHEET NO. 9.458

ENERGY. CANCELS THIRTEENTH REVISED SHEET NO. 9.458

ESTIMATED UNIT FUEL COST

As required in Section 25-17.0832, F_A.C., the estimated fuel costs associated with DEF’s Avoided
Unit are based on current estimates of the price of natural gas and will be provided within 30 days
of a written request for such projections by any interested person.

DELIVERY VOLTAGE ADJUSTMENT

DEF’s average system line losses are analyzed annually for the prior calendar year, and delivery
efficiencies are developed for the transmission, distribution primary, and distribution secondary
voltage levels. This analysis is provided in the DEF’s Procedures For Changing The Real Power
Loss Factor (currently Attachment Q) in its Open Access Transmission Tariff and DEF’s fuel cost
recovery filing with the FPSC. An adjustment factor, calculated as the reciprocal of the appropriate
delivery efficiency factor, is applicable to the above determined energy costs if the RF/QF is within
DEF’s service territory to reflect the delivery voltage level at which RF/QF energy is received by
the DEF.

The Delivery Voltage Adjustment will be calculated based on the current delivery efficiencies in
conjunction with DEF’s Open Access Transmission Tariff as approved by the FERC. The current
Delivery Voltage Adjustment will be provided within 30 days of a written request by any interested
person.

PERFORMANCE CRITERIA

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ Attachment A
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C DUKE SECTION No. IX
& THIRD REVISED SHEET NO, 9.459
ENERGY. CANCELS SECOND REVISED SHEET NO. 9.459

METERING REQUIREMENTS

The RF/QFs within the territory served by DEF shall be required to purchase from DEF hourly
recording meters to measure their energy deliveries to DEF. Energy purchases from the RF/QFs
outside the territory of DEF shall be measured as the quantities scheduled for interchange to DEF
by the entity delivering Firm Capacity and Energy to DEF.

BILLING OPTIONS

A RF/QF, upon entering into this Contract for the sale of firm capacity and energy or prior to
delivery of as-available energy, may elect to make either simultaneous purchases from and sales
to DEF, or net sales to DEF; provided, however, that no such arrangement shall cause the RF/QF
to sell more than the Facility's net output. A decision on billing methods may only be changed:
1) when a RF/QF selling as-available energy enters into this Contract for the sale of firm capacity
and energy; 2) when a Contact expires or is lawfully terminated by either the RF/QF or DEF; 3)
when the RF/QF is selling as-available energy and has not changed billing methods within the last
twelve months; 4) when the election to change billing methods will not contravene the provisions
of FPSC Rule 25-17.0832 or a contract between the RF/QF and DEF.

If a RF/QF elects to change billing methods, such changes shall be subject to the following: 1)
upon at least thirty days advance written note to DEF; 2) the installation by DEF of any additional
metering equipment reasonably required to effect the change in billing and upon payment by the
RF/QF for such metering equipment and its installation; and 3) upon completion and approval by
DEF of any alteration(s) to the interconnection reasonably required to effect the change in billing
and upon payment by the RF/QF for such alteration(s).

Payments due a RF/QF will be made monthly and normally by the twentieth business day
following the end of the billing period. The kilowatt-hours sold by the RF/QF and the applicable
avoided energy rates at which payment are being made shall accompany the payment to the RF/QF.

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ Attachment A
PAGE 66 Page 61 of 69

CANCELS THIRD REVISED SHEET NO. 9.460

C DUKE SECTION No. IX
ENERGY. FOURTH REVISED SHEET NO. 9.460

CHARGES TO RENEWABLE ENERGY PROVIDER

The RF/QF shall be responsible for all applicable charges as currently approved or as they may be
approved by the Florida Public Service Commission, including, but not limited to:

A. Retail Service Charges

The RF/QF shall be responsible for all FPSC approved charges for any retail service that
mav he nrovided hv DEF The RFE/OF shall he hilled at the enstomer charoe rate stated in

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ Attachment A
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(> DUKE SECTION No. IX
& SECOND REVISED SHEET NO. 9.461
ENERGY. CANCELS FIRST REVISED SHEET NO. 9.461

TERMS OF SERVICE

A. It shall be the RF/QF's responsibility to inform DEF of any change in its electric
generation capability.

B. Any electric service delivered by DEF to a RF/QF located in DEF's service area
shall be subject to the following terms and conditions:

fan A RE/OF shall he metered senarately and hilled under the annlicahle retail

mterconnecuon Wilh, ana aelivery into, ine Vompany s system MUSt De
accomplished in accordance with the provisions of FPSC Rule 25-17.087.

C. Service under this rate schedule is subject to the rules and regulations of the FPSC.

ISSUED BY: Javier Portuondo, Vice President, Rates & Regulatory Strategy - FL
EFFECTIVE: June 9, 2020

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ Attachment A
PAGE 68 Page 63 of 69

(> DUKE SECTION No. IX
& FIRST REVISED SHEET NO. 9.462
ENERGY. CANCELS ORIGINAL SHEET NO. 9.462

SCHEDULE 1
TO RATE SCHEDULE COG-2

CALCULATION OF VALUE OF DEFERRAL PAYMENTS
APPLICABILITY

This Schedule 1 provides a detailed description of the methodology used by DEF to
calculate the monthly values of deferring or avoiding the Avoided Unit identified in the
Contract. When used in conjunction with the current FPSC-approved cost parameters
associated with the Avoided Unit contained in Schedule 2, a RF/QF may determine the
applicable value of deferral capacity payment rate associated with the timing and operation
of its particular facility should the RF/QF enter into a Contract with DEF.

Also contained in this Schedule 1 is the discussion of the types and forms of surety bond
requirements or equivalent assurance for payment of the Termination Fee acceptable to
DEF in the event of contractual default by a RF/QF.

CALCULATION OF VALUE OF DEFERRAL OPTION A

FPSC Rule 25-17.0832(5) specifies that avoided capacity costs, in dollars per kilowatt per
month, associated with capacity sold to a utility by a RF/QF pursuant to Contract shall be
defined as the year-by-year value of deferral of the Avoided Unit. The year-by-year value

ORDER NO. PSC-2024-0229-PAA-EQ
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(> DUKE SECTION No. IX
& FIRST REVISED SHEET NO. 9.463
ENERGY. CANCELS ORIGINAL SHEET NO, 9.463

On total fixed operation and maintenance expense for the
year n, in mid-year dollars per kilowatt per year, of the
Avoided Unit;

ip annual escalation rate associated with the plant cost of the
Avoided Unit:

lo = annual escalation rate associated with the operation and

maintenance expense of the Avoided Unit;

r = annual discount rate, defined as the utility's incremental
after-tax cost of capital;

L = expected life of the Avoided Unit; and

n = year for which the Avoided Unit is deferred starting with

the Avoided Unit In-Service Date and ending with the
Termination Date.

CALCULATION OF FIXED VALUE OF DEFERRAL PAYMENTS - EARLY
CAPACITY-OPTION B

ORDER NO. PSC-2024-0229-PAA-EQ
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(> DUKE SECTION No. IX
& FIRST REVISED SHEET NO. 9.464
ENERGY. CANCELS ORIGINAL SHEET NO, 9.464

m year for which the fixed value of deferral payments under
the early capacity option are made to a RF/QF, starting in
year one and ending in the year t;

t the Term, in years, of the Contract:

Ac = F[Q-R)/(-R)]

CALCULATION OF FIXED VALUE OF DEFERRAL PAYMENTS -
LEVELIZED AND EARLY LEVELIZED CAPACITY - OPTION C & OPTION D,
RESPECTIVELY

Monthly fixed value of deferral payments for levelized and early levelized capacity shall

be calculated as follows:

ISSUED BY: Javier Portuondo, Director, Rates & Regulatory Strategy - FL
EFFECTIVE: April 29, 2013

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ Attachment A

PAGE 71

Page 66 of 69

€

DUKE SECTION No, IX
ENERGY. FIRST REVISED SHEET NO. 9.465
™ CANCELS ORIGINAL SHEET NO. 9.465
PL =(F/12)-[r/1-(+ry']+0
Where:

PL the monthly levelized capacity payment, starting on or
prior to the in-service date of DEF's Avoided Unit(s):

F = the eumulative present value. in the vear that the

ORDER NO. PSC-2024-0229-PAA-EQ

DOCKET NO. 20240048-EQ Attachment A
PAGE 72 Page 67 of 69

(> DUKE SECTION No, IX
& ENERGY, FIRST REVISED SHEET NO. 9.466
® CANCELS ORIGINAL SHEET NO. 6.466

DEF will cooperate with each RE/QF applying for fixed value of deferral payments under
the early, levelized or early levelized capacity options to determine the exact form of an
"equivalent assurance" for payment of the Termination Fee to be required based on the
particular aspects of the RF/QF. DEF will endeavor to accommodate an equivalent
assurance of repayment which is in the best interests of both the RF/QF and DEF's

ratepayers.

ORDER NO. PSC-2024-0229-PAA-EQ
DOCKET NO. 20240048-EQ Attachment A
PAGE 73 Page 68 of 69

& DUKE SECTION No. IX

ENERGY. SEVENTEENTH EIGHTEENTH REVISED SHEET

® No. 9.467

CANCELS SHCTEENTH SEVENTEENTH REVISED
SHEET NO. 9.467

SCHEDULE 2
TO RATE SCHEDULE COG-2 CAPACITY OPTION PARAMETERS

FIXED VALUE OF DEFERRAL PAYMENTS -
NORMAL CAPACITY OPTION PARAMETERS

Where, for one year deferral:

Value
| VACn = DEF's value of avoided capacity and O&M, in dollars per kilowatt go SE
per month, during month m;
| kK present value of carrying charges for one dollar of investment 1268287
over L years with carrying charges computed using average
annual rate base and assumed to be paid at the middle of each year
and present valued to the middle of the first year:
| In = total direct and indirect cost, in mid-year dollars per kilowatt mae
including AFUDC but excluding CWIP, of the Avoided Unit with
an in-service date of year n;
| On = total fixed operation and maintenance expense, for the year n, in 3.4342
mid-year dollars per kilowatt per year, of the Avoided Unit:
| ip annual escalation rate associated with the plant cost of the 783,02%
Avoided Unit:
. _ , P : 2.50%
io annual escalation rate associated with the operation and
maintenance expense of the Avoided Unit;
6-257.45%
| r = annual discount rate, defined as DEF's incremental after-tax cost S5L45%
of capital:
L expected life of the Avoided Unit; 35
ln = year for which the Avoided Unit is deferred starting with the 7°? 12932
Avoided Unit In-Service Date and ending with the Termination
Date.

ISSUED BY: Geoff Foster, Vice President, Rates & Regulatory Strategy - FL
EFFECTIVE: -

ORDER NO. PSC-2024-0229-PAA-EQ

DOCKET NO. 20240048-EQ Attachment A
PAGE 74 Page 69 of 69
(> DUKE SECTION No. IX
SEVENTEENTH EIGTHEENTH REVISED SHEET
|S? ENERGY. ovis
| CANCELS SECTEENTH SEVENTEENTH REVISED
SHEET NO, 9.468
FIXED VALUE OF DEFERRAL PAYMENTS -
EARLY CAPACITY OPTION PARAMETERS
Am monthly avoided capital cost component of Capacity Payments to
| be made to the RF/OF starting as early as two years prior to the 428.25
Avoided Unit In-Service Date, in dollars per kilowatt per month;
Ip annual escalation rate associated with the plant cost of the
| Avoided Unit; +783,02%
‘ ic | aci ay: k / Fi in;
| n year for which early Capacity Payments to a RF/OF are to begin: 327030
F the cumulative present value of the avoided capital cost z
: i 2982-25611.
component of Capacity Payments which would have been made ” 37
had Capacity Payments commenced with the anticipated in- —
service date of the Avoided Unit and continued for a period of 10
years;
r annual discount rate, defined as DEF's incremental after-tax cost 6-257.45%
of capital; =
t the Term, in years, of the Contract for the purchase of firm 3
capacity commencing prior to the in-service date of the Avoided
Unit:
G the cumulative present value of the avoided fixed operation and 13611726

maintenance expense component of Capacity Payments which
would have been made had Capacity Payments commenced with
the anticipated in-service date of the Avoided Unit and continued
until the Termination Date.

ISSUED BY: Geoff Foster, Vice President, Rates & Regulatory Strategy - FL

EFFECTIVE: