Florida Public Service Commission native order document 07326-2024

FILED 7/8/2024
DOCUMENT NO. 07326-2024
FPSC - COMMISSION CLERK
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In re: Petition for limited proceeding for
recovery of incremental storm restoration costs
related to Hurricanes Ian and Nicole, by
Florida Power & Li ht Com an .
DOCKET NO. 20230017-EI
ORDER NO. PSC-2024-0227-S-EI
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
FINAL ORDER APPROVING STIPULATIONS
BY THE COMMISSION:
APPEARANCES:
CHRISTOPHER T. WRIGHT and JOEL T. BAKER, ESQUIRES, 700 Universe
Blvd., Juno Beach, Florida 33408
On behalf of Florida Power & Light Company (FPL).
WALT 	TRIER WEILER, 	Public 	Counsel, 	CHARLES 	REHWINKEL, 	and
PATRICIA A. CHRISTENSEN, ESQUIRES, Office of Public Counsel, c/o The
Florida Legislature, 	111 	W. Madison Street, Room 81 2, Tallahassee, Florida
32399
On behalf of Office of Public Counsel (OPC).
STEPHANIE U. EA TON, ESQUIRE, Spilman, Thomas & Battle, PLLC, 110
Oakwood Drive, Suite 500, Winston-Salem , North Carolina 27103
On behalf of Wal mart, Inc. (Wal mart).
DERRICK PRICE WILLIAMSON and STEVEN W. LEE, ESQUIRES, Spilman,
Thomas & Battle, PLLC, 1100 Bent Creek Blvd., Suite 101 , Mechanicsburg,
Pennsylvania 17050
On behalf of Wal mart Inc. (Walmart).
SHAW STILLER and 	DANIEL 	DOSE, 	ESQUIRES, 	Florida Public Service
Commission, 2540 Shumard Oak Boulevard, Tallahassee, Florida 32399-0850
On behalf of the Florida Public Service Commission (Staff).

ORDER NO. PSC-2024-0227-S-EI
DOCKET NO. 20230017-EI
PAGE2
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.
KElTJJ 	C. 	HETRICK, 	ESQUIRE, 	General 	Counsel, 	Florida Public 	Service
Commission, 2540 Shumard Oak Boulevard, Tallahassee, Florida 32399-0850
Florida Public Service Commission General Counsel
Background
On January 23, 2023, Florida Power & Light Company (FPL of Company) filed a
Petition for limited proceeding for recovery of incremental storm restoration costs related to
Hurricanes Ian and Nicole. The petition was filed pursuant to the provisions of the Stipulation
and Settlement Agreement approved by Final Order as a full resolution of FPL's most recent
base rate case. 1 Under that Settlement and Final Order, FPL can begin recovery of storm costs 60
days following the filing of a petition for recovery.
Tn its petition, FPL sought authority to implement an interim storm restoration recovery
surcharge to recover an estimated total of$ l.3 bi II ion for incremental restoration costs related to
Hun-icanes Ian and Nicole and to replenish the storm reserve to the pre-stonn level of $219.9
million. FPL also prepared an alternate storm charge calculation seeking authority to implement
an interim storm restoration recovery charge to recover an estimated total of $1.5 billion. This
alternate calculation combines the incremental restoration costs related to Hurricanes Ian and
Nicole with the remaining amounts to be collected for Hurricanes Michael. Sally, and Zeta,
which we previously approved for recovery by Gulf Power Company, 2 and to replenish the storm
reserve. We granted FPL's petition by Order No. PSC-2023-0110-PCO-EI, issued March 3,
2023, and approved a consolidated interim stonn surcharge using FPL 's alternate stmm charge
calculation to cover restoration costs and to replenish the stonn reserve. We ordered that this
docket remain open pending final disposition (true-up) of storm costs.
On July 28, 2023, FPL filed in this docket a petition for a temporary waiver of or
variance from Rule 25-6.0143( l)(g), Florida Administrative Code. FPL requested a waiver of the
portion of this Rule that required it to file its petition and documentation concerning disposition
of deferred storm costs related to Hu1Ticanes Ian and Nicole not later than September 30, 2023.
FPL requested that it be allowed until December 31, 2023, to file its petition and supporting
documentation. By Order PSC-2023-0298-PAA-EI, issued October 2, 2023, we granted FPL's
petition and established December 31, 2023, as the Company's filing deadline.
On September 5, 2023, FPL filed a supplemental petition to reduce the interim storm
surcharge based on its internal review and finalization of the invoices and storm costs associated
1Order No. PSC-2021-0446-S-El, issued December 2, 2021, in Docket No. 202100 15-EI, In re: Petition for rate
increase by Florida Power & Light Compm~y.
2 Order No s. PSC-2019-0221-PCO-EI and PSC-2022-0406-FOF-EI.

ORDER NO. PSC-2024-0227-S-EI
DOCKET NO. 20230017-EI
PAGE3
with Hurricanes Ian and Nicole. As a result of this internal process, the estimated incremental
storm restoration cost related to the two storms decreased from the original estimate of $1.3
billion 	to $1.1 	billion. 	Thus, the total 	estimate reflected 	in the alternative storm charge
calculation decreased from $ 1.5 billion to $1.3 billion. FPL proposed amended (reduced) interim
storm restoration charges applicable to all rate classes, effective with the first billing cycle of
.January 2024 and continuing through March 2024, subject to a final true-up. We approved FPL's
petition and reduced the interim storm surcharge by Order No. PSC-2023-0354-P AA-EI, issued
November 27, 2023.
On 	ovember 17, 2023, FPL filed a petition for approval or actual incremental storm
restoration costs association with HuiTicanes Ian and Nicole and associated true-up process. On
December 14 , 2023, Order No. PSC-2023-0372-PCO-EI was issued. establishing controlling
dates for this proceeding and scheduling an administrative hearing on this petition for June I 8-
20, 2024. We acknowledged intervention by the Office of Public Counsel (OPC) in this docket
by Order No. PSC-2023-0081-FOF-EI, issued February 10. 2023. Interventi on was granted to
Walmart, Inc. (Walmart) by Order No. PSC-2023-0381-PCO-EI, issued December 20, 2023. We
denied the petition for intervention by Jet Blast, Inc. , filed May 8, 2024, by Order No. PSC-
2023-0186-PCO-El, issued Jw1e 7, 2024.
As 	part of its Prehearing 	Statement 	filed 	June 4, 	2024, 	FPL 	submitted 	a 	set of
Stipulations reached between the Company and OPC as a full and complete resolution of all
disputed issues in this proceeding. OPC confirmed in its Prehearing Statement ··that these
stipulations are reasonable and prudent resolutions to the issues and are in the public interest.'· A
true and correct copy of the Stipulations is appended to this Order as Attachment A.
At the prehearing on June 11 , 2024, Walmart stated that it joined in several of the
Stipulations between OPC and FPL , and objected to none. Walma11, OPC, and FPL confirmed to
the Prehearing Officer that Commission approval of the proposed Stipulations would constitute a
full and complete resolution of all disputed issues in this proceeding, and that a separate vote on
the fifteen 	issues identified in the Prehearing Statement would not be necessary. Walmart
committed 	to submit an 	appropriate 	tiling to memorialize in writing its position on 	the
Stipulations. The Prehearing Officer then excused Walmart from attendance at the final hearing.
On June 12, 2024, a document titled "Walmart Acceptance of Certain Stipulations" was
filed along with the Stipulations previously agreed to by FPL and OPC. Consistent with the
representations at the Prehearing Conference, the stated purpose of the Acceptance is to evidence
Walmart 's ··acceptance and agreement with paragraphs 1-4 and 	12-13 of the Stipulations.''
Walmart further represented in the Acceptance that it does not object to and takes no position
regarding paragraphs 5-11 and 14-16 of the Stipulations. A copy of Walmart 's Acceptance is
appended to this Order as Attachment B.
On June 18 , 2024, we conducted an administrative hearing for this docket. The prefiled
testimony of FPL Witnesses .Tarro , Ferguson, De Lucenay. and Cohen, and PSC staff Witness
Ngo were admitted into the record. Exhibits 1-24 on the Comprehensive Exhibit list were also
admitted into the record without objection. As set forth below , at the June 18, 2024 hearing, we

ORDER NO. PSC-2024-0227-S-EI
DOCKET NO. 20230017-EI
PAGE4
voted to approve all of the stipulations set forth below, thereby resolving all outstanding issues
for each party in this docket.
We have jurisdiction pursuant to Sections 366.04, 366.05, 366.06 and 366.076, Florida
Statutes.
Decision
The parties proposed Type 1 or Type 2 stipulations to resolve all issues. A Type 1
stipulation occurs on an issue where the utility and intervenors agree on the resolution of the
issue. 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.
Paragraphs 1-4 and 12-13 of the Stipulations are subject to Type 1 stipulations among all
three parties. Paragraphs 5-11 and 14-16 of the Stipulations are subject to Type 2 stipulations.
All Stipulations are supported by the record and consistent with controlling law. The stipulations
proposed by the parties are the result of negotiations between FPL, OPC. and Walmart and
benefit FPL's customers by establishing an ongoing, continuous storm restoration process
improvement plan that results in current and future customers only paying for prudent, cost-
effective storm restoration costs incuJTed due to extreme weather events. We find that approval
of the stipulations is in the public interest and supported by the evidence entered at the hearing.
Accordingly, we approve the Stipulations as listed in Attachment A and B to this Order as a full
and complete resolution of this proceeding.
Consistent with the Stipulations, we grant our staff authority to review and approve
FPL's true-up compliance filing and revised tariff, and to administratively close this docket once
these tasks are complete. We further grant our staff the administrative authority to cancel the
tariff upon completion of the true-up process.
Based on the foregoing, it is
ORDERED by the Florida Public Service Commission that the stipulations, attached
hereto as Attachment A and B, and all findings and rulings herein are hereby approved. It is
further
ORDERED that each party to this docket shall abide by the stipulations, findings, and
rulings herein which are applicable to it. lt is further
ORDERED 	that 	Commission 	staff 	shall 	administratively 	cancel 	the 	tariff 	upon
confirmation that the true-up process is complete. It is further
ORDERED that this docket shall be closed administratively once the true-up comp li ance
filing and revised tariff have been received, reviewed, and approved by Commission staff.

ORDER NO. PSC-2024-0227-S-EI
DOCKET NO.20230017-EI
PAGES
By ORDER of the Florida Public Service Commission this 8th day of July. 2024.
DD
Commissi
Florida P 	lie Service Commission
2540 Shumard Oak Boulevard
Tallahassee, Florida 32399
(850) 413-6770
www.floridapsc.com
Copies furnished: 	A copy of this document is
provided to the parties of record at the time of
issuance and, if applicable, interested persons.
NOTICE OF FURTHER PROCEEDINGS OR JUDICIAL REVIEW
The Florida Public Service Commission is required by Section 	120.569( 1), Florida
Statutes, to notify pa11ies 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 pm1y adversely affected by the Commission's final action in this matter may request:
I) 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 fonn prescribed by Rule 25-22.060, Florida
Administrative Code: or 2) judicial review by the Florida Supreme Court in the case of a11
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 filing 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 form specified in Rule
9.900(a), Florida Rules of Appellate Procedure.

ORDER NO. PSC-2024-0227-S- EI 	Attachment A
DOCKET NO . 202300 17-EI
PAGE6
In re: In re: Petition for limited proceeding for
n:covcry ofincre1m:ntal stom1 restoration costs 	Docket No 20:230017-EI
relutcd to I lurricancs Ian and NicClle, by
Florida Power & Light Compa_n_,,_______.
STIPULATIONS
Florida Power & Light Company ("FPL" or the "Company.. ) and the Office of Public
Counsel (''OPC") (hcrcinaficr referred to individually as '·Pany.. or collectively as "Parties") herby
agree to submit for approval by the Florida Public Service Commission (''Commission") the
following stipulations to fully resolve th e Parties· respective issues in Docket No.20230017-EI on
the following tcmls and conditions:
I. 	fhc Parties stipulnte to having all pre-filed testimony and exhibits filed in this docket
entered into the record; spccilically the following:
a. 	The dirci.:t 1estimo ny of FPL witnesses Michael Jarro, along with Exhib1L~ MJ-
I through ~IJ-6;
b. ·1 he din~ct testimony offPL witness t\mber De Lucenay;
c. The direct testimony of FPL witness Kci1h Fergus(>n. along with Exhibits Kr-
I through KF-5;
d. ·n 1c direct 1estimony of Tiffany C. Cohen. along with Exhibit TCC-1; and
e. The direct testimony of Staff witness Yen Ngo, along with lxhibit YN-1.
2. 	The Parties agree to waive cross-examination of all witnesses and. upon Commission
approval. have no objecti on witnesses hcing excused from appearing at the hearing.
3. 	The Parties stipulate to having all FPL's responses to Staffs data requests entered into the
record.

ORDER NO. PSC-2024-0227-S-EJ
DOCKET NO. 20230017- El
PAG E 7
Att a chm e nt A
4. 	The Parties stipulate to having all FPL responses to interrogatories and request:; tor
production of documents entered into the record.
5. 	The Parties stipulate and agree that the Incremental Cost and Capitalization Approach
prescribed in Rule 25-6.0143, Florida Administrative Code, is applicable lo determining
the reasonahle and prudent amounts to be included in FPL 's final Recoverable Stom1
Amount 1 to be approved in this docket.
6. 	The Panics stipulate and agree that the record supports a Commission finding that U1c tenns
of the Stipulation and Settlement ofFPI. 's I lurricanc lmrn storm restoration CMls approved
b) Commission Order No. PSC-20 I9-0319-S-EI in Docket No. 20180049-EI ("Irma
Sc11lemen1") have been satisfied and met.
7. 	The Parties stipulate and agrct: thm the record suppons a Commission finding that the
actual retail incremental stom1 restoration costs of S1,023.393 million associated with
Hurricane Ian. us shown in Exhibit Kf-1, were reasonable and prudent.
8. 	The Parties stipulate and agree that the record supports a Commission finding that the
actual retail incremental slonn restoration costs of S 118.4'.!J million associated with
I lurricanc Nicole, as shown in Exhibit KF-2, were reasonabk and prudent.
9. 	The Parties stipulate and agree that the record supports a Commission linding U1at FPL 's
iotnl Recoverable Storm Amount is $1,298.027 million. as shown on Exhibit KF-3.
1 The Recoverable Stonn Amount, upon whith lhc Consolidated Interim Storm Restoration Recovery Chnr&c
("Interim Stonn Charge") was based, includes: (i) the actual retail incr.:mcntol stom1 restoration co~ts associated with
llun-icanc Ian: (ii) the actual retail iucrcmcnLal ~tom1 rc~toration com associated with I lurricanc Nicole; (iii) the
rcplcnishmenl ofFPl.'s storm reserve in accordauce with Paragraph 10 oflhc Stipu lation ,ind Scukmcnl 3pprovcd in
Order No PSC-2021-0446-S-EI; and (iv) the remaining mnounts to be collected for Hurricanes Michael, Sally, and
/eta, which have been previously approved by the Com1111ss1on Order Nos. PSC-2020-0)49-S-1!1 and PSC-2022-
0406-FOF-F.1.
2

ORDER NO. PSC-2024-0227-S-EI
DOCKET NO. 20230017-Ef
PAGES
Attachment A
I 0. 	The Parties stipuhite and agree that the record supports a Commission finding that FPL 's
final Recoverable Storm Amount was calculated in compliance with the Incremental Cost
and Capitalization Approach prescribed in Ruic 25-6.0143, f-lorida Administrative Code.
11. 	The Parties stipulate and agree that lhe record supports a Commission finding that the
actual revenues collected under 1he Interim Storm Charge was $1,313.764 million, as
shown on Exhibit TCC-1.
12. 	The Parties stipulate and agree that the record suppo11s a Commission finding that the one-
time tnic-up methodology for the actual revenues collected under the Interim Storm
Charge, as proposed in the direct testimon} off'PL witness Tiffany C. Cohen, is reasonable
and appropriate. Specifically, the Parties agree that once the Commission has made its
linal dctcm1inmion of the fina l actual Recoverable Stom1 Amount in this proceeding, FPL
shall compare the approved Recoverable Swrm Amount to the actual total revenues
collected from the Interim Stom1 Charge, as shown on Exhibit TCC-1. in order 10
determine any excess or shortfall in recovery. The Parties also agree that interest shall be
applied 10 any excess or shortfall at the thirty-day commercial paper rate consistent with
Ruic 25-6.109, rlorida Administraiiw Code.
13. 	The Purtics stipulate and agree that the record supports a Commission finding that FPL's
proposal to make a compliance filing with 1hc Commission that sets forth the calculation
of the appropriate true-up rates 10 apply to customer bills for a one-month period in order
to refund the excess or collect the shortfall is reasonable and appropriate. Specifically. the
Parties agree that the true-up rates shall be designed in a manner that is consistent with the
cost allocation used for the Interim Storm Charge rates filed and approved in Order Nos.
PSC-2023-0110-PCO-EI and PSC-2023-0354-PCO-EI. and that FPL shall apply the true-
3

ORDER NO. PSC-2024-0227-S-EI
DOCKET NO. 20230017-EI
PAG E 9
Attachment A
up rates through the non-fuel energy charge on customers' bills starting on Cycle Day I of
the first month that is more than thirty days after Commission approval.
14 . 	The Parties stipulate and agree that tl1e Commission should authorize its Staff to review
and verify the final lnte-up rates contained in FPL's proposed compliance filing referenced
in Paragraph 13 above.
15. 	The Parties stipulate and agree that the record supports a Commission finding that FPL 's
proposal to notify customers or the change in their rates. due to the one-time true-up. at
least thirty days in advance in the form of a message on their bill, with more detailed
information regarding the revised Interim Storm Charge tariff provided on FPL's website,
\\'\\" .I· Pl ..:nml rifu:J! . is reasonable and appropriate.
16. 	The Panics stipulate and agree that FPL will continue to implement and upJate the process
provisions set forth in Sections 5 through 17 of the lm1a Settlement.

O
RD
ER
NO
. P
SC
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202
4-
022 7
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DOCK
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202300 17-EI
PAGE IO
A
tt
ac hm e nt A
In
Witness Whereof, ~Pl and OPC evidence their acceptance and agreement with all provisions
of
these Stipulations
by
their signature.
FLORfD
A Pf VER & LIGH T COMPA
NJ
'
//,~'	
By·
__
_,__
____ ___
_
John
T:Durnc11
Vice President
and
General Counsel
Flprida Power & Light Compnny
7/JO
Universe Boulevard
Juno Beach,
r-L
33408-0420
5
OF
FI
CE
OF
PU
BLI
C COUNSEL
a,Wk~~
Walt 1 m:rwciler
Public Counsel
Office
of
Public CouMel
111
West \-1adison Street,
Room 812
Tallahassee, FL 32399-1400

ORDER NO. PSC-2024-0227-S-EI 	Attachment B
DOCKET NO. 20230017-EI
PAG E 11
In re: In re : Petition for limited proceeding for
recoveryofincremental stonn restoration costs 	Docket No. 202300 17-EI
related to Hurricanes Jan and Nicole, by
Florida Power & Li ht Co m an
WA LMAR T ACCEPTANCE OF CE RT AIN STIPULATIONS
Without waiving its right to challenge rate design or cost allocation in future Dockets,
Walmart Inc. (''Walmart") hereby agrees to join paragraphs 1-4 and I2- 13 of the Sbpulations
between Florida Power & Light Company ("FPL'') and the Oflice of Public Co unsel ("OPC'')
originally pro\~ded as Attachment A to the Prehearing Statement submitted by FPL on JW1e 6,
2024 (hereinafter, the "Stipulations''). \Valma.rt herein affirms 11 takes no position and has no
objections to the remaining paragraphs of the Stipulations. \Valma.rt submits that, if approved by
the Florida Public Service Commission ('·Commission''), the Stipulations will fully resolve the
parties' respective issues in Docket No.20230017-EI.
In Witness Whereot: Walmart evidences its acceptance and agreement wiU1 paragraphs l-
4 and 12-13 of the Stipttlations by signature i ts COW1Sel, and takes no position on paragraphs 5-11
and 14-16 of the Stipulations.
WALMARTINC.
.. 	J
?511~	By _ ~=-----..::.-----
Stepharue U. Eaton
Florida Bar No. : 165610
SPILMAN THOMAS & BATTLE, PLL C
110 Oakwood Drive, Strite 500
Winston-Salem, NC 27 103
Counsel/or Walmarr Inc.