Florida Public Service Commission native order document 10261-2024

OCR transcription for search; preserved printed pages are authoritative

FILED 12/17/2024
DOCUMENT NO. 10261-2024
FPSC - COMMISSION CLERK

BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION

In re: Petition for limited proceeding for DOCKET NO. 20240149-EI
recovery of incremental storm restoration costs | ORDER NO, PSC-2024-0503-PCO-EI
related to Hurricanes Debby, Helene, and ISSUED: December 17, 2024

Milton, by Florida Power & Light Company.

The following Commissioners participated in the disposition of this matter:

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

ORDER APPROVING FLORIDA POWER & LIGHT COMPANY’S
INTERIM STORM COST RECOVERY CHARGE

BY THE COMMISSION:
BACKGROUND

On October 29, 2024, Florida Power & Light Company (FPL or Company) filed a
petition for a limited preceding seeking authority to implement an interim storm restoration
recovery charge to recover $1.2 billion for the incremental restoration costs related to Hurricanes
Debby, Helene, and Milton, as well as the replenishment of its retail storm reserve. Included in
the $1.2 billion is interest charged on the unrecovered balance of storm restoration costs resulting
from Hurricanes Debby, Helene, and Milton (collectively, “the Storms”). Pursuant to the 2021
Stipulation and Settlement Agreement approved by us in Order No. PSC-2021-0446-S-EI, the
recovery of storm costs from customers will begin, on an interim basis, 60 days after the filing of
a cost recovery petition and tariff with the Commission.! FPL has requested a 12-month
recovery period, applied to all bills from January 1, 2025, through December 31, 2025.

We have jurisdiction over this matter pursuant to Sections 366.04, 366.05, 366.06, and
366.076, Florida Statutes.

DECISION

Interim storm restoration recovery charge

As stated above, FPL filed a petition for a limited proceeding seeking authority to
implement an interim storm restoration charge to recover an estimated total of $1.2 billion for
incremental storm restoration costs for the Storms and to replenish its storm reserve. In its
petition, FPL requested to replenish the storm reserve to $150 million.

' Order No. PSC-2021-0446-S-EL, issued December 2, 2021, in Docket No. 20210015-EI, Jn re: Petition for rate
increase by Florida Power and Light Company.

ORDER NO. PSC-2024-0503-PCO-EI
DOCKET NO. 20240149-EI
PAGE 2
The petition was filed pursuant to the provisions of the 2021 Settlement approved by us
in Order Nos. PSC-2021-0446-S-EI and PSC-2021-0446A-S-EI. Pursuant to paragraph 10 of the
2021 Settlement, FPL can begin recovery of storm costs 60 days following the filing of a petition
for recovery.
In its petition, FPL stated that it had incurred approximate recoverable costs in the
amount of $113.5 million for Hurricane Debby, $157.8 million for Hurricane Helene, and $811.1
million for Hurricane Milton. 	The Company further stated that all amounts were calculated in
accordance with the Incremental Cost and Capitalization Approach methodology prescribed in
Rule 25-6.0143, Florida Administrative Code.
The approval of an interim storm restoration recovery charge is preliminary in nature and
is subject to refund pending further review once the total actual storm restoration costs are
known. After the actual costs are reviewed for prudence and reasonableness, and are compared
to the actual amount recovered through the interim storm restoration recovery charge, a
determination will be made whether any over/under recovery has occurred. 	The disposition of
any over or under recovery, and associated interest, will be considered by us at a later date.
Based on a review of the information provided by FPL in its petition, we hereby
authorize the Company to implement an interim storm restoration recovery charge subject to
refund. Once the total actual storm costs are known, FPL shall be required to file documentation
of the storm costs for our review and true-up of any excess or shortfall.
Corporate undertaking
We find that all funds collected shall be subject to refund shall be secured by a corporate
undertaking. 	The criteria for a corporate undertaking include sufficient liquidity, ownership
equity, profitability, and interest coverage to guarantee any potential refund. FPL requested a 12-
month collection period from January 2025 through December 2025 for the Interim Storm
Recovery charges of approximately $1.2 billion related to the Storms. We reviewed FPL’s three
most recent annual reports filed with this Commission (2023, 2022, and 2021) to determine if the
Company can support a corporate undertaking to guarantee the funds collected for recovery of
incremental storm restoration costs related to all the weather events. FPL’s financial information
demonstrates the Company has acceptable levels of liquidity, ownership equity, profitability, and
interest coverage to support a potential refund of $1.2 billion. 	Moreover, it is improbable FPL
will be required to refund the entire requested amount.
FPL has adequate resources to support a corporate undertaking in the amount requested.
Based on our analysis, we find that a corporate undertaking of $1.2 billion is acceptable. 	This
brief financial analysis is only appropriate for deciding if the Company can support a corporate
undertaking in the amount proposed and should not be considered a finding regarding our
position on other issues in this proceeding.
Interim storm restoration recovery charge
FPL calculated the interim storm surcharge for the 12-month period of January 1, 2025
through December 31, 2025, subject to true-up once the final total recoverable storm amount is
known and determined. 	FPL states that the updated surcharges are allocated to the rate classes
consistent with the rate design approved in the 2021 Settlement. 	We have reviewed the
allocation to rate classes and find that the allocations provided in Appendix F to FPL’s petition

ORDER NO. PSC-2024-0503-PCO-EI
DOCKET NO. 20240149-EI
PAGE 3
are consistent with those approved in FPL’s most recent rate case. 	Furthermore, we have
reviewed the derivation of the surcharges provided in Appendix F to the petition and find that
the surcharges have been calculated correctly, using projected kilowatt hour (kWh) sales for
January through December 2025.
The proposed interim storm restoration surcharges are shown on Fifth Revised Tariff
Sheet No. 8.030.7, provided in Appendix G to FPL’s petition. 	For residential customers, the
proposed surcharge would be 1.202 cents per kWh, which equates to a total surcharge of $12.02
for a 1,000 kWh monthly bill. The storm cost recovery surcharge would be included in the non-
fuel energy charge on customer bills.
Paragraph 10(b) of the 2021 Settlement states that FPL may petition us for recovery of
storm costs at a rate beyond $4.00 on a 1,000 kWh residential bill if FPL incurs in excess of
$800 million of storm recovery costs. FPL has requested to recover $1.2 billion in incremental
storm restoration costs.
We hereby approve FPL’s proposed interim storm restoration recovery tariff and
associated surcharges, as shown in Attachment A to this order. The tariff shall become effective
the first billing cycle of January 2025. The interim storm restoration surcharges shall be subject
to final true-up once the total actual storm costs are known.
Based on the foregoing, it is
ORDERED by the Florida Public Service Commission that Florida Power & Light
Company’s request to implement an interim storm restoration recovery charge subject to refund
is hereby granted. It is further
ORDERED that Florida Power & Light Company’s interim storm restoration recovery
tariff, found in Attachment A hereto, is approved effective the first billing cycle of January 2025.
The interim storm restoration surcharges shall be subject to final true-up once the total actual
storm costs are known. It is further
ORDERED that Florida Power & Light Company shall post a corporate undertaking in
the amount of $1.2 billion. It is further
ORDERED that this docket shall remain open pending final reconciliation of actual
recoverable storm costs with the amount collected pursuant to the interim storm restoration
recovery charge and the calculation of a refund or additional charge, if warranted.

ORDER NO. PS C-2024-0503-PCO-El
DOCKET NO. 20240149- EI
PAGE4
By ORDER of the Florida Public Service Commission this 17th day of December, 2024.
SBr
Florida Public Service Commission
2540 Shumard Oak Boulevard
Tallahassee, Florida 32399
(850) 413-6770
www.floridapsc.com
Copies furnished: 	A copy of this document is
provided to the parties of record at the time of
issuance and, if applicable, interested persons.
NOTICE OF FURTHER PROCEEDINGS OR JUDICIAL REVIEW
The Florida Public Service Commission is required 	by Section 	120.569( 1), FJorida
Statutes, to notify parties of any administrative hearing or judicial review of Commission orders
that is available under Sections 120.57 or 120.68, Florida Statutes, as well as the procedures and
time limits that apply. 	This notice should not be construed to mean all requests for an
administrative hearing or judicial review will be granted or result in the re li ef sought.
Mediation may be available on a case-by-case basis. 	If mediation is conducted, it does
not affect a substantiaJly interested person's right to a hearing.
Any 	party 	adversely 	affected 	by 	this 	order, 	which 	is 	preliminary, 	proceduraJ 	or
intermediate in nature, may request: (1) reconsideration within IO days pursuant to Rule 25-
22.0376, Florida Administrative Code; or (2) judicial review by the Florida Supreme Court, in
the case of an electric. gas or teJephone utility, or the First District Court of Appeal, in the case
of a water or wastewater utility. 	A motion for reconsideration shall be filed with the Office of
Commission Clerk, in the form prescribed by Rule 25-22.0376, Florida Administrative Code.
Judicial review of a preliminary, procedural or intermediate ruling or order is available if re view
of the final action will not provide an adequate remedy. Such review may be requested from the
appropriate cou1i, as described above, pursuant to Rule 9.100, Florida Rules of Appellate
Procedure.

ORDER NO. PSC-2024-0503-PCO-EI DOCKET NO. 20240149-EI
PAGE 5
ATTACHMENT A
FLORIDA POWER & LIGHT COMPANY
Fourth-Fifth_Revised Sheet No. 8.030.7 Cancels Fourth Third Revised Sheet No.8.030.7
(Continued from Sheet No. 8.030.3)
2025 INTERIM STORM RESTORATION RECOVERY
APPLICATION:
The 2025 Interim Storm Restoration Recovery Surcharge is designed to recover incremental storm-related costs incurred by the Company related to Hurricanes Debby. Helene, and Milton. The factor is applicable to the Energy
Charge under FPL's various rate schedules.
Rate Schedule
€/kwh
ALL KWH - RS-1. RTR-1
1.202
GS-1. GST-1
1.118
GSD-1. GSD-1EV. GSDT-1.
0.545
HLET-1. SDTR-1
GSLD-1. GSLD-1EV. GSLDT-1.
CS-1. CST-1. HLFT-2. SDTR-2
GSLD-2. GSLDT-2. CS-2. CST-2.
0.397
GSLD-3. GSLDT-3.
0.024
OL-1
5.035
OS-2
1.436
SL-1. PL-1. LT-1. OS I/II
2.072
SL-1M
1.089
SL-2
0.598
SL-2M
2.800
SST-1(T). ISST-1(T)
0.021
SST-1(1). SST-1(D2), SST-1(D3). ISST-1(D)
2.552
CILC-1(D)
0.394
CILC-1(G)
0.513
CILC-1(T)
0.024
MET
0.540
GSCU-1
2.509
RESERVED FOR FUTURE USE
(Continued on Sheet No. 8.031)
Issued by: Tiffany Cohen, VP Financial Planning and Rate Strategy Effective: September 1, 2024
0.522
HLFT-3. SDTR-3
CS-3. CST-3