Florida Public Service Commission native order document 03728-2023

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FILED 6/21/2023
DOCUMENT NO. 03728-2023
FPSC - COMMISSION CLERK

BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION

In re: Petition for approval of renewable DOCKET NO. 20230046-EQ
energy tariff and standard offer contract, by ORDER NO. PSC-2023-0180-PAA-EQ
Florida Power & Light Company. ISSUED: June 21, 2023

The following Commissioners participated in the disposition of this matter:

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

NOTICE OF PROPOSED AGENCY ACTION
ORDER FLORIDA POWER & LIGHT COMPANY’S
AMENDED STANDARD OFFER CONTRACT AND RATE SCHEDULE

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 and
small qualifying facilities. Commission Rules 25-17.200 through 25-17.310, F.A.C., implement
the statute and require each IOU to file with the Commission, 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 April 3, 2023,
Florida Power & Light Company (FPL) filed a petition for approval of its amended standard
offer contract based on its 2023 TYSP. We have jurisdiction over this amended standard offer
contract pursuant to Sections 366.04 through 366.055, and 366.91, F.S.

Review and Decision
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
renewable generating facilities (RF) and small qualifying facilities (QF) with design capacities of

ORDER NO. PSC-2023-0180-PAA-EQ
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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. While FPL’s 2023 TYSP does not
feature an avoidable fossil-fueled generating unit or planned purchases that could be deferred
during the planning period, FPL has identified a 1,991 megawatt (MW) combined cycle with a
projected in-service date of June 1, 2033, as the next avoidable planned generating unit based on
its current planning process. In order to comply with the rule, we have previously approved using
a unit outside of the TYSP planning period as the avoided unit for standard offer contract
purposes.1
Under FPL’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, and
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, we require 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, 2033), and thereafter, 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 FPL’s estimates of the annual payments for each payment option
available under the revised standard offer contract to an operator with a 50 MW facility
operating at a capacity factor of 94 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, 2033) and continue for 10 years,
while early and early levelized capacity payments begin 4 years prior to the in-service date, or
2029 for this example.
1See Order No. PSC-2018-0316-PAA-EQ, issued June 20, 2018, in Docket No. 20180083-EQ, In re: Petition for
approval of renewable energy tariff and standard offer contract, by Florida Power & Light Company; Order No.
PSC-2020-0212-PAA-EQ, issued June 26, 2020, in Docket No. 20200114-EQ, In re: Florida Power & Light
Company’s Petition for Approval of a Renewable Energy Tariff and Standard Offer Contract; Order No. PSC-2020-
0213-PAA-EQ, issued June 26, 2020, in Docket No. 20200115-EQ, In re: Petition for approval of new standard
offer for purchase of firm capacity and energy from renewable energy facilities or small qualifying facilities and
rate schedule QS-2, by Gulf Power Company; and Order No. PSC-2022-0203-PAA-EQ, issued June 9, 2022, in
Docket No. 20220072-EQ, In re: Petition for approval of revised standard offer contract and a revised
accompanying rate schedule QS-2, by Florida Power & Light Company.

ORDER NO. PSC-2023-0180-PAA-EQ
DOCKET NO. 20230046-EQ
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Table 0 - Estimated Annual Payments to a 50 MW Renewable Facility
(94% Capacity Factor)
Year
Energy
Payment
Capacity Payment
Normal 	Levelized 	Early Early
Levelized
$(000) 	$(000) 	$(000) 	$(000) 	$(000)
2024 	16,263 	- 	- 	- 	-
2025 	14,648 	- 	- 	- 	-
2026 	14,581 	- 	- 	- 	-
2027 	14,793 	- 	- 	- 	-
2028 	12,878 	- 	- 	- 	-
2029 	11,500 	- 	- 	1,620 	1,812
2030 	11,465 	- 	- 	2,811 	3,106
2031 	11,752 	- 	- 	2,870 	3,106
2032 	10,675 	- 	- 	2,929 	3,106
2033 	11,553 	2,792 	3,029 	2,990 	3,106
2034 	11,858 	4,844 	5,192 	3,052 	3,106
2035 	10,887 	4,945 	5,192 	3,116 	3,106
2036 	12,682 	5,048 	5,192 	3,181 	3,106
2037 	13,318 	5,153 	5,192 	3,247 	3,106
2038 	14,875 	5,260 	5,192 	3,314 	3,106
2039 	14,581 	5,369 	5,192 	3,383 	3,106
2040 	15,128 	5,481 	5,192 	3,454 	3,106
2041 	15,149 	5,595 	5,192 	3,526 	3,106
2042 	14,788 	5,712 	5,192 	3,599 	3,106
2043 	15,608 	2,400 	2,163 	1,512 	1,294
Total 	258,385 	52,599 	51,920 	44,605 	43,485
Total (NPV) 	129,412 	16,890 	16,890 	16,890 	16,890
Source: FPL’s Response to Staff’s First Data Request2
FPL’s standard offer contract, in type-and-strike format, is included as Attachment A to
this Order. The changes made to FPL’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.
The provisions of FPL’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.
2 Document No. 03056-2023, filed May 2, 2023, in Docket No. 20230046-EQ.

ORDER NO. PSC-2023-0180-PAA-EQ
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Based on the foregoing, it is

ORDERED by the Florida Public Service Commission that the amended standard offer
contract and associated rate schedule QS-2 filed by Florida Power & Light Company are hereby
approved. It is further

ORDERED that the provisions of the Order, issued as proposed agency action, shall
become final and effective upon the issuance of a Consummating Order unless an appropriate
petition, in the form provided by Rule 28-106.201, Florida Administrative Code, is received by
the Commission Clerk, 2540 Shumard Oak Boulevard, Tallahassee, Florida 32399-0850, by the
close of business on the date set forth in the “Notice of Further Proceedings” attached hereto.
Potential signatories should be aware that, if a timely protest is filed, Florida Power & Light
Company’s standard offer contract may subsequently be revised. It is further

ORDERED that in the event this Order becomes final, this docket shall be closed.

By ORDER of the Florida Public Service Commission this 21st day of June, 2023.

ADAM J/TEITZ!
Commissior
Florida Public Sefvice 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.

JDI

ORDER NO. PSC-2023-0180-PAA-EQ
DOCKET NO. 20230046-EQ
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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 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.
As identified in the body of this order, our action 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, at 2540 Shumard Oak
Boulevard, Tallahassee, Florida 32399-0850, by the close of business on July 12, 2023. If such a
petition is filed, 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. 	In the absence of such a
petition, this order shall become effective and final upon the issuance of a Consummating Order.
Any objection or protest filed in this docket before the issuance date of this order is
considered abandoned unless it satisfies the foregoing conditions and is renewed within the
specified protest period.
Any party adversely affected by the Commission's final action in this matter may request:
(1) reconsideration of the decision by filing a motion for reconsideration with the Office of
Commission Clerk, within fifteen (15) days of the issuance of this order in the form prescribed
by Rule 25-22.060, Florida Administrative Code; or (2) judicial review by the Florida Supreme
Court in the case of an electric, gas or telephone utility or the First District Court of Appeal in
the case of a water 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.

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Fifteenth Sixteenth Revised Sheet No. 9.030
FLORIDA POWER & LIGHTCOMPANY Cancels Rourteenth-Fifteenth Revised Sheet No. 9.030

STANDARD OFFER CONTRACT FOR THE PURCHASEOF
CAPACITY AND ENERGY FROM A RENEWABLE ENERGY FACILITY OR AQUALIFYING
FACILITY WITH A DESIGN CAPACITY OF 100 KW OR LESS 26322033 AVOIDEDUNIT)

THIS STANDARD OFFER CONTRACT (the “Contract”) is made and entered this day of
. bv and between (herein after “Qualified

by the FPSC.

NOW, THEREFORE, for mutual consideration the Parties agree asfollows:

(Continued on Sheet No. 9.031)

Issued by: Tiffany Cohen, § sExecutive Director, Rate
Development & Strategy

Effective: dane+2622

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Maximum Capability AW)

Minimum Load

Peaking Capability

Net Output (KW)

Power Factor (“%)

Operating Voltage (kV)

Peak Internal LoadKW

The following sections (a) through (e) are applicable to Renewable Energy Facilities “REFs”) and section (e) is only
applicable to Qualifying Facilities with a design capacity of 100 KW or less:

(a) If the QS is a REF, the QS represents and warrants that (1) the sole source(s) of fuel or power used by the Facility
to produce energy for sale to FPL during the term of this Contract shall be such sources as are defined in and

t4ae Aer RATAN NS PAN TH tt om. MAA 1 AP Am Adar 1 AN

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Seventeenth Lightecenth Revised Sheet No. 9.032
FLORIDA POWER & LIGHTCOMPANY CancelsSteteenthSeventeenth Revised Sheet No. 9.032

(Continued from Sheet No, 9.031)

(c) Ifthe QS is a REF, the QS shall, on an annual basis and within thirty (30) days after the anmiversary date of this Contract
and on an annual basis thereafter for the term of this Contract, deliver to FPL a report certified by an officer of the QS:
(i) stating the type and amount of each source of fuel or power used by the OS to produce energy during the twelve-
month period prior to the anniversary date (the “Contract Year”); and (ii) verifying that one hundred percent
(100%) of all energy sold by the QS to FPL during the Contract Year complies with Sections l(a) and (b) of this
Contract.

“Effective Date”) and shall have the termination date stated in Appendix E, unless terminated earlier in accordance with the provisions
hereof Notwithstanding the foregoing, if the Capacity Delivery Date (as defined in Section 5.5) of the Facility is not accomplished by the
in-service date of the avoided unit, or such later date as may be permitted by FPL pursuant to Section 5 of this Contract, FPL will be
permitted to termunate this Contract consistent with the terms herein without further obligations, duties or liability to the Qs.

3 Minimum Specifications

Following are the minimum specifications pertaining to thisContract:

L. The avoided unit (“Avoided Unit”) options on which this Contract is based are detailed in Appendix A.
2. This offer shall expire on April 1, 26232024.
3. The date by which firm capacity and energy deliveries from the QS to FPL shall commence is the in-service date of the

Avoided Unit (or such later date as may be permitted by FPL pursuant to Section 5 of this contract) unless the QS chooses a capacity
payment option that provides for early capacity payments pursuant to the terms of thisContract.

4, The period of time over which finn capacity and energy shall be delivered from the OS to FPL is as specified in
Appendix E; provided, such period shall be no less than a minimum of ten (10) years after the in-service date of the Avoided Unit.

5. The following are the minimum performance standards for the delivery of firm capacity and energy by the QS to qualify
for full capacity payments under this Contract:

On Peak * All Hours
Availability 94.0% 94.0%
“O8 Performance and On Peak hours shall be as measured and/or described in FPL’s Rate Schedule Q8-2 attached hereto as AppendixA

(Continued on Sheet No. 9.032.1)

Issued by: Tiffany Cohen, SeniorDirector, Regulatory Rates Cost-of Service and Ssstems Executive Director, Rate

Development & Strategy
Effective: dune 2022

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FLORIDA POWER & LIGHT COMPANY Original Sheet No. 9.033.1

(Continue from Sheet No. 9.033)

55.1 A certificate addressed to FPL from a Licensed Professional Engineer (reasonably acceptable to
FPL in all respects) stating: (a) the nameplate capacity rating of the Facility at the anticipated time of commercial
operation, which must be at least 94% of the Expected Nameplate Capacity Rating; (b) that the Facility is able to
generate electric energy reliably in amounts expected by this Agreement and in accordance with all other terms and
conditions hereof; (c) that Start-Up Testing of the Facility has been completed; and (d) that, pursuant to Section 8.4,
all system protection and control and Automatic Generation Control devices are installed and operational.

ea ey ep pe neg ete ey SC tN Sete RRR Re Cte at Re ee ne Re gE te ey Cee eee aay cE anree toned ate

mortgages, deeds of trust, and other writings described in Section 9.7.

5.5.5 FPL has received the Completion/Performance Security ((a) through (e), the “Commercial Operation
Conditions”).

FPL shall have ten (10) Business Days after receipt either to confirm to QS that all of the Delivery Date Conditions
have been satisfied or have occurred, or to state with specificity what FPL reasonably believes has not been
satisfied.

5.6 The QS shall be entitled to receive capacity payments beginning on the Capacity Delivery Date, provided,
the Capacity Delivery Date occurs on or before the in-service date of the Avoided Unit (or such later date permitted
by FPL pursuant to the following sentence). If the Capacity Delivery Date does not occur on or before the
Guaranteed Capacity Delivery Date, FPL shall be entitled to the Completion/Performance Security (as set forth in
Section 9) in full, and in addition, has the right but not the obligation to allow the QS up to an additional five (5)
months to achieve the Capacity Delivery Date. If the QS fails to achieve the Capacity Delivery Date either by (a)

aon aww +N 1.4, bea eT mr 4 o4td

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WU A MEL Pee Up Ua Qe py ee ee ke a a take

capacity and energy to FPL. Once elected by the QS, the capacity payment option cannot be changed daring the term of this Contract.

7.3 Payments

Payments due the QS will be made monthly and normally by the twentieth business day following the end of the billing period. A
statement of the kilowatt-hours sold by the QS and the applicable avoided energy rate at which payments are being made shall
accompany the payment to the QS.

(Continued on Sheet No. 9.035)

Issued by: Tiffany Cohen, Director, Rates and Tariffs
Effective: June 9, 2020

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First Revised Sheet No. 9.038
FLORIDA POWER & LIGHT COMPANY Cancels Original Sheet No. 9.038

(Continued from Sheet No. 9.037)

97 In lieu of any interest, dividends or other amounts paid or deemed to have been paid with respect to Cash Collateral held
by FPL (all of which may be retained by FPL), FPL will transfer to the QS on a monthly basis the Interest Amount, as calculated by FPL.

“Interest Amount” means, with respect to each monthly period, the aggregate sum of the amounts of interest calculated for each day
in that monthly period on the principal amount of Cash Collateral held by FPL on that day, determined by FPL for each such day as
follows:

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Fourth Revised Sheet No. 9.040
FLORIDA POWER & LIGHT COMPANY Cancels Third Revised Sheet No. 9.040

(Continued from Sheet No. 9.039)

12. Default

Notwithstanding the occurrence of any Force Majeure as described in Section 16, each of the following shall constitute an Event of
Default:

12.1 The QS fails to meet the applicable requirements specified in Section 1 of this Contract.;

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PAGE 19

MULIIPLO UR CUVINSODOYULIN LIAL VDAMAULS CUININDUIDY WII UR ROOULIUVO TRUM PORPURIVAINGCDE UN INUINTTOE RE URVAING DE
OF THIS CONTRACT, OR ANY ACTIONS UNDERTAKEN IN CONNECTION WITH OR RELATED TO THIS CONTRACT, INCLUDING
WITHOUT LIMITATION, ANY SUCH DAMAGES WHICH ARE BASED UPON CAUSES OF ACTION FOR BREACH OF CONTRACT,
TORT (INCLUDING NEGLIGENCE AND MISREPRESENTATION), BREACH OF WARRANTY, STRICT LIABILITY, STATUTE,
OPERATION OF LAW, UNDER ANY INDEMNITY PROVISION OR ANY OTHER THEORY OF RECOVERY. TO THE EXTENT ANY
DAMAGES REQUIRED TO BE PAID HEREUNDER ARE LIQUIDATED, THE PARTIES ACKNOWLEDGE THAT THE DAMAGES ARE
DIFFICULT OR IMPOSSIBLE TO DETERMINE, THAT OTHERWISE OBTAINING AN ADEQUATE REMEDY IS INCONVENIENT, AND
THAT THE LIQUIDATED DAMAGES CONSTITUTE A REASONABLE APPROXIMATION OF THE ANTICIPATED HARM OR LOSS. IF
NO REMEDY OR MEASURE OF DAMAGES IS EXPRESSLY PROVIDED HEREIN, THE OBLIGOR’S LIABILITY SHALL BE LIMITED TO
DIRECT DAMAGES ONLY, AND SUCH DIRECT DAMAGES SHALL BE THE SOLE AND EXCLUSIVE MEASURE OF DAMAGES AND

(Continued on Sheet No. 9.042)

Issued by: S. E. Romig, Director, Rates and Tariffs
Effective: June 25, 2013

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DULL UAV ALIAULLILY DLL UL VULDULULS Gil Le VCIL UL I7CLQUIL UUCL UD WUILUALL, UUL Ds alu WIS Wo DILL CISL LILY LISyUUAWULDd LU USYCLUp

substitute protection which the Parties in their reasonable judgment deem adequate.

15.4 To the extent that the QS Insurance is on a “claims made” basis, the retroactive date of the policy(es) shall be the effective
date of this Contract or such other date as may be agreed upon to protect the interests of the FPL Entities and the QS Entities. Furthermore, to
the extent the QS Insurance is on a “claims made” basis, the QS’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 QS Insurance is on an “occurrence” basis, such insurance shall be maintained in effect at all times by the QS during the term of
this Contract.

15.5 The QS Insurance shall provide that it may not be cancelled or materially altered without at least thirty (30) calendar days’
written notice to FPL. The QS shall provide FPL with a copy of any material communication or notice related to the QS Insurance within ten

(10) business days of the QS’s receipt or issuance thereof.

15.6 The QS shall be designated as the named insured and FPL shall be designated as an additional named insured under the QS
Insurance. The QS Insurance shall be endorsed to be primary to any coverage maintained by FPL

16. Force Majeure

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cnr meena ger emer ge amen IR RNR EES ES TARE TT AGORA ATEE RIC CORREA YEA PR ARO NENG RET MEO eS Rar

16.7 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
provision of this Contract, upon such cessation or cure, FPL shall have the right to require a Committed Capacity Test to demonstrate the
Facility’s compliance with the requirements of this section 16.7. Any Committed Capacity Test required by FPL under this Section shall be
additional to any Committed Capacity Test under Section 5.3.

16.8 During the occurrence of an event of Force Majeure and a reduction in Committed Capacity under Section 16.4, all Monthly
Capacity Payments shall reflect, pro rata, the reduction in Committed Capacity, and the Monthly Capacity Payments will continue to be
calculated in accordance with the pay-for-performance provisions in Appendix B.

16.9 The QS agrees to be responsible for and pay the costs necessary to reactivate the Facility and/or the interconnection with
FPL’s system if the same is (are) rendered inoperable due to actions of the QS, its agents, or Force Majeure events affecting the QS, the
Facility or the interconnection with FPL. FPL agrees to reactivate, at its own cost, the interconnection with the Facility in circumstances
where any interruptions to such interconnections are caused by FPL or its agents.

17. Representations, Warranties, and Covenants of QS

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OL PCLLULILLLed Dy ULS COMUACL, LIS COMUACL COISULULES WO 5 legdl, Vall GG VINCI OVLIZAUOIL CILLOLCCAVIC AXaLIISt LL Ul ACCOLUdIICG WLUL
the terms hereof, except as such enforceability may be limited by applicable bankruptcy laws from time to time in effect that affect creditors’
tights generally or by general principles of equity (regardless of whether such enforcement is considered in equity or at law).

17.3 Compliance with Laws

The QS has knowledge of all laws and business practices that must be followed in performing its obligations under this Contract.
The QS 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 QS or FPL.

17.4 Governmental Approvals

Except as expressly contemplated herein, neither the execution and delivery by the QS of this Contract, nor the consummation by
the QS of any of the transactions contemplated thereby, requires the consent or approval of, the giving of notice to, the registration with, the
recording or filing of any document with, or the taking of any other action in respect of governmental authority, except in respect of permits
(a) which have already been obtained and are in full force and effect or (b) are not yet required (and with respect to which the QS has no
reason to believe that the same will not be readily obtainable in the ordinary course of business upon due application therefore).

174 Noa Gnite Dracaadinac

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First Revised Sheet No. 9.047
FLORIDA POWER & LIGHT COMPANY Cancels Original Sheet No. 9.047

(Continued from Sheet No. 9.046)

18.9. Waiver of Jury Trial. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY
ARISE UNDER THIS CONTRACT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH
PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT A PARTY MAY HAVE TO A TRIAL BY
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 STICH ATHER PARTV WOT NAT IN THR RVENT OR TITIGATION SEEK TA ENFORCE THE BAREGOING WATVER

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PAGE 26

PLUBRIVA PUWEIK & LIGML CUMPAIN I
WITNESS:

Date.

WITNESS: (QS)

Date.

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PAGE 27

A UII GU HL DUI GY DULLER Ue ty kU Le Gu a Ue ee Ug a ey

F.A.C., and 25-17.200 through 25-17.310 F.A.C and are limited to those Facilities which:
A. Commit to commence deliveries of firm capacity and energy no later than the in-service date of the Avoided
Unit, as detailed in Appendix II, and to continue such deliveries for a period of at least 10 years up to a
maximum of the life of the avoided unit;
B. Are not currently under contract with the Company or with any other entity for the Facility’s output for the

period specified above

(Continued on Sheet No. 10.301)

Issued by: Tiffany Cohen, Senior Director, Regulatory Rates, Cost of Service and Systems
Effective: January 1, 2022

ORDER NO. PSC-2023-0180-PAA-EQ
DOCKET NO. 20230046-EQ

PAGE 28

(Continued on Sheet No. 10.302)

Attachment A
Page 23 of 42

Issued by: S.E. Romig, Director, Rates and Tariffs
Effective: June 25, 2013

ORDER NO. PSC-2023-0180-PAA-EQ Attachment A
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PAGE 29

FLORIDA POWER & LIGHT COMPANY Original Sheet No. 10.302

(Continued from Sheet No. 10.301)

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 Company's Avoided Unit provided; however, that under no circumstances may payments begin before
the QS is delivering firm capacity and energy to the Company pursuant to the terms of the Standard Offer Contract.
When this option is selected, the capacity payments shall be made monthly commencing no earlier than the Capacity
Delivery Date of the QS and calculated using the methodology shown on AppendixI.

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PAGE 31

a anak < saan annel

ESTIMATED AS-AVAILABLE ENERGY COST
As required in Section 25-17.0832, F.A.C. as-available energy cost projections until the in-service date of the avoided unit will
be provided within 30 days of receipt by FPL of a written request for such projections by any interested person.

ESTIMATED UNIT FUEL COST
As required in Section 25-17.0832, F.A.C. the estimated unit fuel costs associated with the Company's Avoided Unit and based

on current estimates of the price of natural gas will be provided within 30 days of a written request for such an estimate.

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PAGE 33

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PAGE 34

FLORIDA POWER & LIGHT COMPANY Original Sheet No. 10.307

(Continued from Sheet No. 10.306)

TERMS OF SERVICE

(1) _ It shall be the QS's responsibility to inform the Company of any change in its electric generation capability.

(2) Any electric service delivered by the Company to a QS located in the Company's service area shall be subject to the
following terms and conditions:

(a) A QS shall be metered separately and billed under the applicable retail rate schedule(s), whose terms and

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ORDER NO. PSC-2023-0180-PAA-EQ Attachment A
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PAGE 36

FLORIDA POWER & LIGHT COMPANY Original Sheet No. 10.309

(Continued from Sheet No. 10.308)
CALCULATION OF FIXED VALUE OF DEFERRAL PAYMENTS— EARLY CAPACITY-—OPTION B

Normally, payments for firm capacity shall not commence until the in-service date of the Company's Avoided Unit(s). At the option of the QS, however,
the Company may begin making payments for early capacity consisting of the capital cost component of the value of a year-by-year deferral of the
Company's Avoided Unit starting as early as the in-service date of the QS facility. When such payments for early capacity are elected, the avoided capital
cost component of capacity payments shall be paid monthly commencing no earlier than the Capacity Delivery Date of the QS, and shall be calculated as

. (m1)
+ _ym-1)
, Uti} +4, (1 + io J

A = far m= 1 tnt

ORDER NO. PSC-2023-0180-PAA-EQ Attachment A
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PAGE 37

FLORIDA POWER & LIGHT COMPANY Original Sheet No. 10.310

(Continued from Sheet No. 10.309)

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:
P r . dK

payments, caicuatea in accordance with caicuation OF the Lixed value or
deferral payments for the levelized capacity or the early levelized
capacity options.

ORDER NO. PSC-2023-0180-PAA-EQ Attachment A
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PAGE 38

Seventeenth Lighteenth Revised Sheet No. 10.311
FLORIDA POWER & LIGHTCOMPANY Cancels Siteenth Seventeenth Revised Sheet No. 10.311

APPENDIX II
TO RATE SCHEDULEQS-2
| 2032-2033 AVOIDED UNIT INFORMATION

The Company’s Avoided Unit has been determined to be a 1,991 MW Combined Cycle Unit with an in-service date of June 1, 20322033
and a contract heat rate of 39386,003 Btu/kWh.

EXAMPLE STANDARD OFFER CONTRACT AVOIDED CAPACITY PAYMENTS
FOR A CONTRACT TERM OF TEN YEARS FROM THE IN-SERVICE DATE OF THE AVOIDED UNIT
($/KW/MONTH)

Option A Option B Option C Option D

Contract Year Normal Capacity Early Capacity Levelized Capacity Early Levelized Capacity

Payment Payment Payment Payment

20232024 $ - $ $ - $
26242025 B $ : ae $
26252026 $ $ $ - $
26262027 § = $B — - $
26272028 $ $ $ - Go
20282029 $ $ $ - $ 3885.18
26202030 $ $ $ - § 388518
20302031 $B f $ - $ 3885.18
26342032 $ § $ - § 3485.18
26322033 $ 3007.98 $ $ 6418.65 $ 3885.18
29332034 $ 6028.14 hy $ o-H8.05 $ 388,18
26342035 $ 6458.31 $ $ 648.65 $ 2885.18
2625-2036 $ 6aSS.48 $ B Gbb8.65 $ 3885.18
26362037 $ eHs.6o $ $ e4b.65 $ Seesls
29322038 § 6548.84 $ $ 6-48.65 $ 3885.18
20282039 $ 6689.03 $ $ 6418.65 $ 388518
26302040 3 6829.21 $ $ 6-48.65 $ 3885.18
20407041 $ 4099.41 $ S$ 68.65 $ 2885.18
26442042 $ +H9.60 $ $ 618.65 $ 3885.18

ESTIMATED AS-AVAILABLE ENERGY COST

For informational purposes, the most recent estimated incremental avoided energy costs for the next ten years will be provided within
thirty (30) days of written request.

ESTIMATED UNIT FUEL COSTS(S/MMBtu):
The most recent estimated unit fuel costs for the Company’ savoided unit will be provided within thirty (30) days of written request.

#sixecutive Director, Rate

Issued by: Tiffany Cohen, &

Development & Strategy
Effective: June32022

ORDER NO. PSC-2023-0180-PAA-EQ Attachment A
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PAGE 39

Heath Eleventh Revised Sheet No.10.311.1

| FLORIDA POWER & LIGHTCOMPANY Cancels Tenthinth Revised Sheet No. 10.311.1

2033 2032-4 VOIDED UNIT FIXED VALUE OF DEFERRAL PAYMENTS

Where, for a one-yeardeferral:

| VACm

Company's value of avoided capacity and O&M. in dollars per kilowatt per month, during month im;

present value of carrying charges for one dollar of investment 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;

total direct and indirect cost, in mid-year dollars per kilowatt including AFUDC but excluding CWIP,
of the Company's Avoided Unit with an in-service date of year n;

total fixed operation and mamtenance expense, for the year n, im mid-year dollars

per kilowatt per year, of the Company's Avoided Unit,

annual escalation rate associated with the plant cost of the Company’s Avoided Unit,

annual escalation rate associated with the operation and maintenance expense of the
Company's Avoided Unit, 2.50%

annual discount rate, defined as the Company's incremental after-tax cost ofcapital; T498.00%

expected life of the Company's Avoided Unit; 50

year for which the Company's Avoided Umit is deferred starting with its orginal
anticipated in-service date and ending with the termination of the Standard Offer Contract.

FIXED VALUE OF DEFERRAL PAYMENTS - EARLY CAPACITY OPTION PARAMETERS

monthly capacity payments to be made to the QS starting on the year the QS elects to start receiving early
capacity payments, in dollars per kilowatt per month;

annual escalation rate associated with the plant cost of the Company's Avoided Unit;

annual escalation rate associated with the operation and maintenance expense of
theCompany’s Avoided Unit,

year for which early capacity payments to a QS are to begin; (at the election of the QS early capacity
payments may commence any time after the actual in-service date of the QS facility and before the
anticipated in-service date of the Company’savoided unit)

the cumulative present value of the avoided capital cost component of capacity payments
which would have been made had capacity payments commenced with the anticipated in-
service date of the Company's Avoided Unit and continued for a period of 10 years: $446.80582,79

annual discount rate, defined as the Comparny’s incremental after-tax cost ofcapital; F498.00%
the term, in years, of the Standard Offer Contract for the purchase of firm capacity commencing in the =
yearthe QS elects to start receiving early capacity payments prior to the in-service dale of the Company's

Avoided Unit;

the cumulative present value of the avoided fixed operation and maintenance expense component of
capacity payments which would have been made had capacity payments commenced with the anticipated
in-servicedate of the Company's Avoided Unit and continued for a period of 10 years. $4H44-26113,99

*From Appendix E

Issued by: Tiffany Cohen, Senier Director, Reculater;Rates,Cestof Service and
Systems xecutive Director, Rate Development & Strategy
Effective: dune-,2622

ORDER NO. PSC-2023-0180-PAA-EQ Attachment A

DOCKET NO. 20230046-EQ Page 35 of 42
PAGE 40
FLORIDA POWER & LIGHT COMPANY Original Sheet No. 10312.1

# Location Penalty Factor
1 Turkey Paint 0.971
pa Dania Beach 1.000
3 West County 0.962
4 Ft. Myers 0.983
5 Riviera 0.958
6 Martin 0.944
ra Okeechobee 0.948
8 St. Lucie 0.940
9 Manatee 0.945
10 | Cape Canaveral 0.948
11 Sanford 0.954
12 Putnam 0.953
13 Scherer 0.940
14 Blue Indigo 0.919
15 Lansing Smith 0.948
16 Eglin 0.991
1? Halley 1.000
18 Crist 0.990

*FOR ILLUSTRATIVE PURPOSES ONLY

Issued by: Tiffany Cohen, Senior Director, Regulatory Rates, Cost of Service and Systems
Effective: January 1, 2022

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ORDER NO. PSC-2023-0180-PAA-EQ Attachment A

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PAGE 42
FLORIDA POWER & LIGHT COMPANY Original Sheet No. 10.314
APPENDIX C
TO THE STANDARD OFFER CONTRACT
TERMINATION FEE

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 termination (or month of calculation, as the case may be), computed according to the following formula:

Termination Fee = Termination Fee applicable to Capacity Payment Option plus Termination Fee applicable to Fixed Firm Energy Option
Termination Fee applicable to Capacity Payment Options B, C, D andE

n

se comes | cas | lal

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PAGE 43

v WpeLauiy, Wl Lary

e Provide details on all electrical generation facilities which are currently under construction or operational which were
developed by the QS.

e Describe the financing structure for the projects identified above, including the type of financing used, the permanent financing
term, the major lenders, and the percentage of equity invested at financial closing.

(Continued on Sheet No. 10.316)

Issued by: S. E. Romig, Director, Rates and Tariffs
Effective: May 22, 2007

ORDER NO. PSC-2023-0180-PAA-EQ Attachment A
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PAGE 44

FLORIDA POWER & LIGHT COMPANY Original Sheet No. 10.316

(Continued from Sheet No. 10.315)

Ill. FUEL SUPPLY

e Describe all fuels to be used to generate electricity at the Facility. Indicate the specific physical and chemical characteristics
of each fuel type (e.g. Btu content, sulfur content, ash content, etc.). Identify special considerations regarding fuel supply
origin, source and handling, storage and processing requirements.

e Provide annual fuel requirements (AFR) necessary to support the requirements pursuant to Section 366.91, Florida Statutes,

emer (er: eer ererene Leet read A trad seat capasultie wrencaatatioe:

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FLORIDA POWER & LIGHT COMPANY Original Sheet No. 10.317

(Continued from Sheet No. 10.316)

IV. PLANT DISPATCHABILITY/CONTROLLABILITY
e Provide the following operating characteristics and a detailed explanation supporting the performance capabilities indicated.

¢ Ramp Rate (MW/minute)
@ Peak Capability (% above Committed Capacity)

Ratner Puss wu coantiawd Piaawabes’

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FLORIDA POWER & LIGHT COMPANY Original Sheet No. 10.319

APPENDIX E
TO THE STANDARD OFFER CONTRACT
CONTRACT OPTIONS TO BE SELECTED BY QS
Term of Contract

Execution date
Termination date

Firm Capacity Rates
Commencement date for deliveries of Firm Energy and Capacity

Capacity Payment Option Selected (from available Options A through E)
If Option E is selected proposed payment stream:

Schedule of Capacity Payments to be provided by the Company based on applicable parameters follows:

Year $/KW/Month