Florida Public Service Commission native order document 04603-2026

FILED 7/23/2026
DOCUMENT NO. 04603-2026
FPSC 	- COMMISSION CLERK
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
DOCKET NO. 20260046- EI
ORDER NO. PSC-2026-0256-TRF-EI
ISSUED: July 23, 2026
The following Commissioners participated in the disposition of this matter:
GABRIELLA PASSIDOMO SMITH, Chairman
GARY F. CLARK
MIKE LA ROSA
BOBBY PAYNE
ANA ORTEGA
ORDER APPROVING DUKE ENERGY FLORIDA. LLC’S REVISED
UNDERGROUND RESIDENTIAL DISTRIBUTION TARIFFS
BY THE COMMISSION:
BACKGROUND
On March 	31, 	2026, Duke Energy 	Florida, LLC (DEF 	or 	utility) 	filed a 	petition 	for
approval of revisions 	to 	its underground 	residential 	distribution 	tariffs (URD) and 	associated
charges (2026 	Petition). 	These 	tariffs represent the estimated additional cost, 	if any, DEF incurs
to provide underground service in place of overhead service in new residential subdivisions. The
current URD 	tariffs and charges were approved in 2023. 1
Rule 	25-6.078, 	Florida Administrative Code 	(F.A.C.), 	defines investor-owned 	utilities’
(IOU) responsibilities for filing updated URD 	tariffs. DEF has filed the instant petition pursuant
to 	subsection 	(3) 	of 	the 	rule, which 	requires lOUs 	to 	file 	supporting 	data and 	analyses 	for
updated URD 	tariffs 	if the cost 	differential, using current labor and material 	costs, varies from
the Commission-approved differential by more than ten percent. 	Furthermore, subsection 	(3) of
the rule also requires lOUs 	to 	file supporting data and analyses 	for updated URD 	tariffs 	at 	least
once every three years. On October 7, 2025, pursuant to Rule 25-6.078(3), F.A.C., DEF filed 	its
annual Overhead/Underground Residential Differential Cost Data (Form PSC/ECO 	13-E). 2
On May 	18, 2026, we suspended the proposed 	tariffs 	to allow our 	staff sufficient time to
analyze 	the 	utility's 	filing. 3 Staff issued 	its 	first 	data 	request on May 	12, 	2026, 	to which 	a
response was provided on May 26, 2026. 4
1 Order No. PSC-2023-0255-TRF-EI, 	issued August 	21, 2023, 	in Docket No. 20230043-EI, In 	re: 	Petition for
approval of revised underground residential distribution tariffs, by Duke Energy Florida, LLC.
2Document No. 14343-2025, filed October 7, 2025.
3 Order No. PSC-2026-0154-PCO-EI, 	issued May 	18, 	2026, 	in Docket No. 20260046- EI, In 	re: 	Petition for
approval of revised underground residential distribution tariffs, by Duke Energy Florida, LLC.
In re: Petition for approval of revised
underground residential distribution tariffs, by
Duke Energy Florida, LLC._

ORDER NO. PSC-2026-0256-TRF-EI
DOCKET NO. 20260046-EI
PAGE 2
The proposed URD tariffs are contained in this order as Attachment A. 	We have
jurisdiction over this matter pursuant to Sections 366.03, 366.04, 366.05, and 366.06, Florida
Statutes (F.S.).
DECISION
The URD tariffs provide charges for underground service in new residential subdivisions
and represent the additional costs, if any, the utility incurs to provide underground service in
place of overhead service. The cost of standard overhead construction is recovered through base
rates from all ratepayers. In lieu of overhead construction, customers have the option of
requesting underground facilities. Any additional cost is paid by the customer as a contribution-
in-aid-of-construction (CIAC). Typically, the URD customer is the developer of a subdivision.
In prior URD filings, three standard model subdivision designs have been the basis upon
which each IOU submits URD tariff changes for our approval: low density where there are one
or more but less than six dwelling units per acre; high density where there are six or more
dwelling units per acre; and a high density subdivision, where dwelling units take service at
ganged meter pedestals (group of meters at the same physical location). 	While actual
construction may differ from the model subdivisions, the model subdivisions are designed to
reflect average overhead and underground subdivisions. In this petition, DEF did not provide a
submission for high density ganged meter services, because DEF does not install services to
ganged meter pedestals any longer. In DEF’s 2024 settlement agreement, installation to ganged
meter pedestals was removed from Part 11.03 of the tariffs.5
Costs for underground construction have historically been higher than costs for standard
overhead construction, and the additional cost is paid by the customer as CIAC. 	However,
DEF’s proposed URD differential charges remain $0 per lot for the low density and high-density
subdivisions 	where 	DEF 	is 	supplying 	and 	installing 	the 	conduit. 	For 	the 	high-density
subdivision where DEF is supplying and installing the conduit, the proposed differential
decreases from the current $332 to $0 per lot. The decrease in the differential is attributable to
the net present value of life cycle operational costs including storm restoration and pole
attachment revenue causing an offset of any increase in cost differential since the last URD was
approved for DEF in 2023.6
Table 1 below compares the current and proposed URD differentials for the low density
and high-density meter subdivisions for single-phase service as appears in Section IV, Part 11.03
of the current and proposed URD tariff. The charges shown are per-lot charges. The proposed
URD differential for the high-density subdivision is decreasing due to the impact from
Hurricanes Idalia, Debby, Helene and Milton in 2023 and 2024. These storms impacted overhead
4 Document No. 03124-2026, filed May 26, 2026.
5 Order No. PSC-2024-0472-AS-EI, issued November 11, 2024, in Docket No. 20240025-EI, In re: Petition for rate
increase by Duke Energy Florida, LLC.
6 DEF’s Response to Staff’s First Data Request, Response No. 3.

ORDER NO. PSC-2026-0256-TRF-EI
DOCKET NO. 20260046-EI
PAGE 3
facilities more than underground facilities resulting in a 185 percent increase (from -$550 in
2023 to -$1565 in 2026) in the credit toward the differential.7
Table 1
Comparison of URD Differential per Lot (Single-Phase Service)
Subdivision Designs Current
URD Differential
Proposed
URD Differential
Low Density 	$0 	$0
High Density 	$332 	$0
Source: Order No. PSC-2023-0255-TRF-EI (Current) and DEF’s 2026 Petition (Proposed).
The calculations of the proposed URD charges include: (1) updated labor and material
costs along with the associated loading factors and (2) operational costs. The costs are discussed
below.
Updated Labor and Material Costs
The installation costs of both overhead and underground facilities include the labor and
material 	costs 	to 	provide 	primary, 	secondary, 	and 	service 	distribution 	lines, 	as 	well 	as
transformers. The costs of poles are specific to overhead service while the costs of trenching and
backfilling are specific to underground service. The utilities are required by Rule 25-6.078(5),
F.A.C., to use current labor and material costs.
DEF’s labor costs for overhead and underground construction are comprised of costs
associated with work performed by both in-house employees and outside contractors. 	DEF’s
contracted labor rates are based upon actual labor costs negotiated in bargaining unit contracts
and labor rates with contractors. Table 2 shown below compares total 2023 and 2026 labor and
material costs per lot for the two subdivision designs.
Table 2
Labor and Material Costs Per Lot for DEF Trench and Install Conduit
Subdivision Designs 	2023 Costs 	2026 Costs 	Difference
Low Density
Underground Labor/Material Costs 	$3,454 	$3,506 	$52
Overhead Labor/Material Costs 	$2,749 	$3,231 	$482
Per Lot Differential 	$705 	$275 	$(430)
High Density
Underground Labor/Material Costs 	$3,003 	$3,553 	$550
Overhead Labor/Material Costs 	$2,121 	$2,266 	$145
Per Lot Differential 	$882 	$1,287 	$405
Source: Order No. PSC-2023-0255-TRF-EI (Current) and DEF’s 2026 Petition (Proposed).
7 DEF’s Response to Staff’s First Data Request, Response No. 3.

ORDER NO. PSC-2026-0256-TRF-EI
DOCKET NO. 20260046-EI
PAGE 4
As Table 2 shows, the majority of the proposed overhead and underground total labor and
material costs have increased since the current URD charges were approved in 2023. 	As
reflected, the 2026 costs for overhead and underground labor and materials are higher for both
subdivision designs, although a greater increase has occurred for overhead, compared to
underground. In a data request response, DEF stated overhead costs have escalated more rapidly
than underground costs because underground costs have stabilized after a large increase during
the 2020 to 2023 time period.8
Updated Operational Costs
Rule 25-6.078(4), F.A.C., requires that the differences in net present value (NPV) of
operational costs between overhead and underground systems, including average historical storm
restoration costs over the life of the facilities, be included in the URD charge. The inclusion of
the operational cost is intended to capture longer term costs and benefits of undergrounding.
Operational costs include operations and maintenance costs along with capital costs and
represent the cost differential between maintaining and operating an underground versus an
overhead system over the life of the facilities. The inclusion of the storm restoration cost in the
URD calculations lowers the differential, since an underground distribution system generally
incurs less damage than an overhead system as a result of a storm, and therefore, incurs less
restoration costs when compared to an overhead system.
The utility used a 5-year average of historical, operational costs (2020-2024) for its
calculations in this docket. The methodology used by DEF in this filing for calculating the NPV
of operational costs was approved in Order No. PSC-12-0348-TRF-EI.9 	Operational costs may
vary among IOUs due to multiple factors, including differences in size of service territory, miles
of coastline, regions subject to extreme winds, age of the distribution system, or construction
standards.
Table 3 shown below presents information on costs that are reflected in the URD tariffs
for the two subdivision designs. 	The table shows the result of adding the proposed 2026
overhead and underground labor and materials cost differentials, as found in Table 2, and the
NPV of operational costs differentials, including storm costs, to calculate the proposed total cost
differential for each design. The per lot differential costs appearing in parentheses are negative
values, indicating the overhead costs exceed the underground costs.
8 DEF’s Response to Staff’s First Data Request, Response No. 1b.
9 Order No. PSC-12-0348-TRF-EI, issued July 5, 2012, in Docket No. 110293-EI, In re: Petition for approval of
revised underground residential distribution tariffs, by Progress Energy Florida, Inc.

ORDER NO. PSC-2026-0256-TRF-EI
DOCKET NO. 20260046-EI
PAGE 5
Table 3
DEF Updated Overhead/Underground Cost Differential
Subdivision Design
2026 	Labor 	and
Materials
Differential
(A)
2026 	NPV 	of
Operational
Costs Differential
(B)
Total 	Cost 	Differential
Supporting 	Proposed
URD
(C) = (A) + (B)
Low Density 	$275 	$(2,051) 	$(1,776)
High Density 	$1,287 	$(1,565) 	$(278)
Source: Exhibit C of DEF’s 2026 Petition.
Negative total cost differentials, as shown in 3 for both the low density and high-density
designs, result in the proposed URD differential of $0, as shown in Table 1. For both designs,
DEF’s positive labor and material cost differential is completely offset by their negative NPV of
operational costs differential.
Other Proposed Tariff Changes
Tariff Sheet No. 4.113 of the utility’s proposed URD tariff includes the per foot charge
for three-phase primary main or feeder mains that need to be installed underground. DEF states
the cost for underground feeders decreased approximately 3 percent while overhead feeder costs
increased by approximately 10 percent.10 	The net result of this was a decrease in the per foot
differential for three-phase primary main conduit provided and installed by DEF, which is
proposed to change from $2.17 per foot to $0.
Tariff Sheet No. 4.114 of the utility’s proposed URD tariff includes the credits per each
foot of trench for applicant provided trenching and backfilling for the use of the utility’s facilities
in the case of both service laterals and primary or secondary systems. 	Increasing labor and
material costs impacted the credits that are available to an applicant (customer) when the
applicant provides the trenching and backfill for both primary and/or secondary systems and
service laterals. Such credits are proposed to increase from $4.06 to $4.28 per foot of trench.
Section IV, Part 11.04 of the utility’s proposed URD tariff includes the charge for
underground service laterals from existing secondary electric distribution systems. 	In the
proposed URD tariff, there is a requested decrease in the charge for DEF supplied and installed
conduit (service laterals, up to 80 feet) from $983 to $853. For customer supplied and installed
conduit, the proposed decrease is $619 to $520.
Section IV, Part 11.05 of the utility’s proposed URD tariff includes the charge for
underground service laterals replacing existing residential overhead services. The costs for this
service have increased compared to costs approved in 2023. 	DEF states in response to Staff’s
First Data Request that the cost to remove the existing overhead service and the remaining
undepreciated value of the overhead service is higher.11 DEF proposes to increase its charge for
10 DEF’s Response to Staff’s First Data Request, Response No. 4.
11 DEF’s Response to Staff’s First Data Request, Response No. 6a.

ORDER NO. PSC-2026-0256-TRF-EI
DOCKET NO. 20260046-EI
PAGE 6
installed 	conduit 	service 	lateral from 	$1,930 	to 	$2,286 	per 	service. 	The 	utility 	proposes 	to
increase 	its customer installed conduit service lateral from $1,765 to $1,918 per service.
We 	have 	reviewed DEF’s 	proposed 	underground 	distribution 	tariffs 	and 	associated
charges, 	its accompanying work 	papers, 	and 	the 	utility’s 	responses 	to 	Staffs Data 	Request.
Based on this review, we find that DEF’s proposed underground residential distribution tariffs as
filed 	in 	the 	petition 	are 	cost-based and comply 	with Rule 	25-6.078, 	F.A.C. 	Therefore, we
approve DEF’s proposed underground 	residential 	distribution 	tariffs and 	associated charges 	as
shown in Attachment A, effective on the date of our vote, July 	7, 2026.
Based on the foregoing, 	it 	is
ORDERED by the Florida Public Service Commission that Duke Energy Florida, LLC’s
proposed 	revised 	underground 	residential 	distribution 	tariffs, 	and 	associated 	charges, 	as
discussed in the body of this Order, are hereby approved, effective July 7, 2026. 	It is further
ORDERED 	that 	if a 	protest 	is 	filed within 21 	days of the 	issuance of 	this 	Order, 	the
tariffs 	shall remain in 	effect, with any revenues held subject to refund, pending resolution of the
protest. 	If no 	timely 	protest 	is 	filed, 	this 	docket 	should be 	closed upon 	the 	issuance 	of a
Consummating Order.
By ORDER of the Florida Public Service Commission this 23rd day of July, 2026 	.
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.
SBr

ORDER NO. PSC-2026-0256-TRF-EI
DOCKET NO. 20260046-EI
PAGE 7
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 August 13, 2026.
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-2026-0256-TRF-EI
DOCKET NO. 20260046-EI 	Attachment A
PAGE 8 	Page 1 of 3
DUKE
ENERGY.
SECTION NO. IV
TWENTY -THIRD-FOURTH REVISED SHEET NO. 4.113
CANCELS TWENTY SECOND THIRD REVISED SHEET NO. 4.113
Page 4 ot 7
(2) Contribution by Applicant:
(a) 	Schedule of Charges:
Company standard design underground residential distribution 120/240 volt single-phase service (see
also Part 11.03(7)):
To subdivisions with a density of 1.0 or more
but less than six (6) dwelling units per acre:
Duke Provided and Installed Conduit . 	$0.00 per dwelling unit
Customer Provided and Installed Conduit for Mainline . 	$0.00 per dwelling unit
Customer Provided and Installed Trench and Conduit . 	$0.00 per dwelling unit
To subdivisions with a density of six (6) or more
dwelling units per acre:
Duke Provided and Installed Conduit . 	$3320.00 per dwelling
unit
Customer Provided and Installed Conduit for Mainline . 	$0.00 per dwelling unit
Customer Provided and Installed Trench and Conduit . 	$0.00 per dwelling unit
To multi-occupancy buildings . 	See Part 11.06(2)
(b) The above costs are based upon arrangements that will permit serving the local underground distribution
system within the subdivision from overhead feeder mains. 	If feeder mains within the subdivision are
deemed necessary by the Company to provide and/or maintain adequate service and are required by
the Applicant 	or a governmental agency to be installed underground, the Applicant shall pay the
Company the average 	differential cost between such underground feeder mains within the subdivision
and equivalent overhead feeder mains as follows:
Three-phase primary main or feeder charge per trench-foot within subdivision:
(U.G. 	- Underground, O.H. - Overhead)
#1/0 AWG U.G. vs. #1/0 AWG O.H.:
Duke Provided and Installed Conduit . 	$0.00 per foot
Customer Provided and Installed Trench and Conduit . 	$0.00 per foot
500 MCM U.G. vs. 336 MCM O.H.:
Duke Provided and Installed Conduit . 	$0.00 per foot
Customer Provided and Installed Trench and Conduit . 	$0.00 per foot
1000 MCM U.G. vs. 795 MCM O.H.:
Duke Provided and Installed Conduit . 	$2470.00 perfoot
Customer Provided and Installed Trench and Conduit . 	$0.00 per foot
The above costs do not require the use of pad-mounted switchgear(s), or terminal pole(s). 	If such
facilities are required, a differential cost for same will be determined by the Company on an individual
basis and added to charges determined above.
(Continued on Next Page)
ISSUED BY: Thomas G. Foster, Vice President, Rates & Regulatory Strategy- FL
EFFECTIVE: January-1 r2025

ORDER NO. PSC-2026-0256-TRF-EI
DOCKET NO. 20260046-EI 	Attachment A
PAGE 9 	Page 2 of 3
DUKE
ENERGY®
SECTION NO. IV
TWENTY-THIRD -FOURTH REVISED SHEET NO. 4.114
CANCELS TWENTY- SECOND THIRD REVISED SHEET NO. 4.114
Page 5 of 7
(2) Contribution by Applicant (continued):
(c) 	Credits (not to exceed the "average differential costs" stated in Section 11.03) will be allowed where, by
mutual agreement, the Applicant provides trenching and backfilling for the use of the Company's facilities
in lieu of a portion of the cash payment described above. These credits, based on the Company's design
drawings, are:
Primary and/or Secondary Systems,
for each Foot of Trench . 	£406 4.28
Service Laterals,
for each Foot of Trench . 	£4.06 4.28
(3) Point of Delivery:
The point of delivery shall be determined by the Company and will be on the front half of the side of the
building that 	is nearest the point at which the underground secondary electric supply 	is available to the
property. The Company will not install a service on the opposite side of the building where the underground
secondary electric supply is available to the property. The point of delivery will only be allowed on the rear
of the building by special exception. The Applicant shall pay the estimated full cost of service lateral length
required 	in excess of that which would have been needed to reach the Company's designated point of
service.
(4) Location of Meter and Socket:
The Applicant shall install a meter socket at the point designated by the Company in accordance with the
Company's specifications. Every effort shall be made to locate the meter socket in unobstructed areas in
order that the meter can be accessed without going through fences, etc. The Company shall not install a
company owned Service Lateral to a Gang Meter Center.
(5) Development of Subdivisions:
The above charges are based on reasonably full use of the land being developed. Where the Company is
required to construct underground electric facilities through a section or sections of the subdivision or
development where service will not be required for at least two (2) years, the Company may require a deposit
from the Applicant before construction 	is commenced. 	This deposit, to guarantee performance, will be
based on the estimated total cost of such facilities rather than the differential cost. The amount of the
deposit, without interest, in excess of any charges for underground service will be returned to the Applicant
on a prorata basis at quarterly intervals on the basis of installations to new customers. Any portion of such
deposit remaining unrefunded, after five (5) years from the date the Company is first ready to render service
from the extension, will be retained by the Company.
(6) Relocation or Removal of Existing Facilities:
If the Company is required to relocate or remove existing overhead and/or underground distribution facilities
in the implementation of these Rules, all costs thereof shall be borne exclusively by the Applicant. These
costs shall include costs of relocation or removal, the in-place value (less salvage) of the facilities so
removed, and any additional costs due to existing landscaping, pavement or unusual conditions.
(7) Other Provisions:
If soil compaction 	is required by the Governmental or permitting agency in right of way locations where
Company trenching is done, an additional charge may be added to the charges set forth in this tariff. The
charge will be estimated based on the Governmental or permitting agency’s compaction specifications. The
Company will not provide trench line soil compaction for the Applicant.
(Continued on Next Page)
ISSUED BY: Thomas G. Foster, Vice President, Rates & Regulatory Strategy- FL
EFFECTIVE: January 1, 2025

ORDER NO. PSC-2026-0256-TRF-EI
DOCKET NO. 20260046-EI 	Attachment A
PAGE 10 	Page 3 of 3
DUKE
ENERGY.
SECTION NO. IV
TWENTY-THIRD -FOURTH REVISED SHEET NO. 4.115
CANCELS TWENTY- SECOND THIRD REVISED SHEET NO. 4.115
Page 6 of 7
11.04 UNDERGROUND SERVICE LATERALS FROM EXISTING SECONDARY ELECTRIC DISTRIBUTION
SYSTEMS.
(1) New Underground Service Laterals:
When requested by the Applicant, the Company will install underground service laterals from overhead
systems to newly constructed residential buildings.
(2) Contribution by Applicant:
The Applicant shall pay the Company the following average differential cost between an overhead
service lateral and an underground service lateral:
For Service Lateral up to 80 feet Duke Supplied and Installed Conduit . 	$983853 .00
For Service Lateral up to 80 feet Customer Supplied and Installed Conduit . 	$649520 .00
For each foot over 80 feet up to 300 feet Duke Supplied and Installed Conduit . 	$0.00 per foot
For each foot over 80 feet up to 300 feet Customer Supplied and Installed Conduit . $0.00 per foot
Service laterals in excess of 300 feet shall be based on a specific cost estimate.
The provisions of Paragraphs 11.03(3) and 11.03(4) are also applicable.
11.05 UNDERGROUND SERVICE LATERALS REPLACING EXISTING RESIDENTIAL OVERHEAD SERVICES:
Applicability:
When requested by the Applicant, the Company 	will 	install underground service laterals from existing
overhead lines as replacements for existing overhead services to existing residential buildings.
Rearrangement of Service Entrance:
The Applicant shall be responsible for any necessary rearranging of his existing electric service entrance
facilities to accommodate the proposed underground service lateral 	in accordance with the Company's
specifications.
Trenching:
The Applicant shall also provide, at no cost to the Company, a suitable trench or installed conduit and perform
the backfilling and any landscaping, pavement, or other suitable repairs. 	If the Applicant requests the
Company to supply the trench or remove any additional equipment other than the Service Lateral, the charge
to the Applicant for this work shall be based on a specific cost estimate.
Contribution by Applicant:
The charge excluding trenching costs shall be as follows:
For Seivice Lateral . 	S4-93&2 286 00 	per
service
The Applicant may elect to provide and install conduit meeting current Company construction specifications
at no cost to the Company in lieu of an open trench. The charge shall be as follows:
For Service Lateral . 	$1.765 1,918 .00 	per
service
(Continued on Next Page)
ISSUED BY: Thomas G. Foster, Vice President, Rates & Regulatory Strategy- FL
EFFECTIVE: January-1-2025