Florida Public Service Commission native order document 04114-2024

FILED 5/24/2024
DOCUMENT NO. 04114-2024
FPSC - COMMISSION CLERK
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In re: Fuel and purchased power cost recovery 	DOCKET NO . 2024000 I-EI
clause with generating performance incentive 	ORDER NO. PSC-2024-0172-PCO-EI
_f:_a_ct_o_r._______________JJ ISSUED: May 24, 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
ORDER APPROVING TAMPA ELECTRIC COMPANY'S
MID-COURSE CORRECTION
BY THE COMMISSION:
BACKGROUND
On April 2, 2024, Tampa Electric Company (TECO or Company), filed for revision of its
currently effective 2024 fuel cost recovery factors (MCC Petition).' TECO's currently effective
fuel factors were approved last year at the November 1, 2023 final hearing. 2 Underlying the
approval 	of 	TECO's 	2024 	fuel 	factors 	was 	the 	Florida 	Public 	Service 	Commission's
(Commission) review of the Company's projected 2024 fuel- and capacity-related costs. These
costs are recovered through fuel and capacity cost recovery factors that are set/reset annually in
this docket.
Mid-Course Correc ti ons
Mid-course corrections are used by this Commission between annual clause hearings
whenever costs deviate from revenue by a significant margin. Under Rule 25-6.0424, Florida
Administrative Code (F.A.C.), which is commonly referred to as the " mid-course correction
rule ," a utility must notify us whenever it expects to experience an under- or over-recovery of
certain service costs greater than IO percent. The notification of a 10 percent cost-to-revenue
variance shall include a petition for mid-course correction to the fuel cost recovery or capacity
cost recovery factors , or shall include an explanation of why a mid-course correction is not
1Oocument No. 01529-2024.
2 Order No. PSC-2023-0343-FOF-El, issued November 16, 2023, in Dock et No. 2023000 I-El , In re: Fuel and
purchased power cost recovery clause with generating performance incentive/actor.

ORDER NO. PSC-2024-0172-PCO-EI
DOCKET NO. 20240001-EI
PAGE2
practical. The mid-course correction rule and its codified procedures are further discussed
throughout this order.
TECO's Petition
In its MCC 	Petition, the Company currently estimates a net $137,918,831 	million
reduction in fuel-related costs for the 2024 period relative to its previous estimate. T EC O is
proposing to use June 2024 through May 2025 forecasted sa les in determining its proposed mid-
course fuel factors. If approved, this proposal will have the effect of reducing fuel cost recovery
factors for the remainder of this year, as well as 2025. The Company is requesting that its revised
fuel cost recovery factors and associated tariff become effective beginning with the fir st billing
cycle of June 2024. The mid-course correction amount, rate methodology, and 	proposed
effective date are further discussed herein.
We are vested with jurisdiction over the subject matter of this proceeding by the
provisions of Chapter 366, Florida Statutes (F.S.), including Sections 366.04, 366.05, and
366.06, F.S.
DECISION
TECO participated in our most-recent fuel hearing which took place on November 1,
2023. The fuel order stemming from this proceeding set forth the Company's fuel and capacity
cost recovery factors effective with the first billing cycle of January 2024.3 Following the
issuance of the fuel order, the Company has subsequently updated its 2024 fuel cost projection.
TECO now projects its 2024 fuel-related costs to be approximately $138 million (net) lower than
estimated in August 2023. 4 This reduction is primarily due to lower assumed prices for natural
gas. The main factors influencing the decline in actual and projected natural gas prices in 2024
are elevated quantities of natural gas in storage and milder weather compared to previous years. 5
TECO Fuel and Purchased Power Mid-Course Correction
TECO filed for a mid-course correction of its fuel charges on April 2, 2024. 6 The
Company's MCC Petition and suppo11ing documentation satisfies the filing requirements of Rule
25-6.0424(1 )(b), F.A.C.
The Company developed its proposed mid-course correction factors using twelve months
of forecasted sales data, or June 2024 through May 2025. 	The 	factors proposed 	in 	this
proceeding are currently contemplated to be charged for seven months in 2024. As is typical
3 / d.
4 Oocument No. 04814-2023.
5https://www.eia.gov/outlooks/steo/archi ves/apr24 .pd f
6 Document No. 01529-2024.

ORDER NO. PSC-2024-0172-PCO-EI
DOCKET NO. 2024000 I-EI
PAGE3
procedure, later this year newly developed 12-month-applicable factors will be proposed for
authorization to begin with the first billing cycle of January 2025.
Actual Period-Ending 2023 Fuel Cost Recovery Position
Through its February 8, 2023, amended mid-course correction filing, TECO initially
projected a period-specific 2023 over-recovery of fuel costs in the amount of $157,006,362. 7 By
its actual/estimated filing and 	in compliance with Order No. 	PSC-2023-0107-PCO-EI, the
projected period-specific 2023 over-recovery of fuel costs was amended by $183,160,125. This
resulted in a projected period-specific 2023 over-recovery of $340,166,487 and a total true-up
under-recovery of ($ 112,834,024). 8 However, the Company over-recovered this amount by
$30,397,837 as its actual fuel cost recovery position at the end of 2023 is an under-recovery of
($82,436, I 87). 9 This approximate $30.4 million difference is proposed for inclusion in rates
through the instant proceeding.
Decreased pricing for natural gas is the primary driver of the approximate $340 million
over-recovery of 2023 fuel costs discussed above. More specifically, the Company estimated an
annual delivered natural gas cost of $7.49 per million British thermal unit (MMBtu) in its first
fuel cost projection of 2023. 10 However, as indicated in the Company's December 2023 A-
Schedule, TECO's average 2023 cost of natural gas was $3.94 per MMBtu, representing a
difference of 47.4percent. 11 Natural gas-fired generation comprised approximately 87.7 percent
ofTECO's generation mix in 2023.12
Projected 2024 Fuel Cost Recovery Position
TECO's 2024 fuel-related revenue requirement has decreased substantiaJly since the
filing of its last cost projection in August 2023. 13 More specifically, the results of this updated
estimate are a 	reduction 	in TECO's estimated 2024 	fuel-related 	costs 	in 	the amount of
$107,520,994. As mentioned above, the remaining amount of the 2023 over-recovery proposed
for refund through new 2024 rates is $30,397,837. Thus, the proposed net or decremental amount
for inclusion into 2024 rates is $ 137,918,83 I. 14
7Oocument No. 01008-2023.
8Document No. 04317-2023. Further, we note the Company' s estimated end-of-period 2023 total under-recovery in
Lhe amount of ($112,834,024) is embedded in current rates per Order No. PSC-2023-0343-FOF-EI. This amount
constitutes the remainder of the approximate ($518 million) net under-recovery of 20 22 fuel costs ordered to be
collected in 2023 and 2024 and is net of TECO 's 2023 mid-course true-up amount of ($64,989,253). See Order No.
PSC-2023-0107-PCO-El, issued March 23 , 2023, in Docket No. 20230001-El, In re: Fu el and purchased power
cost recove,y clause with generating performance incentive /a ctor.
9Document No. 01582-2024.
10oocument No. 05966-2023.
11Document No. 00322-2024.
12/d.
13 Document No. 04814-2023.
14Document No. 01529-2024.

ORDER NO. PSC-2024-0172-PCO-EI
DOCKET NO. 20240001-EI
PAGE4
The primary factor driving the change in projected 2024 fuel costs is lower assumed
pricing for natural gas. More specifically, the underlying market-based natural gas price data
used for the 2024 fuel cost projection was sourced on June 23, 2023. 15 This underlying data was
used to produce an estimated average 2024 delivered natural gas cost of approximately $4.94 per
MMBtu. 16 However, as indicated in its MCC Petition, TECO now estimates its average cost of
natural gas in 2024 will be $3.97 per MMBtu, representing a decrease of 19.6 percent. 17 The
updated cost estimate was based on the average natural gas futures/price over a five-day period
ending March 7, 2024, or roughly eight months later than the previous estimate used to set
current rates. 18 Natural gas-fired generation is projected to comprise approximately 87.0 percent
ofTECO's generation mix in 2024. 19
Recovery Period and Interest Premium
As proposed, the accounting period for 2024-applicable portion of the over-recovery is
seven months, or beginning June 2024 and ending December 2024. 20 Jurisdictional sales from
June 2024 through May 2025 in the amount of 20,292,165 (meter) megawatt-hours were used to
develop the mid-course correction factors proposed for approval in this proceeding.21
TECO utilized the 30-day AA Financial Commercial Paper Rate published by the U.S.
Federal 	Reserve to 	determine 	its actual 	2023 	and 2024 	(January 	and 	February) 	interest
amolmts. 22 The projected 2024 interest rate was developed via in-house modeling that produced
a rate of 0.391 percent (2024 monthly average). 23
Mid-Course Correction Percentage
Following the methodology prescribed in Rule 25-6.0424( l)(a), F.A.C., the mid-course
percentage is equal to the estimated end-of-period total net true-up, including interest, divided by
the current period 's total actual and estimated jurisdictional fuel revenue applicable to period, or
$137,918,831 	/ $648,701,011. 24 This calculation results in a mid-course correction level of
approximately 21.3 percent at December 31, 2024.
15 Hearing Exhibit No. 70, entered in Docket No. 2023000 I-El.
16Document No. 04814-2023.
17 Document No. 01529-2024.
18Document No. 01648-2024.
19Oocument No. 01529-2024.
20/d.
21 /d.
22 Docurnent No. 01687-2024, and The Federal Reserve System (U .S. Federal Re serve) published Commercial Paper
Rates which can be located via the following link: https: // www.federalreserve.gov/releases/cp/
23 Document Nos.01529-2024 and 0 1687-2024.
24 Oocument No. 01529-2024, Schedule E2.

ORDER NO. PSC-2024-0172-PCO-EI
DOCKET NO. 20240001-El
PAGES
Fuel Factor
TECO ' s currently approved annual levelized fuel factor beginning with the first January
2024 billing cycle is 3.837 cents per kilowatt-hour (kWh). 25 The Company is requesting to
decrease its currently-approved 2024 annual levelized fuel factor beginning June 2024 to 3.157
cents per kWh, a decrease of approximately 17.7 percent. 26
Bill Impacts
In Table 1 below, the bjll impact of the mid-course correction on a residential customer
using 1,000 kWh of electricity a month is shown. Following Table I, we address the impacts of
the mid-course correction on non-residential customers.
Table 1
Tampa Electric Company
Monthly Residential Billing Detail for the First 1,000 kWh
Currently 	Appr oved
Approved 	Cha rges D ifference 	Difference
In vo ice Co mponent 	Charges 	Beginning ($) 	(%)
M ay 2024 	June 2024
($) 	($)
Base Charge 	$87.80 	$87.80 	$0.00 	0.0%
Fuel Charge 	35.36 	28.50 	(6.86) 	( 19.4%)
Conservation Charge 	2.15 	2.1 5 	0.00 	0.0%
Capacity Charge 	0.62 	0.62 	0.00 	0.0%
Environmental Charge 	0.89 	0.89 	0.00 	0.0%
Storm Protection Plan Charge 	6.58 	6.58 	0.00 	0.0%
Clean Energy Transition Mechanism 	4.30 	4.30 	0.00 	0.0%
Storm Restoration Charn.e 	2.19 	2. 19 	0.00 	0.0%
Gross Receipts Tax 	3.59 	3.41 	ffi.lfil 	(5.0%)
Total 	$lill8 	$1 36.44 	($704\ 	(4.9%)
Source: Document No. 0 l 529-2024.
TECO ' s currently approved total residential charge for the first 1,000 kWh of usage for
May 2024 is $ 143.48. 27 Under the approved mid-course correction calculations, the current total
residential charge for the first 1,000 kWh of usage beginning in June will be $136.44, a decrease
of 4.9 percent. For non-residential rate classes, TECO reported that bill decreases based on
average levels of usage for General Service customers would range from approximately 4.4 to
4.9 	percent, 	and 	for 	General 	Service 	Demand 	customers, 	decreases 	would 	range 	from
25 Order No. PS C-2023-0343-FOF-E l.
26 Document No. 01529-2024.
27Order No. PSC -2023-0343-FOF-EI.

ORDER NO. PSC-2024-0172-PCO-EJ
DOCKET NO. 20240001-EI
PAGE6
approximately 8.1 to 11.4 percent. 28 TECO's proposed tariff sheet is shown on Appendix A to
this Order.
TECO's MCC Petition indicates a need for its fuel cost recovery factors to be revised.
More specifically, the Company's underlying 2024 projected fuel-related revenue requirement
has been reduced by $107,520,994. Additionally, the Company proposes to incorporate its 2023
period-specific final over-recovery of $30,397,837 into the current period. Thus, TECO 's current
fuel cost recovery factors shall be reduced by $137,918,831. Sales from June 2024 through May
2025 shall be used to develop the revised/mid-course correction fuel factors. The revised fuel
cost recovery factors associated with our decision are shown on Appendix A.
We therefore authorize adjustments to TECO 's fuel cost recovery factors for the purpose
of incorporating the Company's currently projected net 2024 fuel cost reduction. Accordingly,
TECO's currently authorized 2024 fuel cost recovery factors shall be reduced by $137,918,831.
Effective date
Over the last 20 years in the Fuel Clause docket, we have considered the effective date of
rates and charges of revised fuel cost factors on a case-by-case basis. We have approved rate
decreases to be effective less than 30 days after the date of our vote because the rate decrease
was in the customers' best interest to be implemented as soon as possible.29 ln its MCC Petition,
TECO proposes to decrease its 2024 fuel factors beginning with the first billing cycle of June
2024.
In response to our Staffs First Data Request, TECO stated that it would - contingent on
our approval - include a message on May customer bills explaining that the Company's proposed
rate decrease is set to begin in June billing cycle. 3°Following our determination on this matter,
TECO will update its bill notices informing customers of the fo1thcoming rate changes. The
Company has also engaged in several other outreach efforts regarding the potential bill impacts
of the proceeding. Specifically, TECO issued a press release on April 2, 2024, informing its
customers 	of the 	potential 	adjustments 	related 	to 	the 	mid-course 	co1Tection 	through 	the
Company's online media ce nter. The Company also separately contacted numerous large account
customers via telephone, voicemail, and email to inform them of the proposal and the potential
impact.31
Based on the foregoing, the fuel cost recovery factors, as shown on Appendix A, shall
become effective with the first billing cycle of June 2024.
28Document No. 01648-2024.
29Order No. PS C-2024-0091-PCO-El, issued April I0, 2024, in Docket No. 2024000 I -E I, In re: Fuel and purchased
power cost recovery clause with generating petformance incentive factor.
30 Document No. 01648-2024.
31/d.

ORDER NO. PSC-2024-01 72-PCO-EI
DOCKET NO. 20240001-Ef
PAGE7
Based on the fo regoing, it is
ORDERED by the Florida Publ ic Service Commission that adjustments shall be made to
TECO's fuel cost recovery facto rs for the purpose of incorporating the Company's currently
projected net 2024 fue l cost reduction. Accordingly, TECO's currently authorized 2024 fuel cost
recovery factors sha ll be reduced by $137,9 18 ,831. It is further
ORDERED that the fuel cost recovery factors, as shown on Appendix A to this order,
shall become effective with the first billing cycle of June 2024. It is further
ORDERED that the fuel and purchased power cost recovery clause docket is an ongo in g
proceeding and sha ll remain ope n.
RPS
By ORDER of the Florida Public Service Commission this 24th day of May. 2024.
Florida Public Service Commission
2540 Shumard Oak B ou levard
Tallahassee, Florida 32399
(850) 413-6770
www.floridapsc.com
Copies furnished: 	A copy of tnis document is
provided to the parties of record at the time of
issuance and, if applicable, interested persons.

ORDER NO. PSC-2024-0172-PCO-EI
DOCKET NO. 2024000 I-EI
PAGE8
NOTI CE 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. 	Th is 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.
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.
Any 	party 	adversely 	affected 	by 	this 	order, 	which 	is 	preliminary, 	procedural 	or
intermediate in nature, may request: (l) reconsideration within 10 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 telephone 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 review
of the final action will not provide an adequate remedy. Such review may be requested from the
appropriate court, as described above, pursuant to Rule 9.100, Florida Rules of Appellate
Procedure.

ORDER NO. PSC-2024-0172-PCO-EI
DOCKET NO. 2024000 1- EI 	Ap pendix A
PAGE9
~TECO
,-. TAMPA ELECTRIC
• 	A N IC M C R A C O MPAN Y
EIGHTY-EIGHTHSEVEN+H REVISED SHEET NO. 6.020
CA NCELS EIGHTY -SEVENTH~ REVISED SHEET NO. 6.020
ADDITIONAL BILLING CHARGES
TOTAL FUEL AND PURCHASED POWER COST RECOVERY CLAUSE: 	The total fuel and
purchased power cost recovery factor shall be applied to each kilowatt-hour delivered, and shall be
computed in accordance with the formula prescribed by the Florida Public Service Commission.
The following fuel recovery factors by rate schedule have been approved by the Commission:
RECOVERY PERIOD
(.J aA1:1ary June 2024 through December 2024 )
¢/kWh 	¢/kWn 	¢/kWh
Fuel 	Caeac il:t'. 	Environmental
Rate Schedules 	Standard 	Peak 	Off- Peak
RS (up to 1,000 kWh) 	2.8503-536 	0.062 	0.089
RS (over 1,000 kV.Jh) 	~ 	0.062 	0.089
RSVP-1 	(P1) 	3.1573.343 	0.062 	0.089
(P2) 	3. 157~ 	0.062 	0.089
(P3) 	~ 	3M3 	0.062 	0.089
(P, ) 	3.157~ 	0.062 	0.089
GS , GST 	3.157U4 	~~ 	M[l~ 	0.054 	0.084
cs 	3.157~ 	0.054 	0.084
LS-1 , LS -2 	3 1273-006 	0.012 	0.060
GSO Optional
Secondary 	3.1573-343 	0.048 	0.081
Primary 	;LIZ_53.80$ 	0.048 	0.080
Subtransm is sion 	309~ 	0.047 	0.080
¢1kWn 	$!kW 	¢/kWh
Fuel 	Caeac it:t'. 	Environmenta l
Rate Schedules 	Standard 	Peak 	Off-Peak
GSO , GSOT. SBO , SBOT
Secondary 	ll§Z3.343 	3 3234--045 	3.0873,-7.5+ 	0.20 	0.081
Primary 	3 1253-,005 	3 2904..005 	3.05~ 	020 	0.080
Subtransm is si on 	3 0943.+66 	3.2573-964 	3.0253,68i 	0.20 	0.080
GSLOPR . GSLOTPR 	3.1253.805 	3.2904,005 	30563.+-~ 	0.17 	0.071
SBLOPR , SBLDTPR 	3 1253.805 	3 2904.005 	30563 "'149 	0.17 	0.071
GSLOSU , GSLOTSU 	~ 	llfil;},Q64 	~ 	019 	0074
SBLOSU , SBLOTSU 	~ 	~~ 	~ 	0.19 	0.074
Continued to Sheet No. 6. 021
ISSUED BY: AD . Collins, President 	DATE EFFECTIVE: .J a nl:l ary 1, 202 4
57