Florida Public Service Commission native order document 02409-2023

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FILED 3/27/2023 DOCUMENT NO. 02409-2023 FPSC - COMMISSION CLERK
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In re: Petition for recovery of costs associated with named tropical systems during the 2019- 2022 hurricane seasons and replenishment of storm reserve, by Tampa Electric Company.
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DOCKET NO. 20230019-EI ORDER NO. PSC-2023-0116-PCO-EI ISSUED: March 27, 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
ORDER APPROVING TAMPA ELECTRIC COMPANY'S INTERIM STORM COST RECOVERY CHARGE
BY THE COMMISSION:
BACKGROUND
On January 23, 2023, Tampa Electric Company (TECO or Company) filed a petition for a limited proceeding seeking authority to implement an interim storm restoration recovery charge to recover $131 million for the incremental restoration costs related to Tropical Storms Alberto, Nestor, and Eta, and Hurricanes Dorian, Elsa, Ian, and Nicole, as well as the replenishment of its storm reserve (collectively, the Storms). Included in the $131 million is interest charged for Hurricanes Ian and Nicole. Pursuant to the 2021 Stipulation and Settlement Agreement (2021 Settlement) approved by us in Order No. PSC-2021-0423-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.1 TECO requested a 12-month recovery period, applied to all bills starting with the first billing cycle of April 2023.
We have jurisdiction over this matter pursuant to Sections 366.04, 366.05, 366.06, and 366.076, Florida Statutes.
DECISION
TECO filed a petition to seek recovery of $131 million in incremental storm restoration costs for the Storms as well as the replenishment of its storm reserve. In its petition, TECO requested to replenish the storm reserve to $55.8 million.
1Order No. PSC-2021-0423-S-EI, issued November 10, 2021, in Docket No. 20210034-EI, In re: Petition for rate increase by Tampa Electric Company.

ORDER NO. PSC-2023-0116-PCO-EI
DOCKET NO. 20230019-EI
PAGE 2
The petition was filed pursuant to the provisions of the 2021 Settlement. Pursuant to
paragraph 8(a) of the 2021 Settlement, TECO is authorized to seek recovery of costs associated
with any tropical storms named by the National Hurricane Center. Recovery of storm costs will
begin, on an interim basis, 60 days following the filing of a petition for recovery.
In its petition, TECO asserted that it incurred approximate recoverable costs in the
amounts of $7,499,858 for Hurricane Dorian; $1,874,575 for Hurricane Elsa; $119,216,291 for
Hurricane Ian; $1,152,980 for Hurricane Nicole; $1,944 for Tropical Storm Alberto; $8,282 for
Tropical Storm Nestor; and $729,515 for Tropical Storm Eta. The remaining $397,518 is for
GPS software used to track vendor crews identified by TECO as ARCOS, implemented pursuant
to the 2019 Settlement Agreement under the provision of Future Process Improvements.2 The
Company further asserted 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 this Commission at a
later date.
Based on our review of the information provided by TECO 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, 	TECO 	shall 	be 	required 	to 	file
documentation of the storm costs for our review and true-up of any excess or shortfall.
All funds collected 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. TECO requested a 12-month collection
period from April 2023 through March 2024 for Interim Storm Cost Recovery Charges of
$130,881,964 related to the Storms, including the ARCOS cost. We have reviewed TECO’s
three most recent annual reports filed with us (2021, 2020, and 2019) 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. 	TECO’s 	financial
information demonstrates the Company has a deficient level of liquidity; that is, current assets
are less than current liabilities. However, the Company has sufficient levels of ownership equity,
profitability, and interest coverage to support a potential refund of $131 million. TECO’s
average net income for the three years 2021, 2020, and 2019 is almost three times the requested
corporate undertaking amount ($352 million vs. $131 million). Moreover, it is improbable TECO
will be required to refund the entire requested amount.
2Order No. PSC-2019-0234-AS-EI, issued June 14, 2019, in Docket No. 20170271-EI, In re: Petition for recovery
of costs associated with named tropical systems during the 2015, 2016, and 2017 hurricane seasons and
replenishment of storm reserve subject to final true-up, Tampa Electric Company.

ORDER NO. PSC-2023-0116-PCO-EI
DOCKET NO. 20230019-EI
PAGE 3
For these reasons, we find that TECO has adequate resources to support a corporate
undertaking in the amount requested and that a corporate undertaking of $131 million is
acceptable. This brief financial analysis is only appropriate for deciding if the Company can
support a corporate undertaking in the amount proposed and will not be considered in our
evaluation of other issues in this proceeding.
TECO is seeking approval of interim storm cost recovery surcharges associated with the
Storms. The proposed interim storm cost recovery surcharges are shown in proposed Tariff Sheet
No. 6.024, found in Attachment A to this order. The surcharges would be applicable to all rate
classes. The Company has also proposed changes to several other tariffs to include references to
the proposed interim storm cost recovery surcharge, as well as a definition for the storm
surcharge in its technical terms and abbreviations section. These tariff modifications are included
in Exhibits 6 and 7 to TECO’s petition.
TECO explained that it has allocated the storm cost recovery amount to the rate classes
consistent with the rate design approved in the 2021 Settlement. 3 We have reviewed the storm
cost recovery allocation and calculation of rates and it appears that TECO has calculated rates in
accordance with the 2021 Settlement, using projected billing determinants for the recovery
period.
The interim storm restoration recovery charge calculations are shown in Exhibit 5 to
TECO’s petition. For residential customers, the surcharge would be 1.022 cents per kilowatt-
hour (kWh), which would equate to $10.22 on a 1,000 kWh residential bill.
Based on our review, we hereby approve TECO’s proposed interim storm restoration
recovery charge tariff, as shown in Attachment A to this order, effective with the first billing
cycle of April 2023 through March 2024. We also approve TECO’s other tariff revisions which
refer to the proposed storm surcharge. The storm cost recovery surcharge shall be included in the
non-fuel energy charge on customer bills. Furthermore, the interim storm restoration recovery
charge shall be subject to a final true-up.
Based on the foregoing, it is
ORDERED by the Florida Public Service Commission that Tampa Electric Company’s
limited petition for recovery of incremental storm restoration costs related to Tropical Storms
Alberto, 	Nestor, 	and 	Eta, 	and 	Hurricanes 	Dorian, 	Elsa, 	Ian, 	and 	Nicole 	through 	the
implementation of an interim storm restoration recovery charge subject to refund is hereby
granted. Once the total actual storm costs are known, TECO shall file documentation of the total
storm costs for our review and true-up of any excess or shortfall. It is further
ORDERED that the appropriate security to guarantee the funds collected subject to
refund is a corporate undertaking in the amount of $131 million. It is further
3Order No. PSC-2021-0423-S-EI, issued November 10, 2021, in Docket No. 20210034-EI, In re: Petition for rate
increase by Tampa Electric Company.

ORDER NO.PSC-2023-0116-PCO-EI
DOCKET NO. 202300 19- EI
PAGE4
ORDERED that Tampa Elect ri c Co mpan y's proposed inter im sto rm restoration recovery
charge tariff, as shown on Attac hm e nt A of this o rd er, is hereby appro ved effec ti ve w ith th e first
billing cyc le of April 2023 and ending the earlier of full recovery or with the last billing cycle of
March 2024, whichever occurs first. This inter im storm restoration recovery char ge sha ll be
subj ~ct to final true-up. It is further
ORDERED that this docket shall remain open pending fin al reconciliation of actual
recoverab le sto rm costs with the amount collected pursuant to the interim storm re storation
recovery charge and the calculation of a re fund or additional char ge if wa rranted.
MRT
By ORDER of the Florida Public Service Co mmi ssion thi s 27 th day of March, 2023.
fl ~-	--ADAM J. T/ ITZyt~N
Com mi ss ion Cler,k
Florida Public Service Co mmi ssion
2540 Shumard Oak Boulevard
Tallahassee, Florida 32399
(850) 413-6770
www. floridapsc .com
Copies furnished: 	A copy of this d oc um e nt is
provided to th e parties of reco rd at the time of
is sua nc e and, if applicable, interested persons.

ORDER NO. PSC-2023-0116-PCO-EI
DOCKET NO. 20230019-EI
PAGE 5
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.
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: (1) 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-2023-0116-PCO-EI Attachment A
DOCKET NO. 20230019-EI
PAGE 6

Be TECO ORIGINAL SHEET NO. 6.024
ag TAMPA ELECTRIC

AN EMERA COMPANY

STORM SURCHARGE

Storm Surcharge: The following charges shall be applied to each kilowatt-hour delivered and
billed_on_monthly bills from April 2023 through March 2024. The following factors by rate
schedule were calculated using the approved formula and allocation method approved by the
Florida Public Service Commission

Rate Schedules. Energy Rate ¢/kWh
RS (all tiers), RSVP-1 (all pricing periods) 1.022
GS, GST (all pricing periods), CS 1.061
GSD, GSDO, SBD, GSDT and SBDT (all pricing periods) 0.238
GSLDPR, GSLDTPR, SBLDPR and SBLDTPR (all pricing periods) 0.127
GSLDSU, GSLDTSU, SBLDSU_and SBLDTSU (all pricing periods 0.028
LS-1, LS-2 0.326

ISSUED BY:_A. D. Collins, President DATE EFFECTIVE: