Florida Public Service Commission native order document 03976-2026

FILED 7/8/2026
DOCUMENT NO. 03976-2026
FPSC 	- COMMISSION CLERK
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In re: Fuel and purchased power cost recovery
clause with generating performance incentive
factor.
In re: Review of the 2024-2025 outage of
Tampa Electric Company's Bayside Steam
Turbine Unit 	2.
In re: Petition for approval of revised
depreciation rates for Bayside Power Station
assets, by Tampa Electric Company.
DOCKET NO. 20260001 -EI
DOCKET NO. 20260053-EI
DOCKET NO. 20260062- EI
ORDER NO. PSC-2026-0243-PCO-EI
ISSUED: July 	8, 2026
ORDER ESTABLISHING PROCEDURE
I. 	Case Background
Two 	replacement power 	issues 	associated 	with Tampa 	Electric 	Company’s (TECO)
Bayside Unit 2 were raised in the 2026 Fuel Clause docket, Docket 20260001 -EI: 1replacement
power costs associated with an outage of TECO’ s Bayside Steam Turbine 2 lasting from October
1, 2024 	to August 	15, 	2025, and replacement power 	costs 	associated with a forced outage of
Bayside Combustion Turbine 2D from January 22, 2025 	to June 	12, 2025. TECO and the Office
of Public Counsel (OPC) 	filed a Joint Motion 	to 	spin-off the Bayside Steam Turbine 2 outage
into a separate docket on March 23, 2026, due 	to the complexity of the outage and the volume of
confidential 	utility and third-party documents that would have to be reviewed. 	This request was
granted by Order No. PSC-2026-0081-PCO-EI 2and Docket No. 20260053-EI, In 	re: Review of
the 	2024-2025 	outage 	of Tampa 	Electric 	Company’s 	Bayside 	Steam 	Turbine 	Unit 	2, was
established on April 	6, 2026.
The January 22, 2025 	to June 	12, 2025 Bayside Combustion Turbine 2D outage was not
moved to the new docket, but remained at issue in Docket No. 2026001 -EI.
On April 	15, 2026, TECO 	filed a petition seeking approval of revised depreciation rates
for 	its Bayside Power Station 	assets 	to be 	effective January 	1, 2027. 	Docket No. 20260062-EI
was assigned to the depreciation rate change petition.
On 	June 	16, 	2026, TECO 	filed 	a 	Motion 	to 	Approve 	2026 	Bayside 	Agreement
(Stipulation and 	Settlement Agreement 	dated June 	12, 	2026, 	or “2026 	Bayside Agreement”)
which proposed to resolve both Bayside Steam Turbine 2 and Bayside Combustion Turbine 2D
1 Docket No. 20260001 -EI, 	In 	re: 	Fuel and purchased power cost recovery clause with generating performance
incentive factor.
2Order No. PSC-2026-0081-PCO-EI, issued April 	1, 2026, in Docket No. 20260001-EI, In re: Fuel and purchased
power cost recovery clause with generating performance incentive factor.

ORDER NO. PSC-2026-0243-PCO-EI
DOCKET NOS. 20260001-EI, 20260053-EI, 20260062-EI
PAGE 2
outage issues and the depreciation rate changes for the Bayside Power Station assets. 	The
signatories to the 2026 Bayside Agreement are TECO and OPC. 	There are no other parties to
Docket Nos. 20260053-EI or Docket No. 20260062-EI. 	The Fuel Clause docket, Docket
20260001-EI, has seven parties in addition to TECO and OPC: Florida Public Utilities Company;
Duke Energy Florida, LLC; Florida Power & Light Company; Florida Industrial Power Users
Group; Southern Alliance for Clean Energy; PCS Phosphate; and Nucor Steel Florida. 	All of
these parties have stated that they take no position on the 2026 Bayside Agreement. That being
the case, the 2026 Bayside Agreement is an unopposed settlement.
A hearing will be held on August 4, 2026, to address the 2026 Bayside Agreement and
thereby resolve both the Bayside Steam Unit 2 and Bayside Combustion Turbine 2D replacement
power issues, as well as the proposed change to Bayside Power Station asset depreciation rates.
This Order sets forth the procedural requirements for all parties to these dockets with
respect to the hearing. 	Jurisdiction over these matters is vested in the Commission through
several provisions of Chapter 366, Florida Statutes (F.S.), including Sections 366.04, 366.05, and
366.06, F.S. This Order is issued pursuant to the authority granted by Rule 28-106.211, Florida
Administrative Code (F.A.C.), which provides that the presiding officer before whom a case is
pending may issue any orders necessary to effectuate discovery, prevent delay, and promote the
just, speedy, and inexpensive determination of all aspects of the case.
II. 	Settlement Orders
The Commission has a long history of considering settlements as a means of resolving
litigated matters. 	In particular, the complex nature of litigated matters before the Commission
incentivizes parties to work together, in the spirit of compromise, towards a resolution that can
be offered for consideration. TECO and OPC have agreed on the following major elements: base
rate freeze; replacement power issues for Bayside Steam Turbine 2 and Bayside Combustion
Turbine 2D; and Bayside Power Station depreciation rate revisions. These major elements will
be considered by the Commission in determining whether the 2026 Bayside Agreement is in the
public interest.3
III. 	Testimony and Exhibits
The parties have agreed to stipulate the direct testimony of Jeff Chronister, Kris Stryker,
and Ned Allis into the record. 	The parties have also agreed to stipulate the following into the
record:
Docket No. 20260062-EI
Staff’s First Data Request Nos. 1-13, dated June 8, 2026;
Staff’s Second Data Request Nos. 1-2, dated June 10, 2026;
3 “[W]hile the Commission need not resolve every issue independently in its final order when it is reviewing a
settlement agreement, it must nonetheless discuss the major elements of the settlement agreement and explain why it
is in the public interest.” Floridians Against Increased Rates v. Clark, 371 So.3d 905, 912 (Fla. 2023) (internal
quotations marks and citations omitted).

ORDER NO. PSC-2026-0243-PCO-EI
DOCKET NOS. 20260001-EI, 20260053-EI, 20260062-EI
PAGE 3
Exhibit No. (JC-1) – Document No. 1, Forecasted Bayside Station plant balances by
account and subaccount for the years ended 2025; Document No. 2, Forecasted Bayside
Station plant balances by account and subaccount for the years ended 2026; Document
No. 3, Forecasted Bayside Station plant depreciation reserve balances by account and
sub-account for the years ended 2025; and Document No. 4, Forecasted Bayside Station
plant depreciation reserve balances by account and subaccount for the years ended 2026 ;
Exhibit No. (NA-1) – Document No. 1, 2026 Bayside Study and Document No. 2, List of
cases in which Ned Allis submitted testimony;
Exhibit (KS-1) – Document No. 1, Bayside Unit 1 diagram and Document No. 2, Bayside
Combustion Turbine Run-hour forecast.
Docket No. 20260053-EI
OPC’s Third Set of Interrogatories Nos. 3-6 (Bates Nos. 173053-173067), ST2;
Staff’s First Data Request Nos. 1-6 (Bates Nos. 173069-17077), ST2;
Supplemental response to Staff’s First Data Request No. 5, dated June 11, 2026 (Bates
No. 173078) ST2.
Docket No. 20250001-EI
Second Supplemental response to OPC’s First Request for Production of Documents No.
1, dated October 8, 2025 (Bates Nos. 70-132) ST2;
Staff’s First Set of Interrogatories No. 1, GE Vernova Root Cause Analysis, dated May 2,
2025 (Bates Nos. 4-42) ST2.
Docket No. 20260001-EI
Revised response to OPC’s Second Set of Interrogatories No. 2, dated June 11, 2026
(Bates Nos. 30-31) CT2D;
Revised response to Staff’s First Set of Interrogatories Nos. 1b, 4a, and 4d, dated June 11,
2026 (Bates Nos. 1-18 and 23-24) ST2 and CT2D.
IV. 	Hearing Procedures
A. 	Attendance at Hearing
Unless excused by the Prehearing Officer for good cause shown, each party shall
personally appear at the hearing. Failure of a party, or that party’s representative, to appear shall
constitute waiver of that party’s issues, and that party may be dismissed from the proceeding.

ORDER NO. PSC-2026-0243-PCO-EI
DOCKET NOS. 20260001-EI, 20260053-EI, 20260062-EI
PAGE 4
B. 	Witness Panel
TECO will produce witnesses at the final hearing, sitting as a panel, who will address the
major elements in the 2026 Bayside Agreement and why it is in the public interest.
C. 	Cross-Examination
The parties shall avoid duplicative or repetitious cross-examination.
V. 	Post-Hearing Procedures
If the Commission does not render a bench decision at the hearing, it may allow each
party to file a post-hearing statement of issues and positions pursuant to the schedule set forth in
Section VI of this Order. In such event, a summary of each position, set off with asterisks, shall
be included in that statement. 	If a post-hearing statement is required and a party fails to file in
conformance with Rule 28-106.215, F.A.C., that party shall have waived all issues and may be
dismissed from the proceeding.
Further, pursuant to Rule 28-106.215, F.A.C., a party’s proposed findings of fact and
conclusions of law, if any, statement of issues and positions, and brief, shall together total no
more than 40 pages and shall be filed at the same time, unless modified by the Presiding Officer.
VI. 	Controlling Dates
The following dates are established for Commission consideration of the 2026 Bayside
Agreement:
Hearing 	August 4, 2026
Post-Hearing Briefs, if any 	August 14, 2026
Based on the foregoing, it is
ORDERED by Commissioner Gary F. Clark, as Prehearing Officer, that the provisions of
this Order shall govern this proceeding unless modified by the Commission.

ORDER NO. PSC-2026-0243-PCO-EI
DOCKET NOS. 20260001-EI, 20260053-EI, 20260062-EI
PAGE 5
By ORDER of Commissioner Gary F. Clark, as Prehearing Officer, this 8th day of July,
2026.
GARY F. CLARK
Commissioner and Prehearing Officer
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
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-2026-0243-PCO-EI
DOCKET NOS. 20260001-EI, 20260053-EI, 20260062-EI
PAGE 6 	ATTACHMENT A
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In 	re: Fuel and Purchased Power Cost
Recovery 	Clause 	with 	Generating
Performance Incentive Factor
DOCKET NO. 20260001-EI
DOCKET NO. 20260053-EI
DOCKET NO. 20260062-EI
In re: Review of the 2024-2025 Outage of
Tampa 	Electric 	Company's 	Bayside
Steam Turbine Unit 2
In 	re: 	Petition 	for Approval of Revised
Depreciation Rates 	for Bayside Power
Station 	Assets 	by Tampa 	Electric
Company
STIPULATION AND SETTLEMENT AGREEMENT
THIS AGREEMENT is dated this 12 th of June, 2026 and is by and between Tampa
Electric Company (“Tampa Electric" or the “company") and the Office of Public Counsel
(“OPC”). Tampa Electric and OPC shall be referred to collectively as the “Parties", and
the term “Party” shall be the singular form of the term “Parties”. This agreement shall be
referred to as the “2026 Bayside Agreement”.
Recitals
Tampa Electric filed a Petition for Approval of Revised Depreciation Rates for
Bayside Power Station Assets on 	April 15, 2026, which was assigned Docket No.
20260062-EI (“Bayside Depreciation Docket”). Therein, the company requested new
depreciation 	rates that 	reflect longer remaining 	lives and 	later retirement dates 	for
Bayside Power Station assets resulting from the retrofit of the steam turbines for Bayside
Units 	1 and 2 in 2026 and 2025, respectively (“Proposed Bayside Depreciation Rates”).
1

ORDER NO. PSC-2026-0243-PCO-EI
DOCKET NOS. 20260001-EI, 20260053-EI, 20260062-EI
PAGE 7
Docket No. 20260001 -El 	is the Florida Public Service Commission’s (“FPSC” or
“Commission”) annual proceeding to address fuel and purchased power cost recovery for
Florida electric public 	utilities (“Fuel Docket”). The Parties and FPSC Staff 	(“Staff’)
identified two replacement power issues in the Fuel Docket, one of which was associated
with an unplanned outage involving the Bayside 2 Steam Turbine (“Bayside ST Outage"),
which was spun off and is currently under consideration in Docket No. 20260053-El. The
other replacement power issue is associated with a forced outage of Bayside Combustion
Turbine 2D from January 22, 2025 through June 12, 2025 (“Bayside CT2D Outage”),
which is currently under consideration in the Fuel Docket.
OPC and the Staff have conducted extensive discovery addressing the depreciation
and replacement power 	issues 	in the three dockets. The company has answered
interrogatories and 	data 	requests and produced 	approximately 14,000 documents
(approximately 175,000 individual pages) in support of its positions on the prudence of its
actions 	for the two outages and the reasonableness of the company’s depreciation
proposals. The Parties have undertaken to resolve these issues by agreement to: 	(1 )
protect the 	interests of the company's customers and the company, 	(2) promote
regulatory 	efficiency, and 	(3) avoid the inherent 	risks, 	uncertainties, dedication 	of
resources, and costs of further litigation.
The Parties have entered into this 2026 Bayside Agreement 	in compromise of
positions in accordance with their rights and interests under Chapters 120, 350, and 366,
Florida Statutes, as applicable, and believe that this 2026 Bayside Agreement completely
and fairly resolves all of the issues presented in Docket Nos. 20260053-El and 20260062-
El and the Bayside CT2D Outage issue 	in Docket No. 20260001-EI, is 	in the public
2

ORDER NO. PSC-2026-0243-PCO-EI
DOCKET NOS. 20260001-EI, 20260053-EI, 20260062-EI
PAGE 8
interest, determines and approves reasonable depreciation rates for Bayside Power
Station assets, will result in fuel and purchased power cost recovery factors that are fair,
just, and reasonable, and will not result in changes to the company’s currently approved
base rates and charges.
As part of a negotiated exchange of consideration among the Parties to this 2026
Bayside Agreement, each Party has agreed 	to concessions 	to the other with the
expectation, intent, and understanding that all provisions of the 2026 Bayside Agreement,
upon approval by the Commission, will be enforced by the Commission as to all matters
addressed herein with respect to all Parties.
NOW, THEREFORE, in consideration of the foregoing, and the mutual covenants
contained herein, which the Parties agree and acknowledge constitute good and valuable
consideration, the Parties hereby stipulate and agree as follows:
Terms
1. 	Base Rate Freeze . Except for the rate and tariff changes to implement the
company’s 2027 Subsequent Year Adjustment as approved by Order No. PSC-2025-
0038-FOF-EI, dated February 3, 2025, 	in Docket No. 20240026-EI (“2024 Rate Case
Final Order”), the company may not petition to change any of 	its general base rates,
charges, or credits for retail electric service with an effective date earlier than January 1,
2028. This provision shall not prevent the company from filing for approval, or limit the
Commission’s authority to act, on large load tariffs as required by Section 3 of Chapter
2026-65, Laws of Florida, as codified in Section 366.043, Florida Statutes (“Data Center
Law”).
3

ORDER NO. PSC-2026-0243-PCO-EI
DOCKET NOS. 20260001-EI, 20260053-EI, 20260062-EI
PAGE 9
2. 	Replacement Power Issues . The Parties agree that the replacement fuel
and purchased power issues associated with the Bayside ST Outage and Bayside CT2D
Outage, 	in Docket Nos. 20260053-EI and 20260001 -El, respectively, shall be resolved
by reducing the company's recoverable fuel and purchased power expense in Docket No.
20260001-EI by a combined total of $1 0 million. This amount shall be a full and complete
satisfaction of the company’s 	liability for replacement fuel and purchased power issues
associated with the Bayside ST Outage and Bayside CT2D Outage. This amount 	is a
negotiated amount agreed to by the Parties based on their understanding and assessment
of the litigation risks associated with the issues in the cases and was not based on specific
adjustments with 	identified 	dollar amounts or a prudence determination on the merits
attributable to the advocacy positions of either Party
3. 	Depreciation Issues . The Parties agree, as a full and complete resolution of
the issues in Docket No. 20260062-EI, that the Proposed Bayside Depreciation Rates are
reasonable, that the Commission should find that they are reasonable, and that the
Commission should approve the Proposed Bayside Depreciation Rates to be effective
July 1,2026.
4. 	Approval . The provisions of this 2026 Bayside Agreement are contingent on
approval of this agreement as presented and in 	its entirety by the Commission without
modification. The Parties agree and ask that the Commission find that: 	(a) this 2026
Bayside Agreement is in the public interest; (b) will result in fuel and purchased power
cost recovery factors that are 	fair, just, and reasonable; 	(c) will result in depreciation
parameters and 	rates associated with the Bayside Power Station Assets that are
reasonable, and (d) will not result in changes to the company’s currently approved base
4

ORDER NO. PSC-2026-0243-PCO-EI
DOCKET NOS. 20260001-EI, 20260053-EI, 20260062-EI
PAGE 10
rates and charges. The Parties further agree that they will support this 2026 Bayside
Agreement, and that they will not request or support any order, relief, outcome, or result
in conflict with the terms of this 2026 Bayside Agreement in any future administrative or
judicial proceeding 	relating 	to, reviewing, or challenging the establishment, approval,
adoption, or implementation of this 2026 Bayside Agreement or the subject matter hereof.
Neither Party shall seek appellate review of any Commission order approving this 2026
Bayside Agreement.
5. 	No 	Precedential 	Value . 	This 2026 	Bayside Agreement 	reflects 	a
compromise of disputed claims and shall not be construed as a finding of, or an admission
by, any Party of any 	liability, wrongdoing, or imprudence. No Party 	will assert 	in any
proceeding before the Commission that this 2026 Bayside Agreement or any of the terms
in the 2026 Bayside Agreement 	shall have any 	precedential 	value. The 	Parties'
agreement to the terms in this 2026 Bayside Agreement shall be without prejudice to any
Party's ability to advocate a different position in future proceedings not involving this 2026
Bayside Agreement. The Parties further expressly agree that no individual provision, by
itself, necessarily represents a position of any Party 	in any future proceeding, and the
Parties further agree that no Party will assert or represent in any future proceeding in any
forum that another Party endorses any specific provision of this 2026 Bayside Agreement
by virtue of that Party’s signature on, or participation in, this 2026 Bayside Agreement. 	It
is the intent of the Parties to this 2026 Bayside Agreement that the Commission’s approval
of all the terms and provisions of this 2026 Bayside Agreement is an express recognition
that no individual term or provision, by itself, necessarily represents a position, in isolation,
of any Party or that a Party to this 2026 Bayside Agreement endorses a specific provision,
5

ORDER NO. PSC-2026-0243-PCO-EI
DOCKET NOS. 20260001-EI, 20260053-EI, 20260062-EI
PAGE 11
in isolation, of this 2026 Bayside Agreement by virtue of that Party’s signature on, or
participation 	in, this 2026 Bayside Agreement. However, nothing 	in this paragraph shall
impact the continuing validity of this 2026 Bayside Agreement.
6. 	Final Order . The Parties intend and agree to request that the Commission's
final order approving this 2026 Bayside Agreement find that approval of this 2026 Bayside
Agreement in its entirety is in the public interest and fairly resolves all matters as specified
in this agreement pursuant to and in accordance with Section 120.57(4), Florida Statutes,
and that the Docket Nos. 20260053-EI and 20260062-EI will be closed effective on the
date the Commission's order approving this 2026 Bayside Agreement becomes final.
7. 	Execution . This 2026 Bayside Agreement may be executed in counterpart
originals, and a facsimile or electronic scan of an original signature shall be deemed an
original.
[Remainder of Page Intentionally Left Blank]
6

ORDER NO. PSC-2026-0243-PCO-EI
DOCKET NOS. 20260001-EI, 20260053-EI, 20260062-EI
PAGE 12
IN WITNESS WHEREOF, the Parties evidence their acceptance and agreement
with the provisions of this 2026 Bayside Agreement by their signature(s):
DATED this 12 th Day of June, 2026.
Tampa Electric Company
3600 Midtown Drive
Tampa, FL 33607
By: _ 	, 	_
Archie Collins, President and Chief Executive Officer
Office of Public Counsel
Walt Trierweiler, Public Counsel
c/o The Florida Legislature
111 West Madison Street, Room 812
Tallahassee, FL 32399-1400
By:
Walt Trierweiler, Public Counsel
7