Florida Public Service Commission native order document 02384-2023

OCR transcription for search; preserved printed pages are authoritative

FILED 3/24/2023 DOCUMENT NO. 02384-2023 FPSC - COMMISSION CLERK
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In re: Fuel and purchased power cost recovery clause with generating performance incentive factor.
DOCKET NO. 20230001-EI ORDER NO. PSC-2023-0112-PCO-EI ISSUED: March 24, 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 DUKE ENERGY FLORIDA, LLC'S MID-COURSE CORRECTION
BY THE COMMISSION:
BACKGROUND
On January 23, 2023, Duke Energy Florida, LLC (DEF or Company), filed for a mid- course correction of both its 2023 fuel and capacity cost recovery factors.1 This petition was amended on February 27, 2023 (MCC Petition).2 DEF's currently-effective 2023 fuel and capacity factors were approved last year at the November 17-18, and December 6, 2022 final hearing.3 Underlying the approval of DEF's 2023 factors was our review of the Company's projected 2023 fuel- and capacity-related costs. These costs are recovered through fuel and capacity cost recovery factors that are set/reset annually in this docket. However, during the 2022 annual fuel clause cycle, DEF proposed not to include the majority of its unrecovered 2022 fuel costs in the fuel factors approved at the December 6th final hearing. Instead, DEF indicated it would be petitioning for recovery of those costs through a separate filing. The primary rationale for this course of action was that the extreme volatility of natural gas prices in 2022 had made a reliable projection of final 2022 costs impractical. We subsequently ordered DEF's filing to be submitted on or before January 23, 2023.4
Mid-Course Corrections
We use mid-course corrections 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 10 percent. The notification of a 10 percent cost-to-revenue variance shall include a petition
'Document No. 00417-2023.
2Document No. 01366-2023.
3Order No. PSC-2023-0026-FOF-EI, issued January 6, 2023, in Docket No. 20230001-EI, In re: Fuel and purchased power cost recovery clause with generating performance incentive factor.
4Order No. PSC-2023-0026-FOF-EI.

ORDER NO. PSC-2023-0112-PCO-EI
DOCKET NO. 20230001-EI
PAGE 2
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 practical.
DEF’s Petition for Mid-Course Correction
Through its MCC Petition, DEF is proposing a mid-course correction of its 2023 fuel and
capacity charges. 	Specifically, we are being asked to approve increases to DEF’s fuel cost
recovery factors to incorporate its currently-projected 2023 end-of-year fuel cost under-recovery
in the amount of approximately $469 million. 	With respect to capacity costs, the Company is
proposing to incorporate into rates the 2022 tax-savings effect of the Inflation Reduction Act
(IRA) of 2022 in the amount of approximately $11.7 million.5
The Company is requesting that its revised fuel and capacity factors and associated tariff
sheet No. 6.105 become effective beginning with the first billing cycle of April 2023. 	Also
included in the Company’s proposed tariff are the (proposed) rate adjustments related to its
recovery of storm restoration (to include reserve replenishment) costs related to Hurricanes: Elsa,
Eta, Ian, Isaias, and Nicole, and Tropical Storm Fred, as petitioned for in Docket No. 20230020-
EI.6 However, while the rate adjustments are addressed on proposed tariff sheets No. 6.105 and
No. 6.106 in Appendix A to this order, neither the Interim Storm Charge nor its associated rates
are at issue in this proceeding.
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
DEF participated in our most-recent fuel hearing which took place during November 17-
18, 2022, and December 6, 2022. 	The fuel order stemming from that proceeding set the
Company’s fuel and capacity cost recovery factors effective with the first billing cycle of
January 2023.7 However, as discussed below, the currently-authorized fuel cost recovery factors
do not include certain deferred fuel costs that were primarily incurred in 2022. In support of the
deferral, DEF argued that the 2022 natural gas market was so volatile that its total annual fuel
(natural gas) cost could not be accurately predicted and that it was better to wait and use actual
costs for setting rates with respect to the 2022 under-recovery. 	Some factors that influenced
natural gas prices in 2022 include reduced storage levels, strong liquefied natural gas exports,
global military conflict, and capital/expenditure discipline being practiced by drilling companies.
5Retroactively effective to January 1, 2022, the IRA expanded federal income tax benefits for renewable energy by
allowing owners of solar projects which begin construction before 2025 the option to elect to receive Production Tax
Credits rather than Investment Tax Credits for eligible facilities. The tax savings noted through-out this order were
produced by the Company electing to record Production Tax Credits rather than Investment Tax Credits for eligible
facilities.
6See Document No. 00418-2023 for further information regarding DEF’s Interim Storm Charge request.
7Order No. PSC-2023-0026-FOF-EI.

ORDER NO. PSC-2023-0112-PCO-EI
DOCKET NO. 20230001-EI
PAGE 3
DEF Fuel and Purchased Power Mid-Course Correction
DEF filed for a mid-course correction of its fuel and capacity charges on January 23,
2023.8 This filing was amended on February 27, 2023. 9 The Company’s amended petition and
supporting documentation satisfy the filing requirements of Rule 25-6.0424(1)(b), F.A.C. 	In
accordance with the noticing requirement of Rule 25-6.0424(2), F.A.C., DEF filed a letter on
March 29, 2022, informing usthat it was projecting an under-recovery position of greater than 10
percent for the recovery period ending on December 31, 2022.10 	However, in analyzing
settlement prices for natural gas, the Company determined that the continuing price volatility
warranted deferring a decision to file for a mid-course correction.
The Company developed its proposed mid-course correction factors using twelve months
of forecasted sales data (April 2023 through March 2024). However, the factors proposed in this
proceeding are currently contemplated to be charged for 9 months in 2023. 	As is typical
procedure, later this year newly developed 12-month-applicable factors will be proposed for
authorization to begin with the first billing cycle of January 2024.
DEF Capacity Mid-Course Correction
DEF filed for a mid-course adjustment of its capacity charges along with its fuel mid-
course correction. 	DEF’s capacity proposal is not being driven by a cost recovery position
outside the absolute value of 10 percent as calculated using the methodology prescribed in Rule
25-6.0424(1)(a), F.A.C. 	The purpose of this proposed change is to expeditiously return to
customers the benefit of the 2022 tax savings produced by the IRA. 	The estimated 2022 tax
benefit is $11,668,131, and constitutes the amount by which DEF proposes to reduce 2023
capacity costs. 	DEF proposes to refund this amount over a 9-month period from April through
December 2023. 	We find that this treatment of the 2022 IRA tax savings is appropriate and
hereby approve it.
Actual Period-Ending 2022 Fuel Cost Recovery Position
DEF’s actual fuel cost recovery position at the end of 2022 is an under-recovery of
($1,354,975,755), of which $175,789,361 has been previously incorporated into 2023 rates.11
This $175,789,361 amount consists of the second half, or $123,418,788, associated with the
“Rate Mitigation Agreement” between DEF and the Office of Public Counsel, the Florida
Industrial Power Users Group, the Florida Retail Federation, Nucor Steel Florida, Inc., the
Southern Alliance for Clean Energy, and White Springs Agricultural Chemicals, Inc. d/b/a PCS
Phosphate.12 	The first half of the Rate Mitigation Agreement amount was collected in 2022.
8Document No. 00417-2023.
9Document No. 01366-2023.
10 Document No. 02134-2022.
11 Order No. PSC-2023-0026-FOF-EI.
12 See Document No. 10082-2021, filed in Docket No. 20210001-EI, In re: Fuel and purchased power cost recovery
clause with generating performance incentive factor, Docket No. 20210097-EI, In re: Petition for Limited
Proceeding for Recovery of Incremental Storm Restoration Costs Related to Hurricane Eta and Isaias, by Duke

ORDER NO. PSC-2023-0112-PCO-EI
DOCKET NO. 20230001-EI
PAGE 4
The remainder, in the amount of $52,370,573, represents the carry forward from DEF’s 2022
mid-course correction proceeding.13
Increased pricing for natural gas was the primary driver of the 2022 under-recovery.
More specifically, the Company estimated an annual natural gas cost of $5.20 per million British
thermal unit (MMBtu) in its last mid-course correction filing and derivation of 2022 customer
fuel rates.14 	This figure includes delivery costs. 	However, as indicated in the Company’s
December 2022 A-Schedule, DEF’s average 2022 cost of natural gas was $8.50 per MMBtu,
representing 	a 	difference 	of 	63.5 	percent.15 	Natural 	gas-fired 	generation 	comprised
approximately 85.7 percent of DEF’s generation mix in 2022.16
Projected 2023 Fuel Cost Recovery Position
DEF’s 2023 fuel-related revenue requirement has decreased substantially since the filing
of its last cost projection in September 2022.17 	More specifically, in DEF’s updated projection
DEF’s estimated 2023 fuel-related costs are reduced by $710,224,788. Thus, taking into account
the net carry forward from 2022, the proposed incremental amount for inclusion in rates is
($468,961,606).
The primary factor driving the change in projected 2023 fuel costs is lower assumed
pricing for natural gas. 	More specifically, the underlying market-based natural gas price data
used for the original 2023 fuel cost projection was sourced on June 13, 2022. 18 	This data was
used to produce an estimated average 2023 delivered natural gas cost of $8.07 per MMBtu.19
However, as indicated in its MCC Petition, DEF now estimates its average cost of natural gas in
2023 will be $4.76 per MMBtu, representing a decrease of 41.0 percent.20 	The updated cost
estimate was based on natural gas futures/prices sourced on February 14, 2023, or roughly eight
months later than the previous estimate used to set current rates.21
Energy Florida, LLC, and Docket No. 20210010-EI, In re: Storm Protection Plan Cost Recovery Clause. This
motion was ultimately adjudicated in Docket No. 20210158-EI.
13 Order No. PSC-2022-0061-PCO-EI, issued February 17, 2022, in Docket No. 20220001-EI, In re: Fuel and
purchased power cost recovery clause with generating performance incentive factor.
14 Document No. 13092-2021.
15 Document No. 00282-2023.
16Id.
17 Document No. 05978-2022.
18 Document No. 01366-2023.
19 Document No. 05978-2022.
20 Document No. 01366-2023.
21Id.

ORDER NO. PSC-2023-0112-PCO-EI
DOCKET NO. 20230001-EI
PAGE 5
Recovery Period and Interest Premium
As proposed, DEF’s recovery period for its 2022 under-recovery of fuel costs is over 12
months of sales (beginning April 2023 and ending March 2024). 22 DEF utilized the 30-day AA
Financial Commercial Paper Rate to determine its 2022 interest amount.23 	The projected 2023
monthly interest rate was estimated for all months by using the January 2023 average of the 30-
day AA Financial Commercial Paper Rate of 0.374 percent.24
Mid-Course Correction Percentage
Following the methodology prescribed in Rule 25-6.0424(1)(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
($468,961,606) / $2,281,046,501.25 	This calculation results in a mid-course correction level of
(20.6) percent at December 31, 2023.
Fuel Factor
DEF’s currently-approved annual levelized fuel factor beginning with the first January
2023 billing cycle is 6.257 cents per kilowatt-hour (kWh). 26 	The Company is requesting to
increase its currently-approved 2023 annual levelized fuel factor beginning April 2023 to 7.445
cents per kWh, or by 19.0 percent.27
Bill Impacts
Table 1 below shows the bill impact on a typical residential customer using 1,000 kWh of
electricity a month associated with the current and proposed service charges. 	This table also
includes the storm-related cost recovery proposal that, if approved, would begin in April 2023.28
22 Document No. 01366-2023.
23 Document No. 00864-2023.
24 Document Nos. 00864-2023 and 01368-2023, and The Federal Reserve System (U.S. Federal Reserve) published
Commercial Paper Rates which can be located via the following link: https://www.federalreserve.gov/releases/cp/
25 The estimated end-of-period total net true-up, or the mid-course correction amount being sought for recovery in
this proceeding, consists of the 2022 under-recovery of ($1,354,975,755), the Rate Mitigation Plan amount for 2023
of $123,418,788, the 2022 mid-course correction carry forward amount of $52,370,573, and the change in projected
2023 fuel-related costs of $710,224,788, for a total of ($468,961,606).
26 Order No. PSC-2023-0026-FOF-EI.
27 Document No. 01366-2023.
28 Document No. 00418-2023.

ORDER NO. PSC-2023-0112-PCO-EI
DOCKET NO. 20230001-EI
PAGE 6
Table 1
Monthly Residential Billing Detail for the First 1,000 kWh
Invoice Component
Currently-
Approved
Charges
Beginning
March 2023
($)
Proposed
Charges
Beginning
April
2023
($)
Difference
($)
Difference
(%)
Base Charge 29 	$78.82 	$78.82 	$0.00 	0.0%
Fuel Charge 	59.61 	71.27 	11.66 	19.6%
Capacity Charge 	13.28 	12.85 	(0.43) 	(3.2%)
Conservation Charge 	3.20 	3.20 	0.00 	0.0%
Environmental Charge 	0.22 	0.22 	0.00 	0.0%
Storm Protection Plan Charge 	4.14 	4.14 	0.00 	0.0%
Interim Storm Charge 30 	0.00 	13.14 	13.14 	100.0%
Asset Securitization Charge 	2.03 	2.03 	0.00 	0.0%
Gross Receipts Tax 	4.25 	4.89 	0.64 	15.1%
Total 	$165.55 	$190.56 	$25.01 	15.1%
Source: MCC Petition, Schedule E-10, and FPSC Division of Economics.
DEF’s current total residential bill for the first 1,000 kWh of electricity usage in March of
2023 is $165.55. 	If DEF’s mid-course correction proposal is approved, the current total
residential bill for the first 1,000 kWh of electricity usage, beginning April 2023, will be
$190.56. 	This amount includes the proposed interim storm charge as filed in Docket No.
20230020-EI. This represents an increase of 15.1 percent. For non-residential customers, DEF
reported that based on average levels of usage and specific rate schedules, bill increases for
small- and medium-size commercial customers would be 15.0 percent and 15.5 percent,
respectively. Bill increases for large-size commercial customers would be 16.6 percent, and 17.7
percent for industrial customers.31
21 Month Recovery
At our direction, the effect on monthly bills of lengthening the proposed recovery period
from 12 to 21 months has also been calculated. The total base/unrecovered 2022 fuel cost is the
same under the 21-month scenario as DEF’s proposed 12 month recovery scenario. 	However,
lengthening the time period over which the 2022 fuel cost under-recovery is recovered by the
Company lowers the monthly fuel charge but results in increased carrying costs.
29 DEF’s 2023 base rates for December 2022 – February 2023 is $89.39; for March 2023 – November 2023 is
$78.82. The weighted average is equal to: (($89.39 * 3) + (78.82 * 9)) / 12 = $81.46.
30 Subject to our approval in Docket No. 20230020-EI.
31 Document No. 01394-2023.

ORDER NO. PSC-2023-0112-PCO-EI
DOCKET NO. 20230001-EI
PAGE 7
Table 2 below shows the bill impact on a typical residential customer using 1,000 kWh of
electricity a month associated with this optional recovery scenario.
Table 2
21 Month Recovery Residential Billing Detail for the First 1,000 kWh
Invoice Component
Currently-
Approved
Charges
Beginning
March 2023
($)
21 Month
Charges
Beginning
April
2023
($)
Difference
($)
Difference
(%)
Base Charge 32 	$78.82 	$78.82 	$0.00 	0.0%
Fuel Charge 	59.61 	53.02 	(6.59) 	(11.1%)
Capacity Charge 	13.28 	12.85 	(0.43) 	(3.2%)
Conservation Charge 	3.20 	3.20 	0.00 	0.0%
Environmental Charge 	0.22 	0.22 	0.00 	0.0%
Storm Protection Plan Charge 	4.14 	4.14 	0.00 	0.0%
Interim Storm Charge 33 	0.00 	13.14 	13.14 	100.0%
Asset Securitization Charge 	2.03 	2.03 	0.00 	0.0%
Gross Receipts Tax 	4.25 	4.41 	0.16 	3.8%
Total 	$165.55 	$171.83 	$6.28 	3.8%
Source: Document No. 01387-2023, Schedule E-10.
DEF’s proposed fuel charge increase results in a “first-tier residential” fuel charge, (i.e.,
residential charge for the first 1,000 kWh of energy sales) of 7.127 cents per kWh. 	This factor
produces a corresponding monthly fuel charge of $71.27. With respect to the optional recovery
scenario, the first-tier residential factor would be 5.302 cents per kWh.34 This would result in a
fuel charge of $53.02 for the first 1,000 kWh of energy usage. 	The estimated decrease in the
monthly first-tier residential fuel charge (1,000 kWh) under this scenario is approximately
($6.59), or a (11.1) percent decrease from the currently-approved level, going from $59.61 to
$53.02. 	The difference in total bill amount (first-tier residential - 1,000 kWh), which
encompasses all proposed changes beginning in April 2023, is from $190.56 to $171.83, or a
reduction of (9.8) percent if the fuel cost under-recovery is spread over 21 months, rather than
the proposed 12 months. The proposed capacity cost recovery reduction would be unaffected by
the optional 21 month recovery scenario.
For non-residential customers, based on average levels of usage and specific rate
schedules, bill increases for small- and medium-size commercial customers would be 3.9 percent
32 DEF’s 2023 base rates for December 2022 – February 2023 is $89.39; for March 2023 – November 2023 is
$78.82. The weighted average is equal to: (($89.39 * 3) + (78.82 * 9)) / 12 = $81.46.
33 Subject to our approval in Docket No. 20230020-EI.
34 Document No. 01387-2023.

ORDER NO. PSC-2023-0112-PCO-EI
DOCKET NO. 20230001-EI
PAGE 8
and 2.0 percent, respectively, bill increases for large-size commercial customers would be 2.3
percent, and (2.5) percent for industrial customers.35 	The tariff associated with the 21 month
recovery scenario is found in Appendix A to this order.
DEF has requested that its 2022 fuel cost under-recovery and 2023 projected fuel costs be
spread over 12 months effective beginning the first billing cycle of April 2023. 	This would
impose an increase of $11.66 in the fuel cost recovery factor on the monthly bill of a residential
customer using 1,000 kWh as shown in Table 1. Using a 21 month recovery period for 2022 fuel
cost under-recovery and 2023 projected fuel costs would impose a decrease of $6.59 on the
monthly bill of the same residential customer using 1,000 kWh as shown in Table 2.
It is true, as DEF argues, that the recovery over a 12 month time period will decrease the
carrying costs paid by current customers on the net fuel cost under-recovery of $468,961,606. It
is also true that if natural gas prices continue to decline in 2023, resulting in a greater 2023 factor
over-recovery than currently projected, the 2024 fuel factor will be reduced by that amount.
However, we cannot ignore the fact that ratepayers are facing the highest interest rates, food
prices, and gas prices in a decade at this time. 	In this environment, we find that extending the
recovery time period to 21 months and lowering the impact fuel costs have on customers’ bills is
appropriate and results in fuel cost recovery rates that are fair, just, and reasonable.
For the reasons stated above, we find that DEF’s current fuel cost recovery factors shall
be adjusted by $468,961,606 to incorporate its currently-projected 2023 end-of-year fuel cost
under-recovery spread over a 21 month recovery period. 	Additionally, DEF’s currently-
approved 	capacity 	cost 	recovery 	factors 	shall 	be 	amended 	to 	incorporate 	a 	refund 	of
($11,668,131) related to the tax savings associated with the IRA of 2022 recovered over a 9
month period. 	The revised fuel and capacity cost recovery factors associated with our decision
to use a 21 month recovery period are found in Appendix A to this order.
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 recovery factors on a case-by-case basis. We have
approved fuel cost recovery factor rate decreases effective sooner than the next full billing cycle
after the date of our vote with the range between the vote and the effective date being from 25 to
2 days. The rationale for that action being that it was in the customers’ best interests to
implement the lower rate as soon as possible.36
35 Document No. 01394-2023.
36 Order No. PSC-08-0825-PCO-EI, issued December 22, 2008, in Docket No. 080001-EI, In re: Fuel and purchased
power cost recovery clause with generating performance incentive factor; Order No. PSC-09-0254-PCO-EI, issued
April 27, 2009, in Docket No. 090001-EI, In re: Fuel and purchased power cost recovery clause with generating
performance incentive factor; Order No. PSC-11-0581-PCO-EI, issued on December 19, 2011, in Docket No.
110001-EI, In re: Fuel and purchased power cost recovery clause with generating performance incentive factor;
Order No. PSC-12-0342-PCO-EI, issued July 2, 2012, in Docket No. 120001-EI, In re: Fuel and purchased power
cost recovery clause with generating performance incentive factor; Order No. PSC-2012-0082-PCO-EI, issued
February 24, 2012, in Docket No. 120001-EI, In re: Fuel and purchased power cost recovery clause with generating
performance incentive factor; Order No. PSC-15-0161-PCO-EI, issued April 30, 2015, in Docket No. 150001-EI, In

ORDER NO. PSC-2023-0112-PCO-EI
DOCKET NO. 20230001-EI
PAGE 9
With regard to fuel cost recovery factor rate increases, we have approved an effective
date of the revised factors ranging from 14 to 29 days after the vote.37 	In those cases typically
the utility had given its customers 30 days’ written notice before the date of the vote that a fuel
cost recovery factor increase had been requested and provided the proposed effective date of the
higher fuel factors.
In its MCC Petition, DEF proposes to collect the actual 2022 under-recovery of fuel costs
over 12 months, beginning with the first billing cycle of April 2023. The capacity cost reduction
(2022 tax reduction) will occur over 9 months, or from April through December, 2023. In the
instant case, there are 25 days between our vote on March 7 th and the beginning of DEF’s April
2023 billing cycle (April 1st ).38
Concerning customer advisement of the instant request, DEF states that it will notify its
customers of the proposed rate changes through bill inserts included with its March 2023
invoices. Additionally, on January 23, 2023, the same day DEF filed its original petition for mid-
course correction, the Company posted a “press release” to its website, while also issuing the
information to various media outlets describing the proposal.39 An additional email will also be
sent to large-account customers.
For these reasons, we find that the fuel and capacity cost recovery factors, as shown on
sheet No. 6.105 in Appendix A, shall become effective with the first billing cycle of April 2023.
Therefore, it is
ORDERED by the Florida Public Service Commission that adjustments to Duke Energy
Florida, LLC’s currently approved fuel cost recovery factors to incorporate the currently-
projected 2023 end-of-year fuel cost under-recovery in the amount of $468,961,606 spread over
a 21 month recovery period is hereby approved. It is further
re: Fuel and purchased power cost recovery clause with generating performance incentive factor; Order No. PSC-
2018-0313-PCO-EI, issued June 18, 2018, in Docket No. 20180001-EI, In re: Fuel and purchased power cost
recovery clause with generating performance incentive factor; Order PSC-2020-0154-PCO-EI, issued May 14,
2020, in Docket No. 20200001-EI, In re: Fuel and purchased power cost recovery clause with generating
performance incentive factor.
37 Order No. PSC-03-0381-PCO-EI, issued March 19, 2003, in Docket No. 030001-EI, In re: Fuel and purchased
power cost recovery clause with generating performance incentive factor; Order No. PSC-03-0382-PCO-EI, issued
March 19, 2003, in Docket No. 030001-EI, In re: Fuel and purchased power cost recovery clause with generating
performance incentive factor; Order No. PSC-03-0400, issued March 24, 2003, in Docket No. 030001-EI, In re:
Fuel and purchased power cost recovery clause with generating performance incentive factor; Order No. PSC-03-
0849-PCO-EI, issued July 22, 2003, in Docket No. 030001-EI, In re: Fuel and purchased power cost recovery
clause with generating performance incentive factor; Order No. PSC-09-0213-PCO-EI, issued April 9, 2009, in
Docket No. 090001-EI, In re: Fuel and purchased power cost recovery clause with generating performance
incentive factor; Order No. PSC-2019-0109-PCO-EI, issued March 22, 2019, in Docket No. 20190001-EI, In re:
Fuel and purchased power cost recovery clause with generating performance incentive factor.
38 Document No. 00864-2023.
39Id.

ORDER N O.PSC- 20 23 -0 11 2-PCO-EI
DOCKET NO. 2023000 I-El
PAGE 10
ORDERED that adjustments to Duke Energy Fl orida, LLC's currently-approved capacity
cost recovery factors to incorporate a refund of ($1 1,668, 13 1) related to the tax savings
associated with the IRA of 2022 is hereby approved. It is fu11her
ORDERED th at Staff sha ll have administrative authority to re view and approve tariff
changes consistent with our deci s ion in this matter. It is fu rth er
ORDERED that th e fuel and capacity cost recovery facto rs and tariffs, as shown on
A pp endix A of this order, shall become effective w ith th e first billi ng cycle of April 2023. 	It is
fu1ther
ORDERED that the fue l a nd purchased power cost reco ve ry clause docket is an on-go in g
proceeding and sha ll remain open.
SBr
By ORDER of the Florida Public Service Comm iss ion this 24th da y of March, 2023.
jj
Florida Public Service Commission
2540 Shumard Oak Boulevard
Tallahassee, Flo rid a 32399
(850) 41 3-6770
www.floridapsc.com
Copies furnished: 	A copy of this document is
provided to th e parties of record at the time of
iss ua nc e a nd , if applica bl e, interested pe rso ns.
NOTICE OF FURTHER PROCEEDINGS OR JUDICIAL R EV I EW
The Florida Public Service Commission is required by Section 	120.569( I), Florida
Statutes, to no tify parties of any administrative hearing or jud ic ial review of Co mm ission o rd ers
that is available under Sec ti ons 12 0. 57 or 120.68, Florida Sta tu tes, as we ll as the procedu res a nd
time limits that app ly. 	T hi s notice should not be constru ed to mean a ll 	requests fo r an
admini strative h ea ring or ju d ici al rev ie w w ill be granted or result in th e re li ef so ught.
Mediation ma y be ava il able on a case-by-case basis. 	If me di ation is conducted, it does
not affect a s ub stantially interested person's right to a he a rin g.

ORDER NO. PSC-2023-0112-PCO-EI
DOCKET NO. 20230001-EI
PAGE 11
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-2023-0112-PCO-EI DOCKET NO. 20230001-EI
PAGE 12
APPENDIX A
I
DUKE ENERGY.
SECTION NO. VI ONE HUNDRED AND FIRSTTH REVISED SHEET NO. 6.105 CANCELS NINETY-NINONE HUNDREDTH REVISED SHEET NO. 6.105
Page 1 of 3
Applicable:
To the Rate Per Month provision in each of the Company's filed rate schedules which reference the billing adjustments set forth below.
COST RECOVERY FACTORS
Rate Schedule/Metering Level
ECCR(2)
CCR(3)
ECRC(4)
ASC(5)
SPPCRC(6)
SCRS()
¢/ kWh
$/ kW
¢/ kWh
$/ kW
¢/ kWh
¢/ kWh
¢/ kWh
$/ kW
d/ kWh
RS-1, RST-1, RSL-1, RSL-2 (Sec.)
0.320
1.3281.2 85
0.022
0.199
0.414
1
-1.314
< 1000
> 1000
GS-1, GST-1
Secondary
0.288
-
-
-1.312
Primary
0.285
-
1.1731.1 38 1.1611.1 27 1.1501.1 15
0.021
0.173
0.397
-1.299
Transmission
0.282
0.021
0.172
0.393
-1.286
GS-2 (Sec.)
0.217
0.8220.7 95
0.018
0.124
0.188
-0.582
GSD-1, GSDT-1, SS-1* Secondary
0.85
1.05
-0.941
Primary
0.84 0.83
3.373.26 3.343.23 3.303.19
0.020 0.020 0.020
0.149
1.01
-0.932
Transmission
0.148
0.19
-0.922
CS-2, CST-2, CS-3, CST- 3, SS-3*
Secondary
0.46
-1.611
Primary
0.46 0.45
1.671.61 1.651.59 1.641.58
0.016 0.016 0.016
0.097 0.096 0.095
0.98 0.97 0.96
-1.595
Transmission
-1.579
IS-2, IST-2, SS-2* Secondary
0.70
0.124
0.80
-0.421
Primary
0.69
0.123
0.59
-0.417
Transmission
0.69
0.122
0.14
-0.413
LS-1 (Sec.)
0.116
-
I
0.014
0.050
0.306
-
-1.166
*SS-1, SS-2, SS-3 Monthly
Secondary
0.082
0.094
Primary
0.081
-
0.3250.3 14 0.3220.3 11 0.3190.3 08
0.092
Daily
Secondary
0.039
50
Primary
0.039
48
Transmission
0.038
0.1520.1 47
0.044
GSLM-1, GSLM-2
See appropriate General Service rate schedule
Fuel Cost Recovery(1)
Rate Schedule/Metering Level
Levelized
On-Peak
Off-Peak
Super-Off-Peak
RS-1 Only
< 1,000
5.9615.302
N/A
N/A
N/A
RS-1 Only
> 1,000
7.0316.372
N/A
N/A
N/A
LS-1 Only
Secondary
5.8655.270
N/A
N/A
N/A
All Other Rate Schedules
Secondary
6.2665.630
7.6956.914
6.3045.664
4.6744.200
-
0.093
Transmission
0.080
0.1550.1
0.045
-
0.1530.1
0.045
-
ISSUED BY: Thomas G. Foster, Vice President, Rates & Regulatory Strategy - FL
EFFECTIVE: March 1, 2023April 1, 2023
-
¢/ kWh
¢/ kWh
¢/ kWh
¢/ kWh
30
0.3410.3
2.692.60 2.662.57 2.642.55
0.018 0.018 0.018
0.175
0.401
0.021
0.151
I
RATE SCHEDULE BA-1 BILLING ADJUSTMENTS

ORDER NO. PSC-2023-0112-PCO-EI

DOCKET NO. 20230001-EI

PAGE 13

(= DUKE
| Se? ENERGY.

SECTION NO. VI
ONE HUNDRED AND FIRSTTH REVISED SHEET NO. 6.105
CANCELS NINETFY-NINONE HUNDREDTH REVISED SHEET NO. 6.105

Page 2 of 3
| All Other Rate Schedules Primary €.2085.574 FE4H76.845 62405.607 48274,158 |
All Other Rate Schedules Transmission 64445 517 teH6 775 $4785 550 45644. 116
SS Se Ss

(Continued on Page No. 2)

ISSUED BY: Thomas G. Foster, Vice President, Rates & Regulatory Strategy — FL
EFFECTIVE: Mareh4, 2023April 1, 2023

ORDER NO. PSC-2023-0112-PCO-EI DOCKET NO. 20230001-EI
PAGE 14
DUKE ENERGY.
SECTION NO. VI THIRTY-THIRD-FOURTH REVISED SHEET NO. 6.106 CANCELS THIRTY-SECOND-THIRD_REVISED SHEET NO. 6.106
Page 2 of 3
RATE SCHEDULE BA-1 BILLING ADJUSTMENTS (Continued from Page 1)
(1) Fuel Cost Recovery Factor:
The Fuel Cost Recovery Factors applicable to the Fuel Charge under the Company's various rate schedules are normally determined annually by the Florida Public Service Commission for the billing months of January through December. These factors are designed to recover the costs of fuel and purchased power (other than capacity payments) incurred by the Company to provide electric service to its customers and are adjusted to reflect changes in these costs from one period to the next. Revisions to the Fuel Cost Recovery Factors within the described period may be determined in the event of a significant change in costs.
(2) Energy Conservation Cost Recovery Factor:
The Energy Conservation Cost Recovery (ECCR) Factor applicable to the Energy Charge under the Company's various rate schedules is normally determined annually by the Florida Public Service Commission for twelve-month periods beginning with the billing month of January. This factor is designed to recover the costs incurred by the Company under its approved Energy Conservation Programs and is adjusted to reflect changes in these costs from one period to the next. For time of use demand rates the ECCR charge will be included in the monthly max demand only.
(3) Capacity Cost Recovery Factor:
The Capacity Cost Recovery (CCR) Factors applicable to the Energy Charge under the Company's various rate schedules are normally determined annually by the Florida Public Service Commission for the billing months of January through December. This factor is designed to recover the cost of capacity payments made by the Company for off-system capacity and is adjusted to reflect changes in these costs from one period to the next. For time of use demand rates the CCR charge will be included in the monthly max demand only.
(4) Environmental Cost Recovery Clause Factor:
The Environmental Cost Recovery Clause (ECRC) Factors applicable to the Energy Charge under the Company's various rate schedules are normally determined annually by the Florida Public Service Commission for the billing months of January through December. This factor is designed to recover environmental compliance costs incurred by the Company and is adjusted to reflect changes in these costs from one period to the next.
(5) Asset Securitization Charge Factor:
The Asset Securitization Charge (ASC) Factors applicable to the Energy Charge under the Company's various rate schedules represent a Nuclear Asset-Recovery Charge approved in a financing order issued to the Company by the Florida Public Service Commission and are adjusted at least semi-annually to ensure timely payment of principal, interest and financing costs of nuclear asset-recovery bonds from the effective date of the ASC until the nuclear asset-recovery bonds have been paid in full or legally discharged and the financing costs have been fully recovered. As approved by the Commission, a Special Purpose Entity (SPE) has been created and is the owner of all rights to the Nuclear Asset-Recovery Charge. The Company shall act as the SPE's collection agent or servicer for the Nuclear Asset-Recovery Charge. The Nuclear Asset-Recovery Charge shall be paid by all existing or future customers receiving transmission or distribution service from the Company or its successors or assignees under Commission-approved rate schedules or under special contracts, even if the customer elects to purchase electricity from alternative electric suppliers following a fundamental change in regulation of public utilities in this state.
(6) Storm Protection Plan Cost Recovery Clause Factor:
The Storm Protection Plan Cost Recovery Clause (SPPCRC) Factors applicable to the Energy Charge under the Company's various rate schedules are normally determined annually by the Florida Public Service Commission for the billing months of January through December. This factor is designed to recover storm protection plan costs incurred by the Company and is adjusted to reflect changes in these costs from one period to the next. For time of use demand rates the SPPCRC charge will be included in the monthly max demand only.
(7) Storm Cost Recovery Surcharge Factor:
In accordance with a Florida Public Service Commission ruling, the Storm Cost Recovery Surcharge (SCRS) factor is applicable to the Energy Charge under the Company's various rate schedules for the billing months of August 2021 through July 2022April 2023 through March 2024. This surcharge is designed to recover storm-related restoration costs, replenishment of the storm reserve, and interest incurred by the Company related to Hurricanes Eta and Isaias in 2020Elsa, Eta, lan, Isaias, Nicole, and Tropical Storm Fred.
Gross Receipts Tax Factor:
In accordance with Section 203.01(1)(a)1 of the Florida Statutes, a factor of 2.5641% is applicable to electric sales charges for collection of the state Gross Receipts Tax.
Regulatory Assessment Fee Factor:
In accordance with Section 350.113 of the Florida Statutes and Rule 25-6.0131, F.A.C., a factor of 0.072% is applicable to gross operating sales charges for collection of the Regulatory Assessment Fee.
(Continued on Page No. 3)
ISSUED BY: Thomas G. Foster, Vice President, Rates & Regulatory Strategy - FL
EFFECTIVE: January 1, 2023April 1, 2023
-