Florida Public Service Commission native order document 02368-2023

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FILED 3/23/2023 DOCUMENT NO. 02368-2023 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-2023-0107-PCO-EI ISSUED: March 23, 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 MID-COURSE CORRECTION
BY THE COMMISSION:
BACKGROUND
On January 23, 2023, Tampa Electric Company (TECO or Company), filed for revision of its currently-effective 2023 fuel cost recovery factors.1 The Company subsequently filed an amended petition on February 8, 2023 (MCC Petition).2 TECO's currently-effective 2023 fuel factors were approved last year at the November 17-18, and December 6, 2022 final hearing.3 Underlying the approval of TECO'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, TECO proposed not to include its unrecovered 2022 fuel costs in the fuel factors approved at the December 6th final hearing. Instead, TECO indicated it would be petitioning for recovery of those costs through a separate filing. The primary rationale for this course of action is that the extreme volatility of the natural gas prices in 2022 made a reliable projection of final 2022 costs impractical. We subsequently ordered TECO's filing to be submitted on or before January 23, 2023.4
Mid-Course Corrections
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 this Commission 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 for mid-course correction to the fuel cost recovery or
1Document No. 00380-2023.
2Document No. 01008-2023.
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-2023-0107-PCO-EI
DOCKET NO. 20230001-EI
PAGE 2
capacity cost recovery factors, or shall include an explanation of why a mid-course correction is
not practical.
TECO’s MCC Petition
TECO’s net 2022 under-recovery of fuel cost is approximately $518 million. Through its
MCC Petition, TECO is proposing to both increase its currently-effective 2023 cost recovery
factors by approximately $65 million, and defer approximately $296 million for recovery in
2024. 	The Company also incorporated 2023 cost reductions into its proposal. 	TECO is
requesting that its revised fuel factors and associated tariff become effective beginning with the
first billing cycle for April 2023.
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 this Commission’s most-recent fuel hearing which took place
during November 17-18, 2022, and December 6, 2022, in this docket. 	The fuel order
memorializing that hearing set the Company’s fuel and capacity cost recovery factors effective
with the first billing cycle of January 2023.5 	However, the currently-authorized fuel cost
recovery factors do not include certain fuel costs that were incurred in 2022. 	In support of the
deferral, TECO 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.
TECO Fuel and Purchased Power Mid-Course Correction
TECO initially filed for a mid-course correction of its fuel charges on January 23, 2023.6
This filing was amended on February 8, 2023.7 	The Company’s MCC petition and supporting
documentation satisfies 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., TECO filed a letter on April 21,
2022, informing this Commission that it was projecting an under-recovery position of greater
than 10 percent for the period ending on December 31, 2022.8 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 exact factors proposed in this proceeding are currently contemplated to be charged
for 9 months. 	As is typical procedure, later this year newly developed 12-month-applicable
factors will be proposed for implementation beginning with the first billing cycle of January
2024.
5Order No. PSC-2023-0026-FOF-EI.
6Document No. 00380-2023.
7Document No. 01008-2023.
8Document No. 02571-2022.

ORDER NO. PSC-2023-0107-PCO-EI
DOCKET NO. 20230001-EI
PAGE 3
Actual Period-Ending 2022 Fuel Cost Recovery Position
TECO’s 	net 	fuel 	cost 	recovery 	position 	at 	the 	end 	of 	2022 	is 	an 	under-recovery 	of
$517,989,768.9 	TECO recovered its final 2021 true-up amount through a prior mid-course
correction.10
Increased pricing for natural gas was the primary driver of the 2022 under-recovery
identified above. More specifically, the Company estimated an annual natural gas cost of $4.98
per million British thermal unit (MMBtu) in its last mid-course correction filing and derivation
of customer fuel rates.11 	This figure includes delivery costs. 	However, as indicated in the
Company’s December 2022 A-Schedule, TECO’s average 2022 cost of natural gas was $8.32
per MMBtu, representing a difference of 67.1 percent.12 Natural gas-fired generation comprised
approximately 85.8 percent of TECO’s generation mix in 2022.13
Projected 2023 Fuel Cost Recovery Position
TECO’s 2023 fuel-related revenue requirement decreased substantially since the filing of
its last cost projection in September 2022.14 	More specifically, the results of this updated
estimate 	is 	a 	reduction 	in 	TECO’s 	estimated 	2023 	fuel-related 	costs 	in 	the 	amount 	of
($171,157,078).15 	After accounting for carrying charges on the true-up balance, the net cost
difference is ($157,006,362). The amount of the 2022 under-recovery proposed for collection in
2023 is $221,995,615. 	Thus, the proposed incremental amount for inclusion into 2023 rates is
$64,989,253.
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 2023 fuel cost projection was sourced on (5-day average ending) August 1, 2022.16
This underlying data was used to produce an estimated average 2023 delivered natural gas cost
of $7.49 per MMBtu. 17 	However, TECO now estimates its average cost of natural gas in 2023
will be $5.92 per MMBtu, representing a decrease of 21.0 percent.18 The updated cost estimate
was based on natural gas futures/prices sourced on the 5-day average ending December 30, 2022,
or roughly five months from the previous estimate that was used to set current rates.19
Recovery Period and Interest Premium
As proposed, TECO’s recovery period for its 2022 under-recovery of fuel costs is over 21
months beginning April 2023 and ending December 2024.20 TECO utilized the 30-day AA
9Document No. 01008-2023.
10 Order No. PSC-2023-0026-FOF-EI.
11 Document No. 00350-2022.
12 Document No. 00488-2023.
13Id.
14 Document No. 05966-2022.
15 Document No. 01008-2023.
16 Document No. 00877-2023.
17 Document No. 05966-2022.
18 Document No. 01008-2023.
19 Document No. 00877-2023.
20 Document No. 00380-2023.

ORDER NO. PSC-2023-0107-PCO-EI
DOCKET NO. 20230001-EI
PAGE 4
Financial Commercial Paper Rate to determine its 2022 interest amount.21 	The projected 2023
interest rate was assumed to be the forecasted Federal Funds Rate sourced via a third party,
namely “Refinitiv,” of 0.263 percent (2023 monthly average). 22
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
($360,983,406) / $955,861,787. 23 This calculation results in a mid-course correction level of
(37.8) percent at December 31, 2023.
Fuel Factor
TECO’s currently-approved annual levelized fuel factor beginning with the first January
2023 billing cycle is 4.825 cents per kilowatt-hour (kWh). 24 	The Company is requesting to
increase its currently-approved 2023 annual levelized fuel factor beginning April 2023 to 5.239
cents per kWh, or by 8.6 percent.25
Bill Impacts
Table 1 displays the bill impacts of the MCC on typical residential customers using 1,000
kWh of electricity a month. 	This 	table 	also 	includes 	TECO’s 	storm-related 	cost 	recovery
proposal that, if approved, would begin in April 2023.26
21 Document No. 00877-2023, 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/
22 Document No. 00877-2023.
23 Document No. 01008-2023, Schedule E2.
24 Order No. PSC-2023-0026-FOF-EI.
25 Document No. 01008-2023.
26 See Document No. 00379-2023 for further information regarding TECO’s Interim Storm Charge request.

ORDER NO. PSC-2023-0107-PCO-EI
DOCKET NO. 20230001-EI
PAGE 5
Table 1
Tampa Electric Company
Monthly Residential Billing Detail for the First 1,000 kWh
Invoice Component
Currently-
Approved
Charges
March 2023
($)
Proposed
Charges
Beginning
April
2023
($)
Difference
($)
Difference
(%)
Base Charge 	$86.22 	$86.22 	$0.00 	0.0%
Fuel Charge 	45.25 	49.08 	3.83 	8.5%
Capacity Charge 	(0.18) 	(0.18) 	0.00 	0.0%
Conservation Charge 	2.81 	2.81 	0.00 	0.0%
Environmental Charge 	0.92 	0.92 	0.00 	0.0%
Storm Protection Plan Charge 	3.73 	3.73 	0.00 	0.0%
Clean Energy Transition Mechanism 	4.30 	4.30 	0.00 	0.0%
Storm Restoration Charge27 	0.00 	10.22 	10.22 	100.0%
Gross Receipts Tax 	3.67 	4.03 	0.36 	9.8%
Total 	$146.72 	$161.13 	$14.41 	9.8%
Source: TECO MCC Petition, Schedule E-10.
The storm restoration costs are with respect to Hurricanes: Dorian, Elsa, Ian, and Nicole,
and Tropical Storms: Alberto, Eta, and Nestor, as well as certain storm-related software and
storm reserve replenishment costs. 	TECO has requested recovery of these costs in Docket No.
20230019-EI. 	Therefore, while the proposed residential rate adjustment is shown here, neither
the Interim Storm Charge nor those associated rates are at issue in this proceeding.
TECO’s currently-approved total residential charge for the first 1,000 kWh of usage for
March 2023 is $146.72.28 	If the Company’s mid-course correction and storm cost recovery
proposals are approved, the current total residential charge for the first 1,000 kWh of usage
beginning in April will be $161.13, an increase of 9.8 percent. For non-residential rate classes,
TECO reported that bill increases based on average levels of usage for General Service
customers would range from approximately 9.2 to 10.4 percent, and for General Service Demand
customers, increases would range from approximately 6.3 to 7.0 percent.29
Based on the information above, we find that TECO’s fuel cost recovery factors shall be
adjusted by $64,989,253 to incorporate a portion of its actual 2022 end-of-year fuel cost under-
27 Subject to Commission approval in Docket No. 20230019-EI.
28 Document No. 01008-2023.
29 Document No. 01060-2023.

ORDER NO. PSC-2023-0107-PCO-EI
DOCKET NO. 20230001-EI
PAGE 6
recovery. 	The revised fuel cost recovery factors associated with our decision are shown on
Appendix A to this order.
Effective date
Over the last 20 years in the Fuel Clause docket, this Commission has 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.30
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.31 	We noted that 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, TECO proposes to collect the actual 2022 under-recovery of fuel
costs over 21 months, beginning with the first billing cycle of April 2023. 	In the instant case,
there are 27 days between our vote on March 7th and the beginning of TECO’s April 2023 billing
cycle (April 3rd ).32
30 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
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.
31 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.
32 Document No. 00877-2023.

ORDER NO. PSC-2023-0 I 07-PCO-El
DO CKET NO. 2023000 I-EI
PAGE 7
Concerning advisement of the in sta nt request, the Com pa ny issued a press re lease on
Ja nu ary 23 , 2023 informing it s customers of th e MCC proposal. 	Further, TECO wi ll begin
in cluding a not ic e on customer bills starting in March. 	The bill notice w ill inform TECO ' s
customers of the proposed rate increase. The Company also plans to post si mil ar information to
it s websit e. 	The Company also separate ly contacted num erous h igh -u sage customers to in form
them of its proposal and the pote nti al impact on their bill s. 33
For th ese reasons, we find th at the fuel cost recovery fac tors, as shown on Appendix A,
sha ll become effective with th e first billing cycle of April 2023.
Th erefor e, it is
ORDERED 	by th e Florida 	Public Service Co mmi ss ion that adj ustments to Tampa
Electric Company' s currently approved fuel cost recove ry factors to incorporate a portion of the
Compan y's ac tu al 2022 under-recovery of fuel costs in the amoun t of $64,989,253 are hereby
approved. It is further
ORDERED that the fuel cost rec overy factors, as shown on Appe ndi x A to thi s order,
sha ll become effec ti ve with the first billing cycle of April 2023. It is fu 1t her
ORDERED that the fuel and purchased power cost recovery cla use docket is an ongoing
proceeding and sha ll rema in ope n.
By ORDER of the Flo rid a Public Serv ice Co mmi ssion this 23rd da y of Ma rch, 2023.
SBr
33 Documen t 	o. 00877-2023.
Co mmi ss ion Clerk
Florida Public Serv ice Comm ission
2540 Shumard Oak Bou levard
Ta ll ahassee, Flo rid a 32399
(850) 41 3-6770
www. fl oridapsc.com
Cop ies furnished: 	A copy of this document is
prov id ed to the parties of record at the time of
iss ua nc e a nd , if appl icable, interested pe r so ns.

ORDER NO. PSC-2023-0107-PCO-EI
DOCKET NO. 20230001-EI
PAGE 8
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-2023-0107-PCO-EI DOCKET NO. 20230001-EI
Appendix A
PAGE 9
TECO. TAMPA ELECTRIC AN EMERA COMPANY
EIGHTY-FIFTH SIXTH REVISED SHEET NO. 6,020 CANCELS EIGHTY-FOURTH FIFTH 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 (AprilJanuary 2023 through December 2023)
Rate Schedules
Standard
Peak
Off-Peak
RS (up to 1,000 kWh)
4.908525
-0.018
0.092
RS (over 1,000 kWh)
5.908625
-0.018
0.092
RSVP-1
(P1)
5.2394,832
-0.018
0.092
(P2)
5.2394.832
-0.018
0.092
(P3)
5,2394,832
-0.018
0.092
(P4)
5.2394.832
-0.018
0.092
GS, GST
5,2394,832
5,6165.179
5,0774,683
-0.017
0.090
CS
5.2394.832
-0.017
0.090
LS-1, LS-2
5,1694.767
-0.003
0.066
GSD Optional
Secondary
5,2394,832
-0.014
0.084
Primary
5.1874.784
-0.014
0.083
Subtransmission
5,1344,735
-0.014
0.082
¢/kWh Fuel
$/kW Capacity
¢/kWh Environmental
Rate Schedules
Standard
Peak
Off-Peak
GSD, GSDT, SBD, SBDT
Secondary
5.2394.832
5.6165.179
5.0774.683
-0.06
0.084
Primary
5.1874,784
5,5605,127
5,0264,636
-0,06
0.083
Subtransmission
5.1344,735
5.504076
4.9754.689
-0.06
0.082
GSLDPR, GSLDTPR
5.1874,784
5.560127
5,0264,636
-0.05
0.076
SBLDPR, SBLDTPR
5.1874.784
5.560127
5.0264.636
-0.05
0.076
GSLDSU, GSLDTSU
5.1344.735
5.504075
4.9754.589
-0.04
0.075
SBLDSU, SBLDTSU
5.1344,735
5.504075
4.9754,589
-0.04
0.075
Continued to Sheet No. 6.021
ISSUED BY: A. D. Collins, President
DATE EFFECTIVE: January 1, 2023
¢/kWh Fuel
¢/kWh Capacity
¢/kWh Environmental