09/12/2017 (3) - Laserfiche WebLink

Home Browse Search

ORDER NO. PSC -2017 -0336 -PAA -EQ DOCKET NO. 20170072 -EQ PAGE 68 Attachment A DUKE ENERGY. SECTION No. IX FIRST REVISED SHEET NO. 9.454 CANCELS ORIGINAL SHEET NO. 9.454 Option B - Fixed Value of Deferral Payments - Early Capacity Payment schedules under this option are based upon the early capital cost component of the value of a year -by -year deferral of the Avoided Unit. The term "early" with respect to Option B means that these payments can start prior to the anticipated in-service date of the Avoided Unit; provided, however, that under no circumstances may payments begin before this RF/QF is delivering Firm Capacity and Energy to DEF pursuant to the terms of the Contract. When this option is selected, the Capacity Payments shall be made monthly commencing no earlier than the Capacity Delivery Date of the RF/QF and calculated as shown on Schedule 1. Capacity Payments under Option B do not result in a prepayment or create a future benefit. The RF/QF shall select the month and year in which the deliveries of firm capacity and energy to DEF are to commence and Capacity Payments are to start. DEF will provide the RF/QF with a schedule of capacity payment rates based on the month and year in which the deliveries of firm capacity and energy are to commence and the term of the Contract. The exemplary payment schedule in Table 3 is based on a contract term that begins on the Exemplary Early Capacity Payment Date in Section 4 of the Contract. Option C - Fixed Value of Deferral Payment - Levelized Capacity Payment schedules under this option are based upon the levelized capital cost component of the value of a year -by -year deferral of the Avoided Unit. The capital portion of Capacity Payments under this option shall consist of equal monthly payments over the term of the Contract, calculated as shown on Schedule 1. The fixed operation and maintenance portion of Capacity Payments shall be equal to the value of the year -by -year deferral of fixed operation and maintenance expense associated with the Avoided Unit. These calculations are shown in Schedule 1. The payment schedule for this option is contained in Table 3. Capacity Payments under Option C do not result in a prepayment or create a future benefit. Option D - Fixed Value of Deferral Payment - Early Levelized Capacity Payment schedules under this option are based upon the early levelized capital cost component of the value of a year -by -year deferrak of the Avoided Unit. The capital portion of Capacity Payments under this option shall consist of equal monthly payments over the term of the Contract, calculated as shown on Schedule 1. The fixed operation and maintenance expense shall be calculated as shown in Schedule 1. The RF/QF shall select the month and year in which the deliveries of firm capacity and energy to DEF are to commence and Capacity Payments are to start. DEF will provide the RF/QF with a schedule of capacity payment rates based on the month and year in which the deliveries of firm capacity and energy are to commence and the term of the Contract. The exemplary payment schedule in Table 3 is based on a contract term that begins on the Exemplary Early Capacity Payment Date in Section 4 of the Contract. ISSUED BY: Javier Portuondo, Director, Rates a Regulatory Strategy - FL EFFECTIVE: April 29, 2013