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ORDER NO. PSC -2017 -0336 -PAA -EQ DOCKET NO. 20170072 -EQ PAGE 78 Attachment A tDUKEENERGY® SECTION No. IX FIRST REVISED SHEET NO. 9.483 CANCELS ORIGINAL SHEET NO. 9A53 Oe = total fixed operation and maintenance expense for the year n, in mid -year dollars per kilowatt per year, of the Avoided Unit; ip = annual escalation rate associated with the plant cost of the Avoided Unit; b = annual escalation rate associated with the operation and maintenance expense of the Avoided Unit; r = annual discount rate, defined as the utility's incremental after-tax cost of capital; L = expected life of the Avoided Unit; and n = year for which the Avoided Unit is deferred starting with the Avoided Unit In -Service Date and ending with the Termination Date. CALCULATION OF FIXED VALUE OF DEFERRAL PAYMENTS - EARLY CAPACITY -OPTION 0 Under the fixed value of deferral Option A, payments for firm capacity shall not commence until the in-service date of the Avoided unit(s). At the option of the RF/QF, however, DEF may begin making payments for capacity consisting of the capital cost component of the value of a year -by -year deferral of the Avoided .Unit prior to the anticipated in-service date of the Avoided Unit. When such payments for capacity are elected, the avoided capital cost component of Capacity Payments shall be paid monthly commencing no earlier than the Capacity Delivery Date of the RF/QF, and shall be calculated as follows: Where: AM=[A,(1+.i,)te1II+Ae(1+i)t°'It]/12 for m=1 to t AM monthly payments to be made to the RF/QF for each month of the contract year n, in dollars per kilowatt per month in which RF/QF delivers capacity pursuant to the early capacity option; ip = annual escalation rate associated with the plant cost of the Avoided Unit; = annual escalation rate associated with the operation and maintenance expense of the Avoided Unit; ISSUED BY: Javier Portuondo, Director, Rates & Regulatory Strategy - FL EFFECTIVE: April 29, 2013