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ORDER NO. PSC -2017 -0336 -PAA -EQ <br />DOCKET NO. 20170072 -EQ <br />PAGE 80 <br />Attachment A <br />tDUKE <br />ENERGY® <br />Where: <br />PL=(F/12)• [r/ 1—(1+r){]+O <br />PL <br />SECTION No. IX <br />FIRST REVISED SHEET NO. 9.465 <br />CANCELS ORIGINAL SHEET NO. 9.465 <br />= the monthly levelized capacity payment, starting on or <br />prior to the in-service date of DEFs Avoided Unit(s): <br />F = the cumulative present value, in the year that the <br />contractual payments will begin, of the avoided capital <br />cost component of the Capacity Payments which would <br />have been made had the Capacity Payments not been <br />levelized; <br />r = the annual discount rate, defined as DEFs incremental <br />after-tax cost of capital; <br />= the Tenn, in years of the Contract <br />0 = the monthly fixed operation and maintenance component <br />of the Capacity Payments, calculated in accordance with <br />calculation of the fixed value of deferral payments for <br />the levelized capacity or the early levelized capacity <br />options. <br />RISK -RELATED GUARANTEES <br />With the exception of governmental solid waste facilities covered by FPSC Rule 25- <br />17.091, FPSC Rule 25-17.0832 (4)(e)10 requires that, when fixed value of deferral <br />payments - early capacity, levelized capacity, or early levelized capacity are elected, the <br />RF/QF must provide a surety bond or equivalent assurance of securing the payment of a <br />Termination Fee in the event the RF/QF is unable to meet the terms and conditions of its <br />Contract. Depending on the nature of the RF/QFs operation, financial health and <br />solvency, and its ability to meet the terms and conditions of the Contract, one of the <br />following may constitute an equivalent assurance of payment: <br />(1) Bond; <br />(2) Cash deposit(s) with DEF; <br />(3) Unconditional, irrevocable, direct pay Letter of Credit; <br />(4) Unsecured promise by a municipal, county or state government to repay <br />payments for early or levelized capacity in the event of default, in <br />conjunction with a legally binding commitment from such government <br />allowing the utility to levy a surcharge on either the electric bills of the <br />government's electricity consuming facilities or the constituent electric <br />customers of such government to assure that payments for early or <br />levelized capacity are repaid; <br />(5) Unsecured promise by a privately -owned RF/QF to repay payments for <br />early or levelized capacity in the event of default, in conjunction with a <br />legally binding commitment from the owners) of the RF/QF, parent <br />company, and/or subsidiary companies located in Florida to assure that <br />payments for early, levelized or early levelized capacity are repaid; or <br />(6) Other guarantees acceptable to DEF. <br />ISSUED BY: Javier Pootuondo, Otrector, Rates a Regulatory Strategy - FL <br />EFFECTIVE: Aprtl 29, 2013 <br />