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DOCI(ET NO. 20170179 -GU <br />6) Authorization to establish a storm reserve to better allow it to address storm <br />damages expeditiously without incurring significant financial harm; and <br />7) Authorization to construct and include in rate base a new, liquefied natural gas <br />(LNG) facility to help address the Company's concerns regarding limitations <br />on capacity, which could impact its ability to serve customers. <br />VI. Rate Making Process <br />The Company has filed detailed accounting and financial schedules, based upon the <br />projected and historic test years, which are called Minimum Filing Requirements or "MFRs". <br />The Company has also filed a formal Petition making its request to the Commission, along with <br />written, prefiled testimony and exhibits of its witnesses, who explain and support the Company's <br />analysis of rate base, capital structure, achieved and required net operating income, adjustments <br />to expenses and rate base, tariff changes, including the economic development plan, quality of <br />service, and other pertinent issues. <br />The Commission will address the Company's request through a frill hearing process. <br />This process will include customer meetings in Coral Gables, Melbourne, and Port St. Lucie to <br />receive testimony from the Company's customers regarding the Company's quality of service <br />and other matters pertinent to the Company's requested rate increase. <br />Key issues in the case are likely to include: <br />1. What is the appropriate test year for setting base rates? <br />2. What is FCC's test year rate base? <br />3. What is FCG's cost of capital? <br />4. What is FCG's test year net operating income? <br />5. Is FCG's cost of service methodology appropriate? <br />6. What are the appropriate rate levels for each customer class? <br />Specific issues will be identified in a prehearing order issued by the Commissioner assigned as <br />Prehearing Officer for the case. <br />Upon completion of the customer meetings and the formal hearing (scheduled for March <br />26-30, 2018, in Tallahassee), the Commission's professional staff will prepare a recommendation <br />based upon the evidence presented addressing what rate relief, if any, is appropriate for the <br />Company. The Commission's staff is composed of attorneys, engineers, accountants, rate and <br />6 1 P a g e �, <br />