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ORDER NO. PSC-2018-0028-FOF-EI DOCKET NO. 20180001 -El PAGE 6 competitive bidding process for the equipment to be installed and the work to be performed. Further, FPL argues that updated efficient designs and reduced interconnection costs lowered the anticipated costs for the 2017 and 2018 projects. FPL employed two resource plans for the proposed solar generation: a No Solar Plan and 2017-2018 Solar Plan. Based on the assumptions made in each plan, FPL calculates that there is an estimated cumulative present value revenue requirement (CPVRR) savings of $38.6 million. FPL asserts that updates to tax law in August 2017 provided a reduction in costs, in the form of reduced property taxes, for three of the four 2018 solar project sites. FPL calculates that the efficient designs, reduced interconnection costs, and reduced property taxes raise the estimated CPVRR savings under the 2017-2018 Solar Plan to $106 million. It is FPL's position that the 2017 and 2018 projects are cost effective under the 2016 Agreement if the system CPVRR is lower with the solar projects than without them as is the case. FIPUG argues that the solar projects are not needed to meet the Commission's 15 percent reserve margin or FPL's 20 percent reserve margin. FIPUG contends that FPL's efforts to prove that the SoBRA projects are cost effective are only supported by hearsay evidence. FIPUG adds that FPL customers will lose $127.3 million if fuel prices remain low and no carbon tax is imposed in the future. FIPUG further asserts that the future cost of natural gas and the future cost of carbon resulting from a carbon tax used by FPL in its cost effectiveness analysis is uncorroborated. Anal A. 2017 Project Description FPL is proposing to construct and operate four PV centers with a total nameplate capacity of 298 MWa, (74.5 MWa, each) with an in-service date of December 31, 2017. Construction of the 2017 solar generation projects began on October 21, 2016. The proposed solar generation projects are Fixed -Tilt Systems with an average projected first year net capacity factor of 26.6 percent. There are no upgrades to existing transmission infrastructure required as part of the construction of the 2017 solar generation projects. The four proposed sites for the 2017 solar project construction are Coral Farms, Horizon, Wildflower, and Indian River. The Wildflower site is already included in FPL's rate base; therefore, Wildflower land costs are not included in the analysis. All other parcels are new purchases. Not all of the land in the seven newly purchased sites is being used for the 2017 and 2018 solar projects although FPL states that some of this land will be used for future projects. To develop a better understanding of the ratio of land that could be used for future development, a more detailed breakdown of each site was requested from FPL. This breakdown included four categories: total acreage, acreage used by the projects (Site Acreage), non -usable land, and residual land. Residual land consists of property that could possibly be used in future solar developments on the site, and for sites with adequate amounts of residual land, FPL will consider leasing land to parties for farming or cattle grazing activities. The range of acreages of each site is illustrated in Table I below: