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ORDER NO. PSC-2018-0028-FOF-EI <br />DOCKET NO. 2018000 1 -EI <br />PAGE 8 <br />during the period 2017-2021 and to recover through base rates the incremental annualized base <br />revenue requirement for those facilities for the first 12 months of operation commencing when <br />the facilities are placed into service.6 There are several conditions that must be met for recovery <br />in this case. First, FPL must request recovery for these projects during the term of the 2016 <br />Agreement, or prior to December 31, 2020. Second, the cost of the components, engineering, <br />and construction for any solar project is capped at $1,750 per kilowatt alternating current (kWa,). <br />Third, for projects less than 75 MW (as are all of the projects proposed in this case): 1) the <br />request for base rate recovery must be filed in the Fuel Clause docket as part of its final true -up <br />filing; and 2) the issues are "limited to the cost effectiveness of each such project (i.e., will the <br />project lower the projected system CPVRR as compared to each CPVRR without the solar <br />project) and the amount of revenue requirements and appropriate percentage in base rates needed <br />to collect the estimated revenue requirements." 7 If the project meets these requirements, the <br />terms of the 2016 Agreement have been met. Therefore, we find that FIPUG's argument based <br />on reliability criteria is irrelevant. <br />D. 2017 and 2018 Solar Project Cost Effectiveness Anal <br />The in-service date for the 2017 projects is December 31, 2017. The in-service date for <br />the 2018 projects is March 1, 2018. Because of the minor timing difference between the in- <br />service dates, we find that it is appropriate to evaluate both 2017 and 2018 projects together for <br />cost effectiveness. In addition, both the 2017 and 2018 solar generation projects were <br />cumulatively evaluated in the initial filing of the docket. <br />FPL developed two resource plans to form the basis of the cost effectiveness analysis that <br />it performed. These two resource plans are called the No Solar Plan and 2017-2018 Solar Plan. <br />The No Solar Plan assumes that resource needs will be met by combined cycle units and short <br />term purchase power agreements (PPAs) through the year 2030. The 2017-2018 Solar Plan takes <br />into account the eight solar projects, which initially defers the 2025 combined cycle (cc) unit. <br />The Okeechobee CC Unit is currently under construction. The resource plan filed in regards to <br />FPL's initial filing is shown in Table 3 below: <br />Table 3 <br />Initial Resource Plan <br />Year <br />No Solar Resource Plan <br />2017-2018 Solar Resource Plan <br />2017 <br />298 MW Solar <br />2018 <br />298 MW Solar <br />2019 <br />Okeechobee 3x1 CC Unit <br />Okeechobee 3x1 CC Unit <br />2020 <br />2021 <br />2022 <br />2023 <br />2024 <br />1 -Year 33 MW PPA <br />2025 <br />1 Greenfield 3x1 CC Unit <br />1 -Year 119 MW PPA <br />2026 <br />1 Greenfield 3x1 CC Unit <br />62016 Agreement at ¶ 10(a). <br />2016 Agreement at 110(c). <br />