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01/16/2018 (2)
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01/16/2018 (2)
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Last modified
1/11/2021 12:17:48 PM
Creation date
2/14/2018 2:36:13 PM
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Meetings
Meeting Type
BCC Regular Meeting
Document Type
Agenda Packet
Meeting Date
01/16/2018
Meeting Body
Board of County Commissioners
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ORDER NO. PSC-2018-0028-FOF-EI <br />DOCKET NO. 20180001 -El <br />PAGE 5 <br />transmission line. Further, if the reasoning in Woodford is applied to the FPUC facts, the Court <br />would find the recovery of transmission lines through base rates appropriate since transmission is <br />specifically listed as an activity engaged in by electric utilities. Section 366.02(2), F.S. <br />Likewise, applying the reasoning of Woodford to the facts here, there is no question that <br />we have the authority to allow recovery of the costs associated with solar generation projects. <br />As with transmission, generation is listed specifically as an activity engaged in by electric <br />utilities in Section 366.02(2), F.S. It is important to note that FIPUG is not arguing that FPL <br />does not have the right to recover the solar project costs; it is arguing that solar project costs <br />can't be recovered through fuel clause factors. Presumably, FIPUG would not object to FPL <br />filing a separate docket seeking cost recovery for the 2017 and 2018 solar projects using an <br />increase in base rates to do so. Indeed, FIPUG has agreed to such a mechanism to recover solar <br />project capital costs as a signatory to Tampa Electric Company's 2017 Amended and Restated <br />Stipulation and Settlement Agreement.2 <br />Since FPL is not requesting recovery through the fuel adjustment clause factor, but is <br />requesting recovery of costs for its solar projects through increases in base rates, FIPUG's <br />complaint does not raise a jurisdictional question at all. Recovery of these costs through base <br />rates is clearly appropriate under both the Woodford and FPUC decisions. We agree with FPL <br />that placement of this issue in the fuel clause docket was purely administrative. We also agree <br />with FPL that to the extent possible, an increase in base rates associated with the solar projects <br />coming on line should be timed to coincide with any fuel savings which result from that solar <br />generation. Litigating the cost effectiveness issues associated with the solar projects, Issues 2J - <br />2P, in this docket cost-effectively accomplishes this goal. <br />When dissected and examined closely, FIPUG's issue boils down to insisting that rate <br />base cost recovery for the solar projects be filed in a separate docket. FIPUG has not alleged that <br />it did not have adequate notice of the solar project issues, or that it has been harmed in any way <br />by the inclusion of those issues in this docket. Nor could it. FPL filed direct testimony of four <br />witnesses on this point,3 Commission staff conducted extensive discovery on this issue,4 FIPUG <br />cross examined FPL witnesses Enjamio and Brannen on this topic at hearing, and FIPUG filed a <br />post hearing brief. Conducting these activities under a separate docket number does not change <br />their nature or provide FIPUG any additional due process rights. <br />Based on the above, we find that we have the authority to approve the recovery of FPL's <br />2017 and 2018 solar projects through base rates in this fuel clause docket. <br />SoBRA PROJECT RECOVERY <br />Overview <br />FPL proposes to construct and operate 596 MW of solar generation by 2018 pursuant to <br />its 2016 Stipulation and Settlement Agreement (2016 Agreement). FPL contends that the costs <br />for the 2017 and 2018 projects are reasonable and fall below the $1,750 per kWac cost cap as <br />required by the 2016 Agreement. To ensure reasonable capital costs, FPL completed a <br />2 Document No. 07947-2017 at % 6(f). <br />3Tiffany Cohen, Liz Fuentes, Juan Enjamio and William Brannen. <br />4EXH 84, 86, 87 and 89. <br />
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