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ORDER NO. PSC -2018 -0050 -TRF -EI DOCKET NO. 20170148 -EI PAGE 2 CIAC paid by an applicant is to ensure that the general body of ratepayers do not bear any costs associated with the conversion. The formula to calculate CIAC is defined in Rule 25-6.115(8), F.A.C., and in FPL's Tariff Section 12.1 of Sheet No. 6.300. One component of the CIAC calculation, stated in paragraph (8)(b) of the rule, requires FPL to include the estimated remaining net book value of the existing facilities to be removed less the estimated net salvage value of the facilities to be removed (existing facilities cost). Paragraph (12) of Rule 25-6.115, F.A.C., allows a utility to waive all or any portion of the cost for providing underground facilities. If the utility waives any charge, the utility is required to reduce net plant in service unless thIS Commission determines that there is a quantifiable benefit to the general body of ratepayers commensurate with the waived charge. Storm Hardening Plan Rule 25-6.0342, F.A.C., requires each investor-owned utility to file a comprehensive storm hardening plan at least every three years, for our review and approval. As discussed in FPL's 2016-2018 Storm Hardening Plan,2 FPL is currently projecting that it will complete the storm hardening of its remaining overhead distribution feeders by end of year 2022. FPL's 2016- 2018 Storm Hardening Plan was approved by this Commission as part of FPL's 2016 rate case settlement and stipulation .3 Under FPL's storm hardening plan, existing, non -hardened overhead facilities will be removed and replaced with hardened overhead facilities. FPL's next storm hardening plan is expected to be filed in 2019. FPL's Proposal FPI currently has several municipalities that are considering or are moving forward with plans to convert existing non -hardened overhead facilities to underground facilities. These existing non -hardened overhead facilities, however, will be removed over the next five to six years consistent with FPL's storm hardening plan discussed above. Therefore, prospective applicants wishing to convert non -hardened overhead facilities to underground within the near future would pay CIAC that covers the cost of removing facilities that are already expected to be removed under FPL's storm hardening plan. FPL's storm hardening costs are recovered from the general body of ratepayers through base rates. Therefore, FPL requests that it be allowed to exclude the cost of the existing facilities from the CIAC calculation for underground conversions of existing non -hardened overhead facilities. As shown in Attachment A to this Order, FPL's proposed revisions to tariff Sheet No. 6.300 contemplate that elements 2, 3, and 5 of the CIAC formula be excluded from the CIAC calculation for an applicant that intends to convert non -hardened overhead facilities to underground. Specifically, the elements to be excluded are: 2) the estimated cost to remove the existing overhead facilities, 3) the net book value of the existing overhead facilities, and 5) the estimated salvage value of the existing overhead facilities to be removed. 2 Document No. 01382-16, filed on March 15, 2016, in Docket No. 160061 -EI, In re: Petition for approval of 2016- 2018 storm hardening plan, by Florida Power & Light Company. 3 Order No. PSC -16 -0560 -AS -EI, issued December 15, 2016, in Docket No. 160021 -EI, In re: Petition for rate increase by Florida Power & Light Company.