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ORDER NO. PSC -2018 -0085 -PAA -EQ DOCKET NO. 20170226 -EQ PAGE 30 Sixth Revised Sheet No. 10.303 FIARiDA POWER & LIGHT COMPANY Cancels Fifth Revised Sheet No. 10-36 (Continued Rom Sheet No. 10.302) R Enerey Rates (1) Payments Associated with As -Available Energy Costs prior to the In -Service Date of the Avoided Unit Options A or B are available for payment of energy which is produced by the QS and delivered to the Company prior to the in-service date of the Avoided Unit. The QS shall indicate its selection in Appendix E, (bice selected; an option shall remain in effect for the tern of the Standard Offer Contract with the Company. Option A - Energy Payments based on Actual Energy Costs The energy rate, in cents per kilowatt-hour (¢/KWh), shall be based on the Company's actual hourly avoided energy costs which are calculated by the Company in accordance with FM Rule 25-17.0825, FAC. Avoided energy costs include incremental fuel, identifiable operation and maintenance expenses, and an adjustment for line losses reflecting delivery voltage. The calculation of the Company's avoided energy tests reflects the delivery= of energy from the region of the Company in which the Delivery Point of the QS is located. When economy transactions take place, the incremental costs are calculated as described in FPL '% Rate Schedule COCT-1 . The calculation of payments to the QS shall be based on the sum, over all hours of the billing period, of the product of each hour's avoided energy cost times tate purchases of energy from the QS by the Company for that hour. All purchases of energy shall be adjusted for losses from the point of metering to the Delivery Point. Option B - Energy Payments based on the year by year projection of As -Available energy costs The energv rate, in cents per kilowatt-hour (0/kXXrh), shall he based on the Company's year by year projection of system incremental fuel costs, prior to hourly economy sales to other utilities, based on normal weather and fuel market conditions (annual As -Available Energy Cost Projection which are calculated by the Company in accordance with FPSC Rule 25-17.0825, F.A.C. and with FPSC Rule 25-17.2500 (a) F.A.C,.) plus a fuel market volatility risk premium mutually agreed upon by the utility and the QS. Prior to the start of each applicable calendar year, the Company and the QS shall mutually agree on the fuel market volatility risk premium for the following calendar year, normally no later than November 15. The Company will provide its projection of the applicable annual As -Available Energy Cost prior to the start of the calendar year, normally no later than November 15 of each applicable calendar year. In addition to the applicable As -Available Energy Cost projection the energy payment will include identifiable operation and maintenance expenses, an adjustment for line losses reflecting delivery voltage and a factor that reflects in the calculation of the Company's Avoided Energy Costs the delivery of energy from the region of the Company in which the Delivery Point of the QS is located. The calculation of payments to the QS shall be based on the sum, over all hours of the billing period, of the product of each hour's applicable Projected Avoided Energy Cost times the purchases of energy from One QS by the Company for Omat hour. All purchases of energy shall be adjusted for losses from the point of metering to the Delivery Point, (2) Payments Associated with Applicable Avoided Enerey Costs after the Lm -Service Date of the Avoided Unit Option C is available for payment of energy which is produced by the QS and delivered to the Company after the in-service date of the avoided unit. In addition, Option D is available to the QS which elects to fix a portion of the firm energy payment. The QS shall indicate its selection of Option Din Appendix E, once selected, Option D shall remain in effect for the term of the Standard Offer Contract. Option C- Energy Payments based on Actual Energy Costs starting on the in-service date of the Avoided unit, as detailed in AooendixIl. The calculation of payments to the QS for energy delivered to FPL on and after the in-service date of the Avoided Unit shall he the sum, over all hours of the Monthly Billing Period, of the product of (a) each hours firm energy rate (0/K Wh); and (b) the amount of energy (KWH) delivered to FPL from the Facility during that hour. (Continued on Sheet No. 10.309) Issued by: S. E. Romig, Director, Rates and Tariffs Effective: June 25, 2013 q 30