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_ :FILED 2/26%2018 DOCUMENT NO. 01847-2018 'FPSC - COMMISSION CLERK BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION V14e, LJ In re: Application for limited proceeding for DOCKET NO. 20170272 -El recovery of incremental storm restoration costs ORDER NO. PSC -2018 -0103 -PCO -EI related to Hurricanes Irma and Nate, by Duke ISSUED: February 26, 2018 Energy Florida, LLC. The following Commissioners participated in the disposition of this matter: ART GRAHAM, Chairman JULIE I. BROWN DONALD J. POLMANN GARY F. CLARK ORDER APPROVING INTERIM STORM RECOVERY CHARGE BY THE COMMISSION: Background On December 28, 2017, Duke Energy Florida, LLC (DEF) filed a petition for a limited proceeding seeking authority to implement an interim storm restoration recovery charge to recover a total of $513.2 million for the incremental restoration costs related to Hurricanes Irma and Nate and to replenish its storm reserve. In its petition, DEF asserted that, as a result of Hurricanes Irma and Nate, it incurred total retail recoverable costs of approximately $425 million, less its pre -storm reserve balance of $54 million, resulting in net recoverable costs of $371 million. In addition, DEF proposes to replenish its storm reserve to the $132 million balance that existed in February 2012. Interest, bond issuance expense, and the regulatory assessment fee gross -up adds an additional $10.2 million to the amount of recoverable costs. DEF filed its petition pursuant to the provisions of the 2017 Second Revised and Restated Settlement Agreement (2017 Settlement) approved by the Commission in Order No. PSC -2017- 0451 -AS -EU.' Pursuant to the 2017 Settlement, DEF can recover storm costs, without a cap on the level of charges on customer bills, on an interim basis beginning 60 days following the filing of a petition for recovery. Although the 2017 Settlement provides for a 12 -month recovery period, DEF recognizes that the imposition of the full storm recovery amount over 12 months would result in an interim storm restoration recovery surcharge of over $15 per 1,000 kWh on a residential customer bill. Therefore, to mitigate this large rate increase, DEF proposes to spread the storm recovery amount over 36 months effective March 1, 2018, which would result in an 'Order No. PSC -2017 -0451 -AS -EU, issued November 20, 2017, in Docket No. 20170183 -EI, In re: Application for limited proceeding to approve 2017 second revised and restated settlement agreement, including certain rate adjustments, by Duke Energy Florida, LLC. W -0-r