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ORDER NO. PSC -2018 -0103 -PCO -EI DOCKET NO. 20170272 -EI PAGE 2 interim storm restoration recovery surcharge of $5.20 per 1,000 kWh on a residential customer bill. On January 24, 2018, DEF filed a Motion to Approve Implementation Stipulation to implement the 2017 Settlement. On February 5, 2018, DEF filed its Notice of Amendment to Implementation Stipulation (implementation stipulation). All signatories to the 2017 Settlement joined in and support the implementation stipulation. We have jurisdiction over this matter pursuant to Sections 366.04, 366.05, 366.06, and 366.076, Florida Statutes. Decision 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. The requested recovery of $513.2 million represents net retail recoverable costs of approximately $371 million, plus an additional $132 million to replenish its storm reserve to the balance that existed in February 2012. In addition, the $513.2 million includes an additional $10.2 million for interest, bond issuance costs, and a regulatory assessment fee true -up. The petition was filed pursuant to the provisions of the 2017 Settlement we approved in Order No. PSC -2017 -0451 - AS -EU. Pursuant to Paragraph 38 of the 2017 Settlement, DEF can begin recovery of storm costs, without a cap, 60 days following the filing of a petition for recovery. In order to limit the monthly charge to customers, DEF has requested an interim storm restoration recovery charge of $5.20 on a monthly 1,000 kWh residential bill to be recovered over a 36 -month period, effective March 1, 2018 through February 28, 2021. In its petition, DEF asserts that it incurred total retail recoverable costs of approximately $371 million as a result of Hurricanes Irma and Nate. DEF further asserts that this amount was calculated in accordance with the Incremental Cost and Capitalization Approach (ICCA) methodology prescribed in Rule 25-6.0143, Florida Administrative Code. The net retail recoverable costs of $371 million were determined by reducing the $425 million total recoverable costs by the pre -storm storm reserve balance of $54 million. Paragraph 38 of the 2017 Settlement also allows DEF to request the replenishment of its storm reserve to $132 million. In its petition, DEF filed a proposed Eighty -First Revised Tariff Sheet No. 6.105 to implement the approved storm recovery charge. However, following our approval of the implementation stipulation, DEF withdrew its proposed tariff. DEF's implementation stipulation is attached to this Order in Attachment A. It seeks to avoid volatility in customer rates by recognizing and then utilizing annual tax reform benefits resulting from the 2017 Tax Act as a direct offset to avoid implementing separate cost recovery of storm damage costs that customers would have otherwise have been obligated to pay. With our approval of the implementation, DEF shall be entitled to record a monthly storm reserve accrual equal to one -twelfth of our approved annual revenue requirement impact of the Tax ACT and credit the retail storm reserve from January 2018 through full recovery of our final approved actual storm recovery amount.