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ORDER NO. PSC -2018 -0105 -PCO -EI
<br />DOCKET NO. 2018000 1 -EI
<br />PAGE 2
<br />intention of the proposed decrease in rates becoming effective March 1, 2018. Typically,
<br />effective dates are set a minimum of 30 days after our vote modifying the charges as the result of
<br />a mid -course correction.3 This time limit is imposed in order to not have new rates applied to
<br />energy consumed before the effective date of our action, i.e., the date of the vote. However, we
<br />have also implemented charges in less than 30 days when circumstances warrant.4 In this
<br />instance, the interval between our vote on this matter (February 6, 2018) and the proposed
<br />implementation date (expected to be March 1, 2018) is 22 days. Since this filing, if approved,
<br />results in a decrease to rates, we find that the 22 day interval is sufficient.
<br />This Commission's jurisdiction to consider fuel clause proceedings derives from our
<br />authority to set fair and reasonable rates, found in Section 366.05, Florida Statutes.
<br />T)F.C'ISTON
<br />FPL's projection testimony and schedules for 2018 were filed on August 24, 2017, which
<br />came before this Commission had considered a separately -docketed matter to approve an
<br />arrangement to mitigate unfavorable impacts stemming from its partial ownership of the St.
<br />Johns River Power Park (SJRPP Transaction). The impact of the SJRPP Transaction was not
<br />reflected in FPL's calculations included in its projection testimony and schedules filed on August
<br />24, 2017. On September 25, 2017, the Commission approved FPL's and OPC's stipulation and
<br />settlement resolving all issues concerning the SJRPP Transaction.5 Order No. PSC-2018-0028-
<br />FOF-EI,' approved the stipulation requiring FPL to file a mid -course correction to reflect the
<br />impacts of the SJRPP Transaction no later than November 17, 2017, and FPL did so.
<br />Midcourse Adjustment for Fuel Cost Recovery (FCR) Factors
<br />FPL's currently authorized 2018 fuel factors were set by this Commission following the
<br />October 25, 2017 fuel hearing, and codified in the 2017 Order. These factors are based on FPL's
<br />projected fuel costs for 2018, plus the true -up amounts from 2017. Given the timing of our
<br />approval of the SJRPP Transaction, FPL is requesting that the current mid -course correction
<br />reflect its 2018 cost recovery factors. The Company notes, however, that its mid -course
<br />'Gulf Power Co. v. Cresse, 410 So. 2d 492 (Fla. 1982); Order No. PSC-96-0907-FOF-EI, issued on July 15, 1996, in
<br />Docket No. Docket No. 19960001 -EI, In re: Fuel and purchased power cost recovery clause and generating
<br />performance incentive factor; Order No. PSC-1996-0908-FOF-EI, issue J July 15, 1996, in Docket No. 19960001 -
<br />EI, In re: Fuel and purchased power cost recovery clause and generating performance incentive factor; Order No.
<br />PSC-97-0021-FOF-El, issued on January 6, 1997, in Docket No, 19970001 -EI, In re: Fuel and purchased power cost
<br />recovery clause and generating performance incentive factor.
<br />4Order No. PSC -01 -0963 -PCO -El, issued April 18, 2001, in Docket No. 20010001-E1, In re: Fuel and purchased
<br />power cost recovery clause and generating performance incentive factor (allowing recovery of increase in fiiel factor
<br />in order to decrease the carrying costs and therefore the total amount ratepayers were ultimately required to repay.);
<br />Order No. PSC-00-2383-FOF-GU, issued December 12, 2000, in Docket No. 20000003 -GU, In re: Purchased gas
<br />adjustment (PGA) true -up (allowing recovery of an increased gas fuel factor due to drastic increases in natural gas
<br />prices in winter of 2000-2001.); Order No. PSC -15 -0161 -PCO -EI, issued April 30, 2015, in Docket No. 20150001 -
<br />EI, In re: Fuel and Purchased Power Cost Recovery Clause with Generating Performance Incentive Factor
<br />(approving FPL's petition for a mid -course correction, thereby reducing fuel factors with less than 30 days notice).
<br />5Order No. PSC -2017 -0415 -AS -EI, issued October 24, 2017, in Docket No. 20170123 -EI (SJRPP Order), In re:
<br />Petition for approval of arrangement to mitigate unfavorable impact of St. Johns River Power Park, by Florida
<br />Power & LightCompany.
<br />6Order No. PSC-2018-0028-FOF-EI, issued January 8, 2018, in Docket No. 20180001-E1, In re: Fuel and purchased
<br />power cost recovery clause and generating performance incentive factor.
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