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ORDER NO. PSC -2018 -0085 -PAA -EQ DOCKET NO. 20170226 -EQ PAGE 2 standard offer contract approved in Docket No. 20170077 -EQ, as well as a petition for approval of its revised standard offer contract and rate schedule. On December 22, 2017, FPL filed an amended petition correcting the expected in-service date of the specified avoided unit. We have jurisdiction over this standard offer contract pursuant to Sections 366.04 through 366.06, and 366.91, F.S. Review Rule 25-17.250, F.A.C., requires that FPL, an IOU, continuously make available a standard offer contract for the purchase of firm capacity and energy from renewable generating. facilities (RF) and small qualifying facilities (QF) with design capacities of 100 kilowatts (kW) or less. Pursuant to Rules 25-17.250(1) and (3), F.A.C., the standard offer contract must provide a term of at least 10 years, and the payment terms must be based on the utility's next avoidable fossil -fueled generating unit identified in its most recent Ten -Year Site Plan or, if no avoided unit is identified, its next avoidable planned purchase. Due to FPL's recent need determination filing, its 2017 Ten -Year Site Plan no longer includes any avoidable fossil fueled generating units. In addition, there are not any long term planned purchases to be avoided or deferred during the 2017-2026 planning period. As a result, FPL could opt to offer only a standard contract for energy payments based on its as -available energy cost. However, in an effort to encourage renewable generation, FPL has identified its next avoidable unit which is a 1,752 megawatt (MW) natural gas-fired combined cycle (CC) unit at a greenfield site with an expected in-service date of June 1, 2028. To reflect the new avoidable unit, cost data has been revised in FPL's standard offer contract. We have approved using a unit outside of the Ten -Year Site Plan planning period previously.2 The RF/QF operator may elect to make no commitment as to the quantity or timing of its deliveries to FPL, and to have a committed capacity of zero (0) MW. Under such a scenario, the energy is delivered on an as -available basis and the operator receives only an energy payment. Alternatively, the RF/QF operator may elect to commit to certain minimum performance requirements based on the identified avoided unit, such as being operational and delivering an agreed upon amount of capacity by the in-service date of the avoided unit, and thereby becomes eligible for capacity payments in addition to payments received for energy. The standard offer contract may also serve as a starting point for negotiation of contract terms by providing payment information to an RF/QF operator, in a situation where one or both parties desire particular contract terms other than those established in the standard offer. In order to promote renewable generation, we require the IOU to offer multiple options for capacity payments, including the options to receive early or levelized payments. If the RF/QF operator elects to receive capacity payments under the normal or levelized contract options, it will receive as -available energy payments only until the in-service date of the avoided unit (in this case June 1, 2028), and thereafter, begin receiving capacity payments in addition to the energy payments. If either the early or early levelized option is selected, then the operator will 2Order No. PSC -13 -0322 -PAA -EQ, issued July 12, 2013, in Docket No. 130072 -EQ, In re: Petition for approval of renewable energy tariff and standard offer contract, by Florida Power & Light Company. q.2