07/03/2018 (3) - Laserfiche WebLink

Home Browse Search

ORDER NO. PSC -2018 -0314 -PAA -EQ DOCKET NO. 20180073 -EQ PAGE 2 On May 25, 2018, DEF provided revisions to Sheet 9.458 containing updated delivery voltage adjustment factors reflecting the newly calculated value filed with FERC. On May 16, 2018, DEF also filed revisions to Sheet 9.415 correcting the cost of the avoided unit's variable operation and maintenance from 0.0931 cents per kilowatt-hour (¢/kWh) to 0.931 0/kWh. In addition to the aforementioned revisions, DEF's standard offer contract and rate schedule COG -2 include updates to avoided unit specifications, calendar dates, and a monthly capacity payment example and its accompanying capacity payment parameters. Also included are typographical corrections, updates to position titles, and a change to DEF's name from Duke Energy Florida, Inc., to Duke Energy Florida, LLC. We have jurisdiction over this standard offer contract pursuant to Sections 366.04 through 366.06 and 366.91, F.S. Analysis and Decision Rule 25-17.250, F.A.C., requires that DEF, 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 Rule 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. DEF has identified a 226 megawatt (MW) natural gas -fueled combustion turbine (CT) as its next planned generating unit in its 2018 Ten - Year Site Plan. The projected in-service date of the unit is June 1, 2027. Under DEF's standard offer contract, the RF/QF operator commits 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, when one or both parties desire particular contract terms other than those established in the standard offer. In order to promote renewable generation, we require each 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, 2027) and thereafter, begin receiving capacity payments in addition to the energy payments. If either the early or early levelized option is selected, the operator will begin receiving capacity payments earlier than the in-service date of the avoided unit. However, payments made under the early capacity payments options tend to be lower in the later years of the contract term because the net present value (NPV) of the total payments must remain equal for all contract payment options. 02-