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ORDER NO. PSC -2018 -0316 -PAA -EQ DOCKET NO. 20180083 -EQ PAGE 37 FLORIDA POWER & LIGHT COMPANY Attachment A aaeet NO. luitri (Continued from Sheet No. 10.308) CALCrI/wAT10N OF FIXED VALUE OF DEFERRAL PAYMENTS -EARLY CAPACfiY-OPTION 8 Nomtauy, payments for film Capacity shall not commence until the in-service date of the Company's Avoided Unigs). Al the option of the QS. however, the Company may begin malting payments for early capacity consisting of the capital cost component of the value of a yen -by -year detest of the Company's Avoided Unit starting as early as the in-service daze of the QS facility. When such payments for early capacity arc dcetcd, the avoided capital cost component of capacity payments shah be paid monthly commencing no earlier than the Capacity Delivery Date of the QS, and shall be calculated as (I + ip }rm'u (1 + io'r-r/ A.=Ar 12 +Ao I2 form=Ito1 follows: Where: where: Am - monthly psyments to be made to the QS foreach month of the contiser yearn. in dollars per kilowatt per month in which QS delivers capacity pursuant to the early capacity option; k = manual escalation rate associated with the plant cost of the Company's Avoided Unigs); b - annual escalation rate associated with the operation and maintenance expense of the Company's Avoided UWKs): m year for which she fixed value of deraral payments under the early capacity option am made to a QS, starting in year one and dMing in the year l: t the tam, in years, ofthe Standard Offer Contract; A.= F I(I -RYP -R')I F - she cumulative present value, in the year that the contractual payments will begin, of theavoided I capital cost component of capacity payments which would have been made had capacity payments commenced with the anticipated in-service date of the Company's Avoided Unit(s); R n (I+iP)/(I+r) r = annual discount rete, defined as the Company's incremental aft -tax cost ofc*ud; and A. = C I (I - R)/(1 - R ')I whac G = The cumulative present value. in the year that the contractual payments will begh of the avoided fixed operation and maintenance expense component of capacity payments which would have been made had capacity payments commenced with the anticipated in-service date of the Company's AvoidtdUnit(s). R (I+in) /(I+r) The ermently approved parameters applicable to the formulas above we found in Appendix It. (Continued on Sheet No. 103 10) Issued by: S. E. Romig, Director, Rates and Tariffs Effective: May 22, 2007