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ORDER NO. PSC-2018-0316-PAA7EQ DOCKET NO. 20180083 -EQ PAGE 45 Attachment A VLUJU VA YUW bK & L14UH I I;VMYAN T singtitai `ineea No. iVJi4 APPENDIX C TO THE STANDARD OFFER CONTRACT TERMINATION FEE The Termination Fee shall be the sum ofthe values for each month beginning with the month in which the Capacity Delivery Date occurs through the mouth of termination (or month of calculation, as the case may be), computed according to the following formula: Termination Fee =Termination Fee applicable to Capacity Payment Option plus Termination Fet applicable to Fixed Firm Energy Option Termination Fee applicable to Capacity Pavirent Options B. C. D and E where: (MCP, - MCPci) x t" with: MCPCi = 0 for all periods prior to the in-service date of the Company's Avoided Unit; I = mmnber of the Monthly Billing Period commencing with the Capacity Delivery Date (i.e., the month in which Capacity Delivery Date occurs =1; the month following the month in which Capacity Delivery Date occurs = 2; eta) n = the number of Monthly Billing Periods which have elapsed from the month in which the Capacity Delivery Date occurs through the month of termination (or month ofcalculation, as the csse may be) t = the future value of an amount factor necessary to compound a sum monthly so the annual percentage rate derived will equal FPL's incremental after-tax avoided cost of capital (defined as r in QS -2). For any Monthly Billing Period in which MCPCI Is greater than MCR. t shall equal 1. MCP, v Monthly Capacity Payment paid to QS corresponding to the Monthly Billing Period 4 calculated in accordance with Appendix B. MCPC, = Monthly Capacity Payment for Option A corresponding to the Monthly Billing Period 1, calculated in accordance with QS -2 In the event that for any Monthly Billing Period, the computation of the value of the capacity Payment Termination Fee for such Monthly Billing Period (as set forth above) yields a value equal to or greater then zero, the amount of the Capacity Payment Terminadon Fee shall be increased by the amount of such value. In the event that for any Monthly Billing Period, the computation of the value of the Capacity Payment Termination Fee for such Monthly Billing Period (as set forth above) yields a value less thin aero, the amount of the Capacity Payment Termination Fee shall be decreased by the amount of such value expressed as a positive number (the "Initial Reduction Value"); provided, however, that such Initial Reduction Value shall be subject to the following adjustments (the Initial Reduction Value, as adjusted, the "Reduction Value"): a In the event that in the applicable Monthly Billing Period the Annual Capacity Billing Factor (ACBF),'as defined in Appendix B is lass than 80%, then the Initial Reduction Value shall be adjusted to equal sero (Reduction Value = 0), and the Capacity Payment Termination Fee shall not be reduced for the applicable Monthly Billing Period b. In the event that in the applicable Monthly Billing Period the Annual Capacity Billing Factor (ACSF), as defined in Appendix B, is equal to or greater than 8VA but less than 979'a then the Reduction Value shall be determined as follows: Reduction Value =Initial Reduction Value x 10.04 x (ACBF- n)) For the applicable Monthly Billing Period, the Termination Fee shall be reduced by the amount of such Reduction Value. In no event shall FPL be liable to the QS at any time for any amount by which the Capacity Payment Termination Fee, adjusted in accordance with the foregoing, is less than sero (0). Termination Fee applicable to the Fixed Firm Enerin Payment Qgtinn.0 Prior to in-servioe date ofavoided unit The TerminatiortFee for the Fixed Firm Energy Option shall be equal to the emulative sum of the Fixed Firm Energy Payments made to the QS pursuant to Option D. starting with the in-sdvice date of the QS belly. for each billing cycle. Such nuirnber shall reach the maximum amount on the billing cycle immediately preceding the billing cycle associated with the in-service date of the Avoided Unit. After in-service date of avoided unit - The Termination Foe shall be decreased each billing cycle following the in-service date of the avoided unit by an amount equal to the difference between the pr*cted Fixed Energy Cost that was used in the calculation to determine the base energy cost to be fixed and amortized pursuant to Option D Por such billing cycle and the amortized Fired Firm Energy Payment in ceaWK WH times the energy delivered by the QS not to exceed the MWH block spewed in Appendix E. Issued by: S. E. Romig, Director, Rates and Tariffs Effective: May22,2007