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ORDER NO. PSC -2018 -0318 -PCO -EI DOCKET NO. 20180007 -El PAGE 2 We have jurisdiction over this matter pursuant to Sections 366.05 and 366.8255, Florida Statutes.(F.S.) Analysis and Decision The projected ECRC costs for 2018 were developed before the Tax Act was signed into law. The Tax Act will have the effect of lowering the federal income tax rate for corporations from 35 percent to 21 percent; therefore, some of the costs embedded into the total projected ECRC costs for 2018 are overstated. Federal income tax amounts are included in the calculation of the costs that have a capital component. Adjustments for tax impacts on revenue requirements recovered through the ECRC will change the currently -approved factors. The Tax Act is projected to result in an over -recovery of approximately $19.1 million or 9.2 percent. Approval of FPL's Mid -Course Petition will result in a reduction to the typical 1,000 kWh monthly residential customer bill of $0.36. The tariffs associated with the mid -course corrections are included as Attachment A of this order. The Company will include a short bill insert on all customer bills 30 days in advance of the rates taking effect, and will provide updated rate schedules on its website. FPL's Mid -Course Petition was filed with the intention of the proposed decrease in rates becoming effective July 1, 2018. Typically, effective dates are set at a minimum of 30 days after our vote modifying the charges as the result of a mid -course correction. This time limit is imposed in order to not have new rates applied to energy consumed before the effective date of our action. However, we have also implemented charges in less than 30 days when circumstances warrant. In this instance, the interval between our vote on this matter and the proposed implementation date is 25 days. Because approval of the Mid -Course Petition results in a decrease to cost recovery factors, we find the 25 day interval to be sufficient. Upon review, we find it appropriate to approve FPL's Mid -Course Petition. This results in a reduction in the ECRC factors and a decrease in customer bills. The revised factors and associated tariffs shall become effective July 1, 2018. Based on the foregoing, it is ORDERED by the Florida Public Service Commission that Florida Power & Light Company's Mid -Course Petition and associated tariffs are approved. The revised factors and associated tariffs shall become effective on July 1, 2018. It is further ORDERED that the Environmental Cost Recovery Docket is on-going and shall remain open. 7 ZL