Laserfiche WebLink
ORDER NO. PSC -2018 -0314 -PAA -EQ <br />DOCKET NO. 20180073 -EQ <br />PAGE 68 <br />Attachment A <br />Page 63 of 71 <br />40DUKE SECTION No. IX <br />) FIRST REVISED SHEET NO. 9.462 <br />ENERGY. CANCELS ORIGINAL SHEET NO. 9.462 <br />SCHEDULEI <br />TO RATE SCHEDULE COG -2 <br />CALCULATION OF VALUE OF DEFERRAL PAYMENTS <br />APPLICABILITY <br />This Schedule I provides a detailed description of the methodology used by DEF to <br />calculate the monthly values of deferring or avoiding the Avoided Unit identified in the <br />Contract. When used in conjunction with the current FPSC-approved cost parameters <br />associated with the Avoided Unit contained in Schedule 2, a RF/QF may determine the <br />applicable value of deferral capacity payment rate associated with the timing and <br />operation of its particular facility should the RF/QF enter into a Contract with DEF. <br />Also contained in this Schedule I is the discussion of the types and forms of surety bond <br />requirements or equivalent assurance for payment of the Termination Fee acceptable to <br />DEF in the event of contractual default by a RF/QF. <br />CALCULATION OF VALUE OF DEFERRAL OPTION A <br />FPSC Rule 25-17.0832(5) specifies that avoided capacity costs, in dollars per kilowatt <br />per month, associated with capacity sold to a utility by a RF/QF pursuant to Contract <br />shall be defined as the year-by-ycar value of deferral of the Avoided Unit. The year -by - <br />year value of deferral shall be the difference in revenue requirements associated with <br />deferring the Avoided Unit one year, and shall be calculated as follows: <br />VAC,,, = 1/12 [KI„ (1 — R) / (1 — RL) + On] <br />Where, for a one year deferral: <br />VAC,, = Utility's monthly value of avoided capacity, in dollars per <br />kilowatt per month, for each month of year n; <br />K = present value of carrying charges for one dollar of <br />investment over I, years with carrying charges computed <br />using average annual rate base and assumed to be paid at <br />the middle of each year and present valued to the middle <br />of the first year; <br />R = (1 +ip)/(l +r); <br />I„ = total direct and indirect cost, in mid -year dollars per <br />kilowatt including AFUDC but excluding CWIP, of the <br />Avoided Unit with an in-service date of year n, <br />including all identifiable and quantifiable costs relating <br />to the construction for the Avoided Unit which would <br />have been paid had the Avoided Unit been constructed; <br />ISSUED BY: Javier Portuondo, Director, Rates & Regulatory Strategy - FL <br />EFFECTIVE: April 29, 2013 <br />ffl <br />