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ORDER NO. PSC -2018 -0314 -PAA -EQ <br />DOCKET NO. 20180073 -EQ <br />PAGE 70 <br />Attachment A <br />Page 65 of 71 <br />DUKE <br />SECTION No. IX <br />FIRST REVISED SHEET NO. 9.464 <br />ENERGY. CANCELS ORIGINAL SHEET NO, 9.464 <br />Where: <br />Where: <br />in = year for which the fixed value of deferral payments <br />under the early capacity option are made to a RF/QF, <br />starting in year one and ending in the year t; <br />t = the Term, in years, of the Contract: <br />Ac = F[(1—R)/(I—W)l <br />F = the cumulative present value, in the year that the <br />contractual payments will begin; of the avoided capital <br />cost component of Capacity Payments which would <br />have been made had Capacity Payments commenced <br />with the Avoided Unit In -Service Date; <br />R = (1 + ip)/(1 + r) <br />r = annual discount rate: defined as DEF's incremental after- <br />tax cost of capital; and <br />Ao = G[(1—R)/(I-R`)l <br />G — The cumulative present value, in the year that the <br />contractual payments will begin, of the avoided fixed <br />operation and maintenance expense component of <br />Capacity Payments which would have been made had <br />Capacity Payments commenced with the Avoided Unit <br />In -Service Date. <br />R = (I +io)/(I +r) <br />The currently approved parameters applicable to the formulas above are found in <br />Schedule 2. <br />CALCULATION OF FIXED VALUE OF DEFERRAL PAYMENTS - <br />LEVELIZED AND EARLY LEVELIZED CAPACITY - OPTION C & OPTION D <br />RESPECTIVELY <br />Monthly fixed value of deferral payments for levelized and early ieveli9ed capacity shall <br />be calculated as follows: <br />ISSUED BY: Javier Portuondo, Director, Rates & Regulatory Strategy - FL <br />EFFECTIVE: April 29.2013 <br />Q � 0 <br />