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ORDER NO. PSC -2018 -0314 -PAA -EQ <br />DOCKET NO. 20180073 -EQ <br />PAGE 73 <br />j• DUKE <br />ENERGY <br />Attachment A <br />Page 68 of 71 <br />SECTION No. IX <br />€LEVB?444-TWELFTH REVISED SHEET NO. 9.467 <br />CANCELS TENTH -ELEVENTH REVISED SHEET <br />NO. 9.467 <br />SCHEDULE2 <br />TO RATE SCHEDULE COG-2CAPACITY OPTION PARAMETERS <br />FIXED VALUE OF DEFERRAL PAYMENTS - <br />NORMAL CAPACITY OPTION PARAMETERS <br />Where, for one year deferral: <br />Value <br />VIC,,, <br />= DEF's value of avoided capacity and O&M, in dollars per <br />4.94 <br />kilowatt per month, during month in: <br />K ( <br />= present value of carrying charges for one dollar of investment <br />1.284 <br />over L years with carrying charges computed using average <br />annual rate base and assumed to be paid at the middle of each <br />year and present valued to the middle of the first year; <br />]n I <br />= total direct and indirect cost, in mid -year dollars per kilowatt <br />767.9502 <br />including AFUDC but excluding CWIP, of the Avoided Unit <br />%with an in-service date of year n; <br />OJ <br />= total fixed operation and maintenance expense, for the year n, in <br />3.85 <br />mid -year dollars per kilowatt per year, of the Avoided Unit: <br />ip <br />— annual escalation rate associated with the plant cost of the <br />2.50% <br />Avoided Unit, <br />i" <br />= annual escalation rate associated with the operation and <br />2.50% <br />maintenance expense of the Avoided Unit; <br />r I <br />= annual discount rate, defined as DEF's incremental after-tax cost <br />7.1565% <br />of capital; <br />L <br />= expected life of the Avoided Unit; <br />35 <br />n I <br />— year for which the Avoided Unit is deferred starting with the <br />20274 <br />Avoided Unit In -Service Date and ending with the Tennination <br />Date. <br />ISSUED BY: Javier Portuondo, Manaaina Director, Rates & Regulatory Strategy • FL <br />EFFECTIVE: July, F4i <br />