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ORDER NO. PSC -2018 -0367 -TRF -EI DOCKET NO. 20180084 -EI PAGE 2 If DEF constructs and places in service the Citrus Combined Cycle Project in 2018, Paragraph 14(a) of the 2017 Settlement provides a base rate increase referred to as the 2018 Generation Base Rate Adjustment (GBRA). As required under Paragraph 14(a) of the 2017 Settlement, DEF's initial 2018 GBRA for the Citrus Combined Cycle Project must reflect the costs used to support the need determination case. On April 2, 2018, DEF filed the instant petition for a limited proceeding for approval to include in base rates the revenue requirement for the Citrus Combined Cycle Project. The project is expected to be placed in service in two phases: September 2018 and November 2018. Phase 1 will include the construction of Unit 1 and the associated transmission/common equipment. Phase 2 will include the construction of Unit 2. DEF has requested that we approve the estimated revenue requirement of $200,488,588 for the entire GBRA and approve the necessary tariffs to reflect the change in base rates in October 2018 and December 2018. DEF waived the 60 -day file and suspend provision of Section 366.06(3), Florida Statutes (F.S.). We have jurisdiction pursuant to Section 366.06 and 366.076, F.S. Decision Petition to include in base rates the revenue reauirement for the Citrus Combined Cvcle Proiect DEF stated in its petition that the Citrus Combined Cycle Project will be placed in service in two phases: September 2018 and November 2018. DEF requested that we approve the revenue requirement necessary for the rate increase in both phases, with an estimated retail revenue requirement totaling $200,488,588. As discussed in the background, this Commission evaluated the estimated cost for the Citrus Combined Cycle Project in the need determination, and the GBRA cost recovery method was set forth in the 2017 Settlement. Our review of DEF's cost estimate and revenue requirement calculations are discussed below along with the rate impact. Cost Estimate Based upon Exhibit B, which DEF attached to its petition, the total operating expenses for Unit 1, Unit 2, and transmission/common equipment are $53,006,000, $38,811,000, and $2,406,000, respectively, for the first year. These costs include operating and maintenance (O&M), depreciation, property insurance, and property tax. DEF affirmed that these costs are the same as those used by DEF to support its need determination case, consistent with the requirement under Paragraph 14(a) of the 2017 Settlement.3 3Document No. 03716-2018 - DEF's response to Commission staff's second data request, No. 1. 7) .-q—