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ORDER NO. PSC -2018 -0435 -TRF -EI DOCKET NO. 20180088 -EI PAGE 5 In response to Commission staff's data request, DEF clarified that if an opt -out customer already has a non-communicating meter installed at the premises, the customer would not be required to pay the $96.34 one-time set up fee as DEF would not incur the cost for the non- standard meter installation. This provision was not reflected in the original opt -out tariff fled by DEF; therefore, DEF filed a revised tariff to clearly state when the one-time fee would not be assessed. Monthly Surcharge The monthly surcharge to take service under the opt -out tariff is $15.60, which reflects a combination of upfront IT related and ongoing meter reading related service costs. DEF states that its upfront IT costs are predicted to be $374,014. This is the estimated cost to update the customer system and change business processes to accommodate the opt -out tariff program. DEF used a 5 -year recovery period for its IT costs to derive monthly IT related costs of $4.58 per customer, which -is the same recovery period we approved for FPL's opt -out tariff. After installation of a non-standard meter, the only ongoing costs to the Utility will be the monthly meter readings, which the Utility estimates to be $11.02 per customer. These costs reflect the meter reading position rates and the vehicle rates, both for an estimated 20 minutes per meter reading. In response to Commission staff's data request, DEF stated that assuming that opt -out customers are spread across the Utility's service territory, it is estimated to take 20 minutes to travel to the customer premises, get out of the vehicle, read the meter, log the read, and return to the vehicle to continue on the route. Customer Notice and Deployment The Utility states that AMI deployment is set to begin November 2018; therefore, DEF is requesting that the opt -out tariff be available the first billing cycle of December 2018. Two weeks prior to a customer receiving a smart meter, DEF shall mail a postcard to the customer informing them of the meter exchange and providing more information on smart meters. The postcard shall include a toll-free number to call for questions regarding smart meters and the option to opt out. Information regarding smart meter deployment and the opt -out tariff shall also be on the Utility's website. Reporting Within three months after the AMI smart meter deployment is completed, December 2021, DEF shall report to this Commission on the costs of the program, revenues, and actual participation. We find that three months is a reasonable time to allow DEF to prepare and file a report in this docket, which shall happen no later than March 31, 2022. If AMI smart meter deployment is significantly delayed beyond the Utility's anticipated completion date, the Utility shall notify this Commission with a filing in this docket. It is noted that FPL is required to file annual smart meter progress reports; however, DEF, in response to Commission staff's data request, stated that it does not believe a formal N,5