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ORDER NO. PSC -2019 -0220 -TRF -EI DOCKET NO. 20190034-E1 PAGE 2 Decision FPL's petition for requesting our approval of the proposed OSPS pilot program includes provisions which protect the general body of ratepayers by making participating customers responsible for all costs associated with this optional program. The proposed tariffs would become effective 90 days after the date that we approve the program. The proposed OSPS tariff can be found in Attachments A, B, and C. Prior to the expiration of the three-year OSPS pilot program, FPL would petition this Commission regarding the future of the program. Customers currently have the option of contracting with licensed electrical contractors or general contractors not affiliated with FPL to install on-site back-up generation. FPL stated that the process of finding a back-up generation solution could require a customer to independently research solutions, solicit offers from installers, evaluate installers, and negotiate the terms of a contract. FPL explained that customers would have significant up -front and continuing costs associated with back-up generation including the monitoring, maintenance, and repair of the equipment. Based on inquiries made by customers and conversations with customers, FPL asserted that customers are increasingly seeking back-up power solutions. OSPS Pilot Program Overview FPL's proposed OSPS pilot program introduces the option of back-up power to customers that wish to avoid the associated ownership and maintenance responsibilities. Under the OSPS pilot program, FPL would be responsible for the monitoring, maintenance, and repair of the equipment located on a customer's premises. The customers are responsible for all costs associated with this service through a monthly fee. FPL has projected that approximately 300 customers will participate in the OSPS pilot program. FPL explained that the appropriate back-up power solution would be determined by the customer's needs and the feasibility of system implementation. The utility would conduct an evaluation of customer requirements and of potential solutions. The utility and the customer would thereafter execute a residential or non-residential OSPS agreement that includes all the terms and conditions of the OSPS service. In addition, a customer -specific "Statement of Work" would include a description of the equipment installed, the service to be performed by FPL, and the monthly charge for the service. The agreements are included as Attachments B and C. Under the terms of the OSPS agreements, customers commit to remain in the OSPS pilot program for the specified term or otherwise compensate FPL for the net unrecovered capital and maintenance costs of the installed assets. OSPS Equipment FPL explained that the type of back-up generators contemplated for use will depend on each customer's needs and is subject to change over time as technology advances. The OSPS pilot program is designed to accommodate any back-up and power conditioning technology currently available or available in the future. Currently, the types of generators contemplated for use include: • "Whole House" residential standby generators — primarily 120/240V single-phase, stationary generators fueled by either natural gas or liquid propane, ranging from approximately 10 kilowatts (kW) to 50 kW.