06/11/2019 - Laserfiche WebLink

Home Browse Search

ORDER NO. PSC -2019 -0220 -TRF -EI DOCKET NO. 20190034 -EI PAGE 3 • Commercial standby generators — either single-phase or three-phase stationary generators, fueled by natural gas, liquid propane, or diesel, ranging in size from 20 kW to over 60 kW. These generators are used for small -to -medium commercial applications that do not have demanding load requirements. • Large commercial/industrial "Heavy Duty" standby generators — three-phase stationary generators typically fueled by diesel or natural gas, ranging in size from approximately 50 kW to over 2 megawatts. These generators are typically custom-built for the application and designed to meet demanding, critical load requirements. - The utility explained that, with customer approval, FPL may install additional equipment, such as interconnection, dispatch, control and/or monitoring equipment, which would enable FPL to dispatch the equipment to assist with system emergencies. The costs of such interconnection or dispatch equipment would not be included in the customer's monthly payment and are therefore borne by the utility. The customer will always have the primary right to the power and any potential dispatch of equipment to support grid operations will not encumber the equipment's ability to provide the service specified in the customer's OSPS agreement. Monthly Service Payment FPL explained that a customer's monthly payments will cover all costs associated with the back-up generation provided by FPL. The monthly fee is referred to as a monthly service payment in the proposed tariff. The tariff provides a formula that FPL would use to calculate the monthly fee. FPL provided work papers to show sample calculations, based on generator size, in response to Commission staff's first data request, No. 14. The monthly fee will apply in addition to all otherwise applicable charges. The monthly fee will reflect two types of costs intended to be recovered over the term of a customer's OSPS agreement: (1) capital costs of the installed generator and (2) on-going expenses. The two types of costs are discussed below. Capital Costs Each customer's capital costs will be identified in an engineering/evaluation phase. FPL states that the capital costs under the OSPS pilot program will include the cost of the selected equipment and the cost of installation. Installation costs may include engineering, surveys, construction plans, permits, site preparation, and miscellaneous materials. Carrying costs that reflect FPL's approved capital structure will be assessed on the total capital amount. On-going Expenses The projected on-going expenses recovered under the OSPS pilot program may include, but are not limited to: non -fuel operations and maintenance expenses, administrative and general expenses, depreciation expenses, and property taxes on the installed equipment. In addition, the expenses include a six percent factor to reflect a bad debt and loss reserve. FPL explained that the utility may provide fueling services to non-residential OSPS pilot program customers in limited cases. Fuel expenses will be added to the customer's monthly service payment and will be trued -up annually based upon actual and forecasted operating parameters and fuel costs. The utility stated that the fuel costs incurred under the OSPS pilot program will not be included in FPL's fuel cost recovery clause filings.