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ORDER NO. PSC -2019 -0220 -TRF -EI DOCKET NO. 20190034 -EI PAGE 4 In addition to annual revisions to the fuel expense, FPL stated that the monthly service payment may be adjusted by agreement of both the customer and the utility during the term of service. Reasons for modifying the monthly fee may include, but are not limited to, changes in service required by the customer, requests by the customer for supplemental equipment or services, or changes or increases in the customer's facilities which will materially affect the operation of the utility's equipment. FPL proposed to include the capital costs of the OSPS pilot program in rate base and the revenues from the monthly fee will be included in base rate operating revenue (which acts as a credit when setting base rates). FPL asserts that the OSPS program is designed to have no impact on the general body of ratepayers over the life of the equipment and that the capital investment only occurs after a customer signs a long-term contract. Table 1 shows three examples of generators with potential parameters contemplated for use under the OSPS pilot program. Numbers provided below by FPL are for illustrative purposes and actual costs are contingent on specific project requirements. Table 1 Exam les of Monthly Service Payments Equipment Type Capital Costs On-going Contract Term Monthly Service Expenses Payment Residential, light- duty, whole -house generator $15,000 $1,000/year 10 years $303/month 100 kW commercial heavy-duty generator $90,000 $2,750/year 20 years $1,167/month 1,000 kW industrial heavy-duty generator $650,000 $9,250/year 20 years $7,302/month Source: FPL's response to staff s data request, No. 14. OSPS Pilot Program Period FPL requested that we approve the OSPS pilot program as a pilot program and an experimental rate for a period of three years. FPL requested that this three-year period commence 90 days after the date of our order approving the OSPS pilot program. The utility stated that the three-year period will allow FPL to gain insight into the benefits, costs, and optimal economic implementation of various customer -sited back-up power solutions and equipment configurations. During this time, FPL will determine whether the estimates and assumptions used in developing the OSPS pilot program were reasonably accurate and that if continuing the OSPS program on a permanent basis is warranted. If the utility decides against continuing the OSPS program after the pilot period expires, FPL proposed that customers taking service under the OSPS pilot program would be allowed to continue being served pursuant to and through the term of their OSPS agreement.