06/11/2019 - Laserfiche WebLink

Home Browse Search

ORDER NO. PSC -2019 -0220 -TRF -EI DOCKET NO. 20190034 -EI PAGE 5 Upon review of the petition and materials subsequently provided by the utility, we approve FPL's proposed OSPS pilot program and rider. We find that the approved OSPS pilot program approved herein protects the general body of ratepayers by making participating customers responsible for all costs associated with this optional program. The approved tariffs shall become effective 90 days after the issuance of our order approving the program. The proposed OSPS tariff can be found in Attachments A, B, and C, attached hereto. Prior to the expiration of the three-year OSPS pilot program, FPL shall petition this Commission regarding the future of the program. Depreciation Parameters and Rates In accordance with Rule 25-6.0436(3)(b), Florida Administrative Code (F.A.C.), FPL also requested our approval of two new depreciation rates.2 The requested depreciation rates shall be applied to four newly -established plant subaccounts. The subaccounts shall be listed under Federal Energy Regulatory Commission (FERC) Account — 371 - Installations on customers' premises and Account — 372 - Leased property on customers' premises. Pursuant to Rule 25-6.0436(3)(a), F.A.C., electric utilities are required to maintain depreciation rates and accumulated depreciation reserves in accounts or subaccounts in accordance with the Uniform System of Accounts for Public Utilities and Licensees, as found in the Code of Federal Regulations, which is incorporated by reference in Rule 25-6.014(1), F.A.C.3 The four property subaccounts, which are based on Uniform System of Accounts prescribed for public utilities and licensees subject to the provisions of the Federal Power Act are: Account 371.6 - Light -Duty Generators; Account 371.7 - Heavy -Duty Generators; Account 372.6 - Light -Duty Generators; and Account 372.7 - Heavy -Duty Generators. For light-duty generators and associated ancillary equipment, the utility requests approval of a 10 -year average service life (ASL) and a zero percent net salvage level (NS). An annual depreciation rate of 10 percent is computed from these parameters.4 For heavy-duty generators and associated ancillary equipment, FPL requests approval of a 20 -year ASL and a zero percent NS level. An annual depreciation rate of 5 percent is computed from these parameters. FPL provided supporting information detailing typical life expectancies for customer - sited generators covering various levels of electric output.5 The information included life estimates from generator manufacturers, associated trade groups, and engineering -oriented academia. After a review of the provided materials, we find that the utility's life proposals are well founded and approve the proposed 10- and 20 -year ASL for light-duty and heavy-duty generators respectively. Further, this Commission will have future opportunities based on existing rules to evaluate FPL's depreciation data associated with useful lives and net salvage levels and to order modifications as appropriate.6 2 Rule 25-6.0436(3)(b), F.A.C., requires that: "[u]pon establishing a new account or subaccount classification, each utility shall request Commission approval of a depreciation rate for the new plant category." 3 Code of Federal Regulations, Title 18, Subchapter C, Part 101, for Major Utilities, as revised April 1, 2013. 4 Rule 25-6.0436(1)(e), F.A.C., and Rule 25-6.0436(1)(m), F.A.C., specify, the Commission's depreciation rate formulae and methodologies. 3 FPL's Responses to Staff's First Data Request, Document Request No. 1. 6 Rule 25-6.0436(4Xa), F.A.C., requires investor-owned electric companies to file a depreciation study for Commission review at least once every four years from submission of the previous study and/or pursuant to Commission order.