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ORDER NO. PSC -2019 -0265 -PAA -EQ <br />DOCKET NO. 20190082 -EQ <br />PAGE 35 <br />FLORIDA POWER & LIGHT COMPANY <br />Attachment A <br />Original Sheet No. 10308 <br />APPENDIX 1 <br />TO RATE SCHEDULE QS -2 <br />CALCULATION OF VALUE OF DEFERRAL PAYMENTS <br />APPLICABILITY <br />Appendix T provides a detailed description of the methodology used by the Company to calculate the monthly values of deferring or avoiding the <br />Company's Avoided Unit identified in Schedule QS -2. When used in conjunction with the c nrent F1'SC-approved Oast parameters a'ssi.aiatcd with the <br />'Company'sAvoided Unit contained in Appendix 14, a QS may determine the applicable' value of deferral capacity payment tate assoclatcd with the <br />timing and operation of its particular facility should the QS enter into'a Standard Offer Contract with the Conip arty. <br />CALCULATION OF VALUE OF DEFERRAL OPTION A <br />FPSC Rule 25-17.0832(5) specifics that avoided capacity costs, in dollars per lalowatt per month, associated with capacity sold to a utility by a QS <br />pursuant to the Company's Standaad Offer Contrict shall be defined as the year -by -year value of de renal of the Comp:my's Avoided Unit. The year -by - <br />year valve Of deferral shall be the difference in revenue requirements associated with deferring the Company's Avoided Unit one year, and shall be <br />calcirlated as follows: <br />Where, fora one year deferral: <br />VAC. = utility's monthly -value of avoided capacity and O <br />in dollars per'idlowatt per month, for each month of <br />yearn <br />K = present valve of carrying charges foronedollar of <br />investment over L years with carrying charges <br />computed using average annual jute base and assumed <br />to be 'slid at the middle of each year and present valued <br />tb the middle of the first year, <br />R (1i'ip)/.(1'hr <br />total direct and indirect cost, in and -year dollars per <br />Idlowatt including AFUDC but excluding CWIP, of the <br />Company's Avoided Unit With an in-service date of year <br />n, including all identifiable and quantifiable costs <br />relating to the construction of the Companys Avoided <br />Unit Which would have been paid had the Unit beet <br />-constructed; <br />O. = total fixed operation and m.unteremce expense for the <br />year n in mid year dollars per kilowatt per year, of the <br />Company's Avoided Unit <br />ie animal escalation rate associated with the plant cast of <br />the Company's Avoided Unit(s); <br />annual escalation rate associated with the operation and ntaintercmce expense of the Company's <br />Avoided Unit(sk <br />annual discount rate, defined as the utility's inemnurral after tax coot of capital <br />L expected life of the Company's Avoided Units} and <br />n = year for which the Company's Avoided Unit(s) is (are) deferred starting with its (their) original <br />anticipated in-smice date(i) and ending with the termination of the Company's Standard Offer <br />Contract. <br />(Continued on Sheet No. 10.309) <br />Issued by: S. E. Romig, Director, ,Rates and Tariffs <br />Effective: May22, 2007 <br />