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ORDER NO. PSC -2019 -0360 -TRF -EI DOCKET NO. 20190081 -EI PAGE 2 Decision Rule 25-6.078, Florida Administrative Code (F.A.C.), defines investor-owned utilities' (IOU) responsibilities for, filing updated URD tariffs. FPL has fled t)le instant petition pursuant to subsection (3) of the rule, which requires IOUs to file supporting data and analyses for URD tariffs at least once every three years. The URD tariffs provide charges for underground service in new residential subdivisions and represent the additional costs, if any, the utility incurs to provide underground service in place of overhead service. The cost of standard overhead construction is recovered through base rates from all ratepayers. In lieu of overhead construction, customers have the option of requesting underground facilities. Any additional cost is paid by the customer as contribution -in - aid -of construction (CIAC). Typically, the URD customer is the developer of a subdivision. Traditionally, three standard model subdivision designs have been the basis upon which each IOU submits URD tariff changes for Commission approval: low density, high density, and a high density subdivision where dwelling units take service at ganged meter pedestals (groups of meters at the same physical location). Examples of this last subdivision type include mobile home and recreational vehicle parks. While actual construction may differ from the model subdivisions, the model subdivisions are designed to reflect average, overhead and underground subdivisions. Costs for underground construction have historically been higher for standard overhead construction and the additional cost is paid by the customer as a CIRC. In FPL's 2016 underground differential tariff, the cost differential was zero for ganged meters and some tiers of the low and high density subdivisions. As shown on Table 1, FPL's .proposed URD differential charges are now $0 for all three subdivision models. Therefore, the URD customer will not be assessed a CIAC charge for requesting underground service in a new residential subdivision. FPL explained that the decrease in the differentials, for some subdivision tiers, is primarily attributable to changes in operational costs as discussed in more detail in the section of the recommendation titled operational costs. Table 1 shows the current and proposed URD differentials for the low density, high density, and ganged meter. subdivisions.