09/10/2019 (2) - Laserfiche WebLink

Home Browse Search

ORDER NO. PSC -2019 -0360 -TRF -EI DOCKET NO. 20190081 -EI PAGE 3 Table 1 Com arison of Differential Per Service Lateral Types of Subdivision Number of Service Laterals in Subdivision Current URD Differential Proposed URD Differential Low Density Tier 1 — 200 or more $0 $0 Tier 2 — 85 — 199 $183.35 $0 Tier 3 — less than 85 $266.35 $0 High Density Tier 1 — 300 or more $0 $0 Tier 2 — 100-299 $0 $0 Tier 3 — less than 100 $57.97 $0 Ganged Meter All Tiers $0 $0 Source: 2016 order and FPL's 2019.filing The calculations of the proposed URD charges include (1) updated labor and material costs along with the associated loading factors and (2) operational costs. These costs are discussed below. Labor and Material Costs The installation costs of both underground and overhead facilities include the labor and material costs to provide primary, secondary, and service distribution lines as well as transformers. The costs of poles are specific to overhead service while the costs of trenching and backfilling are specific to underground service. The utilities are required, by Rule 25-6.078(5) F.A.C., to use current labor and material costs. FPL explained that generally the majority of overhead and underground material and labor costs have increased. since 2016. With respect to labor costs, the cost of underground labor increased at a higher rate than it increased for overhead labor. FPL stated that contractual arrangements driven by market conditions determine the labor rates for both FPL employees and contractors. Table 2 provides the labor and material differential, or pre -operational, costs. As Table 2 shows, only the low density cost differential of $210.53 is a positive number, indicating that underground labor/material costs are higher than overhead labor/material costs for the low density subdivision. For the high density and ganged meter subdivisions, overhead labor/material costs are higher than underground labor/material costs. K ?-q. &-3