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ORDER NO. PSC -2020 -0085 -TRF -EI DOCKET NO. 20190223 -EI PAGE 3 The matrix (titled Monthly Rates for LED Fixtures), included in Tariff Sheet No. 8.736 (see Attachment A, page 3 of 10), shows the fixture and energy charges applicable to each fixture. Fixtures vary by style, watts, lumens, and other factors. FPL explained that customers have been requesting more expensive fixtures and/or higher wattage fixtures than currently available. FPL, therefore, proposed to include additional fixture and energy tiers in the matrix to accommodate the demand for additional fixture options. With the additional fixture options, the expanded matrix will show a total of 15 fixture tiers and 31 energy tiers. The 15 fixture tiers are shown on the X axis and each tier represents the monthly fixture charge for LED fixtures whose installed costs fall within the range covered by that tier. Each tier increases by $3. The individual fixture cost is based on the estimated cost to install plus the carrying costs associated with the initial capital investment (cost of capital, depreciation, property tax, and insurance cost). This all -in cost is annualized using the asset life, and then divided by 12 to arrive at the monthly fixture cost. The monthly cost is then assigned to the appropriate fixture tier on the LED matrix. FPL provided the calculation of a monthly fixture cost in response to Staff's First Data Request No. 9. We find that the monthly fixture cost calculation methodology used by FPL is reasonable. The 31 energy tiers are shown on the Y axis and each tier represents the monthly energy charge for fixtures whose energy usage falls within specified wattage ranges. Each energy tier increases by $0.20. FPL provided the calculation of a monthly energy charge in response to Staff's First Data Request No. 11. We find that the monthly energy charge calculation methodology used by FPL is reasonable. Maintenance Charges FPL reduced the maintenance charge from $1.82 to $1.29 per fixture for fixtures on FPL - owned poles and from $1.27 to $1.03 per fixture for fixtures on customer -owned poles. The proposed maintenance charges are based on FPL system -wide maintenance costs for LED fixtures. FPL explained that the calculation of the current maintenance charge was based on mostly HPSV fixtures, as in 2016 the majority of FPL's lighting infrastructure was comprised of HPSV fixtures. However, with the increase in LED fixtures in recent years, FPL stated that it now has more maintenance data specific to LED fixtures. The data show that the maintenance costs for LED fixtures are lower than for HPSV fixtures, resulting in the proposed lower maintenance charges. The maintenance charge for fixtures on customer -owned poles ($1.03) is set at 80 percent of the maintenance charge for fixtures on FPL -owned poles ($1.29). FPL explained that approximately 20 percent of the maintenance expense is related to pole or conductor repair. We find that the monthly maintenance charge calculation methodology used by FPL is reasonable. The maintenance charge is designed to recover the costs associated with maintaining the LED street light system and includes costs such as repairing poles, conductors, cable, replacing photocells, or replacing connectors. FPL proposes to continue to utilize a method of allocating maintenance charges which relies upon a flat fee per fixture rather than varying the fee based on the cost of the fixtures. Conversion Recovery Fee