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ORDER NO. PSC -2020 -0085 -TRF -EI DOCKET NO. 20190223 -EI PAGE 4 Customers requesting to convert from HPSV under the SL -1 tariff to LED lights under the LED tariff pay a monthly conversion recovery fee. The conversion recovery fee allows FPL to recover the remaining net book value and removal costs of the HPSV fixtures over a 25 -year term. FPL proposes to revise the monthly conversion recovery fee from $1.03 to $1.87 per fixture based on updated cost assumptions and a correction to the calculation. FPL explained that the quantity of HPSV lights installed has increased since 2016, resulting in a higher net book value per light. The removal cost per light, on the other hand, has reduced as the estimated time to remove a light has decreased. Finally, the cost of capital rate has been updated based on FPL's current pre-tax cost of capital of 10.36 percent. FPL calculated a levelized payment stream of the net book value plus removal cost multiplied by the cost of capital rate, over the 25 -year term of recovery. FPL further explained that its current cost recovery fee calculation included a formula error, resulting in an understated conversion recovery fee. We find that the monthly conversion recovery fee calculation methodology used by FPL is reasonable and that the proposed increase in the conversion recovery fee will be partially offset by the reduction in the proposed maintenance charges. As a result of the pilot program's popularity, FPL is proposing to make the LED tariff and accompanying LT -1 Agreement permanent. This optional LED tariff will provide more LED lighting options to customers. Based on our review of FPL's petition and responses to data requests, we hereby approve as a permanent tariff FPL's LED tariff as shown in Attachment A to this order. The LED tariff and associated agreement shall become effective as of our vote on March 3, 2020. Based on the foregoing, it is ORDERED by the Florida Public Service Commission that Florida Power & Light Company's Light Emitting Diode Streetlight Tariff and accompanying Light Emitting Diode Streetlight Agreement, as stated on Attachment A, are hereby approved as a permanent tariff It is further ORDERED that the effective date of Florida Power & Light Company's Light Emitting Diode Streetlight Tariff and Streetlight Agreement shall be March 3, 2020. It is further ORDERED that if no timely protest is filed, within 21 days of the issuance of this order, the tariffs shall remain in effect pending resolution of the protest. If no timely protest is filed, this docket shall be closed upon the issuance of a consummating order. 4-4