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ORDER NO. PSC -2020 -0154 -PCO -EI DOCKET NO. 20200001 -EI PAGE 4 DECISION Tampa Electric Company On an annual basis, Tampa Electric and other electric IOUs in Florida participate in a technical hearing in this docket for the purposes of evaluating actual and projected fuel, purchased power, and capacity -related costs of service. The most -recent hearing took place on November 5, 2019. The Fuel Order issued from the 2019 hearing set forth the fuel, purchased power, and capacity cost recovery factors that were implemented by all IOUs in Florida effective with the first billing cycle of January 2020.11 Tampa Electric's petition includes both fuel and capacity mid -course correction requests. Tampa Electric has proposed to flow the total mid -course correction amount through the combination of a fuel credit for the months June through August 2020 (as shown in Attachment A, Tariff Sheet No. 6.023, attached) and a reduction to the currently -approved fuel and capacity factors for the period June through December 2020 (as shown in Attachment A, Tariff Sheet No. 6.020). The fuel credit will be shown as a separate line item on the bill. For a residential customer using 1,000 kWh per month, the proposed 3 -month fuel credit is $18.40. The residential fuel rate reduction associated with the remainder of the mid -course correction is $4.17 per 1,000 kWh (7 months, June through December). As proposed, the mid -course correction amount related to capacity will be distributed normally over the remaining 7 -month period for a residential rate reduction of $0.22 per 1,000 kWh. Mid -Course Correction — Fuel With respect to the components of the mid -course correction calculation, which in this case returns the total dollar amount used to calculate the proposed rate reductions, Tampa Electric combined its final 2019 fuel over -recovery of $35,821,098, with its 2020 actual and estimated fuel over -recovery of $94,867,488, resulting in an estimated total over -recovery of $130,688,586. This is the total amount requested be returned to customers in 2020. The fuel mid -course correction position following the calculation methodology in Rule 25-6.0424(1)(a), F.A.C., is 22.3 percent. The projected 2020 over -recovery of fuel charges is specifically associated with a decline in actual and re -projected fuel costs. Tampa Electric's original estimation of natural gas costs for 2020 were formulated based on May 2019 futures data. At that time, Tampa Electric projected the average delivered cost of natural gas to be $3.68 per MMBtu. Tampa Electric now projects, based on March 2020 data, the average 2020 cost of natural gas will be $3.16 per MMBtu (reduction of 14 percent). "Order No. PSC-2019-0484-FOF-EI.