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ORDER NO. PSC -2020 -0154 -PCO -EI DOCKET NO. 20200001 -El PAGE 10 Duke Energy Florida, LLC DEF participated in our most -recent fuel hearing which took place on November 5, 2019. The Fuel Order issued from the 2019 hearing set forth DEF's initial 2020 fuel, purchased power, and capacity -related cost recovery factors effective with the first billing cycle of 2020.22 DEF implemented a previously -approved rate change effective April 2020.23 The April rate adjustment is associated with the Columbia solar project going into service. Although the April 2020 rates differ from the March rates shown on Schedule E-10 of the DEF Petition, we discuss its rate recommendation from the April 2020 levels.24 Mid -Course Correction 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, DEF combined its total 2019 fuel under -recovery of $21,535,230, with its estimated 2020 fuel over - recovery of $99,767,015, resulting in a net mid -course correction amount of $78,231,785. This is the total amount proposed to be flowed back to customers. DEF's fuel mid -course correction position following the calculation methodology in Rule 25-6.0424(1)(a) F.A.C., is 6.1 percent, which is under the 10 percent threshold prompting a noticing requirement pursuant to the same rule. The projected 2020 over -recovery of fuel charges is specifically associated with a decline in projected fuel costs. DEF's original projection of its 2020 natural gas cost was formulated in June 2019. At that time, DEF projected the average cost of natural gas to be $4.06 per MMBtu. DEF now projects the average 2020 cost of natural gas will be $3.68 per MMBtu (or reduction of 9.4 percent). DEF has proposed to address its 2020 mid -course amount of approximately $78.2 million through reduced fuel cost recovery factors for the month of May 2020. DEF did not revise any of its planned power purchases but "will continue to utilize power purchases when needed to economically and reliably support the needs of the system."25 Further, DEF did not propose any changes to its currently -approved Capacity Cost Recovery factors. Bill Impacts Table 4 below displays the rate impact to a residential customer using 1,000 kWh of electricity a month and further discusses the effects of DEF's request. 22Order No. PSC-2019-0484-FOF-EI. "Order No. PSC-2019-0292-FOF-EI, Docket No. 20190072 -EI, Issued July 22, 2019, In re: Petition for a limited proceeding to approve second solar base rate adjustment, by Duke Energy Florida, LLC. 'Document No. 01736-2020. 'Document No. 01828-2020.