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ORDER NO. PSC -2020 -0212 -PAA -EQ DOCKET NO. 20200114 -EQ PAGE 37 FLORIDA POWER & I IGIIT COMPANY Attachment A Original Sheet No. 10309 (Continued from Sheet No. 10.308) CALCULATION OF FIXED VALUE. OF DEFERRAI. PAYMENTS — FARI.Y CAPACITY -OPTION R Nornuaiy, payments for firm capacity shall not commence until the in-service date of the Company's Avoided Unit(s). At the option ofthe QS, however, the Company may begin malting payments for cady capacity consisting of the capital cost component of the value of.a year -by -year defenai of the Comparty+s Avoided Unit starting as catty as the in-scnicc date of the QS facility. When such payments for catty capacity are elected, the avoided capital cost component of capacity payments stall be paid monthly commencing no earlier than the Capacity Delivery pate ofthe QS, and shall be calculated as fo11 Rw Where: (1 + ip I" (1 + lo bra•)) A m -A,12 +Ao 12 for m=ltot When: - ip monthly payments to be made to the QS for each month of the contract year n, in dollars per lilowati per month in which QS delivers capacity pursuant to the early capacity option; annual escalation rate associated with the plant cost of the Company's Avoided Unit((), annual escalation rate associated with the operation and maintenance expense oldie Company's Avoided Unit(s), year for which the fixed value of deferral payments under the early rapacity option arc made to a QS, starting in year one and ending in the year t; t — the tern, in yeas, of the Standard Offer Contract A, = F I(l-R).r(1 -R')1 F the cumulative present value, in the year that the contractual payments will begin, of the avoided capital east component of capacity payments which would have been made had capacity payments commenced with the anticipated in-service date ofthe Company's Avoided Units) R — (I+ip)/(1+r) r annual discount rue, defined as the Cominny's incremental rifer -tat, ccert of capital; and Where: e = t3 C (1 — R) t(1 — R `)1 0 e • 111e -cumulative present value,•at the year that the contractual payments Will begin, Of Ute avoided fixed operation and maintenance expanse eiomponcnt of capacity payments which would have 'been made had capacity payment commenced with the anticipated in-service date of the Omparty'n Avoided Unit(s). R (1+io)!(1+r) The cturatdy approved oaninieters applicable to'the formulas above are found in Appendix 11. (Continued on Sheet No. 10.310) Issued by: S. E. Romig, Director, Rates and Tariff's Effective: May 22,2007