01/05/2021 - Laserfiche WebLink

Home Browse Search

ORDER NO. PSC-2020-0508-TRF-EI DOCKET NO. 20200209-EI PAGE 6 important to ensure that any potential revenue shortfall is not borne by the general body of ratepayers. The 2014 Order requires that at the conclusion of the program, any revenue requirement exceeding revenue was to be recorded below-the-line, and absorbed by the utility's shareholders.16 To date,the program has had a surplus of revenues;therefore,the general body of ratepayers has not borne any of the costs associated with this program. However, certain regulatory actions are necessary to protect the general ratepayers from any potential revenue shortfalls which may be realized through 2025 resulting from the proposed accelerated depreciation rates combined with potentially higher than estimated attrition rates. According to FPL's projections, a program revenue shortfall begins to occur in 2021, and is projected to grow each year thereafter until the end of the SolarNow program.17 These shortfalls, without the additional measures detailed below, might otherwise be included in the utility's next rate proceeding, and ultimately affect the base rates of the general body of ratepayers. In compliance with the 2014 Order, FPL shall move the SolarNow program below the line in its next rate case. To this end, the utility shall make adjustments to its MFRs when it files its next general rate case impacting 2021 through 2025 customer rates.'8 These MFR adjustments shall remove all revenues, expenses,plant in service, and accumulated depreciation related to the SolarNow program. By adjusting the MFRs in this manner, any revenue shortfall will be borne by FPL's shareholders rather than FPL's general body of ratepayers, as originally intended by the utility, and mandated by our 2014 Order. At the same time, if any surplus remains after final disposition of the program,the shareholders may donate these funds to STEAM-related charities, as referenced on page 10 of the Petition. III. Conclusion We find that the accelerated depreciation of SolarNow assets as proposed by FPL, with the MFR adjustments detailed above, is appropriate given that the purpose of the assets in this voluntary program is achieved within the period of the program. The regulatory treatment identified herein will also protect the general body of ratepayers from financial harm, both during the period of the program and after the program's conclusion. Therefore, we hereby approve FPL's request for accelerated depreciation, with the condition the utility removes all revenues, expenses,plant in service, and accumulated depreciation associated with the SolarNow program from its MFRs in any rate proceeding the utility may file which impacts 2021 through 2025 customer rates. 16 Order No. PSC-14-0468-TRF-EI, issued in Docket No. 140070-EI, on August 29, 2014, In re: Petition for approval of voluntary solar partnership pilot program and tariff by Florida Power&Light Company. '' Document No. 11838-2020, Letter dated 11/9/20, with attached additional information regarding the SolarNow program. 18 Order No. PSC-2020-0312-PAA-EI, issued in Docket No. 20200182-EI, on September 15, 2020, In re: Joint petition for declaratory statement regarding application of MFR requirements in Rule 25-6.043(1), F.A.C. or, in the alternative,petition for variance, by Florida Power&Light Company and Gulf Power Company. ?()