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r i�tu or't 4/�ut'i <br />DOCUMENT NO. 04077-2021 <br />:FPSC -COMMISSION CLERK <br />76 <br />BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION <br />In re: Petition for rate increase by Florida DOCKET NO. 20210015 -El <br />Power & Light Company. ORDER NO. PSC -2021 -0169 -PCO -EI <br />„ ISSUED: May 14, 2021 <br />The following Commissioners participated in the disposition of this matter: <br />GARY F. CLARK, Chairman <br />ART GRAHAM <br />ANDREW GILES FAY <br />MIKE LA ROSA <br />ORDER SUSPENDING RATES <br />BY THE COMMISSION: <br />This proceeding commenced on March 12, 2021, with the filing of a petition for a <br />permanent rate increase by Florida Power & Light Company (FPL or Company). The Company <br />is engaged in business as a public utility providing electric service as defined in Section 366.02, <br />Florida Statutes (F.S.), and is subject to the jurisdiction of the Commission. FPL provides <br />electric service to more than 5.6 million retail customers in much of the state. <br />FPL has requested an increase in its retail rates and charges to generate $1.108 billion in <br />additional gross annual revenue, effective January 1, 2022. The Company also has requested an <br />increase in its retail rates and charges to generate $607 million in additional gross annual <br />revenue, effective January 1, 2023. FPL asserts that the combined increases will allow the <br />Company to earn a return on equity (ROE) of 11.50 percent which includes a 50 basis point ROE <br />performance incentive. The Company based its requests on projected test years ending <br />December 31, 2022 and December 31, 2023. FPL stated that these test years are the appropriate <br />periods to be utilized because they best represent expected future operations in the period <br />immediately after any new base rates go.into effect. FPL has also requested Solar Base Rate <br />Adjustments (SoBRAs) of approximately $140 million for both 2.024 and 2025. In total, the <br />Company is requesting a $1.995 billion base rate increase. The current proposal also includes a <br />5 -year transition rider assessed to former Gulf Power Company customers (Northwest Florida) <br />and credited to legacy. FPL customers (Peninsula Florida). The rider is separate and apart from <br />Gulf's recovery of storm restoration costs resulting from Hurricanes Michael and Sally,.which <br />will continue under a separate surcharge. FPL did not request any interim rate relief. <br />In. FPL's most recent base rate proceeding in Docket No. 20160021 -EI, we approved a <br />settlement agreement which authorized a revenue increase of $400 million effective January 1, <br />2017, and a revenue increase of $211 million effective January 1, 2018.' In addition, the <br />Order No. PSC -2016 -0560 -AS -EI, issued December 15, 2016, in Docket No. 20160021 -El, Lt re: Petition for- rate <br />increase by Florida Prnver d light C:ompan , Docket No. 20160061-E1, In re: Petition for approval of 2016-2018 <br />