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ORDER NO. PSC-2021-0409-FOF-EI DOCKET NO. 20210127 -El PAGE 7 issuances described above will be used in connection with the regulated activities of FPL or FCG, and not the nonregulated activities of its affiliates. On March 12, 2021, FPL filed its 2021 Rate Case requesting, among other things, authority to consolidate and unify the rates and tariffs applicable to all customers in the former FPL and Gulf service areas. if the Commission approves FPL's request, all Gulf customers will become FPL customers, and Gulf will no longer exist as a separate ratemaking entity effective January 1, 2022. In the event that the Commission declines to approve or postpones FPL's pending request for unified rates in Docket No. 20210015 -EI and Gulf remains a standalone ratemaking entity, the regulated operations of Gulf as a separate ratemaking entity will be financed through short-term and long-term borrowings from FPL. These short-term and long- term borrowings by Gulf, which are only relevant in the event the Commission declines or postpones rate unification in Docket No. 20210015-E1, would not count against the authority requested by FPL in the Applicants' application . The interest rate on any short-term or long- term borrowings in respect of the operations of Gulf as a separate ratemaking entity is expected to be a pass-through of FPL's average weighted cost for borrowing these funds and will vary depending on the terms of the debt and whether the debt is secured or unsecured and subordinated or unsubordinated, as well as market conditions. In addition, FCG seeks authority to finance its working capital and capital expenditure requirements through short-term and long-term borrowings from FPL. The timing of any borrowings made by FCG from FPL will depend on FCG's cash flow projections and other factors impacting FCG's cash and working capital requirements. The amount of short-term borrowings by FCG from FPL during calendar years 2022 and 2023 will be an aggregate principal amount not to exceed $150 million at any one time. In addition, the amount of long- term borrowings by FCG from FPL during calendar year 2022 will be an aggregate principal amount not to exceed $300 million. The interest rate on any short-term or long-term borrowings from FPL is expected to be a pass-fhrough of FPL's average weighted cost for borrowing these funds and will vary depending on the term of the debt and whether the debt is secured or unsecured and subordinated or unsubordinated, as well as market conditions. Any borrowings made by FCG from FPL will be unsecured and may be subordinated or unsubordinated. Short- term borrowings from FPL will have maturities not to exceed one year. Long-term borrowings from FPL will have maturities ranging from more than one year to one hundred years. FPL and FCG will file a consummation report with the Florida Public Service Commission (the Commission) in compliance with Rule 25-8.009, Florida Administrative Code, within 90 days after the end of any fiscal year in which FPL and/or FCG issue securities. II. Purposes of Issues A. FPL It is expected that the net proceeds to be received from the issuance and sale and/or exchange (if there are any net proceeds from an exchange) of the additional long-term debt and