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ORDER NO. FSC-2021-0409-FOF-El <br />DOCKET NO. 20210127 -El <br />PAGE 9 <br />Energy Center was approved by the Commission in Order No. PSC-2018-0150-FOF-El issued <br />on March 19, 2018. The estimated construction cost for the Dania Beach Clean Energy Center is <br />$888 million, including AFUDC and transmission interconnection costs. As of June 30, 2021, <br />development, design and construction costs, including AFUDC and transmission interconnection <br />costs, expended on the Dania Beach Clean Energy Center were approximately $732 million. A <br />more detailed description of this project is provided in the FPL and Gulf 2021-2030 Ten -Year <br />Site Plan on file with the Commission. <br />Under future market conditions, the interest rate on new issue long-term debt or the <br />dividend rate on new issue preferred or preference stock of FPL and its subsidiaries may be such <br />that it becomes economically attractive to acquire (by redemption, purchase, exchange or <br />otherwise), or otherwise satisfy, discharge or defease, a portion or all of certain of its or its <br />subsidiaries long-term debt securities or equity securities, providing an opportunity for FPL to <br />reduce interest or dividend expense even after accounting for such other considerations as the (i) <br />redemption or other reacquisition premium, (ii) other associated reacquisition or discharge <br />expenses and (iii) related income tax effects. This reduction would be beneficial to FPL's <br />customers and, with proper regulatory treatment, would not be detrimental to FPL's common <br />shareholder. Other important considerations in making such a decision would include an <br />assessment of anticipated future interest and dividend rates and FPL's ability to raise enough new <br />capital to finance its construction program while concurrently pursuing any refinancing <br />opportunities. FPL might also consider acquiring or otherwise satisfying, discharging or <br />defeasing a portion or all of certain of its or its subsidiaries long-term debt securities or equity <br />securities for reasons other than interest or dividend expense reduction. <br />Under future market conditions, it may be economical to enter into forward refunding or <br />forward swap contracts. The forward refunding contracts would be for the purpose of refunding <br />long -tern debt (including but not limited to refunding Revenue Bonds) which may be issued on <br />FPL's behalf and which can be callable. Under federal tax law, the refunding of Revenue Bonds <br />with tax-exempt bonds issued more than 90 days prior to the redemption or retirement of the <br />outstanding issue is heavily restricted. However, through a forward refunding contract, FPL <br />could lock -in prevailing tax-exempt fixed rates for refunding Revenue Bonds which would be <br />issued 90 days prior to a call date of the outstanding issue. Alternatively, FPL could enter into a <br />forward swap contract, to become effective on a call date of the outstanding issue, to lock -in <br />prevailing tax-exempt fixed rates. Any anticipated savings generated by such forward <br />transactions would be spread over the combined life of the outstanding bonds and the refunding <br />bonds starting with the execution of the forward contract. <br />FPL confirmed that the capital raised pursuant to the Applicants' application will be used <br />in connection with the regulated activities of FPL and FPL's subsidiaries, including FCG, as <br />described in the Applicants' application, and not the nonregulated activities of its affiliates. <br />B. Operations of Gulf as a Separate Ratemaking Entity <br />2& 40 <br />