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ORDER NO. PSC -2021 -0421 -PAA -EG DOCKET NO. 20210132 -EG PAGE 7 initially required for participation in the program), Gulf adopted newer technology platforms, but each new device or technology platform change required extensive development and integration work to seamlessly incorporate the applicable 4 -tiered Residential Service Variable Pricing (RSVP) rate that is associated with the program. The ongoing viability of the program is also impacted by lack of availability of the required programmable communicating thermostats used in the program. FPL states that the manufacturer of the programmable thermostat used for the Energy Select program has ceased production of that unit, which limits the availability for offering new installations to the existing inventory on hand .5 The Company's most recent Demand -Side Management Annual Reports (DSM Report) support the statement that customer interest has been declining. FPL's 2020 and 2019 DSM Reports indicate only 648 actual participants enrolled in this program in 2020, down from 836 in 2019. In 2017, the Energy Select program had more than 1,400 participants. In its petition FPL asserts that an internal study indicated that many customers no longer actively manage their energy use in accordance with the variable pricing tiers which are featured in this program. The study indicated that around 24 percent of Energy Select customers would actually save money by switching to standardized residential rates, assuming energy usage remained the same. In addition, the high capital costs associated with the in-home devices, installation, and licensing, coupled with ongoing maintenance have impacted the cost-effectiveness of Energy Select to the degree that it is no longer cost effective for the general body of customers at today's system costs. We agree with FPL and find that these factors support the Company's proposal to terminate the Energy Select Program and that doing so is appropriate. Regulatory Asset FPL stated that the approximately $22.7 million unrecovered balance of capital assets associated with the Energy Select program will be retired on December 31, 2021.6 The equipment consists of programmable communicating thermostats, water heater and pool pump load control relays, in-home communications equipment, and licensing. The Company proposed to establish a regulatory asset in FERC account 182.2, Unrecovered Plant and Regulatory Study Costs, with recovery of that balance to take place through the ECCR clause. FPL contended that recovery of the proposed regulatory asset through the ECCR clause is appropriate because that is where Gulf is currently recovering capital costs associated with the Energy Select program. FPL proposed to amortize the regulatory asset over the remaining life of the Energy Select program assets (approximately 12 years) on a straight-line basis beginning January 1, 2022, with a return on the unamortized, unrecovered balance at the Company's overall weighted average cost of capital that is used for clause investments. The proposed Energy Select program regulatory asset in the amount of $22.7 million would be recovered from FPL's current and future ratepayers who receive service from FPL during the next 12 years. FPL also stated that the majority of the unrecovered balance ($22.3 million of $22.7 million) was recorded in plant account 370 — Meters and Meter Accessories. 'Petition, Paragraph 19. 'Petition, Paragraph 22.