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ORDER NO. PSC -2021 -0421 -PAA -EG DOCKET NO. 20210132 -EG PAGE 8 FPL contended that roughly $18.5 million of the asset balance is related to installed equipment, and that such equipment will remain in place after the program is closed. FPL expected no salvage value related to the plant in service or inventory when the Energy Select Program is terminated. We agree that the creation of a regulatory asset in the amount of $22.7 million is appropriate and is approved. FPL proposed the amortization period of 12 years for the recovery of the regulatory asset because that time frame approximates the currently -authorized depreciation rate for FERC Account 370, which is 7.9 percent .7 The Company indicated that the 12 -year recovery period was the only interval that FPL considered. We note that a 12 -year recovery period through the ECCR clause factors adds about $1.9 million dollars per year in projected costs to the ECCR clause, or about $0.01 on the recovery factor for the bill of a residential customer using 1,000 kWh of electricity. We considered the proposed 12 -year recovery period in comparison to other actions we have taken in prior circumstances of Gulf's retiring minor assets. In 2010, we established a Capital Recovery Schedule over a 4 -year period for assets primarily recorded in plant Account 370 — Meters and Meter Accessories.' At page 3 in the order issued in that case, we stated "we hereby approve recovery periods tailored to the remaining period the related equipment is planned by the Company to be in service." In the referenced case, the assets being retired were AMI meters, which had a remaining life of 25 years. In the instant case, we find that our earlier decision to create a capital recovery schedule for accrual of the unrecovered book value in Account 370 over a 4 -year period supports a shorter recovery period than 12 years for the retiring Gulf's Energy Select assets. We also find that a 5 -year recovery through the ECCR would add about $4.5 million dollars per year in projected costs, and the recovery factor for this amount over a 5 -year time increment would add about $0.03 to the bill of a residential customer using 1,000 kWh of electricity. We find the incremental impact of $0.03 to a residential 1,000 kWh bill for a 5 -year recovery period versus a $0.01 amount for a 12 -year recovery period would impose a minimal impact on customers, address the regulatory asset balance in a relatively short period of time, and provide a better timing match of expenses incurred and benefits (service) received. We have concluded that a 5 -year recovery period for the $22.7 million regulatory asset is appropriate, rather than recovering the balance over a 12 -year period. Schedule C-3, Schedule of Capital Investment, Depreciation, Return and Property Taxes, as fled in Exhibit JNF-4 in Docket No. 20210002 -EG on August 6, 2021, reflects that Energy Select Property Additions are depreciated at 7.9 percent per year. 'Order No. PSC -10 -0458 -PAA -EI, issued July 19, 2010, in Docket No. 090319 -EI, In re: Depreciation and dismantlement studv at December 31, 2009, by Gulf Power Company.