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ORDER NO. PSC -2022 -0203 -PAA -EQ <br />DOCKET NO. 20220072 -EQ <br />PAGE 37 <br />FLORMA PONVER & UGHT COMPANY <br />(Continued from Sheet No. 10.309) <br />CALCULATION OFFIXED VALUE OF DEFERRAL PAYMENTS- EARLY CAPACITY -OPTION B <br />Attachment A <br />Original Sheet No. 10.309 <br />Normally, payinents for firm capacity shall not cornineme inail the in-service date of the Company's Avoided Unit(s). At the option of the hov —, I <br />the Company may begin truildrig payments fir early capacity consisting of the c*tal cost component of the value of a ywr-by-p deferral o7 the <br />Conilmny's Avoided Unit starting as early as the iii -service date of the QS facility. Nklien such payments for early, capacity are elected, the avoided capital <br />cost component of capacity payments shall be paid monthly commencing no earlier than the CapacityDelivery Date ofthe QS, and shall be calculated as <br />ILS <br />M-1) � '- 1) <br />Am — Ac . A, J�10 for M tot <br />12 12 <br />Whom: <br />A. - <br />Monthly po,"ents to be rnaile to the QS for each Month 6fthe contract yearn, <br />in ddhw pa kilowatt per month in which QS daliveri; capacity pusuarit to <br />the early capecifyoption; <br />i, = <br />annual escalation rate wociaW with the plait cA,,*t ofthe Comrviy',z <br />Avoided Lhaox <br />= <br />anatial escalation rate associated with the operation and maintenance exIieme <br />ofithe Company's Avoided I 44t(sX <br />- <br />year for which the Exed value of deferral twmeras, under the early ca pacity <br />opfion are made to a QS, Flirting in year one and imiling is the year t; <br />t <br />the term, in years, of the Standard OfferContrwt <br />A <br />F1 (I - R)1(1- W) I <br />VIUMV <br />F = the cuninlati ve present value, if) die year that the 0ontractuat payments 'Rill beg* 017016 avoidw <br />cqital cost component of capacity puynicaw which would have been made bad ciiiiacity <br />payments coin meaced with the anticipated, in-serviev date of the Cornimny's Avoided WKsl <br />R (1 +4)1(1 +r) <br />V munW, discount rate, defined as the Company's incremental after-tax cm of capital; and <br />G I (I - fty(l - W) I <br />Where: <br />G The cumulative present value, in the you tint..the contractual payments wilt begin, of the avoided <br />feed operation and aa0ntaiaa9e expertsa component of QVuiiy Muents, which would have becti <br />me& had capacity lia),mante commenced iNith the anticipated in-service date of time Qvilianys <br />Avoided Vnit(s), <br />R (I +L)1(1 +r) <br />'Me airreatly approved paraineters applicable to the lonmdo above are found in Appcn&ll. <br />(Contirawd on SluxtNo. 10310) <br />Issued by: S. L Romig, Director,Rotes and Tariffs <br />Effective: May 22,2007 <br />1-31 <br />