|
ORDER NO. PSC-2022-0358-FOF-EI
<br />DOCKET NO. 20210015 -EI
<br />PAGE 3
<br />issues a final order in a future proceeding changing the Company's rates and its
<br />authorized ROE. Base rates shall not be increased upon implementation of the
<br />trigger mechanism. The Trigger shall be calculated by summing the reported 30 -
<br />year U.S. Treasury bond rates for each day over any continuous six-month period,
<br />e.g., January 1, 2022 through July 1, 2022, or March 17, 2022 through September
<br />17, 2022, for which rates are reported, and dividing the resulting sum by the
<br />number of reporting days in such period. The effective date of the Revised
<br />Authorized ROE ("Trigger Effective Date") shall be the first day of the month
<br />following the day in which the Trigger is reached. No later than five business
<br />days after the Commission votes to approve this 2021 Agreement, FPL shall
<br />notify the Parties of the 30 -year United States Treasury Bond yield rate as of the
<br />date this Agreement is filed with the Commission by filing in this docket proof of
<br />the rate with the Commission Clerk and serving the Parties.
<br />(c) If the Trigger is reached and the Revised Authorized ROE becomes
<br />effective, except as otherwise specifically provided in this Agreement, FPL's
<br />Revised Authorized ROE range and mid -point shall be used prospectively for all
<br />regulatory purposes, including all rates and applications pursuant to this
<br />Agreement, until the Commission issues a final order in a future general base rate
<br />proceeding changing the Company's rates and its authorized ROE.
<br />On October 27, 2021, FPL filed notice that the 30 -year United States Treasury Bond
<br />yield rate on August 10, 2021, the date of the 2021 Settlement Agreement, was 1.99 percent.2
<br />On August 31, 2022, FPL provided its calculation of the date on which the average 30 -year U.S.
<br />Treasury Bond yield rate for a period of six (6) consecutive months was at least 50 basis points
<br />greater than the yield rate on August 10, 2021.3
<br />Order No. PSC -2022 -0327 -PCO -EI, issued September 14, 2022, set this docket for
<br />administrative hearing on October 4, 2022. The Office of Public Counsel (OPC), Florida
<br />Industrial Power Users Group (FIPUG), Florida Retail Federation (FRF), and Southern Alliance
<br />for Clean Energy (SACE) are signatories to the 2021 Settlement Agreement. CLEO, the Federal
<br />Executive Agencies, Florida Internet & Television Association, Inc., FIPUG, and Walmart, Inc.
<br />have requested to be excused from the hearing and have represented that they take no position on
<br />FPL's request.
<br />At the October 4, 2022, administrative hearing, opening statements were waived by FPL,
<br />OPC, FRF, SACE, FAIR, and LULAC/ECOSWF/Florida Rising. The Larsons gave a brief
<br />opening statement. FPL proffered witness Scott Bores, Senior Director of Financial Planning &
<br />Analysis, to answer questions regarding FPL's request and its ROE trigger calculations. Exhibit
<br />Nos. 1-5 were admitted into the record without objection.
<br />We have jurisdiction over this matter pursuant to Sections 366.03, 366.04, 366.05, and
<br />366.06, Florida Statutes (F.S.).
<br />'Document No. 12427-2021.
<br />3 Document No. 05885-2022.
<br />
|