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ORDER NO. PSC-2022-0358-FOF-EI DOCKET NO. 20210015 -El PAGE 4 DECISION ROE Trigger On October 27, 2021, FPL filed a notice advising that the 30 -year U.S. Treasury Bond yield rate as of August 10, 2021 was 1.99 percent a We have reviewed the rates published by the U.S. Department of Treasury and confirmed that the 30 -year U.S. Treasury Bond yield rate on August 10, 2021 was 1.99 percent. On August 31, 2022, FPL filed Exhibit No. 4, the daily Treasury par yield curve rates released by the U.S. Department of Treasury for the period February 23, 2022 through August 22, 2022.5 We have reviewed the rates published by the U.S. Department of Treasury and confirmed that, by operation of math, the average 30 -year U.S. Treasury Bond yield rate for this six-month period is 2.91 percent. We have also reviewed the 30 -year U.S. Treasury yield rates published by the U.S. Treasury Department and confirmed that the ROE Trigger provisions of the 2021 Settlement Agreement have been met. Per Section 3(b) of the 2021 Settlement Agreement, if at any time during the term of the agreement the average 30 -year U.S. Treasury Bond yield rate for any period of six consecutive months is at least 50 basis points greater than the yield date on the date the agreement was filed with us (ROE Trigger), FPL's authorized return on equity (ROE) shall, after an elective filing by FPL, be increased by 20 basis points to be within a range of 9.8 percent to 11.8 percent with a midpoint of 10.8 percent.b The average 30 -year U.S. Treasury Bond yield rate for the period February 22, 2022 through August 19, 2022 of 2.91 percent is more than 50 basis points greater than the 30 -year U.S. Treasury Bond yield rate of 1.99 percent on August 10, 2021, the date the 2021 Settlement Agreement was filed with us. Thus, we have confirmed that the ROE Trigger provisions of the 2021 Settlement Agreement have been met. Return on equity Per Section 3(b) of the 2021 Settlement Agreement, if the ROE Trigger is reached, FPL's authorized ROE shall, after an elective filing by FPL, be increased by 20 basis points to be within a range of 9.8 percent to 11.8 percent with a midpoint of 10.8 percent. Section 3(b) also specifies that the effective date of the revised authorized ROE midpoint and range shall be the first day of the month following the day in which the ROE Trigger is reached. Because the ROE Trigger was reached on August 22, 2022, the effective date of the revised authorized ROE midpoint and range is September 1, 2022. Application of revised ROE Per Section 3(c) of the 2021 Settlement Agreement, the revised authorized ROE midpoint and range will be used prospectively for all regulatory purposes. However, in the Notice FPL filed on August 23, 2022, the Company stated that it would not reflect the revised authorized ROE in any of the clause recovery factors to be implemented January 2023. Instead, FPL intends to reflect the revised authorized ROE in the clause recovery true -ups that will be filed in 'Document No. 12427-2021. s Document No. 05885-2022. 6 Order No. PSC -2021 -0446 -S -EI, p.p. 26-27. 1��