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ORDER NO. PSC -2023 -0110 -PCO -EI <br />DOCKET NO. 20230017 -El <br />PAGE 5 <br />known. After the actual costs are reviewed for prudence and reasonableness, and are compared to <br />the actual amount recovered through the interim storm restoration recovery charge, a <br />determination will be made whether any over/under recovery has occurred. The disposition of <br />any over/under recovery, and associated interest, will be considered by us at a later date. <br />Based on a review of the information provided by FPL in its petition, we authorize the <br />Company to implement an interim storm restoration recovery charge subject to refund. Once the <br />total actual storm costs are known, FPL shall file documentation of the storm costs for our <br />review and true -up of any excess or shortfall. <br />FPL has requested that all funds collected subject to refund be secured by a corporate <br />undertaking. The criteria for a corporate undertaking include sufficient liquidity, ownership <br />equity, profitability, and interest coverage to guarantee any potential refund. FPL requested a 12 - <br />month collection period from April 2023 through March 2024 for Interim Storm Cost Recovery <br />Charges of $1.5 billion related to Hurricanes Michael, Sally, Zeta, Ian and Nicole. We reviewed <br />FPL's three most recent annual reports filed with us (2021, 2020, and 2019) to determine if the <br />Company can support a corporate undertaking to guarantee the funds collected for recovery of <br />incremental storm restoration costs related to the weather events. FPL's financial information <br />demonstrates the Company has acceptable levels of liquidity, ownership equity, profitability, and <br />interest coverage to support a potential refund of $1.5 billion. Moreover, it is improbable FPL <br />will be required to refund the entire requested amount. <br />We find that FPL has adequate resources to support a corporate undertaking in the <br />amount requested. Based on our analysis, a corporate undertaking of $1.5 billion is acceptable. <br />This brief financial analysis is only appropriate for deciding if the Company can support a <br />corporate undertaking in the amount proposed and was not considered in our evaluation of other <br />issues in this proceeding. <br />Based on the foregoing, it is <br />ORDERED by the Florida Public Service Commission that Florida Power & Light <br />Company's petition for recovery of incremental storm restoration costs related to Hurricanes Ian <br />and Nicole is approved. It is further <br />ORDERED that FPL's proposed interim storm restoration recovery charge for Hurricanes <br />Ian and Nicole is denied. It is further <br />ORDERED that FPL's proposed consolidated interim storm restoration charge for <br />Hurricanes Ian, Nicole, Michael, Sally, and Zeta as shown on tariff sheet no. 8.030.7, appended <br />to this Order as Attachment A, is approved, subject to refund, effective with the first billing cycle <br />of April 2023. It is further <br />ORDERED that FPL's tariff sheet Nos. 8.030.4, 8.030.5, and 8.030.6 shall be cancelled <br />effective with the first billing cycle of April 2023. It is further <br />