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ORDER NO. PSC -2024 -0503 -PCO -EI DOCKET NO. 20240149 -EI PAGE 2 The petition was filed pursuant to the provisions of the 2021 Settlement approved by us in Order Nos. PSC -2021 -0446 -S -EI and PSC -2021 -0446A -S -EI. Pursuant to paragraph 10 of the 2021 Settlement, FPL can begin recovery of storm costs 60 days following the filing of a petition for recovery. In its petition, FPL stated that it had incurred approximate recoverable costs in the amount of $113.5 million for Hurricane Debby, $157.8 million for Hurricane Helene, and $811.1 million for Hurricane Milton. The Company further stated that all amounts were calculated in accordance with the Incremental Cost and Capitalization Approach methodology prescribed in Rule 25-6.0143, Florida Administrative Code. The approval of an interim storm restoration recovery charge is preliminary in nature and is subject to refund pending further review once the total actual storm restoration costs are known. After the actual costs are reviewed for prudence and reasonableness, and are compared to the actual amount recovered through the interim storm restoration recovery charge, a determination will be made whether any over/under recovery has occurred. The disposition of any over or under recovery, and associated interest, will be considered by us at a later date. Based on a review of the information provided by FPL in its petition, we hereby authorize the Company to implement an interim storm restoration recovery charge subject to refund. Once the total actual storm costs are known, FPL shall be required to file documentation of the storm costs for our review and true -up of any excess or shortfall. Corporate undertaking We find that all funds collected shall be subject to refund shall be secured by a corporate undertaking. The criteria for a corporate undertaking include sufficient liquidity, ownership equity, profitability, and interest coverage to guarantee any potential refund. FPL requested a 12 - month collection period from January 2025 through December 2025 for the Interim Storm Recovery charges of approximately $1.2 billion related to the Storms. We reviewed FPL's three most recent annual reports filed with this Commission (2023, 2022, and 202 1) to determine if the Company can support a corporate undertaking to guarantee the funds collected for recovery of incremental storm restoration costs related to all the weather events. FPL's financial information demonstrates the Company has acceptable levels of liquidity, ownership equity, profitability, and interest coverage to support a potential refund of $1.2 billion. Moreover, it is improbable FPL will be required to refund the entire requested amount. FPL has adequate resources to support a corporate undertaking in the amount requested. Based on our analysis, we find that a corporate undertaking of $1.2 billion is acceptable. This brief financial analysis is only appropriate for deciding if the Company can support a corporate undertaking in the amount proposed and should not be considered a finding regarding our position on other issues in this proceeding. Interim storm restoration recovery charge FPL calculated the interim storm surcharge for the 12 -month period of January 1, 2025 through December 31, 2025, subject to true -up once the final total recoverable storm amount is known and determined. FPL states that the updated surcharges are allocated to the rate classes consistent with the rate design approved in the 2021 Settlement. We have reviewed the allocation to rate classes and find that the allocations provided in Appendix F to FPL's petition 3-Z