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Indian River County, Florida * * MEMORANDUM File ID: 25-0687 Indian Rive/Cgnty Administration Complex 1801 27th Street Vero Beach, Florida 32960 indianriver.gov Type: Informational Report Meeting Date: 7/1/2025 TO: The Honorable Board of County Commissioners THROUGH: Clerk to the Board FROM: Jacqueline Rizzo - Deputy Clerk DATE: June 19, 2025 SUBJECT: Final Order Approving Stipulation and Settlement Agreement BACKGROUND On November 8, 2024, Florida Power & Light Company (FPL or the Company) filed a petition for approval of the accounting treatment for the Company's transfer of its fifty percent proportional share of Plant Daniel Units 1 & 2 to Mississippi Power Company (MPC). By Order No. PSC -2025 -0139 -PAA -EI (PAA Order) issued April 21, 2025, Florida Public Service Commission (FPSC) approved the petition and the accounting treatment proposed by FPL, subject to any timely filed request for hearing. In that PAA Order, we approved the creation of regulatory assets totaling $36.02 million, and apportioned this total between base rates ($31.04 million) and environmental costs ($4.98 million). FPSC also approved a recovery period of 10 years beginning at the next base rate reset, and a return on the unamortized asset balance at the Company's overall weighted average cost of capital. On May 12, 2025, the Office of Public Counsel (OPC) filed a Petition Protesting Proposed Agency Action. OPC specifically protested only the one following issue in the PAA Order: The price to be paid by FPL to Mississippi Power Company ("MPC"), and associated necessary accounting treatment, pursuant to the transaction that supports the transfer that is the subject of the Petition, in order for MPC to take ownership of FPL's share of Plant Daniel Units 1 & 2 and to relieve FPL of most Common Facilities costs related to the units. On the following day, May 13, 2025, FPL and OPC filed a Joint Motion for Approval of Stipulation and Settlement Agreement. A copy of the Joint Motion and attached Stipulation and Settlement Agreement is appended to this Order as Attachment A. The parties stipulate in the Agreement that the regulatory assets established as the appropriate accounting treatment of the transfer price shall total $36 million. The allocation of this amount shall be $31,022 million for base rates and $4,978 million for environmental costs, with a ten-year amortization period Indian River County, Florida Page 1 of 2 Printed on 6/26/2025 powered by L.egistarTM 38