(1) This rule defines the “”fair value”” of energy generated while testing an electric generating unit under construction and before the unit is declared commercial, in conformity with the Uniform System of Accounts as adopted by the Commission.
    (2) The Uniform System of Accounts for electric utilities requires that:
    (a) Earnings and expenses during construction constitute a component of construction costs;
    (b) Earnings include revenues received or earned for power produced by generating plants during the construction period which is sold or used by the utility; and
    (c) Where power generated by a plant under construction is delivered to the utility’s electric system for distribution and sale, or is delivered to an associated company, or is delivered to and used by the utility for purposes other than distribution or sale, the utility’s construction work order shall be credited with the “”fair value”” of the energy so delivered.
    (3) The “”fair value”” of energy for this purpose shall be the lower of either:
    (a) The actual cost of fuel and related fuel expenses during the testing period; or
    (b) The actual cost of fuel and related fuel expenses during the testing period with appropriate adjustments to reflect normal operating efficiency. The adjusted cost of fuel shall be equal to the quantity of fuel that would have been consumed to produce the same net megawatt hours under normal operating conditions, multiplied by the utility’s current monthly chargeout price for fuel.
    (4) The amount of the fair value credit to the construction work order shall be concurrently charged to the appropriate fuel and other operation and maintenance expense accounts.
Rulemaking Authority Florida Statutes § 350.127(2), 366.05(1) FS. Law Implemented 366.04(2) FS. History-New 10-6-94.