Florida Regulations 25-6.031: Storm Protection Plan Cost Recovery Clause
Current as of: 2024 | Check for updates
|
Other versions
(1) Application and Scope. This rule applies to each utility as defined in Section 366.96(2)(a), F.S.
(2) After a utility has filed its Transmission and Distribution Storm Protection Plan (Storm Protection Plan), the utility may file a petition for recovery of associated costs through the Storm Protection Plan cost recovery clause. The utility’s petition shall be supported by testimony that provides details on the annual Storm Protection Plan implementation activities and associated costs, and how those activities and costs are consistent with its Storm Protection Plan. If the Commission approves the utility’s Storm Protection Plan with modifications, the utility shall, within 15 business days, file an amended cost recovery petition and supporting testimony reflecting the modifications.
(3) An annual hearing to address petitions for recovery of Storm Protection Plan costs will be limited to determining the reasonableness of projected Storm Protection Plan costs, the prudence of actual Storm Protection Plan costs incurred by the utility, and to establish Storm Protection Plan cost recovery factors consistent with the requirements of this rule.
(4) Storm Protection Plan cost recovery clause true-up amounts shall be afforded deferred accounting treatment at the 30-day commercial paper rate.
(5) Subaccounts. To ensure separation of costs subject to recovery through the clause, the utility filing for cost recovery shall maintain subaccounts for all items consistent with the Uniform System of Accounts prescribed by this Commission, pursuant to Fl. Admin. Code R. 25-6.014
(6) Recoverable costs.
(a) The utility’s petition for recovery of costs associated with its Storm Protection Plan may include costs incurred after the filing of the utility’s Storm Protection Plan.
(b) Storm Protection Plan costs recoverable through the clause shall not include costs recovered through the utility’s base rates or any other cost recovery mechanism.
(c) The utility may recover the annual depreciation expense on capitalized Storm Protection Plan expenditures using the utility’s most recent Commission-approved depreciation rates. The utility may recover a return on the undepreciated balance of the costs calculated at the utility’s weighted average cost of capital using the return on equity most recently approved by the Commission.
(7) Pursuant to the order establishing procedure in the annual cost recovery proceeding, a utility shall submit the following for Commission review and approval as part of its Storm Protection Plan cost recovery filings:
(a) Final True-Up for Previous Year. The final true-up of Storm Protection Plan cost recovery for a prior year shall include revenue requirements based on a comparison of actual costs for the prior year and previously filed costs and revenue requirements for such prior year for each program and project filed in the utility’s cost recovery petition. The final true-up shall also include identification of each of the utility’s Storm Protection Plan programs and projects for which costs were incurred during the prior year, including a description of the work actually performed during such prior year, for each program and project in the utility’s cost recovery petition.
(b) Estimated True-Up for Current Year. The actual/estimated true-up of Storm Protection Plan cost recovery shall include revenue requirements based on a comparison of current year actual/estimated costs and the previously-filed projected costs and revenue requirements for such current year for each program and project filed in the utility’s cost recovery petition. The actual/estimated true-up shall also include identification of each of the utility’s Storm Protection Plan programs and projects for which costs have been and will be incurred during the current year, including a description of the work projected to be performed during such current year, for each program and project in the utility’s cost recovery petition.
(c) Projected Costs for Subsequent Year. The projected Storm Protection Plan costs recovery shall include costs and revenue requirements for the subsequent year for each program filed in the utility’s cost recovery petition. The projection filing shall also include identification of each of the utility’s Storm Protection Plan programs for which costs will be incurred during the subsequent year, including a description of the work projected to be performed during such year, for each program in the utility’s cost recovery petition.
(d) True-Up of Variances. The utility shall report observed true-up variances including sales forecasting variances, changes in the utility’s prices of services and/or equipment, and changes in the scope of work relative to the estimates provided pursuant to paragraphs (7)(b) and (7)(c). The utility shall also provide explanations for variances regarding the implementation of the approved Storm Protection Plan.
(e) Proposed Storm Protection Plan Cost Recovery Factors. The utility shall provide the calculations of its proposed factors and effective 12-month billing period.
(8) Recovery of costs under this rule does not preclude a utility from proposing inclusion of unrecovered Storm Protection Plan implementation costs in base rates in a subsequent rate proceeding.
Rulemaking Authority 366.96 FS. Law Implemented Florida Statutes § 366.96. History-New 2-18-20.
Terms Used In Florida Regulations 25-6.031
- Testimony: Evidence presented orally by witnesses during trials or before grand juries.
(3) An annual hearing to address petitions for recovery of Storm Protection Plan costs will be limited to determining the reasonableness of projected Storm Protection Plan costs, the prudence of actual Storm Protection Plan costs incurred by the utility, and to establish Storm Protection Plan cost recovery factors consistent with the requirements of this rule.
(4) Storm Protection Plan cost recovery clause true-up amounts shall be afforded deferred accounting treatment at the 30-day commercial paper rate.
(5) Subaccounts. To ensure separation of costs subject to recovery through the clause, the utility filing for cost recovery shall maintain subaccounts for all items consistent with the Uniform System of Accounts prescribed by this Commission, pursuant to Fl. Admin. Code R. 25-6.014
(6) Recoverable costs.
(a) The utility’s petition for recovery of costs associated with its Storm Protection Plan may include costs incurred after the filing of the utility’s Storm Protection Plan.
(b) Storm Protection Plan costs recoverable through the clause shall not include costs recovered through the utility’s base rates or any other cost recovery mechanism.
(c) The utility may recover the annual depreciation expense on capitalized Storm Protection Plan expenditures using the utility’s most recent Commission-approved depreciation rates. The utility may recover a return on the undepreciated balance of the costs calculated at the utility’s weighted average cost of capital using the return on equity most recently approved by the Commission.
(7) Pursuant to the order establishing procedure in the annual cost recovery proceeding, a utility shall submit the following for Commission review and approval as part of its Storm Protection Plan cost recovery filings:
(a) Final True-Up for Previous Year. The final true-up of Storm Protection Plan cost recovery for a prior year shall include revenue requirements based on a comparison of actual costs for the prior year and previously filed costs and revenue requirements for such prior year for each program and project filed in the utility’s cost recovery petition. The final true-up shall also include identification of each of the utility’s Storm Protection Plan programs and projects for which costs were incurred during the prior year, including a description of the work actually performed during such prior year, for each program and project in the utility’s cost recovery petition.
(b) Estimated True-Up for Current Year. The actual/estimated true-up of Storm Protection Plan cost recovery shall include revenue requirements based on a comparison of current year actual/estimated costs and the previously-filed projected costs and revenue requirements for such current year for each program and project filed in the utility’s cost recovery petition. The actual/estimated true-up shall also include identification of each of the utility’s Storm Protection Plan programs and projects for which costs have been and will be incurred during the current year, including a description of the work projected to be performed during such current year, for each program and project in the utility’s cost recovery petition.
(c) Projected Costs for Subsequent Year. The projected Storm Protection Plan costs recovery shall include costs and revenue requirements for the subsequent year for each program filed in the utility’s cost recovery petition. The projection filing shall also include identification of each of the utility’s Storm Protection Plan programs for which costs will be incurred during the subsequent year, including a description of the work projected to be performed during such year, for each program in the utility’s cost recovery petition.
(d) True-Up of Variances. The utility shall report observed true-up variances including sales forecasting variances, changes in the utility’s prices of services and/or equipment, and changes in the scope of work relative to the estimates provided pursuant to paragraphs (7)(b) and (7)(c). The utility shall also provide explanations for variances regarding the implementation of the approved Storm Protection Plan.
(e) Proposed Storm Protection Plan Cost Recovery Factors. The utility shall provide the calculations of its proposed factors and effective 12-month billing period.
(8) Recovery of costs under this rule does not preclude a utility from proposing inclusion of unrecovered Storm Protection Plan implementation costs in base rates in a subsequent rate proceeding.
Rulemaking Authority 366.96 FS. Law Implemented Florida Statutes § 366.96. History-New 2-18-20.