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
commencing January 1, 2026. FPL and OPC represent in the Agreement that the remaining
provisions of Order No. PSC-2025-0139-PAA-EI were not protested, and should remain
unchanged and final.
Pursuant to notice, the FPSC conducted a hearing on the Joint Motion on June 3, 2025. At that
hearing, the parties affirmed and explained the representations in the Joint Motion, and FPSC staff
presented an oral recommendation for approval of the Stipulation and Settlement Agreement.
FPSC have jurisdiction pursuant to Sections 366.04, 366.06, and 366.07, Florida Statutes
(F.S.).
A copy is available for review in the Office of the Clerk to the Board.
STAFF RECOMMENDATION
Recommended Action
Informational Only