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FILED JUL 25, 2014 DOCUMENT NO. 04000-14 FPSC - COMMISSION CLERK John T. Butler Assistant General Counsel – Regulatory Florida Power & Light Company 700 Universe Boulevard Juno Beach, FL 33408-0420 (561) 304-5639 (561) 691-7135 (Facsimile) John.Butler@fpl.com July 25, 2014 -VIA ELECTRONIC FILING Ms. Carlotta S. Stauffer Commission Clerk Florida Public Service Commission 2540 Shumard Oak Blvd. Tallahassee, FL 32399-0850 Re: Docket No. 140007-EI Dear Ms. Stauffer: I enclose for electronic fili
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    Florida Power & Light Company 700 Universe Boulevard, Juno Beach, FL 33408 John T. Butler Assistant General Counsel – Regulatory Florida Power & Light Company 700 Universe Boulevard Juno Beach, FL 33408-0420 (561) 304-5639 (561) 691-7135 (Facsimile) John.Butler@fpl.com  July 25, 2014 -VIA ELECTRONIC FILING - Ms. Carlotta S. Stauffer Commission Clerk Florida Public Service Commission 2540 Shumard Oak Blvd. Tallahassee, FL 32399-0850 Re: Docket No. 140007-EI Dear Ms. Stauffer: I enclose for electronic filing in the above docket (i) Florida Power & Light Company’s (“FPL”) Petition for Approval of Environmental Cost Recovery Actual/Estimated True-Up for the Period January 2014 through December 2014, Approval of the Waters of the United States Rulemaking Project and (ii) the prepared testimony and exhibit of FPL witnesses Terry J. Keith and Randall R. LaBauve. If there are any questions regarding this transmittal, please contact me at (561) 304-5639. Sincerely,  s/ John T. Butler John T. Butler Enclosures cc: Counsel for Parties of Record (w/encl.)    BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION Environmental Cost Recovery Clause Docket No: 140007-EI Filed: July 25, 2014 PETITION FOR APPROVAL OF ENVIRONMENTAL COST RECOVERY ACTUAL/ESTIMATED TRUE-UP FOR THE PERIOD JANUARY 2014 THROUGH DECEMBER 2014 AND FOR APPROVAL OF THE WATERS OF THE UNITED STATES RULEMAKING PROJECT Florida Power & Light Company (“FPL”) hereby petitions this Commission for approval of its actual/estimated Environmental Cost Recovery (“ECR”) true-up over-recovery amount of $1,109,221, including interest, for the period January 2014 through December 2014 and for approval of the Waters of the United States (“WOUS”) Rulemaking Project. In support of this Petition, FPL incorporates the prepared written testimony and exhibit of FPL witness Terry J. Keith and testimony of FPL witness Randall R. LaBauve. 1. Section 366.8255 of the Florida Statutes, which became effective on April 13, 1993, authorizes the Commission to review and approve the recovery of prudently incurred Environmental Compliance Costs. 2. Pursuant to Order No. PSC-14-0087-PCO-EI, dated February 4, 2014, FPL hereby files its current-year estimated true-up data. 3. The calculation of the ECR Actual/Estimated True-up amount for the period January 2014 through December 2014 is contained in Commission Schedules 42-1E through 42-9E, which are attached as Appendix I to Mr. Keith’s testimony. 4. FPL’s ECR Actual/Estimated True-up over-recovery for the period January 2014 through December 2014, including interest, is $1,109,221, as set forth in the testimony and exhibits of FPL witness Terry J. Keith. FPL has included actual costs for the period January  -2- 2014 through June 2014 and revised estimates for the period July 2014 through December 2014. 5. Mr. LaBauve’s prepared testimony supports a new environmental compliance activity for recovery through the ECR clause; the WOUS Rulemaking Project. Mr. LaBauve’s testimony includes a description of the project, an identification of the environmental laws or regulations requiring FPL to undertake the project, the forecasted costs associated with the  project, and a description of the steps FPL is taking to ensure that the environmental compliance costs to be incurred by FPL pursuant to the project are prudent and appropriate for recovery through the ECR. This information demonstrates that the WOUS Rulemaking Project meets the requirements for recovery set forth in Section 366.8255 of the Florida Statutes and that the forecasted environmental compliance costs associated with the project are reasonable. 6. On April 21, 2014 The U.S. Environmental Protection Agency (“EPA”) and the U.S. Army Corps of Engineers published a proposed rule in the federal register defining the scope of waters protected under the Clean Water Act (“CWA”). The purpose of the rulemaking is to clarify the characteristics of streams, wetlands and other waters to which all CWA programs will apply. 7. The rulemaking proposes changes to the definition of WOUS that would result in an increased number of new jurisdictional wetland and water body determinations impacting existing facilities and future electric utility projects. FPL contends that the proposed rule revisions are overreaching and in conflict with Supreme Court decisions regarding WOUS. These proposed changes could result in CWA requirements applying to existing and future  power plant, transmission, distribution, pipeline and renewable generation related projects that would not be subject to those requirements under the current WOUS definition and would require FPL to incur substantially higher permitting and operational costs associated with those  -3-  projects. Further, the proposed rule revisions could result in a requirement to install cumbersome and very expensive compliance technologies on the cooling ponds or cooling canal systems at four FPL power plants. 8. FPL intends to actively participate in the rulemaking process, advocating that the rule proposal is both unnecessary to protect legitimate environmental interests and needlessly  burdensome to licensees such as FPL. Consistent with this Commission’s Order No. PSC-05-1251-FOF-EI, FPL proposes to request recovery of costs associated with retaining the services of qualified consultants and/or legal counsel to assist in developing comments and presenting FPL’s positions on the proposed rule to state and federal government agencies and legislators. Additionally, consultants will assist FPL in the identification of specific issues associated with proposed rule requirements and develop specific recommendations to facilitate more cost-effective compliance for each FPL facility that is impacted by the proposed rule as well as continue to work with state and federal government agencies and legislators to advocate FPL’s positions following the comment period, as the rule moves to finalization and, as necessary, thereafter. 9. The initial O&M estimate for funding advocacy activities is $228,500, to be incurred from August 2014 through December 2015. Because formal rulemaking was announced in November of 2013 and the proposed rule was published in April 2014, FPL began incurring advocacy costs related to the rulemaking in late 2013. However, FPL is now significantly “ramping up” its advocacy activities in response to the proposed rule and is seeking recovery only for advocacy activities conducted after the date of this petition.
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