000001 1 BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION 2 3 In the Matter of: DOCKET NO. 130009-EI 4 5 NUCLEAR COST RECOVERY CLAUSE. ______________________________/ 6 7 8 VOLUME 1 9 Pages 1 through 241 10 PROCEEDINGS: HEARING 11 COMMISSIONERS 12 PARTICIPATING: CHAIRMAN RONALD A. BRISÉ COMMISSIONER LISA POLAK EDGAR 13 COMMISSIONER ART GRAHAM COMMISSIONER EDUARDO E. BALBIS 14 COMMISSIONER JULIE I. BROWN 15 DATE: Monday, August 5, 2013 16 TIME: Commenced at 9:30 a.m. Concluded at 11:01 a.m. 17 PLACE: Betty Easley Conference Center 18 Room 148 4075 Esplanade Way 19 Tallahassee, Florida 20 REPORTED BY: LINDA BOLES, CRR, RPR Official FPSC Reporter 21 (850) 413-6734 22 23 24 25 FLORIDA PUBLIC SERVICE COMMISSION 000002 1 APPEARANCES: 2 BRYAN S. ANDERSON, KENNETH R. RUBIN, and 3 JESSICA A. CANO, ESQUIRES, Florida Power & Light 4 Company, 700 Universe Boulevard, Juno Beach, Florida 5 33408, appearing on behalf of Florida Power & Light 6 Company. 7 JOHN T. BURNETT, ESQUIRE, Duke Energy 8 Florida, Inc., Post Office Box 14042, Saint Petersburg, 9 Florida 33733; JAMES MICHAEL WALLS and BLAISE N. GAMBA, 10 ESQUIRES, Carlton Fields, P.A., Post Office Box 3239, 11 Tampa, Florida 33601-3239, appearing on behalf of 12 Duke Energy Florida, Inc. 13 ROBERT SCHEFFEL WRIGHT and JOHN T. LAVIA, 14 III, ESQUIRES, Gardner Bist Wiener Law Firm, 1300 15 Thomaswood Drive, Tallahassee, Florida 32308, appearing 16 on behalf of the Florida Retail Federation. 17 JAMES W. BREW and F. ALVIN TAYLOR, ESQUIRES, 18 PCS Phosphate - White Springs, c/o Brickfield Law Firm, 19 1025 Thomas Jefferson Street, NW, Eighth Floor, West 20 Tower, Washington, DC 20007, appearing on behalf of 21 PCS Phosphate - White Springs. 22 GEORGE CAVROS, ESQUIRE, Southern Alliance for 23 Clean Energy, 120 East Oakland Park Boulevard, Suite 24 105, Fort Lauderdale, Florida 33334, appearing on 25 behalf of Southern Alliance for Clean Energy. FLORIDA PUBLIC SERVICE COMMISSION 000003 1 APPEARANCES (Continued): 2 JON C. MOYLE, JR., ESQUIRE, c/o Moyle Law 3 Firm, 118 North Gadsden Street, Tallahassee, Florida 4 32301, appearing on behalf of Florida Industrial Power 5 Users Group. 6 J.R. KELLY, PUBLIC COUNSEL, CHARLES 7 REHWINKEL, JOSEPH McGLOTHLIN, and ERIK SAYLER, 8 ESQUIRES, Office of Public Counsel, c/o The Florida 9 Legislature, 111 West Madison Street, Room 812, 10 Tallahassee, Florida 32393-1400, appearing on behalf of 11 the Citizens of the State of Florida. 12 KEINO YOUNG and MICHAEL LAWSON, ESQUIRES, 13 FPSC General Counsel's Office, 2540 Shumard Oak 14 Boulevard, Tallahassee, Florida 32399-0850, appearing 15 on behalf of the Florida Public Service Commission 16 Staff. 17 CURT KISER, General Counsel, and MARY ANNE 18 HELTON, Deputy General Counsel, Florida Public Service 19 Commission, 2540 Shumard Oak Boulevard, Tallahassee, 20 Florida 32399-0850, Advisors to the Florida Public 21 Service Commission. 22 23 24 25 FLORIDA PUBLIC SERVICE COMMISSION 000004 1 I N D E X 2 WITNESSES 3 NAME: PAGE NO. 4 THOMAS G. FOSTER Prefiled Testimony Inserted 63 5 Prefiled Testimony Inserted 80 6 JON FRANKE (As adopted by GARY D. MILLER) Prefiled Testimony Inserted 104 7 GARRY D. MILLER 8 Prefiled Testimony Inserted 128 9 CHRISTOPHER M. FALLON Prefiled Testimony Inserted 147 10 Prefiled Testimony Inserted 173 11 WILLIAM COSTON/JERRY HALLENSTEIN Prefiled Testimony Inserted 229 12 JEFFREY A. SMALL 13 Prefiled Testimony Inserted 233 14 15 16 17 18 19 20 21 22 23 24 25 FLORIDA PUBLIC SERVICE COMMISSION 000005 1 EXHIBITS 2 NUMBER: ID. ADMTD. 3 1 Comprehensive Exhibit List 60 60 4 2 through 111 61 (As identified on Comprehensive 5 Exhibit List) 6 84 through 111 61 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 FLORIDA PUBLIC SERVICE COMMISSION 000006 1 P R O C E E D I N G S 2 CHAIRMAN BRISÉ: Good morning. We're 3 going to go ahead and convene or call to order this 4 Nuclear Cost Recovery Clause hearing, Docket Number 5 130009-EI. And I'm going to ask Mr. Lawson to read 6 the notice. 7 MR. LAWSON: Thank you. By notice issued 8 June 17th, 2013, this time and place was set for 9 this hearing in Docket Number 130009-EI, the Nuclear 10 Cost Recovery Clause. The purpose of this hearing 11 is for the Commission to take action on Florida 12 Power & Light Company's and Duke Energy Florida, 13 Inc.'s petitions in this proceeding. 14 CHAIRMAN BRISÉ: Thank you very much. At 15 this time we will take appearances. 16 MR. ANDERSON: Good morning, Chairman 17 Brisé and Commissioners. I'd like to enter the 18 appearances, please, of myself, Bryan Anderson, my 19 colleagues Ken Rubin and Jessica Cano on behalf of 20 Florida Power & Light. 21 CHAIRMAN BRISÉ: Thank you. 22 MS. GAMBA: Blaise Gamba with Carlton 23 Fields for Duke Energy Florida. Good morning. 24 CHAIRMAN BRISÉ: Good morning. 25 MR. WALLS: Mike Walls with Carlton Fields FLORIDA PUBLIC SERVICE COMMISSION 000007 1 on behalf of Duke Energy Florida. 2 MR. BURNETT: John Burnett, Duke Energy 3 Florida. 4 MR. WRIGHT: Schef Wright and J. LaVia on 5 behalf of the Florida Retail Federation. Thank you. 6 MR. REHWINKEL: Charles Rehwinkel, Joe 7 McGlothlin, and Erik Sayler, and J. R. Kelly for the 8 Office of Public Counsel. 9 CHAIRMAN BRISÉ: Thank you. 10 MR. CAVROS: George Cavros on behalf of 11 Southern Alliance for Clean Energy. 12 CHAIRMAN BRISÉ: Thank you. 13 MR. BREW: Good morning. James Brew and 14 Alvin Taylor from Brickfield, Burchette, Ritts & 15 Stone for White Springs Agricultural Chemicals. 16 Thank you. 17 CHAIRMAN BRISÉ: Thank you. 18 MR. MOYLE: Jon Moyle with the Moyle Law 19 Firm appearing on behalf of the Florida Industrial 20 Power Users Group, FIPUG. 21 CHAIRMAN BRISÉ: Thank you. 22 MR. LAWSON: Oh, yes. Mike Lawson and 23 Keino Young on behalf of Commission staff. 24 MS. HELTON: Mary Anne Helton, advisor to 25 the Commission. Also here today is Curt Kiser, the FLORIDA PUBLIC SERVICE COMMISSION 000008 1 General Counsel. 2 CHAIRMAN BRISÉ: Thank you very much. 3 Is there anyone else that we're missing in 4 terms of appearances that needs to put in an 5 appearance at this time? Okay. If not, thank you. 6 Moving on to -- staff, are there any 7 preliminary matters? 8 MR. LAWSON: Yes, Commissioner, we have 9 several. 10 First, Duke Energy Florida has filed a 11 motion to defer the entirety of its case until next 12 year's NCRC docket, pending the Commission's review 13 of a global joint settlement that would, if 14 approved, resolve the issues in this docket. 15 At this time staff has not received any 16 objections to the motion to defer, and all parties 17 to the proposed global settlement support this 18 motion. If it is the will of the Commission, it 19 would be appropriate for the Commissioners to take 20 up DEF's motion at this time. 21 CHAIRMAN BRISÉ: Thank you very much. I 22 think we will go ahead and take up the motion. We 23 want to hear Duke make a presentation on the motion 24 at this time. 25 MR. BURNETT: Thank you, Mr. Chairman. FLORIDA PUBLIC SERVICE COMMISSION 000009 1 Commissioner, Mr. Lawson correctly stated 2 that the motion is to defer all issues in this case 3 pending the, the Commission's consideration of the, 4 of the settlement agreement. 5 A couple of points we wanted to make clear 6 is, number one, this motion to defer in no way 7 impacts or limits the Commission's ability to ask 8 questions in the limited proceeding. And part and 9 parcel of the settlement includes issues with the 10 Levy project and the CR3 extended power uprate. So 11 this motion to defer does no harm to the 12 Commission's ability to take information, ask 13 questions on that at the time. 14 Second, there is also a legal issue in 15 this proceeding about the amount of AFUDC to be 16 applied to cost. And the legal issue would have 17 been for Duke Energy Florida whether the 13.1 18 percent AFUDC rate at the time of the need 19 proceeding applied or the, the post Senate Bill 1472 20 rate of 10.46 applied. Because the, under the 21 proposed settlement the Levy project is now under 22 subsection 6 of the statute, the lowest AFUDC rate 23 of 10.29 percent applies, and that will be the AFUDC 24 rate that Duke Energy will be applying to the Levy 25 project now, like we're doing with the CR3 uprate. FLORIDA PUBLIC SERVICE COMMISSION 000010 1 So we're making that retroactive to July 1st of this 2 year. So that obviates our need to be involved in 3 the dispute over, if there is a dispute left, on 4 which AFUDC rate applies to a non-subsection 5 6 proceeding. 6 And then finally, as Mr. Lawson correctly 7 noted, all the parties to the settlement do not 8 oppose. And I also understand that SACE, who is a 9 non-party to the settlement, also does not oppose 10 the motion being granted. 11 CHAIRMAN BRISÉ: Okay. Thank you. At 12 this time I want to confirm the parties support or 13 oppose or have no position. 14 MR. WRIGHT: Mr. Chairman, the Florida 15 Retail Federation supports the motion to defer. 16 Thank you. 17 CHAIRMAN BRISÉ: Okay.