Common use of Storm Damage Clause in Contracts

Storm Damage. (a) Nothing in this 2021 Agreement shall preclude Tampa Electric from petitioning the Commission to seek recovery of costs associated with any tropical systems named by the National Hurricane Center or its successor without the application of any form of earnings test or measure and irrespective of previous or current base rate earnings. Consistent with the rate design and cost allocation methods approved in this 2021 Agreement, the Parties agree that recovery of storm costs from customers will begin, on an interim basis (subject to refund following a hearing or a full opportunity for a formal proceeding), sixty days following the filing by the company of a cost recovery petition and tariff with the Commission and will be based on a 12-month recovery period if the storm costs do not exceed $4.00/1,000 kWh on monthly residential customer bills. In the event the company’s reasonable and prudent storm costs exceed that level, any additional costs in excess of $4.00/1,000 kWh shall be recovered in a subsequent year or years as determined by the Commission, after hearing or after the opportunity for a formal proceeding has been afforded to all substantially affected persons or parties. All storm related costs shall be calculated and disposed of pursuant to Rule 25-6.0143, F.A.C., and shall be limited to (i) costs resulting from such tropical system named by the National Hurricane Center or its successor, (ii) the estimate of incremental storm restoration costs above the level of storm reserve prior to the storm, and (iii) the replenishment of the storm reserve to $55,860,642. The Parties to this 2021 Agreement are not precluded from participating in any such proceedings and opposing the amount of Tampa Electric's claimed costs (for example, and without limitation, on grounds that such claimed costs were not reasonable or were not prudently incurred) or whether the proposed recovery is consistent with this Paragraph 8, but not the mechanism agreed to herein. (b) The Parties agree that the $4.00/1,000 kWh cap in this Paragraph 8 shall apply in aggregate for a calendar year; provided, however, that Tampa Electric may petition the Commission to allow Tampa Electric to increase the initial 12 month recovery at rates greater than $4.00/1,000 kWh or for a period longer than 12 months if Tampa Electric incurs in excess of $100 million of storm recovery costs that qualify for recovery under subparagraph 8(a) in a given calendar year, inclusive of the amount needed to replenish the storm reserve to $55,860,642. All Consumer Parties reserve their right to oppose such a petition or take any position thereon. (c) The Parties expressly agree that any proceeding to recover costs associated with any storm shall not be a vehicle for a "rate case" type inquiry concerning the expenses, investment, or financial results of operations of Tampa Electric and shall not apply any form of earnings test or measure or consider previous or current base rate earnings. Such issues may be fully addressed in any subsequent Tampa Electric base rate case. (d) The provisions of this Paragraph 8 shall remain in effect during the Term except as otherwise permitted or provided for in this 2021 Agreement and shall continue in effect until the company’s base rates are next reset by the Commission. For clarity, this means that if this 2021 Agreement is terminated pursuant to Paragraph 10 hereof, the company’s rights regarding storm cost recovery under this 2021 Agreement are terminated at the same time, except that any Commission-approved surcharge then in effect shall remain in effect until the costs subject to that surcharge are fully recovered. A storm surcharge in effect without approval of the Commission shall be terminated at the time this 2021 Agreement is terminated pursuant to Paragraph 10 hereof. (e) During the Term, the company will continue to follow the Future Process Improvements specified in the Tampa Electric Storm Cost Settlement Agreement filed with the FPSC on April 9, 2019 and approved by Order No. PSC-2019-0234-AS-EI, issued June 14, 2019 in Docket No. 201702711-EI. Inclusion of this subparagraph (e) shall not be construed to mean that the expiration of the Term or termination of this 2021 Agreement has any effect on the effectiveness or validity of Order No. PSC-2019-0234-AS-EI.

Storm Damage. (a) Nothing in this 2021 2017 Agreement shall preclude Tampa Electric from petitioning the Commission to seek recovery of costs associated with any tropical systems named by the National Hurricane Center or its successor without the application of any form of earnings test or measure and irrespective of previous or current base rate earnings. Consistent with the rate design and cost allocation methods approved in this 2021 2017 Agreement, the Parties agree that recovery of storm costs from customers will begin, on an interim basis (subject to refund following a hearing or a full opportunity for a formal proceeding), sixty days following the filing by the company of a cost recovery petition and tariff with the Commission and will be based on a 12-month recovery period if the storm costs do not exceed $4.00/1,000 kWh on monthly residential customer bills. In the event the company’s reasonable and prudent storm costs exceed that level, any additional costs in excess of $4.00/1,000 kWh shall be recovered in a subsequent year or years as determined by the Commission, after hearing or after the opportunity for a formal proceeding has been afforded to all substantially affected persons or parties. All storm related costs shall be calculated and disposed of pursuant to Rule 25-6.0143, F.A.C., and shall be limited to (i) costs resulting from such a tropical system named by the National Hurricane Center or its successor, (ii) the estimate of incremental storm restoration costs above the level of storm reserve prior to the storm, and (iii) the replenishment of the storm reserve to $55,860,642. The Parties to this 2021 2017 Agreement are not precluded from participating in any such proceedings and opposing the amount of Tampa Electric's ’s claimed costs (for example, and without limitation, on grounds that such claimed costs were not reasonable or were not prudently incurred) or whether the proposed recovery is consistent with this Paragraph 85, but not the mechanism agreed to herein. (b) The Parties agree that the $4.00/1,000 kWh cap in this Paragraph 8 5 shall apply in aggregate for a calendar year; provided, however, that Tampa Electric may petition the Commission to allow Tampa Electric to increase the initial 12 month recovery at rates greater than $4.00/1,000 kWh or for a period longer than 12 months if Tampa Electric incurs in excess of $100 million of storm recovery costs that qualify for recovery under subparagraph 8(a) in a given calendar year, inclusive of the amount needed to replenish the storm reserve to $55,860,642. All Consumer Parties reserve their right to oppose such a petition or take any position thereonpetition. (c) The Parties expressly agree that any proceeding to recover costs associated with any storm shall not be a vehicle for a "“rate case" ” type inquiry concerning the expenses, investment, or financial results of operations of Tampa Electric and shall not apply any form of earnings test or measure or consider previous or current base rate earnings. Such issues may be fully addressed in any subsequent Tampa Electric base rate case. (d) The provisions of this Paragraph 8 5 shall remain in effect during the Term except as otherwise permitted or provided for in this 2021 2017 Agreement and shall continue in effect until the company’s base rates are next reset by the Commission. For clarity, this means that if this 2021 2017 Agreement is terminated pursuant to Paragraph 10 7 hereof, the company’s rights regarding storm cost recovery under this 2021 2017 Agreement are terminated at the same time, except that any Commission-approved surcharge then in effect shall remain in effect until the costs subject to that surcharge are fully recovered. A storm surcharge in effect without approval of the Commission shall be terminated at the time this 2021 2017 Agreement is terminated pursuant to Paragraph 10 7 hereof. (e) During the Term, the company will continue to follow the Future Process Improvements specified in the Tampa Electric Storm Cost Settlement Agreement filed with the FPSC on April 9, 2019 and approved by Order No. PSC-2019-0234-AS-EI, issued June 14, 2019 in Docket No. 201702711-EI. Inclusion of this subparagraph (e) shall not be construed to mean that the expiration of the Term or termination of this 2021 Agreement has any effect on the effectiveness or validity of Order No. PSC-2019-0234-AS-EI.

Storm Damage. (a) Nothing in this 2021 Agreement shall preclude Tampa Electric from petitioning the Commission to seek recovery of costs associated with any tropical systems named by the National Hurricane Center or its successor without the application of any form of earnings test or measure and irrespective of previous or current base rate earnings. Consistent with the rate design and cost allocation methods approved in this 2021 Agreement, the Parties agree that recovery of storm costs from customers will begin, on an interim basis (subject to refund following a hearing or a full opportunity for a formal proceeding)basis, sixty days following the filing by the company of a cost recovery petition and tariff with the Commission and will be based on a 12-month recovery period if the storm costs do not exceed $4.00/1,000 kWh on monthly residential customer bills. In the event the company’s reasonable and prudent storm costs exceed that level, any additional costs in excess of $4.00/1,000 kWh shall be recovered in a subsequent year or years as determined by the Commission, after hearing or after the opportunity for a formal proceeding has been afforded to all substantially affected persons or parties. All storm related costs shall be calculated and disposed of pursuant to Commission Rule 25-6.0143, F.A.C., and shall be limited to (i) costs resulting from such a tropical system named by the National Hurricane Center or its successor, (ii) the estimate of incremental storm restoration costs above the level of storm reserve prior to the storm, storm and (iii) the replenishment of the storm reserve to $55,860,642the level as of October, 2013. The Parties to this 2021 Agreement are not precluded from participating in any such proceedings and opposing the amount of Tampa Electric's ’s claimed costs (for example, and without limitation, on grounds that such claimed costs were not reasonable or were not prudently incurred) or whether the proposed recovery is consistent with this Paragraph 85, but not the mechanism agreed to herein. (b) The Parties agree that the $4.00/1,000 kWh cap in this Paragraph 8 5 shall apply in aggregate for a calendar year; provided, however, that Tampa Electric may petition the Commission to allow Tampa Electric to increase the initial 12 month recovery at rates greater than $4.00/1,000 kWh or for a period longer than 12 months if Tampa Electric incurs in excess of $100 million of storm recovery costs that qualify for recovery under subparagraph 8(a) in a given calendar year, inclusive of the amount needed to replenish the storm reserve to $55,860,642the level that existed as of August 31, 2013. All Consumer Parties reserve their right to oppose such a petition or take any position thereonpetition. (c) The Parties expressly agree that any proceeding to recover costs associated with any storm shall not be a vehicle for a "“rate case" ” type inquiry concerning the expenses, investment, or financial results of operations of Tampa Electric and shall not apply any form of earnings test or measure or consider previous or current base rate earnings. Such issues may be fully addressed in any subsequent Tampa Electric base rate case. (d) The provisions of this Paragraph 8 paragraph 5 shall remain in effect during the Term except as otherwise permitted or provided for in this 2021 Agreement and shall continue in effect until the company’s base rates are next reset by the Commission. For clarity, this means that if this 2021 Agreement is terminated pursuant to Paragraph 10 hereof, the company’s rights regarding storm cost recovery under this 2021 Agreement are terminated at the same time, except that any Commission-approved surcharge then in effect shall remain in effect until the costs subject to that surcharge are fully recovered. A storm surcharge in effect without approval of the Commission shall be terminated at the time this 2021 Agreement is terminated pursuant to Paragraph 10 hereof. (e) During the Term, the company will continue to follow the Future Process Improvements specified in the Tampa Electric Storm Cost Settlement Agreement filed with the FPSC on April 9, 2019 and approved by Order No. PSC-2019-0234-AS-EI, issued June 14, 2019 in Docket No. 201702711-EI. Inclusion of this subparagraph (e) shall not be construed to mean that the expiration of the Term or termination of this 2021 Agreement has any effect on the effectiveness or validity of Order No. PSC-2019-0234-AS-EI.