c:at~ F=PL s;;o,.., c::; C) ;::: ..,, --i< ..,.., ).--. n... ("') w c Zt;'; ""? ::::.:::- < (] D '""';1 0" c: <:'") December 16,2013

Transcription

1 F=PL Florida Power & Light Company, 7 Universe Blvd, Juno Beach FL December 16,213 Mr. John Slemkewicz Public Utilities Supervisor Division of Economic Regulation Florida Public Service Commission 254 Shumard Oak Blvd. Tallahassee, FL Dear Mr. Slemkewicz: Enclosed is Florida Power & Light Company's Rate of Return Surveillance Report to the Florida Public Service Commission for October 213. This report was prepared using a thirteen month average and year-end rate base and adjustments consistent with Docket No EI, Order No. PSC S-EI. The required rate of return was calculated using the return on common equity as authorized in the aforementioned docket and order. This report also includes a pro forma adjustment to net operating income which reflects the annual effect of revenue normalization due to abnormal weather conditions. The pro forma return on common equity is 11.32%. This report was prepared consistent with the guidelines provided in Commission Form PSC/AFA 14. Sincerely, c:at~ SoiL Stamm Director of Regulatory Accounting Enclosures Copy: J. R. Kelly, Office of Public Counsel..,, l> ~ n... ("') w c ;:c s;;o,.., c::;..c...- ("") (")> C) ;::: --i< ~{l:'r"" Zt;'; ""? " c: <:'") C)--. :: ~tn~ ~ --o.:c<: :::::1:,. -~-l"j rr...,.., ) ~---ii J>.;::- ::;.(_/')' ~-~ ::::.:::- < (] D '""';1 r'1

2 EARNINGS SURVEILLANCE REPORT SUMMARY SCHEDULE 1: PAGE 1 OF 1 ACTUAL PER BOOKS FPSC ADJUSTMENTS FPSC ADJUSTED PRO FORMA ADJUSTMENTS PRO FORMA ADJUSTED I. AVEBAGE RATE OF RETURN (JURISDICTIONAL) NET INCOME 1 '78, 73,253 (A) (18,825,83) (B) 1,52/',878, ,142,38 1,563,2,55 RATE BASE 24,343,47,953 (1,254,191,94) 23,89,216,48 23,89,216,48 AVERAGE RATE OF RETURN 7.2% 6.62% 6.77% II. YEAR END RATE OF RETURN (JURISDICTIONAL) NET INCOME 1 '78, 73,253 (A) (177,965,832) (B) 1,53,737,42 35,142,38 1,565,879 8 RATE BASE 25,72,72,42 (878,235,42) 24,194,485, 24,194,485, YEAR END RATE OF RETURN 6.81% 6.33% 6.47% (A) INCLUDES AFUDC EARNINGS (B) INCLUDES REVERSAL OF AFUDC EARNINGS Ill. REQUIRED RATES OF RETUBN AVERAGE CAPITAL STRUCTURE (FPSC ADJUSTED BASIS) LOW 5.92% MIDPOINT 6.39% HIGH 6.85% IV. FINANCIAL INTEGRITY INDICATORS A. TIMES INTEREST EARNED WITH AFUDC 5.98 (SYSTEM PER BOOKS BASIS) B. TIMES INTEREST EARNED WITHOUT AFUDC 5.79 (SYSTEM PER BOOKS BASIS) C. AFUDC AS PER CENT OF NET INCOME 5.39% (SYSTEM PER BOOKS BASIS) D. PERCENT OF CONSTRUCTION GENERATED INTERNALLY 71.11% (SYSTEM PER BOOKS BASIS) E. LTD TO INVESTOR FUNDS 37.99% (FPSC ADJUSTED BASIS) F. STD TO INVESTOR FUNDS 2.47% (FPSC ADJUSTED BASIS) G. RETURN ON COMMON EQUITY (AVERAGE) 1.99% (FPSC ADJUSTED) H. RETURN ON COMMON EQUITY 11.32% (PROFORMA ADJUSTED) NOTE: THIS REPORT HAS BEEN PREPARED USING A THIRTEEN MONTH AVERAGE AND END OF PERIOD RATE BASE AND ADJUSTMENTS CONSISTENT WITH DOCKET NO EI, ORDER NO. PSC S-EI. THIS REPORT DOES NOT NECESSARILY REPRESENT THE OPINION OF THE COMPANY AS TO THE ACTUAL EARNED RATE OF RETURN FOR THE PERIOD COVERED. I AM AWARE THAT SECTION 837.6, FLORIDA STATUES, PROVIDES: WHOEVER KNOWINGLY MAKES A FALSE STATEMENT IN WRITING WITH THE INTENT TO MISLEAD A PUBLIC SERVANT IN THE PERFORMANCE OF HIS OFFICIAL DUTY SHALL BE GUILTY OF A MISDEMEANOR OF THE SECOND DEGREE, PUNISHABLE AS ~75.rr5.~S ~ KIMBERLYOUSDAHL ~~ I,,,,~ (VICE PRESIDENT AND CHIEF ACCOUNTING OFFICER) (SIGNATURE) "', ~.u... ( AT~

3 AVERAGE RATE OF RETURN RATE BASE SCHEDULE 2: PAGE 1 OF 3 PLANT IN SERVICE ACCUMULATED DEPRECIATION & AMORTIZATION NET CONSTRUCTION PLANT IN PROPERTY HELD WORK IN SERVICE FOR FUTURE USE PROGRESS NET WORKING NUCLEAR FUEL UTILITY PLANT CAPITAL RATE BASE SYSTEM PER BOOKS 35,493,48,491 12,822,126,547 22,67,921, ,588,714 2,257,34, ,68,151 25,83,613,426 m7o~17,595l 24,833,195,831 JURISDICTIONAL PER BOOKS 34,6Q~.52,3-11,75,683,25 22,851,368, ,123,43 2,196, ,425,634 25,93,896,411 L1,56,488,458) 24,343,47,953 FPSC ADJUSTMENTS (2,449,594, 146) (315,558,583) (SEE SCHEDULE 2, PAGE 3 OF 3 AND SCHEDULE 2, PAGE 3B OF 3 FPSC ADJUSTED: 32,152,457,884 11,435,124,622 (2, 134,35,563) (1,726,234,731) 2,717,333,262 ~.123,43 47,744,178 (3,86,27,294) 2 66,78,39 (1,254,191,94) 644,425,634 22,43,626,116 1,45,589,932 23,89,216,48 PRO FORMA ADJUSTMENTS PRO FORMA ADJUSTMENTS: PRO FORMA ADJUSTED 32,152,457,884 11,435,124,622 2,717,333, ,123,43 47,744, ,425,634 22,43,626,116 1,45,589,932 23,89,216,48 NOTE: THE PROFORMA ADJUSTMENTS ARE NOT NECESSARILY ALL OF THE PROFORMA ADJUSTMENTS THAT WOULD BE MADE IN A BASE RATE FILING.

4 AVERAGE RATE OF RETURN INCOME STATEMENT SCHEDULE 2: PAGE 2 OF 3 REVENUES OPERATION & MAINTENANCE FUEL& NET INTERCHANGE OTHER DEPRECIATION & AMORTIZATION TAXES OTHER THAN INCOME INCOME TAXES CURRENT DEFERRED INCOME TAXES (NET) INVESTMENT TAX CREDIT (NET) (GAIN)ILOSS ON DISPOSITION EXPENSES NET INCOME(A) SYSTEM PER BOOKS 1,153,925, {127,554) (1,329,358) JURISDICTIONAL PER BOOKS 9,969,836, ,92,166, ,192,229 (125,7) (1,318,395) ,627,79,183 FPSC ADJUSTMENTS FRANCHISE REVENUE FRANCHISE EXPENSE GROSS RECEIPTS TAX FINANCIAL PLANNING SERVICES INDUSTRY ASSOCIATION DUES ECONOMIC DEVELOPMENT 5% AVIATION- EXPENSES EXECUTIVE COMPENSATION FUEL COST REG RETAIL CONSERVATION COST RECOVERY CAPACITY COST RECOVERY ENVIRONMENTAL COST RECOVERY OTHER RATE CASE ADJUSTMENTS (1) STORM DEFICIENCY RECOVERY GAIN ON SALE LAND (PROPERTY) INTEREST TAX DEFICIENCIES INTEREST SYCHRONIZATION (442,385,379) (229,29,418) (3, 195, 737,24) (13,889,22) (697,814,218) (214,5,912) (18,81,396) (3, 177, 134,44) (482,298,331) (323,127) (1,753,522) (1,83) (196,913) (35,898,722) (8,82,369) (12,237,281) (68,331,613) (24,757,773) (1,484,675) 1,588,9 (7,589,882) (151,462,988) (53,694,93) (24,394) (84,883,282) (11,378,152) (431,7,28) (229,25,813) (2,26,15) (1,212,251) (63,876) (293,788) (188,261,38) 188,261,58 (12,71) 124, ,421 38,895 75,959 13,847,932 57,23,8 2,896,313 (4,583,848) (49,1,593) 78,845 (8,46,824) (611,83) 3,592,381 (6, 14,78) (3,62,239) 6,467,34 (3,377,817) (7,821,297) 549,85 (177,639, 19) (264,748,222) (229, 127,884) (198,48) (1,77,11) (61,935) (12,954) (22,5, 79) (3,191,116,596) (129,745,12) (7,813,347) (13,585,94) (125,549) (94,68,781) 974,26 22,771,84 (264,748, 189) 264,748,222 (162,534) 198,48 1,77,11 61,935 12,954 22,5,79 (4,62,644) (1 '124,82) 2,999,129 (83,42,818) 125,549 (13,472,615) (974,26) (22,771,84) FPSC ADJUSTMENTS (5,18,183,788) (3,659,432,77) (26,318,815) (297,615,254) (675,781 '174) 42,765,284 (68,438,829) 549,85 (4,918,271,753) (99,912,13) FPSC ADJUSTED 4,951,652,52 22,359,711 1,433,86, ,467, ,384,884 79,895,88 675,753,4 (125,7) (768,59) 3,423,774,35 1,527,878,169 PRO FORMA ADJUSTMENTS (SEE SCHEDULE 2, PAGE 2A OF 3) PRO FORMA SYSTEM PER BOOKS ADJUSTED 57,253,74 5,8,95,594 22,359,711 1,433,86, ,487,652 41, ,426,16 22,69,472 11,965, ,753,4 (125,7) (768,59) 22,11,694 3,445,885,44 35,142,38 1,563,2,55 (A) THE ADDITION OF EARNINGS FROM AFUDC WOULD INCREASE THE SYSTEM NO\ BY AND THE JURISDICTIONAL NO\ BY 82,62,971 8,913,7 (B) ECONOMIC DEVELOPMENT COSTS RELATED TO THE PERIOD ARE: ON A COMPANY BASIS ON A JURISDICTIONAL BASIS 2,47,65 2,16,599 CURRENT MONTH AMOUNT SYSTEM PER BOOKS JURISDICTIONAL PER BOOKS 95,873, ,217, ,392,52 316,466, ,282,54 136,876,56 172,989,218 17,27,917 97,327,782 96,626,149 36,426,743 36,114,194 17,78,68 17,617,7 71,87 69,72 (14,892) (13,991) 787,164, ,873, ,78, ,344,38 NOTE: (1) REFLECTS A PORTION OF THE DEPRECIATION/DISMANTLEMENT RESERVE SURPLUS ADJUSTMENT PROVIDED UNDER ORDER NO. PSC S-E\. THE PROFORMA ADJUSTMENTS ARE NOT NECESSARILY ALL THE PROFORMA THAT WOULD BE MADE IN A BASE RATE FILING.

5 AVERAGE RATE OF RETURN INCOME STATEMENT DETAIL OF PRO FORMA ADJUSTMENTS SCHEDULE 2: PAGE 2A OF 3 OPERATION & MAINTENANCE FUEL& REVENUES NET INTERCHANGE OTHER DEPRECIATION & AMORTIZATION TAXES OTHER THAN INCOME DEFERRED INVESTMENT (GAIN)ILOSS NET INCOME TAXES INCOME TAXES TAX CREDIT ON CURRENT (NET) (NET) DISPOSITION EXPENSES INCOME(A) WEATHER NORMALIZATION ADJUSTMENT (1) 57,253,74 41,222 22,69,472 22,11,694 35,142,38 PROFORMA ADJUSTMENTS 57,253,74 41,222 22,69,472 22,11,694 35,142,36 FOOTNOTES: (1) ADJUSTMENT TO NORMALIZE BASE REVENUES AS A RESULT OF ABNORMAL WEATHER CONDITIONS EXPERIENCED DURING THE PERIOD.

6 AVERAGE RATE OF RETURN SYSTEM ADJUSTMENTS SCHEDULE 2: PAGE 3 OF 3 RATE BASE ADJUSTMENTS SYSTEM JURISDICTIONAL PLANT IN SERVICE: ENVIRONMENTAL FUEL AND CAPACITY 1,433,37, ,158,745 1,45,286,44 938,785,565 CAPITALIZED EXECUTIVE COMPENSATION 1,188,293 1,17,299 LOAD CONTROL 38,249,961 38,249,961 ASSET RETIREMENT OBLIGATION CAPITAL LEASES 8,713,57 58,44,741 2,498,22,916 8,581,564 57,52,352 2,449,594,146 ACCUMULATED PROVISION FOR DEPRECIATION: ENVIRONMENTAL ACCUM PROV DECOMMISSIONING COSTS (7,373,484) (3,36,66,722) (68,997,678) (3,247,232,498) ASSET RETIREMENT OBLIGATION 45,239,144 44,554,115 ASSET RETIREMENT OBLIGATION DECOMMISSIONING AVIATION- RESERVE 3,64, 764,55 3,18,356,141 FUEL AND CAPACITY (4,525,472) (39,73,918) OTHER RATE CASE ADJUSTMENTS (1) (16,54) (15,723) LOAD CONTROL CAPITAL LEASES (19,713,62) (2,849, 13) (33,8,698) (19,713,62) (2,85,96) (315,558,583) CONSTRUCTION WORK IN PROGRESS: CONSTRUCTION WORK IN PROGRESS CWIP- ECRC PROJECTS 1,715,782,556 42,139,69 1,757,922,246 1,684,918,875 41,315,856 1,726,234,731 NUCLEAR FUEL: NUCLEAR FUEL IN PROCESS NUCLEAR FUEL CAPITAL LEASES WORKING CAPITAL: (SEE SCHEDULE 2, PAGE 3B OF 3) (2,653, 134,623) (2,66,78,39) ADJUSTMENTS 1,272,729,842 1,254,191,94 NOTE: {1) REFLECTS A PORTION OF THE DEPRECIATION/DISMANTLEMENT RESERVE SURPLUS ADJUSTMENT PROVIDED UNDER ORDER NO. PSC S-EI.

7 AVERAGE RATE OF RETURN SYSTEM ADJUSTMENTS INCOME STATEMENT SCHEDULE 2: PAGE 3A OF 3 REVENUES OPERATION & MAINTENANCE TAXES OTHER FUEL& DEPRECIATION & THAN NET INTERCHANGE OTHER AMORTIZATION INCOME DEFERRED INVESTMENT (GAIN)/LOSS NET INCOME TAXES INCOME TAXES TAX CREDIT ON CURRENT (NET) (NET) DISPOSITION EXPENSES INCOME(A) --- SYSTEM PER BOOKS 1,153,925,735 3,76,388,186 1 '722,232,16 1,116,828,95 1 '1,367,622 37,847, ,578,96 (127,554) (1,329,358) 8,494,786,548 1,659,139,186 FPSC ADJUSTMENTS FRANCHISE REVENUE FRANCHISE EXPENSE GROSS RECEIPTS TAX FINANCIAL PLANNING SERVICES INDUSTRY ASSOCIATION DUES ECONOMIC DEVELOPMENT 5% AVIATION- EXPENSES EXECUTIVE COMPENSATION ADVERTISING EXPENSES FUEL COST REG RETAIL CONSERVATION COST RECOVERY CAPACITY COST RECOVERY ENVIRONMENTAL COST RECOVERY OTHER RATE CASE ADJUSTMENTS (1) STORM DEFICIENCY RECOVERY GAIN ON SALE LAND (PROPERTY) INTEREST TAX DEFICIENCIES INTEREST SYCHRONIZATION (442,385,379) (229,29,418) (3,263,81,555) (13,869,22) (697,899,992) (214,5,912) (18,81,396) (11,378,152) (431,7,28) (229,25,813) (328,95) (1,78,463) (12,38) (199,941) (36,45,673) (3,245,685,694) (9,2,983) (2,26,15) (12,237,281) (7,589,662) (1,212,251) (491,94,122) (69,477,393) (151,462,986) (66,31) (25,251,44) (54,765,62) (296,572) (28,78) (1,496,795) (84,663,282) 1,61,395 (186,261,36) (177,639, 19) (264,746,189) 186,261,58 (264,746,222) 264,746,222 (12,71) (229, 127,884) (162,534) 126,563 (21,532) 21, ,821 (1,93,661) 1,93,661 39,493 (62,887) 62,667 77,127 (122,813) 122,813 14,6,847 (22,389,826) 22,369,826 57,513,4 (6, 156,532) (3,259,592, 184) (4,29,371) 2,896,313 (3,62,239) (129,745,12) (1,124,82) (466,683) 6,467,34 (77,451,911) 9,551,919 (48,41,34) (3,377,817) 56,768 (131,54,966) (82,464,946) 8,59 (128,199) 128,199 (8,456, 149) (94,616,226) (13,465, 17) (621,21) 989,185 (989,185) 31,43,528 (7,941,551) 23,11,977 (23, 11 '977) FPSC ADJUSTMENTS (5,86,333,855) (3,737,589,816) (262,717,69) (298, 69, 239) (675, 786, 115) 48,465,846 (68,61,835) 56,768 (4,994,367,46) (91,966,396) FPSC ADJUSTED 5,67,591,88 22,798,37 1,459,514, ,138,71 424,581,57 86,313, ,968,125 (127,554) (768,59) 3,5,419,66 1,567,172,792 PRO FORMA ADJUSTMENTS (SEE SCHEDULE 2, PAGE 3C OF 3) PRO FORMA SYSTEM PER BOOKS ADJUSTED 57,253,74 5,124,844,954 41,222 22,798,37 1,459,514, ,138,71 424,622,73 22,69,472 22,11,694 35,142,38 18,383,44 689,968,125 (127,554) (768,59) 3,522,529,782 1,62,315,172 (A) THE ADDITION OF EARNINGS FROM AFUDC WOULD INCREASE THE SYSTEM NOI BY 82,62,971 NOTE: (1) REFLECTS A PORTION OF THE DEPRECIATION/DISMANTLEMENT RESERVE SURPLUS ADJUSTMENT PROVIDED UNDER ORDER NO. PSC S-EI. THE PROFORMA ADJUSTMENTS ARE NOT NECESSARILY ALL THE PROFORMA THAT WOULD BE MADE IN A BASE RATE FILING.

8 AVERAGE RATE OF RETURN SYSTEM ADJUSTMENTS SCHEDULE 2: PAGE 3B OF 3 WORKING CAPITAL ADJUSTMENTS SYSTEM JURISDICTIONAL ADJUSTMENTS TO ASSETS PER BOOKS: ACCOUNTS RECEIVABLE - ASSOC COS 17,955,64 17,67,455 INTEREST & DIVIDENDS RECEIVABLE 638,8 628,654 ACCTS RECEIVABLE- TAX REFUND NET UNDERRECOVERED FUEL, CAPACITY,ECCR, ECRC 89,748,642 89,678,824 CASH CAPITAL SUB ACCOUNT POLE ATTACHMENTS RENTS RECEIVABLE 14,178,859 13,953,659 PREPAYMENTS -INTEREST ON COMMERCIAL PAPER 9,913,199 9,78,278 RATE CASE EXPENSE 1,473,621 1,473,621 TEMPORARY CASH INVESTMENTS 34,614,75 34,64,929 ASSET RETIREMENT OBLIGATION STORM DEFICIENCY RECOVERY 638,358, ,358,452 NUCLEAR COST RECOVERY 3,153,573 3,153,573 JOBBING ACCOUNTS 18,627,797 18,331,937 ADJUSTMENTS TO ASSETS PER BOOKS 828,663, ,22,382 ADJUSTMENTS TO LIABILITIES PER BOOKS: ACCOUNTS PAYABLE- ASSOC COS ACCUM DEFERRED RETIREMENT BENEFITS (459,713) (452,752) ACCUM. PROV. - PROPERTY & STORM INSURANCE (119, 765,529) (119,765,529) ACCUM. PROV.- RATE REFUNDS (1,285) GAIN ON SALE OF EMISSION ALLOWANCE (1,17,357) (997,467) JOBBING ACCOUNTS (16,252,642) (15,994,56) PAYABLE TO NUCLEAR DECOMMISSIONING FUND LEHMAN HEDGE POLE ATTACHMENT RENTS PAYABLE (7,278,81) {7, 162,485) PREFERRED STOCK DIVIDENDS ACCRUED SJRPP ACCELERATED RECOVERY (52,944,996) (51,874,617) STORM DEFICIENCY RECOVERY ASSET RETIREMENT OBLIGATION (3, 118,716,925) (3,71,492,35) MARGIN CALL CASH COLLATERAL NUCLEAR COST RECOVERY (165,361,382) (165,361,382) TRANSMISSION RELIABILITY ENHANCEMENT ADJUSTMENTS TO LIABILITIES PER BOOKS (3,481 '797,91) (3,433, 1, 772) NET ADJUSTMENTS TO WORKING CAPITAL PER BOOKS (2,653, 134,623) (2,66,78,39)

9 AVERAGE RATE OF RETURN INCOME STATEMENT DETAIL OF PRO FORMA ADJUSTMENTS SCHEDULE 2: PAGE 3C OF 3 OPERATION & MAINTENANCE FUEL& REVENUES NET INTERCHANGE OTHER DEPRECIATION & AMORTIZATION TAXES OTHER THAN INCOME INCOME TAXES CURRENT DEFERRED INVESTMENT (GAIN)ILOSS NET INCOME TAXES TAX CREDIT ON (NET_)_ (NET) DISPOSITION EXPENSES INCOME(A) WEATHER NORMALIZATION ADJUSTMENT (1) 57,253,74 41.= 22,69,472 22,11,694 35,142,36 PROFORMA ADJUSTMENTS 57,253,74 41,222 22,69,472 22,11,694 35,142,36 FOOTNOTES: (1) ADJUSTMENT TO NORMALIZE BASE REVENUES AS A RESULT OF ABNORMAL WEATHER CONDITIONS EXPERIENCED DURING THE PERIOD.

10 YEAR END RATE OF RETURN RATE BASE SCHEDULE 3: PAGE 1 OF 3 PLANT IN SERVICE ACCUMULATED DEPRECIATION & AMORTIZATION NET CONSTRUCTION PLANT IN PROPERTY HELD WORK IN SERVICE FOR FUTURE USE PROGRESS NET WORKING NUCLEAR FUEL UTILITY PLANT CAPITAL - RATE BASE SYSTEM PER BOOKS 36,668, ,58,62, ,963,289, (97,417,595) JURISDICTIONAL PER BOOKS 35,74,65,296 11,955,58,328 23,785,546, ,881,547 1,94,859, ,921,13 26,633,28,878 (1,58,488,458) 25,72,72,42 FPSC ADJUSTMENTS (2,44,467,632) (343,474,999) (SEE SCHEDULE 3, PAGE 3 OF 3 AND SCHEDULE 2, PAGE 3B OF 3 FPSC ADJUSTED: 33,3,137,684 11,611,583,329 (2,96,992,632) (1367,321,177) 21,688,554, ,881, ,538,58 (3 484,313,81) 2,66,78,39 ( ) 661,921,13 23,148,895,68 1,45,589,932 24,194,485, PRO FORMA ADJUSTMENTS PRO FORMA ADJUSTMENTS: PRO FORMA ADJUSTED 33,3,137,684 11,611,583,329 21,688,554, ,881, ,538,58 661,921,13 23,148,895,88 1,45,589,932 24,194,485,

11 YEAR END RATE OF RETURN INCOME STATEMENT SCHEDULE 3: PAGE 2 OF 3 REVENUES OPERATION & MAINTENANCE TAXES OTHER FUEL& DEPRECIATION & THAN NET INTERCHANGE OTHER AMORTIZATION INCOME DEFERRED INVESTMENT (GAIN)/LOSS NET INCOME TAXES INCOME TAXES TAX CREDIT ON CURRENT ~ (NET) DISPOSITION EXPENSES INCOME(A) SYSTEM PER BOOKS 1,153,925, ,722,232,16 1,116,828,95 1 '1,367,622 37,847, ,578,96 (127,554) (1,329,358) 8,494, 786,548 1,659, 139,188 JURISDICTIONAL PER BOOKS 9,969,836,286 3,681,792,481 1,694,125,298 1,94,82,96 1,92,166,58 37,13, ,192,229 (125,7) (1,318,395) 8,342,46,13 1,627,79,183 FPSC ADJUSTMENTS FRANCHISE REVENUE FRANCHISE EXPENSE GROSS RECEIPTS TAX FINANCIAL PLANNING SERVICES INDUSTRY ASSOCIATION DUES ECONOMIC DEVELOPMENT 5% AVIATION- EXPENSES EXECUTIVE COMPENSATION FUEL COST REC RETAIL CONSERVATION COST RECOVERY CAPACITY COST RECOVERY ENVIRONMENTAL COST RECOVERY OTHER RATE CASE ADJUSTMENTS (1) STORM DEFICIENCY RECOVERY GAIN ON SALE LAND (PROPERTY) INTEREST TAX DEFICIENCIES INTEREST SYCHRONIZATION FPSC ADJUSTMENTS (442,385,379) (229,29,418) (3,195,737,24) (13,869,22) (697,814,218) (214,5,912) (18,81,396) (5,18,183,766) (11,378,152) (431,7,28) (229,25,813) (323,127) (1,753,522) (1,83) (196,913) (35,898,722) (3, 177, 134,44) (8,82,369) (2,26,15) (12,237,281) (7,589,662) (1,212,251) (482,298,331) (68,331,613) (151,462,986) (63,876) (24,757,773) (53,694,93) (293,786) (24,394) (1,464,675) (84,663,282) 1,586,9 (3,659,432, 77) (26,318,815) (297,615,254) (675,781,174) (166,261,38) (177,639,19) (264,746,189) 166,261,58 (264,746,222) 264,746,222 (12,71) (229, 127,864) (162,534) 124,646 (198,48) 198,48 676,421 (1,77,11) 1,77,11 38,895 (61,935) 61,935 75,959 (12,954) 12,954 13,847,932 (22,5, 79) 22,5,79 57,23,8 (6, 14, 78) (3, 191 '116,596) (4,62,644) 2,896,313 (3,62,239) (129,745,12) (1, 124,82) (4,583,646) 6,467,34 (7,813,347) 2,999,129 (49,1,593) (3,377,817) 549,85 (13,585,94) (83,42,818) 78,845 (125,549) 125,549 (8,46,824) (94,68,781) (13,472,615) (611,83) 974,26 (974,26) 27,733,13 (7,821,297) 19,911,833 (19,911,833) 39,96,33 (68,438,829) 549,85 (4,921 '131,4) (97,52, 762) FPSC ADJUSTED 4,951,652,52 22,359,711 1,433,86, ,467, ,364,884 77,36, ,753,4 (125,7) (768,59) 3,42,915,99 1,53,737,42 PRO FORMA ADJUSTMENTS (SEE SCHEDULE 2, PAGE 2A OF 3) PRO FORMA SYSTEM PER BOOKS ADJUSTED 57,253,74 5,8,95,594 41,222 22,359,711 1,433,86, ,467, ,426,16 22,69,472 22,11,694 35,142,38 99,16,11 675,753,4 (125,7) (768,59) 3,443,25, 793 1,565,879,8 (A) THE ADDITION OF EARNINGS FROM AFUDC WOULD INCREASE THE SYSTEM NOI BY AND THE JURISDICTIONAL NOI BY 82,62,971 8,913,7 NOTE: (1) REFLECTS A PORTION OF THE DEPRECIATION/DISMANTLEMENT RESERVE SURPLUS ADJUSTMENT PROVIDED UNDER ORDER NO. PSC S-EI. THE PROFORMA ADJUSTMENTS ARE NOT NECESSARILY ALL THE PROFORMA THAT WOULD BE MADE IN A BASE RATE FILING.

12 YEAR END RATE OF RETURN INCOME STATEMENT DETAIL OF PRO FORMA ADJUSTMENTS SCHEDULE 3: PAGE 2A OF 3 OPERATION & MAINTENANCE FUEL& REVENUES NET INTERCHANGE OTHER DEPRECIATION & AMORTIZATION TAXES OTHER THAN INCOME DEFERRED INVESTMENT (GAIN)/LOSS NET INCOME TAXES INCOME TAXES TAX CREDIT ON CURRENT (NET) (NET) DISPOSITION EXPENSES INCOME(A) WEATHER NORMALIZATION ADJUSTMENT (1). 57,253,74 41,222 22,69,472 22,11,694 35,142,36 PROFORMA ADJUSTMENTS 57,253,74 41,222 22,69,472 22,11,694 35,142,36 FOOTNOTES: (1) ADJUSTMENT TO NORMALIZE BASE REVENUES AS A RESULT OF ABNORMAL WEATHER CONDITIONS EXPERIENCED DURING THE PERIOD

13 YEAR END RATE OF RETURN SYSTEM ADJUSTMENTS SCHEDULE 3: PAGE 3 OF 3 RATE BASE ADJUSTMENTS SYSTEM JURISDICTIONAL PLANT IN SERVICE: ENVIRONMENTAL FUEL AND CAPACITY 1,461,642, ,636,853 1,433,66,93 91,42,469 CAPITALIZED EXECUTIVE COMPENSATION 2,719,986 2,678,799 LOAD CONTROL ASSET RETIREMENT OBLIGATION CAPITAL LEASES 4,88,387 6,164,61 58,44,741 2,488,656,136 4,88,387 6,7,722 57,52,352 2,44,467,632 ACCUMULATED PROVISION FOR DEPRECIATION: ENVIRONMENTAL ACCUM PROV DECOMMISSIONING COSTS (86,245,91) (3,445,619,219) (84,559, 788) (3,383,748,854) ASSET RETIREMENT OBLIGATION 47,197,359 46,482,678 ASSET RETIREMENT OBLIGATION DECOMMISSIONING AVIATION- RESERVE FUEL AND CAPACITY OTHER RATE CASE ADJUSTMENTS (1) LOAD CONTROL CAPITAL LEASES 3,193,613,538 (44,992, 172) (28,78) (19,239,97) {3,43,833) (358,925,96) 3,145,254,533 (44,8,322) (24,394) (19,239,97) (3,378,882) (343,474,999) CONSTRUCTION WORK IN PROGRESS: CONSTRUCTION WORK IN PROGRESS CWIP- ECRC PROJECTS 1,367,876,5 44,884,534 1,412,76,584 1,343,314,139 44,7,38 1,387,321 '177 NUCLEAR FUEL: NUCLEAR FUEL IN PROCESS NUCLEAR FUEL CAPITAL LEASES WORKING CAPITAL: (SEE SCHEDULE 2, PAGE 3B OF 3) (2,653, 134,623) (2,66,78,39) ADJUSTMENTS 889,356,19 878,235,42 NOTE: {1) REFLECTS A PORTION OF THE DEPRECIATION/DISMANTLEMENT RESERVE SURPLUS ADJUSTMENT PROVIDED UNDER ORDER NO. PSC S-EI.

14 YEAR END RATE OF RETURN SYSTEM ADJUSTMENTS INCOME STATEMENT REVENUES OPERATION & MAINTENANCE FUEL& NET INTERCHANGE OTHER TAXES OTHER DEPRECIATION & THAN INCOME TAXES AMORTIZATION INCOME CURRENT SCHEDULE 3: PAGE 3A OF 3 DEFERRED INVESTMENT (GAIN)/LOSS NET INCOME TAXES TAX CREDIT ON (NET) (NET) DISPOSITION EXPENSES INCOME(A) SYSTEM PER BOOKS '722,232,16 1,116,828,95 1 '1,367, (127,554) (1,329,358) ,548 1,659,139,188 FPSC ADJUSTMENTS FRANCHISE REVENUE FRANCHISE EXPENSE GROSS RECEIPTS TAX FINANCIAL PLANNING SERVICES INDUSTRY ASSOCIATION DUES ECONOMIC DEVELOPMENT 5% AVIATION- EXPENSES EXECUTIVE COMPENSATION FUEL COST REC RETAIL CONSERVATION COST RECOVERY CAPACITY COST RECOVERY ENVIRONMENTAL COST RECOVERY OTHER RATE CASE ADJUSTMENTS (1) STORM DEFICIENCY RECOVERY GAIN ON SALE LAND (PROPERTY) INTEREST TAX DEFICIENCIES INTEREST SYCHRONIZA TION (442,385,379) (229,29,418) (3,263,81,555) (13,869,22) (697,899,992) (214,5,912) (18,81,396) (328,95) (1,78,483) (12,38) (199,941) (36,45,673) (3,245,685,694) (9,2,983) (12,237,281) (491,94, 122) (69,477,393) (25,251,44) (1,496, 795) 1,61,395 (11,378, 152) (186,261,38) (431,7,28) 186,261,58 (229,25,813) (12,71) 126, ,821 39,493 77,127 14,6,847 (2,26,15) 57,513,4 (7,589,662) (1,212,251) 2,896,313 (151,462,986) (66,31) (468,683) (54, 765,62) (296,572) (48,41,34) (28,78) 8,59 (84,863,282) (8,456, 149) (621,21) 28,277,49 (177,639,19) (264,746, 189) (264, 746,222) 264,746,222 (229, 127,884) (162,534) (21,532) 21,532 (1,93,661) 1,93,661 (62,887) 62,887 (122,813) 122,813 (22,389,826) 22,389,826 (6, 156,532) (3,259,592, 184) (4,29,371) (3,62,239) (129,745, 12) (1,124,82) 6,467,34 (77,451,911) 9,551,919 (3,377,817) 56,768 (131,54,966) (82,484,946) (128,199) 128,199 (94,616,226) (13,465,17) 989,185 (989,185) (7,941,551) 2,335,939 (2,335,939) FPSC ADJUSTMENTS (5,86,333,855) (3,737,589,816) (262,717,69) (298,69,239) (675, 786, 115) 45,699,87 (68,61,835) 56,768 (4,997, 133,499) (89,2,357) FPSC ADJUSTED 5,67,591,88 22,798,37 1,459,514, ,138,71 424,581,57 83,547, ,968,125 (127,554) (768,59) 3,497,653,49 1,569,938,831 PRO FORMA ADJUSTMENTS (SEE SCHEDULE 3, PAGE 3B OF 3) PRO FORMA SYSTEM PER BOOKS ADJUSTED 57,253,74 5,124,844,954 22,798,37 1,459,514,947 41,222 22,69, ,138,71 424,622,73 15,617,5 22,11,694 35,142,38 689,968,125 (127,554) (768,59) 3,519,763,743 1,65,81,211 (A) THE ADDITION OF EARNINGS FROM AFUDC WOULD INCREASE THE SYSTEM NOI BY 82,62,971 NOTE: (1) REFLECTS A PORTION OF THE DEPRECIATION/DISMANTLEMENT RESERVE SURPLUS ADJUSTMENT PROVIDED UNDER ORDER NO. PSC S-EL THE PROFORMA ADJUSTMENTS ARE NOT NECESSARILY ALL THE PROFORMA THAT WOULD BE MADE IN A BASE RATE FILING.

15 YEAR END RATE OF RETURN INCOME STATEMENT DETAIL OF PRO FORMA ADJUSTMENTS SCHEDULE 3: PAGE 3B OF 3 OPERATION & MAINTENANCE FUEL& REVENUES NET INTERCHANGE OTHER DEPRECIATION & AMORTIZATION TAXES OTHER THAN INCOME DEFERRED INVESTMENT (GAIN)/LOSS NET INCOME TAXES INCOME TAXES TAX CREDIT ON CURRENT (NET) (NET) DISPOSITION EXPENSES INCOME(A) WEATHER NORMALIZATION ADJUSTMENT (1). 57,253,74 41,222 22,69,472 22,11,694 35,142, PROFORMA ADJUSTMENTS 57,253,74 41,222 22,69,472 22,11,694 35,142,38 FOOTNOTES: (1) ADJUSTMENT TO NORMALIZE BASE REVENUES AS A RESULT OF ABNORMAL WEATHER CONDITIONS EXPERIENCED DURING THE PERIOD

16 CAPITAL STRUCTURE FPSC ADJUSTED BASIS SCHEDULE 4: PAGE 1 OF 2 LOWPOINT MIDPOINT HIGH POINT COST WEIGHTED COST WEIGHTED COST WEIGHTED SYSTEM RETAIL ADJUSTMENTS ADJUSTED RATIO RATE COST RATE COST RATE COST AVERAGE PER BOOKS PER BOOKS PRO RATA SPECIFIC RETAIL (%) (%) (%) (%) (%) (%) (%) _1 12 LONG TERM DEBT 7,573,532,465 7,425,919,447 (127,688,777) (456,379,35) 6,841,851, % 4.85% 1.44% 4.85% 1.44% 4.85% 1.44% SHORT TERM DEBT 463,347,9 453,84,558 (8,314,142) 445,49, % 1.82%.4% 1.82%.4% 1.82%.4% PREFERRED STOCK.%.%.%.%.%.%.% COMMON EQUITY 11,15,734,585 1,921,68,562 (2,84,626) 1,72,983, % 9.5% 4.41% 1.5% 4.88% 11.5% 5.34% CUSTOMER DEPOSITS 441,68, ,581,269 (8,9, 199) 433,491,7 1.88% 2.8%.4% 2.8%.4% 2.8%.4% DEFERRED INCOME TAX 5,33,57,481 4,933,973,478 (86,713,845) (2,936,956) 4,646,322, %.%.%.%.%.%.% INVESTMENT TAX CREDITS (1) 17,393,6 167,6,639 (2,87) (165,964,237) 1,76,315.% 7.69%.% 8.3%.% 8.91%.% 24,833,195,831 24,343,47,953 (43,911,677) (823,28,228) 23,89,216,48 1.% 5.92% 6.39% 6.85% LOWPOINT MIDPOINT HIGH POINT COST WEIGHTED COST WEIGHTED COST WEIGHTED SYSTEM RETAIL ADJUSTMENTS ADJUSTED RATIO RATE COST RATE COST RATE COST YEAR END PER BOOKS PER BOOKS PRO RATA SPECIFIC RETAIL (%) (%) (%) (%) (%) (%) (%) _2 LONG TERM DEBT 7,933,461,62 7,786,68,35 (17,73,48) (455,86,113) 7,313,98, % 4.74% 1.43% 4.74% 1.43% 4.74% 1.43% SHORT TERM DEBT 287,441, ,834,342 (68,614) () 281 '153, %.23%.%.23%.%.23%.% PREFERRED STOCK.%.%.%.%.%.%.% COMMON EQUITY 11,387,625,882 11,165,498,776 (26,964,6) () 11,138,534, % 9.5% 4.37% 1.5% 4.83% 11.5% 5.29% CUSTOMER DEPOSITS 423,611, ,513,21 (1,22,761) () 422,49, % 2.12%.4% 2.12%.4% 2.12%.4% DEFERRED INCOME TAX 5,348,212,56 5,247,82,127 (12,187,943) (2,936,956) 5,34,695, %.%.%.%.%.%.% INVESTMENT TAX CREDITS (1) 17,775, ,445,668 (1,923) (162,922,57) 4,512,176.2% 7.61%.% 8.22%.% 8.82%.% 25,551,127,9 25,72,72,42 (58,569,781) (819,665,638) 24,194,485, 1.% 5.85% 6.31% 6.77% NOTE: (1) INVESTMENT TAX CREDITS COST RATES ARE BASED ON THE WEIGHTED AVERAGE COST OF LONG TERM DEBT, PREFERRED STOCK AND COMMON EQUITY. (2) COLUMNS MAY NOT FOOT DUE TO ROUNDING.

17 CAPITAL STRUCTURE PROFORMA ADJUSTED BASIS SCHEDULE 4: PAGE 2 OF 2 LOWPOINT MIDPOINT HIGH POINT COST WEIGHTED COST WEIGHTED COST WEIGHTED FPSC PRO-FORMA PRO-FORMA RATIO RATE COST RATE COST RATE COST AVERAGE ADJUSTED ADJUSTMENTS ADJUSTED (%) (%) (%) (%) (%) (%) (%) LONG TERM DEBT 6,841,851,635 () 6,841,851, % 4.85% 1.44% 4.85% 1.44% 4.85% 1.44% SHORT TERM DEBT 445,49, ,49, % 1.82%.4% 1.82%.4% 1.82%.4% PREFERRED STOCK.%.%.%.%.%.%.% COMMON EQUITY 1,72,983,936 1,72,983, % 9.5% 4.41% 1.5% 4.88% 11.5% 5.34% CUSTOMER DEPOSITS 433,491,7 433,491,7 1.88% 2.8%.4% 2.8%.4% 2.8%.4% DEFERRED INCOME TAX 4,646,322,677 () 4,646,322, %.%.%.%.%.%.% INVESTMENT TAX CREDITS (1) 1,76,315 () 1,76,315.% 7.69%.% 8.3%.% 8.91%.% 23,89,216,48 () 23,89,216,48 1.% 5.92% 6.39% 6.85% LOWPOINT MIDPOINT HIGH POINT COST WEIGHTED COST WEIGHTED COST WEIGHTED FPSC PRO-FORMA PRO-FORMA RATIO RATE COST RATE COST RATE COST YEAR END ADJUSTED ADJUSTMENTS ADJUSTED (%) (%) (%) (%) (%) (%) (%) LONG TERM DEBT 7,313,98,712 7,313,98, % 4.74% 1.43% 4.74% 1.43% 4.74% 1.43% SHORT TERM DEBT 281,153,728 () 281,153, %.23%.%.23%.%.23%.% PREFERRED STOCK.%.%.%.%.%.%.% COMMON EQUITY 11,138,534,716 () 11,138,534, % 9.5% 4.37% 1.5% 4.83% 11.5% 5.29% CUSTOMER DEPOSITS 422,49,44 () 422,49, % 2.12%.4% 2.12%.4% 2.12%.4% DEFERRED INCOME TAX 5,34,695,229 5,34,695, %.%.%.%.%.%.% INVESTMENT TAX CREDITS (1) 4,512,176 () 4,512,176.2% 7.61%.% 8.22%.% 8.82%.% 24,194,485, () 24,194,485, 1.% 5.85% 6.31% 6.77% NOTE: (1) INVESTMENT TAX CREDITS COST RATES ARE BASED ON THE WEIGHTED AVERAGE COST OF LONG TERM DEBT, PREFERRED STOCK AND COMMON EQUITY. (2) COLUMNS MAY NOT FOOT DUE TO ROUNDING.

18 SCHEDULE 5: PAGE 1 OF 2 A. TIMES INTEREST EARNED WITH AFUDC D. PERCENT INTERNALLY GENERATED FUNDS EARNINGS BEFORE INTEREST CHARGES ALLOWANCE FOR BORROWED FUNDS DURING CONSTRUCTION INCOME TAXES INTEREST CHARGES EXCLUDING DEBT AFUDC TIMES INTEREST EARNED WITH AFUDC 1 '758,568, 16 25,752, ,562,89 2,69,883,2 436,662, NET INCOME PREFERRED DIVIDENDS DECLARED COMMON DIVIDENDS AFUDC (DEBT & OTHER) DEPRECIATION AND AMORTIZATION EXPENSE DEFERRED INCOME TAXES INVESTMENT TAX CREDITS OTHER SOURCE/USES OF FUNDS INTERNALLY GENERATED FUNDS 1,347,658,238 (1,7,,) (82,62,971) 1,116,828,95 747,675,369 (127,554) (158,627,588) 1,9,786,443 CONSTRUCTION EXPENDITURES 2,672,946,783 B. TIMES INTEREST EARNED WITHOUT AFUDC PERCENT INTERNALLY GENERATED FUNDS 71.11% EARNINGS BEFORE INTEREST CHARGES ALLOWANCE FOR EQUITY FUNDS USED DURING CONSTRUCTION INCOME TAXES INTEREST CHARGES EXCLUDING DEBT AFUDC 1 '758,568, 16 (56,868,2) 825,562,89 2,527,262,49 436,662,693 E. LONG TERM DEBT AS A PERCENT OF INVESTOR CAPITAL TIMES INTEREST EARNED WITHOUT AFUDC 5.79 F. SHORT TERM DEBT AS A PERCENT OF INVESTOR CAPITAL C. PERCENT AFUDC TO NET INCOME AVAILABLE FOR COMMON STOCKHOLDERS ALLOWANCE FOR BORROWED FUNDS DURING CONSTRUCTION X (1 -INCOME_TAX_RATE) SUB ALLOWANCE FOR EQUITY FUNDS USED DURING CONSTRUCTION 25,752, ,818,639 56,868,2 72,686,84 AVERAGE RETAIL AMOUNTS JURIS ADJUSTED LONG TERM DEBT JURIS ADJUSTED SHORT TERM DEBT JURIS ADJUSTED PREFERRED STOCK JURIS ADJUSTED COMMON STOCK L TO TO INVESTOR FUNDS STD TO INVESTOR FUNDS 6,841,851, ,49,416 1,72,983,936 18,8,325, % 2.47% NET INCOME AVAILABLE FOR COMMON 1,347,658,238 AFUDC AS PER CENT OF NET INCOME 5.39% G. FPSC ADJUSTED AVERAGE JURISDICTIONAL RETURN ON COMMON EQUITY FPSC RATE OF RETURN 6.62% FOOTNOTES CLAUSE OVER/UNDER RECOVERY GAINS ON DISPOSITION OF PROPERTY LONG TERM DEBT RETIREMENTS & REDEMPTIONS INCREASE/DECREASE IN DECOMMISSIONING FUNDS (157,298,23) (1,329,358) (158,627,588) LESS: RECONCILED AVG. RETAIL WEIGHTED COST RATES FOR: LONG TERM DEBT SHORT TERM DEBT PREFERRED STOCK CUSTOMER DEPOSITS TAX CREDITS - WTD COST SUB DIVIDED BY COMMON EQUITY RATIO 1.44%.4%.%.4%.% 1.51% 5.1% 46.43% **INCLUDES EXPENDITURES FOR NUCLEAR FUELS OF: JURISDICTIONAL RETURN ON COMMON EQUITY 1.99%

19 FINANCIAL INTEGRITY INDICATORS SCHEDULE 5: PAGE 2 OF 2 H. PROFORMA ADJUSTED AVERAGE JURISDICTIONAL RETURN ON COMMON EQUITY PRO FORMA RATE OF RETURN 6.77% LESS: AVERAGE RETAIL WEIGHTED COST RATES FOR: LONG TERM DEBT 1.44% SHORT TERM DEBT.4% PREFERRED STOCK.% CUSTOMER DEPOSITS.4% TAX CREDITS- WTD COST.% SUB 1.51% PRO FORMA ROR LESS NON EQUITY COST 5.26% PRO FORMA COMMON EQUITY RATIO 46.43% PRO FORMA RETURN ON COMMON EQUITY 11.32%