Loading...
HomeMy Public PortalAboutFPL Docket No 20200071-EI Review of 2020-2029 Storm Protection Plan.pdfChristopher T. Wright Senior Attorney - Regulatory Florida Power & Light Company 700 Universe Blvd Juno Beach, FL 33408-0420 Phone: (561) 691-7144 E-mail : Christoper.Wright@fpl.com Florida Authorized House Counsel; Admitted in Pennsylvania April10,2020 VA ELECTRONIC FILING Mr. Adam Teitzman Division of the Commission Clerk and Administrative Services Florida Public Service Commission 2540 Shumard Oak Blvd. Tallahassee, FL 32399 -0850 Re: Docket No. 2020007L-EI Review of 2020-2029 Storm Protection PIan pursuant to Rule 25-6.030, F.A.C., Florida Power & Lisht Comnanv Dear Mr. Teitzman Enclosed for electronic filing in the above-referenced docket, please find Florida Power & Light Company's Petition for Approval of the 2020-2029 Storm Protection Plan pursuant to Rule 25- 6.030, F.A.C., together with the Direct Testimony of FPL witness Michael Jano and Exhibit MJ- 1. Copies of this filing will be provided as indicated on the enclosed Certificate of Service. If you or your staff have any question regarding this filing, please contact me at (561) 691-7144. Respectfully submitted, s/Christopher Wrisht Christopher T. Wright Authorized House Counsel No. 1007055 Enclosure FPL, Florida Power & Light Company 700 Universe Boulevard, Juno Beach, FL 33408 Page | 1 BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION Review of 2020-2029 Storm Protection Plan pursuant to Rule 25-6.030, F.A.C., Florida Power & Light Company Docket No. 2020007L-EI Filed: April 10,2020 PETITION OF FLORIDA POWER & LIGHT COMPANY F'OR APPROVAL OF THE 9 STORM PROTECTION PLAN I. INTRODUCTION Florida Power & Light Company ("FPL" or the "Company") hereby files this petition (the "Petition") requesting that the Florida Public Service Commission ("Commission") approve the proposed Transmission and Distribution ("T&D") Storm Protection Plan for the years 2020-2029 (hereinafter, the "SPP") pursuant to Section 366.96, Florida Statutes ("F.S.") and Rule 25-6.030, Florida Administrative Code ("F.A.C."). FPL's SPP is, in large part,acontinuation and expansion of its previously approved and successful storm hardening and storm preparedness programs. FPL submits that the storm hardening and storm preparedness programs included in its SPP are appropriate and necessary to achieve the legislative objectives of Section366.96, F.S., to protect and strengthen T&D infrastructure from extreme weather conditions, reduce outage times and restoration costs, and improve overall service reliability to customers.l In support of this Petition, FPL states as follows: 1. The name and address of the Petitioner is: Florida Power & Light Company 700 Universe Blvd Juno Beach, FL 33408 1 The recovery of costs associated with the SPP, as well as the actual and projected costs to be included in FPL's Storm Protection Plan Cost Recovery Clause, will be addressed in subsequent and separate Storm Protection Plan Cost Recovery Clause dockets pursuant to Rule 25-6.031, F.A.C. The Commission has opened Docket No. 20200092-El to address Storm Protection Plan Cost Recovery Clause petitions to be filed the third quarter of 2020. 1 2. FPL is a corporation organized and existing under the laws of the State of Florida and is an electric utility as defined in Sections 366.02(2) and366.96,F.S. FPLprovides generation, transmission, and distribution service to nearly five million retail customer accounts. 3. Any pleading, motion, notice, order or other document required to be served upon the petitioner or filed by any party to this proceeding should be served upon all of the following individuals: John T. Burnett Vice President and Deputy General Counsel Christopher T. Wright Senior Attorney Florida Power & Light Company 700 Universe Boulevard Juno Beach, FL 33408-0420 Phone: 561-691-7144 Fax:561-691-7135 Email: i ohn.t. burnett@fol. com Email : christopher.wri ght@fpl.com 4. The Commission has jurisdiction pursuant to Section 366.96, F.S., and Rule 25- 6.030, F.A.C. 5. This Petition is being filed consistent with Rule 28-106.201, F.A.C. The agency affected is the Commission, located at25 |Shumard Oak Boulevard, Tallahassee, Florid a32399. This case does not involve reversal or modification of an agency decision or an agency's proposed action. Therefore,subparagraph(c)andportionsofsubparagraphs(b),(e),(0and(g)ofsubsection (2) of Rule 28-106.201, F.A.C., are not applicable to this Petition. ln compliance with subparagraph (d) of Rule28-106.201, F.A.C., FPL states that it is not known which, if any, of the issues of material fact set forth in the body of this Petition may be disputed by any others who may plan to participate in this proceeding. The discussion below demonstrates how the petitioner's substantial interests will be affected by the agency determination. 2 Kenneth A. Hoffinan Vice President, Regulatory Affairs Florida Power & Light Company 215 South Monroe Street, Suite 810 Tallahassee,FL 3230I Phone: 850-521-3919 Fax: 850-521-3939 Email : ken.hoffman@,fpl.com il. BACKGROUND OVERVIEW 6. On June 27,2019, the Governor of Florida signed CS/CS/CS/SB 796 addressing Storm Protection Plan Cost Recovery, which was codified in Section 366.96, F.S. Therein, the Florida Legislature found that it was in the State's interest to "strengthen electric utility infrastructure to withstand extreme weather conditions by promoting the overhead hardening of electrical distribution and transmission facilities, the undergrounding of certain electrical distribution lines, and vegetation management," and for each electric utility to "mitigate restoration costs and outage times to utility customers when developing transmission and distribution storm protection plans." Section 366.96(I), F.S. The Florida Legislature directed the Commission to adopt rules to specify the elements that must be included in each utility's SPP. Sectio n 366.96(l), F.S. 7. Rule 25-6.030, F.A.C., requires each utility to file an updated SPP at least every three years that covers the utility's immediate ten-year planning period. Rule 25-6.030, F.A.C., also specifies the information to be included in each utility's SPP. Consistent with these requirements, FPL is herein submitting its SPP for the ten-year period of 2020-2029, which is provided as Exhibit MJ-1. 8. FPL's SPP is largely a continuation and expansion of its existing storm hardening and storm preparedness programs, which were most recently approved in FPL's 2019-2021Storm Hardening Plan.2 These existing hardening and storm preparedness programs have already demonstrated that they have and will continue to increase T&D infrastructure resiliency, reduce restoration times, and reduce restoration costs when FPL's system is impacted by extreme weather 2 See In re: Petitionfor Approval of Florida Power & Light Company's 2019-2021 Storm Hardening Plan pursuant to Rule 25-6.0342, F.A.C.,DocketNo.20180144-EI, OrderNo. PSC-2019-0364-CO-EI(F1a. PSC Aug.27,2019) (making Order No. PSC-2019-0301-PAA-Ei issued on July 29,2019, effective and final). aJ events. FPL performed an analysis of Hurricanes Matthew and Irma that indicated the restoration construction man-hours ("CMH"), days to restore, and storm restoration costs for these storms would have been significantly higher without FPL's storm hardening programs.3 9. While FPL's nation-leading initiatives have made significant progress toward strengthening FPL's infrastructure, FPL must continue its T&D storm hardening and storm preparedness plans and initiatives. Storms remain a constant threat and Florida is the most hurricane-prone state in the nation. With the significant coast-line exposure of FPL's system, and the fact that the majority of FPL's customers live within twenty miles of the coast, a robust storm protection plan is critical to maintaining and improving grid resiliency and storm restoration as contemplated by the Legislature in Section 366.96. 10. As part of its SPP, FPL will continue the previously approved storm hardening and storm preparedness programs to achieve the legislative objectives of promoting the overhead hardening of T&D facilities, the undergrounding of distribution lines, and vegetation management to reduce restoration costs and outage times to customers and improve the overall service reliability for customers. In addition, FPL proposes to implement a new substation storm surge/flood mitigation program. FPL submits that the SPP will continue and expand the benefits of hardening, including improved day-to-day reliability, to all customers throughout FPL's system. 1 1. Submitted herewith and in support of FPL's SPP is the Direct Testimony of Michael Jarro and Exhibit MJ-I, which includes FPL's SPP for the period of 2020-2029 and supporting schedules. 3 ,See FPL's Third Supplemental Response to StafPs First Data Request No. 29 ("Third Supplemental Amended") in Docket No. 20 17021 5-EI, which is provided as Appendix A to Exhibit MJ- 1 . 4 III. STORM PROTECTION PLAN A. Description of the SPP Programs 12. FPL's SPP is largely a continuation and expansion of the following previously approved storm hardening and storm preparedness programs: Pole Inspections - Distribution Program . Structures/Other Equipment Inspections - Transmission Program Feeder Hardening (EWL) - Distribution Program Lateral Hardening (Undergrounding) - Distribution Program Wood Structures Hardening (Replacing) - Transmission Program Vegetation Management - Distribution Program Vegetation Management - Transmission Program In addition, FPL proposes to implement a new Substation Storm Surge/Flood Mitigation -Program to protect T&D substations and equipment that are susceptible to storm surge or flooding during extreme weather events. These SPP programs are summarized below and a detailed description of each SPP program, consistent with Rule 25-6.030(3Xd), F.A.C., is provided in Section IV of Exhibit MJ-1. 13. The Pole Inspection - Distribution Program will continue FPL's existing Commission-approved distribution pole inspection program, which is an eight-year pole inspection cycle for all distribution poles that targets approximately 1/8 of the system annually (the actual number of poles inspected can vary somewhat from year to year). With approximately 1.2 million distribution poles as of year-end 20i9, FPL expects to inspect approximately 150,000 poles annually. The estimated 2020-2029 annual average cost for the Pole lnspection - Distribution Program is approximately $61 million per year, which is consistent with historical 5 costs for the existing distribution pole inspection program.a A detailed description of the Pole Inspection - Distribution Program is provided in Section IV(A) of Exhibit MJ-1. 14. The Structures/Other Equipment Inspections - Transmission Program will continue FPL's current Commission-approved transmission inspection program which requires: (a) transmission circuits and substations and all associated hardware to be inspected on a six-year cycle; (b) wood structures to be visually inspected from the ground on an annual basis and climbing or bucket truck inspections to be conducted on a six-year cycle; and (c) steel and concrete structures to be visually inspected on an annual basis and climbing or bucket truck inspections to be conducted on a ten-year cycle. FPL expects to inspect approximately 68,000 transmission structures annually. The estimated 2020-2029 annual average cost for the Structures/Other Equipment Inspections - Transmission Program is approximately $50 million per year, which is consistent with historical costs for the existing transmission inspection program.s A detailed description of the Structures/Other Equipment Inspections - Transmission Program is provided in Section IV(B) of Exhibit MJ-1. 15. The Feeder Hardening (EWL) - Distribution Program will continue FPL's existing Commission-approved approach to harden existing feeders and certain critical distribution poles, as well as FPL's initiative to design and construct new pole lines and major planned work to meet the extreme wind loading ("EWL") criteria set forth in the National Electric Safety Code. FPL a Note, the2020-2029 program costs shown above are projected costs estimated as of the time of this filing. Subsequent projected and actual costs could vary by as much as 10%oto l|Yo. The annual projected costs, actual/estimated costs, actuals costs, and true-up of actual costs to be included in FPL's Storm Protection Plan Cost Recovery Clause will all be addressed in subsequent and separate Storm Protection Plan Cost Recovery Clause filings pursuant to Rule 25-6.031, F.A.C. The Commission has opened Docket No. 20200092-EI to address Storm Protection Plan Cost Recovery Clause petitions to be filed the third quarter of2020. 5 See footnote 4. 6 expects to harden approximately 280-350 feeders annually, with 100% of FPL's feeders expected to be hardened or underground by year-end 2024 and with the final costs of the program to be incurred in 2025. The estimated average annual cost for the Feeder Hardening (EWL) - Distribution Program to be incuned over the period of 2020-2025 is approximately $534 million per year, which is consistent with historical costs for the existing distribution feeder hardening program.6 A detailed description of the Feeder Hardening (EWL) - Distribution Program is provided in Section IV(C) of Exhibit MJ-1. 16. The Lateral Hardening (Undergrounding) - Distribution Program includes completing FPL's existing three-year Storm Secure Underground Program Pilot ("SSUP Pilot") in 2020 andexpanding the application of the SSUP to the implementation of the system-wide Lateral Hardening (Undergrounding) - Distribution Program forthe period of 2021-2029. The SSUP Pilot is a program that targets certain overhead laterals that were impacted by recent storms and have a history ofvegetation-related outages and other reliability issues for conversion from overhead to underground. As part of its SPP, FPL will incorporate, continue, and expand the SSUP during the ten-year SPP period to provide the benefits of underground lateral hardening throughout its system. After completing the SSUP Pilot in 2020,FPL estimates that it will convert approximately 300- 700 laterals annually in202l-2023 and approximately 800-900 laterals annually in2024-2029. The estimated 2020-2029 annual average cost for the Lateral Hardening (Undergrounding) - Distribution Program is approximately $510 million per year.7 A detailed description of the Lateral Hardening (Undergrounding) - Distribution Program is provided in Section IV(D) of Exhibit MJ-1. 6,See footnote 4. 7 See footnote 4. 7 17. The Wood Structures Hardening (Replacing) - Transmission Program is a continuation of FPL's existing transmission hardening program to replace all wood transmission structures with steel or concrete structures. As of year-end 2019, 96yo of FPL's transmission structures, system-wide, were steel or concrete, with less than 2,900 (or 4%) wood structures remaining to be replaced. FPL expects to replace the 2,900 wood transmission structures remaining on its system by year-end2022. The estimated2020-2022 annual average cost for the Wood Structure Hardening (Replacing) - Transmission Program is approximately $39 million per year, which is a decrease from the historical costs for the existing transmission hardening program.8 A detailed description of the Wood Structure Hardening (Replacing) - Transmission Program is provided in Section IV(E) of Exhibit MJ-1. 18. The Substation Storm Surge/Flood Mitigation Program is the only new storm hardening program that FPL proposes to implement as part of its SPP. The Substation Storm Surge/Flood Mitigation Program will implement measures to protect certain T&D substations and equipment that are susceptible to storm surge or flooding due to extreme weather events. Specifically, FPL will raise the equipment at certain substations above the flood level and construct flood protection walls around other substations that are susceptible to storm surge or flooding during extreme weather events. The Storm Surge/Flood Mitigation - Transmission and Distribution Program will reduce customer outages due to flooding and the need to de-energize substations that are impacted by storm surge or flooding, as well as reduce flood damage and restoration costs at these targeted substations. At this time, FPL has identified between 8-10 substations where it initially plans to implement storm surge/flood mitigation measures over the 8 8,See footnote 4 next three years (2020-2022). The estimated 2020-2022 annual average cost for the new Substation Storm Surge/Flood Mitigation Program is approximately $8 million per year.e A detailed description of the Substation Storm Surge/Flood Mitigation Program is provided in Section IV(F) of Exhibit MJ-1. 19. The Vegetation Management - Distribution Program is a continuation of FPL's existing, Commission-approved distribution vegetation management program. FPL's currently approved distribution vegetation program, includes the following system-wide vegetation inspection and management activities: three-year cycle for feeders; mid-year cycle targeted trimming for certain feeders; six-year cycle for laterals; and continued education of customers through its Right Tree, Right Place initiative. FPL plans to inspect and maintain, on average, approximately 15,200 miles annually, which is consistent with the historic miles inspected and trimmed annually. The estimat ed2020-2029 averuge annual cost for the Vegetation Management - Distribution Program is approximately $60 million per year, which is consistent with historical costs for the existing distribution vegetation management program.l0 A detailed description of the Vegetation Management - Distribution Program is provided in Section IV(G)of Exhibit MJ-1. 20. The Vegetation Management - Transmission Program is a continuation of FPL's existing transmission vegetation management program, which includes visual and aerial inspections of all transmission line conidors, LiDAR inspections of North American Electric Reliability Corporation transmission line corridors, developing and executing annual work plans to address identified vegetation conditions, and identifying and addressing priority and hazard tree conditions prior to and during storm season. FPL plans to inspect and trim, on average, e See footnote 4. lo See footnote 4. 9 approximately 7,000 miles of transmission lines annually, which is consistent with the historic miles inspected and trimmed annually. The estimated 2020-2029 average annual cost for the Vegetation Management - Transmission Program is approximately $10 million per year, which is consistent with historical costs for the existing transmission vegetation management program.l l A detailed description of the Vegetation Management- Transmission Program is provided in Section IV(H) of Exhibit MJ-l. B. Additional Details for First Three Years of the SPP 21. The following additional project level information required by Rule 25- 6.030(3)(e)(1), F.A.C., for the first year of the SPP (2020) is provided in Appendix E to Exhibit MJ-l: (a) the actual or estimated construction start and completion dates; (b) a description of the affected existing facilities, including number and type(s) of customers served, historic service reliability performance during extreme weather conditions, and how this data was used to prioritize the storm protection project; and (c) a cost estimate including capital and operating expenses. A description of the criteria used to select and prioritize storm protection projects is included in the description of each SPP program provided in Section IV of Exhibit MJ-1. 22. Pursuant to Rule 25-6.030(3)(e)(2), F.A.C., FPL has also provided the estimated number and costs of projects under each specific program for the second and third yearc (2021- 2022) of the SPP. This information is provided in Appendix C to Exhibit MJ-l. 23. The following additional information required by Rule 25-6.030(3)(f), F.A.C., for the first three years (2020-2022) of the vegetation management activities under the SPP is provided in Sections IV(G) and IV(H) of Exhibit MJ-1 and Appendix C to Exhibit MJ-1: (a) the projected frequency (trim cycle); (b) the projected miles of affected transmission and distribution overhead 11 ,See footnote 4. 10 facilities; and (c) the estimated annual labor and equipment costs for both utility and contractor personnel. Descriptions of how the vegetation management activities will reduce outage times and restoration costs due to extreme weather conditions are provided in Sections IV(G) and IV(H) of Exhibit MJ-1. C. Estimated Revenue Requirements and Rate Impacts 24. Pursuant to Rule 25-6.030(3)(9), F.A.C., the estimated annual jurisdictional revenue requirements of FPL's SPP for the ten-year period of 2020-2029 are provided in Section VI of Exhibit MJ-l. While FPL has provided estimated costs by program as of the time of this filing and associated total revenue requirements in its SPP, consistent with the requirements of Rule 25-6.030, F.A.C., subsequent projected and actual program costs submitted for cost recovery through the Storm Protection Plan Cost Recovery Clause (per Rule 25-6.031, F.A.C.,) could vary by as much as l0-I5o/o, which variations would also impact the associated estimated revenue requirements and rate impacts. 25. FPL anticipates the programs included in the SPP will have zero bill impacts on customer bills during the first year of the SPP and only minimal bill increases for years two and three of the SPP. An estimate of hypothetical overall rate impacts for the first three years of the SPP (2020-2022) based on the total program costs reflected in this filing, without regard for the fact that FPL remains under a general base rate freeze pursuant to a Commission-approved settlement agreement through December 31,202I, are provided in Section VII of Exhibit MJ-1. The annual jurisdictional revenue requirements and the estimated rate impacts are based on the total estimated costs, as of the time of this filing, for all programs included in the SPP regardless of whether those costs will be recovered in FPL's Storm Protection Plan Cost Recovery Clause or through base rates. In addition, under FPL's Commission-approved rate case settlement 11 agreement, any incremental base rate adjustment may not take place until FPL's base rates are established by the Commission in FPL's next base rate proceeding." 26. FPL is not seeking Commission approval, through this petition, to recover any of the estimated costs associated with the SPP in this filing. The projected costs, actuallestimated costs, actual costs, and true-up of actual costs to be included in FPL's Storm Protection Plan Cost Recovery Clause, including whether these costs are included in current base rates, will all be addressed in subsequent and separate Storm Protection Plan Cost Recovery Clause filings pursuant to Rule 25-6.03I, F.A.C. The Commission has opened DocketNo. 20200092-EI to address Storm Protection Plan Cost Recovery Clause petitions to be filed the third quarter of 2020. D. FPL's SPP is in the Public Interest and Should Be Approved 27. Sections 366.96(4)-(5), F.S., provide that the Commission shall review each utility's SPP and, within 180 days from filing, determine whether the SPP is in the public interest.l3 28. As explained above, the programs included in the SPP are largely a continuation and expansion ofFPL's already successful and ongoing storm hardening and storm preparedness programs previously approved by the Commission, as well as a new storm hardening program to tz See In re: Petitionfor rate inuease by Florida Power & Light Company, Docket No. 160021-EI, Order No. PSC-16-0560-AS-EI (Fla. PSC Dec. 15, 2016). 13 In reaching this determination, the Florida Legislature has directed the Commission to consider the following: (a) The extent to which the plan is expected to reduce restoration costs and outage times associated with extreme weather events and enhance reliability, including whether the plan prioritizes areas of lower reliability performance. (b) The extent to which storm protection of transmission and distribution infrastructure is feasible, reasonable, or practical in certain areas of the utility's seruice territory, including, but not limited to, flood zones and rural areas. (c) The estimated costs and benefits to the utility and its customers of making the improvements proposed in the plan. (d) The estimated annual rate impact resulting from implementation of the plan during the first 3 years addressed in the plan. See Section 366.96(4), F.S. 12 protect T&D substations and equipment from storm surge and flooding due to extreme weather events. These SPP programs will continue to provide increased T&D infrastructure resiliency, reduced restoration times, and reduced restoration costs when FPL's system is impacted by extreme weather events. 29. InDocketNo.20170215-EU,the Commissionreviewedthe electricutilities' storm hardening and storm preparedness programs and found the following: . Florida's aggressive storm hardening programs are working; The length of outages was reduced markedly from the 2004-2005 storm season; Hardened overhead distribution facilities performed better than non- hardened facilities; Underground facilities performed much better compared to overhead facilities; and The primary causes ofpower outages came from outside the utilities' rights- of-way including falling trees, displaced vegetation, and other debris. See Review of Florida's Electric Utility Hurricane Preparedness and Restoration Actions 2018, Docket No. 20170215-EU (Iuly 24,2018).14 30. The estimate of cumulative reductions in restoration costs and outage times associated with the SPP will be directly affected by how frequently storms hit FPL's service territory. Of course, no one is in a position to know for sure how frequently FPL's service territory will be impacted by strong huricanes. However, consistent with historical results, FPL expects that the storm hardening and storm preparedness programs included in its SPP will result in a reduction in storm as well as non-storm (day-to-day) restoration costs. ,See FPL's Third Supplemental Response to Staff s First Data Request No. 29 ("Third Supplemental Amended") in ta Available ar http://www.psc.state.fl.us/library/filings/2018/04847-2018/04847-2018.pdf. 13 Docket No. 20170215-EI, which is provided as Appendix A to Exhibit MJ-1. 31. FPL's storm hardening and storm preparedness programs have also provided and will continue to provide increased levels of day-to-day reliability. For example, FPL has previously submitted reports to the Commission that show hardened feeders have performed approximately 40%o better (i.e., fewer outages) on a day-to-day basis than non-hardened feeders. 32. A detailed summary of the benefits of FPL's SPP is provided in Section II of Exhibit MJ-1, and the benefits and costs associated with each program is provided in Section IV of Exhibit MJ-1. 33. FPL's SPP meets the objectives of Section366.96, F.S., satisfies the requirements of Rule 25-6.030, F.A.C., is in the public interest, and should be approved. IV. CONCLUSION 34. As explained above and in further detail in Exhibit MJ-l and the supporting Direct Testimony of FPL witness Michael Jarro, FPL's SPP provides a systematic approach to achieve the legislative objectives of reducing restoration costs and outage times associated with extreme weather events and enhancing reliability. FPL's SPP appropriately and effectively maintains and builds on FPL's commitment to provide safe and reliable electric service to customers, consistent with our customers' needs and expectations . 14 WHEREFORE, FPL respectfully requests thatthe Commission find FPL's proposed SPP, provided as Exhibit MJ-l, is in the public interest and approve the SPP for the years2020-2029. Respectfully submitted this 1Oth day of April,2020, John T. Bumett Vice President and Deputy General Counsel Christopher T. Wright Senior Attorney Florida Power & Light Company 700 Universe Boulevard Juno Beach, FL 33408-0420 Phone: 561-691-7144 Fax: 561-691-7135 Email : j ohn.t.burnett@fpl.com Email : christopher.wri ght@fpl.com By:s/Christonher T. Wrisht Christopher T. Wright Fla. Auth. House Counsel No. 1007055 15 CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and corect copy of Florida Power & Light Company's Petition for Approval of the 2020-2029 Storm Protection Plan in Docket No. 2020007L-EI, along with the Direct Testimony of Michael Jamo and Exhibit MJ-l, has been furnished by Electronic Mail to the following parties of record this 1Oth day of April,2020: s/ Christopher T. Wrisht Christopher T. Wright Fla. Auth. House Counsel No. 1007055 Fla. Auth. House Counsel No. 1017875 Florida Power & Light Company 700 Universe Boulevard (JB/LAW) Juno Beach, Florida 33408 Attorneyfor Florida Power & Light Company Charles Murphy, Esquire Rachael Dziechciarz, Esquire Florida Public Service Commission 2540 Shumard Oak Boulevard Tallahassee,FL 32399 rdziechc@psc. state.fl .us cmurphy@psc.state.fl .us Office of Public Counsel J.R.Kelly Patricia A. Christensen c/o The Florida Legislature 111 West Madison Street, Room 812 Tallahassee, FL 32399 -l 400 kelly jr@le g.state.fl .us christensen.patty@ le g. state.fl .us BEF'ORE THE FLORIDA PUBLIC SERVICE COMMISSION FLORIDA POWER & LIGHT COMPANY 2020.2029 STORM PROTECTION PLAN DOCKET NO. 202000071-Er DIRECT TESTIMONY OF MICHAEL JARRO APRrL 10,2020 1 TABLE OF CONTENTS I. INTRODUCTION 3 II. ovERvIEW OF FPL'S SPP............ .....................4 IIL DESCRIPTION OF EACH SPPPROGRAM................ ....,.....7 IV. ADDITIONAL DETAILS F'OR F'IRST THREE YEARS OF THE SPP ....................16 v. CONCLUSrON........... ......................18 EXHIBIT MJ-l - FPL's 2020-2029 Storm Protection Plan 2 I 2 J 4 5 6 7 8 9 10 11 l2 13 l4 15 t6 17 18 t9 20 2T 22 23 24 25 a. A. a. A. I. INTRODUCTION Please state your name and business address. My name is Michael Jarro. My business address is Florida Power & Lighl Company, 15430 Endeavor Drive, Jupiter, FL, 3347 8. By whom are you employed and what is your position? I am employed by Florida Power & Light Company ("FPL" or the "Company") as the Vice President of Distribution Operations. Please describe your duties and responsibilities in that position. My current responsibilities include the operation and maintenance of FPL's approximately 68,000 miles of distribution infrastructure, including 42,000 miles of overhead and 26,000 miles of underground, that safely, reliably, and efficiently deliver electricity to more than five million customers in FPL's service territory covering approximately 28,000 square miles. I am responsible for the oversight of more than 1,600 employees in a control center and sixteen management areas. The functions and operations within my area are quite diverse and include distribution operations, major projects and construction services, power quality, meteorology, and other operations that together help provide the highest level of service to FPL's customers. Please describe your educational background and professional experience. I graduated from the University of Miami with a Bachelor of Science Degree in Mechanical Engineering and Florida International University with a Master of Business Administration. I joined FPL in 199'7 and have held several leadership positions in distribution operations and customer service, including serving as distribution reliability manager, manager of distribution operations for south Miami-Dade area, control center general manager, director of network operations, senior director of customer strategy and analytics, senior director of power delivery central maintenance and construction, and vice-president of transmission and substations. What is the purpose of your direct testimony? a. A. a. A. 3 a. 1A. 2 aJ 4 5 6 7 8 9 10 a. 11 A. 12 13 t4 a. 15 A. l6 I7 18 I9 20 2I 22 23 24 25 26 The purpose of my testimony is to present and provide an overview of FPL's proposed 2020- 2029 Storm Protection Plan ("SPP" or "the Plan"), which is attached to my direct testimony as Exhibit MJ-1, and demonstrate that FPL's SPP is in compliance with Section 366.96, Florida Statutes ("F.S.") and Rule 25-6.030, Florida Administrative Code ("F.A.C."). I will provide a description of each storm protection program included in FPL's SPP and how it is expected to reduce restoration costs and outage times. I will also describe the estimated start/completion dates, estimated costs, and criteria used to select and prioritize the projects in each program. Finally, I will describe the additional detail provided for the first three years of FPL's SPP pursuant to Rule 25-6.030(3Xe)-(0, (h), and (i), F.A.C. Are you sponsoring any exhibits in this case? Yes. I am sponsoring Exhibit MJ-1 - FPL's Storm Protection Plan 2A20-2029. U. OVERVIEW OF FPL'S SPP What is the purpose of FPL's SPP? On June 27,2019, the Governor of Florida signed into law the Storm Protection Plan Cost Recovery legislation, which was codified in Section 366.96, F.S. As part of the new law, the Florida Legislature expressly found that it is in the State's interest: (a) "to strengthen electric utility infrastructure to withstand extreme weather conditions by promoting the overhead hardening of electrical transmission and distribution facilities, the undergrounding of certain electrical distribution lines, and vegetation management;" and (b) "for each electric utility to mitigate restoration costs and outage times to utility customers when developing transmission and distribution storm protection plans." ,See Sections 366.96(l)(c)-(d), F.S. Based on these findings, the Florida Legislature directed each electric utility to file a SPP with the Florida Public Service Commission ("Commission") covering the immediate ten (10) year planning period. ,lee Section 366.96(3), F.S. Consistent with this legislative requirement, FPL is submitting its SPP for the ten-year period of 2020-2029. 4 1 2 aJ 4 5 6 7 8 9 10 ll T2 13 t4 l5 t6 l7 18 t9 20 2T 22 23 24 a. A. FPL's SPP is a systematic approach to achieve the legislative objectives of reducing restoration costs and outage times associated with extreme weather events and enhancing reliability. As required by Rule 25-6.030, F.A.C., FPL's SPP includes, among other things, a description of each proposed storm protection program, including: (a) how each program will enhance the existing system to reduce restoration costs and outage times; (b) applicable start and completion dates for each program; (c) a cost estimate for each program; (d) a comparison of the costs and benefits for each program; and (e) a description ofhow each program is prioritized. The SPP also provides an estimate of the annual jurisdictional revenue requirement for each year of the SPP and additional details on each program for the first three years ofthe SPP (2020-2022), including estimated rate impacts. What programs are included in FPL's SPP? FPL's SPP is, in large part, a continuation and expansion of its previously approved storm hardening and storm preparedness programs, and includes the following SPP programs: o Pole Inspections - Distribution Program r Structures/Other Equipment Inspections - Transmission Program r Feeder Hardening - Distribution Program r Lateral Hardening (Undergrounding) - Distribution Program o Wood Structures Hardening (Replacing) - Transmission Program r Vegetation Management - Distribution Program . Vegetation Management - Transmission Program In addition, FPL proposes to implement a new Substation Storm Surge/Flood Mitigation Program to protect T&D substations and equipment that are susceptible to storm surge or flooding during extreme weather events. 5 1 2 J 4 5 6 7 8 9 i0 11 t2 13 t4 15 16 t7 18 t9 20 2t 22 23 24 25 26 a. A. With the exception of the new storm surge/flood mitigation program, the majority of these programs have been in place since 2007. As demonstrated by recent storm events, these programs have been successful in reducing restoration costs and outage times following major storrns, as well as improving day-to-day reliability. FPL submits that continuing these previously approved storm hardening and storm preparedness programs in the SPP, together with the new storm surge/flood mitigation program, is appropriate and necessary to meet the requirements of Section 366.96, F.S., and Rule 25-6.030, F.A.C. These programs will address the expectations of FPL's customers and other stakeholders for increased storm resiliency, and will result in fewer outages, reduced restoration costs, and prompt service restoration. The SPP will continue and expand the benefits of hardening, including improved day-to-day reliability, to all customers throughout FPL's system. Please provide an overview of the benefits of FPL's SPP. The major benefit of FPL's SPP is to provide increased resiliency and faster restoration to the electric infrastructure that FPL's five million customers and Florida's economy rely on for their electricity needs. Safe and reliable electric service is essential to the life, health, and safety of the public, and has become a critical component of modem life. Florida remains the most hurricane-prone state in the nation and, with the significant coast-line exposure of FPL's system and the fact that the vast majority of FPL's customers live within 20 miles of the coast, a robust storm protection plan is critical to maintaining and improving grid resiliency and storm restoration as contemplated by the Legislature in Section 366.96. FPL's SPP programs have already demonstrated that they have provided and will continue to provide increased Transmission and Distribution ("T&D") infrastructure resiliency, reduced restoration time, and reduced restoration cost when FPL is impacted by extreme weather events. FPL performed an analysis of Hurricanes Matthew and Irma that indicated the restoration construction man-hours ("CMH"), days to restore, and storm restoration costs for 6 I 2 J 4 5 6 7 8 9 10 11 t2 13 l4 15 l6 t7 18 t9 20 2T 22 23 24 25 26 a. A. these storms would have been significantly greater without FPL's storm hardening programs. In the case of Hurricane Matthew, FPL estimated that without hardening, restoration would have taken two additional days (50% longer), and resulted in additional restoration costs of $105 million (36%higher than actual costs). Inthe case of Hurricane Irma, FPL estimated that without hardening, restoration would have taken four additional days (40% longer), and resulted in additional restoration costs of $496 million (4}%higher than actual costs). A copy of FPL's analysis is provided in Appendix A to Exhibit MJ-l. A detailed summary of the benefits of FPL's SPP is provided in Section II of the SPP, and the benefits ofeach program are provided in Section IV ofthe SPP. Does FPL's SPP address recovery of the costs associated with the SPP? No. FPL anticipates the programs included in the SPP will have zero bill impacts on customer bills during the first year of the SPP and only minimal bill increases for years two and three of the SPP. However, the recovery of the actual costs associated with the SPP, as well as the costs to be included in FPL's Storm Protection Plan Cost Recovery Clause, will be addressed in subsequent and separate Storm Protection Plan Cost Recovery Clause dockets pursuant to Rule 25-6.031, F.A.C. The Commission has opened Docket No. 20200092-EI to address Storm Protection Plan Cost Recovery Clause petitions to be filed the third quarter of 2020. UI. DESCRIPTION OF EACH SPP PROGRAM Has FPL provided the information required by Rule 25-6.030(3Xd) for each program included in its SPP? Yes. FPL's SPP provides the information required by the Rule 25-6.030(3Xd) for each program. If applicable, each program description included in FPL's SPP includes: (1) a description of how each program is designed to enhance FPL's existing transmission and distribution facilities including an estimate of the resulting reduction in outage times and 7 a. A. 1 2 J 4 5 6 7 8 9 10 11 t2 l3 l4 15 t6 l7 l8 19 20 2t 22 23 24 25 26 O. A restoration costs due to extreme weather conditions; (2) identification ofthe actual or estimated start and completion dates of the program; (3) a cost estimate including capital and operating expenses; (4) a comparison of the costs and the benefits; and (5) a description of the criteria used to select and prioritize proposed storm protection programs. Each of the above listed descriptions is provided in Section IV of FPL's SPP. Below, I will provide a brief overview of each program included in FPL's SPP. Please provide a summary of FPL's Pole Inspection - Distribution Program included in the SPP. The Pole Inspection - Distribution Program included in the SPP is a continuation of FPL's existing Commission-approved distribution pole inspection program. FPL's existing, Commission-approved distribution pole inspection program is an eight-year pole inspection cycle for all distribution poles that targets approximately 1/8 of the system annually (the actual number of poles inspected can vary somewhat from year to year). To ensure inspection coverage throughout its service territory, FPL established nine inspection zones (based on FPL's management areas and pole population) and annually performs pole inspections of approximately 1/8 of the distribution poles in each of these zones, as well as any necessary remediation as a result of such inspections. As explained in the SPP, recent storm events demonstrate that FPL's existing distribution pole inspection program has contributed to the overall improvement in distribution pole performance during storms, resulting in reductions in storm damage to poles, days to restore, and storm restoration costs. With approximately 1.2 million distribution poles as of year-end 2019,FPL expects to inspect approximately 150,000 poles annually (spread throughout its nine inspection zones) during the 2020-2029 SPP period. The total estimated costs for the Pole Inspection - Distribution Program for the ten-year period of 2020-2029 is $605 million with an annual average cost of approximately $61 million, which is consistent with historical costs for the existing distribution 8 I 2 aJ 4 5 6 7 8 9 10 11 12 13 t4 l5 16 l7 18 T9 20 a. A pole inspection program.l A detailed description of the Pole lnspection - Distribution Program is provided in Section IV(A) of FPL's SPP. Please provide a summary of FPL's Structures/Other Equipment Inspections - Transmission Program included in the SPP. The Structures/Other Equipment Inspections - Transmission Program included in the SPP is a continuation of FPL's existing Commission-approved transmission inspection program. The SPP will continue FPL's current, Commission-approved transmission inspection program which requires: (a) transmission circuits and substations and all associated hardware to be inspected on a six-year cycle; (b) wood structures to be inspected visually from the ground on an annual basis and climbing or bucket truck inspections to be conducted on a six-year cycle; and (c) steel and concrete structures to be inspected visually on an annual basis and climbing or bucket truck inspections to be conducted on aten-year cycle. As explained in the SPP, the performance of FPL's transmission facilities during recent storm events indicates FPL's transmission inspection progfam has contributed to the overall storm resiliency of the transmission system and provided savings in storm restoration costs. FPL expects to inspect approximately 68,000 structures annually during the 2020-2029 SPP period. The total estimated costs for the Structures/Other Equipment Inspections - Transmission Program for the ten*year period of 2020-2029 is $500 million with an annual average cost of approximately $50 million, which is consistent with historical costs for the 1 Note, the 2020-2029 program costs shown above are projected costs estimated as of the time of this filing. Subsequent projected and actual costs could vary by as much as 10%o to 15%o. The annual projected costs, actual/estimated costs, actuals costs, and true-up of actual costs to be included in FPL's Storm Protection Plan Cost Recovery Clause will all be addressed in subsequent and separate Storm Protection Plan Cost Recovery Clause filings pursuant to Rule 25-6.031, F.A.C. The Commission has opened Docket No. 20200092-EI to address Storm Protection Plan Cost Recovery Clause petitions to be filed the third quarter of 2020. 9 1 2 aJ 4 5 6 7 8 9 10 11 l2 13 14 15 I6 I7 18 I9 20 2l 22 23 a. A. existing transmission inspection program.2 A detailed description of the Structures/Other Equipment Inspections - Transmission Program is provided in Section IV(B) of FPL's SPP. Please provide a summary of FPL's Feeder Hardening (EWL) - Distribution Program included in the SPP. The Feeder Hardening (EW-) - Distribution Program included in the SPP is a continuation of FPL's existing Commission-approved approach to harden existing feeders and certain critical distribution poles, as well as FPL's initiative to design and construct new pole lines and major planned work to meet the National Electrical Safety Code's ("NESC") extreme wind loading criteria ("EWL"). During the period 2006-2019, FPL hardened over 1,300 existing feeders, the vast majority being Critical Infrastructure Function ("CIF") feeders (i.e., feeders that serve hospitals, 911 centers, police and fire stations, water treatment facilities, county emergency operation centers) and Community Project feeders (1.e., feeders that serve other key community needs like gas stations, grocery stores and pharmacies) throughout FPL's service territory. Additional feeders were hardened as a result of FPL's Priority Feeder Initiative, a reliability program that targeted feeders experiencing the highest number of interruptions and/or customers interrupted. FPL also applied EWL to the design and construction of new pole lines and major planned work, including pole line extensions and relocations and certain pole replacements. As provided in previous FPL Annual Reliability Report filings and three-year Storm Hardening Plan filings (per Rule 25-6.0342, F.A.C.), hardened feeders perform better than non-hardened feeders, both in day-to-day reliability performance and during severe storms. Additionally, upon review of the electric utilities' storm hardening and storm preparedness programs, the Commission found that for Hurricane Irma, hardened feeders performed significantly better than 2 See footnote 1 10 1 2 J 4 5 6 7 8 9 10 11 t2 13 14 15 16 I7 18 t9 20 2l 22 a. A. non-hardened feeders with respect to outage rates, pole failures, and CMH required to restore power.3 FPL expects to harden approximately 250-350 feeders annually, with 100% of FPL's feeders expected to be hardened or underground by year-end 2024 and with the final costs of the program to be incurred in2025. The total estimated costs for the Feeder Hardening (EWL) - Distribution Program for the period of 2020-2025 is $3,206 million with an annual average cost of approximately $534 million, which is consistent with historical costs for the existing distribution feeder hardening program.a A detailed description of the Feeder Hardening (EWI-) - Distribution Program is provided in Section IV(C) of FPL's SPP. Please provide a summary of FPL's Lateral Hardening (Undergrounding) - Distribution Program included in the SPP. The Lateral Hardening (Undergrounding) - Distribution Program included in the SPP is a continuation and expansion ofFPL's existing three-year Storm Secure Underground Program Pilot ("SSUP Pilot") implemented in 2018. The SSUP Pilot is a program that targets certain overhead laterals that were impacted by recent storms and have a history of vegetation-related outages and other reliability issues for conversion from overhead to underground. As part ofits proposed SPP, FPL will complete its existing three-year SSIIP Pilot in 2020 and expand the application of the SSUP during 2021-2029 to the implementation of the system-wide Lateral Hardening (Undergrounding) - Distribution Program to provide the benefits of underground lateral hardening throughout its system. As explained in the SPP, the proposal to continue and expand the application of the SSUP under the SPP is based on the performance of the 3 See Review of Florida's Electric Utility Hurricane Preparedness and Restoration Actions 2018, Docket No. 20170215-EU (July 24, 2018). a See footnote 1. ll 1 2 aJ 4 5 6 7 8 9 10 11 I2 13 14 a. 15 16 A. t7 18 t9 20 2l 22 23 24 underground facilities as compared to overhead facilities and the extensive damage to the overhead facilities caused by vegetation during Hurricanes Matthew and Irma. By the end of 2020, the third and final year of the SSUP Pilot, FPL expects to have converted a total of 220-230laterals from overhead to underground, which is consistent with the SSLIP Pilot plan most recently approved in July 2019 in FPL's most recent storm hardening plan docket, Docket No. 20180144-EI. After completing the SSUP Pilot in 2020,FPL estimates that it will convert approximately 300-700 laterals annually in202I-2023 and approximately 800-900 laterals annually in2024-2029. The total estimated costs for the Lateral Hardening (Undergrounding) - Distribution Program for the ten-year period of 2020-2029 is $5,101 million with an annual average cost of approximately $510 million.s A detailed description of the Lateral Hardening (Undergrounding) - Distribution Program is provided in Section IV(D) of FPL's SPP. Please provide a summary of FPL's Wood Structures Hardening (Replacing) - Transmission Program included in the SPP. The Wood Structure Hardening (Replacing) - Transmission Program included in the SPP is a continuation of FPL's existing transmission hardening program to replace all wood transmission structures with steel or concrete structures. As explained in the SPP, the performance of FPL's transmission facilities during recent storm events indicates FPL's transmission hardening program has contributed to the overall storm resiliency ofthe transmission system and provided savings in storm restoration costs. As of year-end 2019, 96yo of FPL's transmission structures, system-wide, were steel or concrete, with less than2,900 (or 4%) wood structures remaining to be replaced. FPL expects 5,See footnote I t2 1 2 J 4 5 6 7 8 9 l0 11 I2 13 l4 i5 16 l7 18 l9 20 2t 22 23 24 to replace the 2,900 wood transmission structures remaining on its system by year-end 2022. The total estimated costs for the Wood Structure Hardening (Replacing) - Transmission Program for the period of 2020-2022 is $118 million with an annual average cost of approximately $39 million, which is a decrease from the historical costs for the existing transmission hardening program.6 A detailed description of the Wood Structure Hardening (Replacing) - Transmission Program is provided in Section IV(E) of FPL's SPP. a. Please provide a summary of FPL's Substation Storm Surge/Flood Mitigation Program. A. The Substation Storm Surge/Flood Mitigation Program is the only new storm hardening program that FPL proposes to implement as part of its SPP. The Storm Surge/Flood Mitigation - Transmission and Distribution Program will implement measures to protect T&D substations and equipment that are susceptible to storm surge or flooding due to extreme weather events. Historically, several FPL distribution and transmission substations have been impacted by storm surge andlor flooding as a result of extreme weather conditions. While proactively de- energizing those substations impacted by storm surge andlor flooding helps reduce damage to substation equipment, FPL is still required to implement both temporary flood mitigation efforts and repairs to substation facilities and equipment that become flooded as a result of extreme weather conditions. Further, flooding and the need to proactively de-energize substations located in areas susceptible to storm surge and flooding can result in significant customer outages. To prevent/mitigate future substation equipment damage and customer outages due to storm surge and flooding, FPL's new Storm Surge/Flood Mitigation Program will raise the equipment at certain substations above the flood level and construct flood protection walls around other substations to prevent/mitigate future damage due to storm surge and flooding. 6 See footnote I 13 I 2 aJ 4 5 6 7 8 9 10 11 l2 13 l4 l5 t6 l7 18 l9 20 2l 22 23 24 a. A. At this time, FPL has identified between 8-10 substations where it initially plans to implement storm surge/flood mitigation measures over the next three yearc (2020-2022). The total estimated costs for the new Substation Storm Surge/Flood Mitigation over this three-year period is approximately $23 million with an annual average cost of approximately $8 million per year.1 A detailed description of the Storm Surge/Flood Mitigation - Transmission and Distribution Program is provided in Section IV(F) of FPL's SPP. Please provide a summary of FPL's Vegetation Management - Distribution Prdgram included in the SPP. The Vegetation Management - Distribution Program included in the SPP is a continuation of FPL's existing, Commission-approved distribution vegetation management program. FPL's currently-approved distribution vegetation program, includes the following system-wide vegetation management activities: three-year cycle for feeders; mid-year cycle targeted trimming for certain feeders; six-year cycle for laterals; and continued education of customers through its Right Tree, Right Place initiative. In approving FPL's current distribution vegetation management cycles, the Commission indicated that FPL's distribution vegetation management cycles were cost-effective and would provide savings to customers. Additionally, as explained in the SPP, recent storm events demonstrate that FPL's existing distribution vegetation management program has contributed to the overall improvement in the resiliency of distribution system during storms, resulting in reduclions in storm damage to poles, days to restore, and storm restoration costs. Under the SPP, FPL plans to trim, on average, approximately 15,200 miles annually, including approximately 11,400 miles for feeders (cycle and mid-cycle) and 3,800 miles for laterals, which is consistent with the historic miles trimmed annually. The total estimated costs for the 7 See footnote 1 l4 1 2 J 4 5 6 7 8 9 10 1l 12 13 14 15 16 l7 18 t9 20 2I 22 23 24 a. A. Vegetation Management - Distribution Program for the ten-year period of 2020-2029 is $596 million with an annual average cost of approximately $60 million, which is consistent with historical costs for the existing distribution vegetation management program.8 A detailed description of the Vegetation Management- Distribution Program is provided in Section IV(G) of FPL's SPP. Please provide a summary of FPL's Vegetation Management - Transmission Program included in the SPP. The Vegetation Management - Transmission Program included in the SPP is a continuation of FPL's existing transmission vegetation management program. The key elements of FPL's transmission vegetation management program are to inspect the transmission right-of-ways, document vegetation inspection results and findings, prescribe a work plan, and execute the work plan. In its SPP, FPL will continue its current transmission vegetation management plan, which includes visual and aerial inspections of all transmission line corridors, Light Detection and Ranging ("LiDAR") inspections of North American Electric Reliability Corporation's ("NERC") transmission line corridors, developing and executing annual work plans to address identified vegetation conditions, and identifuing and addressing priority and hazard tree conditions prior to and during storm season. As explained in the SPP, the execution of FPL's transmission vegetation management plan has been and is a significant factor in mitigating damage to transmission facilities and avoiding transmission-related outages. Under the SPP, FPL plans to inspect and maintain, on average, approximately 7,000 miles of transmission lines annually, including approximately 4,300 miles for NERC transmission line corridors and2,700 miles for non-NERC transmission line corridors. This is comparable to the approximately 7,000 miles inspected and maintained annually, on average for 2017-2019. 8 See footnote I 15 1 2 J 4 5 6 8Q. 9 10 A. 11 t2 t3 l4 15 16 l7 18 t9 a. 20 21 A. 22 23 24 The total estimated costs for the Vegetation Management - Transmission Program for the ten- year period of 2020-2029 is $96 million with an annual average cost of approximately $10 million, which is consistent with historical costs for the existing transmission vegetation management program.e A detailed description of the Vegetation Management - Transmission Program is provided in Section IV(H) of FPL's SPP. IV. ADDITIONALDETAILS FORFIRST THREE YEARS OF THE SPP Has FPL provided additional project-level details and information for the first year (2020) of the SPP? Yes. The following additional information required by Rule 25-6.030(3Xe)(1), F.A.C., for the first year (2020) of the SPP is provided in Appendix E to FPL's SPP: (t) the actual or estimated construction start and completion dates; (2) a description of the affected existing facilities, including number and type(s) of customers served, historic service reliability performance during extreme weather conditions, and how this data was used to priorilize the proposed storm protection project; and (3) a cost estimate including capital and operating expenses. Additionally, a description ofthe criteria used to select and prioritize proposed storm protection projects is included in the description ofeach proposed SPP program provided in Section IV ofthe SPP. Does FPL's SPP provide sufficient detail to develop preliminary estimates of the rate impacts for the second and third years (2021-2022) of the SPP? Yes. As required by Rule 25-6.030(3Xe)(2), F.A.C., FPL has provided the estimated number and costs of projects under each specific SPP program, which information was used to develop the estimated rate impacts for 2021-2022. This information is provided in Appendix C to FPL's SPP. e See footnote I 16 1 2 J 4 5 6 7 8 9 l0 11 12 13 14 15 I6 T7 18 19 20 2l 22 23 24 a. Did FPL provide a description of its vegetation management activities under the SPP for the first three years (2020-2022) of the SPP? A. Yes. The following additional information required by Rule 25-6.030(3)(0, F.A.C., for the first three years (2020-2022) of the vegetation management activities under the SPP is provided in Sections IV(G) and IV(H) of FPL's SPP and Appendix C to FPL's SPP: the projected frequency (trim cycle); the projected miles of affected transmission and distribution overhead facilities; and the estimated annual labor and equipment costs for both utility and contractor personnel. Additionally, descriptions of how the vegetation management activities will reduce outage times and restoration costs due to extreme weather conditions are provided in Sections IV(G) and IV(H) of FPL's SPP. a. Has FPL provided the annual jurisdictional revenue requirements for the 2020-2029 SPP? A. Yes. Pursuant to Rule 25-6.030(3)(9), F.A.C., FPL has provided the estimated annual jurisdictional revenue requirements in Section VI of the SPP. While FPL has provided estimated costs by program as of the time of this filing and associated total revenue requirements in its SPP, consistent with the requirements of Rule 25-6.030, F.A.C., subsequent projected and actual program costs submitted for cost recovery through the Storm Protection Plan Cost Recovery Clause (per Rule 25-6.037, F.A.C.) could vary by as much as 70-75o/o, which variations would also impact the associated estimated revenue requirements and rate impacts. The projected costs, actuaU estimated costs, actuals costs, and true-up ofactual costs to be included in FPL's Storm Protection Plan Cost Recovery Clause will all be addressed in subsequent filings in separate Storm Protection Plan Cost Recovery Clause dockets pursuant to Rule 25-6.031, F.A.C.to a. Has FPL estimated the rate impacts for each of the first three years of the SPP? r0 The Commission has opened Docket No. 20200092'EI to address Storm Protection Plan Cost Recovery Clause petitions to be filed the third quarter of 2020 . l7 1 2 aJ 4 5 6 7 8 9 10 11 I2 13 14 15 l6 l7 18 t9 20 2l 22 23 24 A. a. A. FPL anticipates the programs included in the SPP will have zero bill impacts on customer bills during the first year of the SPP and only minimal bill increases for years two and three of the SPP. An estimate of the hypothetical overall rate impacts for the first three years of the SPP (2020-2022) based on the total program costs reflected in this filing, without regard for the fact that FPL remains under a general base rate freeze pursuant to a Commission-approved settlement agreement through December 31,2021, are provided in Section VII ofthe SPP. The projected costs, actual/estimated costs, actuals costs, and true-up ofactual costs to be included in FPL's Storm Protection PIan Cost Recovery Clause will all be addressed in subsequent filings in separate storm protection plan cost recovery clause dockets pursuant to Rule 25- 6.031, F.A.C.rr V. CONCLUSION Does FPL believe that its SPP will achieve the legislative objectives of Section 366.96, F.S., to reduce costs and outage times associated with extreme weather events by promoting the overhead hardening of electrical transmission and distribution facilities, the undergrounding of certain electrical distribution lines, and vegetation management? Yes. While no electrical system can be made completely resistant to the impacts of hurricanes and other extreme weather conditions, FPL's SPP provides a systematic approach to achieve the legislative objectives of reducing restoration costs and outage times associated with extreme weather events and enhancing reliability. As explained above and in further detail in the SPP, FPL's SPP programs are largely a continuation and expansion of FPL's already successful and ongoing storm hardening and storm preparedness programs previously approved by the Commission, as well as a new storm hardening program to protect T&D substations and equipment from storm surge and flooding due to extreme weather events. These SPP programs llSee footnote 10. 18 2 aJ 4 5 6 7 a. A. will continue to provide increased T&D infrastructure resiliency, reduced restoration time, and reduced restoration costs when FPL's system is impacted by extreme weather events. FPL's SPP appropriately and effectively maintains and builds on FPL's commitment to provide safe and reliable electric service to customers, and to meet the needs and expectations of our customers, today and for many years to come. Does this conclude your direct testimony? Yes. l9 Docket No. 202O0071-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page '1 of 48 Florida Power & Light Gompany Storm Protection Plan 2020-2029 (Rule 25-6.030, F.A.C.) Docket No. 20200071-El April 10, 2020 TABLE OF CONTENTS Executive Summary. The 2020-2029 SPP will Strengthen FPL's lnfrastructure to Withstand Extreme Weather Conditions and will Reduce Restoration Costs and Outage Times.... Description of Service Area and T&D Facilities .......... 2020-2029 SPP Programs.......... A. Pole lnspections-Distribution Program..................... 1. Description of the Program and Benefits.......... 2 ActualiEstimated Stad and Completion Dates 3. Cost Estimates... 4. Comparison of Costs and 8enefits............. 5. Criteria used to Select and Prioritize the Program B. Structures/OtherEquipmentlnspections-Transmission Program 1. Description of the Program and 8enefits............. 2. Actual/Estimated Start and Completion Dates 3. Cost Estimates.......... ......i.......... 4. Comparison of Costs and Benefits............. 5. Criteria used to Select and Prioritize the Program Feeder Hardening (EWL) - Distribution Program ............. 1. Description of the Program and 8enefits............. 2. Actual/Estimated Start and Completion Dates 3. CostEstimates......... 4. Comparison of Costs and 8enefits............. 5. Criteria used to Select and Prioritize the Program Lateral Hardening (U ndergrounding) - Distribution Program............. Description of the Program and Benefits........ Actual/Estimated Start and Completion Dates Cost Estimates ......... Comparison of Costs and Benefits................. Docket No. 2O20O071-El FPL's 2O2O-2029 Storm Proteciion Plan Exhibit MJ-l , Page 2 of 48 .........3 .........6 .','.,.''7 ''''',',.7 .........7 .......10 .......10 .......11 .......11 ''.,',12 ......12 ......14 ......14 ......15 ......15 ......16 ......16 ......20 '''',,21 ,.',.'21 ......21 ......22 ......22 ......25 ......25 ......25 ......26 I lil IV c D 1. 2. 3. 4. 5. Criteria used to Select and Prioritize the Program .... E F G H 3. 4- Docket No. 202OO071-E\ FPL'i 2020-2029 Storm Protection Plan Exhibit MJ-'l , Page 3 of 48 Wood Structures Hardening (Replacing) - Transmission Program 1. Description of the Program and Benefits............. .........26 2. Actual/Estimated Start and Completion Dates ........ 3. CostEstimates......... 4. Comparison of Costs and Benefits............. 5. Criteria used to Select and Prioritize the Program .. Substation Storm Surge/Flood Mitigation Program 1. Description of the Program and Benefits............. .........30 2. Actual/Estimated Start and Completion Dates .............31 3. CostEstimates......... 4. Comparison of Costs and Benefits................. 5. Criteria used to Select and Prioritize Projects Vegetation Management - Distribution Program ...... 1. Description of the Program and Benefits........ 2. Actual/Estimated Start and Completion Dates .26 ...28 ...28 ...29 ...29 ...30 ...31 ...31 ...32 ...32 32 35 35 36 Cost Estimates .....,.,. Comparison of Costs and Benefits............. 5. Criteria Used to Select and Prioritize the Program Vegetation Management - Transmission Program 1. Description of the Program and Benefits............. 2. Actual/Estimated Start and Completion Dates 3. CostEstimates......... 4. Comparison of Costs and 8enefits............. ....36 ....37 ....37 ....39 ....39 ....40 '.,,40 V 5. Criteria used to Select and Prioritize the Programs.. Detailed lnformation on the First Three Years of the SPP (2020- 2022) A. Detailed Description for the First Year of the SPP (2020)... B. Detailed Description of the Second and Third Years of the sPP (2021-2022) C. Detailed Description of the Vegetation Management Activities for the First Three Years of the SPP (2020-2022) Estimate of Annual Jurisdictional Revenue Requirements for the 2020-2029 SPP ......... 41 41 ...41 41 VI 42 Vll. Estimated Rate lmpacts for First Three Years of the SPP (2020- 2022) vill Conclusion Appendices Docket No. 20200071-El FPL'9 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 4 of 4B 43 44 Appendix A - Appendix B - Appendix C - Appendix D - Appendix E - FPL's Third Supplemental Response to Staff's First Data Request No. 29 ('Third Supplemental Amended") in Docket No. 2017021s-El FPL Management Areas and Customers Serued FPL 2020-2029 SPP Estimated Annual Costs and Estimated Number and Costs of Projects FPL Distribution Design Guidelines Project Level Detail for First Year of the SPP (2020) Docket No. 20200071-El F PL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 5 of 48 Florida Power & Light Gompany 2020-2029 Storm Protection Plan l. Executive Summary Pursuant to Section 366.96, Florida Statutes ("F.S."), and Rule 25-6.030, Florida Administrative Code ("F.A.C."), Florida Power & Light Company ('FPL') submits its Storm Protection Plan for the ten (10) year period 2020-2029 (hereinafter, the "SPP'). As explained herein, the SPP is largely a continuation of FPL's successful storm hardening and storm preparedness programs previously approved by the Florida Public Service Commission ("Commission") over the last fourteen years. FPL anticipates the programs included in the SPP will have zero bill impacts on customer bills during the first year of the SPP and only minimal bill increases for years two and three of the SPP.1 Since 2006, FPL has been implementing Commission-approved programs to strengthen its transmission and distribution ("T&D") infrastructure. These programs include multiple storm hardening and storm preparedness programs, such as feeder hardening, replacing wood transmission structures, vegetation management, and pole inspections. As demonstrated by recent storm events, these ongoing storm hardening and storm preparedness programs have resulted in FPL's T&D electricalgrid becoming more storm resilient, experiencing less infrastructure damage and reduced restoration times, as compared to non-hardened facilities. These programs have also provided significant improvements in dayto-day reliability. The success of FPL's storm hardening and storm preparedness programs has been achieved through the development and implementation of FPL's forward-looking storm hardening, grid modernization, and reliability initiatives and investments, combined with the use of cutting-edge technology and strong employee commitment. Under the SPP, FPL remains committed to continue these successful and industry-leading programs to 1 The recovery of the costs associated with the SPP, as well as the actual and projected costs io be included in FPL's Storm Protection Plan Cost Recovery Clause, will be addressed in a subsequent and separate Storm Protection Plan Cost Recovery Clause docket pursuant to Rule 25-6.031, F.A.C. 1 Docket No. 20200071-El FPL'9 2020-2029 Storm Protection Plan Exhibit MJ-1, Page 6 of 48 further strengthen its T&D infrastructure, mitigate restoration costs and outage times, continue to provide safe and reliable electric service to customers, and meet future increasing needs and expectations. As stated previously, FPL's SPP is, in large part, a continuation and expansion of its previously approved storm hardening and storm preparedness programs, and includes the following SPP programs: . Pole lnspections - Distribution Program . Structures/Other Equipment lnspections - Transmission Program . Feeder Hardening (EWL)- Distribution Program . Lateral Hardening (Undergrounding) - Distribution Program r Wood Structures Hardening (Replacing) - Transmission Program . Vegetation Management - Distribution Program . Vegetation Management - Transmission Program ln addition, FPL will implement a new Substation Storm Surge/Flood Mitigation Program to harden certain targeted substations that, based on prior experience, are susceptible to storm surge or flooding during extreme weather events. With the exception of the new storm surge/flood mitigation program, the majority of the programs included in the SPP have been in place since 2007. As demonstrated by recent storm events, these programs have been successful in reducing restoration costs and outage times following major storms, as well as improving day-to-day reliability. FPL submits that continuing these previously approved storm hardening and storm preparedness programs in the SPP, together with the new storm surge/flood mitigation substation program, is appropriate and necessary to address the mandates set forth in Section 366.96, F.S., and Rule 25-6.030, F.A.C., as well as the expectations of FPL's customers and other stakeholders for increased storm resiliency and will result in fewer 2 Docket No. 20200071-El FPL'9 2020-2029 Storm Protection Plan Exhibit MJ-1, Page 7 of 48 outages, reduced restoration costs, and prompt service restoration.2 The SPP will continue and expand the benefits of hardening, including improved day-to-day reliability, to all customers throughout FPL's system. The following sections provide information and details on FPL's SPP as required by and in compliance with Rule 25-6.030, F.A.C. For the reasons explained below, FPL submits that implementing the SPP is necessary and appropriate to achieve the goals and requirements expressed by the Florida Legislature in Section 366.96, F.S., to reduce restoration costs and outage times associated with extreme weather events and improve overall service reliability to customers and the State of Florida by promoting the overhead hardening of electrical transmission and distribution facilities, the undergrounding of certain electrical distribution lines, and vegetation management. ll. The 2020-2029 SPP will Strenqthen FPL's lnfrastructure to Withstand Extreme Weather Conditions and will Reduce Restoration Costs and Outaqe Times Pursuant to Rule 25-6.030(3)(a), F.A.C., this section provides an overview of how the SPP will strengthen FPL's electric utility infrastructure to withstand extreme weather conditions by promoting the overhead hardening of electricaltransmission and distribution facilities, the undergrounding of certain electrical distribution lines, and vegetation management. Consistent with Rule 25-6.030(3Xb), F.A.C., this section also provides a summary of how the SPP is expected to further reduce restoration costs and outage times associated with extreme weather conditions and, therefore, improve overall service reliability. To date, significant progress has been made toward strengthening FPL's infrastructure. For example, at year-end 2019, approximalely 54o/o of FPL's distribution feeders have been either hardened or placed underground, and approximately 96% of FPL's transmission structures are either steel or concrete. AIso, since 2006, FPL has completed multiple system-wide cycles of distribution and transmission pole inspections and 2 As explained below, a couple of the programs included in the SPP are expected to be completed within the next several years. 3 Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 8 of 48 vegetation management. Within the next few years several significant milestones are also expected to be reached, including replacement of all wood transmission structures with steel or concrete structures by year-end 2022 and for allfeeders to be hardened or placed underground by year-end 2024. FPL also implemented a three-year Storm Secure Underground Program Pilot in 2018 ('SSUP Pilot") that converts certain targeted overhead laterals - laterals that have been impacted by recent storms and have a history of vegetation-related outages and other reliability issues - to underground laterals. At year-en d 2020, the final year of the SSUP Pilot, FPL expects 220-230 of these targeted laterals to be converted from overhead to underground. In addition, FPL's Design Guidelines incorporate and apply extreme wind loading ("EWL") criteria to the design and construction of all new overhead pole lines and major planned work, including pole line extensions, relocations, and certain pole replacements. FPL's SPP programs have already demonstrated that they have and will continue to provide increased T&D infrastructure resiliency, reduced restoration time, and reduced restoration costs when FPL's system is impacted by severe weather events. ln FPL's Third Supplemental Response to Staff's First Data Request No. 29 ('Third Supplemental Amended") in Docket No. 20170215-E1,3 FPL prepared and submitted an analysis of Hurricanes Matthew and lrma that indicated the restoration construction man-hours ("CMH'), days to restore, and storm restoration costs for these storms would have been significantly higher without FPL's storm hardening programs. Below is a summary of the results of FPL's analysis: Without Hardeni Hurricane Matthew Hurricane lrma 3 The Commission opened Docket No. 20170215-El to review electric utility preparedness and restoration actions and to identify potential areas where infrastructure damage, outages, and recovery time for customers could be minimized in the future. 4 93,000 (36%)483,000 @0o/o)Additional CMH (%) 2 (50o/o)4 (40%)Additionaldays to restore (%) $4e6 (40%)Additional restoration costs ($millions) (%) $105 (36%) Docket No. 2O20O071-E\ FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-'l, Page I of 48 A copy of FPL's Third Supplemental Amended Response in Docket No.20170215-El, including the analysis referenced above, is provided in Appendix A. Based on a 40-year net present value analysis, the savings achieved from storm hardening would equate to $653 million (for a storm occurring once every three years) and $406 million (for a storm occurring once every five years) for a storm similar to Hurricane Matthew and $3.'l billion (for a storm occurring once every three years) and $1.9 billion (for a storm occurring once every five years) for a storm similar to Hurricane lrma. These programs have also provided increased levels of day{o-day reliability. For example, FPL has previously submitted reports to the Commission that show hardened feeders have performed approximately 40% better (i.e., fewer outages) on a day{o-day basis than non-hardened feeders.a Further details on the benefits of the SPP programs are provided throughout the remaining sections of this SPP. Although FPL's storm preparedness and hardening programs to date have produced a more storm resilient and reliable T&D electrical grid, FPL must continue its efforts to storm-harden its T&D electrical grid consistent with the findings, conclusions, and objectives of the Florida Legislature in Section 366.96, F.S. lndeed, Florida remains the most hurricane-prone state in the nation and, with the significant coast-line exposure of FPL's system and the fact that the vast majority of FPL's customers live within 20 miles of the coast, a robust storm protection plan is critical to maintaining and improving grid resiliency and storm restoration. Safe and reliable electric service is essential to the life, health, and safety of the public, and has become a critical component of modern life. lmportantly, as evidenced by the significant numbers of Florida's workforce that are working remotely during the COVID- 19 pandemic, today's digital society, economy, national security, and daily life are more dependent on reliable electric service than ever before. While no electrical system can be made completely resistant to the impacts of hurricanes and other extreme weather conditions, the programs included in FPL's SPP have already demonstrated that they 5 a See Appendix A. Docket No. 2O2OO071-E\ F PL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 10 of 48 mitigate and will continue to mitigate the impacts of future storms.s While FPL's nation- leading initiatives have made significant progress toward strengthening FPL's infrastructure, continuing these previously approved storm hardening and storm preparedness programs in the SPP, together with the new storm surge/flood mitigation substation program, is appropriate and crucial to further mitigate restoration costs and outage times, continue to provide safe and reliable electric service to customers, and meet current and future needs and expectations of customers, today and for many years to come. lll. Descriotion of Service Area a nd T&D Facilities Pursuant to Rule 25-6.030(3)(c), F.A.C., this section provides a description of FPL's service area, including areas prioritized for enhancement, if any, and any areas where FPL has determined that enhancement of its existing T&D facilities would not be feasible, reasonable, or practical at this time. Today, FPL's service territory consists of approximately 28,000 square miles. To serve its more than 5 million customers, FPL has constructed a T&D electric grid that contains approximately 75,000 miles of electrical lines, including: . Approximately 42,000 miles of overhead distribution lines; . Approximately 26,000 miles of underground distribution lines; . Approximately 7,000 miles of high-voltage transmission lines; . Approximately 1.2 million distribution poles; and . Approximately 68,000 transmission structures. FPL's service territory is divided into sixteen (16) distribution management areas. A map depicting FPL's service territory and distribution management areas (with the number of customers served within each management area) is provided in Appendix B. At this time, FPL has not identified any areas of its service territory where its SPP programs would not be feasible, reasonable, or practical. While all of FPL's SPP 5 lt is important to note that despite the implementation of these storm hardening and storm preparedness programs, outages will still occur when severe weather events impact Florida. 6 Docket No. 20200071-El FPL'9 2020-2029 Storm Protection Plan Exhibit MJ-1, Page '1'1 of 48 programs are currently system-wide initiatives, annual activities are prioritized based on ceftain factors such as last inspection date, last trim date, reliability performance, and efficient resource utilization.o At this time, there is no area specifically targeted or prioritized for enhanced performance based on its geographical location. lV. 2020-2029 SPP Proqrams Pursuant to Rule 25-6.030(3XcXd), F.A.C., this section provides a description of each program included in FPL's SPP. lf applicable, each program description below includes: (1) a description of how each program is designed to enhance FPL's existing transmission and distribution facilities including an estimate of the resulting reduction in outage times and restoration costs due to extreme weather conditions; (2) identification of the actual or estimated start and completion dates of the program; (3) a cost estimate including capital and operating expenses; (4) a comparison of the costs and the benefits; and (5) a description of the criteria used to select and prioritize storm protection programs. A. Pole lnspections - Distribution Program 1. Description of the Proqram and Benefits The Pole lnspection - Distribution Program included in the SPP is a continuation of FPL's existing Commission-approved distribution pole inspection program. Below is an overview of FPL's existing distribution inspection program and its associated benefits. a. Overview of the Distribution Pole lnspection Proqram ln response to the 2004-2005 storm seasons and, in particular, the "large number of poles throughout Florida that required replacement," the Commission required investor-owned utilities ("lOUs") to implement an eight-year pole inspection cycle for all wood distribution poles.T FPL's plan was approved in September 20068 and modified in January 2007.e 6 The criteria and factors used to select and prioritize projects within each SPP program are described below. 7 See Order No. PSC-06-0144-PAA-El. I See Order No. PSC-06-0778-PAA-EU. e See Order No. PSC-07-0078-EU. 7 Docket No. 20200071-El FPL'S 2o2o-2o29 Storm Protection Plan Exhibit MJ-1, Page 12 ol 48 Subsequently, FPL expanded its distribution pole inspection plan to also include concrete poles. FPL's eight-year pole inspection cycle for all distribution poles targets approximately 1/8 of the system annually (the actual number of poles inspected can vary somewhat from year to year). To ensure inspection coverage throughout its service territory, FPL established nine (9) inspection zones (based on FPL's management areas and pole population)and annually performs pole inspections of approximately'1/8 of the distribution poles in each of these zones, as well as any necessary remediation as a result of such inspections. FPL utilizes Osmose Utilities Services, lnc. ("Osmose"), an industry-leading pole inspection contractor, to perform the system-wide inspection of its distribution poles. FPL's strength and loading calculations for its distribution poles and pole inspections are based on the National Electrical Safety Code's ('NESC") Grade B construction standard, as outlined by Table 261-1A section 26 of the NESC. Osmose utilizes mobile computing technology to record inspection data and to calculate strength and loading. The loading calculation, span lengths, attachment heights, and wire sizes are recorded in the mobile computer to determine whether the remaining pole strength capacity meets or exceeds NESC requirements. This data is then transferred to FPL's Geographic lnformation System ("GlS'). Pole locations inspected by Osmose are also randomly audited by FPL to verify that inspections are completed and meet inspection standards. lnspections include a visual inspection of all distribution poles from the ground-line to the top of the pole to identify visual defects (e.9., woodpecker holes, split tops, decayed tops, cracks, etc.). lf, due to the severity of the defects, the poles are not suitable for continued service, the poles are designated for replacement. Wood poles that pass the above-ground visual inspection are excavated to a depth of 18" (where applicable), and sounded and bored to determine the internal condition of the pole. Poles encased in concrete or asphalt are not excavated, but are sounded and bored to determine their internal condition using a standard industry-accepted inspection process called "Shell Boring." All suitable wood poles receive external and/or internal preservative treatment or, if not suitable, are replaced. Strength calculations are also 8 Docket No. 2O2OO071-E\ FPL's 2O20-2029 Storm Protection Plan Exhibit MJ-1 , Page '13 of 48 performed on wood poles to determine compliance with NESC requirements. The poles that are not suitable for continued service are designated for replacement or remediation. ln 2014, FPL obtained Commission approval to: (1) exempt the loading assessment during the second eight-year cycle for any pole that had less than 80% of full load during FPL's initial eight-year cycle; and (2) excavate Chromium Copper Arsenate ("CCA') poles every 28 years (extended from 16 years originally approved by the Commission).1o To ensure that these exceptions to the standard eight-year inspection cycle do not compromise existing safety and storm hardening programs, FPL conducts annual testing on 1o/o of the exempted poles. b. Benefits of the Distribution Pole Inspection Proqram The Commission has previously found that "efforts to maintain system components can reduce the impact of hurricanes and tropical storms upon utilities' transmission and distribution systems," and noted that an "obvious key component in electric infrastructure is the transmission and distribution poles.'11 The Commission has also previously identified multiple benefits of and reasons for justifying pole inspections cycles for electric utilities, including, but no limited to: the likelihood of increased hurricane activity in the future; the high probability for equipment damage if a pole fails during a storm; the Iikelihood that failure of one pole often causes other poles to fail; the fact that deteriorated poles are more prone to fail when exposed to high winds; the fact that Florida electric utilities replaced nearly 32,000 poles during the 2004 storm restoration efforts; and the fact that restoration times increase significantly when a large number of poles fail, which limits the electric utilities' ability to respond quickly to widespread outages.12 ln addition to the benefits discussed above that underlie the creation of the Commission's mandated pole inspection requirements, recent storm events indicate that FPL's distribution pole inspection program has contributed to the overall improvement in distribution pole performance during storms, resulting in reductions in storm damage to poles, days to restore, and storm restoration costs. The table below compares distribution 10 See Order No. PSC-14-0594-PAA-El 11 See Order No. PSC-06-0144-PAA*E. 12 See id. I Docket No. 2020O071-El FPL's 2O2O-2029 Storm Protection Plan Exhibit MJ-1, Page 14 of 4B pole performance for Hurricane Wilma, which occurred in 2005 before FPL implemented its current distribution pole inspection program, and Hurricane lrma, which occurred in 2017 after FPL implemented its current distribution pole inspection program: Hurricane Wilma Hurricane lrma Hurricane Strength (Category)3 4 Customer Outages (Millions)3.2 4.4 Distribution Poles Replaced >12,400 <2,90013 Total Days to Restore 18 10 Average Days to Restore 5.4 2.1 FPL's Commission-approved distribution pole inspection program has facilitated the replacement and/or strengthening of over 140,000 distribution poles since it was first implemented in 2006 and has directly improved and will continue to improve the overall health and storm resiliency of its distribution pole population. 2. Actual/Estimated Start and Completion Dates The SPP will continue FPL's ongoing Commission-approved distribution pole inspection program described above. With approximately 1.2 million distribution poles as of year- end 2019, FPL expects to inspect approximately 150,000 poles annually (spread throughout its nine inspection zones) during the 2020-2029 SPP period. 3. Cost Estimates Estimated/actual annual distribution pole inspection costs are a function of the number of inspections estimated to be/actually completed and the number of poles estimated to be/actually remediated/replaced as a result of the annual inspections. Although costs to inspect the poles are operating expenses, the vast majority of pole inspection program costs are capital costs resulting from remediation/replacement of poles that fail inspection. 13 Approximately 99% of distribution poles replaced after Hurricane lrma were non-hardened poles. '10 Docket No. 2O200071-El FPL'i 2020-2029 Storm Protection PIan Exhibit MJ-1 , Page 15 of 48 The table below provides a comparison of the 2017-2019 total actual distribution pole inspection costs with the 2020-2022 (first three years of the SPP) total estimated distribution pole inspection costs and lhe 2020-2029 total estimated distribution pole inspection costs: Total Program Costs Annual Average Program millions Costs millions Further details regarding SPP estimated distribution pole inspection costs, including estimated annual capital expenditures and operating expenses, are provided in Appendix c.14 4. Comparison of Costs and Benefits As provided in Section (|VXAX3) above, during 2020-2029, total costs for FPL's Pole lnspection - Distribution Program are expected to average approximately $61 million per year. Benefits associated with FPL's Pole lnspection - Distribution Program, discussed in Sections ll and |V(AX1)(b) above, include a more storm resilient pole population that will result in reductions in pole failures and poles needing to be replaced during storms, fewer storm-related outages and reductions in storm restoration costs. 5. Criteria used to Select and Prioritize the Prooram Poles to be inspected annually are selected/prioritized within each of the nine (9) inspection zones established throughout FPL's service territory based on the last cycle's inspection dates, to ensure that poles are in compliance with FPL's established eight-year 14 Note, the 2020-2029 program costs shown above are projected costs estimated as of the time of this filing. Subsequent projected and actual costs could vary by as much as 10% to 15%. The annual projected costs, actual/estimated costs, actuals costs, and true-up of actual costs to be included in FPL's Storm Protection Plan Cost Recovery Clause will all be addressed in subsequent and separate Storm Protection Plan Cost Recovery Clause filings pursuant to Rule 25-6.031, F.A.C. The Commission has opened Docket No.20200092-El to address Storm Protection Plan Cost Recovery Clause petitions to be filed the third quarter of 2020. 2017-2019 $1 52 $st 2020-2022 $1 70 $sz 2020-2029 $605 $61 11 Docket No. 2020007l-El F PL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 16 of 48 cycle. As such, approximately 1/8 of the distribution poles in each inspection zone are inspected annually. At this time, FPL has not identified any areas where the Pole lnspection - Distribution Program would not be feasible, reasonable or practical. Structures/Other Equipment lnspections Transmission Program 1. Description of thef roqram and Benefits The Structures/Other lnspections - Transmission Program included in the SPP is a continuation of FPL's existing Commission-approved transmission inspection program. Below is an overview of FPL's existing transmission inspection program and the associated benefits. a. Overview of the Transmission lnspection Proqram ln 2006, as part of its Storm Preparedness lnitiative No. 3, the Commission required electric utilities to develop and implement plans to fully inspect alltransmission structures, substations, and all hardware associated with these facilities on a six-year cycle. Consistent therewith, FPL implemented a Commission-approved transmission inspection plan in 2006 and has continued that plan to date. Under its Commission-approved transmission inspection plan, FPL inspects its transmission circuits, substations, and other equipment on a six-year cycle. Additionally, all of FPL's transmission structures are visually inspected from the ground each year. Finally, FPL performs climbing or bucket truck inspections on all wood transmission structures on a six-year cycle and all steel and concrete structures on a ten-year cycle. lnspections for wood structures include an overall assessment of the condition of the structures, as well as other pole/structure components including the foundation, all attachments, insulators, guys, cross-braces, cross-arms, and bolts. lf a wood transmission structure does not pass visual inspection, it is designated for replacement with a concrete or steel transmission structure. B 12 Docket No. 2O2O0071-E\ FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 17 ol 48 For steel and concrete structures, the visual inspection includes an overall assessment of the structure condition (e.9., cracks, chips, exposed rebar, and rust) as well as other pole/structure components including the foundation, all attachments, insulators, guys, cross-braces, cross-arms, and bolts. lf a concrete or steel pole/structure fails the inspection, it is designated for repair or replacement. The SPP will continue FPL's current transmission inspection program which requires: (a) transmission circuits and substations and all associated hardware to be inspected on a six-year cycle; (b) wood structures to be inspected visually from the ground each year and climbing or bucket truck inspections to be conducted on a six-year cycle; and (c) steel and concrete structures to be inspected visually each year and climbing or bucket truck inspections to be conducted on a ten-year cycle. b. Benefits of the Transmission lnspection Proqram As noted in Section |V(AX1Xb) above, the Commission has found numerous benefits and reasons justifying inspections of electrical utility facilities, including transmission facilities. lmportantly, the transmission system is the backbone of the electric grid. While outages associated with distribution facilities (e.9., a transformer, lateral orfeeder) can result in an outage affecting anywhere from a few customers up to several thousands of customers, a transmission related outage can affect tens of thousands of customers. Additionally, an outage on a transmission facility could cause cascading (a loss of power at one transmission facility can trigger the loss of power on another interconnected transmission facility, which in turn can trigger the loss of power on another interconnected transmission facility, and so on) and result in the loss of service for hundreds of thousands of customers. As such, it is imperative that transmission facilities be properly inspected using appropriate cycles and standards to help ensure they are prepared for storms. Further, the performance of FPL's transmission facilities during recent storm events indicates FPL's transmission inspection program has contributed to the overall storm resiliency of the transmission system and provided savings in storm restoration costs. The table below compares the performance of FPL's transmission system for Hurricane Wilma, which occurred in 2005 before FPL implemented its current transmission 13 Docket No. 20200071-El FPL's 2020-2O29 Storm Protection Plan Exhibit MJ-1 , Page 1B of 48 inspection program, and Hurricane lrma, which occurred in 2017 after FPL implemented its current transmission inspection program: Transmission Facilities Hurricane Wilma Hurricane lrma I rovement As shown above, the impacts on FPL's transmission facilities associated with Hurricane lrma were significantly reduced from those experienced with Hurricane Wilma, even though Hurricane lrma's winds were stronger and its path impacted substantially more of FPL's facilities. As reflected in the Commission's reasoning for mandating transmission facility inspections, FPL submits that its systematic transmission inspection program is a key factor for this improved performance. 2. Actual/Esti mated Start and Comoletion Dates The SPP will continue FPL's ongoing Commission-approved transmission inspection program described above. This requires FPL to inspect: (a) transmission circuits and substations and all associated hardware on a six-year cycle; (b) wood structures to be visually inspected from the ground each year and conduct climbing or bucket truck inspections on a six-year cycle; and (c) steel and concrete structures visually each year and conduct climbing or bucket truck inspections on a ten-year cycle. 3. Cost Estimates Estimated/actual annual transmission inspection costs are a function of the number of inspections estimated to be/actually completed and the transmission facilities estimated to be/actually remediated/replaced as a result of those annual inspections. Although the inspection costs are operating expenses, the vast majority of the transmission inspection program costs are capital costs resulting from remediation/replacement of facilities that fail inspection. The table below provides a comparison of the 2017-2019 total actual transmission inspection costs with the 2020-2022 (first three years of the SPP) total estimated 38%Line Section Outages 345 215 241 92 620/oSubstation Outages 5 95o/oStructures Failed 100 14 Docket No. 2O2OO071-E\ FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 19 of 4B transmission inspection costs and the 2020-2029 totalestimated transmission inspection costs: Total Program Costs Annual Average Program illions Costs illions Further details regarding the SPP estimated transmission inspection costs, including estimated annual capitalexpenditures and operating expenses, are provided in Appendix c.15 4 Comn arison of Costs and Benefits As provided in Section |V(BX3) above, during 2020-2029, total costs for FPL's Structures/Other lnspections - Transmission Program are expected to average approximately $50 million per year. Benefits associated with the Structures/Other lnspections - Transmission Program discussed in Sections ll and IV(BX1)(b) above, include avoiding outages that can affect tens of thousands of customers and, in particular, cascading outages where the loss of service can affect hundreds of thousands of customers. 5. Criteria used to Select and Prioritize the Proqram As explained above, FPL visually inspects from the ground alltransmission structures on an annual basis. For the inspection of transmission circuits and substations and all associated hardware, the facilities are selected/prioritized throughout FPL's service territory based on the last cycle's inspection dates, to ensure that facilities are inspected in compliance with the established six-year inspection cycle. Similarly, for bucket truck or climbing inspections, structures are selected/prioritized throughout FPL's service territory based on the last cycle's inspection dates, to ensure that structures are inspected 2017-2019 $128 $43 2020-2022 $e7 $32 2020-2029 $500 $50 15 See footnote 14. 15 Docket No. 2O2OO071-El FPL's 2O20-2029 Storm Protection Plan Exhibit MJ-1, Page 20 of 48 in compliance with the established six-year (wood) and ten-year (steel and concrete) cycles. At this time, FPL has not identified any areas where the Structures/Other lnspections - Transmission Program would not be feasible, reasonable or practical. c. Feeder Hardening (EWL) - Distribution Program 1. Description of the Program and Benefits The Feeder Hardening (EWL) - Distribution Program included in the SPP is a continuation of FPL's existing Commission-approved approach (most recently approved in Docket No.20180144-EI) to harden existing feeders and certain critical distribution poles, as well as FPL's initiative to design and construct new pole lines and major planned work to meet the NESC's extreme wind loading criteria ("EWL'). FPL will continue the distribution feeder hardening program until2024, when FPL expects 100% of its feeders to be hardened or underground. Below is an overview of FPL's existing distribution feeder hardening program and the associated benefits. a. Overview of the Distribution Feeder Hardening Proqram The foundation for FPL's distribution feeder hardening program was the extensive forensic and other analyses that FPL conducted after Hurricane Wilma.16 These analyses concluded that "wind only" (as opposed to, for example, trees or other flying debris) was the predominant root cause of distribution pole breakage. This data, together with the overall pefformance of FPL's transmission poles thatwere already built to the NESC EWL standards and the performance of hardened feeders during Hurricanes Matthew and lrma, formed the basis for FPL's feeder hardening strategy. The SPP will continue FPL's previously approved approach to apply EWL criteria to harden existing distribution feeders and certain critical poles. The NESC extreme wind map for Florida will continue to be applied to FPL's system by dividing the application of 16 These analyses were conducted either directly by FPL or with the aid of external resources (e.9., KEMA, lnc.). 16 Docket No. 2O2OOO7|-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 21 o'f 48 EWL into three wind regions, corresponding to expected extreme winds of 105, 130 and 145 mph, as shown below. Wind tons - m h meter/sec so(sc)105 mph 130 mph 145 mph r40{G3) By evaluating each of the counties served by FPL, including each county's applicable wind zones, FPL determined that utilizing three extreme wind regions of 105, 130 and 145 mph for its service territory was appropriate for the following reasons: A smaller number of wind regions generate advantages through efficiency of work methods, training, engineering and administrative aspects (e.9., standards development and deployment); and t n I lo(ca a a Using 105, 130 and 145 mph wind zones is a well balanced approach that recognizes differences in the EWL requirements in the counties within each region. The SPP will also continue to utilize FPL's Design Guidelines and processes that apply EWL criteria to the design and construction of new pole lines and major planned work, including pole line extensions and relocations and certain pole replacements. Depending on the scope of the work that is performed in a particular project, this could result in the EWL hardening of an entire circuit (in the case of large-scale projects) or in EWL hardening of one or more poles (in the case of small projects) so that the affected circuit will be in a position to be fully EWL hardened in the future. The Design Guidelines are 17 Docket No. 2O2OO071-El FPL's 202O-2029 Storm Protection Plan Exhibit MJ-1, Page 22 of 48 primarily associated with changes in pole class, pole type, and desired span lengths to be utilized. The Design Guidelines standardize the design and construction of new pole lines and major planned work to ensure that these projects align with FPL's hardening strategy. FPL's current pole sizing guidelines provide for a minimum installation of: Class 2 wood poles for all new feeder and three-phase lateral work; Class 3 wood pole for two-phase and single-phase lateral work; and Class 3 wood pole for service and secondary work. For critical poles, FPL's current pole sizing guidelines provide for the installation of concrete poles at accessible locations. These guidelines significantly increase the wind ratings (up to nearly 50 percent) from the Design Guidelines in place prior to 2007. FPL's current Distribution Design Guidelines are provided in Appendix D. To determine how an existing overhead circuit or critical pole will be hardened, a field survey of the circuit facilities is performed. By capturing detailed information at each pole location, such as pole type, class, span distance, attachments, wire size, and framing, a comprehensive wind-loading analysis can be performed to determine the current wind rating of each pole, and ultimately the circuit itself. This data is then used to identify specific pole locations on the circuit that do not meet the desired wind rating. For all poles that do not meet the applicable EWL, FPL develops recommendations to increase the allowable wind rating of the pole. FPL plans to continue to utilize its "design toolkit" that focuses on evaluating and using cost-effective hardening options for each location, including: Storm Guying - lnstalling a guy wire in each direction perpendicular to the line, which is a very cost-effective option but is dependent on proper field conditions; Equipment Relocation - Moving equipment on a pole to a stronger pole near- by; lntermediate Pole - lnstalling an additional single pole within long span lengths, which reduce the span length and increases the wind rating of both adjacent poles; a a a 18 Docket No. 2O2OO071-El F PL's 2020-2029 Storm Protection Plan Exhibit MJ-1, Page 23 of 48 Upgrading Pole Class - Replacing the existing pole with a higher class pole to increase the pole's wind rating; and; Undergrounding Facilities - Evaluated on a case-by-case basis using site- specific factors and conditions. These options are not mutually exclusive and, when used in combination with sound engineering practices, provide cost-effective methods to harden a circuit. FPL's design recommendations also take into consideration issues such as hardening, mitigation (minimizing damage), and restoration (improving the efficiency of restoration in the event of failure). Since multiple factors can contribute to losing power after a storm, utilizing this multi-faceted approach to pole design helps to reduce the amount of work required to restore power to a damaged circuit. b. Benefits of the Distribution Feeder Hardeninq Proqram Distribution feeders are the backbone of the distribution system and are critical component to providing safe and reliable electric service to FPL's customers. Thus, improving the storm resiliency of distribution feeders logically provides substantial benefits for customers. Therefore, hardening distribution feeders has been and continues to be one of FPL's highest storm hardening priorities. During the period 2006-2019, FPL hardened over 1,300 existing feeders, the vast majority being Critical lnfrastructure Function ("ClF") feeders (i.e., feeders that serve hospitals, 911 centers, police and fire stations, water treatment facilities, county emergency operation centers) and Community Project feeders (r.e., feeders that serve other key community needs like gas stations, grocery stores, and pharmacies) throughout FPL's service territory. Additional feeders were hardened as a result of FPL's Priority Feeder lnitiative, a reliability program that targeted feeders experiencing the highest number of interruptions and/or customers interrupted. As of year-end 2019, approximalely 54o/o of FPL's feeders were either hardened or placed underground. Additionally, FPL has hardened 125 highway crossings and over 300 "01" switches (first pole out of a substation with a feeder switch). FPL also applied EWL to the design and construction of new pole a a 19 Docket No. 2O200071-El FPL's 2O20-2029 Storm Protection Plan Exhibit MJ-1 , Page 24 of 48 lines and major planned work, including pole line extensions and relocations and certain pole replacements. As provided in previous FPL Annual Reliability Report filings and three-year Storm Hardening Plan filings (per Rule 25-6.0342, F.A.C.) hardened feeders perform better than non-hardened feeders. This has been demonstrated in-day-to-day reliability peformance and during severe storms. For example, when comparing dayto-day reliability peformance, hardened feeders have performed 40% better than non-hardened feeders. Also, during Hurricanes Matthew and lrma, hardened feeders performed betterthan non- hardened feeders. Additionally, in Docket No. 20170215-EU, the Commission reviewed the electric utilities' storm hardening and storm preparedness programs and found for Hurricane lrma that: (1) outage rates were nearly 20% less for hardened feeders than non-hardened feeders; (2) CMH to restore hardened feeders were 50% less than non-hardened feeders (primarily due to hardened feeders experiencing less damage than non-hardened hardened feeders); and (3) hardened feeders had significantly less pole failures as compared to non-hardened feeders.lT 2. Actual/Estimated Start and Completion Dates FPL initiated its feeder hardening initiative in 2006. As of year-end 2019, there are approximately 1,600 feeders remaining to be hardened or placed underground. FPL expects to harden approximately 250-350 feeders annually, with 100% of FPL's feeders expected to be hardened or underground by year-end 2024 and with the final costs of the program to be incurred in 2025. 17 See Review of Florida's Electric Utility Hurricane Prepared ness and Restoration Actions 2018, Docket No. 20170215-EU (July 24, 2018), available at http://www.psc.state.fl.us/librarvffilinqs/2018/04847-2018/04847-2018.pdf. 20 Docket No. 2O200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 25 of 48 3. Cost Estimates Estimated distribution feeder hardening costs are determined utilizing the length of each feeder, the average historical feeder hardening cost per mile, and updated cost assumptions (e.9., labor and materials). The table below provides a comparison of the 2017-2019 total actual distribution feeder hardening costs with the 2020-2022 (first three years of the SPP) total estimated distribution feeder hardening costs and the total estimated distribution feeder hardening costs to be incurred over the period of 2020-202518. Total Program Gosts Annual Average Program illions Gosts millions Further details regarding the SPP distribution feeder hardening costs, including estimated annual capital expenditures are provided in Appendix C.ls 4. Comparison of Costs and Benefits As provided in Section lV(C)(3) above, during 2020-2025, total costs for FPL's Feeder Hardening (EWL) - Distribution Program average approximately $534 million per year through 2425. Benefits associated with the Feeder Hardening (EWL) - Distribution Program discussed in Sections ll and |V(CX1)(b) above, include improved storm resiliency as well as improved dayto-day reliability. 5. Criteria used to Select and Prioritize the Proqram As explained above, there are approximately 1,600 feeders remaining to be hardened or placed underground. FPL attempts to spread its annual projects throughout its service territory. ln prioritizing the remaining existing feeders to be hardened each year, 18 lt is currently estimated that 100% of FPL's feeders will be hardened or underground by year- end 2024, with the final costs to be incurred in 2025. 1e See footnote 14. 2017-2019 $1,492 $497 2020-2022 $1,958 $653 2020-2025 $3,206 $534 21 Docket No" 2O200071-El FPL's 2020-2O29 Storm Protection Plan Exhibit MJ-1 , Page 26 of 48 considerations include the feeder's historical reliability performance, restoration difficulties (e.9., environmentally sensitive areas, islands with no vehicle access, river crossings, etc.), on-going or upcoming internal/external projects (e.9., FPL maintenance or system expansion projects, municipal overhead/underground conversion project or municipal road project) and geographic location. At this time, FPL has not identified any areas where the Feeder Hardening (EWL) - Distribution Program would not be feasible, reasonable or practical. D. Lateral Hardening (Undergrounding) - Distribution Program 1. Description of the Proqram and Benefits ln 2018, FPL implemented a three-year Commission-approved SSUP Pilot. The SSUP Pilot is a program that targets certain overhead laterals for conversion from overhead to underground. As part of its SPP, FPL will expand undergrounding laterals in 2021-2029. Below is an overview of FPL's Lateral Hardening (Undergrounding) '- Distribution Program and the associated benefits. a Overuiew of the Distribution Lateral Hardenino Prooram As part of the SPP, FPL will complete its existing approved three-year SSUP Pilot (in 2020) and expand the application of the SSUP during 2021-2029 to the implementation of the system-wide Lateral Hardening (Undergrounding) - Distribution Program. The SSUP Pilot targeted certain overhead laterals that were impacted by recent storms and that have a history of vegetation-related outages and other reliability issues for conversion from overhead to underground. Key objectives of the SSUP Pilot included validating conversion costs and identifying cost savings opportunities, testing different design philosophies, better understanding customer impacts and sentiments, and identifying barriers (e.9., obtaining easements, placement of transformers, and attaching entities' issues). Two design options are being utilized when FPL converts overhead laterals to underground, referred to as the North American and the European designs. The North American design currently is the predominant design, but both undergrounding designs eliminate all overhead lateral and service wire. The North American design generally 22 Docket No. 20200071-El FPL'9 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 27 of 48 utilizes more primary conductor and a greater number of smaller-sized transformers, with less customers per transformer, and is better suited for front lot construction and service. The European design utilizes more secondary conductor, and a smaller number of larger- sized transformers, with more customers per transformer, and is better suited for rear lot construction and service. Where practical, FPL attempts to relocate existing facilities from the rear of to the front of customers' premises; however, there are instances where that option is not available (e.9., FPL is unable to obtain easements in front of customers' premises). FPL's standard design is the North American design (front lot construction), but FPL is gaining important experience and knowledge from its utilization of the European design (rear lot construction), which it can then better utilize for future projects as appropriate. As part of the conversion process, FPL is also installing meter base adaptors that allow underground service to be provided to the customer by utilizing the existing meter and meter enclosure. The meter base adaptors minimize the impact on customer-owned equipment and facilities. For example, in certain situations, overhead to underground conversions of electric service can trigger a local electrical code requirement that necessitates a customer upgrade of the home's electric service panel. This can cost the customer thousands of dollars. However, by utilizing a meter base adaptor, overall costs are reduced and customers are able to avoid the need and expense to convert their electrical service panels. b. Benefits of the Distribution Lateral Hardeninq Proqram Laterals make up the majority of FPL's distribution system. For example, system-wide, there are over 180,000 laterals (including laterals with multi-stage fusing), in contrast to approximately 3,300 feeders, and there are 1.8 times as many miles of overhead laterals as there are overhead feeders (approximately 23,000 miles vs. 13,000 miles, respectively). Additionally, while feeders are predominately located in the front of customers' premises, many laterals are "rear of' or behind customers' premises. This is especially the case in older neighborhoods located throughout FPL's service territory. Generally, facilities in the rear of customers' premises take longer to restore than facilities in front of customers' premises because rear-located facilities are more difficult to access 23 Docket No. 2O2OO071-E\ FPL'I 2020-2029 Storm Protection Plan Exhibit MJ-1, Page 28 of 48 and are more likely to be near vegetation. This results in a greater amount of CMH being devoted to laterals during storm restoration. The basis for FPL's SSUP Pilot and the proposal to expand upon the Pilot under the SPP is the performance of the underground facilities as compared to overh.ead facilities and the extensive damage to the overhead facilities caused by vegetation during Hurricanes Matthew and lrma. This performance was demonstrated by the results of FPL's analysis referenced above in Section IV(AX1Xb) and contained in the Commission's Review of Florida's Electric lJtitity Hurricane Preparedness and Restoration Actions in 2018,20 which is summarized in the table below: Storm and Faci Laterals Out Total Laterals % Out Finally, it is important to note that underground facilities also perform better than overhead facilities on a day-to-day basis.. For example, based on the reliability performance metrics for overhead and underground facilities provided to the Commission in FPL's February 28,2020 Annual Reliability Report filing, the System Average lnterruption Duration lndex ("SAlDl") for underground facilities is significantly better than hybrid facilities (combination of overhead and underground) or overhead facilities as shown in the table below: Year SAIDI2l UG OH 20 See footnote 17. 21 See pages 93-97 of FPL's February 28, 2020 Annual Reliability Report filing for more details on day-to-day reliability performance - overhead vs. underground. 24 rid 82,729 4o/oMatthew OH 3,473 O.2o/oMatthew UG 238 101 ,892 20,341 84,574 24%lrma OH 103,384 4o/olrma UG 3,767 2015 21.4 102.4 60.0 80.4 57.6201617.2 2017 17.7 89.6 55.5 21.2 89.0 54.22018 87.4 49.4201930.3 Docket No. 202OO07|-El FPL'' 2020-2029 Storm Protection Plan Exhibit MJ-1, Page 29 of 48 2. ActualiEstimated Start and Completion Dates FPL's SSUP Pilot was initiated in 2018. By the end of 2020, the third and final year of the SSUP Pilot, FPL expects to have converted a total of 220-230laterals from overhead to underground, which is consistent with the SSUP Pilot's plan most recently approved in Docket No. 20180144-El. As part of its SPP, FPL will incorporate, continue, and expand the SSUP to provide the benefits of underground lateral hardening throughout its system. After completing the SSUP Pilot in 2020, FPL estimates it will convert 300-700 laterals annually. ln 2024-2029 FPL estimates it will convert 800-900 laterals annually. 3. Cost Estimates Estimated lateral undergrounding costs are determined utilizing the length of each lateral, the average historical lateral undergrounding cost per mile, and updated cost assumptions (e.9., labor and materials). The table below provides a comparison of the 2018-2019 total actual costs for the SSUP Pilot with lhe 2020-2022 (first three years of the SPP) total estimated distribution lateral hardening program costs and the 2020-2029 total estimated distribution lateral hardening program costs: Total Annual Average ram Gosts millions P m Gosts millions Fufther details regarding the SPP estimated distribution lateral hardening program costs, including estimated annual capital expenditures are provided in AppendixC.23 4. Comoarison of Costs and Benefits As provided in Section IV(DX3) above, during 2020-2029, total costs for FPL's Lateral Hardening (Undergrounding) - Distribution Program average approximately $510 million peryear. Benefits associated with the Lateral Hardening (Undergrounding) - Distribution 22The Storm Secure Underground Program Pilotwas initiated in 2018 23 See footnote 14. 2018-201922 $76 $38 2020-2022 $676 $225 2020-2029 $5,101 $51 0 25 Docket No. 2O2O0071-EI FPL's 2020-2O29 Storm Protection Plan Exhibit MJ-1 , Page 30 of 48 Program discussed in Sections ll AND IV(DX1)(b) above, include improved storm resiliency as well as improved day-to-day reliability 5. Criteria used to Select a d Prioritize the Prooram FPL will select/prioritize future laterals for conversion to undergrounding based on an overall feeder pedormance methodology. Rather than selecting individual "stand-alone" laterals, FPL will underground all the laterals on a feeder such that when a hardened feeder that has experienced an outage is restored, all associated underground laterals would also be restored (unless the underground lateralwas damaged). On average, there are currently 20-30 overhead laterals on a feeder. The selection and prioritization of the laterals to be converted will be based on a methodology that considers: (a) all of the overhead laterals on each feeder; (b) outage experience during the recent Hurricanes Matthew and lrma; (c) the number of vegetation-related outages experienced over the most recent 10 years; and (d) the total number of lateral and transformer outages experienced over the most recent 10 years. These overhead lateral factors are totaled for each feeder, and the feeders are ranked based on these totals. All laterals on the feeders will then be hardened according to the ranking of each feeder. ln order to optimize resources and provide lateral hardening throughout FPL's system, lateral hardening projects will be performed annually in all sixteen (16) of FPL's management areas. At this time, FPL has not identified any areas where the Lateral Hardening (Undergrounding) - Distribution Program would not be feasible, reasonable, or practical. However, in areas that are more prone to flooding or storm surge, FPL will consider alternative construction methods (e.9., elevating transformer pads). E. Wood Structures Hardening (Replacing) - Transmission Program 1 n P ram and Benefi The Wood Structure Hardening (Replacing) - Transmission Program included in the SPP is a continuation of FPL's existing transmission hardening program through the end of 2022,when FPL expects that 100% of its transmission structures will be steel or concrete. 26 Docket No. 202O0071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 31 of 4B Below is an overview of FPL's existing transmission wood structure hardening program and the associated benefits. a. Overview of the Transmission Hardeninq Proqram While FPL's transmission facilities were affected by the 2004 and 2005 storms, the damage experienced was significantly less than the damage sustained by distribution facilities. A primary reason for this resulted from the fact that transmission structures were, at that time, already constructed to meet EWL consistent with Florida Statute 366.04 and the National Electrical Safety Code, Rule 250 C. Based on the forensic data collected from the 2004 and 2005 storms, FPL implemented a Commission-approved transmission storm hardening initiative to replace all wood transmission structures, which accounted for nearly 70 percent of all transmission structures replaced during the2004-2005 storm seasons, with steelor concrete structures. As explained below, this initiative is ongoing and expected to be completed by the end of 2022. As part of its SPP, FPL will continue its initiative to replace allwood transmission structures with steel or concrete structures. b. Benefits of the Transmission Hardeninq Proqram While an outage associated with distribution facilities (e.9., a transformer, lateral, or feeder) can impact up to several thousands of customers, a transmission-related outage can result in an outage affecting tens of thousands of customers. Additionally, an outage on a transmission facility could cause cascading (a loss of power at one transmission facility can trigger the loss of power on another interconnected transmission facility, which in turn can trigger the loss of power on another interconnected transmission facility, and so on) and result in the loss of service for hundreds of thousands of customers. As a result, the prevention of transmission-related outages is essential. As discussed earlier, while transmission facilities performed significantly better than distribution facilities during lhe 2004 and 2005 storms, there were several opportunities for improvement identified, including the replacement of wood transmission structures. As a result of its transmission inspection programs and its replacement of wood transmission structures, FPL's transmission facilities have demonstrated to be more storm resilient. 27 Docket No. 202O0071-El FPL's 2O20-2029 Storm Protection Plan Exhibit MJ-'l, Page 32 of 48 The table below compares the performance of FPL's transmission system for Hurricane Wilma, which occurred in 2005 before FPL implemented its current transmission hardening program, and Hurricane lrma, which occurred in 2017 afler FPL implemented its current transmission hardening program: Hurricane Wilma Hurricane lrma % Line Section Outages 37o/o 17% Transmission Structure Failures 100 5 (all non-hardened) Transmission Substations De-energized 241 92 Days to Restore Substation Outages 5 1 As shown above, the impacts on FPL's transmission facilities associated with Hurricane lrma were significantly reduced from those experienced with Hurricane Wilma, even though Hurricane lrma's winds were stronger and its path impacted substantially more of FPL's facilities. 2. Actual/Estimated Start and Completion Dates FPL implemented its transmission hardening program in 2007. As of year-end 2019,960/o of FPL's transmission structures, system-wide, were steel or concrete, with less than 2,900 (or 4o/o) wood structures remaining to be replaced. FPL expects to replace the 2,900 wood transmission structures remaining on its system by year-end 2022. 3. Cost Estimates Estimated/actual annual transmission hardening costs are a function of the number of poles to be replaced, actual historical replacement costs, and updated cost assumptions (e.9., labor and materials). The vast majority of the transmission hardening program costs are capital costs resulting from replacement of the wood transmission structures. 28 Docket No. 20200071-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 33 of 48 The table below provides a comparison of lhe 2017-2019 total actual transmission hardening costs with the 2020-2022 (first three years of the SPP) total estimated transmission hardening costs:24 Total Annual Average Pro ram Gosts illions P ram Costs millions Further details regarding the SPP estimated transmission hardening costs, including estimated annual capitalexpenditures and operating expenses, are provided in Appendix c.25 4. Comparison of Costs and Benefits As provided in Section lV(E)(3) above, during 2020-2022, total costs for FPL's Wood Structure Hardening (Replacing) - Transmission Program average approximately $39 million per year. Benefits associated with the Wood Structure Hardening (Replacing) - Transmission Program discussed in Sections ll and |V(EX1)(b) above, include improved storm resiliency. 5. Criteria used to Select and Prioritize the Program The annual prioritization/selection criteria for the remaining wood structures to be replaced includes proximity to high wind areas, system importance, customer counts, and coordination with other storm initiatives (e.9., distribution feeder hardening). Other economic efficiencies, such as opportunities to perform work on multiple transmission line sections within the same transmission corridor, are also considered. At this time, FPL has not identified any areas where the replacement of the remaining wood transmission structures under the Wood Structure Hardening (Replacing) - Transmission Program would not be feasible, reasonable or practical. 24 FPL expects that 100% of the remaining wood transmission structures in its system will be replaced by year-end 2022. 25 See footnote 14. 2017-2019 $162 $54 2020-2022 $1 18 $3e 29 Docket No. 20200071-El FPL'9 2O2O-2O29 Storm Protection Plan Exhibit MJ-1, Page 34 of 4B F. Substation Storm Surge/FIood Mitigation Program 1. Description of the Proqram and Benefits The Substation Storm Surge/Flood Mitigation Program is the only new program included in FPL's SPP. As explained below, Substation Storm Surge/Flood Mitigation Program is a new program to mitigate damage at several targeted distribution and transmission substations that are susceptible to storm surge and flooding during extreme weather events. Historically, several FPL distribution and transmission substations have been impacted by storm surge and/or flooding as a result of extreme weather conditions. For example, as a result of flooding caused by Hurricanes Matthew and lrma, FPL's St. Augustine substation was required to be proactively de-energized (i.e., shut down before water reached levels that would cause significant damage to powered substation equipment). Another example is FPL's South Daytona substation that was proactively de-energized during Hurricane lrma as a result of flooding. While proactively de-energizing those substations impacted by storm surge and/or flooding helps reduce damage to substation equipment, FPL is still required to implement both temporary flood mitigation efforts and repairs to substation facilities and equipment that become flooded as a result of extreme weather conditions. An outage associated with distribution substations can impact up to several thousands of customers, and an outage associated with a transmission substation can result in an outage affecting tens of thousands of customers. Flooding and the need to proactively de-energize substations located in areas susceptible to storm surge and flooding can result in significant customer outages. For example, the flooding and de-energization of St. Augustine and South Daytona during Hurricane lrma resulted in more than 8,000 customer outages. Therefore, the prevention of outages at transmission and distribution substations due to storm surge or flooding is essential. To prevent/mitigate future substation equipment damage and customer outages due to storm surge and flooding, FPL's new Substation Storm Surge/Flood Mitigation Program will target and harden certain substations located in areas throughout FPL's service 30 Docket No. 202OO071-E\ F PL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 35 of 48 territory that are susceptible to storm surge or flooding during extreme weather events. Specifically, FPL plans to raise the equipment at certain substations above the flood level and construct flood protection walls around other substations to prevent/mitigate future damage due to storm surge and flooding. 2. Actual/Estimated Start and Completion Dates At this time, FPL has identified between 8-10 substations where it initially plans to implement storm surge/flood mitigation measures over the next three years (2020-2022). FPL plans to initiate construction in late summer/early fall 20201o raise the equipment at the St. Augustine substation, which is expected to be completed in 2O21. ln 2021 and early 2022, FPL also plans to begin construction on flood protection walls for the other 7- 9 substations identified for mitigation, which is expected to be completed by 2022. 3. Cost Estimates The storm surge/flood mitigation costs associated with St. Augustine substation (raising substation equipment) are estimated to be approximately $10 million in total (2020 and 2021). Estimated storm surge/flood mitigation costs for the remaining 7-9 substations identified at this time (constructing surrounding flood walls) are estimated to be approximately $13 million in total (2021 and2022). See the table below the estimated annual program costs: Total Annual Average P m Gosts millions m Costs illions Further details regarding the SPP estimated storm surge/flood mitigation costs, including estimated annualcapitalexpenditures and operating expenses, are provided in Appendix c.26 4. Comparison of Costs and Benefits As provided in Section lV(F)(3) above, during 2020-2022, total costs for FPL's Substation Storm Surge/Flood Mitigation Program average approximately $8 million per year. 2020-2022 $23 $a 26 See footnote 14 31 Docket No. 20200071-El FPL's 2020-2O29 Storm Protection Plan Exhibit MJ-1 , Page 36 of 48 Benefits associated with this program discussed in Section |V(FX1) above, include improved storm resiliency (avoiding storm surge/flood damage), reduced customer outages and storm restoration costs. 5. Criteria used to Select and Prioritize Proiects The annual prioritization/selection criteria for the targeted substations is based on FPL's historical storm surge/flood experience, in particular, Hurricanes Matthew and lrma. At this time, for the targeted substations, FPL has not identified any areas where the upgrades would not be feasible, reasonable or practical. Lr,Vegetation Management - Distribution Program 1. Descriotion of the P ram and Benefits The Vegetation Management - Distribution Program included in the SPP is a continuation of FPL's existing Commission-approved Vegetation Management - Distribution Program. Below is an overview of FPL's existing Vegetation Management - Distribution Program and the associated benefits. a Overview of the Veoetation Alanaoemenf - Disfribufion Proqram Prior to 2006, FPL's Vegetation Management - Distribution Program consisted of inspecting and maintaining its feeders on a three-year average trim cycle and performing targeted trimming on ceftain feeders more frequently (e.9., targeting vegetation with faster growth rates and palm trees) through its "mid-cycle" program. Lateral trimming was prioritized based on reliability performance. Another important component of this program was FPL's "Right Tree Right Place" initiative, which provided information to educate customers on FPL's vegetation management program and practices, safety issues, and the importance of placing trees in the proper location. After the 2004-2005 storm seasons, the Commission determined that the "vegetation management practices of the investor-owned electric utilities do not provide adequate assurance that tree clearances for overhead distribution facilities are being maintained in a manner that is likely to reduce vegetation related storm damage. We believe that 32 Docket No. 2020O071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 37 of 4B utilities should develop more stringent distribution vegetation management programs."27 As result, FPL proposed and the Commission approved the continuation of FPL's system- wide three-year average trim cycle for feeders, mid-cycle targeted trimming for certain feeders, and its Right Tree Right Place initiative, as well as the implementation of a new six-year average trim cycle for laterals.28 These same initiatives, which have provided storm and day{o-day reliability benefits, remain in place today. Tree limbs and branches, especially palm fronds, are among the most common causes of power outages and momentary interruptions during both dayto-day operations and storm events. The primary objective of FPL's Vegetation Management - Distribution Program is to clear vegetation in areas where FPL is permitted to trim from the vicinity of distribution facilities and equipment in order to provide safe, reliable, and cost-effective electric service to its customers. The program is comprised of multiple initiatives designed to reduce the average time customers are without electricity as a result of vegetation-related interruptions. These include preventive maintenance initiatives (planned cycle and mid-cycle maintenance), corrective maintenance (trouble work and service restoration efforts), customer trim requests, and support of system improvement and expansion projects, which focus on long{erm reliability by addressing vegetation that will impact new or upgraded overhead distribution facilities. FPL's Vegetation Management Distribution Program's practices follow the NESC, the American National Standards lnstitute ("ANSl") A-300, and all other applicable standards, while considering tree species, growth rates, and the location of trees in proximity to FPL's facilities. Danger or hazard trees (leaning, structurally damaged, or diseased/dead that have a high likelihood to fail and impact FPL's facilities) located outside of right-of-way ("ROW"), which cannot be trimmed without approval from the property owner, are identified as candidates for customer-approved removal. Finally, a very important component of FPL's vegetation program is providing information to customers to educate them on the company's trimming program and practices, safety issues, and the importance of placing trees in the proper location - FPL's "Right Tree, 27 See Order No. PSC-06-0351-PAA-El 28 See Order No. PSC-07-0468-FOF-El 33 Docket No. 2020007l-El FPL'S 2O2O-2O29 Storm Protection Plan Exhibit MJ-1 , Page 38 of 4B Right Place" initiative. Right Tree, Right Place is a public education program based on FPL's core belief that providing reliable electric service and sustaining the natural environment can go hand-in-hand and is a win-win partnership between the utility and its customers. The SPP will continue FPL's currently-approved distribution vegetation program, which includes the following system-wide vegetation management activities: three-year cycle for feeders; mid-cycle targeted trimming for certain feeders; six-year cycle for laterals; and continued education of customers through its Right Tree, Right Place initiative. b. Benefits of the Veqetation Manaoement Distribution Proqram ln Order No. PSC-07-0468-FOF-EI, the Commission confirmed that FPL should continue to implement three-year and six-year average cycles for its feeders and laterals because the cycles complied with the Commission's storm preparedness objectives to increase the level of trimming over historical levels, promote system reliability and reduce storm restoration costs.2e Additionally, Commission's orders indicated that FPL's proposed cycles: were cost-effective; would improve dayto-day "tree SAlFl" from 0.22to 0.16 in ten years;so and would provide savings when comparing savings on a customers interrupted ("C1") per storm basis. Further, day-to-day distribution tree SAIFI has significantly improved as a result of FPL implementing its approved distribution vegetation management program (from 0.20 prior to the 2004-2005 storm seasons to 0.08 at year- end 2019). Finally, another indication that the current program is providing benefits is that, while forensic analysis indicated vegetation was the ovenryhelming primary cause for pole and wire failures and a significant cause of outages during Hurricanes Matthew and lrma, the vast majority of damage resulted from uprooted trees, broken trunks, and broken limbs 2e FPL's proposed three-year and six-year cycles were initially approved in Order No. PSC-06- O7B1-PAA-EI. 30 The tree-related SAIFI has averaged less than 0.09 over the last few years. 34 Docket No. 20200071-El FPL's 2O20-2029 Storm Protection Plan Exhibit MJ-1, Page 39 of 48 thatfell into distribution facilities from outside of right-of-way, i.e., beyond where FPL is currently allowed trim without approvalfrom the property owner. 2. ActualiEstimated Start and Completion Dates FPL's ongoing vegetation management plan was originally approved in 2007, and remains in place today. Under the SPP, FPL plans to inspect and maintain, on average, approximately 15,200 miles annually, including approximately 11,400 miles for feeders (cycle and mid-cycle) and 3,800 miles for laterals. This is comparable to the approximately 15,200 miles inspected and maintained annually, on average, for 2017- 2019. 3. Cost Estimates The vast majority of vegetation management costs are associated with cycle and mid- cycle trimming, which is performed by several FPl-approved contractors throughout FPL's system. Other vegetation management costs include costs associated with day- to-day restoration activities (e.9., summer afternoon thunderstorms), removals, debris cleanup, and support (e.g., arborists, supervision, back office support). Costs associated with vegetation management are generally operating expenses. The table below provides a comparison of the 2017-2019 total actual distribution vegetation management costs with the 2020-2022 (first three years of the SPP) total estimated distribution vegetation management costs and the 2020-2029 total estimated distribution vegetation management costs:31 Total Annual Average Pro ram Costs millions P ram Costs illions Further details regarding the SPP estimated distribution vegetation management costs, 31 The vegetation management costs shown in the table below exclude storm-related vegetation management costs. 2017-2019 $1 89 $63 2020-2022 $1 83 $61 2020-2029 $5e6 $60 35 Docket No. 20200071-El FPL'i 2020-2029 Storm Protection Plan Exhibit MJ- 1 , Page 40 of 48 including estimated annualcapital expenditures and operating expenses, are provided in Appendix C.32 4. Comparison of C osts and Benefits As provided in Section |V(GX3) above, during 2020-2029, totalcosts for FPL's Vegetation Management - Distribution Program average approximately $60 million per year. Benefits associated with the Vegetation Management - Distribution Program discussed in Sections ll and |V(GX1Xb) above, include increased storm resiliency. 5. Criteria Used to Select and Prioritize the Proqram The primary reason for maintaining feeders on a three-year average cycle, as opposed to a six-year average cycle for laterals, is that a feeder outage can affect, on average, approximately 1,500 customers as compared to an outage on a lateral line that can affect, on average, approximately 35 customers. FPL enhances its approved feeder inspection and trimming plan through its mid-cycle trimming program, which encompasses patrolling and trimming feeders between planned maintenance cycles to address tree conditions that may cause an interruption prior to the next planned cycle trim. Mid-cycle work units typically have a trim age of 12to 18 months and usually involve certain fast-growing trees (e.g., palm trees) that need to be addressed before the next scheduled cycle trim date. Additionally, customers often contact FPL with requests to trim trees around distribution lines in their neighborhoods and near their homes. As a result of these discussions with customers and/or a follow-up investigation, FPL either performs the necessary trimming or determines that the requested trimming can be addressed more efficiently by completing it through the normal scheduled cycle trimming. Cycle trimming is prioritized annually to ensure compliance with cycle schedules. At this time, FPL has not identified any areas where the Vegetation Management - Distribution Program would not be feasible, reasonable or practical. 32 See footnote 14 36 Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 41 of 4B H. Vegetation Management - Transmission Program 1. Description of the Proqram and Benefits The Vegetation Management - Transmission Program included in the SPP is a continuation of FPL's existing transmission vegetation management program. Below is an overview of FPL's existing transmission vegetation management program and the associated benefits. a. Overview of the Veqetation Manaqement - Transmission Proeram The North American Electric Reliability Corporation's (NERC) vegetation management standards/requirements serve as the basis for FPL's transmission vegetation management program. The reliability objective of these standards/requirements is to prevent vegetation-related outages that could lead to cascading by utilizing effective vegetation maintenance while recognizing that ceftain outages such as those due to vandalism, human errors, and acts of nature are not preventable. Transmission lines that must conform with these standards/requirements include lines operated at or above 200 kV or any line that is either an element of the lnterconnection Reliability Operating Limit (IROL) or the Western Electricity Coordinating Council (WECC). For FPL, just over 4,300 miles of its transmission system (or nearly twothirds of all of FPL's total transmission system) are subject to NERC's vegetation management standards/requirements. NERC's vegetation management standardsirequirements include annual inspection requirements, executing 100% of a utility's annual vegetation work plan, and to prevent any encroachment into established minimum vegetation clearance distances ("MVCD'). The key elements of FPL's transmission vegetation management program are to inspect the transmission right-of-ways, document vegetation inspection results and findings, prescribe a work plan, and execute the work plan. FPL conducts ground inspections of all transmission corridors annually for work planning purposes. During these inspections, FPL identifies vegetation capable of approaching the defined Vegetation Action Threshold ('VAT'). VAT is a calculated distance from the 37 Docket No. 20200071-El FPL's 2020-2O29 Storm Protection Plan Exhibit MJ-1 , Page 42 o'f 48 transmission line that factors in MVCD, conductor sag/sway potential, and a buffer. The identified vegetation is given a work prescription and then prioritized and organized into batches of work, which collectively become the annual work plan. For transmission lines that are subject to NERC's vegetation management standards/requirements, FPL also uses a technology called 'LiDAR," shott for light detection and ranging. L|DAR is a remote sensing technology that uses light in the form of a pulsed laser to measure ranges (distances) to a target. For vegetation management purposes, L|DAR is used to measure distance between vegetation and transmission lines. L|DAR patrols are conducted annually for all NERC transmission corridors. Data collected by the L|DAR patrols is then used to develop annual preventative and reactive work plans. ln its SPP, FPL will continue its current transmission vegetation management plan, which includes visual and aerial inspections of all transmission line corridors, LiDAR inspections of NERC transmission line corridors, developing and executing annual work plans to address identified vegetation conditions, and identifying and addressing priority and hazard tree conditions prior to and during storm season. b. Benefits of the Veqetation oement Transmission Program The benefits of a Vegetation Management - Transmission Program are self-evident and the consequences of not having a reasonable transmission vegetation management plan can be extreme. As discussed previously, the transmission system is the backbone of the electric grid. While outages associated with distribution facilities (e.9., a transformer, lateral, or feeder) can result in an outage affecting anywhere from a few customers up to several thousands of customers, a transmission related outage can affect tens of thousands of customers. Additionally, an outage on a transmission facility could cause cascading and result in the loss of service for hundreds of thousands of customers. As such, it is imperative that vegetation impacting transmission facilities be properly maintained using reasonable and appropriate cycles and standards to help ensure they are prepared for storms. For these reasons, it is no surprise that NERC has developed 38 Docket No. 2O2O0071-EI FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1, Page 43 of 48 prescriptive vegetation management requirements for transmission facilities to help prevent such damage from occurring. FPL also notes that while vegetation-related damage and transmission line outages occurred during Hurricanes Matthew and lrma, the vast majority of such damages/outages were caused by vegetation located outside of the right-of-way, i.e., beyond where FPL is currently allowed to trim without approval from the property owner, which further demonstrates that FPL's historical efforts in this area have been beneficial. 2. Actual/Estimated Start and Completion Dates FPL's Vegetation Management - Transmission Program is an ongoing program, initiated decades ago. Under the SPP, FPL plans to inspect and maintain, on average, approximately 7,000 miles annually, including approximately 4,300 miles for NERC transmission line corridors and 2,70O miles for non-NERC transmission line corridors. This is comparable to the approximately 7,000 miles inspected and maintained annually, on average, for 2017-2019. 3. Cost Estimates The vast majority of vegetation management costs are associated with annual inspections and the execution of planned work to address identified conditions, which is performed by several FPL approved contractors throughout FPL's system. Other vegetation management costs include costs associated with day-to-day restoration activities (e.9., summer afternoon thunderstorms), removals, debris cleanup, and support (e.9., arborists, supervision, back office support). Costs associated with vegetation management are generally operating expenses. The table below provides a comparison of the 2017-2019 total actual transmission vegetation management costs with the 2020-2A22 (first three years of the SPP) total estimated transmission vegetation management costs and the 2020-2029 totalestimated transmission vegetation management costs:33 33 The vegetation management costs shown in the table below exclude storm-related vegetation management costs. 39 $27 $g2017-2019 $g2020-2022 $zt 2020-2029 $e6 $10 Docket No. 202O0071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 44 ol 48 Annual Average illions Gosts illions Further details regarding the SPP estimated transmission vegetation management costs, including estimated annualcapital expenditures and operating expenses, are provided in Appendix C.3a 4. Comparison of Costs and Benefits As provided in Section |V(HX3) above, during 2020-2029, totalcosts for FPL's Vegetation Management - Transmission Program average approximately $10 million per year. Benefits associated with the Vegetation Management - Transmission Program discussed in Sections ll and |V(HX1Xb) above, include increased storm resiliency. The execution of FPL's Vegetation Management - Transmission Program is a significant factor in mitigating damage to transmission facilities and avoiding transmission-related outages. 5. Criteria used to Select and Prioritize the Proqrams Priority vegetation conditions and hazard tree conditions are completed annually prior to storm season. Additionally, prior to and during the storm season, FPL conducts aerial inspections of transmission corridors to identify hazard trees and any priority vegetation Iocations. Priority vegetation conditions and hazard tree conditions identified through aerial inspections are addressed as soon as possible. At this time, FPL has not identified any areas where the Vegetation Management - Transmission Program would not be feasible, reasonable or practical. Total ram Costs 3a See footnote 14. 40 Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1, Page 45 of 4B V. Detailed lnformation on the First Three Years of the SPP 2020-2022 A. Detailed Description for the First Year of the SPP (20201 The following additional information required by Rule 25-6.030(3XeX1), F.A.C., for the first year of the SPP (2020) is provided in Appendix E. (1) the actual or estimated construction start and completion dates; (2) a description of the affected existing facilities, including number and type(s) of customers served, historic service reliability performance during extreme weather conditions, and how this data was used to prioritize the storm protection projects; (3) a cost estimate including capital and operating expenses. A description of the criteria used to select and prioritize the storm protection programs is included in the description of each SPP program provided in Section IV. Detailed Description of the Second and Third Years of the sPP (2021-20221 Additional details required by Rule 25-6.030(3XeX2), F.A.C., for the second and third years of the SPP (2021-2022), including the estimated number and costs of projects under every program, is provided in in Appendix C. Detailed Description of the Vegetation Management Activities for the First Three Years of the SPP (2020-20221 The following additional information required by Rule 25-6.030(3Xf), F.A.C., for the first three years of the vegetation management activities under the SPP (2020-2022) is provided in n Sections IV(G) and lV(H) above and Appendix C: the projected frequency (trim cycle); the projected miles of affected transmission and distribution overhead facilities; the estimated annual labor and equipment costs for both utility and contractor personnel. A description of how the vegetation management activities will reduce outage times and restoration costs due to extreme weather conditions is provided in Sections lV(G) and lV(H) above. B c 41 Docket No. 20200071-El FPL's 202O-2029 Storm Protection Plan Exhibit MJ-1 , Page 46 of 48 Vl. Estimate of Annual Jurisd ictional Revenue Reouirements for the 2020-2029 SPP Pursuant to Rule 25-6.030(3X0, F.A.C., the table below provides the estimated annual jurisdictional revenue requirements for each year of the SPP. Estimated Annual Revenue Requirements illions While FPL has provided estimated costs by program as of the time of this filing and associated total revenue requirements in its SPP, consistent with the requirements of Rule 25-6.030, F.A.C., subsequent projected and actual program costs submitted for cost recovery through the Storm Protection Plan Cost Recovery Clause (per Rule 25-6.031, F.A.C.,) could vary by as much as 10-15%, which would then also impact associated estimated revenue requirements and rate impacts. The projected costs, actual/ estimated costs, actuals costs, and true-up of actual costs to be included in FPL's Storm Protection $257.62020 2021 $369.1 $494.32022 $625.52023 2024 $760.9 2025 $878.1 2026 $963.7 2027 $1,037.1 2028 $1,110.9 2029 $1 ,185.2 42 Docket No. 20200071-El FPL's 2020-2O29 Storm Protection Plan Exhibit MJ-1, Page 47 of 48 Plan Cost Recovery Clause will all be addressed in subsequent filings in separate storm protection plan cost recovery clause dockets pursuant to Rule 25-6.031, F.A.C.35 Vll. Estimated Rate lmoacts for Fi rst Three Years of the SPP (2020-20221 FPL anticipates the programs included in the SPP will have zero bill impacts on customer bills during the first year of the SPP and only minimal bill increases for years two and three of the SPP. An estimate of hypothetical overall rate impacts for the first three years of the SPP (2020-2022), without regard for the fact that FPL remains under a general base rate freeze pursuant to a Commission-approved settlement agreement through December 31 ,2021, as stated in footnote 36 below are based on the total program costs reflected in this filing.36 The projected costs, actual/estimated costs, actuals costs, and true-up of actual costs to be included in FPL's Storm Protection Plan Cost Recovery Clause willall be addressed in subsequent filings in Storm Protection Plan Cost Recovery Clause dockets pursuant to Rule 25-6.031, F.A.C.37 Pursuant to Rule 25-6.031, F.A.C., FPL has not identified any reasonable implementation alternatives that could mitigate the resulting rate impact for each of the first three years of the SPP. As explained above, FPL's SPP is largely a continuation of existing Commission-approved storm hardening programs and initiatives, which have already demonstrated that they have and will continue to provide increased T&D infrastructure resiliency, reduced restoration time, and reduced restoration costs when FPL's system is impacted by severe weather events. Further, as explained above, the estimated costs 35 The Commission has opened Docket No. 20200092-El to address Storm Protection Plan Cost Recovery Clause petitions to be filed the third quarter of 2020. 36 Pursuant to Rule 25-6.030(3)(h), F.A.C., the hypothetical rate impacts for FPL's typical residential, commercial, and industrial customers for the first three years of the SPP (2020-2022) without regard for the fact that FPL remains under a general base rate freeze pursuant to a Commission-approved settlement agreement through December 31,2021, are as follows for 2020, 2021, and 2022, respectively: Residential (RS-1) $0.00251/kwh, $0.00357/kwh, and $0.00478/kWh; Commercial (GSD-1) $0.81/kW, $1.1s/kw, and $1.54/kW; and Industrial (GSLDT-3) $0.05/kW, $0.08/kW and $0.10/kW. These rate impacts are for all programs included in the SPP and are based on the total estimated costs as of the time of this filing, which could vary by as much as 10% to 15o/o, regardless of whetherthose costs will be recovered in FPL's Storm Protection Plan Cost Recovery Clause or through base rates. 37 See footnote 34. 43 Docket No. 2O2O0071-El FPL's 2020-2O29 Storm Protection Plan Exhibit MJ-1 , Page 48 of 48 for the programs included in FPL's SPP are consistent with the historical costs incurred for the existing storm hardening and storm preparedness programs, which were most recently approved in FPL's 2019-2021Storm Hardening Plan. Vlll. Conclusion The Florida Legislature has determined that it is in the State's interest to "strengthen electric utility infrastructure to withstand extreme weather conditions by promoting the overhead hardening of distribution and transmission facilities, undergrounding of certain distribution lines, and vegetation management," and for each electric utility to "mitigate restoration costs and outage times to utility customers when developing transmission and distribution storm protection plans." Section 366.96(1), F.S. Based on these findings, the Florida Legislature concluded that it is in the State's interest for each electdc utility to develop and file a SPP for the overhead hardening and increased resilience of electric T&D facilities, undergrounding of electric distribution facilities, and vegetation management. See Sections 366.96(1)-(3). FPL's SPP is a systematic approach to achieve the legislative objectives of reducing restoration costs and outage times associated with extreme weather events and enhancing reliability. As explained above, FPL's SPP is largely a continuation and expansion of its existing and already successful storm hardening and storm preparedness programs previously approved by the Commission, as well as a new storm hardening program to harden certain targeted substations that are susceptible to storm surge or flooding during extreme weather events. Based on the recent experiences of Hurricanes Matthew and lrma, the existing storm hardening programs have a demonstrated and proven track record of mitigating and reducing restoration CMH, outage times, and storm restoration costs, as well as improving day-to-day reliability. FPL's SPP will continue and expand these important benefits to customers and the State. 44 Docket No. 2O2OOO71-E\ FPL's 2020-2O29 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 1 of 18) APPENDIXA (FPL's 3rd Supplemental Amended Response to Staffs lst Data Request) Docket No. 2O200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 2 of 18) Florida Power & Light Company Docket No. 20170215-EU Staffs First Data Request Request No. 29 - Third Supplemental Amended Page 1 of9 OUESTION: Please complete the table below summarizing hardened facilities that required repair or replacement as a result of Hurricanes Matthew, Hermine, Irma, Maria, and Nate. RESPONSE: FPL does not maintain its accounting records at the level of detail required to provide the requested information as they do not differentiate hardened facilities from non-hardened facilities, nor do they track which assets were repaired. However, FPL does track certain assets, at the total system level, that were requested and replaced during each hurricane as reflected in the tables below. Note, FPL did not track storm repairs/replacements for Hurricanes Maria and Nate as Hurricane Maria did not impact FPL's service territory and Nate had limited impact. Also, Hunicanes Matthew and Irma capital details associated with follow-up work are not yet available by plant account as these costs have not yet been unitized from account 106 to account l0l by plant account. Hurricane Matthew Number of Facilities Requiring Repair Replacement Transmission Structures N/A 0 Substations N/A 0 Total N/A 0 Distribution Poles N/A 656 Substation N/A 0 Feeder OH N/A 0 Feeder UG N/A 0 Feeder Combined N/A 0 Lateral OH N/A N/A Lateral UG N/A N/A Lateral Combined N/A N/A Total N/A N/A Service Service OH N/A N/A Service UG N/A N/A Service Combined N/A N/A Total N/A N/A Docket No. 202O0071-El FPL'i 2020-2029 Storm Protection Plan Exhibit MJ-'l, APPENDIX A (Page 3 of 1B) Florida Power & Light Company Docket No. 20170215'EU Staff s First Data Request Request No. 29 - Third Supplemental Amended Page2 of9 Hurricane Hermine Number of Facilities Requiring Repair Replacement Transmission Structures N/A 0 Substations N/A 0 Total N/A 0 Distribution Poles N/A 19 Substation N/A 0 Feeder OH N/A 0 Feeder UG N/A 0 Feeder Combined N/A 0 Lateral OH N/A N/A LateralUG N/A N/A Lateral Combined N/A N/A Total N/A N/A Service Service OH N/A N/A Service UG N/A N/A Service Combined N/A N/A Total N/A N/A Docket No. 2020O071-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 4 of 1B) Florida Power & Light Company Docket No.20170215-EU Staffs First Data Request Request No. 29 - Third Supplemental Amended Page 3 of9 Hurricane Irma Number of Facilities Requiring Repair Replacement Transmission Structures N/A 0 Substations N/A 0 Total N/A 0 Distribution Poles N/A 3,562 Substation N/A 0 Feeder OH N/A 0 Feeder UG N/A 0 Feeder Combined N/A 0 Lateral OH N/A N/A Lateral UG N/A N/A Lateral Combined N/A N/A Total N/A N/A Service Service OH N/A N/A Service UG N/A N/A Service Combined N/A N/A Total N/A N/A Notes: For Huricane Matthew, there is a difference of 248 poles between what is provided in this discovery response for total poles replaced (656 poles) and what is provided in FPL's post-storm forensic review report for Hurricane Matthew (provided in FPL's response to Staff s Second Data Request No. 2 in this same docket) for poles that failed and needed to be replaced to restore seruice (408 poles). The difference is associated with poles replaced during "follow-up" - i.e., poles that were damaged (e.g., a cracked pole) as a result of the storm and needed to be replaced to restore the pole to its pre-storm condition - but did not fail during the storm and, thus, did not need to be replaced to restore service. As mentioned above in FPL's response to this data request, FPL's accounting records do not differentiate hardened facilities from non-hardened facilities and FPL did not track or maintain forensic information on the 248 distribution poles replaced as a result of follow-up work. As a result, FPL does not have a hardened vs. non- hardened breakdown for the 248 distribution poles replaced during follow-up work. Docket No. 20200071-El FPL'I 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 5 of 18) tr'lorida Power & Light Company Docket No. 20170215-EU Staffs First Data Request Request No. 29 - Third Supplemental Amended Page 4 of9 The distribution pole and transmission structure counts provided above represent the amount of pole/structure replacements FPL has recorded on its books and records associated with Hurricane IrmaasofDecember3l,20lT. Theseamountsshouldbeconsideredpreliminaryatthistimeas they are subject to change (e.g., the counts do not reflect poles that will be replaced during follow-up work, which has yet to be completed). N/A - Information is not available at this level of detail in FPL's accounting records. For substations and feeders, FPL has stated 0 since no entire substation or feeder was replaced. However, these facilities consist of many pieces of equipment (e.g., wire, cable, breakers, transformers, cross arms and arrestors) some of which may have been replaced. 20 1 6/20 1 7 Hu rricanes - FPL Restoration/Infrastructu re Perform ance FPL's infrastructure/restoration performance for Huricanes Matthew (2016) and Irma (2017) demonstrates that the implementation and execution of its FPSC-approved (1) ten storm preparedness initiatives (which includes vegetation management): (2) pole inspection programs; (3) storm hardening plans; and (4) tariffs to incent municipal overhead to underground conversions have provided great benefits to FPL's customers and to the State of Florida. During 2016 and 2017, FPL's service territory was threatened with massive Category 4 and 5 storms. The size and scale of these storms impacted FPL's infrastructure throughout its entire service territory (which encompasses 35 counties in the State of Florida). For both Matthew and Irma, FPL's infrastructure storm resiliency and smart grid investments resulted in improved infrastructure resiliency performance and reduced restoration times. 201 612017 ffrrrricanes -Performance FPL saw significant improvements in overall restoration results. As can be seen in the table below, restoration results for Hurricanes Matthew and Irma show significant improvement vs. Hunicane Wilma. FPL attributes these significant improvements in restoration to the investments made to make its system smarter and more storm-resilient as well as its well-tested restoration processes. This includes FPL's distribution and transmission storm hardening and storm preparedness initiatives, pole inspection programs, smart grid initiatives, vegetation management programs and continuous efforts to improve its restoration processes. Customer Outases 3.2M 1.2M 4.4M % Restored / davs s0%/s 99%/2 so% h All restored / davs 18 4 10 Avg. to restore / davs 5.4 <1 2.r Docket No. 2020O071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 6 of 18) Florida Power & Light Company Docket No. 20170215-EU Staffs First Data Request Request No. 29 - Third Supplemental Amended Page 5 of9 201612017 Hurricanes -Performance To assess the effectiveness of FPL's infrastructure storm hardening investments, the Company utilizes information collected through post-storm forensic data collection and various systems (e.g., FPL's outage management system) to conduct post-storm infrastructure performance analysis. These efforts and analysis allow FPL to quantify and assess its distribution and transmission infrastructure performance including the performance of: hardened and non- hardened facilities; overhead and underground facilities; and smart grid performance. For distribution, this includes reviewing the storm performance of poles, feeders and laterals. For transmission, this includes reviewing the storm performance of poles/structures, line sections and substations. The data demonstrates that hardened infrastructure performed better than non- hardened infrastructure, underground facilities performed better than overhead facilities and smart grid devices prevented a significant number of outages from occurring' Distribution/Transmission Poles/ Structures Performance The performance of FPL's approximately 1.2 million distribution and transmission poles/structures during Hurricanes Matthew and Irma was excellent, as hardened poles and structures performed as expected by minimizing outages and reducing restoration times. The total number of dislribution/transmission poles that failed (i.e., had to be repaired/replaced in order to restore service) during Hurricanes Matthew and Irma was a mere fraction of lo/o of the 1.2 million pole/structure pole population. Additionally, hardened distribution and transmission pole performance was significantly better than non-hardened pole performance, as hardened pole failures were either non-existent (e.g., Hurricane Matthew) or significantly less than non-hardened pole failures (e.g., during Hurricane Irma, hardened feeder poles had a 0.02Yo failure rate, while non-hardened feeder poles had a 0.20% failure rate). Also, total poles replaced (i.e., poles that failed + poles that were replaced during follow-up work) were also a mere fraction of lo/o of the total pole population and significantly less than the number of poles replaced during Huricane Wilma. FPL notes that for Hurricanes Matthew and Irma, while it did track hardened vs. non-hardened pole performance during restoration, it did not track poles replaced (hardened vs. non-hardened) during follow-up work, since these poles had accomplished their intended purpose of not failing during the storms. Therefore, FPL cannot provide the number of hardened poles replaced during follow up work in Hurricanes Matthew and Irma. Based on the performance of hardened poles that failed during these storms (see table below), it is highly unlikely that there would be a significant number of hardened poles, if any, that needed to be replaced during follow-up work. However, going forward, should the Commission want FPL to track replacement of hardened vs. non-hardened poles during follow-up work, FPL will begin to track this information. FPL attributes this excellent pole performance to its FPSC-approved distribution and transmission storm hardening plan initiatives (e.g., extreme wind load construction standards for distribution poles and replacing wood transmission poles/structures) and its pole inspection programs. Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 7 of 18) Florida Power & Light Company Docket No. 20170215-EU Staffs tr'irst Data Request Request No. 29 - Third Supplemental Amended Page 6 of9 Distribution P oles l2l3 1 I l7 Total Number Total Hardened 1,188,202 t24,5lg* * This number is understated as it includes only poles hardened as a result of FPL's approved hardening plan projects, as FPL does not track or maintain the number of hardened poles installed as a result of new construction (e.g., new feeders or laterals) andlor daily work activities (e.g., maintenance, pole line extensions, relocation projects). There are also other existing poles throughout FPL's service territory that would currently meet the NESC's extreme wind loading criteria and therefore qualii/ as a hardened pole, however, FPL does not currently track or maintain that information. *Broken/Fallen poles that must be repaired/replaced to restore service Transmission Pole/Structures l2l3 L I l7 Total Concrete Wood 66,685 60,694 (91%) 5,991 (9%) *Broken/Fallen poles that must be repaired/replaced to restore service Distribution Feedersllaterals Performance As demonstrated below, FPL's hardened feeders performed significantly better than non- hardened feeders and underground feeders/laterals performed significantly better than overhead feeders/laterals. Performance was compared considering feeder and lateral outages that occurred during Hurricanes Matthew and Irma. It is also important to note that during Hurricane Irma, the Construction Man Hours ("CMH") to restore hardened feeders was 50% less than non-hardened feeders, primarily due to hardened feeders experiencing less damage than non-hardened feeders. It is important to note that the majority of outages for overhead facilities resulted from trees that broke andlor fell into FPL's facilities. Many of these trees were outside of easements or public rights of way where FPL is generally allowed to trim. As a result, no additional amount of Matthew - 2016 0 408 408 lrma-2OL7 26 2834 2860 Matthew - 2016 n 0 0 lrma - 2Ot7 0 5 5 Docket No. 20200071-El F PL's 2O2O-2O29 Storm Protection Plan Exhibit MJ-1, APPENDIX A (Page 8 of 18) Florida Power & Light Company f)ocket No. 20170215-EU Staff s First Data Request Request No. 29 - Third Supplemental Amended Page 7 of 9 traditional tree trimming would help mitigate this issue. Tree damage was particularly impactful on FPL laterals. The two tables below provide feeder and lateral outage performance statistics for Hurricanes Matthew and Irma. Pop : poputuaton; Lateral population includes laterals witl-r rnulti-stage fusing Pop : Population; Latelal population includes laterals with multistage fusing FPL notes that, overall, for Hurricane Irma, many more laterals experienced outages compared to feeders, thus laterals required significantly more time to restore (871,000 CMH) compared to feeders (170,000 CMH). FPL continues to promote its Right Tree Right Place initiative and recommends there be changes to state laws and/or local ordinances to restrict the type and location of trees and provide utilities additional trimming rights to address existing tree conditions.l Additionally, FPL notes that day-to-day, hardened feeders perform approximately 40o/" better than non-hardened feeders. Transmission Line Sections/Substations Performance The transmission system's performance was excellent during Hurricanes Matthew and Irma. Equipment and conductor damage was minimal as a result of our investments in transmission hardening and the installation of flood monitoring equipment in those substations located in flood prone areas. Substations that experienced outages were restored in one day. During Hurricanes Matthew and Irma, flood monitoring equipment operated as expected, providing notification which allowed FPL to proactively de-energize three substations (one in Matthew and two in Irma) and prevent potential serious damage from occurring at these substations. I Where municipalities are not actively engaged in ensuring appropriate limitations on planting trees in public rights of way, restoration efforts are impeded and made more costly. In fact,-one particular municipality is actively planting "wrong trees in the wrong place," in spite of FPL's direct communications and efforts to encourage its Right Tree Right Place initiative. Matthew Overhead non-Hardened Overhead Hardened Underground Total Out Pop % Out Out Pop % Out Out Pop o/o Out Out Pop %Ottt Distribution Feeders 280 2,031 r4%68 -121 9o/o r.493 359 3,245 t3% Distribution Laterals 3,413 82,729 4%N.A.N.A.N.A.238 101,892 0.2%3,711 1,84,62r 2% IRMA.2017 Overhead Non-Hardened Overhead Hardened Underground Total Out Pop % Out Out Pop % Out Out Pop lo Out Out Pop o/o Out Distribution Feeders 1-,609 1,958 82%592 859 69%B5 410 18o/"2,286 3,287 10% Distribution Laterals 20,34r 84,574 24%N.A.N.A N.A.3,767 103,384 24,rOB 187,958 13% Docket No. 2O2OO071-E\ FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 9 of 1B) Florida Power & Light Company Docket No. 20170215-EU Staffs First Data Request Request No. 29 - Third Supplemental Amended Page 8 of 9 The tables below provide substation line section outage performance for Hurricanes Matthew and Irma. * 2 sections were out because substation was proactively de-energized due to flooding** 4 sections were out because substations were proactively de-energized due to flooding*** No underground section was damaged or failed causing an outage; howevero the sections were out due to line termination equipment in substations. The table below compares substation outage and restoration performance - Irma vs, Wilma. Smart Grid Performance During Humicane Matthew and Irma, smart grid devices prevented a significant amount of customer outages, assisted with restoration efforts and reduced restoration time and costs. Specifically, automated feeder switches avoided approximately 664,000 outages during Hurricanes Matthew and Irma. Additionally, FPL's restoration crews are able to "ping" smart meters before leaving an area to ensure that power is, in fact, restored. This prevents restoration crews from leavingan are1 thinking all power was restored, only to be called back when the customer informs FPL that they are still without service. FPL is also enhancing an application, first utilized during Hunicanes Matthew and Irma, whereby it will be able to "bulk meter ping" smart meters to confirm whether customers have service. Trans. Line Sections L5 3s0 5%23*846 3o/o 0 49 o%39 1,245 3% i,.r)t ', ,(:Jr.L, i{'JL,r,illl- :lliri\irl );.1 l:i aiLl 'lfjt, aJlii 1'1. !, ,t,) i:lriiir,ti:i4rir ti f t;. .Jl,lr):\ ). flf/r Ji:;f i t: I i: i ilLr'/l.trl:lr, ,,. a ]\t. ( jl/.irji r,,,if''ri: r;i.,l,L;!i I i, lri.r.: :\ Trans. Line Sections 60 306 20%742**884 t6%13x **51 25o/"275 124r t7% ' '1, atlL I iliitr rrritJ;t{jl I.t;f f it:t.;',,i 1, i:l( j 'tall {:li ii ll, cl r l.; 'lt, (tl( I i i!/:).lil t;l{il *i.1.r. .{"i1,.!.'rf'tr l i,J:i i L:li r.j..jt:ctr trlt {rt r. I:,,J r:.1 i'Jt'!:a]rl iiiifrl, )t1.1. De-energized 241,92 Restored {Davs)5 1 Matthew - 2016 118,000 lrma - 2O17 s46,000 ' tr , . :, ,. ,)./ r-l I L!\J..J1 . l rjr . ,rt.l i:.)rft.J Docket No. 20200071-El FPL'S 2O2O-2O29 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 1 0 of 18) tr'lorida Power & Light Company Docket No. 20170215-EU Staffs First Data Request Request No. 29 - Third Supplemental Amended Page 9 of9 Estimate of Storm Restoration Cost Savinqs Due to Hardening based on Storm Damage Model Simulation The attached analysis provides an estimate of transmission and distribution storm restoration savings for Hunicanes Matthew and Irma that resulted from storm hardening completed by FPL prior to the storms' impacts. To calculate these savings, FPL utilized its Storm Damage Model (the same model FPL utilizes to estimate damage when a storm approaches FPL's service territory) to simulate damage that likely would have occurred without hardening and determine the associated required construction man hours (CMH) that would have been required to restore service in the absence of hardening, days to restore in the absence of hardening and associated incremental restoration costs. Additionally, FPL calculated the 4O-year net present value of these savings for two scenarios - (l) a similar storm occurs every 3 years; and (2) a similar storm occurs every 5 years. As indicated on the attached analysis, the 40-year net present values of the savings related to storm hardening are significant. In the absence of hardening the estimated percentage increase in CMHs for Hurricane Matthew and Hurricane Irma restoration would have been significantly higher (36Yo and 40o/o, respectively), days to restore would have been increased (50%o and 40%o, respectively) and restoration costs would have been greater (36%o and 40%o, respectively). Florida Power & Light Company Docket No. 20170215-EU Staffs First Data Request Request No. 29 - Third Supplemental Amended Attachment No. L Tablof5 Docket No. 2O200071-El FPL's 2O20-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 1 1 of 18) Estimate of Storm Restoration Cost Savinss Due to Hardening based on Storm Damaee Model Simulation tll I2l I31 Construction Man-Hours I4I tsl 161 l7l to Restore I81 Yo lncrease without Hardening 50% 40% Additional Days to Restore without Hardening 2 4 Modeled System Without Hardening 6 1,4 Actual 4 10 tel [r0] [111 Storm Restoration Costs I 12l Y" lncrease without Hardening 36% 40% Additional Storm Restoration Costs without HardeninE s105 s496 Modeled System without Hardening s39s sL.722 Actual s290 sr.226 [13] 40 Yr NPV [141 Storm Matthew lrma Notes: All costs and CMH are Transmission and Distribution only, and exclusive offollow-up work I I I Calculated based on actual storm restoration requirements [2] FPLstormdamagemodelsimulationresultsofCMHincurredwithouthardening [ 3 I Additional CMH without hardening (Col. 2 - Col. 1) [ 4] Percent increase in CMH without hardening (Col. 3/Col. L) [ 5 I Actual days to restore seruice [ 6 I Storm damage model simulation result ofthe days to restore seruice without hardening (assumes same restoration resources as actual) [ 7 I Additional days to restore without hardeninB (Col. 6 - Col. 5) [ 8 I Percent increase in days to restore without hardening {Col. 7/Col. 5) [ 9 I Actual cost of restoration. lrma costs are preliminarv [ 10 I Storm damage model simulation result of restoration costs without hardening [ 11 ] Additional restoration costs without hardening (Col- 10 - Col.9) I 12 ] Percent increase in restoration costs without hardening ((Col. L7/Col.9\ [ 13 I 40 year net present value savings assuming a similar storm everythree years {ca]culation details attached) [ 14 ] 40 year net present value savings assuming a similar storm everyfrve years (calculation details attached] 0/6 lncrease without Hardening 36% 40% Additional CMH without Hardening 93,000 483.000 System Modeled Without Hardening 3s0.000 1.678.000 Actual 257,000 1.195.000 40 Yr NPV Savings Every 5 Years (2017sl s406 s1.,91s 40 Yr NPV Savings Every 3 Years (2oL7sl S6s3 s3.082 Docket No. 20200071-El FPL'S 2o2o-2o29 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 12 o'f 18\ Florida Power & Light Company Docket No. 20170215-EU Staff's First Data Request Request No. 29 - Third Supplemental Amended Attachment No. 1 Tab2of5 $1os So So $113 5o so s121 So $o S13o $o $o Si_39 slso So So $rer $o $o S173 so $o Slss So So Estimated Storm Restoration Costs Savings due to Hardening (SMM) 40-Year NPV (20175) Matthew Savings Everv 3 vears Everv 5 vears S6s3 $406 Discount Rate = 7.76% So So L 2 3 4 5 6 7 8 9 10 L1. 12 13 L4 15 L6 17 18 19 20 2t 22 23 24 25 26 21 Slos So So $o $o Sr.i_8 so So So So S133 So So $o $o slso So So So So $169 so $o $o So Sleo $o cPl Multiplier 1.000 1.024 1.049 1.076 1.105 1.124 1.152 1.179 1.206 1.233 1.260 1.288 1.317 1.346 1.375 1.404 1.434 1.464 1.495 1.526 1.558 1.590 1.623 1.656 '1.691 1.727 1.763 Matthew L05 ro7 110 113 115 118 121 L24 r27 130 s133 s136 S13e S143 S146 slso S1s3 Si.s7 Si-G1 S16s $r"6s Si.73 $117 s181_ 518s sleo S1s4 cPl 2.1% 2.4% 2.4% 2.6% 2.t% L.7% 2.5% 2.4% 2.3% 2.2% 2.2% 2.2% 2.2% 2.2% 2.2% 2.1% 2.L% 2.r% 2.I% 21% 2.1% 2.1% 2.1% 2.L% 2.r% 2.t% 2.L% $ s s s s 5 $ $ $ s Year Matthew Savings Everv 3 vears Everv 5 vears Docket No. 20200O71-El FPL's 202O-2029 Storm Protection PIan Exhibit MJ-1 , APPENDIX A (Page 13 of 1B) 28 29 30 31 32 33 34 35 36 37 38 39 40 51ee So So Szr4 So So s23o $o so 5246 $o so s26s So $o So 521.4 So So so So 5z4L So So $o So 21% 2.2% 2.2% 2.r% 2.2% 2.Lo/o 2.r% 2.r% 2.1% 2.L% 2.L% 2.7% 2.7% 1.801 1.840 1.880 1.920'1.962 2.004 2.047 2.090 2.135 2.180 2.226 2.274 2.322 Slss s204 s2oe $2r4 s21s s224 S23o s23s iz+t $246 Szsz S2s8 s26s NPv (20u$)s6s3 S406 Docket No. 20200071-El FPL's 2O2O-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 14 of 18) Florida Power & Light Company Docket No. 20170215-EU Staff's First Data Request Request No. 29 - Third Supplemental Amended Attachment No. 1- Tab3of5 Estimated Storm Restoration Costs Savings due to Hardening ($MMl 40-Year NPV (2017S) lrma Savings Everv 3 vears Everv 5 vears $3,082 S1,915 Discount Rate = 7.76% 96St S4s6 5o So $s:z So $o ss71 $o $o S6r-3 'J. 2 3 4 5 6 7 8 9 10 LL 12 13 t4 15 L6 17 18 19 20 2t 22 23 24 25 26 27 So $o s6ss so So 57Ol so So sTss So $o s8Ls $o So Ss76 So $o $4s6 So So SO So Ssss So So 5o So $62s $o so so So $tot so so So $o cPr 21% 2.4% 2,4% 2.6% 2.t% L.1% 25% 2.4% 23% 2.2% 2.2% 2.2% 2.2% 2.2% 2,2% 21% 2.1% 2J% 2.L% 2,1% 2.1% 2.r% 2.1% 2.r% 2.r% 2.t% 2.1% lrma S4s6 SsoT Ss20 Ss32 Ss+s sss8 Sszr ssss Sses S6r"3 s62s s543 $6ss $atq S6s1 5707 5tz+ 5742 $7ss 5178 s796 S81s s83s $8ss Ss76 S8s7 Ssi"s So So So So $897 so cPt Multiplier 1.000 1.024 1.049 1,076 1.105 1j24 1.152 1.179 1.206 1.233 1.260 1.288 1.317 1.346 1.375 1.404 1.434 1.464 1.495 1.526 1.558 1.590 1.623 1.656 1.691 1.727 1.763 Year Matthew Savings Everv 3 vears Everv 5 vears Docket No. 2O20OO71-E\ FPL'g 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 15 of 1B) 28 29 30 31 32 33 34 35 36 37 38 39 40 so so s1,084 $o So Ss4o SO So S1,oo9 51,L64 $o So s1,250 so $o $o Si.,oo9 So So So So S1,136 $o So $o $o 2.I% 2.2% 2.2% 2.1o/o 2.2% 2.L% 2.I% 2.1% 2.t% 2.L% 2.L% 2.1% 2.I% 1.801 1.840 1.880 1.920 1.962 2.404 2.047 2.090 2.135 2.180 2.226 2.274 2.322 Ss4o se63 Ss86 $t,oos S1,034 Sr,oss S1,084 S1,110 S1,136 s1,164 5t,tsz 5t,2zo $1,250 NPV (2017$)S1,915s3,082 Docket No. 20200O71-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 16 of 18) Florida Power & Light Company Docket No. 20170215-EU Staff's First Data Request Request No. 29 - Third Supplemental Amended Attachment No. 1 Tab4of5 FPL WEIGHTED AVERAGE COST OF CAPITAL STATE INCOME TAX FEDERAL INCOME T 5.50% 21.OOo/o COMPOSITE INCOME TAX RA] 25,35O/O MODEL DATE:1-Jan-1 8 Debt Cost Based on Blue Chin Cornorate Aaa and Bbb Bonds AFTERTAX PRETAX SOURCE n/EIGHT(1) coST(2)/TD COST /TD COST /TD COST DEBT COMMON 40/0% 59.60% 4.88o/o 10.55% 1.97o/o 6.29% 147% 6.29% 1.97% 8.42% TOTAL 100.00%8.26% 7.76% 10.39% AFTER-TAX WACC 7.760/" Docket No. 20200071-El FPL'I 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 17 of 1B) Florida Power & Light Company Docket No. 20L70215-EU Staff's First Data Request Request No. 29 - Third Supplemental Amended Attachment No. 1 Tab5of5 Consumer Prices (1982-84=1.000) All-Urban (Forecast adjusted to match budget assumptions) lndex % Change 2009 2.1454 20LO 2.1806 1.64% 201.1. 2.2494 3.1,6% 2012 2.2959 2.07% 2013 2.3296 1.46% 20t4 2.3674 r.62% 2015 2,3702 0.L2% 20L6 2.4001, 1.26% 20L7 2.4512 2.L3% 2018 20L9 2020 2027 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031, 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2.5100 2.5703 2.6371. 2.t083 2.1553 2.8231. 2.8909 2.9569 3.0228 3.0895 3.1573 3.2270 3.2981 3.3693 3.441.1 3.5142 3.5887 3.6642 3.7408 3.8187 3.8972 3.9779 4.0603 4.t449 4.2324 4.3226 4.4153 4.5LO4 4.6077 2.40o/o 2.40% 2.60% 2.70% 1..73% 2.46% 2.40% 2.28% 2.23% 2.21% 2.I9% 2.2r% 2.20% 2.1.6% 2.13% 2.L2% 2.12o/o 210% 2.O9% 2.08% 2.060/o 2.O7% 2.O7% 2.08% 2.1,1o/o 2.r3% 2.L5% 2.1.5% 2.16% Budget Assumptions 2.40% 2.40% 2.6A% 2.70% Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 1B of 1B) 2047 2048 4.7067 4.8099 2.r5% 2.L9% 2049 2050 2051 2052 2053 2054 205s 20s6 2051 4.9122 5.0167 s.1233 s.2323 5.3435 5.4572 5.5132 5.6917 5.8128 2.1-3% 2.13% 2.13% 2.L3% 2.13% 2.13% 2.L3% 2.I3%o 2.L3% Actuals thru 2017 from BLS APPENDIX (FPL's Management ] _** _J I lIJ I i lt I 3 lf Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX C (Page I of 2) APPENDIXC (FPL's 2020-2A29 Estimated SPP Costs) 2O2o-2O29 tPL 5?P Program Costs/Activities Docket No. 202OO071-E\ FPL'S 2020-2029 Storm Protection PIan Exhibit MJ-1, APPENDIX C (Page 2 of 2) Distribution - Pole lnspections Operating Expenses Capital Expenditures Total # of Pole lnspections Transmission - lnspections Operating Expenses Capital Expenditures Total # of Structure lnspections Distribution - Feeder Hardenine (1) (2) Operating Expenses capital Expenditures Total # of Feeders (3) Distribution Lateral Hardeninq (1) (21 Operating Expenses Capital Expenditures Total # of Laterals (3) Transmission - Replacing Wood Structures Operating Expenses Capital Expenditures Total # of Structures to be Replaced Distribution - Vegetation Manasement Labor - Contractor tabor - FPL Equipment - Contractor Equipment - FPL Total # of Miles Maintained Transmission - Vegetation Management Labor - Contractor Labor - FPL Equipment - Contractor Equipment - FPL Tota I # of Miles Maintained Substation Storm surge/Flood Mitisation Operating Expenses Capital Expenditures Total # of Substations s 61".1 s 61.3 s 60.2 s r-5,200 15,200 1.5,200 in mil 3.8 s 3.8 s 3.e s 3.s s 4.0 s 4.1 s 4.2s 3e.1 s 3.e s5.3s ss.3s s5.4s s7.8s s9.3s 60.8s 52.3s s55.1s s6.6 s s4.ss s7.9s s7.9s s9.0s s9.1s 60.3s 51.8s 53.35 64.9 s 66.ss 60s.2s 60.s 150,000 L50,000 r"s4,000 154,000 l-s4,000 154,000 154,000 154,000 1s4,000 154,000 27.9 1.Os 1".0s 1.0s 1.0s 1.05 1.0s r..0s 10.ss 1.0 67.ss s4.6s s2.0s s3.3s s4.6s s6.0s s7.4s 489.0s 48.9 s 3s.8 5 32.2 S 28.9 S 58.s S ss.6 S s3.0 5 s4.3 S ss.7 S s7.0 S s8.4 S 499.s S s0.0 68,000 68,000 68,000 68,000 58,000 68,000 58,000 68,000 68,000 68,000 s 62S.1s 564.ss 654.es s73.3s 474.s9 200.0s - 5 - 5 - S - S3,20s.8S 534.3 s 628.1 s 664.9 s 654.9 s s73.3 5 474.5 5 200.0 S - S 5 $ S 3,205.8 S 534.3 300-350 300-350 300-350 300-350 250-350 3.8 s s0.7 s 3.8 54.1 1.0 31.2 s 5 3.8 54.1 s 5 34.5 s s 1.05 s s s s!2O.45212.ss342^8s47s.6s63r..4s631.45647.2s663.4s679.9s596.9ss,101.4ss10.1s 120.4 220-230 5212jS342.8547s.6S631.4$631.45647.2S553.45679.9S696.9Ss,101.4Ss10.1 300-350 400-500 600-700 800-900 800-900 800-900 800-900 800-900 800-900 o.2s 0.2 s 0.2 s s s 5 s s s s 0.5 5 0.2 s s2.7s 42.7s 21.ss - s - 5 - s - s - s - 5 - s 117.3s 3e.1 s s2.e s 42.s s 22.r s - s s s s s 5 s. x17.e s 3s.3 1,400-1,600 900-1,100 300-500 s 5 s s 47.7 1.3 11.9 0.1 s s s s s s 47 -8 1".4 12.o u.i 6.7 0.5 r.7 0.1 8.9 ,000 10.0 46.9 r.4 tl.7 0.1" s 5 5 s s ) ) s 46.9s47.ts47.t 1".ss 1.ss 1.6 r.1.7s 11.8s 11.8 o.1s 0.1s 0.1 60.25 50.6S 50.5 15,200 15,200 L5,200 s8.s s s7.4 s s6.4 5 15,200 15,200 75,200 463.7 5 46.4 74.7 5 1.5 115.9 s 1r-.6 1.4 s 0.1 23.0 7.7 7.7 s9s.7 s s9.6 r"0.7s 96.4s 9.6 45.5 1.5 rl.4 0.1 46.3 1.5 IL.6 0.1 5 ) s s s 5 ) s s 44.6 L.5 u.2 0.1 s s s s 43.8 s 1.5 I 11.0 s 0.1 s s 59.5 15,200 s s 5 s 5 s s s s 5.7 s 0.5 s 1.7 5 0.1 s 6.7 s 0.s 5 1.7 s 0.1 s 7.2 5 0.6 s 1.8 s 0.1 s 6.6 0.5 0.1 s 5 s s 7.2 0.5 1.8 0.1 s s s s 7.4 s 7.6 s 7.8 s 7.9 5 7r.7 5 7.2 0.6s 0.6s 0.5s 0.6s s.3s 0.s r".85 1.sS 1.s5 2.oS r7.s$ 1.8 o.1s o.1s 0.15 o.2s 1.4$ 0.1s s.os 8.e s s.0 s 9.7 s s.7 s s.s s 10.2 s 10.4 5 7,000 7,000 7,000 7,000 7,ooo 7,000 7,0007,000 7 7,OOO s s 23.O s s ss s s s 5 s ss 3.0 s s s 10.0 10.0 to7 10.0 2 3.0 L I s s s s s Total SPP Costs (1") Project level detail for 2020 in Appendix {2) Costs include previous year(s) projects carried over to current year's project costs and future year's preliminary project costs (e.9., engineering) (3) # of feeders or lateral to be initiated in the current year 5s64.7S1,090.7S1,1es.85r,24s.6S1,290.9S1,014.eS832.7S851.0S85e.7$889.0Sx0,24s.05r,27r.L Total SPP Costs An n ual Average Cost2022FPL SPP Programs 20272026202s202420232021,2020 2028 2029 Docket No. 20200071-El FPL's 2020-2O29 Storm Protection Plan Exhibit MJ-1 , APPENDIX D (Page 1 of 14) APPENDIXD (FPL's Hardening Design Guidelines) Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX D (Page 2 of 14\ @FPL Distribution Design Guidelines The following guidelines will be used to standardize the design of FPL's overhead distribution facilities when practical, feasible, and cost effective. General 1. FPL has made a change to adopt Extreme \Mnd loading (EWL) as the design criteria for: (1) new pole line construction, (2) pole line extensions, (3) pole line relocations, (4) feeder pole replacements on multi-circuit pole lines, and (5) feeder pole replacements on Top-ClF feeders. Reference the Pole Sizing section (pg. 7) for the guidelines to determine the necessary pole class and type for all work. Refer to the Distribution Engineering Reference Manual Addendum for calculating pole sizes for specific framing under extreme wind loading conditions. 2. For maintenance, existing non-top-ClF pole lines may be evaluated using NESC combined ice and wind loading with Grade B construction. This represents the loading prior to the adoption of extreme wind loading. lf the pole must be replaced, refer to the Pole Sizing section for the minimum class pole to be installed. Refer to the Distribution Engineering Reference Manual (DERM) Section 4 for calculating pole sizes for specific framing under the NESC combined ice and wind loading conditions. 3. Every attempt should be made to place new or replacement poles in private easements or as close to the front edge of property (right of way line) as practical. 4. Overhead pole lines should be placed in front lot lines or accessible locations where feasible. 5. When replacing poles, the new pole should be set as close as possible to the existing pole to avoid the creation of a new pole location. 6. Poles are not to be placed in medians. 7. Concrete poles are not to be placed in inaccessible locations or locations that could potentially become inaccessible. B. Please reference the minimum setting depth charts located in DCS D-3.0.0 which shows the increased setting depths for concrete poles. g. Every effort should be made not to install poles in sidewalks. lf a pole must be placed in a sidewalk, a minimum unobstructed sidewalk width of 32" must be maintained to comply with the American Disabilities Act (ADA) requirements. 10. lf concrete poles are required by the governing agency as a requirement of the permit, and if the work is being done solely for FPL purposes (feeder tie, etc.), then the concrete Christopher T. Wright Senior Attorney - Regulatory Florida Power & Light Company 700 Universe Blvd Juno Beach, FL 33408-0420 Phone: (561) 691-7144 E-mail : Christoper.Wri eht@fpl.com Florida Authorized House Counsel; Admitted in Pennsylvania April10,2020 VA ELECTRONIC FILING Mr. Adam Teitzman Division of the Commission Clerk and Administrative Services Florida Public Service Commission 2540 Shumard Oak Blvd. Tallahassee, FL 32399-0850 Re: Docket No. 20200071-El Review of 2020-2029 Storm Protection PIan pursuant to Rule 25-6.030, F.A.C., Florida Power & Lisht Comnanv Dear Mr. Teitzman: Enclosed for electronic filing in the above-referenced docket, please find Florida Power & Light Company's Petition for Approval of the 2020-2029 Storm Protection Plan pursuant to Rule 25- 6.030, F.A.C., together with the Direct Testimony of FPL witness Michael Jarro and Exhibit MJ- 1. Copies of this filing will be pt'ovided as indicated on the enclosed Certificate of Service. If you or your staff have any question regarding this filing, please contact me at (561) 691-7144. Respectfully submitted, s/Christonher Wri Christopher T. Wright Authorized House Counsel No. 1007055 Enclosure FFL- Florida Power & Light Company 700 Universe Boulevard, Juno Beach, FL 33408 Page | 1 BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION Docket No. 2020007t-El Filed: April 10,2020 PETITION OF FLORIDA POWER & LIGHT COMPANY FOR APPROVAL OF THE 2020-2029 STORM PROTECTION PLAN I. INTRODUCTION Florida Power & Light Company ("FPL" or the "Company") hereby files this petition (the "Petition") requesting that the Florida Public Service Commission ("Commission") approve the proposed Transmission and Distribution ("T&D") Storm Protection Plan for the years 2020-2029 (hereinafter, the "SPP") pursuant to Section 366.96, Florida Statutes ("F.S.") and Rule 25-6.030, Florida Administrative Code ("F.A.C."). FPL's SPP is, in large part,acontinuation and expansion of its previously approved and successful storm hardening and storm preparedness programs. FPL submits that the storm hardening and storm preparedness programs included in its SPP are appropriate and necessary to achieve the legislative objectives of Section366.96, F.S., to protect and strengthen T&D infrastructure from extreme weather conditions, reduce outage times and restoration costs, and improve overall service reliability to customers.l In support of this Petition, FPL states as follows: 1. The name and address of the Petitioner is: Florida Power & Light Company 700 Universe Blvd Juno Beach, FL 33408 I The recovery of costs associated with the SPP, as well as the actual and projected costs to be included in FPL's Storm Protection Plan Cost Recovery Clause, will be addressed in subsequent and separate Storm Protection Plan Cost Recovery Clause dockets pursuant to Rule 25-6.031, F.A.C. The Commission has opened Docket No. 20200092-EI to address Storm Protection Plan Cost Recovery Clause petitions to be filed the third quarter of 2020. 1 Review of 2020-2029 Storm Protection Plan pursuant ll to Rule 25-6.030, F.A.C., Florida Power & Light llCompany ll 2. FPL is a corporation organized and existing under the laws of the State of Florida and is an electric utility as defined in Sections 366.02(2) and366.96, F.S. FPL provides generation, transmission, and distribution service to nearly five million retail customer accounts. 3. Any pleading, motion, notice, order or other document required to be served upon the petitioner or filed by any party to this proceeding should be served upon all of the following individuals: Kenneth A. Hoffrnan Vice President, Regulatory Affairs Florida Power & Light Company 215 South Monroe Street, Suite 810 Tallahassee,FL 32301 Phone: 850-521-3919 Fax: 850-521-3939 Emai I : ken. hoffman @fpl com John T. Burnett Vice President and Deputy General Counsel Christopher T. Wright Senior Attorney Florida Power & Light Company 700 Universe Boulevard Juno Beach, FL 33408-0420 Phone: 561-691-7 144 F ax: 561-691-7 135 Email : j ohn.t.burnett@fpl.com Email : christopher.wri ght@fpl.com 4. The Commission has jurisdiction pursuant to Section 366.96, F.S., and Rule 25- 6.030, F.A.C. 5. This Petition is being filed consistent with Rule 28-106.201, F.A.C. The agency affected is the Commission, located at2540 Shumard Oak Boulevard, Tallahassee, Florida32399. This case does not involve reversal or modification of an agency decision or an agency's proposed action. Therefore, subparagraph (c) and portions of subparagraphs (b), (e), (f) and (g) of subsection (2) of Rule 28-106.207, F.A.C., are not applicable to this Petition. ln compliance with subparagraph (d) of Rule28-106.201, F.A.C., FPL states that it is not known which, if any, of the issues of material fact set forth in the body of this Petition may be disputed by any others who may plan to participate in this proceeding. The discussion below demonstrates how the petitioner's substantial interests will be affected by the agency determination. 2 II. BACKGROUND AND OVERVIEW 6. On June 27,2019, the Governor of Florida signed CS/CS/CS/SB 796 addressing Storm Protection Plan Cost Recovery, which was codified in Section 366.96, F.S. Therein, the Florida Legislature found that it was in the State's interest to "strengthen electric utility infrastructure to withstand extreme weather conditions by promoting the overhead hardening of electrical distribution and transmission facilities, the undergrounding of certain electrical distribution lines, and vegetation management," andfor each electric utility to "mitigate restoration costs and outage times to utility customers when developing transmission and distribution storm protection plans." Section 366.96(I), F.S. The Florida Legislature directed the Commission to adopt rules to specify the elements that must be included in each utility's SPP. Section366.96(l), F.S. 7. Rule 25-6.030, F.A.C., requires each utility to file an updated SPP at least every three years that covers the utility's immediate ten-year planning period. Rule 25-6.030, F.A.C., also specifies the information to be included in each utility's SPP. Consistent with these requirements, FPL is herein submitting its SPP for the ten-year period of 2020-2029, which is provided as Exhibit MJ-1. 8. FPL's SPP is largely a continuation and expansion of its existing storm hardening and storm preparedness programs, which were most recently approved in FPL's 2019-2021Storm Hardening Plan.2 These existing hardening and storm preparedness programs have already demonstrated that they have and will continue to increase T&D infrastructure resiliency, reduce restoration times, and reduce restoration costs when FPL's system is impacted by extreme weather 2 See Inre: Petitionfor Approval of FloridaPower & Light Company's 2019-2021 Storm Hardening Plan pursuant to Rule 25-6.0342, F.A.C.,DocketNo. 20180144-EI, OrderNo. PSC-2019-0364-CO-EI (Fla. PSC Aug. 27 ,2019) (making Order No. PSC-201 9-0301 -PAA-EI issued on July 29, 2079, effective and final). J events. FPL performed an analysis of Hurricanes Matthew and Irma that indicated the restoration construction man-hours ("CMH"), days to restore, and storm restoration costs for these storms would have been significantly higher without FPL's storm hardening programs.3 9. While FPL's nation-leading initiatives have made significant progress toward strengthening FPL's infrastructure, FPL must continue its T&D storm hardening and storm preparedness plans and initiatives. Storms remain a constant threat and Florida is the most hurricane-prone state in the nation. With the significant coast-line exposure of FPL's system, and the fact that the majority of FPL's customers live within twenty miles of the coast, a robust storm protection plan is critical to maintaining and improving grid resiliency and storm restoration as contemplated by the Legislature in Section 366.96. 10. As part of its SPP, FPL will continue the previously approved storm hardening and storm preparedness programs to achieve the legislative objectives of promoting the overhead hardening of T&D facilities, the undergrounding of distribution lines, and vegetation management to reduce restoration costs and outage times to customers and improve the overall service reliability for customers. In addition, FPL proposes to implement a new substation storm surge/flood mitigation program. FPL submits that the SPP will continue and expand the benefits of hardening, including improved day-to-day reliability, to all customers throughout FPL's system. 1 1. Submitted herewith and in support of FPL's SPP is the Direct Testimony of Michael Jarro and Exhibit MJ-l, which includes FPL's SPP for the period of 2020-2029 and supporting schedules. 3 ,9ee FPL's Third Supplemental Response to Stafls First Data Request No. 29 ("Third Supplemental Amended") in Docket No. 20170215-EI, which is provided as Appendix A to Exhibit MJ-l. 4 ilI.STORM CTTON PI,AN A. Description of the SPP Programs 12. FPL's SPP is largely a continuation and expansion of the following previously aPProved storm harde;":H.;ffi;:,:::;* Structures/Other Equipment Inspections - Transmission Program Feeder Hardening (EWL) - Distribution Program Lateral Hardening (Undergrounding) - Distribution Program Wood Structures Hardening (Replacing) - Transmission Program Vegetation Management - Distribution Program Vegetation Management - Transmission Program In addition, FPL proposes to implement a new Substation Storm Surge/Flood Mitigation-Program to protect T&D substations and equipment that are susceptible to storm surge or flooding during extreme weather events. These SPP programs are summarized below and a detailed description of each SPP program, consistent with Rule 25-6.030(3)(d), F.A.C., is provided in Section IV of Exhibit MJ-1. 13. The Pole Inspection - Distribution Program will continue FPL's existing Commission-approved distribution pole inspection program, which is an eight-year pole inspection cycle for all distribution poles that targets approximately 1/8 of the system annually (the actual number of poles inspected can vary somewhat from year to year). With approximately 1.2 million distribution poles as of year-end 2019, FPL expects to inspect approximately 150,000 poles annually. The estimated 2020-2029 annual average cost for the Pole Inspection - Distribution Program is approximately $61 million per year, which is consistent with historical 5 costs for the existing distribution pole inspection program.a A detailed description of the Pole Inspection - Distribution Program is provided in Section IV(A) of Exhibit MJ-1. 14. The Structures/Other Equipment Inspections - Transmission Program will continue FPL's current Commission-approved transmission inspection program which requires: (a) transmission circuits and substations and all associated hardware to be inspected on a six-year cycle; (b) wood structures to be visually inspected from the ground on an annual basis and climbing or bucket truck inspections to be conducted on a six-year cycle; and (c) steel and concrete structures to be visually inspected on an annual basis and climbing or bucket truck inspections to be conducted on a ten-year cycle. FPL expects to inspect approximately 68,000 transmission structures annually. The estimated 2020-2029 annual average cost for the Structures/Other Equipment Inspections - Transmission Program is approximately $50 million per year, which is consistent with historical costs for the existing transmission inspection program.s A detailed description of the Structures/Other Equipment Inspections - Transmission Program is provided in Section IV(B) of Exhibit MJ-1. 15. The Feeder Hardening (EWL) - Distribution Program will continue FPL's existing Commission-approved approach to harden existing feeders and certain critical distribution poles, as well as FPL's initiative to design and construct new pole lines and major planned work to meet the extreme wind loading ("EWL") criteria set forth in the National Electric Safety Code. FPL a Note, the2020-2029 progtam costs shown above are projected costs estimated as of the time of this filing. Subsequent projected and actual costs could vary by as much as 10Yo to 75%o. The annual projected costs, actual/estimated costs, actuals costs, and true-up of actual costs to be included in FPL's Storm Protection Plan Cost Recovery Clause will all be addressed in subsequent and separate Storm Protection Plan Cost Recovery Clause filings pursuant to Rule 25-6.031, F.A.C. The Commission has opened Docket No. 20200092-EI to address Storm Protection Plan Cost Recovery Clause petitions to be filed the third quarter of2020. 5 See footnote 4. 6 expects to harden approximately 280-350 feeders annually, with 100% of FPL's feeders expected to be hardened or underground by year-end 2024 and with the final costs of the program to be incurred in 2025. The estimated average annual cost for the Feeder Hardening (EWL) - Distribution Program to be incurred over the period of 2020-2025 is approximately $534 million per year, which is consistent with historical costs for the existing distribution feeder hardening program.6 A detailed description of the Feeder Hardening (EWL) - Distribution Program is provided in Section IV(C) of Exhibit MJ-1. 16. The Lateral Hardening (Undergrounding) - Distribution Program includes completing FPL's existing three-year Storm Secure Underground Program Pilot ("SSUP Pilot") in 2020 andexpanding the application of the SSUP to the implementation of the system-wide Lateral Hardening (Undergrounding) - Distribution Program for the period of 2021-2029. The SSUP Pilot is a program that targets certain overhead laterals that were impacted by recent storms and have a history ofvegetation-related outages and other reliability issues for conversion from overhead to underground. As part of its SPP, FPL will incorporate, continue, and expand the SSUP during the ten-year SPP period to provide the benefits of underground lateral hardening throughout its system. After completing the SSUP Pilot in 2020,FPL estimates that it will convert approximately 300- 700 laterals annually in202l-2023 and approximately 800-900 laterals annually in2024-2029. The estimat ed 2020-2029 annual average cost for the Lateral Hardening (Undergrounding) - Distribution Program is approximately $510 million per year.1 A detailed description of the Lateral Hardening (Undergrounding) - Distribution Program is provided in Section IV(D) of Exhibit MJ-l. 6 See foolnote 4. 7,See footnote 4. 7 17. The Wood Structures Hardening (Replacing) - Transmission Program is a continuation of FPL's existing transmission hardening program to replace all wood transmission structures with steel or concrete structures. As of year-end 2019, 960A of FPL's transmission structures, system-wide, were steel or concrete, with less than 2,900 (or 4%) wood structures remaining to be replaced. FPL expects to replace the 2,900 wood transmission structures remaining on its system by year-end2022. The estimated2020-2022 annual average cost for the Wood Structure Hardening (Replacing) - Transmission Program is approximately $39 million per year, which is a decrease from the historical costs for the existing transmission hardening program.8 A detailed description of the Wood Structure Hardening (Replacing) - Transmission Program is provided in Section IV(E) of Exhibit MJ-1. 18. The Substation Storm Surge/Flood Mitigation Program is the only new storm hardening program that FPL proposes to implement as part of its SPP. The Substation Storm Surge/Flood Mitigation Program will implement measures to protect certain T&D substations and equipment that are susceptible to storm surge or flooding due to extreme weather events. Specifically, FPL will raise the equipment at certain substations above the flood level and construct flood protection walls around other substations that are susceptible to storm surge or flooding during extreme weather events. The Storm Surge/Flood Mitigation - Transmission and Distribution Program will reduce customer outages due to flooding and the need to de-energize substations that arc impacted by storm surge or flooding, as well as reduce flood damage and restoration costs at these targeted substations. At this time, FPL has identified between 8-10 substations where it initially plans to implement storm surge/flood mitigation measures over the 8 8 See footnote 4. next three years (2020-2022). The estimated 2020-2022 annual average cost for the new Substation Storm Surge/Flood Mitigation Program is approximately $8 million per year.e A detailed description of the Substation Storm Surge/Flood Mitigation Program is provided in Section IV(F) of Exhibit MJ-1. 19. The Vegetation Management - Distribution Program is a continuation of FPL's existing, Commission-approved distribution vegetation management program. FPL's currently approved distribution vegetation program, includes the following system-wide vegetation inspection and management activities: three-year cycle for feeders; mid-year cycle targeted trimming for certain feeders; six-year cycle for laterals; and continued education of customers through its Right Tree, Right Place initiative. FPL plans to inspect and maintain, on average, approximately 15,200 miles annually, which is consistent with the historic miles inspected and trimmed annually. The estimated2020-2029 average annual cost for the Vegetation Management - Distribution Program is approximately $60 million per year, which is consistent with historical costs for the existing distribution vegetation management program.l0 A detailed description of the Vegetation Management - Distribution Program is provided in Section IV(G)of Exhibit MJ-1. 20. The Vegetation Management - Transmission Program is a continuation of FPL's existing transmission vegetation management program, which includes visual and aerial inspections of all transmission line coruidors, LiDAR inspections of North American Electric Reliability Corporation transmission line corridors, developing and executing annual work plans to address identified vegetation conditions, and identifying and addressing priority and hazard tree conditions prior to and during storm season. FPL plans to inspect and trim, on average, e See footnote 4. lo See footnote 4 9 approximately 7,000 miles of transmission lines annually, which is consistent with the historic miles inspected and trimmed annually. The estimated 2020-2029 average annual cost for the Vegetation Management - Transmission Program is approximately $10 million per year, which is consistent with historical costs for the existing transmission vegetation management program.ll A detailed description of the Vegetation Management- Transmission Program is provided in Section IV(H) ofExhibitMJ-1. B. Additional Details for First Three Years of the SPP 21. The following additional project level information required by Rule 25- 6.030(3)(e)(1), F.A.C., for the first year of the SPP (2020) is provided in Appendix E to Exhibit MJ-l: (a) the actual or estimated construction start and completion dates; (b) a description of the affected existing facilities, including number and type(s) of customers served, historic service reliability performance during extreme weather conditions, and how this data was used to prioritize the storm protection project; and (c) a cost estimate including capital and operating expenses. A description of the criteria used to select and prioritize storm protection projects is included in the description of each SPP program provided in Section IV of Exhibit MJ-1. 22. Pursuant to Rule 25-6.030(3)(eX2), F.A.C., FPL has also provided the estimated number and costs of projects under each specific program for the second and third years (2021- 2022) of the SPP. This information is provided in Appendix C to Exhibit MJ-1. 23. The following additional information required by Rule 25-6.030(3)(f), F.A.C., for the first three years (2020-2022) of the vegetation management activities under the SPP is provided in Sections IV(G) and IV(H) of Exhibit MJ-l and Appendix C to Exhibit MJ-l: (a) the projected frequency (trim cycle); (b) the projected miles of affected transmission and distribution overhead ll ,See footnote 4. 10 facilities; and (c) the estimated annual labor and equipment costs for both utility and contractor personnel. Descriptions of how the vegetation management activities will reduce outage times and restoration costs due to extreme weather conditions are provided in Sections IV(G) and IV(H) of Exhibit MJ-1. C. Estimated Revenue Requirements and Rate Impacts 24. Pursuant to Rule 25-6.030(3)(9), F.A.C., the estimated annual jurisdictional revenue requirements of FPL's SPP for the ten-year period of 2020-2029 are provided in Section VI of Exhibit MJ-l. While FPL has provided estimated costs by program as of the time of this filing and associated total revenue requirements in its SPP, consistent with the requirements of Rule 25-6.030, F.A.C., subsequent projected and actual program costs submitted for cost recovery through the Storm Protection Plan Cost Recovery Clause (per Rule 25-6.03I, F.A.C.,) could vary by as much as 10-l5Yo, which variations would also impact the associated estimated revenue requirements and rate impacts. 25. FPL anticipates the programs included in the SPP will have zero bill impacts on customer bills during the first year of the SPP and only minimal bill increases for years two and three of the SPP. An estimate of hypothetical overall rate impacts for the first three years of the SPP (2020-2022) based on the total program costs reflected in this filing, without regard for the fact that FPL remains under a general base rate freeze pursuant to a Commission-approved settlement agreement through December 31,2021, are provided in Section VII of Exhibit MJ-l. The annual jurisdictional revenue requirements and the estimated rate impacts are based on the total estimated costs, as of the time of this filing, for all programs included in the SPP regardless of whether those costs will be recovered in FPL's Storm Protection Plan Cost Recovery Clause or through base rates. In addition, under FPL's Commission-approved rate case settlement 11 agreement, any incremental base rate adjustment may not take place until FPL's base rates are established by the Commission in FPL's next base rate proceeding.12 26. FPL is not seeking Commission approval, through this petition, to recover any of the estimated costs associated with the SPP in this filing. The projected costs, actual/estimated costs, actual costs, and true-up of actual costs to be included in FPL's Storm Protection Plan Cost Recovery Clause, including whether these costs are included in current base rates, will all be addressed in subsequent and separate Storm Protection Plan Cost Recovery Clause filings pursuant to Rule 25-6.031, F.A.C. The Commission has opened DocketNo. 20200092-EI to address Storm Protection Plan Cost Recovery Clause petitions to be filed the third quarter of 2020. D. FPL's SPP is in the Public Interest and Should Be Approved 27. Sections 366.96(4)-(5), F.S., provide that the Commission shall review each utility's SPP and, within 1 80 days from filing, determine whether the SPP is in the public interest. 13 28. As explained above, the programs included in the SPP are largely a continuation and expansion ofFPL's already successful and ongoing storm hardening and storm preparedness programs previously approved by the Commission, as well as a new storm hardening program to t2 See In re: Petitionfor rate inuease by Florida Power & Light Company, Docket No. 160021-EI, Order No. PSC-16-0560-AS-EI (Fla. PSC Dec. 15, 2016). 13 In reaching this determination, the Florida Legislature has directed the Commission to consider the following: (a) The extent to which the plan is expected to reduce restoration costs and outage times associated with extreme weather events and enhance reliability, including whether the plan prioritizes areas of lower reliability performance. (b) The extent to which storm protection of transmission and distribution infrastructure is feasible, reasonable, or practical in certain aleas of the utility's service territory, including, but not limited to, flood zones and rural areas. (c) The estimated costs and benefits to the utility and its customers of making the improvements proposed in the plan. (d) The estimated annual rate impact resulting from implementation of the plan during the first 3 years addressed in the plan. See Section 366.96(4), F.S. 12 protect T&D substations and equipment from storm surge and flooding due to extreme weather events. These SPP programs will continue to provide increased T&D infrastructure resiliency, reduced restoration times, and reduced restoration costs when FPL's system is impacted by extreme weather events. 29. In DocketNo.20l702l5-EU, the Commission reviewed the electric utilities' storm hardening and storm preparedness programs and found the following: Florida's aggressive storm hardening programs are working; The length of outages was reduced markedly from the 2004-2005 storm season; Hardened overhead distribution facilities performed better than non- hardened facilities; Underground facilities performed much better compared to overhead facilities; and The primary causes of power outages came from outside the utilities' rights- of-way including falling trees, displaced vegetation, and other debris. See Review of Florida's Electric Utility Hunicane Preparedness and Restoration Actions 2018, Dobket No. 20 I 7021 5-EU (July 24,201 8). t4 30. The estimate of cumulative reductions in restoration costs and outage times associated with the SPP will be directly affected by how frequently storms hit FPL's service territory. Of course, no one is in a position to know for sure how frequently FPL's service territory will be impacted by strong hurricanes. However, consistent with historical results, FPL expects that the storm hardening and storm preparedness programs included in its SPP will result in a reduction in storm as well as non-storm (day-to-day) restoration costs. See FPL's Third Supplemental Response to Staff s First Data Request No. 29 ("Third Supplemental Amended") in la Available at http://www.psc.state.fl.us/library/fi1ings/2018/04847-2018/04847-2018.pdf. l3 DocketNo.20170215-EI, which is provided as Appendix A to Exhibit MJ-l. 31. FPL's storm hardening and storm preparedness programs have also provided and will continue to provide increased levels of day-to-day reliability. For example, FPL has previously submitted reports to the Commission that show hardened feeders have performed approximately 40%;o beffer (i.e., fewer outages) on a day-to-day basis than non-hardened feeders. 32. A detailed summary of the benefits of FPL's SPP is provided in Section II of Exhibit MJ-l, and the benefits and costs associated with each program is provided in Section IV of Exhibit MJ-1. 33. FPL's SPP meets the objectives of Section366.96, F.S., satisfies the requirements of Rule 25-6.030, F.A.C., is in the public interest, and should be approved. IV. CONCLUSION 34. As explained above and in further detail in Exhibit MJ-l and the supporting Direct Testimony of FPL witness Michael Jarro, FPL's SPP provides a systematic approach to achieve the legislative objectives of reducing restoration costs and outage times associated with extreme weather events and enhancing reliability. FPL's SPP appropriately and effectively maintains and builds on FPL's commitment to provide safe and reliable electric service to customers, consistent with our customers' needs and expectations . t4 WHEREFORE, FPL respectfully requests that the Commission find FPL's proposed SPP, provided as Exhibit MJ-l, is in the public interest and approve the SPP for the years2020-2029. Respectfully submitted this 10th day of April,2020, John T. Burnett Vice President and Deputy General Counsel Christopher T. Wright Senior Attorney Florida Power & Light Company 700 Universe Boulevard Juno Beach, FL 33408-0420 Phone: 561-691-7144 Fax: 561-691-7135 Email : i ohn.t.burnett@fpl.com Email : christopher.wri ght@fpl.com By:s/Christooher T. Wrisht Christopher T. Wright Fla. Auth. House Counsel No. 1007055 15 CERTIFICATE OF SERVICE I I{EREBY CERTIFY that a true and correct copy of Florida Power & Light Company's Petition for Approval of the 2020-2029 Storm Protection Plan in Docket No. 2020007I-EI, along with the Direct Testimony of Michael Jano and Exhibit MJ-l, has been furnished by Electronic Mail to the following parties of record this 1Oth day of April,2020: s/ Christopher T. Wrisht Christopher T. Wright Fla. Auth. House Counsel No. 1007055 Fla. Auth. House Counsel No. 1017875 Florida Power & Light Company 700 Universe Boulevard (JB/LAW) Juno Beach, Florida 33408 Attorneyfor Florida Power & Light Company Charles Murphy, Esquire Rachael D ziechciarz. Esquire Florida Public Service Commission 2540 Shumard Oak Boulevard Tallahassee,FL 32399 rdziechc@nsc. state.fl .us cmurphy(Epsc.state.fl .us Office of Public Counsel J.R.Kelly Patricia A. Christensen c/o The Florida Legislature 111 West Madison Street, Room 812 Tallahassee, FL 32399-1400 kelly jr@le g.state. fl .us christensen.patty@le g. state.fl .us BEFORE TIIE FLORIDA PUBLIC SERYICE COMMISSION FLORIDA POWER & LIGHT COMPAIIY 2020.2029 STORM PROTECTION PLAI\ DOCKET NO. 202000071-Er DIRECT TESTIMONY OF MICHAEL JARRO APRrL 10,2020 1 TABLE OF'CONTENTS I. INTRODUCTION ...3 il. OVERVIEW OF FPL'S Spp............ .....................4 III. DESCRIPTION OF EACH SPP PROGRAM.......... ................7 IV. ADDITIONAL DETAILS F'ORFIRST THREE YtrARS OF THE SPP....................16 v. coNCLUSrON........... EXHIBIT MJ-l - FPL's 2020-2029 Storm Protection PIan 2 1 2 J 4 5 6 7 8 9 10 11 t2 13 t4 15 16 I7 18 I9 20 2l 22 23 24 25 a. A. a. A. a. A. I. INTRODUCTION Please state your name and business address. My name is Michael Jarro. My business address is Florida Power &,LighI Company, 15430 Endeavor Drive, Jupiter, FL, 3347 8. By whom are you employed and what is your position? I am employed by Florida Power & Light Company (.'FPL" or the "Company") as the Vice President of Distribution Operations. Please describe your duties and responsibilities in that position. My curent responsibilities include the operation and maintenance of FPL's approximately 68,000 miles of distribution infrastructure, including 42,000 miles of overhead and 26,000 miles of underground, that safely, reliably, and efficiently deliver electricity to more than five million customers in FPL's service tenitory covering approximately 28,000 square miles. I am responsible for the oversight of more than 1,600 employees in a control center and sixteen management areas. The functions and operations within my area are quite diverse and include distribution operations, major projects and construction services, power quality, meteorology, and other operations that together help provide the highest level of service to FPL's customers. Please describe your educational background and professional experience. I graduated from the University of Miami with a Bachelor of Science Degree in Mechanical Engineering and Florida International University with a Master of Business Administration. I ioined FPL in 7997 and have held several leadership positions in distribution operations and customer service, including serving as distribution reliability manager, manager of distribution operations for south Miami-Dade area, control center general manager, director of network operations, senior director ofcustomer strategy and analytics, senior director ofpower delivery central maintenance and construction, and vice-president of transmission and substations. What is the purpose of your direct testimony? a. A. aJ a. 1A. 2 aJ 4 5 6 7 8 9 10 a. 11 A. l2 I3 t4 a. 15 A. t6 17 18 I9 20 2t 22 23 24 25 26 The purpose of my testimony is to present and provide an overview of FPL's proposed 2020- 2029 Storm Protection Plan ("SPP" or "the Plan"), which is attached to my direct testimony as Exhibit MJ-1, and demonstrate that FPL's SPP is in compliance with Section 366.96, Florida Statutes ("F.S.") and Rule 25-6.030, Florida Administrative Code ("F.A.C."). I will provide a description of each storm protection program included in FPL's SPP and how it is expected to reduce restoration costs and outage times. I will also describe the estimated start/completion dates, estimated costs, and criteria used to select and prioritize the projects in each program. Finally, I will describe the additional detail provided for the first three years of FPL's SPP pursuant to Rule 25-6.030(3)(e)-(f), (h), and (i), F.A.C. Are you sponsoring any exhibits in this case? Yes. I am sponsoring Exhibit MJ-l - FPL's Storm Protection Plan 2020-2029. il.OVF"RVIF"\^/OF FPL'S SPP What is the purpose of FPL's SPP? On June 27,2019, the Governor of Florida signed into law the Storm Protection Plan Cost Recovery legislation, which was codified in Section 366.96, F.S. As part of the new law, the Florida Legislature expressly found that it is in the State's interest: (a) "to strengthen electric utility infrastructure to withstand extreme weather conditions by promoting the overhead hardening of electrical transmission and distribution facilities, the undergrounding of certain electrical distribution lines, and vegetation management;" and (b) "for each electric utility to mitigate restoration costs and outage times to utility customers when developing transmission and distribution storm protection plans." ,See Sections 366.96(1)(c)-(d), F.S. Based on these findings, the Florida Legislature directed each electric utility to file a SPP with the Florida Public Service Commission ("Commission") covering the immediate ten (10) year planning period. See Section 366.96(3), F.S. Consistent with this legislative requirement, FPL is submitting its SPP for the ten-year period of 2020-2029. 4 1 2 aJ 4 5 6 7 8 9 10 11 l2 13 t4 15 16 t7 18 t9 20 2I 22 23 24 a. A. FPL's SPP is a systematic approach to achieve the legislative objectives of reducing restoration costs and outage times associated with extreme weather events and enhancing reliability. As required by Rule 25-6.030, F.A.C., FPL's SPP includes, among other things, a description of each proposed storm protection program, including: (a) how each program will enhance the existing system to reduce restoration costs and outage times; (b) applicable start and completion dates for each program; (c) a cost estimate for each program; (d) a comparison of the costs and benefits for each program; and (e) a description ofhow each program is prioritized. The SPP also provides an estimate of the annual jurisdictional revenue requirement for each year of the SPP and additional details on each program for the first three years ofthe SPP (2020-2022), including estimated rate impacts. What programs are included in FPL's SPP? FPL's SPP is, in large parI, a continuation and expansion of its previously approved storm hardening and storm preparedness programs, and includes the following SPP programs: o Pole Inspections - Distribution Program o .Structures/Other Equipment Inspections - Transmission Program . Feeder Hardening - Distribution Program r Lateral Hardening (Undergrounding) - Distribution Program . Wood Structures Hardening (Replacing) - Transmission Program o Vegetation Management - Distribution Program o Vegetation Management - Transmission Program In addition, FPL proposes to implement a new Substation Storm Surge/Flood Mitigation Program to protect T&D substations and equipment that ue susceptible to storm surge or flooding during extreme weather events. 5 I 2 J 4 5 6 7 8 9 10 1l 12 a. 13 A. t4 15 t6 I7 18 t9 20 2I 22 23 24 25 26 With the exception of the new storm surge/flood mitigation program, the majority of these programs have been in place since 2007. As demonstrated by recent storm events, these programs have been successful in reducing restoration costs and outage times following major storms, as well as improving day-to-day reliability. FPL submits that continuing these previously approved storm hardening and storm preparedness programs in the SPP, together with the new storm surge/flood mitigation program, is appropriate and necessary to meet the requirements of Section 366.96, F.S., and Rule 25-6.030, F.A.C. These programs will address the expectations ofFPL's customers and other stakeholders for increased storm resiliency, and will result in fewer outages, reduced restoration costs, and prompt service restoration. The SPP will continue and expand the benefits of hardening, including improved dayto-day reliability, to all customers throughout FPL's system. Please provide an overyiew of the benefits of FPL's SPP. The major benefit of FPL's SPP is to provide increased resiliency and faster restoration to the electric infiastructure that FPL's five million customers and Florida's economy rely on for their electricity needs. Safe and reliable electric service is essential to the life, health, and safety of the public, and has become a critical component of modern life. Florida remains the most hurricane-prone state in the nation and, with the significant coast-line exposure of FPL's system and the fact that the vast majority of FPL's customers live within 20 miles of the coast, a robust storm protection plan is critical to maintaining and improving grid resiliency and storm restoration as contemplated by the Legislature in Section 366.96. FPL's SPP programs have already demonstrated that they have provided and will continue to provide increased Transmission and Distribution ("T&D") infrastructure resiliency, reduced restoration time, and reduced restoration cost when FPL is impacted by extreme weather events. FPL performed an analysis of Hurricanes Matthew and Irma that indicated the restoration construction man-hours ("CMH"), days to restore, and storm restoration costs for 6 1 2 aJ 4 5 6 7 8 9 10 11 T2 t3 l4 15 l6 l7 18 19 20 2l 22 23 24 25 26 a. A. these storms would have been significantly greater without FPL's storm hardening programs. In the case of Hurricane Matthew, FPL estimated that without hardening, restoration would have taken two additional days (50% longer), and resulted in additional restoration costs of $105 million (36% higher than actual costs). In the case of Hurricane lrma, FPL estimated that without hardening, restoration would have taken four additional days (40%o longer), and resulted in additional restoration costs of $496 million (4}%higher than actual costs). A copy of FPL's analysis is provided in Appendix A to Exhibit MJ-1. A detailed summary of the benefits of FPL's SPP is provided in Section II of the SPP, and the benefits ofeach program are provided in Section IV ofthe SPP. Does FPL's SPP address recovery of the costs associated with the SPP? No. FPL anticipates the programs included in the SPP will have zero bill impacts on customer bills during the first year of the SPP and only minimal bill increases for years two and three of the SPP. However, the recovery of the actual costs associated with the SPP, as well as the costs to be included in FPL's Storm Protection Plan Cost Recovery Clause, will be addressed in subsequent and separate Storm Protection Plan Cost Recovery Clause dockets pursuant to Rule 25'6.03I, F.A.C. The Commission has opened Docket No. 20200092-EI to address Storm Protection Plan Cost Recovery Clause petitions to be filed the third quarter of 2020. Iil. DESCRIPTION OF EACH SPP PROGRAM Has FPL provided the information required by Rule 25-6.030(3Xd) for each program included in its SPP? Yes. FPL's SPP provides the information required by the Rule 25-6.030(3Xd) for each program. If applicable, each program description included in FPL's SPP includes: (1) a description of how each program is designed to enhance FPL's existing transmission and distribution facilities including an estimate of the resulting reduction in outage times and 7 a. A. I 2 aJ 4 5 6 7 8 9 10 11 t2 13 t4 15 l6 17 18 t9 20 21 22 z5 24 25 26 a. A. restoration costs due to extreme weather conditions; (2) identification of the actual or estimated start and completion dates of the program; (3) a cost estimate including capital and operating expenses; (4) a comparison ofthe costs and the benefits; and (5) a description ofthe criteria used to select and prioritize proposed storm protection programs. Each of the above listed descriptions is provided in Section IV of FPL's SPP. Below, I will provide a brief overview of each program included in FPL's SPP. Please provide a summary of FPL's Pole Inspection - Distribution Program included in the SPP. The Pole Inspection - Distribution Program included in the SPP is a continuation of FPL's existing Commission-approved distribution pole inspection program. FPL's existing, Commission-approved distribution pole inspection program is an eight-year pole inspection cycle for all distribution poles that targets approximately 1/8 of the system annually (the actual number of poles inspected can vary somewhat from year to year). To ensure inspection coverage throughout its service territory, FPL established nine inspection zones (based on FPL's management areas and pole population) and annually performs pole inspections of approximately 1/8 of the distribution poles in each of these zones, as well as any necessary remediation as a result of such inspections. As explained in the SPP, recent storm events demonstrate that FPL's existing distribution pole inspection program has contributed to the overall improvement in distribution pole performance during storms, resulting in reductions in storm damage to poles, days to restore, and storm restoration costs. With approximately 1.2 million distribution poles as of year-end 2019,FPL expects to inspect approximately 150,000 poles annually (spread throughout its nine inspection zones) during the 2020-2029 SPP period. The total estimated costs for the Pole Inspection - Distribution Program for the ten-year period of 2020-2029 is $605 million with an annual average cost of approximately $61 million, which is consistent with historical costs for the existing distribution 8 1 2 J 4 5 6 7 8 9 10 11 12 l3 l4 15 l6 17 18 t9 20 o. A. pole inspection program.r A detailed description of the Pole Inspection - Distribution Program is provided in Section IV(A) of FPL's SPP. Please provide a summary of FPL's Structures/Other Equipment Inspections - Transmission Program included in the SPP. The Structures/Other Equipment Inspections - Transmission Progtam included in the SPP is a continuation of FPL's existing Commission-approved transmission inspection program. The SPP will continue FPL's current, Commission-approved transmission inspection program which requires: (a) transmission circuits and substations and all associated hardware to be inspected on a six-year cycle; (b) wood structures to be inspected visually from the ground on an annual basis and climbing or bucket truck inspections to be conducted on a six-year cycle; and (c) steel and concrete structures to be inspected visually on an annual basis and climbing or bucket truck inspections to be conducted on a ten-year cycle. As explained in the SPP, the performance of FPL's transmission facilities during recent storm events indicates FPL's transmission inspection program has contributed to the overall storm resiliency of the transmission system and provided savings in storm restoration costs. FPL expects to inspect approximately 68,000 structures annually during the 2020-2029 SPP period. The total estimated costs for the Structures/Other Equipment Inspections - Transmission Program for the ten-year period of 2020-2029 is $500 million with an annual average cost of approximately $50 million, which is consistent with historical costs for the 1Note, the2020-2029 program costs shown above are projected costs estimated as of the time of this filing. Subsequent projected and actual costs could vary by as much as l0%o to 15o/o. The annual projected costs, actual/estimated costs, actuals costs, and true-up of actual costs to be included in FPL's Storm Protection Plan Cost Recovery Clause will all be addressed in subsequent and separate Storm Protection Plan Cost Recovery Clause filings pursuant to Rule 25-6.031, F.A.C. The Commission has opened Docket No.20200092-EIto address Storm Protection Plan Cost Recovery Clause petitions to be filed the third quarter of 2020. 9 1 2 J 4 5 6 7 8 9 10 11 t2 t3 l4 15 I6 I7 18 l9 20 21 22 23 a. A existing transmission inspection program.2 A detailed description of the Structures/Other Equipment Inspections - Transmission Program is provided in Section IV(B) of FPL's SPP. Please provide a summary of FPL's Feeder Hardening (EWL) - Distribution Program included in the SPP. The Feeder Hardening (EWI-) - Distribution Program included in the SPP is a continuation of FPL's existing Commission-approved approach to harden existing feeders and certain critical distribution poles, as well as FPL's initiative to design and construct new pole lines and major planned work to meet the National Electrical Safety Code's ("NESC") extreme wind loading criteria ("EWL"). During the period 2006-2019, FPL hardened over 1,300 existing feeders, the vast majority being Critical Infrastructure Function ("CIF") feeders (i.e., feeders that serve hospitals, 911 centers, police and fire stations, water treatment facilities, county emergency operation centers) and Community Project feeders (l.e., feeders that serve other key community needs like gas stations, grocery stores and pharmacies) throughout FPL's service territory. Additional feeders were hardened as aresult of FPL's Priority Feeder Initiative, areliability program that targeted feeders experiencing the highest number of interruptions andlor customers interrupted. FPL also applied EWL to the design and construction of new pole lines and major planned work, including pole line extensions and relocations and certain pole replacements. As provided in previous FPL Annual Reliability Report filings and three-year Storm Hardening Plan filings (per Rule 25-6.0342, F.A.C.), hardened feeders perform better than non-hardened feeders, both in day-to-day reliability performance and during severe storms. Additionally, upon review of the electric utilities' storm hardening and storm prepa.redness programs, the Commission found that for Hurricane Irma, hardened feeders performed significantly better than 2 See footnote I 10 1 2 aJ 4 5 6 7 8 9 10 11 t2 t3 14 15 l6 t7 18 t9 20 2l 22 a. A. non-hardened feeders with respect to outage rates, pole failures, and CMH required to restore power.3 FPL expects to harden approximately 250-350 feeders annually, with 100% of FPL's feeders expected to be hardened or underground by year-end 2024 and with the final costs of the program to be incurred in2025. The total estimated costs for the Feeder Hardening (EWL) - Distribution Program for the period of 2020-2025 is $3,206 million with an annual average cost of approximately $534 million, which is consistent with historical costs for the existing distribution feeder hardening program.a A detailed description of the Feeder Hardening (EV[,) - Distribution Program is provided in Section IV(C) of FPL's SPP. Please provide a summary of FPL's Lateral Hardening (Undergrounding) - Distribution Program included in the SPP. The Lateral Hardening (Undergrounding) - Distribution Program included in the SPP is a continuation and expansion ofFPL's existing three-year Storm Secure Underground Program Pilot ("SSUP Pilot") implemented in 2018. The SSIIP Pilot is a program that targets certain overhead laterals that were impacted by recent storms and have a history of vegetation-related outages and other reliability issues for conversion from overhead to underground. As part ofits proposed SPP, FPL will complete its existing three-year SSUP Pilot in 2020 and expand the application of the SSUP during 2021-2029 to the implementation of the system-wide Lateral Hardening (Undergrounding) - Distribution Program to provide the benefits of underground lateralhardening throughout its system. As explained in the SPP, the proposal to continue and expand the application of the SSTIP under the SPP is based on the performance of the 3 See Review of Florida's Electric Utility Hurricane Preparedness and Restoration Actions 2018, Docket No. 20 l7 021 5 -EU (July 24, 2018). 4 See footnote 1. 11 1 2 J 4 5 6 7 8 9 l0 l1 12 13 14 15 16 t7 18 t9 20 2t 22 23 24 a. A. underground facilities as compared to overhead facilities and the extensive damage to the overhead facilities caused by vegetation during Hurricanes Matthew and Irma. By the end of 2020, the third and final year of the SSUP Pilot, FPL expects to have converted a total of 220-230 laterals from overhead to underground, which is consistent with the SSIIP Pilot plan most recently approved in July 2019 in FPL's most recent storm hardening plan docket, Docket No. 20180144-EI. After completing the SSUP Pilot in 2020, FPL estimates that it will convert approximately 300-700laterals annually in2021-2023 and approximately 800-900 laterals annually in2024-2029. The total estimated costs for the Lateral Hardening (Undergrounding) - Distribution Program for the ten-year period of 2020-2029 is $5,101 million with an arurual average cost of approximately $5 10 million.5 A detailed description of the Lateral Hardening (Undergrounding) - Distribution Program is provided in Section IV(D) of FPL's SPP. Please provide a summary of FPL's Wood Structures Hardening (Replacing) - Transmission Program included in the SPP. The Wood Structure Hardening (Replacing) - Transmission Program included in the SPP is a continuation of FPL's existing transmission hardening program to replace all wood transmission structures with steel or concrete structures. As explained in the SPP, the performance of FPL's transmission facilities during recent storm events indicates FPL's transmission hardening program has contributed to the overall storm resiliency ofthe transmission system and provided savings in storm restoration costs. As of year-end 2019, 96Yo of FPL's transmission structures, system-wide, were steel or concrete, with less than2,900 (or 4%) wood structures remaining to be replaced. FPL expects 5 See footnote 1 12 1 2 aJ 4 5 6 7 8 9 10 11 l2 13 I4 15 l6 t7 18 19 20 21 22 23 24 a. A. to replace the 2,900 wood transmission structures remaining on its system by year-end 2022. The total estimated costs for the Wood Structure Hardening (Replacing) - Transmission Program for the period of 2020-2022 is $118 million with an annual average cost of approximately $39 million, which is a decrease from the historical costs for the existing transmission hardening program.6 A detailed description of the Wood Structure Hardening (Replacing) - Transmission Program is provided in Section IV(E) of FPL's SPP. Please provide a summary of FPL's Substation Storm Surge/Flood Mitigation Program. The Substation Storm Surge/Flood Mitigation Program is the only new storm hardening program that FPL proposes to implement as part of its SPP. The Storm Surge/Flood Mitigation - Transmission and Distribution Program will implement measures to protect T&D substations and equipment that are susceptible to storm surge or flooding due to extreme weather events. Historically, several FPL distribution and transmission substations have been impacted by storm surge and/or flooding as a result of extreme weather conditions. While proactively de- energizing those substations impacted by storm surge and/or flooding helps reduce damage to substation equipment, FPL is still required to implement both temporary flood mitigation efforts and repairs to substation facilities and equipment that become flooded as a result of extreme weather conditions. Further, flooding and the need to proactively de-energize substations located in areas susceptible to storm surge and flooding can result in significant customer outages. To prevent/mitigate future substation equipment damage and customer outages due to storm surge and flooding, FPL's new Storm Surge/Flood Mitigation Program will raise the equipment at certain substations above the flood level and construct flood protection walls around other substations to prevent/mitigate future damage due to storm surge and flooding. 6 See footnote I t3 1 2 J 4 5 6 7 8 9 10 11 12 13 14 15 I6 l7 18 19 20 2l 22 23 24 a. A At this time, FPL has identified between 8-10 substations where it initially plans to implement storm surge/flood mitigation measures over the next three years (2020-2022). The total estimated costs for the new Substation Storm Surge/Flood Mitigation over this three-year period is approximately $23 million with an annual average cost of approximately $8 million per year.1 A detailed description of the Storm Surge/Flood Mitigation - Transmission and Distribution Program is provided in Section IV(F) of FPL's SPP. Please provide a summary of FPL's Vegetation Management - Distribution Program included in the SPP. The Vegetation Management - Distribution Program included in the SPP is a continuation of FPL's existing, Commission-approved distribution vegetation management program. FPL's cunently-approved distribution vegetation program, includes the following system-wide vegetation management activities: three-year cycle for feeders; mid-year cycle targeted trimming for certain feeders; six-year cycle for laterals; and continued education of customers through its Right Tree, Right Place initiative. In approving FPL's current distribution vegetation management cycles, the Commission indicated that FPL's distribution vegetation management cycles were cost-effective and would provide savings to customers. Additionally, as explained in the SPP, recent storm events demonstrate that FPL's existing distribution vegetation management program has contributed to the overall improvement in the resiliency of distribution system during storms, resulting in reductions in storm damage to poles, days to restore, and storm restoration costs. Under the SPP, FPL plans to trim, on average, approximately 75,200 miles annually, including approximately 11,400 miles for feeders (cycle and mid-cycle) and 3,800 miles for laterals, which is consistent with the historic miles trimmed annually. The total estimated costs for the 7 See footnote I 14 1 2 aJ 4 5 6 7 8 9 10 11 t2 13 14 15 16 17 l8 19 20 21 22 23 24 a. A. Vegetation Management - Distribution Program for the ten-year period of 2020-2029 is $596 million with an annual average cost of approximately $60 million, which is consistent with historical costs for the existing distribution vegetation management program.8 A detailed description ofthe Vegetation Management-Distribution Program is provided in Section IV(G) of FPL's SPP. Please provide a summary of FPL's Vegetation Management - Transmission Program included in the SPP. The Vegetation Management - Transmission Program included in the SPP is a continuation of FPL's existing transmission vegetation management program. The key elements of FPL's transmission vegetation management program are to inspect the transmission right-of-ways, document vegetation inspection results and findings, prescribe a work plan, and execute the work plan. In its SPP, FPL will continue its current transmission vegetation management plan, which includes visual and aerial inspections of all transmission line corridors, Light Detection and Ranging ("LiDAR") inspections of North American Electric Reliability Corporation's ("NERC") transmission line corridors, developing and executing annual work plans to address identified vegetation conditions, and identiffing and addressing priority and hazard tree conditions prior to and during storm season. As explained in the SPP, the execution of FPL's transmission vegetation management plan has been and is a significant factor in mitigating damage to transmission facilities and avoiding transmission-related outages. Under the SPP, FPL plans to inspect and maintain, on average, approximately 7,000 miles of transmission lines annually, including approximately 4,300 miles for NERC transmission line corridors and2,100 miles for non-NERC transmission line conidors. This is comparable to the approximately 7,000 miles inspected and maintained annually, on average for 2011-2019. 8,See footnote 1 15 1 2 aJ 4 5 6 7 8 9 10 11 12 13 t4 15 l6 17 18 19 20 21 22 z) 24 a. A. The total estimated costs for the Vegetation Management - Transmission Program for the ten- year period of 2020-2029 is $96 million with an annual average cost of approximately $10 million, which is consistent with historical costs for the existing transmission vegetation management program.e A detailed description of the Vegetation Management - Transmission Program is provided in Section IV(H) of FPL's SPP. TV. ADDITIONALDETAILS FORFIRST THREE YEARS OF THE SPP Has FPL provided additional project-level details and information for the first year (2020) of the SPP? Yes. The following additional information required by Rule 25-6.030(3)(e)(1), F.A.C., for the first year (2020) of the SPP is provided in Appendix E to FPL's SPP: ( 1) the actual or estimated construction start and completion dates; (2) a description of the affected existing facilities, including number and type(s) of customers served, historic service reliability performance during extreme weather conditions, and how this data was used to prioritize the proposed storm protection project; and (3) a cost estimate including capital and operating expenses. Additionally, a description ofthe criteria used to select and prioritize proposed storm protection projects is included in the description ofeach proposed SPP program provided in Section IV ofthe SPP. Does FPL's SPP provide sufficient detail to develop preliminary estimates of the rate impacts for the second and third years (2021-2022) of the SPP? Yes. As required by Rule 25-6.030(3Xe)(2), F.A.C., FPL has provided the estimated number and costs of projects under each specific SPP program, which information was used to develop the estimated rate impacts for202l-2022. This information is provided in Appendix C to FPL's SPP. a. A. e See footnote I 16 i 2 J 4 5 6 7 8 9 10 11 l2 13 l4 15 l6 17 18 19 20 2l 22 23 24 a. a. A. Did FPL provide a description of its vegetation management activities under the SPP for the first three years (2020-2022) of the SPP? Yes. The following additional information required by Rule 25-6.030(3)(f), F.A.C., for the first three years (2020-2022) of the vegetation management activities under the SPP is provided in Sections IV(G) and IV(H) of FPL's SPP and Appendix C to FPL's SPP: the projected frequency (trim cycle); the projected miles of affected transmission and distribution overhead facilities; and the estimated annual labor and equipment costs for both utility and contractor personnel. Additionally, descriptions of how the vegetation management activities will reduce outage times and restoration costs due to extreme weather conditions are provided in Sections IV(G) and IV(H) of FPL's SPP. Has FPL provided the annual jurisdictional revenue requirements for the 2020-2029 SPP? Yes. Pursuant to Rule 25-6.030(3Xg), F.A.C., FPL has provided the estimated annual jurisdictional revenue requirements in Section VI of the SPP. While FPL has provided estimated costs by program as of the time of this filing and associated total revenue requirements in its SPP, consistent with the requirements of Rule 25-6.030, F.A.C., subsequent projected and actual program costs submitted for cost recovery through the Storm Protection Plan Cost Recovery Clause (per Rule 25-6.031, F.A.C.) could vary by as much as l0-15%o, which variations would also impact the associated estimated revenue requirements and rate impacts. The projected costs, actuall estimated costs, actuals costs, and true-up ofactual costs to be included in FPL's Storm Protection Plan Cost Recovery Clause will all be addressed in subsequent filings in separate Storm Protection Plan Cost Recovery Clause dockets pursuant to Rule 25-6.031, F.A.C.ro Has FPL estimated the rate impacts for each of the first three years of the SPP? a. A 10 The Commission has opened Docket No. 20200092-EI to address Storm Protection Plan Cost Recovery Clause petitions to be filed the third quarter of 2020. t7 1A. 2 aJ 4 5 6 7 8 9 10 1l l2 13 a. t4 15 l6 17 A. 18 l9 20 2l 22 23 24 FPL anticipates the programs included in the SPP will have zero bill impacts on customer bills during the first year of the SPP and only minimal bill increases for years two and three of the SPP. An estimate of the hypothetical overall rate impacts for the first three years of the SPP (2020-2022) based on the total program costs reflected in this filing, without regard for the fact that FPL remains under a general base rate freeze pursuant to a Commission-approved settlement agreement through December 31, 2021, are provided in Section VII of the SPP. The projected costs, actual/estimated costs, actuals costs, and true-up ofactual costs to be included in FPL's Storm Protection Plan Cost Recovery Clause will all be addressed in subsequent filings in separate storm protection plan cost recovery clause dockets pursuant to Rule 25- 6.031, F.A.C.rr V. CONCLUSION Does FPL believe that its SPP will achieve the legislative objectives of Section 366.96, F.S., to reduce costs and outage times associated with extreme weather events by promoting the overhead hardening of electrical transmission and distribution facilities, the undergrounding of certain electrical distribution lines, and vegetation management? Yes. While no electrical system can be made completely resistant to the impacts of hurricanes and other extreme weather conditions, FPL's SPP provides a systematic approach to achieve the legislative objectives of reducing restoration costs and outage times associated with extreme weather events and enhancing reliability. As explained above and in further detail in the SPP, FPL's SPP programs are largely a continuation and expansion of FPL's already successful and ongoing storm hardening and storm preparedness programs previously approved by the Commission, as well as a new storm hardening program to protect T&D substations and equipment from storm surge and flooding due to extreme weather events. These SPP programs lrSee footnote 10 18 2 J 4 5 6 7 a. A. will continue to provide increased T&D infrastructure resiliency, reduced restoration time, and reduced restoration costs when FPL's system is impacted by extreme weather events. FPL's SPP appropriately and effectively maintains and builds on FPL's commitment to provide safe and reliable electric service to customers, and to meet the needs and expectations of our customers, today and for many years to come. Does this conclude your direct testimony? Yes. l9 Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 1 of 48 Florida Power & Light Company Storm Protection Plan 2020-2029 (Rule 25-6.030, F.A.C.) Docket No. 20200071-El April 10, 2020 TABLE OF CONTENTS Executive Summary. The 2020-2029 SPP will Strengthen FPL's lnfrastructure to Withstand Extreme Weather Conditions and will Reduce Restoration Costs and Outage Times Description of Service Area and T&D Facilities.......... 2020-2029 SPP Programs.......... A. Pole lnspections-Distribution Program..................... 1. Description of the Program and Benefits.......... 2. Actual/Estimated Start and Completion Dates . 3. CostEstimates.......... 4 Comparison of Costs and Benefits....... B 5. Criteria used to Select and Prioritize the Program Structures/Other Equipment lnspections - Transmission Program 1. Description of the Program and 8enefits.............. 2. Actual/Estimated Start and Completion Dates 3 Cost Estimates..... 4. Comparison of Costs and 8enefits............. 5. Criteria used to Select and Prioritize the Program .. C. FeederHardening (EWL)-Distribution Program.............. 1. Description of the Program and 8enefits................. 2. Actual/Estimated Start and Completion Dates ........ 3 Cost Estimates D 4. Comparison of Costs and Benefits............. 5. Criteria used to Select and Prioritize the Program ........ Lateral Hardening (Undergrounding) - Distribution Program... 1. Description of the Program and 8enefits............. 2. Actual/Estimated Start and Completion Dates 3. CostEstimates.......... 4. Comparison of Costs and Benefits............. 5. Criteria used to Select and Prioritize the Program ........ Docket No. 20200O71-El FPL's 2020-2O29 Storm Protection Plan Exhibit MJ-1, Page 2 of 48 .3 .6 .7 .7 .7 10 10 11 11 ...........12 ...........12 ...........14 ...........14 ...........15 ........... 1 5 ...........16 ...........16 ...........20 '''.'',,.,.21 ',,,''.'.''21 '',,..,.',.21 ...........22 ...........22 ...........25 ...........25 ,.,..''.'.'25 ...........26 1 lt IV Docket No. 202O0071-El F PL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 3 of 48 E Wood Structures Hardening (Replacing) - Transmission Program 1. Description of the Program and Benefits.............. 2. ActualiEstimated Start and Completion Dates..... 3. CostEstimates......... 4. Comparison of Costs and Benefits............. 5. Criteria used to Select and Prioritize the Program F. Substation Storm Surge/Flood Mitigation Program L Description of the Program and 8enefits..................... 2. Actual/Estimated Start and Completion Dates 3. CostEstimates......... 4. Comparison of Costs and Benefits............. 5. Criteria used to Select and Prioritize Projects............. G. Vegetation Management - Distribution Program .......... 1. Description of the Program and Benefits..................... 2. Actual/Estimated Staft and Completion Dates 3. CostEstimates......... 4. Comparison of Costs and Benefits............. 5. Criteria Used to Select and Prioritize the Program...... H. Vegetation Management - Transmission Program 1. Description of the Program and Benefits..................... 2. Actual/Estimated Start and Completion Dates 3. CostEstimates......... 4. Comparison of Costs and Benefits............. 5. Criteria used to Select and Prioritize the Programs..... Detailed lnformation on the First Three Years of the SPP (2020- 2022) A. Detailed Description for the First Year of the SPP (2020)....................... B Detailed Description of the Second and Third Years of the sPP (2021-2022) c Detailed Description of the Vegetation Management Activities for the First Three Years of the SPP (2020-2022) Estimate of Annual Jurisdictional Revenue Requirements for the 2020-2029 SPP......... ..r.............. 26 26 28 V 41 41 41 41 ii VI 42 Vll. Estimated Rate lmpacts for First Three Years of the SPP (2020- 2022) Vlll. Conclusion Appendices: Appendix A - Docket No. 2O2O0071-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 4 of 48 FPL's Third Supplemental Response to Staffs First Data Request No. 29 ('Third Supplemental Amended") in Docket No. 2017021s-El FPL Management Areas and Customers Served FPL 2020-2029 SPP Estimated Annual Costs and Estimated Number and Costs of Projects FPL Distribution Design Guidelines Project Level Detail for First Year of the SPP (2020) 43 44 Appendix B - Appendix C - Appendix D - Appendix E - ilt Docket No. 20200071-El FPL'9 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 5 of 48 Florida Power & Light Gompany 2020-2029 Storm Protection Plan l. Executive Summary Pursuant to Section 366.96, Florida Statutes ("F.S."), and Rule 25-6.030, Florida Administrative Code ("F.A.C.'), Florida Power & Light Company ('FPL") submits its Storm Protection Plan for the ten (10) year period 2020-2029 (hereinafter, the "SPP'). As explained herein, the SPP is largely a continuation of FPL's successful storm hardening and storm preparedness programs previously approved by the Florida Public Service Commission ("Commission") over the last fourteen years. FPL anticipates the programs included in the SPP will have zero bill impacts on customer bills during the first year of the SPP and only minimal bill increases for years two and three of the SPP.1 Since 2006, FPL has been implementing Commission-approved programs to strengthen its transmission and distribution ("T&D") infrastructure. These programs include multiple storm hardening and storm preparedness programs, such as feeder hardening, replacing wood transmission structures, vegetation management, and pole inspections. As demonstrated by recent storm events, these ongoing storm hardening and storm preparedness programs have resulted in FPL's T&D electricalgrid becoming more storm resilient, experiencing less infrastructure damage and reduced restoration times, as compared to non-hardened facilities. These programs have also provided significant improvements in dayto-day reliability. The success of FPL's storm hardening and storm preparedness programs has been achieved through the development and implementation of FPL's fonuard-looking storm hardening, grid modernization, and reliability initiatives and investments, combined with the use of cutting-edge technology and strong employee commitment. Under the SPP, FPL remains committed to continue these successful and industry-leading programs to 1 The recovery of the costs associated with the SPP, as well as the actual and projected costs to be included in FPL's Storm Protection Plan Cost Recovery Clause, will be addressed in a subsequent and separate Storm Protection Plan Cost Recovery Clause docket pursuant to Rule 25-6.031, F.A.C. 1 Docket No. 2O200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 6 of 48 further strengthen its T&D infrastructure, mitigate restoration costs and outage times, continue to provide safe and reliable electric service to customers, and meet future increasing needs and expectations. As stated previously, FPL's SPP is, in large part, a continuation and expansion of its previously approved storm hardening and storm preparedness programs, and includes the following SPP programs: . Pole lnspections - Distribution Program . Structures/Other Equipment Inspections - Transmission Program . Feeder Hardening (EWL) - Distribution Program . Lateral Hardening (Undergrounding) - Distribution Program . Wood Structures Hardening (Replacing) - Transmission Program . Vegetation Management - Distribution Program . Vegetation Management - Transmission Program ln addition, FPL will implement a new Substation Storm Surge/Flood Mitigation Program to harden certain targeted substations that, based on prior experience, are susceptible to storm surge or flooding during extreme weather events. With the exception of the new storm surge/flood mitigation program, the majority of the programs included in the SPP have been in place since 2007. As demonstrated by recent storm events, these programs have been successful in reducing restoration costs and outage times following major storms, as well as improving dayto-day reliability. FPL submits that continuing these previously approved storm hardening and storm preparedness programs in the SPP, together with the new storm surge/flood mitigation substation program, is appropriate and necessary to address the mandates set forth in Section 366.96, F.S., and Rule 25-6.030, F.A.C., as well as the expectations of FPL's customers and other stakeholders for increased storm resiliency and will result in fewer 2 Docket No. 2O2OOO71-EI FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-'1 , Page 7 of 48 outages, reduced restoration costs, and prompt service restoration.2 The SPP will continue and expand the benefits of hardening, including improved day{o-day reliability, to all customers throughout FPL's system. The following sections provide information and details on FPL's SPP as required by and in compliance with Rule 25-6.030, F.A.C. For the reasons explained below, FPL submits that implementing the SPP is necessary and appropriate to achieve the goals and requirements expressed by the Florida Legislature in Section 366.96, F.S., to reduce restoration costs and outage times associated with extreme weather events and improve overall service reliability to customers and the State of Florida by promoting the overhead hardening of electrical transmission and distribution facilities, the undergrounding of certain electrical distribution lines, and vegetation management. ll. The 2020-2029 SPP will Stren qthen FPL's lnfrastructure to Withstand Extreme Weather Gonditions and will Reduce Restoration Costs and Outaqe Times Pursuant to Rule 25-6.030(3)(a), F.A.C., this section provides an overview of how the SPP will strengthen FPL's electric utility infrastructure to withstand extreme weather conditions by promoting the overhead hardening of electricaltransmission and distribution facilities, the undergrounding of certain electrical distribution lines, and vegetation management. Consistent with Rule 25-6.030(3Xb), F.A.C., this section also provides a summary of how the SPP is expected to further reduce restoration costs and outage times associated with extreme weather conditions and, therefore, improve overall service reliability. To date, significant progress has been made toward strengthening FPL's infrastructure. For example, at year-end 2019, approximalely 54o/o of FPL's distribution feeders have been either hardened or placed underground, and approximately 96% of FPL's transmission structures are either steel or concrete. Also, since 2006, FPL has completed multiple system-wide cycles of distribution and transmission pole inspections and 2 As explained below, a couple of the programs included in the SPP are expected to be completed within the next severalyears. 3 Docket No. 2O200071-El FPL's 2020-2029 Storm Protection PIan Exhibit MJ-'l , Page 8 of 4B vegetation management. Within the next few years several significant milestones are also expected to be reached, including replacement of all wood transmission structures with steel or concrete structures by year-end 2022 and for all feeders to be hardened or placed underground by year-end 2024. FPL also implemented a three-year Storm Secure Underground Program Pilot in 2018 ("SSUP Pilot") that converts certain targeted overhead laterals - laterals that have been impacted by recent storms and have a history of vegetation-related outages and other reliability issues - to underground laterals. At year-end 2020, the final year of the SSUP Pilot, FPL expects 220-230 of these targeted laterals to be converted from overhead to underground. ln addition, FPL's Design Guidelines incorporate and apply extreme wind loading (.EWL') criteria to the design and construction of all new overhead pole lines and major planned work, including pole line extensions, relocations, and certain pole replacements. FPL's SPP programs have already demonstrated that they have and will continue to provide increased T&D infrastructure resiliency, reduced restoration time, and reduced restoration costs when FPL's system is impacted by severe weather events. ln FPL's Third Supplemental Response to Staff's First Data Request No. 29 ("Third Supplemental Amended") in Docket No. 20170215-E1,3 FPL prepared and submitted an analysis of Hurricanes Matthew and lrma that indicated the restoration construction man-hours ('CMH'), days to restore, and storm restoration costs for these storms would have been significantly higher without FPL's storm hardening programs. Below is a summary of the results of FPL's analysis: Without Hardeni Hurricane Matthew Hurricane lrma 3 The Commission opened Docket No. 20170215-El to review electric utility preparedness and restoration actions and to identify potential areas where infrastructure damage, outages, and recovery time for customers could be minimized in the future. Additional CMH (%)93,000 (36%)483,000 (40o/o) 2 (50o/o)4 (40%)Additionaldays to restore (%) $105 (36%)$4e6 (40%)Additional restoration costs ($millions) (%) 4 Docket No. 2O2O0071-E\ FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page g of 48 A copy of FPL's Third Supplemental Amended Response in Docket No. 20170215-El, including the analysis referenced above, is provided in Appendix A. Based on a 40-year net present value analysis, the savings achieved from storm hardening would equate to $653 million (for a storm occurring once every three years) and $406 million (for a storm occurring once every five years) for a storm similar to Hurricane Matthew and $3.1 billion (for a storm occurring once every three years) and $1.9 billion (for a storm occurring once every five years) for a storm similar to Hurricane lrma. These programs have also provided increased levels of dayto-day reliability. For example, FPL has previously submitted reports to the Commission that show hardened feeders have performed approximately 40% better (i.e., fewer outages) on a day{o-day basis than non-hardened feeders.a Further details on the benefits of the SPP programs are provided throughout the remaining sections of this SPP. Although FPL's storm preparedness and hardening programs to date have produced a more storm resilient and reliable T&D electrical grid, FPL must continue its efforts to storm-harden its T&D electrical grid consistent with the findings, conclusions, and objectives of the Florida Legislature in Section 366.96, F.S. lndeed, Florida remainsthe most hurricane-prone state in the nation and, with the significant coast-line exposure of FPL's system and the fact that the vast majority of FPL's customers live within 20 miles of the coast, a robust storm protection plan is critical to maintaining and improving grid resiliency and storm restoration. Safe and reliable electric service is essential to the life, health, and safety of the public, and has become a critical component of modern life. lmportantly, as evidenced by the significant numbers of Florida's workforce that are working remotely during the COVID- 19 pandemic, today's digital society, economy, national security, and daily life are more dependent on reliable electric service than ever before. While no electrical system can be made completely resistant to the impacts of hurricanes and other extreme weather conditions, the programs included in FPL's SPP have already demonstrated that they 5 a See Appendix A Docket No. 20200071-El FPL's 202O-2029 Storm Protection Plan Exhibit MJ-1 , Page 10 of 48 mitigate and will continue to mitigate the impacts of future storms.s While FPL's nation- leading initiatives have made significant progress toward strengthening FPL's infrastructure, continuing these previously approved storm hardening and storm preparedness programs in the SPP, together with the new storm surgelflood mitigation substation program, is appropriate and crucial to further mitigate restoration costs and outage times, continue to provide safe and reliable electric service to customers, and meet current and future needs and expectations of customers, today and for many years to come. lll. Description of Servic e Area and T&D Facilities Pursuant to Rule 25-6.030(3)(c), F.A.C., this section provides a description of FPL's service area, including areas prioritized for enhancement, if any, and any areas where FPL has determined that enhancement of its existing T&D facilities would not be feasible, reasonable, or practical at this time. Today, FPL's service territory consists of approximately 28,000 square miles. To serve its more than 5 million customers, FPL has constructed a T&D electric grid that contains approximately 75,000 miles of electrical lines, including: . Approximately 42,000 miles of overhead distribution lines; . Approximately 26,000 miles of underground distribution lines; . Approximately 7,000 miles of high-voltage transmission lines; . Approximately 1.2 million distribution poles; and . Approximately 68,000 transmission structures. FPL's service territory is divided into sixteen (16) distribution management areas. A map depicting FPL's service territory and distribution management areas (with the number of customers served within each management area) is provided in Appendix B. At this time, FPL has not identified any areas of its service territory where its SPP programs would not be feasible, reasonable, or practical. While all of FPL's SPP 5 lt is important to note that despite the implementation of these storm hardening and storm preparedness programs, outages will still occur when severe weather events impact Florida. 6 Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-l, Page 11 of 48 programs are currently system-wide initiatives, annual activities are prioritized based on certain factors such as last inspection date, last trim date, reliability performance, and efficient resource utilization.o At this time, there is no area specifically targeted or prioritized for enhanced performance based on its geographical location. lV. 2020-2029 SPP Proqrams Pursuant to Rule 25-6.030(3XcXd), F.A.C., this section provides a description of each program included in FPL's SPP. lf applicable, each program description below includes: (1) a description of how each program is designed to enhance FPL's existing transmission and distribution facilities including an estimate of the resulting reduction in outage times and restoration costs due to extreme weather conditions; (2) identification of the actual or estimated start and completion dates of the program; (3) a cost estimate including capital and operating expenses; (4) a comparison of the costs and the benefits; and (5) a description of the criteria used to select and prioritize storm protection programs. A. Pole lnspections - Distribution Program 1. Description of the Proqram and Benefits The Pole lnspection - Distribution Program included in the SPP is a continuation of FPL's existing Commission-approved distribution pole inspection program. Below is an overview of FPL's existing distribution inspection program and its associated benefits. a. Overview of the Distribution Pole Inspection Proqram ln response to the 2004-2005 storm seasons and, in particular, the "large number of poles throughout Florida that required replacement," the Commission required investor-owned utilities ("lOUs") to implement an eight-year pole inspection cycle for all wood distribution poles.T FPL's plan was approved in September 20068 and modified in January 2007.s 6 The criteria and factors used to select and prioritize projects within each SPP program are described below. 7 See Order No. PSC-06-0144-PAA-El. 8 See Order No. PSC-06-0778-PAA-EU. e See Order No. PSC-07-0078-EU. 7 Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 12 of 48 Subsequently, FPL expanded its distribution pole inspection plan to also include concrete poles. FPL's eight-year pole inspection cycle for all distribution poles targets approximately 1/8 of the system annually (the actual number of poles inspected can vary somewhat from year to year). To ensure inspection coverage throughout its service territory, FPL established nine (9) inspection zones (based on FPL's management areas and pole population)and annually performs pole inspections of approximately 1/8 of the distribution poles in each of these zones, as well as any necessary remediation as a result of such inspections. FPL utilizes Osmose Utilities Services, lnc. ("Osmose"), an industry-leading pole inspection contractor, to perform the system-wide inspection of its distribution poles. FPL's strength and loading calculations for its distribution poles and pole inspections are based on the National Electrical Safety Code's ("NESC') Grade B construction standard, as outlined by Table 261-1A section 26 of the NESC. Osmose utilizes mobile computing technology to record inspection data and to calculate strength and loading. The loading calculation, span lengths, attachment heights, and wire sizes are recorded in the mobile computer to determine whether the remaining pole strength capacity meets or exceeds NESC requirements. This data is then transferred to FPL's Geographic lnformation System ("GlS'). Pole locations inspected by Osmose are also randomly audited by FPL to verify that inspections are completed and meet inspection standards. lnspections include a visual inspection of all distribution poles from the ground-line to the top of the pole to identify visual defects (e.9., woodpecker holes, split tops, decayed tops, cracks, etc.). lf, due to the severity of the defects, the poles are not suitable for continued service, the poles are designated for replacement. Wood poles that pass the above-ground visual inspection are excavated to a depth of 18" (where applicable), and sounded and bored to determine the internal condition of the pole. Poles encased in concrete or asphalt are not excavated, but are sounded and bored to determine their internal condition using a standard industry-accepted inspection process called "Shell Boring." All suitable wood poles receive external and/or internal preservative treatment or, if not suitable, are replaced. Strength calculations are also 8 Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page '13 of 48 performed on wood poles to determine compliance with NESC requirements. The poles that are not suitable for continued service are designated for replacement or remediation. ln 2014, FPL obtained Commission approval to: (1) exempt the loading assessment during the second eight-year cycle for any pole that had less than 80% of full load during FPL's initialeight-year cycle; and (2) excavate Chromium CopperArsenate ('CCA") poles every 28 years (extended from 16 years originally approved by the Commission).1o To ensure that these exceptions to the standard eight-year inspection cycle do not compromise existing safety and storm hardening programs, FPL conducts annual testing on 1o/o of the exempted poles. b. Benefits of the Distribution Pole Inspection Proqram The Commission has previously found that "efforts to maintain system components can reduce the impact of hurricanes and tropical storms upon utilities' transmission and distribution systems," and noted that an "obvious key component in electric infrastructure is the transmission and distribution poles."lt The Commission has also previously identified multiple benefits of and reasons for justifying pole inspections cycles for electric utilities, including, but no limited to: the likelihood of increased hurricane activity in the future, the high probability for equipment damage if a pole fails during a storm; the likelihood that failure of one pole often causes other poles to fail; the fact that deteriorated poles are more prone to fail when exposed to high winds; the fact that Florida electric utilities replaced nearly 32,000 poles during the 2004 storm restoration efforts; and the fact that restoration times increase significantly when a large number of poles fail, which limits the electric utilities' ability to respond quickly to widespread outages.l2 ln addition to the benefits discussed above that underlie the creation of the Commission's mandated pole inspection requirements, recent storm events indicate that FPL's distribution pole inspection program has contributed to the overall improvement in distribution pole performance during storms, resulting in reductions in storm damage to poles, days to restore, and storm restoration costs. The table below compares distribution 10 See Order No. PSC-14-0594-PAA-El 11 See Order No. PSC-06-0144-PAA-E. 12 See id. I Docket No. 2O20OO71-E\ FPL'i 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 14 of 48 pole performance for Hurricane Wilma, which occurred in 2005 before FPL implemented its current distribution pole inspection program, and Hurricane lrma, which occurred in 2017 after FPL implemented its current distribution pole inspection program: Hurricane Wilma Hurricane lrma H u rricane Strength (Category)3 4 Customer Outages (Millions)3.2 4.4 Distribution Poles Replaced >12,400 <2,90013 Total Days to Restore 18 10 Average Days to Restore 5.4 2.1 FPL's Commission-approved distribution pole inspection program has facilitated the replacement and/or strengthening of over 140,000 distribution poles since it was first implemented in 2006 and has directly improved and will continue to improve the overall health and storm resiliency of its distribution pole population. 2. Actual/Estimated Start and Comoletion Dates The SPP will continue FPL's ongoing Commission-approved distribution pole inspection program described above. With approximately 1.2 million distribution poles as of year- end 2019, FPL expects to inspect approximately 150,000 poles annually (spread throughout its nine inspection zones) during the 2020-2029 SPP period. 3. Cost Estimates Estimated/actual annual distribution pole inspection costs are a function of the number of inspections estimated to be/actually completed and the number of poles estimated to be/actually remediated/replaced as a result of the annual inspections. Although costs to inspect the poles are operating expenses, the vast majority of pole inspection program costs are capital costs resulting from remediation/replacement of poles that fail inspection. 13 Approximately 99% of distribution poles replaced after Hurricane lrma were non-hardened poles. 10 Docket No. 2O200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1, Page 15 of 4B The table below provides a comparison of the 2017-2019 total actual distribution pole inspection costs with the 2020-2022 (first three years of the SPP) total estimated distribution pole inspection costs and the 2020-2029 lolal estimated distribution pole inspection costs: Total Program Costs Annual Average Program millions Costs millions Further details regarding SPP estimated distribution pole inspection costs, including estimated annual capitalexpenditures and operating expenses, are provided in Appendix c.14 4. Comparison of Costs and Benefits As provided in Section (|VXAX3) above, during 2020-2029, total costs for FPL's Pole lnspection - Distribution Program are expected to average approximately $61 million per year. Benefits associated with FPL's Pole lnspection - Distribution Program, discussed in Sections ll and |V(AX1)(b) above, include a more storm resilient pole population that will result in reductions in pole failures and poles needing to be replaced during storms, fewer storm-related outages and reductions in storm restoration costs. 5. Criteria used to Select and Prioritize the Proqram Poles to be inspected annually are selectediprioritized within each of the nine (9) inspection zones established throughout FPL's service territory based on the last cycle's inspection dates, to ensure that poles are in compliance with FPL's established eight-year 14 Note, lhe 2020-2029 program costs shown above are projected costs estimated as of the time of this filing. Subsequent projected and actual costs could vary by as much as 10% to 15%. The annual projected costs, actual/estimated costs, actuals costs, and true-up of actual costs to be included in FPL's Storm Protection Plan Cost Recovery Clause will all be addressed in subsequent and separate Storm Protection Plan Cost Recovery Clause filings pursuant to Rule 25-6.031, F.A.C. The Commission has opened Docket No.20200092-EI to address Storm Protection Plan Cost Recovery Clause petitions to be filed the third quarter of 2020. 2017-2019 $1 sz $51 2020-2022 $1 70 $57 2020-2029 $605 $61 11 Docket No. 20200071-El FPL's 2020-2O29 Storm Protection Plan Exhibit MJ-1 , Page 16 of 48 cycle. As such, approximately 1/8 of the distribution poles in each inspection zone are inspected annually. At this time, FPL has not identified any areas where the Pole lnspection - Distribution Program would not be feasible, reasonable or practical. B. Structures/Other Equipment lnspections Transmission Program 1. Description of the Proqram and Benefits The StructuresiOther lnspections - Transmission Program included in the SPP is a continuation of FPL's existing Commission-approved transmission inspection program. Below is an overview of FPL's existing transmission inspection program and the associated benefits. a Overuiew of the lransmission ln sncafion Prooram ln 2006, as part of its Storm Preparedness lnitiative No. 3, the Commission required electric utilities to develop and implement plans to fully inspect alltransmission structures, substations, and all hardware associated with these facilities on a six-year cycle. Consistent therewith, FPL implemented a Commission-approved transmission inspection plan in 2006 and has continued that plan to date. Under its Commission-approved transmission inspection plan, FPL inspects its transmission circuits, substations, and other equipment on a six-year cycle. Additionally, all of FPL's transmission structures are visually inspected from the ground each year. Finally, FPL performs climbing or bucket truck inspections on all wood transmission structures on a six-year cycle and all steel and concrete structures on a ten-year cycle. lnspections for wood structures include an overall assessment of the condition of the structures, as well as other pole/structure components including the foundation, all attachments, insulators, guys, cross-braces, cross-arms, and bolts. lf a wood transmission structure does not pass visual inspection, it is designated for replacement with a concrete or steel transmission structure. 12 Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 17 of 48 For steel and concrete structures, the visual inspection includes an overall assessment of the structure condition (e.9., cracks, chips, exposed rebar, and rust) as well as other pole/structure components including the foundation, all attachments, insulators, guys, cross-braces, cross-arms, and bolts. lf a concrete or steel pole/structure fails the inspection, it is designated for repair or replacement. The SPP will continue FPL's current transmission inspection program which requires: (a) transmission circuits and substations and all associated hardware to be inspected on a six-year cycle; (b) wood structures to be inspected visually from the ground each year and climbing or bucket truck inspections to be conducted on a six-year cycle; and (c) steel and concrete structures to be inspected visually each year and climbing or bucket truck inspections to be conducted on a ten-year cycle. b. Benefits of the Transmission lnspection Program As noted in Section IV(AX1)(b) above, the Commission has found numerous benefits and reasons justifying inspections of electrical utility facilities, including transmission facilities. lmportantly, the transmission system is the backbone of the electric grid. While outages associated with distribution facilities (e.9., a transformer, lateral orfeeder) can result in an outage affecting anywhere from a few customers up to several thousands of customers, a transmission related outage can affect tens of thousands of customers. Additionally, an outage on a transmission facility could cause cascading (a loss of power at one transmission facility can trigger the loss of power on another interconnected transmission facility, which in turn can trigger the loss of power on another interconnected transmission facility, and so on) and result in the loss of service for hundreds of thousands of customers. As such, it is imperative that transmission facilities be properly inspected using appropriate cycles and standards to help ensure they are prepared for storms. Further, the performance of FPL's transmission facilities during recent storm events indicates FPL's transmission inspection program has contributed to the overall storm resiliency of the transmission system and provided savings in storm restoration costs. The table below compares the performance of FPL's transmission system for Hurricane Wilma, which occurred in 2005 before FPL implemented its current transmission 13 Docket No. 202OO071-E\ FPL'9 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 1B of 48 inspection program, and Hurricane lrma, which occurred in 2017 after FPL implemented its current transmission inspection program: Transmission Facilities Hurricane Wilma Hurricane lrma lm ent As shown above, the impacts on FPL's transmission facilities associated with Hurricane lrma were significantly reduced from those experienced with Hurricane Wilma, even though Hurricane lrma's winds were stronger and its path impacted substantially more of FPL's facilities. As reflected in the Commission's reasoning for mandating transmission facility inspections, FPL submits that its systematic transmission inspection program is a key factor for this improved performance. 2. Actual/Estimated Start and Comoletion Dates The SPP will continue FPL's ongoing Commission-approved transmission inspection program described above. This requires FPL to inspect: (a) transmission circuits and substations and all associated hardware on a six-year cycle; (b) wood structures to be visually inspected from the ground each year and conduct climbing or bucket truck inspections on a six-year cycle; and (c) steel and concrete structures visually each year and conduct climbing or bucket truck inspections on a ten-year cycle. 3. Cost E mates Estimated/actual annual transmission inspection costs are a function of the number of inspections estimated to be/actually completed and the transmission facilities estimated to be/actually remediated/replaced as a result of those annual inspections. Although the inspection costs are operating expenses, the vast majority of the transmission inspection program costs are capital costs resulting from remediationireplacement of facilities that fail inspection. The table below provides a comparison of the 2017-2019 total actual transmission inspection costs with the 2020-2022 (first three years of the SPP) total estimated 215 38%Line Section Outages 345 620/o24192Substation Outages 100 5 95o/oStructures Failed 14 Docket No. 2O2OO071-El F PL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 19 of 48 transmission inspection costs and the 2020-2029 total estimated transmission inspection costs: Total Program Costs Annual Average Program millions Gosts illions Further details regarding the SPP estimated transmission inspection costs, including estimated annualcapitalexpenditures and operating expenses, are provided in Appendix c.15 4. Comparison of Costs and Benefits As provided in Section |V(BX3) above, during 2020-2029, total costs for FPL's Structures/Other lnspections - Transmission Program are expected to average approximately $50 million per year. Benefits associated with the Structures/Other lnspections - Transmission Program discussed in Sections ll and |V(BX1)(b) above, include avoiding outages that can affect tens of thousands of customers and, in particular, cascading outages where the loss of service can affect hundreds of thousands of customers. 5 Criteria used fo Se lect and Prioritize the Prooram As explained above, FPL visually inspects from the ground alltransmission structures on an annual basis. For the inspection of transmission circuits and substations and all associated hardware, the facilities are selected/prioritized throughout FPL's service territory based on the last cycle's inspection dates, to ensure that facilities are inspected in compliance with the established six-year inspection cycle. Similarly, for bucket truck or climbing inspections, structures are selected/prioritized throughout FPL's service territory based on the last cycle's inspection dates, to ensure that structures are inspected 2017-2019 $1 28 $43 2020-2022 $e7 $32 2020-2029 $500 $50 15 See footnote 14 15 Docket No. 20200071-El FPL's 2020-2o29 Storm Protection Plan Exhibit MJ-1, Page 20 of 4B in compliance with the established six-year (wood) and ten-year (steel and concrete) cycles. At this time, FPL has not identified any areas where the Structures/Other lnspections - Transmission Program would not be feasible, reasonable or practical. c. Feeder Hardening (EWL) - Distribution Program 1. Description of the Proqram and Benefits The Feeder Hardening (EWL) - Distribution Program included in the SPP is a continuation of FPL's existing Commission-approved approach (most recently approved in Docket No.20180144-El) to harden existing feeders and certain critical distribution poles, as well as FPL's initiative to design and construct new pole lines and major planned work to meet the NESC's extreme wind loading criteria ("EWL'). FPL will continue the distribution feeder hardening program unlil2024, when FPL expects 100% of its feeders to be hardened or underground. Below is an overview of FPL's existing distribution feeder hardening program and the associated benefits. a Overuiew of the Distribution Fe erler H a rden i no P roo ra m The foundation for FPL's distribution feeder hardening program was the extensive forensic and other analyses that FPL conducted after Hurricane Wilma.16 These analyses concluded that "wind only" (as opposed to, for example, trees or other flying debris) was the predominant root cause of distribution pole breakage. This data, together with the overall performance of FPL's transmission poles thatwere already built to the NESC EWL standards and the performance of hardened feeders during Hurricanes Matthew and Irma, formed the basis for FPL's feeder hardening strategy. The SPP will continue FPL's previously approved approach to apply EWL criteria to harden existing distribution feeders and certain critical poles. The NESC extreme wind map for Florida will continue to be applied to FPL's system by dividing the application of 16 These analyses were conducted either directly by FPL or with the aid of external resources (e.9., KEMA, lnc.). 16 Docket No. 20200071-El FPL's 202O-2029 Storm Protection Plan Exhibit MJ-1 , Page 21 of 48 EWL into three wind regions, corresponding to expected extreme winds of 105, 130 and 145 mph, as shown below. FPL Extreme Wind Reqions - mph (meter/sec) r{o(G3l 105 mph 130 mph 145 mph $(GA By evaluating each of the counties served by FPL, including each county's applicable wind zones, FPL determined that utilizing three extreme wind regions of 105, 130 and 145 mph for its service territory was appropriate for the following reasons: A smaller number of wind regions generate advantages through efficiency of work methods, training, engineering and administrative aspects (e.9., standards development and deployment); and I n a a The SPP will also continue to utilize FPL's Design Guidelines and processes that apply EWL criteria to the design and construction of new pole lines and major planned work, including pole line extensions and relocations and certain pole replacements. Depending on the scope of the work that is performed in a particular project, this could result in the EWL hardening of an entire circuit (in the case of large-scale projects) or in EWL hardening of one or more poles (in the case of small projects) so that the affected circuit will be in a position to be fully EWL hardened in the future. The Design Guidelines are Using 105, 130 and 145 mph wind zones is a well balanced approach that recognizes differences in the EWL requirements in the counties within each region. 17 Docket No. 20200071-El FPL'S 2020-2029 Storm Proiection Plan Exhibit MJ-1, Page 22 of 48 primarily associated with changes in pole class, pole type, and desired span lengths to be utilized. The Design Guidelines standardize the design and construction of new pole lines and major planned work to ensure that these projects align with FPL's hardening strategy. FPL's current pole sizing guidelines provide for a minimum installation of. Class 2 wood poles for all new feeder and three-phase lateral work; Class 3 wood pole for two-phase and single-phase lateral work; and Class 3 wood pole for service and secondary work. For critical poles, FPL's current pole sizing guidelines provide for the installation of concrete poles at accessible locations. These guidelines significantly increase the wind ratings (up to nearly 50 percent) from the Design Guidelines in place prior to 2007. FPL's current Distribution Design Guidelines are provided in Appendix D. To determine how an existing overhead circuit or critical pole will be hardened, a field survey of the circuit facilities is performed. By capturing detailed information at each pole location, such as pole type, class, span distance, attachments, wire size, and framing, a comprehensive wind-loading analysis can be performed to determine the current wind rating of each pole, and ultimately the circuit itself. This data is then used to identify specific pole locations on the circuit that do not meet the desired wind rating. For all poles that do not meet the applicable EWL, FPL develops recommendations to increase the allowable wind rating of the pole. FPL plans to continue to utilize its "design toolkit" that focuses on evaluating and using cost-effective hardening options for each location, including: Storm Guying - lnstalling a guy wire in each direction perpendicular to the line, which is a very cost-effective option but is dependent on proper field conditions; Equipment Relocation - Moving equipment on a pole to a stronger pole near- by; lntermediate Pole - lnstalling an additionalsingle pole within long span lengths, which reduce the span length and increases the wind rating of both adjacent poles; a a a 18 Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 23 of 4B Upgrading Pole Class - Replacing the existing pole with a higher class pole to increase the pole's wind rating, and; Undergrounding Facilities - Evaluated on a case-by-case basis using site- specific factors and conditions. These options are not mutually exclusive and, when used in combination with sound engineering practices, provide cost-effective methods to harden a circuit. FPL's design recommendations also take into consideration issues such as hardening, mitigation (minimizing damage), and restoration (improving the efficiency of restoration in the event of failure). Since multiple factors can contribute to losing power after a storm, utilizing this multi-faceted approach to pole design helps to reduce the amount of work required to restore power to a damaged circuit. b. Benefits of the Distribution Feeder Hardeninq Proqram Distribution feeders are the backbone of the distribution system and are critical component to providing safe and reliable electric service to FPL's customers. Thus, improving the storm resiliency of distribution feeders logically provides substantial benefits for customers. Therefore, hardening distribution feeders has been and continues to be one of FPL's highest storm hardening priorities. During the period 2006-2019, FPL hardened over 1,300 existing feeders, the vast majority being Critical Infrastructure Function ("CIF") feeders (i.e., feeders that serve hospitals, 911 centers, police and fire stations, water treatment facilities, county emergency operation centers) and Community Project feeders (r.e., feeders that serve other key community needs like gas stations, grocery stores, and pharmacies) throughout FPL's service territory. Additional feeders were hardened as a result of FPL's Priority Feeder Initiative, a reliability program that targeted feeders experiencing the highest number of interruptions and/or customers interrupted. As of year-end 2019, approximately 54% of FPL's feeders were either hardened or placed underground. Additionally, FPL has hardened 125 highway crossings and over 300 '01" switches (first pole out of a substation with a feeder switch). FPL also applied EWL to the design and construction of new pole a a 19 Docket No. 2O200071-El FPL's 2O20-2029 Storm Protection Plan Exhibit MJ-1, Page 24 of 48 lines and major planned work, including pole line extensions and relocations and certain pole replacements. As provided in previous FPL Annual Reliability Report filings and three-year Storm Hardening Plan filings (per Rule 25-6.0342, F.A.C.) hardened feeders perform better than non-hardened feeders. This has been demonstrated in-day-to-day reliability performance and during severe storms. For example, when comparing day-to-day reliability performance, hardened feeders have performed 40o/o better than non-hardened feeders. Also, during Hurricanes Matthew and lrma, hardened feeders performed better than non- hardened feeders. Additionally, in Docket No.20170215-EU, the Commission reviewed the electric utilities' storm hardening and storm preparedness programs and found for Hurricane lrma that: (1) outage rates were nearly 20% less for hardened feeders than non-hardened feeders; (2) CMH to restore hardened feeders were 50% less than non-hardened feeders (primarily due to hardened feeders experiencing less damage than non-hardened hardened feeders); and (3) hardened feeders had significantly less pole failures as compared to non-hardened feeders.lT 2. Actual/Estimated Start and Completion Dates FPL initiated its feeder hardening initiative in 2006. As of year-end 2019, there are approximately 1,600 feeders remaining to be hardened or placed underground. FPL expects to harden approximately 250-350 feeders annually, with 100% of FPL's feeders expected to be hardened or underground by year-end 2024 and with the final costs of the program to be incurred in 2025. 17 See Review of Florida's Electric Utility Hurricane Prepared ness and Restoration Actions 2018, Docket No. 20170215-EU (July 24,2018), available at http://www. psc.state.fl.us/librarvffilinqs/2018/04847-2018/04847-2018.odf. 20 Docket No. 2O200071-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1, Page 25 of 48 3. Cost Estimates Estimated distribution feeder hardening costs are determined utilizing the length of each feeder, the average historical feeder hardening cost per mile, and updated cost assumptions (e.9., labor and materials). The table below provides a comparison of the 2017-2019 total actual distribution feeder hardening costs with the 2020-2022 (first three years of the SPP) total estimated distribution feeder hardening costs and the total estimated distribution feeder hardening costs to be incurred over the period of 2020-202518: Total Program Costs Annual Average Program millions Costs millions Further details regarding the SPP distribution feeder hardening costs, including estimated annual capital expenditures are provided in Appendix C.1s 4. Comoarison of Costs and Benefits As provided in Section lV(C)(3) above, during 2020-2025, total costs for FPL's Feeder Hardening (EWL) - Distribution Program average approximately $534 million per year through 2025. Benefits associated with the Feeder Hardening (EWL) - Distribution Program discussed in Sections ll and |V(CX1)(b) above, include improved storm resiliency as well as improved dayto-day reliability. 5. Criteria used to Select and Prioritize the Proqram As explained above, there are approximately 1,600 feeders remaining to be hardened or placed underground. FPL attempts to spread its annual projects throughout its service territory. ln prioritizing the remaining existing feeders to be hardened each year, 18 lt is currently estimated that 100% of FPL's feeders will be hardened or underground by year- end 2024, with the final costs to be incurred in 2025. 1e See footnote 14. 2017-2019 $1,492 $497 2020-2022 $1,958 $653 2020-2025 $3,206 $534 21 Docket No. 2020007l-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 26 of 48 considerations include the feeder's historical reliability performance, restoration difficulties (e.9., environmentally sensitive areas, islands with no vehicle access, river crossings, etc.), on-going or upcoming internal/external projects (e.9., FPL maintenance or system expansion projects, municipal overhead/underground conversion project or municipal road project) and geographic location. At this time, FPL has not identified any areas where the Feeder Hardening (EWL) - Distribution Program would not be feasible, reasonable or practical. D. Lateral Hardening (Undergrounding) - Distribution Program 1. Description of the Prooram and Benefits ln 2018, FPL implemented a three-year Commission-approved SSUP Pilot. The SSUP Pilot is a program that targets ceftain overhead laterals for conversion from overhead to underground. As part of its SPP, FPL will expand undergrounding laterals in 2021-2029. Below is an overview of FPL's Lateral Hardening (Undergrounding) - Distribution Program and the associated benefits. a. Overview of the Distribution Lateral Hardeninq Proqram As part of the SPP, FPL will complete its existing approved three-year SSUP Pilot (in 2020) and expand the application of the SSUP during 2021-2029 to the implementation of the system-wide Lateral Hardening (Undergrounding) - Distribution Program. The SSUP Pilot targeted certain overhead laterals that were impacted by recent storms and that have a history of vegetation-related outages and other reliability issues for conversion from overhead to underground. Key objectives of the SSUP Pilot included validating conversion costs and identifying cost savings opportunities, testing different design philosophies, better understanding customer impacts and sentiments, and identifying barriers (e.9., obtaining easements, placement of transformers, and attaching entities' issues). Two design options are being utilized when FPL converts overhead laterals to underground, referred to as the North American and the European designs. The North American design currently is the predominant design, but both undergrounding designs eliminate all overhead lateral and service wire. The North American design generally 22 Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 27 of 48 utilizes more primary conductor and a greater number of smaller-sized transformers, with less customers per transformer, and is better suited for front lot construction and service. The European design utilizes more secondary conductor, and a smaller number of larger- sized transformers, with more customers per transformer, and is better suited for rear lot construction and service. Where practical, FPL attempts to relocate existing facilities from the rear of to the front of customers' premises; however, there are instances where that option is not available (e.9., FPL is unable to obtain easements in front of customers' premises). FPL's standard design is the North American design (front lot construction), but FPL is gaining important experience and knowledge from its utilization of the European design (rear lot construction), which it can then better utilize for future projects as appropriate. As part of the conversion process, FPL is also installing meter base adaptors that allow underground service to be provided to the customer by utilizing the existing meter and meter enclosure. The meter base adaptors minimize the impact on customer-owned equipment and facilities. For example, in certain situations, overhead to underground conversions of electric service can trigger a local electrical code requirement that necessitates a customer upgrade of the home's electric service panel. This can cost the customer thousands of dollars. However, by utilizing a meter base adaptor, overall costs are reduced and customers are able to avoid the need and expense to convert their electrical service pa nels. b. Benefits of the Distribution Lateral Hardeninq Proqram Laterals make up the majority of FPL's distribution system. For example, system-wide, there are over 180,000 laterals (including laterals with multi-stage fusing), in contrast to approximately 3,300 feeders, and there are 1.8 times as many miles of overhead laterals as there are overhead feeders (approximately 23,000 miles vs. 13,000 miles, respectively). Additionally, while feeders are predominately located in the front of customers' premises, many laterals are "rear of' or behind customers' premises. This is especially the case in older neighborhoods located throughout FPL's service territory. Generally, facilities in the rear of customers' premises take longer to restore than facilities in front of customers' premises because rear-located facilities are more difficult to access 23 Docket No. 2O2OO071-E\ FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 28 of 48 and are more likely to be near vegetation. This results in a greater amount of CMH being devoted to laterals during storm restoration. The basis for FPL's SSUP Pilot and the proposal to expand upon the Pilot under the SPP is the performance of the underground facilities as compared to overhead facilities and the extensive damage to the overhead facilities caused by vegetation during Hurricanes Matthew and lrma. This performance was demonstrated by the results of FPL's analysis referenced above in Section |V(AX1)(b) and contained in the Commission's Review of Florida's Electric lJtility Hurricane Preparedness and Restoration Actions in 2018,20 which is summarized in the table below: Storm and Facil Laterals Out Total Laterals % Out Finally, it is important to note that underground facilities also perform better than overhead facilities on a day-to-day basis. For example, based on the reliability performance metrics for overhead and underground facilities provided to the Commission in FPL's February 28,2020 Annual Reliability Report filing, the System Average lnterruption Duration lndex ("SAlDl') for underground facilities is significantly better than hybrid facilities (combination of overhead and underground) or overhead facilities as shown in the table below: Year SAIDI2l UGOHH brid 20 See footnote 17. 21 See pages 93-97 of FPL's February 28, 2020 Annual Reliability Report filing for more details on day-to-day reliability performance - overhead vs. underground. Matthew OH 3,473 82,729 4o/o 101,892 O.2o/oMatthew UG 238 24o/olrma OH 20,341 84,574 lrma UG 3,767 103,384 4o/o 102.4 60.0201521.4 2016 17.2 80.4 57.6 17.7 89.6 55.52017 2018 21.2 89.0 54.2 2019 30.3 87.4 49.4 24 Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 29 of 48 2. Actual/Estimated Start and Completion Dates FPL's SSUP Pilotwas initiated in 2018. Bythe end of 2020, the third and final yearof the SSUP Pilot, FPL expects to have converted a total of 220-230laterals from overhead to underground, which is consistent with the SSUP Pilot's plan most recently approved in Docket No. 20180144-El. As part of its SPP, FPL will incorporate, continue, and expand the SSUP to provide the benefits of underground lateral hardening throughout its system. After completing the SSUP Pilot in 2020, FPL estimates it will convert 300-700 laterals annually. ln 2024-2029 FPL estimates it will convert 800-900 laterals annually. 3. Cost Estimates Estimated lateral undergrounding costs are determined utilizing the length of each lateral, the average historical lateral undergrounding cost per mile, and updated cost assumptions (e.g., labor and materials). The table below provides a comparison of the 2018-2019 total actual costs for the SSUP Pilot with the 2020-2022 (first three years of the SPP) total estimated distribution lateral hardening program costs and the 2020-2029 total estimated distribution lateral hardening program costs: Total Annual Average P m Costs millions P ram Costs millions Further details regarding the SPP estimated distribution lateral hardening program costs, including estimated annual capitalexpenditures are provided in Appendix C.23 4. Comparison of Costs and Benefits As provided in Section lV(D)(3) above, during 2020-2029, total costs for FPL's Lateral Hardening (Undergrounding) - Distribution Program average approximately $510 million per year. Benefits associated with the Lateral Hardening (Undergrounding) - Distribution 22 The Storm Secure Underground Program Pilot was initiated in 2018. 23 See footnote 14. 2018-201922 $76 $38 2020-2022 $676 $225 2020-2029 $5,101 $510 25 Docket No. 20200071-El F PL's 2020-2O29 Storm Protection Plan Exhibit MJ-1, Page 30 of 48 Program discussed in Sections ll AND |V(DX1Xb) above, include improved storm resiliency as well as improved dayto-day reliability. 5. Criteria used to Select and Prioritize the Proqram FPL will selectiprioritize future laterals for conversion to undergrounding based on an overall feeder performance methodology. Rather than selecting individual "stand-alone" laterals, FPL will underground all the laterals on a feeder such that when a hardened feeder that has experienced an outage is restored, all associated underground laterals would also be restored (unless the underground lateralwas damaged). On average, there are currently 20-30 overhead laterals on a feeder. The selection and prioritization of the laterals to be converted will be based on a methodology that considers: (a) all of the overhead laterals on each feeder; (b) outage experience during the recent Hurricanes Matthew and lrma; (c) the number of vegetation-related outages experienced over the most recent 10 years; and (d) the total number of lateral and transformer outages experienced overthe most recent'10 years. These overhead lateral factors are totaled for each feeder, and the feeders are ranked based on these totals. All laterals on the feeders will then be hardened according to the ranking of each feeder. ln order to optimize resources and provide lateral hardening throughout FPL's system, lateral hardening projects will be performed annually in all sixteen (16) of FPL's management areas. At this time, FPL has not identified any areas where the Lateral Hardening (Undergrounding) - Distribution Program would not be feasible, reasonable, or practical. However, in areas that are more prone to flooding or storm surge, FPL will consider alternative construction methods (e.9., elevating transformer pads). E. Wood Structures Hardening (Replacing) - Transmission Program 1. Description of the Proqram and Benefits The Wood Structure Hardening (Replacing) - Transmission Program included in the SPP is a continuation of FPL's existing transmission hardening program through the end of 2022, when FPL expects that 100% of its transmission structures will be steel or concrete. 26 Docket No. 20200071-El FPL's 2020-2O29 Storm Protection PIan Exhibit MJ-1 , Page 31 of 48 Below is an overview of FPL's existing transmission wood structure hardening program and the associated benefits. a. Overview of the Transmission Hardenino Proqram While FPL's transmission facilities were affected by the 2004 and 2005 storms, the damage experienced was significantly less than the damage sustained by distribution facilities. A primary reason for this resulted from the fact that transmission structures were, at that time, already constructed to meet EWL consistent with Florida Statute 366.04 and the National Electrical Safety Code, Rule 250 C. Based on the forensic data collected from the 2004 and 2005 storms, FPL implemented a Commission-approved transmission storm hardening initiative to replace all wood transmission structures, which accounted for nearly 70 percent of all transmission structures replaced during lhe2004-2005 storm seasons, with steelor concrete structures. As explained below, this initiative is ongoing and expected to be completed by the end of 2022. As part of its SPP, FPL will continue its initiative to replace allwood transmission structures with steel or concrete structures. b. Benefits of the Transmission Hardeninq Proqram While an outage associated with distribution facilities (e.9., a transformer, lateral, or feeder) can impact up to several thousands of customers, a transmission-related outage can result in an outage affecting tens of thousands of customers. Additionally, an outage on a transmission facility could cause cascading (a loss of power at one transmission facility can trigger the loss of power on another interconnected transmission facility, which in turn can trigger the loss of power on another interconnected transmission facility, and so on) and result in the loss of service for hundreds of thousands of customers. As a result, the prevention of transmission-related outages is essential. As discussed earlier, while transmission facilities performed significantly better than distribution facilities during the 2004 and 2005 storms, there were several opportunities for improvement identified, including the replacement of wood transmission structures. As a result of its transmission inspection programs and its replacement of wood transmission structures, FPL's transmission facilities have demonstrated to be more storm resilient. 27 Docket No. 20200071-El FPL'9 2020-2029 Storm Protection Plan Exhibit MJ-1, Page 32 of 4B The table below compares the performance of FPL's transmission system for Hurricane Wilma, which occurred in 2005 before FPL implemented its current transmission hardening program, and Hurricane lrma, which occurred in 2017 after FPL implemented its current transmission hardening program: Hurricane Wilma Hurricane lrma % Line Section Outages 37%17o/o Transmission Structure Failures 100 5 (all non-hardened) Transmission Substations De-energized 241 92 Days to Restore Substation Outages 5 1 As shown above, the impacts on FPL's transmission facilities associated with Hurricane lrma were significantly reduced from those experienced with Hurricane Wilma, even though Hurricane lrma's winds were stronger and its path impacted substantially more of FPL's facilities. 2. Actual/Estimated Start and Completion Dates FPL implemented its transmission hardening program in 2007. As of year-end 2019, 96% of FPL's transmission structures, system-wide, were steel or concrete, with less than 2,900 (or 4o/o) wood structures remaining to be replaced. FPL expects to replace the 2,900 wood transmission structures remaining on its system by year-end 2022. 3. Cost Estimates Estimated/actual annual transmission hardening costs are a function of the number of poles to be replaced, actual historical replacement costs, and updated cost assumptions (e.9., labor and materials). The vast majority of the transmission hardening program costs are capital costs resulting from replacement of the wood transmission structures. 28 Docket No. 20200071-El FPL's 2020-2O29 Storm Proteclion Plan Exhibit MJ-1, Page 33 of 48 The table below provides a comparison of the 2017-2019 total actual transmission hardening costs with the 2020-2022 (first three years of the SPP) total estimated transmission hardening costs:24 Total Annual Average P ram costs millions ram costs millions Further details regarding the SPP estimated transmission hardening costs, including estimated annual capitalexpenditures and operating expenses, are provided in Appendix c.25 4. Comparison of Costs and Benefits As provided in Section lV(E)(3) above, during 2020-2022, total costs for FPL's Wood Structure Hardening (Replacing) - Transmission Program average approximately $39 million per year. Benefits associated with the Wood Structure Hardening (Replacing) - Transmission Program discussed in Sections ll and |V(EX1)(b) above, include improved storm resiliency. 5. Criteria used to Select and Prioritize the Proqram The annual prioritization/selection criteria for the remaining wood structures to be replaced includes proximity to high wind areas, system importance, customer counts, and coordination with other storm initiatives (e.9., distribution feeder hardening). Other economic efficiencies, such as opportunities to perform work on multiple transmission line sections within the same transmission corridor, are also considered. At this time, FPL has not identified any areas where the replacement of the remaining wood transmission structures under the Wood Structure Hardening (Replacing) - Transmission Program would not be feasible, reasonable or practical. 24 FPL expects that 100% of the remaining wood transmission structures in its system will be replaced by year-end 2022. 25 See footnote 14. 2017-2019 $1 62 $s+ 2020-2022 $1 18 $3e 29 Docket No. 202OO071-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1, Page 34 of 48 F. Substation Storm Surge/Flood Mitigation Program 1. Description of the Proqram and Benefits The Substation Storm Surge/Flood Mitigation Program is the only new program included in FPL's SPP. As explained below, Substation Storm Surge/Flood Mitigation Program is a new program to mitigate damage at several targeted distribution and transmission substations that are susceptible to storm surge and flooding during extreme weather events. Historically, several FPL distribution and transmission substations have been impacted by storm surge and/or flooding as a result of extreme weather conditions. For example, as a result of flooding caused by Hurricanes Matthew and lrma, FPL's St. Augustine substation was required to be proactively de-energized (i.e., shut down before water reached levels that would cause significant damage to powered substation equipment). Another example is FPL's South Daytona substation that was proactively de-energized during Hurricane lrma as a result of flooding. While proactively de-energizing those substations impacted by storm surge and/or flooding helps reduce damage to substation equipment, FPL is still required to implement both temporary flood mitigation efforts and repairs to substation facilities and equipment that become flooded as a result of extreme weather conditions. An outage associated with distribution substations can impact up to several thousands of customers, and an outage associated with a transmission substation can result in an outage affecting tens of thousands of customers. Flooding and the need to proactively de-energize substations located in areas susceptible to storm surge and flooding can result in significant customer outages. For example, the flooding and de-energization of St. Augustine and South Daytona during Hurricane lrma resulted in more than 8,000 customer outages. Therefore, the prevention of outages at transmission and distribution substations due to storm surge or flooding is essential. To prevent/mitigate future substation equipment damage and customer outages due to storm surge and flooding, FPL's new Substation Storm Surge/Flood Mitigation Program will target and harden certain substations located in areas throughout FPL's service 30 Docket No. 2O20O071-E\ FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1, Page 35 of48 territory that are susceptible to storm surge or flooding during extreme weather events. Specifically, FPL plans to raise the equipment at certain substations above the flood level and construct flood protection walls around other substations to prevent/mitigate future damage due to storm surge and flooding. 2. ActualiEstimated Start and Completion Dates At this time, FPL has identified between 8-10 substations where it initially plans to implement storm surge/flood mitigation measures over the next three years (2020-2022). FPL plans to initiate construction in late summer/early fall 2020 to raise the equipment at the St. Augustine substation, which is expected to be completed in2021. ln2021 and early 2022, FPL also plans to begin construction on flood protection walls for the other 7- 9 substations identified for mitigation, which is expected to be completed by 2022. 3. Cost Estimates The storm surge/flood mitigation costs associated with St. Augustine substation (raising substation equipment) are estimated to be approximately$10 million in total (2020and 2021). Estimated storm surge/flood mitigation costs for the remaining 7-9 substations identified at this time (constructing surrounding flood walls) are estimated to be approximately $13 million in total (2021 and2022). See the table below the estimated annual program costs: Annual Average millions P ram Costs millions Further details regarding the SPP estimated storm surge/flood mitigation costs, including estimated annual capitalexpenditures and operating expenses, are provided in Appendix c.26 4. Comparison of Costs and Benefits As provided in Section |V(FX3) above, during 2020-2022, total costs for FPL's Substation Storm Surge/Flood Mitigation Program average approximately $8 million per year. P Total Gosts 2020-2022 $23 $8 26 See footnote 14. 31 Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1, Page 36 of 4B Benefits associated with this program discussed in Section |V(FX1) above, include improved storm resiliency (avoiding storm surge/flood damage), reduced customer outages and storm restoration costs. 5. Criteria used to Select and Prioritize Projects The annual prioritization/selection criteria for the targeted substations is based on FPL's historical storm surge/flood experience, in particular, Hurricanes Matthew and lrma. At this time, for the targeted substations, FPL has not identified any areas where the upgrades would not be feasible, reasonable or practical. c. Vegetation Management - Distribution Program 1 . Description of the P ram and Benefits The Vegetation Management - Distribution Program included in the SPP is a continuation of FPL's existing Commission-approved Vegetation Management - Distribution Program. Below is an overview of FPL's existing Vegetation Management - Distribution Program and the associated benefits. a Overview of the Veqetation Manaoement - Distribution Proqram Prior to 2006, FPL's Vegetation Management - Distribution Program consisted of inspecting and maintaining its feeders on a three-year average trim cycle and performing targeted trimming on certain feeders more frequently (e.9., targeting vegetation with faster growth rates and palm trees) through its "mid-cycle" program. Lateral trimming was prioritized based on reliability performance. Another important component of this program was FPL's "Right Tree Right Place" initiative, which provided information to educate customers on FPL's vegetation management program and practices, safety issues, and the importance of placing trees in the proper location. After the 2004-2005 storm seasons, the Commission determined that the "vegetation management practices of the investor-owned electric utilities do not provide adequate assurance that tree clearances for overhead distribution facilities are being maintained in a manner that is likely to reduce vegetation related storm damage. We believe that 32 Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 37 of 48 utilities should develop more stringent distribution vegetation management programs."27 As result, FPL proposed and the Commission approved the continuation of FPL's system- wide three-year average trim cycle for feeders, mid-cycle targeted trimming for certain feeders, and its Right Tree Right Place initiative, as well as the implementation of a new six-year average trim cycle for laterals.2s These same initiatives, which have provided storm and day-to-day reliability benefits, remain in place today. Tree limbs and branches, especially palm fronds, are among the most common causes of power outages and momentary interruptions during both dayto-day operations and storm events. The primary objective of FPL's Vegetation Management - Distribution Program is to clear vegetation in areas where FPL is permitted to trim from the vicinity of distribution facilities and equipment in order to provide safe, reliable, and cost-effective electric service to its customers. The program is comprised of multiple initiatives designed to reduce the average time customers are without electricity as a result of vegetation-related interruptions. These include preventive maintenance initiatives (planned cycle and mid-cycle maintenance), corrective maintenance (trouble work and service restoration efforts), customer trim requests, and support of system improvement and expansion projects, which focus on long{erm reliability by addressing vegetation that will impact new or upgraded overhead distribution facilities. FPL's Vegetation Management Distribution Program's practices follow the NESC, the American National Standards lnstitute ("ANSl') A-300, and all other applicable standards, while considering tree species, growth rates, and the location of trees in proximity to FPL's facilities. Danger or hazard trees (leaning, structurally damaged, or diseased/dead that have a high likelihood to fail and impact FPL's facilities) located outside of right-of-way ("ROW'), which cannot be trimmed without approval from the property owner, are identified as candidates for customer-approved removal. Finally, a very impoftant component of FPL's vegetation program is providing information to customers to educate them on the company's trimming program and practices, safety issues, and the importance of placing trees in the proper location - FPL's "Right Tree, 27 See Order No. PSC-06-0351-PAA-El 28 See Order No. PSC-07-0468-FOF-El 33 Docket No. 20200071-El F PL's 2020-2029 Storm Protection Plan Exhibit MJ- 1 , Page 3B of 4B Right Place" initiative. Right Tree, Right Place is a public education program based on FPL's core belief that providing reliable electric service and sustaining the natural environment can go hand-in-hand and is a win-win partnership between the utility and its customers. The SPP will continue FPL's currently-approved distribution vegetation program, which includes the following system-wide vegetation management activities: three-year cycle for feeders; mid-cycle targeted trimming for certain feeders; six-year cycle for laterals; and continued education of customers through its Right Tree, Right Place initiative. b. Benefits of the Veqetation Manaqement - Distribution Proqram ln Order No. PSC-07-0468-FOF-El, the Commission confirmed that FPL should continue to implement three-year and six-year average cycles for its feeders and laterals because the cycles complied with the Commission's storm preparedness objectives to increase the level of trimming over historical levels, promote system reliability and reduce storm restoration costs.2e Additionally, Commission's orders indicated that FPL's proposed cycles: were cost-effective; would improve day-to-day "tree SAlFl" from 0.221o 0.16 in ten years;30 and would provide savings when comparing savings on a customers interrupted ('Cl") per storm basis. Further, day-to-day distribution tree SAIFI has significantly improved as a result of FPL implementing its approved distribution vegetation management program (from 0.20 prior to the 2004-2005 storm seasons to 0.08 at year- end 2019). Finally, another indication that the current program is providing benefits is that, while forensic analysis indicated vegetation was the overwhelming primary cause for pole and wire failures and a significant cause of outages during Hurricanes Matthew and lrma, the vast majority of damage resulted from uprooted trees, broken trunks, and broken limbs 2e FPL's proposed three-year and six-year cycles were initially approved in Order No. PSC-06- O7B1-PAA-EI. 30 The tree-related SAIFI has averaged less than 0.09 over the last few years. 34 Docket No. 2020O071-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1, Page 39 of 48 thatfell into distribution facilities from outside of right-of-way, /.e., beyond where FPL is currently allowed trim without approvalfrom the property owner. 2. Actual/Estimated Start and Completion Dates FPL's ongoing vegetation management plan was originally approved in 2007, and remains in place today. Under the SPP, FPL plans to inspect and maintain, on average, approximately 15,200 miles annually, including approximately 1 1,400 miles for feeders (cycle and mid-cycle) and 3,800 miles for laterals. This is comparable to the approximately 15,200 miles inspected and maintained annually, on average, for 2017- 2019. 3. Cost Estimates The vast majority of vegetation management costs are associated with cycle and mid- cycle trimming, which is performed by several FPl-approved contractors throughout FPL's system. Other vegetation management costs include costs associated with day- to-day restoration activities (e.9., summer afternoon thunderstorms), removals, debris cleanup, and support (e.9., arborists, supervision, back office support). Costs associated with vegetation management are generally operating expenses. The table below provides a comparison of the 2017-2019 total actual distribution vegetation management costs with the 2020-2022 (first three years of the SPP) total estimated distribution vegetation management costs and the 2020-2029 total estimated distribution vegetation management costs:31 Total Annual Average ram Costs millions P m Costs millions Further details regarding the SPP estimated distribution vegetation management costs, 31 The vegetation management costs shown in the table below exclude storm-related vegetation management costs. 2017-2019 $1 89 $63 2020-2022 $1 83 $61 2020-2029 $596 $60 35 Docket No. 2020O071-El FPL's 2O2O-2029 Storm Protection Plan Exhibit MJ-l , Page 40 of 4B including estimated annualcapitalexpenditures and operating expenses, are provided in Appendix C.32 4. Comparison of Costs and Benefits As provided in Section |V(GX3) above, during 2020-2029, totalcosts for FPL's Vegetation Management - Distribution Program average approximately $60 million per year. Benefits associated with the Vegetation Management - Distribution Program discussed in Sections ll and |V(GX1Xb) above, include increased storm resiliency. 5. Criteria Used to Select a nd Prioritize the Prooram The primary reason for maintaining feeders on a three-year average cycle, as opposed to a six-year average cycle for laterals, is that a feeder outage can affect, on average, approximately 1,500 customers as compared to an outage on a lateral line that can affect, on average, approximately 35 customers. FPL enhances its approved feeder inspection and trimming plan through its mid-cycle trimming program, which encompasses patrolling and trimming feeders between planned maintenance cycles to address tree conditions that may cause an interruption prior to the next planned cycle trim. Mid-cycle work units typically have a trim age of 12to 18 months and usually involve certain fast-growing trees (e.9., palm trees) that need to be addressed before the next scheduled cycle trim date. Additionally, customers often contact FPL with requests to trim trees around distribution lines in their neighborhoods and near their homes. As a result of these discussions with customers and/or a follow-up investigation, FPL either performs the necessary trimming or determines that the requested trimming can be addressed more efficiently by completing it through the normal scheduled cycle trimming. Cycle trimming is prioritized annually to ensure compliance with cycle schedules. At this time, FPL has not identified any areas where the Vegetation Management - Distribution Program would not be feasible, reasonable or practical. 32 Seefootnote 14 36 Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 41 of 48 H. Vegetation Management - Transmission Program 1. Description of the Proqram and Benefits The Vegetation Management - Transmission Program included in the SPP is a continuation of FPL's existing transmission vegetation management program. Below is an overview of FPL's existing transmission vegetation management program and the associated benefits. a. Overview of the Veqetation Manaqement - Transmission Proqram The Nofth American Electric Reliability Corporation's (NERC) vegetation management standards/requirements serve as the basis for FPL's transmission vegetation management program. The reliability objective of these standards/requirements is to prevent vegetation-related outages that could lead to cascading by utilizing effective vegetation maintenance while recognizing that certain outages such as those due to vandalism, human errors, and acts of nature are not preventable. Transmission lines that must conform with these standards/requirements include lines operated at or above 200 kV or any line that is either an element of the lnterconnection Reliability Operating Limit (IROL) or the Western Electricity Coordinating Council WECC). For FPL, just over 4,300 miles of its transmission system (or nearly two-thirds of all of FPL's total transmission system) are subject to NERC's vegetation management standards/requirements. NERC's vegetation management standards/requirements include annual inspection requirements, executing 100% of a utility's annual vegetation work plan, and to prevent any encroachment into established minimum vegetation clearance distances ('MVCD'). The key elements of FPL's transmission vegetation management program are to inspect the transmission right-of-ways, document vegetation inspection results and findings, prescribe a work plan, and execute the work plan. FPL conducts ground inspections of all transmission corridors annually for work planning purposes. During these inspections, FPL identifies vegetation capable of approaching the defined Vegetation Action Threshold ("VAT"). VAT is a calculated distance from the 37 Docket No. 2020O071-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1, Page 42 of 48 transmission line that factors in MVCD, conductor sag/sway potential, and a buffer. The identified vegetation is given a work prescription and then prioritized and organized into batches of work, which collectively become the annual work plan. For transmission lines that are subject to NERC's vegetation management standards/requirements, FPL also uses a technology called "LiDAR,' short for light detection and ranging. L|DAR is a remote sensing technology that uses light in the form of a pulsed laser to measure ranges (distances) to a target. For vegetation management purposes, L|DAR is used to measure distance between vegetation and transmission lines. L|DAR patrols are conducted annually for all NERC transmission corridors. Data collected by the L|DAR patrols is then used to develop annual preventative and reactive work plans. ln its SPP, FPL will continue its current transmission vegetation management plan, which includes visual and aerial inspections of all transmission line corridors, LiDAR inspections of NERC transmission line corridors, developing and executing annual work plans to address identified vegetation conditions, and identifying and addressing priority and hazard tree conditions prior to and during storm season. b. Benefits of the Veqetation Manaqement - Transmission Proeram The benefits of a Vegetation Management - Transmission Program are self-evident and the consequences of not having a reasonable transmission vegetation management plan can be extreme. As discussed previously, the transmission system is the backbone of the electric grid. While outages associated with distribution facilities (e.9., a transformer, lateral, or feeder) can result in an outage aff6cting anywhere from a few customers up to several thousands of customers, a transmission related outage can affect tens of thousands of customers. Additionally, an outage on a transmission facility could cause cascading and result in the loss of service for hundreds of thousands of customers. As such, it is imperative that vegetation impacting transmission facilities be properly maintained using reasonable and appropriate cycles and standards to help ensure they are prepared for storms. For these reasons, it is no surprise that NERC has developed 38 Docket No. 20200071-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1, Page 43 of 48 prescriptive vegetation management requirements for transmission facilities to help prevent such damage from occurring. FPL also notes that while vegetation-related damage and transmission line outages occurred during Hurricanes Matthew and lrma, the vast majority of such damages/outages were caused by vegetation located outside of the right-of-way, i.e., beyond where FPL is currently allowed to trim without approval from the property owner, which further demonstrates that FPL's historical efforts in this area have been beneficial. 2. Actual/Estimated Start and Completion Dates FPL's Vegetation Management - Transmission Program is an ongoing program, initiated decades ago. Under the SPP, FPL plans to inspect and maintain, on average, approximately 7,000 miles annually, including approximately 4,300 miles for NERC transmission line corridors and 2,700 miles for non-NERC transmission line corridors. This is comparable to the approximately 7,000 miles inspected and maintained annually, on average , for 2017-2019. 3. Cost Estimates The vast majority of vegetation management costs are associated with annual inspections and the execution of planned work to address identified conditions, which is performed by several FPL approved contractors throughout FPL's system. Other vegetation management costs include costs associated with dayto-day restoration activities (e.9., summer afternoon thunderstorms), removals, debris cleanup, and support (e.g., arborists, supervision, back office support). Costs associated with vegetation management are generally operating expenses. The table below provides a comparison of the 2017-2019 total actual transmission vegetation management costs with the 2020-2022 (first three years of the SPP) total estimated transmission vegetation management costs and the 2020-2029 totalestimated transmission vegetation management costs:33 33 The vegetation management costs shown in the table below exclude storm-related vegetation management costs. 39 2017-2019 $zz $g $s2020-2022 $27 $102024-2029 $e6 Docket No. 2O200O7|-El FPL's 202O-2O29 Storm Protection Plan Exhibit MJ-1, Page 44 of 48 Annual Average illions P ram Gosts millions Further details regarding the SPP estimated transmission vegetation management costs, including estimated annualcapitalexpenditures and operating expenses, are provided in Appendix C.3a 4. Comparison of Costs and Benefits As provided in Section lV(H)(3) above, during 2020-2029, totalcosts for FPL's Vegetation Management - Transmission Program average approximately $10 million per year. Benefits associated with the Vegetation Management - Transmission Program discussed in Sections Il and |V(HX1)(b) above, include increased storm resiliency. The execution of FPL's Vegetation Management - Transmission Program is a significant factor in mitigating damage to transmission facilities and avoiding transmission-related outages. 5. Criteria used to Select an d Prioritize the Proorams Priority vegetation conditions and hazard tree conditions are completed annually prior to storm season. Additionally, prior to and during the storm season, FPL conducts aerial inspections of transmission corridors to identify hazard trees and any priority vegetation locations. Priority vegetation conditions and hazard tree conditions identified through aerial inspections are addressed as soon as possible. At this time, FPL has not identified any areas where the Vegetation Management - Transmission Program would not be feasible, reasonable or practical. Total ram Costs 3a See footnote 14 40 Docket No. 2O20O071-E\ FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 45 of 48 V. Detailed lnformation on the First Three Years of the SPP 2020-2022 A. Detailed Description for the First Year of the SPP (20201 The following additional information required by Rule 25-6.030(3XeX1), F.A.C., for the first year of the SPP (2020) is provided in Appendix E. (1) the actual or estimated . construction start and completion dates; (2) a description of the affected existing facilities, including number and type(s) of customers served, historic service reliability performance during extreme weather conditions, and how this data was used to prioritize the storm protection projects; (3) a cost estimate including capital and operating expenses. A description of the criteria used to select and prioritize the storm protection programs is included in the description of each SPP program provided in Section lV. Detailed Description of the Second and Third Years of the sPP (2021-20221 B. Additional details required by Rule 25-6.030(3XeX2), F.A.C., for the second and third years of the SPP (2021-2022), including the estimated number and costs of projects under every program, is provided in in Appendix C. Detailed Description of the Vegetation Management Activities for the First Three Years of the SPP (2020-20221 The following additional information required by Rule 25-6.030(3X0, F.A.C., for the first three years of the vegetation management activities under the SPP (2020-2022) is provided in n Sections lV(G) and lV(H) above and Appendix C: the projected frequency (trim cycle); the projected miles of affected transmission and distribution overhead facilities; the estimated annual labor and equipment costs for both utility and contractor personnel. A description of how the vegetation management activities will reduce outage times and restoration costs due to extreme weather conditions is provided in Sections lV(G) and lV(H) above. c 41 Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1, Page 46 of 4B Vl. Estimate of Annual Jurisdictional Revenue R eo ui rements for the 2020-2029 SPP Pursuant to Rule 25-6.030(3X0, F.A.C., the table below provides the estimated annual jurisdictional revenue requirements for each year of the SPP. Estimated Annual Revenue Requirements illions While FPL has provided estimated costs by program as of the time of this filing and associated total revenue requirements in its SPP, consistent with the requirements of Rule 25-6.030, F.A.C., subsequent projected and actual program costs submitted for cost recovery through the Storm Protection Plan Cost Recovery Clause (per Rule 25-6.031, F.A.C.,) could vary by as much as 10-15%, which would then also impact associated estimated revenue requirements and rate impacts. The projected costs, actual/ estimated costs, actuals costs, and true-up of actual costs to be included in FPL's Storm Protection 2020 $257.6 2021 $369.1 2022 $494.3 2023 $625.5 2024 $760.9 2025 $878.1 2026 $96s.7 2027 $1,037.1 2028 $1 ,1 10.9 2029 $1 ,185.2 42 Docket No. 2O20O071-E\ FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1, Page 47 of 48 Plan Cost Recovery Clause will all be addressed in subsequent filings in separate storm protection plan cost recovery clause dockets pursuant to Rule 25-6.031, F.A.C.35 vil.Esti mated Rate lm oa cts for First Three Years of the SPP {p020-20221 FPL anticipates the programs included in the SPP will have zero bill impacts on customer bills during the first year of the SPP and only minimal bill increases for years two and three of the SPP. An estimate of hypothetical overall rate impacts for the first three years of the SPP (2020-2022), without regard for the fact that FPL remains under a general base rate freeze pursuant to a Commission-approved settlement agreement through December 31 ,2021, as stated in footnote 36 below are based on the total program costs reflected in this filing.36 The projected costs, actual/estimated costs, actuals costs, and true-up of actual costs to be included in FPL's Storm Protection Plan Cost Recovery Clause will all be addressed in subsequent filings in Storm Protection Plan Cost Recovery Clause dockets pursuant to Rule 25-6.031, F.A.C.37 Pursuant to Rule 25-6.031, F.A.C., FPL has not identified any reasonable implementation alternatives that could mitigate the resulting rate impact for each of the first three years of the SPP. As explained above, FPL's SPP is largely a continuation of existing Commission-approved storm hardening programs and initiatives, which have already demonstrated that they have and will continue to provide increased T&D infrastructure resiliency, reduced restoration time, and reduced restoration costs when FPL's system is impacted by severe weather events. Further, as explained above, the estimated costs 35 The Commission has opened Docket No. 20200092-El to address Storm Protection PIan Cost Recovery Clause petitions to be filed the third quarter of 2020. 36 Pursuant to Rule 25-6.030(3)(h), F.A.C., the hypothetical rate impacts for FPL's typical residential, commercial, and industrial customers for the first three years of the SPP (2020-2022) without regard for the fact that FPL remains under a general base rate freeze pursuant to a Commission-approved settlement agreement through December 31,2021, are as follows for 2020, 2021, and 2022, respectively: Residential (RS-1) $0.00251ikwh, $0.00357/kwh, and $0.00478/kWh; Commercial (GSD-1) $0.81/kW, $1.15/kW, and $1.54/kW; and lndustrial (GSLDT-3) $0.05/kW, $0.08/kW and $0.1O/kW. These rate impacts are for all programs included in the SPP and are based on the total estimated costs as of the time of this filing, which could vary by as much as 10% to 15Vo, regardless of whetherthose costs will be recovered in FPL's Storm Protection Plan Cost Recovery Clause or through base rates. 37 See footnote 34. 43 Docket No. 20200071-El FPL's 2020-2O29 Storm Protection Plan Exhibit MJ-1, Page 48 of 48 for the programs included in FPL's SPP are consistent with the historical costs incurred for the existing storm hardening and storm preparedness programs, which were most recently approved in FPL's 2019-2021Storm Hardening Plan. Vlll. Conclusion The Florida Legislature has determined that it is in the State's interest to "strengthen electric utility infrastructure to withstand extreme weather conditions by promoting the overhead hardening of distribution and transmission facilities, undergrounding of certain distribution lines, and vegetation management," and for each electric utility to "mitigate restoration costs and outage times to utility customers when developing transmission and distribution storm protection plans." Section 366.96(1), F.S. Based on these findings, the Florida Legislature concluded that it is in the State's interest for each electric utility to develop and file a SPP for the overhead hardening and increased resilience of electric T&D facilities, undergrounding of electric distribution facilities, and vegetation management. See Sections 366.96(1)-(3) FPL's SPP is a systematic approach to achieve the legislative objectives of reducing restoration costs and outage times associated with extreme weather events and enhancing reliability. As explained above, FPL's SPP is largely a continuation and expansion of its existing and already successful storm hardening and storm preparedness programs previously approved by the Commission, as well as a new storm hardening program to harden certain targeted substations that are susceptible to storm surge or flooding during extreme weather events. Based on the recent experiences of Hurricanes Matthew and lrma, the existing storm hardening programs have a demonstrated and proven track record of mitigating and reducing restoration CMH, outage times, and storm restoration costs, as well as improving day-to-day reliability. FPL's SPP will continue and expand these important benefits to customers and the State. 44 Docket No. 2020OO71-E\ FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 1 of 1B) APPENDIXA (FPL's 3rd Supplemental Amended Response to Staffs lst Data Request) Docket No. 2O200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 2 of 1B) Florida Power & Light Company Docket No. 20170215-EU Staff s F irst Data Request Request No. 29 - Third Supplemental Amended Page I of9 OUESTION: Please complete the table below summarizing hardened facilities that required repair or replacement as a result of Hurricanes Matthew, Hermine, Irma, Maria, and Nate. RESPONSE: FPL does not maintain its accounting records at the level of detail required to provide the requested information as they do not differentiate hardened facilities from non-hardened facilities, nor do they track which assets were repaired. However, FPL does track certain assets, at the total system level, that were requested and replaced during each hurricane as reflected in the tables below. Note, FPL did not track storm repairs/replacements for Hurricanes Maria and Nate as Hurricane Maria did not impact FPL's service territory and Nate had limited impact. Also, Hurricanes Matthew and Irma capital details associated with follow-up work are not yet available by plant account as these costs have not yet been unitized from account 106 to account l0l by plant account. Hurricane Matthew Number of Facilities Requiring Repair Replacement Transmission Structures N/A 0 Substations N/A 0 Total N/A 0 Distribution Poles N/A 656 Substation N/A 0 Feeder OH N/A 0 Feeder UG N/A 0 Feeder Combined N/A 0 Lateral OH N/A N/A Lateral UG N/A N/A Lateral Combined N/A N/A Total N/A N/A Service Service OH N/A N/A Service UG N/A N/A Service Combined N/A N/A Total N/A N/A Docket No. 20200071-El FPL's 202O-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 3 of 18) Florida Power & Light Company Docket No. 20170215-EU Staffs tr'irst Data Request Request No. 29 - Third Supplemental Amended Page2 of9 Hurricane Hermine Number of Facilities Requiring Repair Replacement Transmission Structures N/A 0 Substations N/A 0 Total N/A 0 Distribution Poles N/A I9 Substation N/A 0 Feeder OH N/A 0 Feeder UG N/A 0 Feeder Combined N/A 0 Lateral OH N/A NiA LateralUG N/A N/A Lateral Combined N/A N/A Total N/A N/A Service Service OH N/A N/A Service UG N/A N/A Service Combined N/A N/A Total N/A NiA Docket No. 2O200071-El FPL'I 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 4 of 1B) Florida Power & Light Company Docket No. 20170215-EU Staffs First Data Request Request No. 29'Third Supplemental Amended Page 3 of9 Hurricane Irma Number of Facilities Requiring Repair Replacement Transmission Structures N/A 0 Substations N/A 0 Total N/A 0 Distribution Poles N/A 3,s62 Substation N/A 0 Feeder OH N/A 0 Feeder UG N/A 0 Feeder Combined N/A 0 Lateral OH N/A N/A Lateral UG N/A N/A Lateral Combined N/A NiA Total N/A N/A Service Service OH N/A N/A Service UG N/A N/A Service Combined N/A N/A Total N/A N/A Notes: For Hurricane Matthew, there is a difference of 248 poles between what is provided in this discovery response for total poles replaced (656 poles) and what is provided in FPL's post-storm forensic review report for Huricane Matthew (provided in FPL's response to Staff s Second Data Request No. 2 in this same docket) for poles that failed and needed to be replaced to restore seruice (408 poles). The difference is associated with poles replaced during "follow-up" - i.e., poles that were damaged (e.g., a cracked pole) as a result of the storm and needed to be replaced to restore the pole to its pre-storm condition - but did not fail during the storm and, thus, did not need to be replaced to restore service. As mentioned above in FPL's response to this data request, FPL's accounting records do not differentiate hardened facilities from non-hardened facilities and FPL did not track or maintain forensic information on the 248 distribution poles replaced as a result of follow-up work. As a result, FPL does not have a hardened vs. non- hardened breakdown for the 248 distribution poles replaced during follow-up work. Docket No. 2020O071-El FPL'9 2020-2029 Storm Protection Plan Exhibit MJ-1, APPENDIX A (Page 5 of ',l8) Florida Power & Light Company Docket No. 20170215-EU Staffs First Data Request Request No. 29 - Third Supplemental Amended Page 4 of9 The distribution pole and transmission structure counts provided above represent the amount of pole/structure replacements FPL has recorded on its books and records associated with Hurricane Irma as of December 31, 2017. These amounts should be considered preliminary at this time as they are subject to change (e.g., the counts do not reflect poles that will be replaced during follow-up work, which has yet to be completed). N/A - Information is not available at this level of detail in FPL's accounting records. For substations and feeders, FPL has stated 0 since no entire substation or feeder was replaced. However, these facilities consist of many pieces of equipment (e.g., wire, cable, breakers, transformers, cross arms and arrestors) some of which may have been replaced. 2016/2017 Hurricanes - FPL Restoration/Infrastructure Performance FPL's infrastructure/restoration performance for Hurricanes Matthew (2016) and Irma (2017) demonstrates that the implementation and execution of its FPSC-approved (1) ten storm preparedness initiatives (which includes vegetation management): (2) pole inspection programs; (3) storm hardening plans; and (4) tariffs to incent municipal overhead to underground conversions have provided great benefits to FPL's customers and to the State of Florida. During 2016 and 2017, FPL' s service territory was threatened with massive Category 4 and 5 storms. The size and scale of these storms impacted FPL's infrastructure throughout its entire service territory (which encompasses 35 counties inthe State of Florida). For both Matthew and Irma, FPL's infrastructure storm resiliency and smart grid investments resulted in improved infrastrucfure resiliency performance and reduced restoration times. 2016 /2017 Hurricanes - Restoration Performance FPL saw significant improvements in overall restoration results. As can be seen in the table below, restoration results for Hurricanes Matthew and Irma show significant improvement vs. Huricane Wilma. FPL attributes these significant improvements in restoration to the investments made to make its system smarter and more storm-resilient as well as its well-tested restoration processes. This includes FPL's distribution and transmission storm hardening and storm preparedness initiatives, pole inspection programs, smart grid initiatives, vegetation management programs and continuous efforts to improve its restoration processes. Customer Outages 3.2M 1.2M 4.4M % Restored / davs s0%/s 99%/2 s0% lt All restored / davs 18 4 10 Avs. to restore / davs 5.4 <L 2.7 Docket No. 2O2O0071-E\ FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 6 of 18) Florida Power & Light Company Docket No. 20170215-EU Staffs First Data Request Request No. 29 - Third Supplemental Amended Page 5 of9 2016/2017 Hurricanes -frastnrctrr re Performance To assess the effectiveness of FPL's infrastructure storm hardening investments, the Company utilizes information collected through post-storm forensic data collection and various systems (e.g., FPL's outage management system) to conduct post-storm infrastructure performance analysis. These efforts and analysis allow FPL to quantif,/ and assess its distribution and transmission infrastructure performance including the performance of: hardened and non- hardened facilities; overhead and underground facilities; and smart grid performance. For distribution, this includes reviewing the storm performance of poles, feeders and laterals. For transmission, this includes reviewing the storm performance of poles/structures, line sections and substations. The data demonstrates that hardened infrastructure performed better than non- hardened infrastructure, underground facilities performed better than overhead facilities and smart grid devices prevented a significant number of outages from occurring. Distribution/Transmission Poles/ Structures Performance The performance of FPL's approximately 1.2 million distribution and transmission poles/structures during Hurricanes Matthew and Irma was excellent, as hardened poles and structures performed as expected by minimizing outages and reducing restoration times. The total number of distribution/transmission poles that failed (i.e., had to be repaired/replaced in order to restore service) during Hurricanes Matthew and Irma was a mere fraction of lYo of the 1.2 million pole/structure pole population. Additionally, hardened distribution and transmission pole performance was significantly better than non-hardened pole performance, as hardened pole failures were either non-existent (e.g., Hurricane Matthew) or significantly less than non-hardened pole failures (e.g., during Huruicane Irma, hardened feeder poles had a 0.02%o failure rate, while non-hardened feeder poles had a 0.20% failure rate). Also, total poles replaced (i.e., poles that failed * poles that were replaced during follow-up worb were also a mere fraction of lo/o of the total pole population and significantly less than the number of poles replaced during Hurricane Wilma. FPL notes that for Hurricanes Matthew and Irma, while it did track hardened vs. non-hardened pole performance during restoration, it did not track poles replaced (hardened vs. non-hardened) during follow-up work, since these poles had accomplished their intended purpose of not failing during the storms. Therefore, FPL cannot provide the number of hardened poles replaced during follow up work in Hurricanes Matthew and Irma. Based on the performance of hardened poles that failed during these storms (see table below), it is highly unlikely that there would be a significant number of hardened poles, if any, that needed to be replaced during follow-up work. However, going forward, should the Commission want FPL to track replacement of hardened vs. non-hardened poles during follow-up work, FPL will begin to track this information. FPL attributes this excellent pole performance to its FPSC-approved distribution and transmission storm hardening plan initiatives (e.g., extreme wind load construction standards for distribution poles and replacing wood transmission poles/structures) and its pole inspection programs. Docket No. 202O0071-El F PL's 2020-2029 Storm Protection Plan Exhibit MJ-'1 , APPENDIX A (Page 7 of 18) Florida Power & Light Company Docket No. 20170215-EU Staffs First Data Request Request No. 29 - Third Supplemental Amended Page 6 of 9 Distribution Poles I 2/3 1/1 7 Total Number 1,188p02 TotalHardened 124,518* * This number is understated as it includes only poles hardened as a result of FPL's approved hardening plan projects, as FPL does not track or maintain the number of hardened poles installed as a result of new construction (e.g., new feeders or laterals) andlor daily work activities (e.g., maintenance, pole line extensions, relocation projects). There are also other existing poles throughout FPL's service territory that would currently meet the NESC's extreme wind loading criteria and therefore qualify as a hardened pole, however, FPL does not currently track or maintain that information. Distribution Pole Failures*Hardened Non- Hardened Total Matthew - 2016 0 408 408 lrma - 20ll 26 2834 2860 *Broken/Fallen poles that must be repaired/replaced to restore service Transmission Pole/Structures l2l3 l/l 7 Total 66,685 Concrete 60,694 (91%) Wood 5,991 (9%) Transmission Pole Failures*Hardened Non- Hardened Total Matthew - 2016 0 0 0 lrma - 20L7 0 E 5 *Broken/Fallen poles that must be repaired/replaced to restore service Distribution Feeders/Laterals Performance As demonstrated below, FPL's hardened feeders performed significantly better than non- hardened feeders and underground feeders/laterals performed significantly better than overhead feeders/laterals. Performance was compared considering feeder and lateral outages that occurred during Hurricanes Matthew and Irma. It is also important to note that during Hurricane Irma, the Construction Man Hours ("CMH") to restore hardened feeders was 50% less than non-hardened feeders, primarily due to hardened feeders experiencing less damage than non-hardened feeders. It is important to note that the majority of outages for overhead facilities resulted from trees that broke andlor fell into FPL's facilities. Many of these trees were outside of easements or public rights of way where FPL is generally allowed to trim. As a result, no additional amount of Docket No. 202O0071-El FPL's 202O-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page B of '18) Florida Power & Light Company Docket No.20170215-EU Staffs First Data Request Request No. 29 - Third Supplemental Amended Page 7 of 9 traditional tree trimming would help mitigate this issue. Tree damage was particularly impactful on FPL laterals. The two tables below provide feeder and lateral outage performance statistics for Hurricanes Matthew and Irma. Pop: poOutu,'on; Lateral population includes latelals with multi-stage fusing Pop: Population; Latelal population includes laterals with multi-stage fusing FPL notes that, overall, for Hurricane Irma, many more laterals experienced outages compared to feeders, thus laterals required significantly more time to restore (871,000 CMH) compared to feeders (170,000 CMH). FPL continues to promote its Right Tree Right Place initiative and recommends there be changes to state laws and/or local ordinances to restrict the type and location of trees and provide utilities additional trimming rights to address existing tree conditions.l Additionally, FPL notes that day-to-day, hardened feeders perform approximately 40Yo better than non-hardened feeders. Transmission Line Sections/Substations Performance The transmission system's performance was excellent during Hurricanes Matthew and Irma. Equipment and conductor damage was minimal as a result of our investments in transmission hardening and the installation of flood monitoring equipment in those substations located in flood prone areas. Substations that experienced outages were restored in one day. During Hurricanes Matthew and Irma, flood monitoring equipment operated as expected, providing notification which allowed FPL to proactively de-energize three substations (one in Matthew and two in Irma) and prevent potential serious damage from occurring at these substations. I Where municipalities are not actively engaged in ensuring appropriate limitations on planting trees in public rights of way, restoration efforts are irnpeded and made more costly. In fact,_one particular municipality is actively planting "wrong trees in the wrong place," in spite of FPL's direct communications and efforts to encourage its Right Tree Right Place initiative. Matthew Overhead non-Hardened Overhead Hardened Underground Total Out Pop % Out Out Pop o/o Out Out Pop % Out Out Pop %Oul Distribution Feeders 280 2,031 1,4%6B 72r 9%7L 493 2o/o 359 3,245 13% Distribution Laterals 3,413 82,729 N.A.N.A N.A.238 101,892 0.2%3,7LL r84,621 2% rRMA- 2017 Overhead Non-Hardened Overhead Hardened Undereround Total Out Pop Yo Out Out Pop o/o Out Out Pop % Out Out Pop o/o Out Distribution Feeders 1,609 1,958 82%592 8s9 69%B5 470 L8%2,286 3,281 70% Distribution Laterals 20,341 84,574 24%N.A.N.A.N.A.3,767 103,384 4%24,r08 187,958 13% Docket No. 2020007l-El FPL'S 2O2O-2O29 Storm Protection Plan Exhibit MJ- l , APPENDIX A (Page I of 18) Florida Power & Light Company Docket No. 20170215-EU Staffs First Data Request Request No. 29 - Third Supplemental Amended Page 8 of9 The tables below provide substation line section outage perfonnance for Hurricanes Matthew and lrma. * 2 sections were out because substation was proactively de-energized due to flooding ** 4 sections were out because substations were proactively de-energized due to flooding *** No underground section was damaged or failed causing an outage; however, the sections were out due to line termination equipment in substations. The table below compares substation outage and restoration performance - Irma vs, Wilma. Smart Grid Performance During Hurricane Matthew and lrma, smart grid devices prevented a significant amount of customer outages, assisted with restoration efforts and reduced restoration time and costs. Specifically, automated feeder switches avoided approximately 664,000 outages during Hurricanes Matthew and Irma. Additionally, FPL's restoration crews are able to "ping" smart meters before leaving an area to ensure that power is, in fact, restored. This prevents restoration crews from leavingan area, thinking all power was restored, only to be called back when the customer informs FPL that they are still without service. FPL is also enhancing an application, first utilized during Hurricanes Matthew and Irma, whereby it will be able to "bulk meter ping" smart meters to confirm whether customers have service. Trans. Line Sections t6 350 5%23*846 3%0 49 0%39 1,,245 3o/o Trans. Line Sections 60 306 20%742**884 16%13***51 25o/o 215 1241 17% De-enereized 247 92 7Restored {Davs}5 Matthew - 2016 118,000 lrma - 2Ot7 546,000 Docket No. 20200071-El FPL'9 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 10 of 1 B) Florida Power & Light Company Docket No. 20170215-EU Staffs First Data Request Request No. 29 - Third Supplemental Amended Page 9 of9 Estimate of Storm Restoration Cost Savinss Due to Tfardenino based nn Sform T)amaqe Model Simulation The attached analysis provides an estimate of transmission and distribution storm restoration savings for Hurricanes Matthew and Irma that resulted from storm hardening completed by FPL prior to the storms' impacts. To calculate these savings, FPL utilized its Storm Damage Model (the same model FPL utilizes to estimate damage when a storm approaches FPL's service tenitory) to simulate damage that likely would have occurued without hardening and determine the associated required construction man hours (CMH) that would have been required to restore service in the absence of hardening, days to restore in the absence of hardening and associated incremental restoration costs. Additionally, FPL calculated the 4}-year net present value of these savings for two scenarios - (l) a similar storm occurs every 3 years; and (2) a similar storm occurs every 5 years. As indicated on the attached analysis, the 40-year net present values of the savings related to storm hardening are significant. In the absence of hardening the estimated percentage increase in CMHs for Hurricane Matthew and Huricane Irma restoration would have been significantly higher (36% and 40olo, respectively), days to restore would have been increased (50o/o and 40o/o, respectively) and restoration costs would have been greater (36% and 40o/o, respectively). Florida Power & Light Company Docket No. 2Of7O2I'-EU Staffs First Data Request Request No. 29 - Third Supplemental Amended Attachment No. 1 Tablof5 Docket No. 20200071-El FPL's 2O20-2029 Storm Protection Plan Exhibit MJ-1, APPENDIX A (Page 11 of 18) Estimate of Storm Restoration Cost Savinqs Due to Hardening based on Storm Damage Model Simulation I1l I2l t3I Construction Man-Hours t4I I5I t6l I7t to Restore [81 o/o lncrease without Hardening 50% 40% Additional Days to Restore without Hardening 2 4 Modeled System Without Hardening 6 74 Actual 4 L0 tel [10] [111 Storm Restoration Costs lt2l [ 131 40 Yr NPV l14l Storm Matthew lrma Notes: All costs and CMH are Transmission and Distribution only, and exclusive of follow-up work [ 1 I Calculated based on actual storm restoration requirements [2] FPLstormdamagemodel simulationresultsof CMHincurredwithouthardening [ 3 I Additional CMH without hardening {Col. 2 - Col. 1) [ 4] Percent increase in CMH without hardening (Col. 3/Col. 1) [ 5 ] Actual days to restore seruice [ 6 ] Storm da mage model simu lation result of the days to restore service without hardening (assu mes same restoration resources as actual) [ 7 ] Additional days to restore without hardening (Col. 6 - Col. 5) I I ] Percent increase in days to restore without hardening (Col. 7/Col. 5) [ 9 I Actual cost of restoration. lrma costs are preliminarv [ 10 ] Storm damage model simulation result of restoration costs without hardening [ 11 I Additional restoration costs without hardening (Col. 10 - Col.9) [ 12 I Percent increase in restoration costs without h ardening ((Col. fi/Col. 9\ [ 13 I 40 year net present value savings assuming a similar storm everylEgg years (calculation details attached) [ 14 I 40 year net present value savings assuming a similar storm everyfive years (calculation details attached) % lncrease without Hardening 356/I 40% Additional CMH without Hardening 93.000 483,000 Modeled System Without Hardening 350.000 r.,678.000 Actual 257.OO0 1.1q5.000 94 lncrease without Hardening 36% 4A% s10s Additional Storm Restoration Costs without Hardenins S496 s39s s1.722 Modeled System Without Hardening s7.226 Actual S29o 40 Yr NPV Savings Every 5 Years (2017s) s405 s1.91s 40 Yr NPV Savings Every 3 Years (2017s) s6s3 s3,082 Docket No. 202O0071-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 12 ot 18) Florida Power & Light Company Docket No. 20170215-EU Staff's First Data Request Request No. 29 - Third Supplemental Amended Attachment No. 1 Tab2of5 Estimated Storm Restoration Costs Savings due to Hardening (SMM) 40-Year NPV (20175) Matthew Savings Everv 3 vears Every 5 vears S6s3 s406 Discount Rate = 7.760/o s1 Ls L 2 3 4 5 6 1 8 9 10 11 t2 13 t4 15 16 17 L8 19 20 2I 22 23 24 25 26 27 Slos So So S1i-3 $o $o S121 s13s So So Slso so So $o So S13o So So s18s So so 61. $o $o 73 So So cPt 21% 2.4% 2.4% 2.6% 2.t% t.7% 25% 2.4% 2.3% 2.2% 2.2% 2.2% 2.2% 2.2% 2.2% 2.1% 2.L% 2.1% 2.1% 2.L% 21% 2.to/o 2.L% 2.1% 2.L% 2.1% 2.1% Si.os 5o So So So $118 so 5o So So $133 $16s So So So So Si.so So cPt Multiplier 1.000 1.024 1.049 1.076 1.105 1124 1.152 1.179 1.206 1.233 1.260 1.288 1.317 1.346 1.375 1.404 1.434 1.464 1.495 1.526 1.558 1.590 1.623 1.656 1.691 1.727 1.763 Matthew $1os Si-07 S1i.o Si_i.3 s11s $1ls $t2L 5124 Srzl S13o s133 S136 s13e Si-43 Si_46 s1s0 sls3 S1s7 S16i- S16s $16e $173 St77 S1s1 S18s Si-so Si-94 SO SO So So s1s0 so so So So Year Matthew Savings Everv 3 vears Everv 5 vears Docket No. 20200071-El FPL'9 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 13 of 1 B) 28 29 30 31 32 33 34 35 36 37 38 39 40 $1es So $o 52L4 So So s23o so So s246 $o So 5o s2L4 $o So So So S24L So So so So 2.7% 2.2% 2.2o/o 2.1o/o 2.2o/o 2.Lo/o 2.7% 2.L% 2.1% 2.L% 2.Lo/o 2.!o/o 2.7% 1.801 1.840 1.880 1.920 1.962 2.004 2.047 2.090 2.135 2.180 2.226 2.274 2.322 Slee S2o4 S2oe $zt4 Szt g s224 s230 s23s $241 5246 $2s2 $2s8 s26s so so Szos NPV (2017s)s6s3 S+oe Docket No. 20200071-El FPL'9 2O2O-2O29 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 14 of 1B) Florida Power & Light Company Docket No. 20170215-EU Staff's First Data Request Request No. 29 - Third Supplemental Amended Attachment No. 1 Tab3of5 So So 5s32 Estimated Storm Restoration Costs Savings due to Hardening (SMM) 40-Year NPV (2017S) lrma Savings Everv 3 vears Everv 5 vears s3,082 S1,915 Discount Rate =7.760/o 1 2 3 4 5 6 7 8 9 10 11 12 13 t4 15 1.6 17 18 19 20 21. 22 23 24 25 26 27 96S+ s613 $o So s6ss $o So s707 5o $o STss So so S8]-s so So Ss76 So So So $o $o $o s7e6 so $o So So SseT $o 2.L% 2.4% 2.4o/o 2.6% 2.7% 1..7% 2.s% 2.4% 23% 2.2% 2.2% 2.2% 2.2% 2.2% 2.2o/o 2.1%o 2.1% 2.L% 2.I%o 2.1% 2.I% 2.1% 2.r% 2.L% 2.1% 2.1% 2.1% S4s6 So So so SO sss8 $o So So so s628 so So $o So 5707 cPl lrma S4e6 SsoT Ss20 Ss32 Ss+s sss8 Sszr Ss8s $sse $613 $628 $543 S6ss $at+ s6e1 5707 $t24. $742 STse Stig s7s6 S81s s83s S8ss $876 SseT ss18 cPl Multiplier 1.000 1.024 1.049 1.076 1 .105 1j24 1.152 1.179 1.206 1.233 1.260 1.288 1.317 1.346 1.375 1.404 1.434 1.464 1.495 1.526 1.558 1.590 1.623 1.656 1.69'1 1.727 1.763 So So $szr $o $o Matthew Savings EveIy 3 vears Everv 5 vearsYear Docket No. 20200071-El FPL's 202O-2O29 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 15 of 18) So 28 29 30 31 32 33 34 35 35 37 38 39 40 ss40 So so S1,oo9 So $o S1,084 So $o s1,164 5o So s 2s0 $o So So s1,009 so $o $o s1,136 So so $o So 21% 2.2% 2.2% 2.L% 2.2% 2.7% 2.L% 2.L% 2.t% 2.L% 2.r% 2.L% 2,L% 1.801 1.840 1.880 1.920 1.962 2.004 2.047 2.090 2.135 2.180 2.226 2.274 2.322 Ss40 $e63 se86 Sr_,ooe Sr,og+ $1,058 S1,084 S1,110 $t,tge $1,164 $t,tgz 5t,zzo $1,2s0 NPV (2017s)$1,915s3,082 Docket No. 20200071-El FPL'9 2020-2029 Storm Protection Plan Exhibit MJ-l , APPENDIX A (Page 16 of 18) Florida Power & Light Company Docket No. 20170215-EU Staff's First Data Request Request No. 29 - Third Supplemental Amended Attachment No. 1 Tab4of5 FPL WEIGHTED AVERAGE COST OF CAPITAL STATE INCOME TAX FEDERAL INCOME T 5.50% 21.00o/o COMPOSITE INCOME TAX RAT 25.35O/O MODEL DATE:1-Jan-1 8 Debt Gost Based on Blue Chip Corporate Aaa and Bbb Bonds AFTERTAX PRETAX SOURCE /VEIGHT(1) COST(2)/TD COST /TD COST /TD COST DEBT COMMON 40.40% 59.60% 4.88o/o 10.55% 1.97% 6.29o/o 147% 6.29% 1.97% 8.42o/o TOTAL 100.00%8.26% 7.760/0 10.39% AFTER-TAX WACC 7.76% Docket No. 20200O71-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1, APPENDIX A (Page 17 of 1B) Florida Power & Light Company Docket No. 20170215-EU Staff's First Data Request Request No. 29 - Third Supplemental Amended Attachment No. L Tab5of5 Consumer Prices (1982-84=L.000) All-Urban (Forecast adjusted to match budget assumptions) lndex % Change 2009 2.1454 201.0 2.1806 1_.640/o 2017 2.2494 3.16% 20L2 2.2959 2.07% 20L3 2.3296 1.460/o 2014 2.3674 1,.62% 2015 2.3702 0.r2% 20L6 2.4007 1,.26% 20L7 2.4512 2.13% 2018 2019 2020 2021 2022 2023 2A24 2025 2026 2027 2028 2029 2030 2031. 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041. 2042 2043 2044 2045 2046 2.s100 2.5703 2.637r 2.7083 2.7553 2.8237 2.8909 2.9569 3.0228 3.0895 3.1573 3.2270 3.2981 3.3693 3.44LL 3.5142 3.5887 3.6642 3.7408 3.8187 3.8972 3.9779 4.0603 4.L449 4.2324 4.3226 4.4153 4.5104 4.6017 2.40% 2.40% 2.60% 2.70% L.73% 2.46% 2.40% 2.28% 2.23% 2.2L% 2.19% 2.21% 2.20% 2.16% 2.L3% 2.L2% 2.12% 2.LO% 2.O9% 2.08o/o 2.06% 2.O7% 2.O7% 2.08% 2.tLo/o 2.t3% 2.L5% 2.L5% 2.16% Budget Assumptions 2.40% 2.40% 2.60% 2.to% Docket No. 20200071-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 18 of 1B) 2047 2048 4.7067 4.8099 2.r5% 2.19% 2049 2050 2051 2052 2053 2054 2055 20s6 2051 4.9122 5.0167 5.1233 s.2323 5.3435 5.4572 5.5132 5.6917 5.8128 2.L3% 2.L3% 2.13% 2.r3% 2.13% 2.r3% 2.I3o/o 2.r3% 2.13o/o Actuals thru 2017 from BLS APPENDIX (FPL's Management ] :t31 .--, 3ildr Ai d I i !-'tF.tr.orr. Docket No. 20200071-El F PL's 2020-2029 Storm Protection Plan Exhibit MJ-1, APPENDIX C (Page 1 of 2) APPENDIXC (FPL' s 2020-2029 Estimated SPP Costs) 2020-2029 FPL SPP Program Costs/Activities Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1, APPENDIX C (Page 2 of 2) Distribution - Pole lnspections Operating Expenses Capital Expenditures Total # of Pole lnsPections Transmission - lnspections Operating ExPenses Capital Expenditures Total # of Structure lnspections Distribution - Feeder Hardenins (1) (2) Operating ExPenses capital Expenditures Total # of Feeders (3) Distribution Lateral Hardenins (1) (2) Operating Expenses capital Expenditures Total # of Laterals (3) Transmission - Replacinq Wood Structures Operating Expenses Capital Expenditures Total # of Structures to be RePlaced Distribution - Vesetation Management Labor ' Contractor Labor - FPL Equipment - Contractor Equipment - FPL Total # of Miles Maintained Transmission - Vegetation Manasement Labor - Contractor Labor - FPL Equipment - Contractor Equipment - FPL Total # of Miles Maintained Substation Storm surse/Flood Mitisation Operating Expenses Capital Expenditures Total # of Substations 50.7 54.1 in mil 3.8 s 3.8 5 ss.3 s ss.3 ssg.os s9.r.5 60.3 r.54,000 1s4,000 154,000 1.0 s 1.0 s 67.s s s4.6 50g.ss ss.6s s3.o 68,000 58,000 68,000 573.3 474.5 200.0 474.5 2oo.o s 3.9 56,4 3.9 57.4 4.0 s9.3 4.1 60.8 54.5 r.50,000 35.8 68,000 57.9 r.50,000 32.2 68,000 s7.9 154,000 28.9 68,000 7,000 5r..8 154,000 63.3 1"54,000 64.9 154,000 3.9 s6.6 1.0 48_9 s 0.2 s 5 5 4.2 62.3 s 39.1 s s55.x s56.ss 60s.2s 60.s r-54,000 ss1.3 s 34.s s 1.0 3r.2 1.0 27.9 1.0 52.O s 1.0 54.6 1.0 56.0 s 55.7 58,000 647.2 663.4 800-900 800-900 r.o 5 s7.4 s s7.o s s8.4 s 68,000 58,000 lo.s s 489.0 s s 117.9 s 453.7 s s 14.7 s s 11s.9 s 1.0 53.3 5 5 54.3 68,000 s 663.4 679.9 696.9 499.s s s0.0 534.3 3,20s.8 534.3 510.1 695.9 5,101.4 s 510.1 800-900 628.r 564.9 s 654.9 628.r-s 664.9s 664.9 300-3s0 300-3s0 300-3s0 s s573.3 300-350 250-350 r20.4 2a2.5 s r2o.4 5 212.s 220-230 300-350 342.8 475.6 631.4 5 631.4 S 647.2 342.8 400-500 47s.6s 631.4s 63r.4 600-700 800-900 800-900 679.9 800-900 s s s 5 s s 1.5 0.r.L.40.1 s s s 5.3 t,4 1.7 ) s23.O s s s s 5 0.2 42.7 47.8 1_.4 L2.O 0.1 6.7 s 0.s s 1.7 s M.6 1.5 1r.2 0.1 39.3 46.4 5 0.2 21.9 0.6 7r7.3 o.2 39.152.7 52.9 1,400-L,500 900-1,100 300-600 47.7 S 1".3 s r.r".9 s 51.1 s 61.3 15,200 15,200 6.7 0.5 0.1 9.0 5 8.9 7,000 7,000 42.9 5 22.7 5 ) s $ s s s s s s s s s 0.1 0.10.1 7.2 s s s s 5 s s 5 s s ) s s s s ) 0.1 s s s ) s 5 5 5 s 46.9 1.4 11-7 0.1 6.6 0.5 1,.7 0.1 45.9 s 47.! 5 47.1- s r.s 5 1.s S 1.5 S r1,.7 s 1L.8 s r"1.8 5 46.3 1.5 11.6 u.tr 7.4 0.6 1".8 0.1 45.5 1.5 tr.4 0.1 7.6 0.5 1.9 0.r- 43.8 1.5 11.0 0.1 56.4 15,200 60.2 L5,200 60.2 L5,ZOO 60.6 ls,200 50.5 s s9.s 15,200 15,200 s8.5 s s7.4 15,200 15,200 r0.2 7,000 7,O00 L1,.6 595.7 77.7 a7.9 96.4 s 9.6 59.5 7.2 0.5 1.8 0.1 s s s s s ) 5 6.7 0.5 1.7 0.1 0.5 1.8 0.1 7.2 5 0.5 s l-.8 s 0.1 s 7.9 0.6 2.O o.2 7.8 0.6 L.9 0.1 5 5 s ro.48.9 s.os 9.7s 9.75 e.e 7,OO0 7,000 7,000 7,000 7O.7 5 7,OOO s s s s s 10.0 5 2 23.O 7.7 7.7 5 s64.7 91,090.7 S 1,19s.8 5r,24s.6 Sx,290.9 S1,014.9 5 832.7 S 8s1.0 S 86e.7 S 889.0 S10,245.0 5 L,27L.L 10.03.0 3.0 t 10.0 10.0 to75 Total SPP Costs (1") Project level detail for 2020 in Appendix (2) Costs include previous year(s) projects carried over to current year's project costs and future year's preliminary project costs (e.9., engineering) (3) # of feeders or lateral to be initiated in the current year Total SPP Annual Costs Average Cost2023,FPL 5PP Programs 202520222024 2026 2027 2028 20292023 2024 Docket No. 20200071-El FPL'9 2O2O-2O29 Storm Protection Plan Exhibit MJ-1 , APPENDIX D (Page 1 of 14) APPENDIXD (FPL's Hardening Design Guidelines) Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1, APPENDIX D (Page 2 ot 14) @FPL Distribution Design G uidelines The following guidelines will be used to standardize the design of FPL's overhead distribution facilities when practical, feasible, and cost effective. General 1. FPL has made a change to adopt Extreme Wind loading (EWL) as the design criteria for: (1) new pole line construction, (2) pole line extensions, (3) pole line relocations, (4) feeder pole replacements on multi-circuit pole lines, and (5)feeder pole replacements on Top-ClF feeders. Reference the Pole Sizing section (pg. 7) for the guidelines to determine the necessary pole class and type for all work. Refer to the Distribution Engineering Reference Manual Addendum for calculating pole sizes for specific framing under extreme wind loading conditions. 2. For maintenance, existing non-top-ClF pole lines may be evaluated using NESC combined ice and wind loading with Grade B construction. This represents the loading prior to the adoption of extreme wind loading. lf the pole must be replaced, refer to the Pole Sizing section for the minimum class pole to be installed. Refer to the Distribution Engineering Reference Manual (DERM) Section 4 for calculating pole sizes for specific framing under the NESC combined ice and wind loading conditions. 3. Every attempt should be made to place new or replacement poles in private easements or as close to the front edge of property (right of way line) as practical. 4. Overhead pole lines should be placed in front lot lines or accessible locations where feasible. 5. \Nhen replacing poles, the new pole should be set as close as possible to the existing pole to avoid the creation of a new pole location. 6. Poles are not to be placed in medians. 7. Concrete poles are not to be placed in inaccessible locations or locations that could potentially become inaccessi ble. 8. Please reference the minimum setting depth charts located in DCS D-3.0.0 which shows the increased setting depths for concrete poles. g. Every effort should be made not to install poles in sidewalks. lf a pole must be placed in a sidewalk, a minimum unobstructed sidewalk width of 32" must be maintained to comply with the American Disabilities Act (ADA) requirements. 10. lf concrete poles are required by the governing agency as a requirement of the permit, and if the work is being done solely for FPL purposes (feeder tie, etc.), then the concrete Docket No. 20200071-El FPL's 202O-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX D (Page 3 of 14) poles are installed with no differential charges. lf the concrete poles are required as a condition of the permit, and the work is being done at the request of a customer (and fall outside the Pole Sizing Guidelines) to provide seruice to the customer or relocation by request of the customer, then the customer is charged a differential cost for the concrete poles. 11. When installing new OH secondary spans, multiplexed cable should be used instead of open wire secondary. When reconductoring or relocating existing pole lines containing open wire secondary, replace the open wire with multiplexed cable whenever possible. The system neutral should not be removed when replacing open wire secondary with multiplexed cable if primary wire is present. lt is necessary to maintain a separate system neutral for operational continuity of the system. 12. U/hen designing overhead facilities where secondary and service crossings exist across major roadways, the engineer should take into consideration placing these secondary street crossings underground. Operations Director Approval is required. 13. V/henever extending a feeder, reconductoring a feeder section, or attaching a device to a feeder, always reference the nearest existing disconnect switch number on the construction drawing and show the dimension to the switch. This will aid the Control Centers in updating their switching system and will aid AMG in updating AMS, as well as provide the Productioh Lead and Distribution Tech information needed for switching and RC Off requests. 14. When an overhead feeder crosses any obstacle to access (i.e. - water bodies such as rivers, canals, swamps; limited access RA// such as interstate highways, turnpikes, and expressways; etc.) disconnect switches should be placed on both sides of the obstacle in order to isolate the crossing in the event of a wiredown situation. See the example in the Crossing Multi-Lane Limited Access Highways section (pg. 5). 15. Projects that affect or extend feeder conductors should always be coordinated with Distribution Planning to ensure optimization of the distribution grid. Taking into account future feeder plans such as, feeder boundary changes, sectionalizing devices, integration of automation and remotely controlled protection. As always, good engineering judgment, safety, reliability, and cost effectiveness should be considered. ln addition to these guidelines, all distribution facilities shall be engineered to meet the minimum requirements set forth in all applicable standards and codes including but not limited to the National Electrical Safety Code (NESC), Utility Accommodation Guide, and FPL Distribution Construction Standards. Please contact a Distribution Construction Services (DCS) analyst with any questions. @ Docket No. 20200071-El FPL's 2020-2029 Storm Protection PIan Exhibit MJ-1, APPENDIX D (Page 4 of 14) FPL New Construction When installing a new feeder, lateral, or service pole, reference the Pole Sizing section for the guidelines to determine the necessary pole class and type to meet Extreme Wind Loading (EWL) for the wind zone region (105, 130, or 145 MPH). 2. Modified Vertical is the preferred framing for accessible locations. Post-top (single phase) or Cross Arm (multi-phase) is the preferred framing for inaccessible locations. 3. During the design of new pole lines in developed areas, field visits should be conducted to ensure the design would cause minimum impact to the existing property owners. 4. Overhead pole lines should not be built on both sides of a roadway unless agreed to by the customer nor should multi-circuit pole lines be created. When designing main feeder routes allviable options must be reviewed (including alternative routes) and consideration should be given to constructing the line underground. lf undergrounding is chosen and it is no!-the leait cost option, approval is required from the Engineering & Technical Services Director and the Operations Director. ln addition, priorto proceeding with any pole lines on both sides of a street or any multi-circuit feeder design recommendations, Operations Director approval is required. 5. When there is an existing pole line in the rear easement, every effort should be made not to build a second pole line along the right of way. 6. When installing a pole line within a transmission line, accessible distribution poles should be concrete. Distribution concrete poles should not be installed in inaccessible locations. 7. lf concrete distribution poles are installed in a concrete transmission line, there is no additional charge to the customer (the concrete poles are FPL's choice and not requested by the customer). boordination between the transmission and distribution design is critical and consideration should be given to a design with alltransmission poles versus distribution intermediate poles. This approach will reduce the overall number of poles. B. When transmission is overbuilding (concrete structures), along an existing distribution corridor, if the distribution wood poles are in good condition, do not replace. lf wood poles need to be changed out or relocated, replace with concrete poles to match the transmission pole type. Coordination between the transmission and distribution design is critical and consideration should be given to a design with alltransmission poles versus distribution intermediate poles. This approach will reduce the overall number of poles. 1 Docket No. 2O20O071-EI FPL'9 2020-2029 Storm Protection PIan Exhibit MJ-1, APPENDIX D (Page 5 of 14) FPL Existing / Maintenance 1. When installing and/or replacing a feeder, lateral, or service pole on an existing pole line, reference the Pole Sizing section for the guidelines to determine the necessary pole class and type. 2. When installing or replacing a feeder pole on a feeder that serves a Top-ClF customer, ensure the new pole will meet extreme wind loading (versus just a minimum class 2 or lllH pole) so that it will not have to be replaced when the feeder is hardened as a hardening project. Please reference the Storm Secure Hardening SharePoint Site: Distribution > Central Maintenance > Central Contractor Services > Hardening > Reports > Feeder Prioritization-xxxxxx Snapshot for the list of Top-ClF feeders within the Prioritization File. 3. When extending pole lines, the existing pole type should be used as a guide for the new pole type. lf concrete poles are requested by the customer or are required as a condition of the permit and fall outside the Pole Sizing Guidelines, the customer will pay a differential charge for the concrete poles. 4. \Nhen replacing pole(s) and anchor(s) with larger self-supporting concrete poles, caution should be used, as the property owners in the vicinity of the pole will not necessarily perceive this concrete pole as a better choice. 5. When replacing poles on a multi-circuit feeder the replacement pole should be designed for Extreme Wind Loading using Pole Foreman to calculate the wind loading. Relocations 1. When relocating a pole line, reference the Pole Sizing section for the guidelines to determine the necessary pole class and type to meet Extreme \Mnd Loading (EWL) for the wind zone region (105, 130, or 145 MPH). 2. When relocating either a concrete or wood pole line for a highway improvement project, the existing pole line 'type' should be used as a guide for the pole type replacements. There is no additional charge for concrete poles if the existing poles being relocated are concrete (like for like relocation). lf the customer requests an "upgrade" to concrete poles, a differential is charged. 3. Reimbursable relocations will equal the cost to relocate the line built to Extreme Wind Loading (plus removal of old), including indirect cost. 4. Agency relocation projects should be coordinated with Distribution Planning to ensure optimization of the distribution grid and to take into account future feeder plans and potential feeder boundary changes. @ Docket No. 2O200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1, APPENDIX D (Page 6 of 14) @FPL Grossing Multi-Lane Limited Access Highways The following guidelines are to be used when an overhead feeder crosses any obstacle to access (i.e. -limited access RA/r/ such as interstate highways, turnpikes, and expressways, etc.). Similar consideration can be given to water bodies such as rivers, canals, swamps. 1. Underground installation is the preferred design for all new crossings (1,2,3 phase) of multi- lane limited access highways & hardening of existing crossings; reference Fig 1. Limited Access Highway Crossing Schematic (Preferred). lf underground construction is not feasible, reference Fig 2. Limited Access Highway Crossing Schematic (Alternate). 2. Underground crossing for 1 & 2 phases should be designed for potential three phase feeder size cible. Ensure riser poles meet or exceed extreme wind design for the designated region. For further information, please contact the CMC Hardening Group. 3. For accessible overhead crossings, use concrete poles (lll-H or greater square concrete pole) for the crossing poles and minimum Class 2 wood poles for the intermediate poles. For inaccessible overhead crossings, minimum Class 2 wood poles should be used for the crossing and intermediate poles. All poles installed should meet or exceed EWL for the designated region. 4. Every attempt should be made to install storm guys & back guys for the highway crossing poles. Storm guys are not required on the adjacent poles. 5. Frame the highway crossing pole double dead-end (See LOC 2 & 3 Fig 2 below)' 6. lnstall disconnect switches on adjacent poles on both sides of the crossing (or as required by field conditions) to isolate the feeder section for restoration. Switches are to be installed in accessible locations that can be reached with readily available aerial equipment. Switches should be installed at -42 Above Grade (AG), with a maximum pole size of 50' wood or 55' concrete. lf there is no load between the nearest existing switch and the crossing, an additionalswitch is not required. 7. Checkforupliftonallpoles. RefertoDERMSection 4.2.3Page4of 16&DCSE4.0'2and E-4.0.3. Back guys should be installed at the adjacent pole if required for uplift. B. Ensure to maintain proper clearance above or under all highways as dictated by the owner of the RAff & DCS 8-3.0.1. g. Any conductors crossing the highway that have splices should be replaced with a continuous conductor (NESC 261H2a). See Fig 2 below for additional notes on the use of splices on adjacent spans. One additional set of dead-end insulators at the highway oossing pole may bs used if this eliminates the need for splices when installing a new pole. Docket No. 2020O071-El FPL's 202O-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX D (Page 7 of 14) @trtrL 10. Engineers must conduct a pre-design meeting with the Production Lead to ensure the feasibility of the proposed design. 11. As always, use good engineering judgment to produce a quality, cost-effective design Fig 1. Limited Access Ilighway Crossing Schematic (Preferred) Fig 2. Limited Access Highway Crossing Schematic (Alternate) INSTALL ACCESSIBLE DISCONNECT SWTCHES REMOVE OH &INSTAI.L ACCESSIBLE DISCONNECTSWTCHESDIRECNONAL 3 #5687-23rO/ &3/0T-N ItF - FNc -{lF -o a o o--BIoroouo ouF =J a DOWNGUY FOR OEAOEND OUTSIDE OF LIMITED ACCESS HIGHUIAY. ADJUST LOCATION OF POLE FOR FIELO CONDITIONS ALTERNATE LOCATION FOR RISER POLE TO PREVENT DOWN GUY IN LIMITED ACCESS R/W DISC SW @ -.t2'AG MAX POLE SIZE: 50'wooD, 55' coNcRETE INSTALL ACCESSIBLE DISCONNECTSWITCHES NO SPLICES INSTALL ACCESSIBLE DISCONNECT SWTCHES 3 #568T-231C/ & 568T-N CHECK FOR UPLIFT A INSTALL DOWN GUYS IF T I f t ! T I IL J J REQUIRED o ---J F--(---g IIro0Uo auE = ___l_-_) e-- a-\ -a 4 a J DISC SW @ -,12' AG MAX POLE SIZE: 50'wooD, 55'coNcRETE (swTcH LocAnoN MAY VARY BASED ON FIELD CONO''7OA'S. REFERENCE D'STRIBUT'ON DESIGN GUTDELTNES) & INSTALL IMTERMEOIATE POLE IN EFFORT TO REDUCE SPANS INSTALLSTORM GIJYS & SACK GUY 1 Christopher T. Wright Senior Attorney - Regulatory Florida Power & Light Company 700 Universe Blvd Juno Beach, FL 33408-0420 Phone: (561) 691-7144 E-mail: Christoper.Wri ght@fpl.com Florida Authorized House Counsel; Admitted in Pennsylvania April10,2020 VA ELECTRONIC FILING Mr. Adam Teitzman Division of the Commission Clerk and Administrative Services Florida Public Service Commission 2540 Shumard Oak Blvd. Tallahassee, FL 32399-0850 Re: Docket No. 20200071-EI Review of 2020-2029 Storm Protection Plan pursuant to Rule 25-6.030, F.A.C., Florida Power & Lieht Companv Dear Mr. Teitzman: Enclosed for electronic filing in the above-referenced docket, please find Florida Power & Light Company's Petition for Approval of the 2020-2029 Storm Protection Plan pursuant to Rule 25- 6.030, F.A.C., together with the Direct Testimony of FPL witness Michael Jaro and Exhibit MJ- 1. Copies of this filing will be provided as indicated on the enclosed Certificate of Service. If you or your staff have any question regarding this filing, please contact me at (561) 691-7144. Respectfully submitted, s/Christopher Wrisht Christopher T. Wright Authorized House Counsel No. 1007055 Enclosure FF'L- Florida Power & Light Company 700 Universe Boulevard, Juno Beach, FL 33408 Page | L BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION Review of 2020-2029 Storm Protection Plan pursuant to Rule 25-6.030, F.A.C., Florida Power & Light Company Docket No. 2020007l-EI Filed: April 10,2020 PETITION OF FLORIDA POWER & LIGHT COMPAi\Y F'OR APPROVAL OF THE STORM PROTECTION PI,A,N L INTRODUCTION Florida Power &Light Company ("FPL" or the 'oCompany") hereby files this petition (the "Petition") requesting that the Florida Public Service Commission ("Commission") approve the proposed Transmission and Distribution ("T&D") Storm Protection Plan for the years 2020-2029 (hereinafter, the "SPP") pursuant to Section 366.96, Florida Statutes ("F.S.") and Rule 25-6.030, Florida Administrative Code ("F.A.C."). FPL's SPP is, in large parI, a continuation and expansion of its previously approved and successful storm hardening and storm preparedness programs. FPL submits that the storm hardening and storm preparedness programs included in its SPP are appropriate and necessary to achieve the legislative objectives of Section366.96, F.S., to protect and strengthen T&D infrastructure from extreme weather conditions, reduce outage times and restoration costs, and improve overall service reliability to customers.l In support of this Petition, FPL states as follows: 1. The name and address of the Petitioner is: Florida Power & Light Company 700 Universe Blvd Juno Beach, FL 33408 1 The recovery of costs associated with the SPP, as well as the actual and projected costs to be included in FPL's Storm Protection Plan Cost Recovery Clause, will be addressed in subsequent and separate Storm Protection Plan Cost Recovery Clause dockets pursuant to Rule 25-6.031, F.A.C. The Commission has opened Docket No. 20200092-El to address Storm Protection Plan Cost Recovery Clause petitions to be filed the third quarter of 2020. 1 2. FPL is a corporation organized and existing under the laws of the State of Florida and is an electric utility as defined in Sections 366.02(2) and366.96, F.S. FPL provides generation, transmission, and distribution seryice to nearly five million retail customer accounts. 3. Any pleading, motion, notice, order or other document required to be served upon the petitioner or filed by any party to this proceeding should be served upon all of the following individuals: John T. Burnett Vice President and Deputy General Counsel Christopher T. Wright Senior Attorney Florida Power & Light Company 700 Universe Boulevard Juno Beach, FL 33408-0420 Phone: 56I-69I-7144 Fax: 561-691-7135 Email: iohn.t.burnett@.fol.com Email : christopher.wri ght@fpl.com 4. The Commission has jurisdiction pursuant to Section 366.96, F.S., and Rule 25- 6.030, F.A.C. 5. This Petition is being filed consistent with Rule 28-106.201, F.A.C. The agency affected is the Commission, located at2540 Shumard Oak Boulevard, Tallahassee, Florida32399. This case does not involve reversal or modification of an agency decision or an agency's proposed action. Therefore, subparagraph (c) and portions ofsubparagraphs (b), (e), (0 and (g) ofsubsection (2) of Rule 28-106.201, F.A.C., are not applicable to this Petition. ln compliance with subparagraph (d) of Rule 28-106.201 , F.A.C., FPL states that it is not known which, if any, of the issues of material fact set forth in the body of this Petition may be disputed by any others who may plan to participate in this proceeding. The discussion below demonstrates how the petitioner's substantial interests will be affected by the agency determination. 2 Kenneth A. Hoffman Vice President, Regulatory Affairs Florida Power & Light Company 215 South Monroe Street, Suite 810 Tallahassee,FL 32301 Phone: 850^521-3919 Fax: 850-521-3939 Email : ken.hoffman@fpl.com II.BACKGROUND ND OVERVIEW 6. On June 27,2079, the Governor of Florida signed CS/CS/CS/SB 796 addressing Storm Protection Plan Cost Recovery, which was codified in Section 366.96, F.S. Therein, the Florida Legislature found that it was in the State's interest to "strengthen electric utility infrastructure to withstand extreme weather conditions by promoting the overhead hardening of electrical distribution and transmission facilities, the undergrounding of certain electrical distribution lines, and vegetation management," and for each electric utility to "mitigate restoration costs and outage times to utility customers when developing transmission and distribution storm protection plans." Section 366.96(I), F.S. The Florida Legislature directed the Commission to adopt rules to specify the elements that must be included in each utility's SPP. Section 366.96(l), F.S. 7. Rule 25-6.030, F.A.C., requires each utility to file an updated SPP at least every three years that covers the utility's immediate ten-year planning period. Rule 25-6.030, F.A.C., also specifies the information to be included in each utility's SPP. Consistent with these requirements, FPL is herein submitting its SPP for the ten-year period of 2020-2029, which is provided as Exhibit MJ-1. 8. FPL's SPP is largely a continuation and expansion of its existing storm hardening and storm preparedness programs, which were most recently approved in FPL's 2019-2021 Storm Hardening Plan.2 These existing hardening and storm preparedness programs have already demonstrated that they have and will continue to increase T&D infrastructure resiliency, reduce restoration times, and reduce restoration costs when FPL's system is impacted by extreme weather 2 See In re: Petitionfor Approval of Florida Power & Light Company's 2019-2021 Storm Hardening Plan pursuant to Rule 25-6.0342, F.A.C.,DocketNo. 20180144-EI, OrderNo. PSC-2019-0364-CO-EI (Fla. PSC Aug. 27 , 20 1 9) (making Order No. PSC-20 I 9-03 0 I -PAA-EI issued on July 29 , 2019, effective and final). J events. FPL performed an analysis of Hurricanes Matthew and Irma that indicated the restoration construction man-hours ("CMH"), days to restore, and storm restoration costs for these storms would have been significantly higher without FPL's storm hardening programs.3 9. While FPL's nation-leading initiatives have made significant progress toward strengthening FPL's infrastructure, FPL must continue its T&D storm hardening and storm preparedness plans and initiatives. Storms remain a constant threat and Florida is the most hurricane-prone state in the nation. With the significant coast-line exposure of FPL's system, and the fact that the majority of FPL's customers live within twenty miles of the coast, a robust storm protection plan is critical to maintaining and improving grid resiliency and storm restoration as contemplated by the Legislature in Section 366.96. 10. As part of its SPP, FPL will continue the previously approved storm hardening and storm preparedness programs to achieve the legislative objectives of promoting the overhead hardening of T&D facilities, the undergrounding of distribution lines, and vegetation management to reduce restoration costs and outage times to customers and improve the overall service reliability for customers. In addition, FPL proposes to implement a new substation storm surge/flood mitigation program. FPL submits that the SPP will continue and expand the benefits of hardening, including improved day-to-day reliability, to all customers throughout FPL's system. 11. Submitted herewith and in support of FPL's SPP is the Direct Testimony of Michael Jarro and Exhibit MJ-l, which includes FPL's SPP for the period of 2020-2029 and supporting schedules. 3 ,See FPL's Third Supplemental Response to Staffs First Data Request No. 29 ("Third Supplemental Amended") in Docket No. 20170215-EI, which is provided as Appendix A to Exhibit MJ-l. 4 III. STORM PROTECTION PLAI\ A. Description of the SPP Programs 12. FPL's SPP is largely a cbntinuation and expansion of the following previously approved storm harde;:H.;ffi J;,::;; Structures/Other Equipment Inspections - Transmission Program Feeder Hardening (EWL) - Distribution Program Lateral Hardening (Undergrounding) - Distribution Program Wood Structures Hardening (Replacing) - Transmission Program Vegetation Management - Distribution Program Vegetation Management - Transmission Program In addition, FPL proposes to implement a new Substation Storm Surge/Flood Mitigation-Program to protect T&D substations and equipment that are susceptible to storm surge or flooding during extreme weather events. These SPP programs are summarized below and a detailed description of each SPP program, consistent with Rule 25-6.030(3Xd), F.A.C., is provided in Section IV of Exhibit MJ-l. 13. The Pole Inspection - Distribution Program will continue FPL's existing Commission-approved distribution pole inspection program, which is an eight-year pole inspection cycle for all distribution poles that targets approximately 1/8 of the system annually (theactualnumberofpolesinspected canvary somewhatfromyeartoyear). Withapproximately 1.2 million distribution poles as of year-end 2019, FPL expects to inspect approximately 150,000 poles annually. The estimated 2020-2029 annual average cost for the Pole Inspection - Distribution Program is approximately $61 million per year, which is consistent with historical 5 costs for the existing distribution pole inspection program.a A detailed description of the Pole Inspection - Distribution Program is provided in Section IV(A) of Exhibit MJ-1. 14. The Structures/Other Equipment Inspections - Transmission Program will continue FPL's current Commission-approved transmission inspection program which requires: (a) transmission circuits and substations and all associated hardware to be inspected on a six-year cycle; (b) wood structures to be visually inspected from the ground on an annual basis and climbing or bucket truck inspections to be conducted on a six-year cycle; and (c) steel and concrete structures to be visually inspected on an annual basis and climbing or bucket truck inspections to be conducted on a ten-year cycle. FPL expects to inspect approximately 68,000 transmission structures annually. The estimated 2020-2029 annual average cost for the Structures/Other Equipment Inspections - Transmission Program is approximately $50 million per year, which is consistent with historical costs for the existing transmission inspection program.s A detailed description of the Structures/Other Equipment Inspections - Transmission Program is provided in Section IV(B) of Exhibit MJ-1. 15. The Feeder Hardening (EWL) - Distribution Program will continue FPL's existing Commission*approved approach to harden existing feeders and certain critical distribution poles, as well as FPL's initiative to design and construct new pole lines and major planned work to meet the extreme wind loading ("EWL") criteria set forth in the National Electric Safety Code. FPL a Note, the2020-2029 program costs shown above are projected costs estimated as of the time of this filing. Subsequent projected and actual costs could vary by as much as l}ohto l5o/o. The annual projected costs, actual/estimated costs, actuals costs, and true-up of actual costs to be included in FPL's Storm Protection Plan Cost Recovery Clause will all be addressed in subsequent and separate Storm Protection Plan Cost Recovery Clause filings pursuant to Rule 25-6.031, F.A.C. The Commission has opened Docket No. 20200092-EI to address Storm Protection Plan Cost Recovery Clause petitions to be filed the third quarter of2020. 5 ,See footnote 4. 6 expects to harden approximately 280-350 feeders annually, with 100% of FPL's feeders expected to be hardened or underground by year-end 2024 and with the final costs of the program to be incurred in 2025. The estimated average annual cost for the Feeder Hardening (EWL) - Distribution Program to be incurred over the period of 2020-2025 is approximately $534 million per year, which is consistent with historical costs for the existing distribution feeder hardening program.6 A detailed description of the Feeder Hardening (EWL) - Distribution Program is provided in Section IV(C) of Exhibit MJ-1. 16. The Lateral Hardening (Undergrounding) - Distribution Program includes completing FPL's existing three-year Storm Secure Underground Program Pilot ("SSUP Pilot") in 2020 and expanding the application of the SSUP to the implementation of the system-wide Lateral Hardening (Undergrounding) - Distribution Program for the period of 2021-2029. The SSUP Pilot is a program that targets certain overhead laterals that were impacted by recent storms and have a history ofvegetation-related outages and other reliability issues for conversion from overhead to underground. As part of its SPP, FPL will incorporate, continue, and expand the SSUP during the ten-year SPP period to provide the benefits of underground lateral hardening throughout its system. After completing the SSUP Pilot in 2020,FPL estimates that it will convert approximately 300- 700 laterals annually in2021-2023 and approximately 800-900 laterals annually in2024-2029. The estimated 2020-2029 annual average cost for the Lateral Hardening (Undergrounding) - Distribution Program is approximately $510 million per year.7 A detailed description of the Lateral Hardening (Undergrounding) - Distribution Program is provided in Section fV@) of Exhibit MJ-l. 6 See footnote 4 7 See footnote 4 7 17. The Wood Structures Hardening (Replacing) - Transmission Program is a continuation of FPL's existing transmission hardening program to replace all wood transmission structures with steel or concrete structures. As of year-end 2019, 96% of FPL's transmission structures, system-wide, were steel or concrete, with less than 2,900 (or 4%) wood structures remaining to be replaced. FPL expects to replace the 2,900 wood transmission structures remaining on its system by year-end2022. The estimated2020-2022 annual average cost for the Wood Structure Hardening (Replacing) - Transmission Program is approximately $39 million per year, which is a decrease from the historical costs for the existing transmission hardening program.s A detailed description of the Wood Structure Hardening (Replacing) - Transmission Program is provided in Section IV(E) of Exhibit MJ-1. 18. The Substation Storm Surge/Flood Mitigation Program is the only new storm hardening program that FPL proposes to implement as part of its SPP. The Substation Storm Surge/Flood Mitigation Program will implement measures to protect certain T&D substations and equipment that are susceptible to storm surge or flooding due to extreme weather events. Specifically, FPL will raise the equipment at certain substations above the flood level and construct flood protection walls around other substations that arc susceptible to storm surge or flooding during extreme weather events. The Storm Surge/Flood Mitigation - Transmission and Distribution Program will reduce customer outages due to flooding and the need to de-energize substations that are impacted by storm surge or flooding, as well as reduce flood damage and restoration costs at these targeted substations. At this time, FPL has identified between 8-10 substations where it initially plans to implement storm surge/flood mitigation measures over the 8 8,See footnote 4 next three years (2020-2022). The estimated 2020-2022 annual average cost for the new Substation Storm SurgeiFlood Mitigation Program is approximately $8 million per year.e A detailed description of the Substation Storm Surge/Flood Mitigation Program is provided in Section IV(F) of Exhibit MJ-1. 19. The Vegetation Management - Distribution Program is a continuation of FPL's existing, Commission-approved distribution vegetation management program. FPL's currently approved distribution vegetation program, includes the following system-wide vegetation inspection and management activities: three-year cycle for feeders; mid-year cycle targeted trimming for certain feeders; six-year cycle for laterals; and continued education of customers through its Right Tree, Right Place initiative. FPL plans to inspect and maintain, on average, approximately 15,200 miles annually, which is consistent with the historic miles inspected and trimmed annually. The estimated2020-2029 average annual cost for the Vegetation Management - Distribution Program is approximately $60 million per year, which is consistent with historical costs for the existing distribution vegetation management program.l0 A detailed description of the Vegetation Management - Distribution Program is provided in Section IV(G)of Exhibit MJ-1. 20. The Vegetation Management - Transmission Program is a continuation of FPL's existing transmission vegetation management program, which includes visual and aerial inspections of all transmission line conidors, LiDAR inspections of North American Electric Reliability Corporation transmission line corridors, developing and executing annual work plans to address identified vegetation conditions, and identifying and addressing priority andhazardtree conditions prior to and during storm season. FPL plans to inspect and trim, on average, e See footnote 4. 10 See footnote 4. 9 approximately 7,000 miles of transmission lines annually, which is consistent with the historic miles inspected and trimmed annually. The estimated 2020-2029 averuge annual cost for the Vegetation Management - Transmission Program is approximately $10 million per year, which is consistent with historical costs for the existing transmission vegetation management program.ll A detailed description of the Vegetation Management - Transmission Program is provided in Section IV(H) of Exhibit MJ-1. B. Additional Details for First Three Years of the SPP 21. The following additional project level information required by Rule 25- 6.030(3)(e)(1), F.A.C., for the first year of the SPP (2020) is provided in Appendix E to Exhibit MJ-l: (a) the actual or estimated construction start and completion dates; (b) a description of the affected existing facilities, including number and type(s) of customers served, historic service reliability performance during extreme weather conditions, and how this data was used to prioritize the storm protection project; and (c) a cost estimate including capital and operating expenses. A description of the criteria used to select and prioritize storm protection projects is included in the description of each SPP program provided in Section IV of Exhibit MJ-i. 22. Pursuant to Rule 25-6.030(3)(eX2), F.A.C., FPL has also provided the estimated number and costs of projects under each specific program for the second and third years (2027- 2022) of the SPP. This information is provided in Appendix C to Exhibit MJ-l. 23. The following additional information required by Rule 25-6.030(3)(f), F.A.C., for the first three years (2020-2022) of the vegetation management activities under the SPP is provided in Sections IV(G) and IV(H) of Exhibit MJ-l and Appendix C to Exhibit MJ-l: (a) the projected frequency (trim cycle); (b) the projected miles of affected transmission and distribution overhead ll See footnote 4. 10 facilities; and (c) the estimated annual labor and equipment costs for both utility and contractor personnel. Descriptions of how the vegetation management activities will reduce outage times and restoration costs due to extreme weather conditions are provided in Sections IV(G) and IV(H) of Exhibit MJ-1. C. Estimated Revenue Requirements and Rate Impacts 24. Pursuant to Rule 25-6.030(3)(9), F.A.C., the estimated annual jurisdictional revenue requirements of FPL's SPP for the ten-year period of 2020-2029 are provided in Section VI of Exhibit MJ-1. While FPL has provided estimated costs by program as of the time of this filing and associated total revenue requirements in its SPP, consistent with the requirements of Rule 25-6.030, F.A.C., subsequent projected and actual program costs submitted for cost recovery through the Storm Protection Plan Cost Recovery Clause (per Rule 25-6.031, F.A.C.,) could vary by as much as 10-l5o/o, which variations would also impact the associated estimated revenue requirements and rate impacts. 25. FPL anticipates the programs included in the SPP will have zero bill impacts on customer bills during the first year of the SPP and only minimal bill increases for years two and three of the SPP. An estimate of hypothetical overall rate impacts forthe firstthree years of the SPP (2020-2022) based on the total program costs reflected in this filing, without regard for the fact that FPL remains under a general base rate freeze pursuant to a Commission-approved settlement agreement through December 37, 2021, are provided in Section VII of Exhibit MJ-l. The annual jurisdictional revenue requirements and the estimated rate impacts are based on the total estimated costs, as of the time of this filing, for all programs included in the SPP regardless of whether those costs will be recovered in FPL's Storm Protection Plan Cost Recovery Clause or through base rates. In addition, under FPL's Commission-approved rate case settlement 1l agreement, any incremental base rate adjustment may not take place until FPL's base rates are established by the Commission in FPL's next base rate proceeding." 26. FPL is not seeking Commission approval, through this petition, to recover any of the estimated costs associated with the SPP in this filing. The projected costs, actual/estimated costs, actual costs, and true-up of actual costs to be included in FPL's Storm Protection Plan Cost Recovery Clause, including whether these costs are included in current base rates, will all be addressed in subsequent and separate Storm Protection Plan Cost Recovery Clause filings pursuant to Rule 25-6.031, F.A.C. The Commission has opened Docket No. 202000gz-Elto address Storm Protection Plan Cost Recovery Clause petitions to be filed the third quarter of 2020. D. FPL's SPP is in the Public Interest and Should Be Approved 27. Sections 366.96(4)-(5), F.S., provide that the Commission shall review each utility's SPP and, within 180 days from filing, determine whetherthe SPP is inthepublic interest.13 28. As explained above, the programs included in the SPP are largely a continuation and expansion ofFPL's already successful and ongoing storm hardening and storm preparedness programs previously approved by the Commission, as well as a new storm hardening program to t2 See In re: Petitionfor rate increase by Florida Power & Light Company, Docket No. 160021-EI, Order No. PSC-16-0560-AS-EI (Fla. PSC Dec. 15, 2016). 13 In reaching this determination, the Florida Legislature has directed the Commission to consider the following: (a) The extent to which the plan is expected to reduce restoration costs and outage times associated with extreme weather events and enhance reliability, including whether the plan prioritizes areas of lower reliability performance. (b) The extent to which storm protection of transmission and distribution infrastructure is feasible, reasonable, or practical in certain areas of the utility's service territory, including, but not limited to, flood zones and rural areas. (c) The estimated costs and benefits to the utility and its customers of making the improvements proposed in the plan. (d) The estimated annual rate impact resulting from implementation of the plan during the first 3 years addressed in the plan. See Section 366.96(4), F.S. l2 protect T&D substations and equipment from storm surge and flooding due to extreme weather events. These SPP programs will continue to provide increased T&D infrastructure resiliency, reduced restoration times, and reduced restoration costs when FPL's system is impacted by extreme weather events. 29. In DocketNo.20170215-EU, the Commission reviewed the electric utilities' storm hardening and storm preparedness programs and found the following: Florida's aggressive storm hardening programs are working; The length of outages was reduced markedly from the 2004-2005 storm season; Hardened overhead distribution facilities performed better than non- hardened facilities; Underground facilities performed much better compared to overhead facilities; and The primary causes ofpower outages came from outside the utilities' rights- of-way including falling trees, displaced vegetation, and other debris. See Review of Florida's Electric Utility Hurricane Preparedness and Restoration Actions 2018, Docket No. 201 7021 5-EU (July 24,20 1 8).14 30. The estimate of cumulative reductions in restoration costs and outage times associated with the SPP will be directly affected by how frequently storms hit FPL's service territory. Of course, no one is in a position to know for sure how frequently FPL's service territory will be impacted by strong hunicanes. However, consistent with historical results, FPL expects that the storm hardening and storm preparedness programs included in its SPP will result in a reduction in storm as well as non-storm (day-to-day) restoration costs. See FPL's Third Supplemental Response to Staffls First Data Request No. 29 ("Third Supplemental Amended") in ta Available athttp:llwww.psc.state.fl.usllibrarylfilingsl2}l8l04847-2018104847-2018.pdf. 13 Docket No. 20170215-EI, which is provided as Appendix A to Exhibit MJ-1. 31. FPL's storm hardening and storm preparedness programs have also provided and will continue to provide increased levels of day-to-day reliability. For example, FPL has previously submitted reports to the Commission that show hardened feeders have performed approximately 40Yo better (i.e., fewer outages) on a day-to-day basis than non-hardened feeders. 32. A detailed summary of the benefits of FPL's SPP is provided in Section II of Exhibit MJ-I, and the benefits and costs associated with each program is provided in Section IV of Exhibit MJ-1. 33. FPL's SPP meets the objectives of Section 366.96, F.S., satisfies the requirements of Rule 25-6.030, F.A.C., is in the public interest, and should be approved. IV CONCLUSION 34. As explained above and in further detail in Exhibit MJ-l and the supporting Direct Testimony of FPL witness Michael Jarro, FPL's SPP provides a systematic approach to achieve the legislative objectives of reducing restoration costs and outage times associated with extreme weather events and enhancing reliability. FPL's SPP appropriately and effectively maintains and builds on FPL's commitment to provide safe and reliable electric service to customers, consistent with our customers' needs and expectations . l4 WHEREFORE, FPL respectfully requests that the Commission find FPL's proposed SPP, provided as Exhibit MJ-l, is in the public interest and approve the SPP for the years2020-2029. Respectfully submitted this 1Oth day of April,2020, John T. Burnett Vice President and Deputy General Counsel Christopher T. Wright Senior Attorney Florida Power & Light Company 700 Universe Boulevard Juno Beach, FL 33408-0420 Phone: 561-691-7144 Fax: 561-691-7135 Email : j ohn.t.burnett@fpl.com Email: christopher.wright@fpl.com By:s/Christopher T. Wrisht Christopher T. Wright Fla. Auth. House Counsel No. 1007055 15 CERTIFICATE OF' SERVICE I HEREBY CERTIFY that a true and correct copy of Florida Power & Light Company's Petition for Approval of the 2020-2029 Storm Protection Plan in Docket No. 2020007t-EI, along with the Direct Testimony of Michael Jaro and Exhibit MJ-l, has been furnished by Electronic Mail to the following parties of record this 1Oth day of April,2020: s/ Christopher T. Wrisht Christopher T. Wright Fla. Auth. House Counsel No. 1007055 Fla. Auth. House Counsel No. 1017875 Florida Power &Light Company 700 Universe Boulevard (JB/LAW) Juno Beach, Florida 33408 Attorneyfor Florida Power & Light Company Charles Murphy, Esquire Rachael D zie chciarz, Esquire Florida Public Service Commission 2540 Shumard Oak Boulevard Tallahassee,FL 32399 rdziechc@psc.state. fl .us cmurphy@nsc.state.fl .us Office of Public Counsel J.R.Kelly Patricia A. Christensen c/o The Florida Legislature 111 West Madison Street, Room 812 Tallahassee, FL 32399 -7 400 kellyjr@.le g.state.fl .us christensen.patty@ le g. state.fl .us BEFORE THE FLORIDA PUBLIC SERYICE COMMISSION FLORIDA POWER & LIGHT COMPANY 2020-2029 STORM PROTECTION PLAII DOCKET NO. 202000071-Er DIRECT TESTIMONY OF MICHAEL JARRO APRrL 10,2020 TABLE OF CONTENTS I. INTRODUCTION .3 UI. DESCRIPTION OF'EACH SPP PROGRAM.......... ................7 IV. ADDITIONAL DETAILS FOR FIRST THREE YEARS OF'THE SPP....................16 EXHIBIT MJ-l - FPL's 2020-2029 Storm Protection PIan 2 1 2 aJ 4 5 6 7 8 9 10 1l 12 l3 I4 15 t6 17 18 t9 20 2l 22 23 24 25 a. A. I. INTRODUCTION Please state your name and business address. My name is Michael Jarro. My business address is Florida Power & Light Company, 15430 Endeavor Drive, Jupiter, FL, 3347 8. By whom are you employed and what is your position? I am employed by Florida Power & Light Company ("FPL" or the "Company") as the Vice President of Distribution Operations. Please describe your duties and responsibilities in that position. My curent responsibilities include the operation and maintenance of FPL's approximately 68,000 miles of distribution infrastructure, including 42,000 miles of overhead and 26,000 miles of underground, that safely, reliably, and efficiently deliver electricity to more than five million customers in FPL's service temitory covering approximately 28,000 square miles. I am responsible for the oversight of more than 1,600 employees in a control center and sixteen management areas. The functions and operations within my area are quite diverse and include distribution operations, major projects and construction services, power quality, meteorology, and other operations that together help provide the highest level of service to FPL's customers. Please describe your educational background and professional experience. I graduated from the University of Miami with a Bachelor of Science Degree in Mechanical Engineering and Florida International University with a Master of Business Administration. I joined FPL in 1997 and have held several leadership positions in distribution operations and customer service, including serving as distribution reliability manager, manager of distribution operations for south Miami-Dade area, control center general manager, director of network operations, senior director ofcustomer strategy and analytics, senior director ofpower delivery central maintenance and construction, and vice-president of transmission and substations. What is the purpose of your direct testimony? a. A. a. A. a. A. J 0. 1 2 aJ 4 5 6 7 8 9 10 11 12 13 l4 15 T6 I7 18 19 20 2l 22 23 24 25 26 A. a. A. a. A. The purpose of my testimony is to present and provide an overview of FPL's proposed 2020- 2029 Storm Protection Plan ("SPP" or "the Plan"), which is attached to my direct testimony as Exhibit MJ-l, and demonstrate that FPL's SPP is in compliance with Section 366.96, Florida Statutes ("F.S.") and Rule 25-6.030, Florida Administrative Code ("F.A.C."). I will provide a description ofeach storm protection program included in FPL's SPP and how it is expected to reduce restoration costs and outage times. I will also describe the estimated start/completion dates, estimated costs, and criteria used to select and prioritize the projects in each program. Finally, I will describe the additional detail provided for the first three years of FPL's SPP pursuant to Rule 25-6.030(3)(e)-(f), (h), and (i), F.A.C. Are you sponsoring any exhibits in this case? Yes. I am sponsoring Exhibit MJ-l - FPL's Storm Protection Plan 2020-2029. II. OVERVIEW OF FPL'S SPP What is the purpose of FPL's SPP? On June 27,2079, the Governor of Florida signed into law the Storm Protection Plan Cost Recovery legislation, which was codified in Section 366.96, F.S. As part of the new law, the Florida Legislature expressly found that it is in the State's interest: (a) "to strengthen electric utility infrastructure to withstand extreme weather conditions by promoting the overhead hardening of electrical transmission and distribution facilities, the undergrounding of certain electrical distribution lines, and vegetation management;" and (b) oofor each electric utility to mitigate restoration costs and outage times to utility customers when developing transmission and distribution storm protection plans." ,9ee Sections 366.96(1)(c)-(d), F.S. Based on these findings, the Florida Legislature directed each electric utility to file a SPP with the Florida Public Service Commission ("Commission") covering the immediate ten (10) year planning period. See Section 366.96(3), F.S. Consistent with this legislative requirement, FPL is submitting its SPP for the ten-year period of 2020-2029. 4 I 2 aJ 4 5 6 7 8 9 10 1l l2 13 l4 15 l6 t7 i8 t9 20 2l 22 23 24 a. A. FPL's SPP is a systematic approach to achieve the legislative objectives of reducing restoration costs and outage times associated with extreme weather events and enhancing reliability. As required by Rule 25-6.030, F.A.C., FPL's SPP includes, among other things, a description of each proposed storm protection program, including: (a) how each program will enhance the existing system to reduce restoration costs and outage times; (b) applicable start and completion dates for each program; (c) a cost estimate for each program; (d) a comparison of the costs and benefits for each program; and (e) a description ofhow each program is prioritized. The SPP also provides an estimate of the annual jurisdictional revenue requirement for each year of the SPP and additional details on each program for the first three years ofthe SPP (2020-2022), including estimated rate impacts. What programs are included in FPL's SPP? FPL's SPP is, in large part, a continuation and expansion of its previously approved storm hardening and storm preparedness programs, and includes the following SPP programs: o Pole Inspections - Distribution Program o Structures/Other Equipment Inspections - Transmission Program r Feeder Hardening - Distribution Program o Lateral Hardening (Undergrounding) - Distribution Program . Wood Structures Hardening (Replacing) - Transmission Program . Vegetation Management - Distribution Program r Vegetation Management - Transmission Program In addition, FPL proposes to implement a new Substation Storm Surge/Flood Mitigation Program to protect T&D substations and equipment that are susceptible to storm surge or flooding during extreme weather events. 5 1 2 aJ 4 5 6 7 8 9 10 11 t2 t3 I4 15 l6 l7 18 I9 20 21 22 23 24 25 26 a. A. With the exception of the new storm surge/flood mitigation program, the majority of these programs have been in place since 2007. As demonstrated by recent storm events, these programs have been successful in reducing restoration costs and outage times following major storms, as well as improving dayto-day reliability. FPL submits that continuing these previously approved storm hardening and storm preparedness programs in the SPP, together with the new storm surge/flood mitigation program, is appropriate and necessary to meet the requirements of Section 366.96, F.S., and Rule 25-6.030, F.A.C. These programs will address the expectations of FPL's customers and other stakeholders for increased storm resiliency, and will result in fewer outages, reduced restoration costs, and prompt service restoration. The SPP will continue and expand the benefits of hardening, including improved day-to-day reliability, to all customers throughout FPL's system. Please provide an overyiew of the benefits of FPL's SPP. The major benefit of FPL's SPP is to provide increased resiliency and faster restoration to the electric infrastructure that FPL's five million customers and Florida's economy rely on for their electricity needs. Safe and reliable electric service is essential to the life, health, and safety of the public, and has become a critical component of modern life. Florida remains the most hurricane-prone state inthe nation and, with the significant coast-line exposure of FPL's system and the fact that the vast majority of FPL's customers live within 20 miles of the coast, a robust storm protection plan is critical to maintaining and improving grid resiliency and storm restoration as contemplated by the Legislature in Section 366.96. FPL's SPP programs have already demonstrated that they have provided and will continue to provide increased Transmission and Distribution ("T&D") infrastructure resiliency, reduced restoration time, and reduced restoration cost when FPL is impacted by extreme weather events. FPL performed an analysis of Huricanes Matthew and Irma that indicated the restoration construction man-hours ("CMH"), days to restore, and storm restoration costs for 6 1 2 J 4 5 6 7 8 9 10 11 T2 l3 t4 15 t6 t7 18 19 20 2t 22 23 24 25 26 a. A. these storms would have been significantly greater without FPL's storm hardening programs. In the case of Hurricane Matthew, FPL estimated that without hardening, restoration would have taken two additional days (50% longer), and resulted in additional restoration costs of $i05 million (36%higher than actual costs). In the case of Hurricane Irma, FPL estimated that without hardening, restoration would have taken four additional days (40% longer), and resulted in additional restoration costs of$496 million (40% higherthan actual costs). A copy of FPL's analysis is provided in Appendix A to Exhibit MJ-l. A detailed summary of the benefits of FPL's SPP is provided in Section II of the SPP, and the benefits ofeach program are provided in Section IV ofthe SPP. Does FPL's SPP address recovery of the costs associated with the SPP? No. FPL anticipates the programs included in the SPP will have zero bill impacts on customer bills during the first year of the SPP and only minimal bill increases for years two and three of the SPP. However, the recovery of the actual costs associated with the SPP, as well as the costs to be included in FPL's Storm Protection Plan Cost Recovery Clause, will be addressed in subsequent and separate Storm Protection Plan Cost Recovery Clause dockets pursuant to Rule 25-6.031, F.A.C. The Commission has opened Docket No. 20200092-EI to address Storm Protection Plan Cost Recovery Clause petitions to be filed the third quarter of 2020. III. DASCRIPTION OF EACH SPPPROGRAM Has FPL provided the information required by Rule 25-6.030(3Xd) for each program included in its SPP? Yes. FPL's SPP provides the information required by the Rule 25-6.030(3Xd) for each program. If applicable, each program description included in FPL's SPP includes: (l) a description of how each program is designed to enhance FPL's existing transmission and distribution facilities including an estimate of the resulting reduction in outage times and 7 a. A 1 2 J 4 5 6 7 8 9 10 11 t2 13 t4 15 16 I7 18 19 20 2l 22 23 24 25 26 a. A. restoration costs due to extreme weather conditions; (2) identification of the actual or estimated start and completion dates of the program; (3) a cost estimate including capital and operating expenses; (4) a comparison ofthe costs and the benefits; and (5) a description ofthe criteria used to select and prioritize proposed storm protection programs. Each of the above listed descriptions is provided in Section IV of FPL's SPP. Below, I will provide a brief overview of each program included in FPL's SPP. Please provide a summary of FPL's Pole Inspection - Distribution Program included in the SPP. The Pole Inspection - Distribution Program included in the SPP is a continuation of FPL's existing Commission-approved distribution pole inspection program. FPL's existing, Commission-approved distribution pole inspection program is an eight-year pole inspection cycle for all distribution poles that targets approximately 1/8 of the system annually (the actual number of poles inspected can vary somewhat from year to year). To ensure inspection coverage throughout its service territory, FPL established nine inspection zones (based on FPL's management areas and pole population) and annually performs pole inspections of approximately 1/8 of the distributionpoles in each of these zones, as well as any necessary remediation as a result of such inspections. As explained in the SPP, recent storm events demonstrate that FPL's existing distribution pole inspection program has contributed to the overall improvement in distribution pole performance during storms, resulting in reductions in storm damage to poles, days to restore, and storm restoration costs. With approximately 1.2 million distribution poles as of year-end 2019, FPL expects to inspect approximately 150,000 poles annually (spread throughout its nine inspection zones) during the 2020-2029 SPP period. The total estimated costs for the Pole Inspection - Distribution Program for the ten-year period of 2020-2029 is $605 million with an annual average cost of approximately $61 million, which is consistent with historical costs for the existing distribution 8 1 2 aJ 4 5 6 7 8 9 10 11 t2 l3 14 15 16 t7 18 19 20 a. A pole inspection program.l A detailed description of the Pole Inspection - Distribution Program is provided in Section IV(A) of FPL's SPP. Please provide a summary of FPL's Structures/Other Equipment Inspections - Transmission Program included in the SPP. The Structures/Other Equipment Inspections - Transmission Program included in the SPP is a continuation of FPL's existing Commission-approved transmission inspection program. The SPP will continue FPL's current, Commission-approved transmission inspection program which requires: (a) transmission circuits and substations and all associated hardware to be inspected on a six-year cycle; (b) wood structures to be inspected visually from the ground on an annual basis and climbing or bucket truck inspections to be conducted on a six-year cycle; and (c) steel and concrete structures to be inspected visually on an annual basis and climbing or bucket truck inspections to be conducted on a ten-year cycle. As explained in the SPP, the performance of FPL's transmission facilities during recent storm events indicates FPL's transmission inspection program has contributed to the overall storm resiliency of the transmission system and provided savings in storm restoration costs. FPL expects to inspect approximately 68,000 structures annually during Ihe 2020-2029 SPP period. The total estimated costs for the Structures/Other Equipment Inspections - Transmission Program for the ten-year period of 2020-2029 is $500 million with an annual average cost of approximately $50 million, which is consistent with historical costs for the lNote, the2020-2029 program costs shown above are projected costs estimated as of the time of this filing. Subsequent projected and actual costs could vary by as much as l0%o to l5Yo. The annual projected costs, actual/estimated costs, actuals costs, and true-up ofactual costs to be included in FPL's Storm Protection Plan Cost Recovery Clause will all be addressed in subsequent and separate Storm Protection Plan Cost Recovery Clause filings pursuant to Rule 25-6.031., F.A.C. The Commission has opened Docket No. 20200092-EIIo address Storm Protection Plan Cost Recovery Clause petitions to be filed the third quarter of 2020. 9 1 2 aJ 4 5 6 7 8 9 10 11 12 13 l4 15 t6 T7 18 t9 20 2l 22 23 o. A. existing transmission inspection program.2 A detailed description of the Structures/Other Equipment Inspections - Transmission Program is provided in Section IV(B) of FPL's SPP. Please provide a summary of FPL's Feeder Hardening (EWL) - Distribution Program included in the SPP. The Feeder Hardening (EWL) - Distribution Program included in the SPP is a continuation of FPL's existing Commission-approved approach to harden existing feeders and certain critical distribution poles, as well as FPL's initiative to design and construct new pole lines and major planned work to meet the National Electrical Safety Code's ("NESC") extreme wind loading criteria ("EWL"). During the period 2006-2019, FPL hardened over 1,300 existing feeders, the vast majority being Critical Infrastructure Function ("ClF") feeders (i.e., feeders that serve hospitals, 911 centers, police and fire stations, water treatment facilities, county emergency operation centers) and Community Project feeders (i.e., feeders that serve other key community needs like gas stations, grocery stores and pharmacies) throughout FPL's service teritory. Additional feeders were hardened as a result of FPL's Priority Feeder Initiative, a reliability program that targeted feeders experiencing the highest number of interruptions and/or customers intenupted. FPL also applied EWL to the design and construction of new pole lines and major planned work, including pole line extensions and relocations and certain pole replacements. As provided in previous FPL Annual Reliability Report filings and three-year Storm Hardening Plan filings (per Rule 25-6.0342, F.A.C.), hardened feeders perform better than non-hardened feeders, both in day-to-day reliability performance and during severe storms. Additionally, upon review of the electric utilities' storm hardening and storm preparedness programs, the Commission found that for Hurricane Irma, hardened feeders performed significantly better than 2,See footnote 1 10 1 2 aJ 4 5 6 7 8 9 10 11 l2 l3 14 15 t6 l7 18 l9 20 2l 22 a. A non-hardened feeders with respect to outage rates, pole failures, and CMH required to restore power FPL expects to harden approximately 250-350 feeders annually, with 100% of FPL's feeders expected to be hardened or underground by year-end 2024 and with the final costs of the program to be incurred in2025. The total estimated costs for the Feeder Hardening (EWL) - Distribution Program for the period of 2020-2025 is $3,206 million with an annual average cost of approximately $534 million, which is consistent with historical costs for the existing distribution feeder hardening program.a A detailed description of the Feeder Hardening (EM-) - Distribution Program is provided in Section IV(C) of FPL's SPP. Please provide a summary of FPL's Lateral Hardening (Undergrounding) - Distribution Program included in the SPP. The Lateral Hardening (Undergrounding) - Distribution Program included in the SPP is a continuation and expansion ofFPL's existing three-year Storm Secure Underground Program Pilot ("SSUP Pilot") implemented in 2018. The SSUP Pilot is a program that targets certain overhead laterals that were impacted by recent storms and have a history of vegetation-related outages and other reliability issues for conversion from overhead to underground. As part of its proposed SPP, FPL will complete its existingthree-year SSIIP Pilot in2020 and expandthe application of the SSUP during 2021-2029 to the implementation of the system-wide Lateral Hardening (Undergrounding) - Distribution Program to provide the benefits of underground lateral hardening throughout its system. As explained in the SPP, the proposal to continue and expand the application of the SSUP under the SPP is based on the performance of the 3 See Review of Florida's Electric Utility Hurricane Preparedness and Restoration Actions 2018, Docket No. 2017 0215 -EU (J uly 24, 201 8). 4 See footnote 1. 11 1 2 aJ 4 5 6 7 8 9 10 11 t2 13 t4 15 I6 I7 18 t9 20 2t 22 23 24 a. A. underground facilities as compared to overhead facilities and the extensive damage to the overhead facilities caused by vegetation during Hurricanes Matthew and Irma. By the end of 2020, the third and final year of the SSUP Pilot, FPL expects to have converted a total of 220-230laterals from overhead to underground, which is consistent with the SSUP Pilot plan most recently approved in July 20L9 in FPL's most recent storm hardening plan docket, Docket No. 20180144-EI. After completing the SSTIP Pilot in 2020,FPL estimates that it will convert approximately 300-700 laterals annually in202l-2023 and approximately 800-900 laterals annually in2024-2029. The total estimated costs for the Lateral Hardening (Undergrounding) - Distribution Program for the ten-year period of 2020-2029 is $5,101 million with an annual average cost of approximately $510 million.5 A detailed description of the Lateral Hardening (Undergrounding) - Distribution Program is provided in Section IV(D) of FPL's SPP. Please provide a summary of FPL's Wood Structures Hardening (Replacing) - Transmission Program included in the SPP. The Wood Structure Hardening (Replacing) - Transmission Program included in the SPP is a continuation of FPL's existing transmission hardening program to replace all wood transmission structures with steel or concrete structures. As explained in the SPP, the performance of FPL's transmission facilities during recent storm events indicates FPL's transmission hardening program has contributed to the overall storm resiliency ofthe transmission system and provided savings in storm restoration costs. As of year-end 2019, 960A of FPL's transmission structures, system-wide, were steel or concrete, with less than2,900 (or 4%:o) wood structures remaining to be replaced. FPL expects 5 See footnote I t2 1 2 3 4 5 6 7 8 9 10 11 12 13 t4 15 t6 t7 18 19 20 2l 22 23 24 a. A. to replace the 2,900 wood transmission structures remaining on its system by year-end 2022. The total estimated costs for the Wood Structure Hardening (Replacing) - Transmission Program for the period of 2020-2022 is $118 million with an annual average cost of approximately $39 million, which is a decrease from the historical costs for the existing transmission hardening program.6 A detailed description of the Wood Structure Hardening (Replacing) - Transmission Program is provided in Section IV(E) of FPL's SPP. Please provide a summary of FPL's Substation Storm Surge/Flood Mitigation Program. The Substation Storm Surge/Flood Mitigation Program is the only new storm hardening program that FPL proposes to implement as part of its SPP. The Storm Surge/Flood Mitigation - Transmission and Distribution Program will implement measures to protect T&D substations and equipment that are susceptible to storm surge or flooding due to extreme weather events. Historically, several FPL distribution and transmission substations have been impacted by storm surge and/or flooding as a result of extreme weather conditions. While proactively de- energizing those substations impacted by storm surge and/or flooding helps reduce damage to substation equipment, FPL is still required to implement both temporary flood mitigation efforts and repairs to substation facilities and equipment that become flooded as a result of extreme weather conditions. Further, flooding and the need to proactively de-energize substations located in areas susceptible to storm surge and flooding can result in significant customer outages. To prevent/mitigate future substation equipment damage and customer outages due to storm surge and flooding, FPL's new Storm Surge/Flood Mitigation Program will raise the equipment at certain substations above the flood level and construct flood protection walls around other substations to prevent/mitigate future damage due to storm surge and flooding. 6,See footnote I t3 1 2 J 4 5 6 7 8 9 10 11 12 13 l4 15 16 l7 18 t9 20 2l 22 23 24 a. A. At this time, FPL has identified between 8-10 substations where it initially plans to implement storm surge/flood mitigation measures over the next three years (2020-2022). The total estimated costs for the new Substation Storm Surge/Flood Mitigation over this three-year period is approximately $23 million with an annual average cost of approximately $8 million per year.1 A detailed description of the Storm Surge/Flood Mitigation - Transmission and Distribution Program is provided in Section IV(F) of FPL's SPP. Please provide a summary of FPL's Vegetation Management - Distribution Program included in the SPP. The Vegetation Management - Distribution Program included in the SPP is a continuation of FPL's existing, Commission-approved distribution vegetation management program. FPL's cunently-approved distribution vegetation program, includes the following system-wide vegetation management activities: three-year cycle for feeders; mid-year cycle targeted trimming for certain feeders; six-year cycle for laterals; and continued education of customers through its Right Tree, Right Place initiative. In approving FPL's current distribution vegetation management cycles, the Commission indicated that FPL's distribution vegetation management cycles were cost-effective and would provide savings to customers. Additionally, as explained in the SPP, recent storm events demonstrate that FPL's existing distribution vegetation management program has contributed to the overall improvement in the resiliency of distribution system during storms, resulting in reductions in storm damage to poles, days to restore, and storm restoration costs. Under the SPP, FPL plans to trim, on average, approximately 15,200 miles annually, including approximately 11,400 miles for feeders (cycle and mid-cycle) and 3,800 miles for laterals, which is consistent with the historic miles trimmed annually. The total estimated costs for the 7 See footnote I I4 1 2 J 4 5 6 7 8 9 10 1i t2 13 t4 15 l6 t7 18 19 20 2T 22 L) 24 a. A. Vegetation Management - Distribution Program for the ten-year period of 2020-2029 is $596 million with an annual average cost of approximately $60 million, which is consistent with historical costs for the existing distribution vegetation management program.8 A detailed description of the Vegetation Management- Distribution Program is provided in Section IV(G) of FPL's SPP. Please provide a summary of FPL's Vegetation Management - Transmission Program included in the SPP. The Vegetation Management - Transmission Program included in the SPP is a continuation of FPL's existing transmission vegetation management program. The key elements of FPL's transmission vegetation management program are to inspect the transmission right-of-ways, document vegetation inspection results and findings, prescribe a work plan, and execute the work plan. In its SPP, FPL will continue its current transmission vegetation management plan, which includes visual and aerial inspections of all transmission line corridors, Light Detection and Ranging ("LiDAR") inspections of North American Electric Reliability Corporation's ("NERC") transmission line corridors, developing and executing annual work plans to address identified vegetation conditions, and identiffing and addressing priority and hazard tree conditions prior to and during storm season. As explained in the SPP, the execution of FPL's transmission vegetation management plan has been and is a significant factor in mitigating damage to transmission facilities and avoiding transmission-related outages. Under the SPP, FPL plans to inspect and maintain, on average, approximately 7,000 miles of transmission lines annually, including approximately 4,300 miles for NERC transmission line corridors and 2,700 miles for non-NERC transmission line corridors. This is comparable to the approximately 7,000 miles inspected and maintained annually, on average for 2011-2019. 8 See footnote 1 15 1 2 aJ 4 5 6 7 8 9 10 11 12 13 l4 15 I6 I7 18 t9 20 2I 22 23 24 a. A The total estimated costs for the Vegetation Management - Transmission Program for the ten- year period of 2020-2029 is $96 million with an annual average cost of approximately $10 million, which is consistent with historical costs for the existing transmission vegetation management program.e A detailed description of the Vegetation Management - Transmission Program is provided in Section IV(H) of FPL's SPP. IV. ADDITIONALDETAILS FORFIRST THREE YEARS OF THE SPP Has FPL provided additional project-level details and information for the first year Q020) of the SPP? Yes. The following additional information required by Rule 25-6.030(3Xe)(1), F.A.C., for the firstyear(2020)oftheSPPisprovidedinAppendixEtoFPL'sSPP: (1)theactualorestimated construction start and completion dates; (2) a description of the affected existing facilities, including number and type(s) of customers served, historic service reliability performance during extreme weather conditions, and how this data was used to prioritize the proposed storm protection project; and (3) a cost estimate including capital and operating expenses. Additionally, a description ofthe criteria used to select and prioritize proposed storm protection projects is included in the description ofeach proposed SPP program provided in Section IV of the SPP. Does FPL's SPP provide sufficient detail to develop preliminary estimates of the rate impacts for the second and third years (2021-2022) of the SPP? Yes. As required by Rule 25-6.030(3Xe)(2), F.A.C., FPL has provided the estimated number and costs of projects under each specific SPP program, which information was used to develop the estimated rate impacts for2027-2022. This information is provided in Appendix C to FPL's SPP. a. A. e See footnote I t6 1 2 3 4 5 6 7 8 9 10 11 l2 13 14 15 l6 l7 18 t9 20 2l 22 23 24 o. a. A. Did FPL provide a description of its vegetation management activities under the SPP for the first three years (2020-2022) of the SPP? Yes. The following additional information required by Rule 25-6.030(3X0, F.A.C., for the first three years (2020-2022) of the vegetation management activities under the SPP is provided in Sections IV(G) and IV(H) of FPL's SPP and Appendix C to FPL's SPP: the projected frequency (trim cycle); the projected miles of affected transmission and distribution overhead facilities; and the estimated annual labor and equipment costs for both utility and contractor personnel. Additionally, descriptions of how the vegetation management activities will reduce outage times and restoration costs due to extreme weather conditions are provided in Sections IV(G) and IV(H) of FPL's SPP. Has FPL provided the annual jurisdictional revenue requirements for the 2020-2029 SPP? Yes. Pursuant to Rule 25-6.030(3Xg), F.A.C., FPL has provided the estimated annual jurisdictional revenue requirements in Section VI of the SPP. While FPL has provided estimated costs by program as of the time of this filing and associated total revenue requirements in its SPP, consistent with the requirements of Rule 25-6.030, F.A.C., subsequent projected and actual program costs submitted for cost recovery through the Storm Protection Plan Cost Recovery Clause (per Rule 25-6.031, F.A.C.) could vary by as much as 10-15o/o, which variations would also impact the associated estimated revenue requirements and rate impacts. The projected costs, actuall estimated costs, actuals costs, and true-up ofactual costs to be included in FPL's Storm Protection Plan Cost Recovery Clause will all be addressed in subsequent filings in separate Storm Protection Plan Cost Recovery Clause dockets pursuant to Rule 25-6.03 I,F.A.C. ro Has FPL estimated the rate impacts for each of the first three years of the SPP? o. A. 10 The Commission has opened Docket No. 20200092-EIto address Storm Protection Plan Cost Recovery Clause petitions to be filed the third quarter of 2020 . 17 1A. 2 aJ 4 5 6 7 8 9 10 11 t2 13 a. l4 15 16 17 A. 18 19 20 2I 22 23 24 FPL anticipates the programs included in the SPP will have zero bill impacts on customer bills during the first year of the SPP and only minimal bill increases for years two and three of the SPP. An estimate of the hypothetical overall rate impacts for the first three years of the SPP (2020-2022) based on the total program costs reflected in this filing, without regard for the fact that FPL remains under a general base rate freeze pursuant to a Commission-approved settlement agreement through December 3 1, 2021 , arc provided in Section VII of the SPP. The projected costs, actual/estimated costs, actuals costs, and true-up ofactual costs to be included in FPL's Storm Protection Plan Cost Recovery Clause will all be addressed in subsequent filings in separate storm protection plan cost recovery clause dockets pursuant to Rule 25- 6.031, F.A.C.11 V. CONCLUSION Does FPL believe that its SPP will achieve the legislative objectives of Section 366.96, F.S., to reduce costs and outage times associated with extreme weather events by promoting the overhead hardening of electrical transmission and distribution facilities, the undergrounding of certain electrical distribution linesn and vegetation management? Yes. While no electrical system can be made completely resistant to the impacts of hunicanes and other extreme weather conditions, FPL's SPP provides a systematic approach to achieve the legislative objectives of reducing restoration costs and outage times associated with extreme weather events and enhancing reliability. As explained above and in further detail in the SPP, FPL's SPP programs are largely a continuation and expansion of FPL's already successful and ongoing storm hardening and storm preparedness programs previously approved by the Commission, as well as a new storm hardening program to protect T&D substations and equipment from storm surge and flooding due to extreme weather events. These SPP programs lrSee footnote 10. 18 1 2 aJ 4 5 6 7 a. A. will continue to provide increased T&D infrastructure resiliency, reduced restoration time, and reduced restoration costs when FPL's system is impacted by exheme weather events. FPL's SPP appropriately and effectively maintains and builds on FPL's commitment to provide safe and reliable electric service to customers, and to meet the needs and expectations of our customers, today and for many years to come. Does this conclude your direct testimony? Yes. l9 Docket No. 2O200O71-E\ FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1, Page 1 of 48 Florida Power & Light Gompany Storm Protection Plan 2020-2029 (Rule 25-6.030, F.A.C.) Docket No. 20200071-El April 10, 2020 TABLE OF GONTENTS l. Executive Summary.. il The 2020-2029 SPP will Strengthen FPL's Infrastructure to Withstand Extreme Weather Conditions and will Reduce Restoration Costs and Outage Times.... Description of Service Area and T&D Facilities .......... lV. 2020-2029 SPP Programs A. Pole lnspections - Distribution Pro9ram............. 1. Description of the Program and Benefits............ 2. Actual/Estimated Start and Completion Dates ... B. 3. CostEstimates.......... 4. Comparison of Costs and 8enefits............. 5. Criteria used to Select and Prioritize the Program Structures/Other Equipment Inspections - Transmission Program 1. Description of the Program and Benefits............. 2. Actual/Estimated Start and Completion Dates 3. CostEstimates.......... 4. Comparison of Costs and Benefits 5. Criteria used to Select and Prioritize the Program C. Feeder Hardening (EWL) - Distribution Program ............. 1. Description of the Program and 8enefits............. 2. Actual/Estimated Start and Completion Dates D 3. CostEstimates.......... 4. Comparison of Costs and 8enefits............. 5. Criteria used to Select and Prioritize the Program ..... Lateral Hardening (Undergrounding) - Distribution Program L Description of the Program and 8enefits.................... 2. Actual/Estimated Start and Completion Dates 3. CostEstimates.......... 4. Comparison of Costs and 8enefits............. 5. Criteria used to Select and Prioritize the Program ..... Docket No. 20200071-El F PL's 2O20-2O29 Storm Protection Plan Exhibit MJ-1, Page 2 of 48 ..3 ..6 ..7 ..7 ..7 10 10 11 11 '''.,.,.12 ........12 ........14 .'.',',' 14 ........ 1 5 ........15 ........ 1 6 ........16 ........20 ,,.,,.',21 ........21 ........21 ........22 ........22 ........25 ,........25 ',.',,'.'25 ,..,.,.'.26 1 Docket No. 2O200071-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1, Page 3 of 48 E. Wood Structures Hardening (Replacing) - Transmission Program 1. Description of the Program and 8enefits.............. 2. Actual/Estimated Staft and Completion Dates ..... F 5. Criteria used to Select and Prioritize Projects G. Vegetation Management - Distribution Program L Description of the Program and Benefits. 2 3 4 5 H 3 4 5. Criteria used to Select and Prioritize the Programs.. Detailed lnformation on the First Three Years of the SPP (2020- 2022) A. Detailed Description for the First Year of the SPP (2020)... B. Detailed Description of the Second and Third Years of the sPP (2021-2022) C. Detailed Description of the Vegetation Management Activities for the First Three Years of the SPP (2020-2022) Estimate of Annual Jurisdictional Revenue Requirements for the 3. CostEstimates......... 4. Comparison of Costs and 8enefits............. 5. Criteria used to Select and Prioritize the Program Substation Storm Surge/Flood Mitigation Program 1. Description of the Program and 8enefits.............. 2. Actual/Estimated Start and Completion Dates ..... 3. CostEstimates......... 4. Comparison of Costs and 8enefits............. 26 26 28 28 29 29 ..30 ..30 Actual/Estimated Start and Completion Dates ...... Cost Estimates ......... Comparison of Costs and Benefits............. Criteria Used to Select and Prioritize the Program Vegetation Management - Transmission Program 1. Description of the Program and 8enefits............. 2. Actual/Estimated Start and Completion Dates Cost Estimates ......... Comparison of Costs and Benefits ...32 ...32 ...35 ...35 31 31 31 32 36 36 37 37 39 39 40 40 V 41 41 ..41 ..41 42 vl. 2020-2029 SPP ii Vll. Estimated Rate lmpacts for First Three Years of the SPP (2020- 2022) Conclusion...... Docket No. 2O200071-El FPL's 2O20-2029 Storm Protection Plan Exhibit MJ-1, Page 4 of 48 FPL's Third Supplemental Response to Staffs First Data Request No. 29 ("Third Supplemental Amended") in Docket No. 2017021s-El FPL Management Areas and Customers Served FPL 2020-2029 SPP Estimated Annual Costs and Estimated Number and Costs of Projects FPL Distribution Design Guidelines Project Level Detail for First Year of the SPP (2020) 43 44vlil Appendices: Appendix A - Appendix B - Appendix C - Appendix D - Appendix E - iii Docket No. 2O2O0071-E\ FPL'9 2020-2029 Storm Protection Plan Exhibit MJ-'l , Page 5 of 48 Florida Power & Light Gompany 2020-2029 Storm Protection Plan L Executive Summary Pursuant to Section 366.96, Florida Statutes ("F.S."), and Rule 25-6.030, Florida Administrative Code ("F.A.C.'), Florida Power & Light Company ("FPL') submits its Storm Protection PIan for the ten (10) year period 2020-2029 (hereinafter, the'SPP"). As explained herein, the SPP is largely a continuation of FPL's successful storm hardening and storm preparedness programs previously approved by the Florida Public Service Commission ("Commission") over the last fourteen years. FPL anticipates the programs included in the SPP will have zero bill impacts on customer bills during the first year of the SPP and only minimal bill increases for years two and three of the SPP.1 Since 2006, FPL has been implementing Commission-approved programs to strengthen its transmission and distribution ("T&D") infrastructure. These programs include multiple storm hardening and storm preparedness programs, such as feeder hardening, replacing wood transmission structures, vegetation management, and pole inspections. As demonstrated by recent storm events, these ongoing storm hardening and storm preparedness programs have resulted in FPL's T&D electricalgrid becoming more storm resilient, experiencing less infrastructure damage and reduced restoration times, as compared to non-hardened facilities. These programs have also provided significant improvements in dayto-day reliability. The success of FPL's storm hardening and storm preparedness programs has been achieved through the development and implementation of FPL's forward-looking storm hardening, grid modernization, and reliability initiatives and investments, combined with the use of cutting-edge technology and strong employee commitment. Under the SPP, FPL remains committed to continue these successful and industry-leading programs to 1 The recovery of the costs associated with the SPP, as well as the actual and projected costs to be included in FPL's Storm Protection Plan Cost Recovery Clause, will be addressed in a subsequent and separate Storm Protection Plan Cost Recovery Clause docket pursuant to Rule 25-6.031, F.A.C. 1 Docket No. 20200071-El FPL's 2020-2O29 Storm Protection Plan Exhibit MJ-1, Page 6 of 48 further strengthen its T&D infrastructure, mitigate restoration costs and outage times, continue to provide safe and reliable electric service to customers, and meet future increasing needs and expectations. As stated previously, FPL's SPP is, in large pad, a continuation and expansion of its previously approved storm hardening and storm preparedness programs, and includes the following SPP programs: . Pole lnspections - Distribution Program . Structures/Other Equipment lnspections - Transmission Program . Feeder Hardening (EWL) - Distribution Program . Lateral Hardening (Undergrounding) - Distribution Program o Wood Structures Hardening (Replacing) - Transmission Program . Vegetation Management - Distribution Program . Vegetation Management - Transmission Program ln addition, FPL will implement a new Substation Storm Surge/Flood Mitigation Program to harden certain targeted substations that, based on prior experience, are susceptible to storm surge or flooding during extreme weather events. With the exception of the new storm surgeiflood mitigation program, the majority of the programs included in the SPP have been in place since 2007. As demonstrated by recent storm events, these programs have been successful in reducing restoration costs and outage times following major storms, as well as improving day-to-day reliability. FPL submits that continuing these previously approved storm hardening and storm preparedness programs in the SPP, together with the new storm surge/flood mitigation substation program, is appropriate and necessary to address the mandates set forth in Section 366.96, F.S., and Rule 25-6.030, F.A.C., as well as the expectations of FPL's customers and other stakeholders for increased storm resiliency and will result in fewer 2 Docket No. 20200071-El FPL's 2o2o-2029 Storm Protection Plan Exhibit MJ-1 , Page 7 of 48 outages, reduced restoration costs, and prompt service restoration.2 The SPP will continue and expand the benefits of hardening, including improved day-to-day reliability, to all customers throughout FPL's system. The following sections provide information and details on FPL's SPP as required by and in compliance with Rule 25-6.030, F.A.C. For the reasons explained below, FPL submits that implementing the SPP is necessary and appropriate to achieve the goals and requirements expressed by the Florida Legislature in Section 366.96, F.S., to reduce restoration costs and outage times associated with extreme weather events and improve overall service reliability to customers and the State of Florida by promoting the overhead hardening of electrical transmission and distribution facilities, the undergrounding of certain electrical distribution lines, and vegetation management. ll. The 2020-2029 SPP will Strenqthen FPL's lnfrastructure to Withstand Extreme Weather Gonditions and will Reduce Restoration Gosts and Outaqe Times Pursuant to Rule 25-6.030(3)(a), F.A.C., this section provides an overview of how the SPP will strengthen FPL's electric utility infrastructure to withstand extreme weather conditions by promoting the overhead hardening of electrical transmission and distribution facilities, the undergrounding of certain electrical distribution lines, and vegetation management. Consistent with Rule 25-6.030(3Xb), F.A.C., this section also provides a summary of how the SPP is expected to further reduce restoration costs and outage times associated with extreme weather conditions and, therefore, improve overall service reliability. To date, significant progress has been made toward strengthening FPL's infrastructure. For example, at year-end 2019, approximately 54o/o of FPL's distribution feeders have been either hardened or placed underground, and approximately 960/o of FPL's transmission structures are either steel or concrete. Also, since 2006, FPL has completed multiple system-wide cycles of distribution and transmission pole inspections and 2 As explained below, a couple of the programs included in the SPP are expected to be completed within the next several years. 3 Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page B of 48 vegetation management. Within the next few years several significant milestones are also expected to be reached, including replacement of all wood transmission structures with steel or concrete structures by year-end 2022 and for all feeders to be hardened or placed underground by year-end 2024. FPL also implemented a three-yearStorm Secure Underground Program Pilot in 2018 ('SSUP Pilot") that converts certain targeted overhead laterals - laterals that have been impacted by recent storms and have a history of vegetation-related outages and other reliability issues - to underground laterals. At year-en d 2020, the final year of the SSUP Pilot, FPL expects 220-230 of these targeted laterals to be converted from overhead to underground. ln addition, FPL's Design Guidelines incorporate and apply extreme wind loading ("EWL') criteria to the design and construction of all new overhead pole lines and major planned work, including pole line extensions, relocations, and certain pole replacements. FPL's SPP programs have already demonstrated that they have and will continue to provide increased T&D infrastructure resiliency, reduced restoration time, and reduced restoration costs when FPL's system is impacted by severe weather events. ln FPL's Third Supplemental Response to Staff's First Data Request No. 29 ("Third Supplemental Amended") in Docket No. 20170215-E1,3 FPL prepared and submitted an analysis of Hurricanes Matthew and lrma that indicated the restoration construction man-hours ("CMH"), days to restore, and storm restoration costs for these storms would have been significantly higher without FPL's storm hardening programs. Below is a summary of the results of FPL's analysis: Without Hardeni Hurricane Matthew Hurricane lrma 3 The Commission opened Docket No. 20170215-El to review electric utility preparedness and restoration actions and to identify potential areas where infrastructure damage, outages, and recovery time for customers could be minimized in the future. Additional CMH (%)93,000 (36%)483,000 (40o/o) Additionaldays to restore (%)2 (50o/o)4 (40o/o) Additional restoration costs ($millions) (%) $105 (36%)$4e6 (40%) 4 Docket No. 20200071-El FPL'9 2O2O-2O29 Storm Protection Plan Exhibit MJ-1, Page I of 48 A copy of FPL's Third Supplemental Amended Response in Docket No.20170215-El, including the analysis referenced above, is provided in Appendix A. Based on a 40-year net present value analysis, the savings achieved from storm hardening would equate to $653 million (for a storm occurring once every three years) and $406 million (for a storm occurring once every five years) for a storm similar to Hurricane Matthew and $3.1 billion (for a storm occurring once every three years) and $1.9 billion (for a storm occurring once every five years) for a storm similar to Hurricane lrma. These programs have also provided increased levels of day{o-day reliability. For example, FPL has previously submitted reports to the Commission that show hardened feeders have pedormed approximately 40% better (i.e., fewer outages) on a day-to-day basis than non-hardened feeders.a Further details on the benefits of the SPP programs are provided throughout the remaining sections of this SPP. Although FPL's storm preparedness and hardening programs to date have produced a more storm resilient and reliable T&D electrical grid, FPL must continue its efforts to storm-harden its T&D electrical grid consistent with the findings, conclusions, and objectives of the Florida Legislature in Section 366.96, F.S. lndeed, Florida remains the most hurricane-prone state in the nation and, with the significant coast-line exposure of FPL's system and the fact that the vast majority of FPL's customers live within 20 miles of the coast, a robust storm protection plan is critical to maintaining and improving grid resiliency and storm restoration. Safe and reliable electric service is essential to the life, health, and safety of the public, and has become a critical component of modern life. lmportantly, as evidenced by the significant numbers of Florida's workforce that are working remotely during the COVID- 19 pandemic, today's digital society, economy, national security, and daily life are more dependent on reliable electric service than ever before. While no electrical system can be made completely resistant to the impacts of hurricanes and other extreme weather conditions, the programs included in FPL's SPP have already demonstrated that they 5 a See Appendix A. Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-'l , Page 10 of 48 mitigate and will continue to mitigate the impacts of future storms.s While FPL's nation- leading initiatives have made significant progress toward strengthening FPL's infrastructure, continuing these previously approved storm hardening and storm preparedness programs in the SPP, together with the new storm surge/flood mitigation substation program, is appropriate and crucial to further mitigate restoration costs and outage times, continue to provide safe and reliable electric service to customers, and meet current and future needs and expectations of customers, today and for many years to come. lll. Description of Service Area and T&D Facilities Pursuant to Rule 25-6.030(3)(c), F.A.C., this section provides a description of FPL's service area, including areas prioritized for enhancement, if any, and any areas where FPL has determined that enhancement of its existing T&D facilities would not be feasible, reasonable, or practical at this time. Today, FPL's service territory consists of approximately 28,000 square miles. To serve its more than 5 million customers, FPL has constructed a T&D electric grid that contains approximately 75,000 miles of electrical lines, including: . Approximately 42,000 miles of overhead distribution lines; . Approximately 26,000 miles of underground distribution lines; . Approximately 7,000 miles of high-voltage transmission lines; . Approximately 1.2 million distribution poles; and . Approximately 68,000 transmission structures. FPL's service territory is divided into sixteen (16) distribution management areas. A map depicting FPL's service territory and distribution management areas (with the number of customers served within each management area) is provided in Appendix B. At this time, FPL has not identified any areas of its service territory where its SPP programs would not be feasible, reasonable, or practical. While all of FPL's SPP 5 lt is important to note that despite the implementation of these storm hardening and storm preparedness programs, outages will still occur when severe weather events impact Florida. 6 Docket No. 20200071-El FPL's 2020-2029 Storm Protection PIan Exhibit MJ-1 , Page 11 of 4B programs are currently system-wide initiatives, annual activities are prioritized based on ceftain factors such as last inspection date, last trim date, reliability performance, and efficient resource utilization.6 At this time, there is no area specifically targeted or prioritized for enhanced performance based on its geographical location. IV. 2020-2029 SPP Proqrams Pursuant to Rule 25-6.030(3XcXd), F.A.C., this section provides a description of each program included in FPL's SPP. lf applicable, each program description below includes: (1) a description of how each program is designed to enhance FPL's existing transmission and distribution facilities including an estimate of the resulting reduction in outage times and restoration costs due to extreme weather conditions; (2) identification of the actual or estimated start and completion dates of the program; (3) a cost estimate including capital and operating expenses; (4) a comparison of the costs and the benefits; and (5) a description of the criteria used to select and prioritize storm protection programs. A. Pole lnspections - Distribution Program 1. Description of the Proqram and Benefits The Pole lnspection - Distribution Program included in the SPP is a continuation of FPL's existing Commission-approved distribution pole inspection program. Below is an overview of FPL's existing distribution inspection program and its associated benefits. a. Overview of the Distribution Pole lnspection Proqram ln response to the 2004-2005 storm seasons and, in particular, the "large number of poles throughout Florida that required replacement," the Commission required investor-owned utilities ("lOUs") to implement an eight-year pole inspection cycle for allwood distribution poles.T FPL's plan was approved in September 20068 and modified in January 2007.s 6 The criteria and factors used to select and prioritize projects within each SPP program are described below. 7 See Order No. PSC-06-0144-PAA-EI. 8 See Order No. PSC-06-0778-PAA-EU. e See Order No. PSC-07-0078-EU. 7 Docket No. 2O200071-El FPL's 2O20-2029 Storm Protection Plan Exhibit MJ-1, Page 12 of 48 Subsequently, FPL expanded its distribution pole inspection plan to also include concrete poles. FPL's eight-year pole inspection cycle for all distribution poles targets approximately 1/8 of the system annually (the actual number of poles inspected can vary somewhat from year to year). To ensure inspection coverage throughout its service territory, FPL established nine (9) inspection zones (based on FPL's management areas and pole population) and annually performs pole inspections of approximately 1/8 of the distribution poles in each of these zones, as well as any necessary remediation as a result of such inspections. FPL utilizes Osmose Utilities Services, lnc. ("Osmose"), an industry-leading pole inspection contractor, to perform the system-wide inspection of its distribution poles. FPL's strength and loading calculations for its distribution poles and pole inspections are based on the National Electrical Safety Code's ("NESC') Grade B construction standard, as outlined by Table 261-1A section 26 of the NESC. Osmose utilizes mobile computing technology to record inspection data and to calculate strength and loading. The loading calculation, span lengths, attachment heights, and wire sizes are recorded in the mobile computer to determine whether the remaining pole strength capacity meets or exceeds NESC requirements. This data is then transferred to FPL's Geographic lnformation System ("GlS'). Pole locations inspected by Osmose are also randomly audited by FPL to verify that inspections are completed and meet inspection standards. lnspections include a visual inspection of all distribution poles from the ground-line to the top of the pole to identify visual defects (e.9., woodpecker holes, split tops, decayed tops, cracks, etc.). lf, due to the severity of the defects, the poles are not suitable for continued service, the poles are designated for replacement. Wood poles that pass the above-ground visual inspection are excavated to a depth of 18" (where applicable), and sounded and bored to determine the internal condition of the pole. Poles encased in concrete or asphalt are not excavated, but are sounded and bored to determine their internal condition using a standard industry-accepted inspection process called "Shell Boring." All suitable wood poles receive external and/or internal preservative treatment or, if not suitable, are replaced. Strength calculations are also 8 Docket No. 2O2OO071-E\ FPL's 2020-2029 Storm Protection PIan Exhibit MJ-1, Page 13 of 48 performed on wood poles to determine compliance with NESC requirements. The poles that are not suitable for continued service are designated for replacement or remediation. ln 2014, FPL obtained Commission approval to: (1) exempt the loading assessment during the second eighlyear cycle for any pole that had less than 80% of full load during FPL's initialeight-year cycle; and (2) excavate Chromium CopperArsenate ("CCA") poles every 28 years (extended from 16 years originally approved by the Commission).10 To ensure that these exceptions to the standard eight-year inspection cycle do not compromise existing safety and storm hardening programs, FPL conducts annualtesting on 1o/o of the exempted poles. b. Benefits of the Distribution Pole lnspection Proqram The Commission has previously found that "efforts to maintain system components can reduce the impact of hurricanes and tropical storms upon utilities' transmission and distribution systems," and noted that an "obvious key component in electric infrastructure is the transmission and distribution poles.'11 The Commission has also previously identified multiple benefits of and reasons for justifying pole inspections cycles for electric utilities, including, but no limited to: the likelihood of increased hurricane activity in the future; the high probability for equipment damage if a pole fails during a storm; the likelihood that failure of one pole often causes other poles to fail; the fact that deteriorated poles are more prone to fail when exposed to high winds; the fact that Florida electric utilities replaced nearly 32,000 poles during the 2004 storm restoration efforts; and the fact that restoration times increase significantly when a large number of poles fail, which limits the electric utilities' ability to respond quickly to widespread outages.l2 ln addition to the benefits discussed above that underlie the creation of the Commission's mandated pole inspection requirements, recent storm events indicate that FPL's distribution pole inspection program has contributed to the overall improvement in distribution pole performance during storms, resulting in reductions in storm damage to poles, days to restore, and storm restoration costs. The table below compares distribution 10 See Order No. PSC-14-0594-PAA-El 11 See Order No. PSC-06-0144-PAA-E. 12 See id. I Docket No. 202OO071-EI F PL's 2O20-2029 Storm Protection Plan Exhibit MJ-1 , Page '14 of 48 pole performance for Hurricane Wilma, which occurred in 2005 before FPL implemented its current distribution pole inspection program, and Hurricane lrma, which occurred in 2017 after FPL implemented its current distribution pole inspection program: Hurricane Wilma Hurricane lrma Hurricane Strength (Category)3 4 Customer Outages (Millions)3.2 4.4 Distribution Poles Replaced >12,400 <2,90013 Total Days to Restore 18 10 Average Days to Restore 5.4 2.1 FPL's Commission-approved distribution pole inspection program has facilitated the replacement and/or strengthening of over 140,000 distribution poles since it was first implemented in 2006 and has directly improved and will continue to improve the overall health and storm resiliency of its distribution pole population. 2. Actual/Estimated Start and Completion Dates The SPP will continue FPL's ongoing Commission-approved distribution pole inspection program described above. With approximately 1.2 million distribution poles as of year- end 2019, FPL expects to inspect approximately 150,000 poles annually (spread throughout its nine inspection zones) during the 2020-2029 SPP period. 3. Cost Estimates Estimated/actual annual distribution pole inspection costs are a function of the number of inspections estimated to be/actually completed and the number of poles estimated to be/actually remediated/replaced as a result of the annual inspections. Although costs to inspect the poles are operating expenses, the vast majority of pole inspection program costs are capital costs resulting from remediation/replacement of poles that fail inspection. 13 Approximately 99% of distribution poles replaced after Hurricane lrma were non-hardened poles. 10 Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page '15 of 48 The table below provides a comparison of the 2017-2019 total actual distribution pole inspection costs with the 2020-2022 (first three years of the SPP) total estimated distribution pole inspection costs and the 2020-2029 total estimated distribution pole inspection costs: Total Program Costs Annual Average Program illions Gosts illions Further details regarding SPP estimated distribution pole inspection costs, including estimated annual capitalexpenditures and operating expenses, are provided in Appendix c.14 4. Comparison of Costs and Benefits As provided in Section (lV)(A)(3) above, during 2020-2029, total costs for FPL's Pole lnspection - Distribution Program are expected to average approximately $61 million per year. Benefits associated with FPL's Pole lnspection - Distribution Program, discussed in Sections ll and |V(AX1)(b) above, include a more storm resilient pole population that will result in reductions in pole failures and poles needing to be replaced during storms, fewer storm-related outages and reductions in storm restoration costs. 5. Criteria used to Select and Prioritize the Proqram Poles to be inspected annually are selected/prioritized within each of the nine (9) inspection zones established throughout FPL's service territory based on the last cycle's inspection dates, to ensure that poles are in compliance with FPL's established eight-year 1a Note, lhe 2020-2029 program costs shown above are projected costs estimated as of the time of this filing. Subsequent projected and actual costs could vary by as much as 10oh to 15%. The annual projected costs, actual/estimated costs, actuals costs, and true-up of actual costs to be included in FPL's Storm Protection Plan Cost Recovery Clause will all be addressed in subsequent and separate Storm Protection Plan Cost Recovery Clause filings pursuant to Rule 25-6.031, F.A.C. The Commission has opened Docket No.20200092-El to address Storm Protection Plan Cost Recovery Clause petitions to be filed the third quarter of 2020. 2017-2019 $1 52 $st 2020-2022 $1 70 $sz 2020-2029 $605 $61 11 Docket No. 2O2OO071-EI FPL's 202O-2029 Storm Protection Plan Exhibit MJ-1 , Page 16 of 48 cycle. As such, approximately 1/8 of the distribution poles in each inspection zone are inspected annually. At this time, FPL has not identified any areas where the Pole lnspection - Distribution Program would not be feasible, reasonable or practical. Structures/Other Equipment lnspections Transmission Program 1. Description of the Proqram and Benel[s The Structures/Other lnspections - Transmission Program included in the SPP is a continuation of FPL's existing Commission-approved transmission inspection program. Below is an overview of FPL's existing transmission inspection program and the associated benefits. a. Overview of the Transmission lnspection Proqram ln 2006, as part of its Storm Preparedness lnitiative No. 3, the Commission required electric utilities to develop and implement plans to fully inspect alltransmission structures, substations, and all hardware associated with these facilities on a six-year cycle. Consistent therewith, FPL implemented a Commission-approved transmission inspection plan in 2006 and has continued that plan to date. Under its Commission-approved transmission inspection plan, FPL inspects its transmission circuits, substations, and other equipment on a six-year cycle. Additionally, all of FPL's transmission structures are visually inspected from the ground each year. Finally, FPL performs climbing or bucket truck inspections on all wood transmission structures on a six-year cycle and all steel and concrete structures on a ten-year cycle. lnspections for wood structures include an overall assessment of the condition of the structures, as well as other pole/structure components including the foundation, all attachments, insulators, guys, cross-braces, cross-arms, and bolts. lf a wood transmission structure does not pass visual inspection, it is designated for replacement with a concrete or steel transmission structure. B 12 Docket No. 2020O071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 17 of 48 For steel and concrete structures, the visual inspection includes an overall assessment of the structure condition (e.9., cracks, chips, exposed rebar, and rust) as well as other pole/structure components including the foundation, all attachments, insulators, guys, cross-braces, cross-arms, and bolts. lf a concrete or steel pole/structure fails the inspection, it is designated for repair or replacement. The SPP will continue FPL's current transmission inspection program which requires: (a) transmission circuits and substations and all associated hardware to be inspected on a six-year cycle; (b) wood structures to be inspected visually from the ground each year and climbing or bucket truck inspections to be conducted on a six-year cycle; and (c) steel and concrete structures to be inspected visually each year and climbing or bucket truck inspections to be conducted on a ten-year cycle. b. Benefits of the Transmission lnspection Proqram As noted in Section lV(A)(1)(b) above, the Commission has found numerous benefits and reasons justifying inspections of electrical utility facilities, including transmission facilities. lmportantly, the transmission system is the backbone of the electric grid. While outages associated with distribution facilities (e.9., a transformer, lateral orfeeder) can result in an outage affecting anywhere from a few customers up to several thousands of customers, a transmission related outage can affect tens of thousands of customers. Additionally, an outage on a transmission facility could cause cascading (a loss of power at one transmission facility can trigger the loss of power on another interconnected transmission facility, which in turn can trigger the loss of power on another interconnected transmission facility, and so on) and result in the loss of service for hundreds of thousands of customers. As such, it is imperative that transmission facilities be properly inspected using appropriate cycles and standards to help ensure they are prepared for storms. Further, the performance of FPL's transmission facilities during recent storm events indicates FPL's transmission inspection program has contributed to the overall storm resiliency of the transmission system and provided savings in storm restoration costs. The table below compares the performance of FPL's transmission system for Hurricane Wilma, which occurred in 2005 before FPL implemented its current transmission 13 Docket No. 2O2O0071-El F PL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 1B of 48 inspection program, and Hurricane lrma, which occurred in 2017 after FPL implemented its current transmission inspection program: Transmission Facilities Hurricane Wilma Hurricane lrma lm ent As shown above, the impacts on FPL's transmission facilities associated with Hurricane lrma were significantly reduced from those experienced with Hurricane Wilma, even though Hurricane lrma's winds were stronger and its path impacted substantially more of FPL's facilities. As reflected in the Commission's reasoning for mandating transmission facility inspections, FPL submits that its systematic transmission inspection program is a key factor for this improved performance. 2. Actual/Estimated Start and Comnletion Dates The SPP will continue FPL's ongoing Commission-approved transmission inspection program described above. This requires FPL to inspect: (a) transmission circuits and substations and all associated hardware on a six-year cycle; (b) wood structures to be visually inspected from the ground each year and conduct climbing or bucket truck inspections on a six-year cycle; and (c) steel and concrete structures visually each year and conduct climbing or bucket truck inspections on a ten-year cycle. 3. Cost Estimates Estimated/actual annual transmission inspection costs are a function of the number of inspections estimated to be/actually completed and the transmission facilities estimated to be/actually remediated/replaced as a result of those annual inspections. Although the inspection costs are operating expenses, the vast majority of the transmission inspection program costs are capital costs resulting from remediation/replacement of facilities that fail inspection. The table below provides a comparison of the 20'17-2019 total actual transmission inspection costs with the 2020-2022 (first three years of the SPP) total estimated Line Section Outages 345 215 38o/o Substation Outages 241 92 620/o 5 95%Structures Failed 100 14 Docket No. 2020007|-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1, Page 19 of 4B transmission inspection costs and the 2020-2029 totalestimated transmission inspection costs: Total Program Gosts Annual Average Program millions Gosts millions Further details regarding the SPP estimated transmission inspection costs, including estimated annual capitalexpenditures and operating expenses, are provided in Appendix c.15 4. Comparison of Costs and Benefits As provided in Section |V(BX3) above, during 2020-2029, total costs for FPL's Structures/Other lnspections - Transmission Program are expected to average approximately $50 million per year. Benefits associated with the Structures/Other lnspections - Transmission Program discussed in Sections ll and |V(BX1)(b) above, include avoiding outages that can affect tens of thousands of customers and, in pafticular, cascading outages where the loss of service can affect hundreds of thousands of customers. 5. Criteria used to Select and Prioritize the Program As explained above, FPL visually inspects from the ground all transmission structures on an annual basis. For the inspection of transmission circuits and substations and all associated hardware, the facilities are selected/prioritized throughout FPL's service territory based on the last cycle's inspection dates, to ensure that facilities are inspected in compliance with the established six-year inspection cycle. Similarly, for bucket truck or climbing inspections, structures are selected/prioritized throughout FPL's service territory based on the last cycle's inspection dates, to ensure that structures are inspected 2017-2019 $1 28 $43 2020^2022 $ez $32 2020-2029 $500 $50 1s See footnote 14 15 Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 20 of 48 in compliance with the established six-year (wood) and ten-year (steel and concrete) cycles. At this time, FPL has not identified any areas where the Structures/Other lnspections - Transmission Program would not be feasible, reasonable or practical. Feeder Hardening (EWL) - Distribution Program 1. Description of the Proqram and Benefits The Feeder Hardening (EWL) - Distribution Program included in the SPP is a continuation of FPL's existing Commission-approved approach (most recently approved in Docket No.20180144-El) to harden existing feeders and certain critical distribution poles, as well as FPL's initiative to design and construct new pole lines and major planned work to meet the NESC's extreme wind loading criteria ("EWL'). FPL will continue the distribution feeder hardening program unlil2024, when FPL expects 100% of its feeders to be hardened or underground. Below is an overview of FPL's existing distribution feeder hardening program and the associated benefits. a. Overview of the Distribution Feeder Hardening Program The foundation for FPL's distribution feeder hardening program was the extensive forensic and other analyses that FPL conducted after Hurricane Wilma.16 These analyses concluded that "wind only" (as opposed to, for example, trees or other flying debris) was the predominant root cause of distribution pole breakage. This data, together with the overall performance of FPL's transmission poles that were already built to the NESC EWL standards and the performance of hardened feeders during Hurricanes Matthew and lrma, formed the basis for FPL's feeder hardening strategy. The SPP will continue FPL's previously approved approach to apply EWL criteria to harden existing distribution feeders and certain critical poles. The NESC extreme wind map for Florida will continue to be applied to FPL's system by dividing the application of 16 These analyses were conducted either directly by FPL or with the aid of external resources (e.9., KEMA, lnc.). c 16 Docket No. 202OO071-E\ FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 21 ol 48 EWL into three wind regions, corresponding to expected extreme winds of 105, 130 and 145 mph, as shown below. FPL Extreme Wind Reqions - mph (meter/sec) I s0(ct)105 mph 130 mph 145 mph r.o(G3) By evaluating each of the counties served by FPL, including each county's applicable wind zones, FPL determined that utilizing three extreme wind regions of '105, 130 and 145 mph for its service territory was appropriate for the following reasons: A smaller number of wind regions generate advantages through efficiency of work methods, training, engineering and administrative aspects (e.9., standards development and deployment); and Using 105, 130 and 145 mph wind zones is a well balanced approach that recognizes differences in the EWL requirements in the counties within each region. a a The SPP will also continue to utilize FPL's Design Guidelines and processes that apply EWL criteria to the design and construction of new pole lines and major planned work, including pole line extensions and relocations and certain pole replacements. Depending on the scope of the work that is pedormed in a particular project, this could result in the EWL hardening of an entire circuit (in the case of large-scale projects) or in EWL hardening of one or more poles (in the case of small projects) so that the affected circuit will be in a position to be fully EWL hardened in the future. The Design Guidelines are 17 Docket No. 20200071-El FPL's 2020-2O29 Storm Protection Plan Exhibit MJ-1, Page 22 of 48 primarily associated with changes in pole class, pole type, and desired span lengths to be utilized. The Design Guidelines standardize the design and construction of new pole lines and major planned work to ensure that these projects align with FPL's hardening strategy. FPL's current pole sizing guidelines provide for a minimum installation of: Class 2 wood poles for all new feeder and three-phase lateral work; Class 3 wood pole for two-phase and single-phase lateral work; and Class 3 wood pole for service and secondary work. For critical poles, FPL's current pole sizing guidelines provide for the installation of concrete poles at accessible locations. These guidelines significantly increase the wind ratings (up to nearly 50 percent) from the Design Guidelines in place prior to 2007. FPL's current Distribution Design Guidelines are provided in Appendix D. To determine how an existing overhead circuit or critical pole will be hardened, a field survey of the circuit facilities is performed. By capturing detailed information at each pole location, such as pole type, class, span distance, attachments, wire size, and framing, a comprehensive wind-loading analysis can be performed to determine the current wind rating of each pole, and ultimately the circuit itself. This data is then used to identify specific pole locations on the circuit that do not meet the desired wind rating. For all poles that do not meet the applicable EWL, FPL develops recommendations to increase the allowable wind rating of the pole. FPL plans to continue to utilize its "design toolkit" that focuses on evaluating and using cost-effective hardening options for each location, including: Storm Guying - lnstalling a guy wire in each direction perpendicular to the line, which is a very cost-effective option but is dependent on proper field conditions; Equipment Relocation - Moving equipment on a pole to a stronger pole near- by; lntermediate Pole - lnstalling an additionalsingle pole within Iong span lengths, which reduce the span length and increases the wind rating of both adjacent poles; a a a 18 Docket No. 202O4071-El FPL's 2O2O-2029 Storm Protection Plan Exhibit MJ-'l, Page 23 of 48 Upgrading Pole Class - Replacing the existing pole with a higher class pole to increase the pole's wind rating; and; Undergrounding Facilities - Evaluated on a case-by-case basis using site- specific factors and conditions. These options are not mutually exclusive and, when used in combination with sound engineering practices, provide cost-effective methods to harden a circuit. FPL's design recommendations also take into consideration issues such as hardening, mitigation (minimizing damage), and restoration (improving the efficiency of restoration in the event of failure). Since multiple factors can contribute to losing power after a storm, utilizing this multi-faceted approach to pole design helps to reduce the amount of work required to restore power to a damaged circuit. b. Benefits of the Distribution Feeder Hardeninq Program Distribution feeders are the backbone of the distribution system and are critical component to providing safe and reliable electric service to FPL's customers. Thus, improving the storm resiliency of distribution feeders logically provides substantial benefits for customers. Therefore, hardening distribution feeders has been and continues to be one of FPL's highest storm hardening priorities. During the period 2006-2019, FPL hardened over 1,300 existing feeders, the vast majority being Critical lnfrastructure Function ("ClF") feeders (i.e., feeders that serve hospitals, 911 centers, police and fire stations, water treatment facilities, county emergency operation centers) and Community Project feeders (r.e., feeders that serve other key community needs like gas stations, grocery stores, and pharmacies) throughout FPL's service territory. Additional feeders were hardened as a result of FPL's Priority Feeder lnitiative, a reliability program that targeted feeders experiencing the highest number of interruptions and/or customers interrupted. As of year-end 2019, approximately 54% of FPL's feeders were either hardened or placed underground. Additionally, FPL has hardened '125 highway crossings and over 300 "01" switches (first pole out of a substation with a feeder switch). FPL also applied EWL to the design and construction of new pole a a 19 Docket No. 202O0071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1, Page 24 of 48 lines and major planned work, including pole line extensions and relocations and certain pole replacements. As provided in previous FPL Annual Reliability Report filings and three-year Storm Hardening Plan filings (per Rule 25-6.0342, F.A.C.) hardened feeders perform better than non-hardened feeders. This has been demonstrated in-day-to-day reliability performance and during severe storms. For example, when comparing day-to-day reliability performance, hardened feeders have performed 40% better than non-hardened feeders. Also, during Hurricanes Matthew and lrma, hardened feeders performed better than non- hardened feeders. Additionally, in Docket No. 20170215-EU, the Commission reviewed the electric utilities' storm hardening and storm preparedness programs and found for Hurricane lrma that: (1) outage rates were nearly 20% less for hardened feeders than non-hardened feeders; (2) CMH to restore hardened feeders were 50% less than non-hardened feeders (primarily due to hardened feeders experiencing less damage than non-hardened hardened feeders); and (3) hardened feeders had significantly less pole failures as compared to non-hardened feeders.lT 2. ActualiEstimated Start and Completion Dates FPL initiated its feeder hardening initiative in 2006. As of year-end 2019, there are approximately 1,600 feeders remaining to be hardened or placed underground. FPL expects to harden approximately 250-350 feeders annually, with 100% of FPL's feeders expected to be hardened or underground by year-end 2024 and with the final costs of the program to be incurred in 2025. 17 See Review of Florida's Electric Utility Hurricane Prepared ness and Restoration Actions 2018, Docket No. 20170215-EU (July 24,2018), available at http:i/www. psc. state.fl. us/librarvifilin ssl201 B I 04847 -201 B I 04847 -20 1 B. pdf. 20 Docket No. 20200071-El FPL's 2020-2029 Storm Protection PIan Exhibit MJ-1 , Page 25 of 4B 3. Cost Estimates Estimated distribution feeder hardening costs are determined utilizing the length of each feeder, the average historical feeder hardening cost per mile, and updated cost assumptions (e.9., labor and materials). The table below provides a comparison of the 2017-2019 total actual distribution feeder hardening costs with the 2020-2022 (first three years of the SPP) total estimated distribution feeder hardening costs and the total estimated distribution feeder hardening costs to be incurred over the period of 2020-202518: Total Program Costs Annual Average Program millions Costs millions Further details regarding the SPP distribution feeder hardening costs, including estimated annual capital expenditures are provided in Appendix C.1e 4. Comparison of Costs and Benefits As provided in Section lV(C)(3) above, during 2020-2025, total costs for FPL's Feeder Hardening (EWL) - Distribution Program average approximately $534 million per year through 2025. Benefits associated with the Feeder Hardening (EWL) - Distribution Program discussed in Sections ll and |V(CX1Xb) above, include improved storm resiliency as well as improved day-to-day reliability. 5. Criteria used to Select and Prioritize the Proqram As explained above, there are approximately 1,600 feeders remaining to be hardened or placed underground. FPL attempts to spread its annual projects throughout its service territory. ln prioritizing the remaining existing feeders to be hardened each year, 18 lt is currently estimated that 100% of FPL's feeders will be hardened or underground by year- end 2024, with the final costs to be incurred in 2025. 1s See footnote 14. 2017-2019 $1,492 $497 2020-2022 $1,958 $653 2020-2025 $3,206 $534 21 Docket No. 2020O071-El FPL's 2O20-2029 Storm Protection Plan Exhibit MJ-1 , Page 26 of 48 considerations include the feeder's historical reliability performance, restoration difficulties (e.9., environmentally sensitive areas, islands with no vehicle access, river crossings, etc.), on-going or upcoming internal/external projects (e.9., FPL maintenance or system expansion projects, municipal overhead/underground conversion project or municipal road project) and geographic location. At this time, FPL has not identified any areas where the Feeder Hardening (EWL) - Distribution Program would not be feasible, reasonable or practical. Lateral Hardening (Undergrounding) - Distribution Program 1. Description of the Proqram and Brenelils ln 2018, FPL implemented a three-year Commission-approved SSUP Pilot. The SSUP Pilot is a program that targets certain overhead laterals for conversion from overhead to underground. As part of its SPP, FPL will expand undergrounding laterals in 2021-2029. Below is an overview of FPL's Lateral Hardening (Undergrounding) - Distribution Program and the associated benefits. a Overuiew of the Distribution Lateral Hardenin o Prooram As part of the SPP, FPL will complete its existing approved three-year SSUP Pilot (in 2020) and expand the application of the SSUP during 2021-2029 to the implementation of the system-wide Lateral Hardening (Undergrounding) - Distribution Program. The SSUP Pilot targeted certain overhead laterals that were impacted by recent storms and that have a history of vegetation-related outages and other reliability issues for conversion from overhead to underground. Key objectives of the SSUP Pilot included validating conversion costs and identifying cost savings opportunities, testing different design philosophies, better understanding customer impacts and sentiments, and identifying barriers (e.9., obtaining easements, placement of transformers, and attaching entities' issues). Two design options are being utilized when FPL converts overhead laterals to underground, referred to as the North American and the European designs. The North American design currently is the predominant design, but both undergrounding designs eliminate all overhead lateral and service wire. The North American design generally 22 D Docket No. 2O200071-El F PL's 2020-2029 Storm Protection Plan Exhibit MJ-1, Page 27 o( 4B utilizes more primary conductor and a greater number of smaller-sized transformers, with less customers per transformer, and is better suited for front lot construction and service. The European design utilizes more secondary conductor, and a smaller number of larger- sized transformers, with more customers per transformer, and is better suited for rear lot construction and service. Where practical, FPL attempts to relocate existing facilities from the rear of to the front of customers' premises; however, there are instances where that option is not available (e.9., FPL is unable to obtain easements in front of customers' premises). FPL's standard design is the North American design (front lot construction), but FPL is gaining important experience and knowledge from its utilization of the European design (rear lot construction), which it can then better utilize for future projects as appropriate. As part of the conversion process, FPL is also installing meter base adaptors that allow underground service to be provided to the customer by utilizing the existing meter and meter enclosure. The meter base adaptors minimize the impact on customer-owned equipment and facilities. For example, in certain situations, overhead to underground conversions of electric service can trigger a local electrical code requirement that necessitates a customer upgrade of the home's electric service panel. This can cost the customer thousands of dollars. However, by utilizing a meter base adaptor, overall costs are reduced and customers are able to avoid the need and expense to convert their electrical service panels. b. Benefits of the Distribution Lateral Hardeninq Proqram Laterals make up the majority of FPL's distribution system. For example, system-wide, there are over 180,000 laterals (including laterals with multi-stage fusing), in contrast to approximately 3,300 feeders, and there are 1.8 times as many miles of overhead laterals as there are overhead feeders (approximately 23,000 miles vs. 13,000 miles, respectively). Additionally, while feeders are predominately located in the front of customers' premises, many laterals are "rear of' or behind customers' premises. This is especially the case in older neighborhoods located throughout FPL's service territory. Generally, facilities in the rear of customers' premises take longer to restore than facilities in front of customers' premises because rear-located facilities are more difficult to access 23 Docket No. 2O2O0071-E\ F PL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 2B of 48 and are more likely to be near vegetation. This results in a greater amount of CMH being devoted to laterals during storm restoration. The basis for FPL's SSUP Pilot and the proposal to expand upon the Pilot under the SPP is the performance of the underground facilities as compared to overhead facilities and the extensive damage to the overhead facilities caused by vegetation during Hurricanes Matthew and lrma. This performance was demonstrated by the results of FPL's analysis referenced above in Section |V(AX1)(b) and contained in the Commission's Review of Florida's Electric Utility Hurricane Preparedness and Restoration Actions in 2018,20 which is summarized in the table below: Storm and Faci Laterals Out Total Laterals % Out Finally, it is important to note that underground facilities also perform better than overhead facilities on a dayto-day basis. For example, based on the reliability performance metrics for overhead and underground facilities provided to the Commission in FPL's February 28,2020 Annual Reliability Report filing, the System Average lnterruption Duration lndex ("SAlDl') for underground facilities is significantly betterthan hybrid facilities (combination of overhead and underground) or overhead facilities as shown in the table below: sAlD12l Year UG OHH brid 20 See footnote 17. 21 See pages 93-97 of FPL's February 28, 2020 Annual Reliability Report filing for more details on day-to-day reliability performance - overhead vs. underground. Matthew OH 3,473 82,729 4o/o Matthew UG 238 101,892 O.2o/o 24o/olrma OH 20,341 84,574 lrma UG 3,767 103,384 4o/o 21.4 102.4 60.02015 2016 17.2 80.4 57.6 2017 17.7 89.6 55.5 2018 21.2 89.0 54.2 2019 30.3 87.4 49.4 24 Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1, Page 29 of 4B 2. Actual/Estimated Start and Completion Dates FPL's SSUP Pilot was initiated in 2018. By the end of 2020, the third and final year of the SSUP Pilot, FPL expects to have converted a total of 220-230laterals from overhead to underground, which is consistent with the SSUP Pilot's plan most recently approved in Docket No. 20180144-El. As part of its SPP, FPL will incorporate, continue, and expand the SSUP to provide the benefits of underground lateral hardening throughout its system. After completing the SSUP Pilot in 2020, FPL estimates it will convert 300-700 laterals annually. ln 2024-2029 FPL estimates it will convert 800-900 laterals annually. 3. Cost Estimates Estimated lateral undergrounding costs are determined utilizing the length of each lateral, the average historical lateral undergrounding cost per mile, and updated cost assumptions (e.9., labor and materials). The table below provides a comparison of the 2018-2019 total actual costs for the SSUP Pilot with the 2020-2022 (first three years of the SPP) total estimated distribution lateral hardening program costs and the 2020-2029 total estimated distribution lateral hardening program costs: Total Annual Average P ram Gosts millions P ram Costs illions Further details regarding the SPP estimated distribution lateral hardening program costs, including estimated annual capital expenditures are provided in Appendix C.23 4. Comparison of Costs and Benefits As provided in Section lV(D)(3) above, during 2020-2029, total costs for FPL's Lateral Hardening (Undergrounding)- Distribution Program average approximately $510 million per year. Benefits associated with the Lateral Hardening (Undergrounding) - Distribution 22The Storm Secure Underground Program Pilot was initiated in 2018. 23 See footnote 14. 2018-201922 $76 $38 2020-2022 $676 $225 2020-2029 $5,101 $51 0 25 Docket No. 20200071-El FPL'9 2020-2029 Storm Protection Plan Exhibit MJ-1, Page 30 of 4B Program discussed in Sections ll AND |V(DX1)(b) above, include improved storm resiliency as well as improved day-to-day reliability. 5. Criteria used to Select and Prioritize the Proqram FPL will select/prioritize future laterals for conversion to undergrounding based on an overall feeder performance methodology. Rather than selecting individual "stand-alone" laterals, FPL will underground all the laterals on a feeder such that when a hardened feeder that has experienced an outage is restored, all associated underground laterals would also be restored (unless the underground lateralwas damaged). On average, there are currently 20-30 overhead laterals on a feeder. The selection and prioritization of the laterals to be converted will be based on a methodology that considers. (a) all of the overhead laterals on each feeder; (b) outage experience during the recent Hurricanes Matthew and lrma; (c) the number of vegetation-related outages experienced over the most recent 10 years; and (d) the total number of lateral and transformer outages experienced over the most recent 10 years. These overhead lateral factors are totaled for each feeder, and the feeders are ranked based on these totals. All laterals on the feeders will then be hardened according to the ranking of each feeder. ln order to optimize resources and provide lateral hardening throughout FPL's system, lateral hardening projects will be performed annually in all sixteen (16) of FPL's management areas. At this time, FPL has not identified any areas where the Lateral Hardening (Undergrounding) - Distribution Program would not be feasible, reasonable, or practical. However, in areas that are more prone to flooding or storm surge, FPL will consider alternative construction methods (e.9., elevating transformer pads). E Wood Structures Hardening (Replacing) Transmission Program 1. Description of the Proqram and Benefits The Wood Structure Hardening (Replacing) - Transmission Program included in the SPP is a continuation of FPL's existing transmission hardening program through the end of 2022, when FPL expects that 100% of its transmission structures will be steel or concrete. 26 Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 31 of 48 Below is an overview of FPL's existing transmission wood structure hardening program and the associated benefits. a. Overview of the Transmission Hardeninq Proqram Wf ite FPL's transmission facilities were affected by the 2004 and 2005 storms, the damage experienced was significantly less than the damage sustained by distribution facilities. A primary reason for this resulted from the fact that transmission structures were, at that time, already constructed to meet EWL consistent with Florida Statute 366.04 and the National Electrical Safety Code, Rule 250 C. Based on the forensic data collected from the 2004 and 2005 storms, FPL implemented a Commission-approved transmission storm hardening initiative to replace all wood transmission structures, which accounted for nearly 70 percent of all transmission structures replaced during the2004-2005 storm seasons, with steelor concrete structures. As explained below, this initiative is ongoing and expected to be completed by the end of 2022. As part of its SPP, FPL will continue its initiative to replace allwood transmission structures with steel or concrete structures. b. Benefits of the Transmission Hardeninq Proqram While an outage associated with distribution facilities (e.9., a transformer, lateral, or feeder) can impact up to several thousands of customers, a transmission-related outage can result in an outage affecting tens of thousands of customers. Additionally, an outage on a transmission facility could cause cascading (a loss of power at one transmission facility can trigger the loss of power on another interconnected transmission facility, which in turn can trigger the loss of power on Another interconnected transmission facility, and so on) and result in the loss of service for hundreds of thousands of customers. As a result, the prevention of transmission-related outages is essential. As discussed earlier, while transmission facilities performed significantly better than distribution facilities during the 2004 and 2005 storms, there were several opportunities for improvement identified, including the replacement of wood transmission structures. As a result of its transmission inspection programs and its replacement of wood transmission structures, FPL's transmission facilities have demonstrated to be more storm resilient. 27 Docket No. 202OO071-E\ FPL's 202O-2O29 Storm Protection Plan Exhibit MJ-'l, Page 32 of 48 The table below compares the performance of FPL's transmission system for Hurricane Wilma, which occurred in 2005 before FPL implemented its current transmission hardening program, and Hurricane lrma, which occurred in 2017 after FPL implemented its current transmission hardening program: Hurricane Wilma Hurricane lrma % Line Section Outages 37o/o 17o/o Transmission Structure Failures 100 5 (all non-hardened) Transmission Substations De-energized 241 92 Days to Restore Substation Outages 5 1 As shown above, the impacts on FPL's transmission facilities associated with Hurricane lrma were significantly reduced from those experienced with Hurricane Wilma, even though Hurricane lrma's winds were stronger and its path impacted substantially more of FPL's facilities. 2. Actual/Estimated Start and Completion Dates FPL implemented its transmission hardening program in 2007. As of year-end 2019,960/o of FPL's transmission structures, system-wide, were steel or concrete, with less than 2,900 (or 4o/o) wood structures remaining to be replaced. FPL expects to replace the 2,900 wood transmission structures remaining on its system by year-end 2022. 3. Cost Estimates Estimated/actual annual transmission hardening costs are a function of the number of poles to be replaced, actual historical replacement costs, and updated cost assumptions (e.9., labor and materials). The vast majority of the transmission hardening program costs are capital costs resulting from replacement of the wood transmission structures. 28 Docket No. 2O200071-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1, Page 33 of 48 The table below provides a comparison of the 2017-2019 total actual transmission hardening costs with the 2020-2022 (first three years of the SPP) total estimated transmission hardening costs:24 Total Annual Average P ram Costs millions ram Costs millions Further details regarding the SPP estimated transmission hardening costs, including estimated annualcapital expenditures and operating expenses, are provided in Appendix c.25 4. Comparison of Costs and Benefits As provided in Section lV(E)(3) above, during 2020-2022, total costs for FPL's Wood Structure Hardening (Replacing) - Transmission Program average approximately $39 million per year. Benefits associated with the Wood Structure Hardening (Replacing) - Transmission Program discussed in Sections ll and lV(E)(1)(b) above, include improved storm resiliency. 5. Criteria used to Select and Prioritize the Program The annual prioritization/selection criteria for the remaining wood structures to be replaced includes proximity to high wind areas, system importance, customer counts, and coordination with other storm initiatives (e.9., distribution feeder hardening). Other economic efficiencies, such as opportunities to perform work on multiple transmission line sections within the same transmission corridor, are also considered. At this time, FPL has not identified any areas where the replacement of the remaining wood transmission structures under the Wood Structure Hardening (Replacing) - Transmission Program would not be feasible, reasonable or practical. 24 FPL expects that 100o/o of the remaining wood transmission structures in its system will be replaced by year-end 2022. 25 See footnote 14. 2017-2019 $162 $s+ 2020-2022 $1 18 $3s 29 Docket No. 2O200071-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 34 of 4B F. Substation Storm Surge/Flood Mitigation Program 1. Description of the Proqram and Benefits The Substation Storm Surge/Flood Mitigation Program is the only new program included in FPL's SPP. As explained below, Substation Storm Surge/Flood Mitigation Program is a new program to mitigate damage at several targeted distribution and transmission substations that are susceptible to storm surge and flooding during extreme weather events. Historically, several FPL distribution and transmission substations have been impacted by storm surge and/or flooding as a result of extreme weather conditions. For example, as a result of flooding caused by Hurricanes Matthew and lrma, FPL's St. Augustine substation was required to be proactively de-energized (r.e., shut down before water reached levels that would cause significant damage to powered substation equipment). Another example is FPL's South Daytona substation that was proactively de-energized during Hurricane lrma as a result of flooding. While proactively de-energizing those substations impacted by storm surge and/or flooding helps reduce damage to substation equipment, FPL is still required to implement both temporary flood mitigation efforts and repairs to substation facilities and equipment that become flooded as a result of extreme weather conditions. An outage associated with distribution substations can impact up to several thousands of customers, and an outage associated with a transmission substation can result in an outage affecting tens of thousands of customers. Flooding and the need to proactively de-energize substations located in areas susceptible to storm surge and flooding can result in significant customer outages. For example, the flooding and de-energization of St. Augustine and South Daytona during Hurricane lrma resulted in more than 8,000 customer outages. Therefore, the prevention of outages at transmission and distribution substations due to storm surge or flooding is essential. To prevent/mitigate future substation equipment damage and customer outages due to storm surge and flooding, FPL's new Substation Storm Surge/Flood Mitigation Program will target and harden certain substations located in areas throughout FPL's service 30 Docket No. 20200071-El FPL's 2020-2029 Storm Protection PIan Exhibit MJ-'1 , Page 35 of 48 territory that are susceptible to storm surge or flooding during extreme weather events. Specifically, FPL plans to raise the equipment at certain substations above the flood level and construct flood protection walls around other substations to prevent/mitigate future damage due to storm surge and flooding. 2. Actual/Estimated Start and Completion Dates At this time, FPL has identified between 8-10 substations where it initially plans to implement storm surge/flood mitigation measures over the next three years (2020-2022). FPL plans to initiate construction in late summeriearly fall 2020 to raise the equipment at the St. Augustine substation, which is expected to be completed in 2021. ln 2021 and early 2022, FPL also plans to begin construction on flood protection walls for the other 7- 9 substations identified for mitigation, which is expected to be completed by 2022. 3. Cost Estimates The storm surge/flood mitigation costs associated with St. Augustine substation (raising substation equipment) are estimated to be approximately $10 million in total (2020 and 2021). Estimated storm surge/flood mitigation costs for the remaining 7-9 substations identified at this time (constructing surrounding flood walls) are estimated to be approximately $13 million in total (2021 and2022). See the table below the estimated annual program costs: Total Annual Average P ram Costs millions ram Costs millions Further details regarding the SPP estimated storm surge/flood mitigation costs, including estimated annual capitalexpenditures and operating expenses, are provided in Appendix c.26 4. Comparison of Costs and Benefits As provided in Section IV(FX3) above, during 2020-2022, totalcosts for FPL's Substation Storm Surge/Flood Mitigation Program average approximately $8 million per year. 2020-2022 $23 $a 26 See footnote 14 31 Docket No. 2O200071-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 36 of 4B Benefits associated with this program discussed in Section |V(FX1) above, include improved storm resiliency (avoiding storm surge/flood damage), reduced customer outages and storm restoration costs. 5. Criteria used to Select and Prioritize Proiects The annual prioritization/selection criteria for the targeted substations is based on FPL's historical storm surge/flood experience, in particular, Hurricanes Matthew and lrma. At this time, for the targeted substations, FPL has not identified any areas where the upgrades would not be feasible, reasonable or practical. c. Vegetation Management - Distribution Program 1. Description of the Proqram and Benefits The Vegetation Management - Distribution Program included in the SPP is a continuation of FPL's existing Commission-approved Vegetation Management - Distribution Program. Below is an overview of FPL's existing Vegetation Management - Distribution Program and the associated benefits. a Overuiew of the Veoetation A/leneocmen t Disfribufion Proqram Prior to 2006, FPL's Vegetation Management - Distribution Program consisted of inspecting and maintaining its feeders on a three-year average trim cycle and performing targeted trimming on certain feeders more frequently (e.9., targeting vegetation with faster growth rates and palm trees) through its "mid-cycle" program. Lateral trimming was prioritized based on reliability performance. Another important component of this program was FPL's "Right Tree Right Place" initiative, which provided information to educate customers on FPL's vegetation management program and practices, safety issues, and the importance of placing trees in the proper location. After the 2004-2005 storm seasons, the Commission determined that the "vegetation management practices of the investor-owned electric utilities do not provide adequate assurance that tree clearances for overhead distribution facilities are being maintained in a manner that is likely to reduce vegetation related storm damage. We believe that 32 Docket No. 2O200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 37 of 48 utilities should develop more stringent distribution vegetation management programs."27 As result, FPL proposed and the Commission approved the continuation of FPL's system- wide three-year average trim cycle for feeders, mid-cycle targeted trimming for certain feeders, and its Right Tree Right Place initiative, as well as the implementation of a new six-year average trim cycle for laterals.2s These same initiatives, which have provided storm and day-to-day reliability benefits, remain in place today. Tree limbs and branches, especially palm fronds, are among the most common causes of power outages and momentary interruptions during both day-to-day operations and storm events. The primary objective of FPL's Vegetation Management - Distribution Program is to clear vegetation in areas where FPL is permitted to trim from the vicinity of distribution facilities and equipment in order to provide safe, reliable, and cost-effective electric service to its customers. The program is comprised of multiple initiatives designed to reduce the average time customers are without electricity as a result of vegetation-related interruptions. These include preventive maintenance initiatives (planned cycle and mid-cycle maintenance), corrective maintenance (trouble work and service restoration efforts), customer trim requests, and support of system improvement and expansion projects, which focus on long{erm reliability by addressing vegetation that will impact new or upgraded overhead distribution facilities. FPL's Vegetation Management Distribution Program's practices follow the NESC, the American National Standards lnstitute ('ANSl") A-300, and all other applicable standards, while considering tree species, growth rates, and the location of trees in proximity to FPL's facilities. Danger or hazard trees (leaning, structurally damaged, or diseased/dead that have a high likelihood to fail and impact FPL's facilities) located outside of right-of-way ("ROW'), which cannot be trimmed without approval from the property owner, are identified as candidates for customer-approved removal. Finally, a very important component of FPL's vegetation program is providing information to customers to educate them on the company's trimming program and practices, safety issues, and the importance of placing trees in the proper location - FPL's "Right Tree, 27 See Order No. PSC-06-0351-PAA-EI 28 See Order No. PSC-07-0468-FOF-El 33 Docket No. 20200071-El FPL's 2O20-2O29 Storm Protection Plan Exhibit MJ-1 , Page 38 of 48 Right Place" initiative. Right Tree, Right Place is a public education program based on FPL's core belief that providing reliable electric service and sustaining the natural environment can go hand-in-hand and is a win-win partnership between the utility and its customers. The SPP will continue FPL's currently-approved distribution vegetation program, which includes the following system-wide vegetation management activities: three-year cycle for feeders; mid-cycle targeted trimming for certain feeders; six-year cycle for laterals; and continued education of customers through its Right Tree, Right Place initiative. b Benefits of the Veqetation Manaoemenf Disfribution Prog[am ln Order No. PSC-07-0468-FOF-El, the Commission confirmed that FPL should continue to implement three-year and six-year average cycles for its feeders and laterals because the cycles complied with the Commission's storm preparedness objectives to increase the level of trimming over historical levels, promote system reliability and reduce storm restoration costs.2s Additionally, Commission's orders indicated that FPL's proposed cycles: were cost-effective; would improve day-to-day "tree SAlFl" from 0.22to 0.16 in ten years;3o and would provide savings when comparing savings on a customers interrupted ("C1") per storm basis. Further, dayto-day distribution tree SAIFI has significantly improved as a result of FPL implementing its approved distribution vegetation management program (from 0.20 prior to lhe 2004-2005 storm seasons to 0.08 at year- end 2019). Finally, another indication that the current program is providing benefits is that, while forensic analysis indicated vegetation was the overwhelming primary cause for pole and wire failures and a significant cause of outages during Hurricanes Matthew and lrma, the vast majority of damage resulted from uprooted trees, broken trunks, and broken limbs 2s FPL's proposed three-year and six-year cycles were initially approved in Order No. PSC-06- O7B1-PAA.EI. 30 The tree-related SAIFI has averaged less than 0.09 over the last few years. 34 Docket No. 2O200071-El FPL's 2O2O-2029 Storm Protection Plan Exhibit MJ-1, Page 39 of 48 that fell into distribution facilities from outside of right-of-way, i.e., beyond where FPL is currently allowed trim without approvalfrom the property owner. 2. Actual/Estimated Start and Completion Dates FPL's ongoing vegetation management plan was originally approved in 2007, and remains in place today. Under the SPP, FPL plans to inspect and maintain, on average, approximately 15,200 miles annually, including approximately 11,400 miles for feeders (cycle and mid-cycle) and 3,800 miles for laterals. This is comparable to the approximately 15,200 miles inspected and maintained annually, on average, for 2017- 2019. 3. Cost Estimates The vast majority of vegetation management costs are associated with cycle and mid- cycle trimming, which is performed by several FPl-approved contractors throughout FPL's system. Other vegetation management costs include costs associated with day- to-day restoration activities (e.9., summer afternoon thunderstorms), removals, debris cleanup, and support (e.g., arborists, supervision, back office support). Costs associated with vegetation management are generally operating expenses. The table below provides a comparison of the 2017-2019 total actual distribution vegetation management costs with the 2020-2022 (first three years of the SPP) total estimated distribution vegetation management costs and the 2020-2029 total estimated distribution vegetation management costs:31 Total Costs Annual Average millions m Gosts millions Further details regarding the SPP estimated distribution vegetation management costs, 31 The vegetation management costs shown in the table below exclude storm-related vegetation management costs. P 2017-2019 $1 8e $63 2020-2022 $1 83 $61 2020-2029 $5e6 $60 35 Docket No. 202O0071-El FPL'I 2020-2029 Storm Protection PIan Exhibit MJ-1 , Page 40 of 48 including estimated annualcapitalexpenditures and operating expenses, are provided in Appendix C.32 4. Comparison of Costs and Benefits As provided in Section lV(G)(3) above, during 2020-2029, totalcosts for FPL's Vegetation Management - Distribution Program average approximately $60 million per year. Benefits associated with the Vegetation Management - Distribution Program discussed in Sections ll and |V(GXI)(b) above, include increased storm resiliency. 5. Criteria Used to Select and Prioritize the Proqram The primary reason for maintaining feeders on a three-year average cycle, as opposed to a six-year average cycle for laterals, is that a feeder outage can affect, on average, approximately 1,500 customers as compared to an outage on a lateral line that can affect, on average, approximately 35 customers. FPL enhances its approved feeder inspection and trimming plan through its mid-cycle trimming program, which encompasses patrolling and trimming feeders between planned maintenance cycles to address tree conditions that may cause an interruption prior to the next planned cycle trim. Mid-cycle work units typically have a trim age of 12 to 18 months and usually involve certain fast-growing trees (e.g., palm trees) that need to be addressed before the next scheduled cycle trim date. Additionally, customers often contact FPL with requests to trim trees around distribution lines in their neighborhoods and near their homes. As a result of these discussions with customers and/or a follow-up investigation, FPL either performs the necessary trimming or determines that the requested trimming can be addressed more efficiently by completing it through the normal scheduled cycle trimming. Cycle trimming is prioritized annually to ensure compliance with cycle schedules. At this time, FPL has not identified any areas where the Vegetation Management - Distribution Program would not be feasible, reasonable or practical. 32 See footnote 14. 36 Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 41 of 4B Vegetation Management - Transmission Program 1. Description of the Proqram and Benefits The Vegetation Management - Transmission Program included in the SPP is a continuation of FPL's existing transmission vegetation management program. Below is an overview of FPL's existing transmission vegetation management program and the associated benefits. a. Overuiew of the Veqetation Manaqement - Transmission Proqram The North American Electric Reliability Corporation's (NERC) vegetation management standards/requirements serve as the basis for FPL's transmission vegetation management program. The reliability objective of these standards/requirements is to prevent vegetation-related outages that could lead to cascading by utilizing effective vegetation maintenance while recognizing that certain outages such as those due to vandalism, human errors, and acts of nature are not preventable. Transmission lines that must conform with these standards/requirements include lines operated at or above 200 kV or any line that is either an element of the lnterconnection Reliability Operating Limit (IROL) or the Western Electricity Coordinating Council (WECC). For FPL, just over 4,300 miles of its transmission system (or nearly two-thirds of all of FPL's total transmission system) are subject to NERC's vegetation management standards/requirements. NERC's vegetation management standards/requirements include annual inspection requirements, executing 100% of a utility's annual vegetation work plan, and to prevent any encroachment into established minimum vegetation clearance distances ("MVCD'). The key elements of FPL's transmission vegetation management program are to inspect the transmission right-of-ways, document vegetation inspection results and findings, prescribe a work plan, and execute the work plan. FPL conducts ground inspections of all transmission corridors annually for work planning purposes. During these inspections, FPL identifies vegetation capable of approaching the defined Vegetation Action Threshold ('VAT"). VAT is a calculated distance from the H 37 Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibii MJ-1, Page 42 of 48 transmission line that factors in MVCD, conductor sag/sway potential, and a buffer. The identified vegetation is given a work prescription and then prioritized and organized into batches of work, which collectively become the annual work plan. For transmission lines that are subject to NERC's vegetation management standards/requirements, FPL also uses a technology called .L|DAR,' short for light detection and ranging. LiDAR is a remote sensing technology that uses light in the form of a pulsed laser to measure ranges (distances) to a target. For vegetation management purposes, LiDAR is used to measure distance between vegetation and transmission lines. L|DAR patrols are conducted annually for all NERC transmission corridors. Data collected by the L|DAR patrols is then used to develop annual preventative and reactive work plans. ln its SPP, FPL will continue its current transmission vegetation management plan, which includes visual and aerial inspections of all transmission line corridors, LiDAR inspections of NERC transmission line corridors, developing and executing annual work plans to address identified vegetation conditions, and identifying and addressing priority and hazard tree conditions prior to and during storm season. b. Benefits of the Veqetation Manaqement - Transmission Proeram The benefits of a Vegetation Management - Transmission Program are self-evident and the consequences of not having a reasonable transmission vegetation management plan can be extreme. As discussed previously, the transmission system is the backbone of the electric grid. While outages associated with distribution facilities (e.9., a transformer, lateral, or feeder) can result in an outage affecting anyruhere from a few customers up to several thousands of customers, a transmission related outage can affect tens of thousands of customers. Additionally, an outage on a transmission facility could cause cascading and result in the loss of service for hundreds of thousands of customers. As such, it is imperative that vegetation impacting transmission facilities be properly maintained using reasonable and appropriate cycles and standards to help ensure they are prepared for storms. For these reasons, it is no surprise that NERC has developed 38 Docket No. 2020OO71-El FPL's 2O20-2029 Storm Protection Plan Exhibit MJ-1 , Page 43 of 48 prescriptive vegetation management requirements for transmission facilities to help prevent such damage from occurring. FPL also notes that while vegetation-related damage and transmission line outages occurred during Hurricanes Matthew and lrma, the vast majority of such damages/outages were caused by vegetation located outside of the right-of-way, i.a., beyond where FPL is currently allowed to trim without approval from the property owner, which further demonstrates that FPL's historical efforts in this area have been beneficial. 2. Actual/Estimated Start and Completion Dates FPL's Vegetation Management - Transmission Program is an ongoing program, initiated decades ago. Under the SPP, FPL plans to inspect and maintain, on average, approximately 7,000 miles annually, including approximately 4,300 miles for NERC transmission line corridors and 2,700 miles for non-NERC transmission line corridors. This is comparable to the approximately 7,000 miles inspected and maintained annually, on average , for 2017-2019. 3. Cost Estimates The vast majority of vegetation management costs are associated with annual inspections and the execution of planned work to address identified conditions, which is performed by several FPL approved contractors throughout FPL's system. Other vegetation management costs include costs associated with day-to-day restoration activities (e.9., summer afternoon thunderstorms), removals, debris cleanup, and support (e.9., arborists, supervision, back office support). Costs associated with vegetation management are generally operating expenses. The table below provides a comparison of the 2017-2019 total actual transmission vegetation management costs with the 2020-2022 (first three years of the SPP) total estimated transmission vegetation management costs and the 2020-2029 total estimated transmission vegetation management costs:s3 33 The vegetation management costs shown in the table below exclude storm-related vegetation management costs. 39 2017-2019 $27 $e $g2020-2022 $2t 2020-2029 $e6 $10 Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1, Page 44 of 48 Total Annual Average P ram Gosts millions ram Costs illions Further details regarding the SPP estimated transmission vegetation management costs, including estimated annualcapitalexpenditures and operating expenses, are provided in Appendix C.3a 4. Comparison of Costs and Benefits As provided in Section lV(H)(3) above, during 2020-2029, totalcosts for FPL's Vegetation Management - Transmission Program average approximately $10 million per year. Benefits associated with the Vegetation Management - Transmission Program discussed in Sections ll and |V(HX1)(b) above, include increased storm resiliency. The execution of FPL's Vegetation Management - Transmission Program is a significant factor in mitigating damage to transmission facilities and avoiding transmission-related outages. 5. Criteria used to Select and Prioritize the Programs Priority vegetation conditions and hazard tree conditions are completed annually prior to storm season. Additionally, prior to and during the storm season, FPL conducts aerial inspections of transmission corridors to identify hazard trees and any priority vegetation locations. Priority vegetation conditions and hazard tree conditions identified through aerial inspections are addressed as soon as possible. At this time, FPL has not identified any areas where the Vegetation Management - Transmission Program would not be feasible, reasonable or practical. 34 See footnote 14 40 Docket No. 20200071-El FPL's 202O-2029 Storm Protection Plan Exhibit MJ-1 , Page 45 of 48 V. Detailed lnformation on the First Three Years of the SPP (2020-20221 A. Detailed Description for the First Year of the SPP (20201 The following additional information required by Rule 25-6.030(3)(e)(1), F.A.C., for the first year of the SPP (2020) is provided in Appendix E. (1) the actual or estimated construction start and completion datesi e) a description of the affected existing facilities, including number and type(s) of customers served, historic service reliability performance during extreme weather conditions, and how this data was used to prioritize the storm protection projects; (3) a cost estimate including capital and operating expenses. A description of the criteria used to select and prioritize the storm protection programs is included in the description of each SPP program provided in Section lV. Detailed Description of the Second and Third Years of the sPP (2021-20221 B- Additional details required by Rule 25-6.030(3XeX2), F.A.C., for the second and third years of the SPP (2021-2022), including the estimated number and costs of projects under every program, is provided in in Appendix C. Detailed Description of the Vegetation Management Activities for the First Three Years of the SPP (2020-20221 The following additional information required by Rule 25-6.030(3X0, F.A.C., for the first three years of the vegetation management activities under the SPP (2020-2022) is provided in n Sections lV(G) and IV(H) above and Appendix C: the projected frequency (trim cycle); the projected miles of affected transmission and distribution overhead facilities; the estimated annual labor and equipment costs for both utility and contractor personnel. A description of how the vegetation management activities will reduce outage times and restoration costs due to extreme weather conditions is provided in Sections lV(G) and lV(H) above. c 41 Docket No. 20200071-El FPL's 2020-2029 Slorm Protection PIan Exhibit MJ-1 , Page 46 of 48 Vl. Estimate of Annual Jurisdictional Revenue Requuementq for the 2020-2029 SPP Pursuant to Rule 25-6.030(3Xf), F.A.C., the table below provides the estimated annual jurisdictional revenue requirements for each year of the SPP. Estimated Annual Revenue Requirements illions While FPL has provided estimated costs by program as of the time of this filing and associated total revenue requirements in its SPP, consistent with the requirements of Rule 25-6.030, F.A.C., subsequent projected and actual program costs submitted for cost recovery through the Storm Protection Plan Cost Recovery Clause (per Rule 25-6.031, F.A.C.,) could vary by as much as 10-15%, which would then also impact associated estimated revenue requirements and rate impacts. The projected costs, actual/ estimated costs, actuals costs, and true-up of actual costs to be included in FPL's Storm Protection 2020 $257.6 2021 $369.1 2022 $494.3 2023 $625.5 2024 $760.e 2025 $878.1 2026 $963.7 2027 $1,037.1 2028 $1,110.9 $1 ,185.22029 42 Docket No. 20200071-El F PL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 47 of 48 Plan Cost Recovery Clause will all be addressed in subsequent filings in separate storm protection plan cost recovery clause dockets pursuant to Rule 25-6.031, F.A.C.35 Vll. Estimated Rate lmpacts for First Three Years of the SPP (2020-20221 FPL anticipates the programs included in the SPP will have zero bill impacts on customer bills during the first year of the SPP and only minimal bill increases for years two and three of the SPP. An estimate of hypothetical overall rate impacts for the first three years of the SPP (2020-2022), without regard for the fact that FPL remains under a general base rate freeze pursuant to a Commission-approved settlement agreement through December 31,2021, as stated in footnote 36 below are based on the total program costs reflected in this filing.36 The projected costs, actual/estimated costs, actuals costs, and true-up of actual costs to be included in FPL's Storm Protection Plan Cost Recovery Clause will all be addressed in subsequent filings in Storm Protection Plan Cost Recovery Clause dockets pursuant to Rule 25-6.031, F.A.C.37 Pursuant to Rule 25-6.031, F.A.C., FPL has not identified any reasonable implementation alternatives that could mitigate the resulting rate impact for each of the first three years of the SPP. As explained above, FPL's SPP is largely a continuation of existing Commission-approved storm hardening programs and initiatives, which have already demonstrated that they have and will continue to provide increased T&D infrastructure resiliency, reduced restoration time, and reduced restoration costs when FPL's system is impacted by severe weather events. Further, as explained above, the estimated costs 35 The Commission has opened Docket No. 20200092-El to address Storm Protection Plan Cost Recovery Clause petitions to be filed the third quarter o'f 2020. 36 Pursuant to Rule 25-6.030(3)(h), F.A.C., the hypothetical rate impacts for FPL's typical residential, commercial, and industrial customers for the first three years of the SPP (2020-2022) without regard for the fact that FPL remains under a general base rate freeze pursuant to a Commission-approved settlement agreement through December 31, 2021, are as follows for 2020, 2021, and 2022, respectively: Residential (RS-1) $0.00251/kwh, $0.00357/kwh, and $0.00478/kWh; Commercial (GSD-1) $0.81/kW, $1.1s/kw, and $1.54/kW; and lndustrial (GSLDT-3) $0.05/kW, $0.08/kW and $0.1O/kW. These rate impacts are for all programs included in the SPP and are based on the total estimated costs as of the time of this filing, which could vary by as much as 10% lo 15ok, regardless of whetherthose costswill be recovered in FPL's Storm Protection Plan Cost Recovery Clause or through base rates. 37 See footnote 34. 43 Docket No. 2O200071-El F PL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 48 of 48 for the programs included in FPL's SPP are consistent with the historical costs incurred for the existing storm hardening and storm preparedness programs, which were most recently approved in FPL's 2019-2021Storm Hardening Plan. Vlll. Gonclusion The Florida Legislature has determined that it is in the State's interest to "strengthen electric utility infrastructure to withstand extreme weather conditions by promoting the overhead hardening of distribution and transmission facilities, undergrounding of certain distribution lines, and vegetation management," and for each electric utility to "mitigate restoration costs and outage times to utility customers when developing transmission and distribution storm protection plans." Section 366.96(1), F.S. Based on these findings, the Florida Legislature concluded that it is in the State's interest for each electric utility to develop and file a SPP for the overhead hardening and increased resilience of electric T&D facilities, undergrounding of electric distribution facilities, and vegetation management. See Sections 366.96(1)-(3). FPL's SPP is a systematic approach to achieve the legislative objectives of reducing restoration costs and outage times associated with extreme weather events and enhancing reliability. As explained above, FPL's SPP is largely a continuation and expansion of its existing and already successful storm hardening and storm preparedness programs previously approved by the Commission, as well as a new storm hardening program to harden certain targeted substations that are susceptible to storm surge or flooding during extreme weather events. Based on the recent experiences of Hurricanes Matthew and lrma, the existing storm hardening programs have a demonstrated and proven track record of mitigating and reducing restoration CMH, outage times, and storm restoration costs, as well as improving day-to-day reliability. FPL's SPP will continue and expand these important benefits to customers and the State. 44 Docket No. 20204071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 1 of 18) APPENDIXA (FPL's 3rd Supplemental Amended Response to Staffs lst Data Request) Docket No. 20200071-El F PL's 2o2o-2029 Storm Protection Plan Exhibit MJ-1, APPENDIX A (Page 2 of 1B) Florida Power & Light Company Docket No. 20170215-EU Staffs First Data Request Request No. 29 - Third Supplemental Amended Page I of9 QUESTION Please complete the table below summarizing hardened facilities that required repair or replacement as a result of Hurricanes Matthew, Hermine, Irma, Maria, and Nate. RESPONSE: FPL does not maintain its accounting records at the level of detail required to provide the requested information as they do not differentiate hardened facilities from non-hardened facilities, nor do they track which assets were repaired. However, FPL does track certain assets, at the total system level, that were requested and replaced during each hurricane as reflected in the tables below. Note, FPL did not track storm repairs/replacements for Hurricanes Maria and Nate as Hurricane Maria did not impact FPL's service territory and Nate had limited impact. Also, Hurricanes Matthew and Irma capital details associated with follow-up work are not yet available by plant account as these costs have not yet been unitized from account 106 to account 101 by plant account. Hurricane Matthew Number of Facilities Requiring Repair Replacement Transmission Structures N/A 0 Substations N/A 0 Total N/A 0 Distribution Poles N/A 656 Substation N/A 0 Feeder OH N/A 0 Feeder UG N/A 0 Feeder Combined N/A 0 Lateral OH N/A N/A Lateral UG N/A N/A Lateral Combined N/A N/A Total N/A N/A Service Service OH N/A N/A Service UG N/A N/A Service Combined N/A N/A Total N/A N/A Docket No. 20200071-El F PL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 3 of 1B) Florida Power & Light Company Docket No. 20170215-EU Staffs First Data Request Request No. 29 - Third Supplemental Amended Page2 of9 Hurricane Hermine Number of Facilities Requiring Repair Replacement Transmission Structures N/A 0 Substations N/A 0 Total N/A 0 Distribution Poles N/A I9 Substation N/A 0 Feeder OH N/A 0 Feeder UG N/A 0 Feeder Combined N/A 0 Lateral OH N/A N/A LateralUG N/A N/A Lateral Combined N/A N/A Total N/A N/A Service Service OH N/A N/A Service UG N/A N/A Service Combined N/A N/A Total N/A N/A Docket No. 2O200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 4 of 1B) Florida Power & Light Company Docket No. 20170215-EU Staffs First Data Request Request No. 29 - Third Supplemental Amended Page 3 of 9 Huruicane Irma Number of Facilities Requiring Repair Replacement Transmission Structures N/A 0 Substations N/A 0 Total N/A 0 Distribution Poles N/A 3 )5 62 Substation N/A 0 Feeder OH N/A 0 Feeder UG N/A 0 Feeder Combined N/A 0 Lateral OH N/A N/A Lateral UG N/A N/A Lateral Combined N/A N/A Total N/A N/A Service Service OH N/A N/A Service UG N/A N/A Service Combined N/A N/A Total N/A N/A Notes: For Hurricane Matthew, there is a difference of 248 poles between what is provided in this discovery response for total poles replaced (656 poles) and what is provided in FPL's post-storm forensic review report for Hunicane Matthew (provided in FPL's response to Staff s Second Data Request No. 2 in this same docket) for poles that failed and needed to be replaced to restore seruice (408 poles). The difference is associated with poles replaced during "follow-up" - i.e., poles that were damaged (e.g., a cracked pole) as a result of the storm and needed to be replaced to restore the pole to its pre-storm condition - but did not fail during the storm and, thus, did not need to be replaced to restore service. As mentioned above in FPL's response to this data request, FPL's accounting records do not differentiate hardened facilities from non-hardened facilities and FPL did not track or maintain forensic information on the 248 distribution poles replaced as a result of follow-up work. As a result, FPL does not have a hardened vs. non- hardened breakdown for the 248 distribution poles replaced during follow-up work. Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1, APPENDIX A (Page 5 of 18) X'lorida Power & Light Company Docket No. 20170215-EU Staff s First Data Request Request No. 29 - Third Supplemental Amended Page 4 of9 The distribution pole and transmission structure counts provided above represent the amount of pole/structure replacements FPL has recorded on its books and records associated with Hurricane Irma as of December 3 I , 20 I 7. These amounts should be considered prelimin ary at this time as they are subject to change (e.g., the counts do not reflect poles that will be replaced during follow-up work, which has yet to be completed). N/A - Information is not available at this level of detail in FPL's accounting records For substations and feeders, FPL has stated 0 since no entire substation or feeder was replaced. However, these facilities consist of many pieces of equipment (e.g., wire, cable, breakers, transformers, cross arms and arrestors) some of which may have been replaced. 20L 6/201 7 Hurricanes - FPL Restoration/Infrastructure Performance FPL's infrastructure/restoration performance for Hurricanes Matthew (2016) and Irma (2017) demonstrates that the implementation and execution of its FPSC-approved (1) ten storm preparedness initiatives (which includes vegetation management): (2) pole inspection programs; (3) storm hardening plans; and (4) tariffs to incent municipal overhead to underground conversions have provided great benefits to FPL's customers and to the State of Florida. During 2016 and 2017, FPL's service teruitory was threatened with massive Category 4 and 5 storms. The size and scale of these storms impacted FPL's infrastructure throughout its entire service territory (which encompasses 35 counties in the State of Florida). For both Matthew and Irma, FPL's infrastructure storm resiliency and smart grid investments resulted in improved infrastructure resiliency performance and reduced restoration times. 2016/2017 Hurricanes - Restoration Performance FPL saw significant improvements in overall restoration results. As can be seen in the table below, restoration results for Hurricanes Matthew and Irma show significant improvement vs. Hurricane Wilma. FPL attributes these significant improvements in restoration to the investments made to make its system smarter and more storm-resilient as well as its well-tested restoration processes. This includes FPL's distribution and transmission storm hardening and storm preparedness initiatives, pole inspection programs, smart grid initiatives, vegetation management programs and continuous efforts to improve its restoration processes. Customer Outases 3.2M 1.2M 4.4M % Restored / davs s0%ls 99%/2 s0% 17 All restored / davs 18 4 10 Avs. to restore / davs 5.4 <1"2.r Docket No. 2020O071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 6 of 18) Florida Power & Light Company Docket No. 20170215-EU Staffs First Data Request Request No. 29 - Third Supplemental Amended Page 5 of 9 201612017 llurricanes -frasfrucfrr re Performance To assess the effectiveness of FPL's infrastructure storm hardening investments, the Company utilizes information collected through post-storm forensic data collection and various systems (e.g., FPL's outage management system) to conduct post-storm infrastructure performance analysis. These efforts and analysis allow FPL to quantify and assess its distribution and transmission infrastructure performance including the performance of: hardened and non- hardened facilities; overhead and underground facilities; and smart grid performance. For distribution, this includes reviewing the storm performance of poles, feeders and laterals. For transmission, this includes reviewing the storm performance of poles/structures, line sections and substations. The data demonstrates that hardened infrastructure performed better than non- hardened infrastructure, underground facilities performed better than overhead facilities and smart grid devices prevented a significant number of outages from occurring. Distribution/Transm ission les/ Strrrctrr res Performance The performance of FPL's approximately 1.2 million distribution and transmission poles/structures during Hurricanes Matthew and Irma was excellent, as hardened poles and structures performed as expected by minimizing outages and reducing restoration times. The total number of distribution/transmission poles that failed (i.e., had to be repaired/replaced in order to restore service) during Hurricanes Matthew and Irma was a mere fraction of lo/o of the 1.2 million pole/structure pole population. Additionally, hardened distribution and transmission pole performance was significantly better than non-hardened pole performance, as hardened pole failures were either non-existent (e.g., Hurricane Matthew) or significantly less than non-hardened pole failures (e.9., during Huricane Irma, hardened feeder poles had a 0.02o/o failure rate, while non-hardened feeder poles had a 0.20% failure rate). Also, total poles replaced (i.e., poles that failed * poles that were replaced during follow-up work) were also a mere fraction of lYo of the total pole population and significantly less than the number of poles replaced during Huricane Wilma. FPL notes that for Hurricanes Matthew and Irma, while it did track hardened vs. non-hardened pole performance during restoration, it did not track poles replaced (hardened vs. non-hardened) during follow-up work, since these poles had accomplished their intended purpose of not failing during the storms. Therefore, FPL cannot provide the number of hardened poles replaced during follow up work in Hurricanes Matthew and lrma. Based on the performance of hardened poles that failed during these storms (see table below), it is highly unlikely that there would be a significant number of hardened poles, if any, that needed to be replaced during follow-up work. However, going forward, should the Commission want FPL to track replacement of hardened vs. non-hardened poles during follow-up work, FPL will begin to track this information. FPL attributes this excellent pole performance to its FPSC-approved distribution and transmission storm hardening plan initiatives (e.g., extreme wind load construction standards for distribution poles and replacing wood transmission poles/structures) and its pole inspection programs. Docket No. 20200071-El FPL'9 2020-2029 Storm Protection Plan Exhibit MJ-1, APPENDIX A (Page 7 of 18) Florida Power & Light Company Docket No. 20170215-EU Staffs First Data Request Request No. 29 - Third Supplemental Amended Page 6 of9 Distribution P oles l2l3 I I 17 TotalNumber TotalHardened 1,188,202 124,518* x This number is understated as it includes only poles hardened as a result of FPL's approved hardening plan projects, as FPL does not track or maintain the number of hardened poles installed as a result of new construction (e.g., new feeders or laterals) andlor daily work activities (e.g., maintenance, pole line extensions, relocation projects). There are also other existing poles throughout FPL's service territory that would currently meet the NESC's extreme wind loading criteria and therefore qualif,, as a hardened pole, however, FPL does not currently track or maintain that information. Distribution Pole Failures*Hardened Non- Hardened Total Matthew - 2016 0 408 408 lrma - 2Ot7 26 2834 2860 *Broken/Fallen poles that must be repaired/replaced to restore service Transmission Pole/Structures 12l3 l/l 7 Total 66,685 Concrete 60,694 (91%) Wood 5,991 (9%) Transmission Pole Failures*Hardened Non- Hardened Total Matthew - 2015 0 0 0 lrma -2Ot7 0 E 5 *Broken/Fallen poles that must be repaired/replaced to restore service Distribution Feeders/Laterals Performance As demonstrated below, FPL's hardened feeders performed significantly better than non- hardened feeders and underground feeders/laterals performed significantly better than overhead feeders/laterals. Performance was compared considering feeder and lateral outages that occurred during Hurricanes Matthew and Irma. It is also important to note that during Hurricane Irma, the Construction Man Hours ("CMH") to restore hardened feeders was 50% less than non-hardened feeders, primarily due to hardened feeders experiencing less damage than non-hardened feeders. It is important to note that the majority of outages for overhead facilities resulted from trees that broke andlor fell into FPL's facilities. Many of these trees were outside of easements or public rights of way where FPL is generally allowed to trim. As a result, no additional amount of Docket No. 2020O071-El FPL'9 2020-2029 Storm Protection Plan Exhibit MJ-'l , APPENDIX A (Page B of 18) Florida Power & Light Company Docket No. 20170215-EU Staffs First Data Request Request No. 29 - Third Supplemental Amended PageT of9 traditional tree trimming would help mitigate this issue. Tree damage was particularly impactful on FPL laterals. The two tables below provide feeder and lateral outage performance statistics for Hurricanes Matthew and hma. Pop: Population; Lateral population includes laterals with multi-stage lusing Pop: Population; Lateral population includes laterals witli rnulti-stage fusing FPL notes that, overall, for Hurricane Irma, many more laterals experienced outages compared to feeders, thus laterals required significantly more time to restore (871,000 CMH) compared to feeders (170,000 CMH). FPL continues to promote its Right Tree Right Place initiative and recommends there be changes to state laws and/or local ordinances to restrict the type and location of trees and provide utilities additional trimming rights to address existing tree conditions.l Additionally, FPL notes that day-to-day, hardened feeders perform approximately 40%o better than non-hardened feeders. Transmission Line S hstafions Performance The transmission system's performance was excellent during Hurricanes Matthew and Irma. Equipment and conductor damage was minimal as a result of our investments in transmission hardening and the installation of flood monitoring equipment in those substations located in flood prone areas. Substations that experienced outages were restored in one day. During Hurricanes Matthew and Inna, flood monitoring equipment operated as expected, providing notification which allowed FPL to proactively de-energize three substations (one in Matthew and two in Irma) and prevent potential serious damage from occurring at these substations. I Whele municipalities ale not actively engaged in ensuring appropriate limitations on planting trees in public rights of way, restoration efforts are impeded and made more costly. In fact,_one particular municipality is actively planting "wrong trees in the wrong place," in spite of FPL's direct communications and efforts to encourage its Right Tree Right Place initiative. Matthew Overhead non-Hardened Overhead Hardened Underground Total Out Pop Yo Out Out Pop % Out Out Pop % Out Out Pop %Out Distribution Feeders 280 2,031,1,4%68 t27 9o/o 1.1.493 359 3,245 13% Distribution Laterals 3,473 82,729 4%N.A N.A.N.A.238 101,892 0.2o/o 3,711.1,84,621 2% rRMA- 2017 Overhead Non-Hardened Overhead Hardened Underground Total Out Pop To Out Out Pop o/o Out Out Pop % Out Out Pop % Out Disfiibution Feeders 1,609 1,958 82%592 859 69%a(410 TB%2,286 3,281 t0% Distribution Laterals 20,34r 84,574 24%N.A.N.A N.A.3,167 103,384 4%24,108 187,958 t3% Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page I of 18) Florida Power & Light Company Docket No. 20170215-EU Staffs First Data Request Request No. 29 - Third Supplemental Amended Page 8 of9 The tables below provide substation line section outage performance for Hurricanes Matthew and Irma. * 2 sections were out because substation was proactively de-energized due to flooding** 4 sections were out because substations were proactively de-energized due to flooding *** No underground section was damaged or failed causing an outage; however, the sections were out due to line termination equipment in substations. The table below compares substation outage and restoration performance - Irma vs, Wilma. Smart Grid Performance During Hurricane Matthew and Irma, smart grid devices prevented a significant amount of customer outages, assisted with restoration efforts and reduced restoration time and costs. Specifically, automated feeder switches avoided approximately 664,000 outages during Hurricanes Matthew and Irma. Additionally, FPL's restoration crews are able to "ping" smart meters before leaving an area to ensure that power is, in fact, restored. This prevents restoration crews from leaving an area, thinking all power was restored, only to be called back when the customer informs FPL that they are still without service. FPL is also enhancing an application, first utilized during Huricanes Matthew and Irma, whereby it will be able to "bulk meter ping" smart meters to confirm whether customers have service. Trans, Line Sections 16 350 5%23*846 36/"0 49 0%39 1,245 3o/o ciVr !tl il. ):i.'l 'l,irtit l,lrrl,:ri :l jl I l l:iii"lrrij:li'.]|!|t(: ',.i Iiii li ii 'r,. (,Jr lrilt\ilrl\ t, r:1ir:tl .;lr:l lta,.( )fri :a.l!li irii ii rl I i 1a)r fi'l ,.;il '1rlr1.11rii:1:ici llrjii ii t: :lililirilf )tt (lI r t, T,, a)rt/ ') titli l '1 :'/. Trans. Line Sections 60 306 20%r42**884 L6%13***51 25o/o 2r5 L24I t7% : lr!ii:lq I '),, '(,)t f 111ri1.r7if 11r-11 i t"iri"h'il,!.i, , :.1 I ii trriilt,.lf,lJr tif il 'I r.1 itr Il l:.il.yrLr\ i".l 1.1 .:r,, ,(:)r I i.i( )r,l i ''. |,i,).r)rt ' (l! i :\ .r/( ir.i ,r r(:),rr.jf ii-tt:1,',t)ll.)il,l I ili'r ,{)rit, 'r :iJll De-energized 24r 92 Restored (Davsl 5 7 Matthew - 2016 118,000 lrma - 2Ot7 546,000 '\ i r)r Li : i:' '. I t ;'.'iii ;. r' il ..\v()i:.tf !tl ;'i-!t.Lii!tIrii! Docket No. 2O200071-El FPL'' 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 1 0 of 18) Florida Power & Light Company Docket No. 20170215-EU Staffs First Data Request Request No. 29 - Third Supplemental Amended Page 9 of 9 Estimate of Storm Restoration Cost Savinss Due to Hardenins hased on Storm Damase Model Simulation The attached analysis provides an estimate of transmission and distribution storm restoration savings for Hurricanes Matthew and Irma that resulted from storm hardening completed by FPL prior to the storms' impacts. To calculate these savings, FPL utilized its Storm Damage Model (the same model FPL utilizes to estimate damage when a storm approaches FPL's service teritory) to simulate damage that likely would have occured without hardening and determine the associated required construction man hours (CMH) that would have been required to restore service in the absence of hardening, days to restore in the absence of hardening and associated incremental restoration costs. Additionally, FPL calculated the 4}-year net present value of these savings for two scenarios - (1) a similar storm occurs every 3 years; and (2) a similar storm occurs every 5 years. As indicated on the attached analysis, the 4O-year net present values of the savings related to storm hardening are significant. In the absence of hardening the estimated percentage increase in CMHs for Hurricane Matthew and Hurricane Irma restoration would have been significantly higher (36%o and 40o/o, respectively), days to restore would have been increased (50o/o and 40Yo, respectively) and restoration costs would have been greater (36Yo and 400lo, respectively). Florida Power & Light Company Docket No. 2OI7O2L5-EU Staffs First Data Request Request No. 29 - Third Supplemental Amended Attachment No- 1 Tablof5 Docket No. 20200071-El FPL's 202O-2029 Storm Protection Plan Exhibit MJ-1, APPENDIX A (Page 11 of 18) Estimate of Storm Restoration Cost Savings Due to Hardenins based on Storm Damase Model Simulation tll I2l I31 Cons-truction Man-Hours t4l lsl I61 I7l to Restore l8l tel [10] [111 Storm Restoration Costs lt2l % Increase without Hardening 360/" 40% Additional Storm Restoration Costs without Hardenins s105 s496 Modeled System without Hardening s39s s7.722 Actual s290 s7.226 [ 131 40 Yr NPV [141 Storm Matthew lrma % lncrease without Hardening 36% 40% Additional CMH without Hardening 93.000 483.000 Modeled System Without Hardening 350.000 1.578.000 Actual 257.000 1.195.000 Notes: All costs and CMH are Transmission and Distribution only, and exclusive of follow-up work [ 1 I Calculated based on actual storm restoration requirements [2] FPLstormdamagemodelsimulationresultsofCMHincurredwithouthardening [ 3 I Additional CMH without hardening (Col. 2 - Col. 1] [4] Percent increase in CMH without hardening (Col. 3/Col. 1) [ 5 ] Actual days to restore service [ 6 I Storm damage model simulation result ofthe days to restore seruice without hardening (assumes same restoration resources as actual) [ 7 ] Additional days to restore without hardening (Col. 5 - Col. 5) [ 8 I Percent increase in days to restore without hardening (Col.7/Col.5) [ 9 I Actual cost of restoration._[Ml9gls_elellglilqil3ty [ 10 I Storm damage model simulation result of restoration costs without hardening [ 11 I Additional restoration costs without hardening (Col. 10 - Col.9) [12] Percentincreaseinrestorationcostswithouthardening((Col.LL/Col.9) [ 13 ] 40 year net present value savings assuming a similar storm everylhlee years (calculation details attached) [ 14 I 40 year net present value savings assuming a similar storm everyjyqyears (calculation details attached) Yo lncrease without Hardening 50% 40% Additional Days to Restore without Hardening z 4 Modeled System Without Hardening 5 1,4 Actual 4 10 s1.91s Savings Every 40 Yr NPV 5 Years (2017s) S4o6 53,082 40 Yr NPV Savings Every 3 Years (2017s) s6s3 Docket No. 20200071-El FPL's 2O20-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 12 of 18) Florida Power & Light Company Docket No. 20170215-EU Staff's First Data Request Request No. 29 - Third Supplemental Amended Attachment No. 1 Tab2of5 Estimated Storm Restoration Costs Savings due to Hardening (SMM) 40-Year NPV (20175) Matthew Savings Everv 3 vears Everv 5 vears $6s3 $406 Discount Rate = 7.76% 1 2 3 4 5 6 7 8 9 10 L1" 12 13 t4 15 1.6 L7 18 19 20 2L 22 23 24 25 26 27 $10s $o So S113 5o So Srzr So So $130 $o So s13e So So slso So So S161 $o so S173 so So $18s $o So cPt Multiplier 1.000 1.024 1.049 1.076 1.105 1124 1.152 1.179 1.206 1.233 1.260 1.288 1.317 1.346 1.375 1.404 1.434 1.464 1.495 1.526 1.558 1.590 1.623 1.656 1.691 1.727 1.763 Matthew Slos S107 S110 S113 S1ls Si_i_8 Si-21 5r24 $127 $r.30 S133 Si.36 s13e S143 S146 Si.so Sl_s3 $1s7 Si-61 S16s s16s Si_73 5177 S181 Slss Si.eo Srg+ $510 Slso $o So So so So So So so s]-so $o cPt 2.1% 2.4% 2.40/o 2.6%o 2.7% L.7% 2.5% 2.4% 23% 2.2% 2.2% 2.2% 2.2% 2.2% 2.2% 2.1% 2.L% 2.r% 2.L% 2.L% 2.r% 2.L% 2.L% 2.1% 2.r% 2.r% 2.t% $o So so So 18 So So $o SO 33 so So So so $r s1 69$r Year Matthew Savings Everv 3 vears Everv 5 vears Docket No. 2O2OO071-E\ FPL'S 2O2O-2O29 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 13 of 1 B) 28 29 30 31 32 33 34 35 36 37 38 39 40 Si_e9 So SO Sztq so so S23o So So S24G 2.r% 2.2% 2.2% 2.r% 2.2% 2.L% 2.L% 2J% 2.1% 2.1% 21% 2.L% 2.t% 1.801 1.840 1.880 1.920 1.962 2.004 2.047 2.090 2.135 2.180 2.226 2.274 2.322 Slse S204 S2os S214 $zre 5224 s230 s23s 524L 5246 $2s2 $2s8 s26s So 5o so $zM So So So So So $o S26s $24L So $o So So NPV (2017s)S6s3 $406 Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1, APPENDIX A (Page 14 of 1B) Florida Power & Light Company Docket No. 201-70215-EU Staff's First Data Request Request No. 29 - Third Supplemental Amended Attachment No. 1 Tab3of5 Estimated Storm Restoration Costs Savings due to Hardening (SMM) 40-Year NPV (2017S) lrma Savings Everv 3 vears Everv 5 vears s3,082 51,915 Discount Rate =7.760/o 96s4T 2 3 4 5 6 7 8 9 10 TT L2 13 t4 15 16 tl 18 t9 20 2L 22 23 24 25 26 2l So So ss32 So So Ss71 $o $o S613 so so S6se $o So S107 So So sTss $o $o Ssls $o $o s876 $o So s4e6 $o So $o So $sss So $o $o $o s628 so So $o So 5707 So So $o $o S7s6 So So So $o s8s7 So cPl Multiplier 1.000 1.024 1.049 1.076 1 .105 1.124 1.152 1.179 1.206 1.233 1.260 1.288 1.317 1.346 1.375 1.404 1.434 1.464 1.495 1.526 1.558 1.590 1.623 1.656 1.691 1.727 1.763 cPl lrma s4e6 SsoT Ss20 ss32 Ss4s Sss8 $s71 Ssss $ses S613 s628 S643 $6se 5674 s6e1 5io1 5724 $742 $zsg S77s $7e6 Ssls s83s Ssss $876 S8s7 Ss18 21% 2.4% 2.4% 2.6% 2.7% 1.7% 2.5% 2.4% 23% 2.2% 2.2%o 2.2% 2.2% 2.2% 2.2o/o 2.1% 2.L% 2.1% 2.1% 2.t% 2.r% 2.1% 2.1% 2.1% 2.L% 2.r% 2.1% Year Matthew Savings Everv 3 vears Everv 5 vears Docket No. 2O200071-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 15 of I B) s1, 28 29 30 31 32 33 34 35 36 37 38 39 40 Ss4o So So s1,oo9 So So S1,084 So $o So so $t,zso 2.r% 2.2% 2.2% 2.L% 2.2% 2.L% 2.L% 2.ro/o 2.1% 2.t% 2.r% 21% 2.I% 1.801 1.840 1.880 1.920 1.962 2.004 2.047 2.090 2.135 2.180 2.226 2.274 2.322 se4o $963 se85 S1,oo9 Sr,og+ Si.,058 s1,084 $1,110 $1,136 s1,164 $L,192 5L,z2o s1,2s0 5o $o So s1,009 S1,136 So so So 5o so So So So \64 NPV (2017$)S3,082 S1,gts Docket No. 20200071-El FPL'' 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 16 of 1B) Florida Power & Light Company Docket No. 2017021"5-EU Staff's First Data Request Request No. 29 - Third Supplemental Amended Attachment No. 1 Tab4of5 FPL WEIGHTED AVERAGE COST OF CAPITAL STATE INCOME TAX FEDERAL INCOME T 5.50% 21.jjo/o COMPOSITE INCOME TAX RAT 25.35O/O MODEL DATE 1 -Jan-1 8 Debt Cost Based on Blue Chip Corporate Aaa and Bbb Bonds AFTERTAX PRETAX SOURCE /VEIGHT(1) COST(2)/TD COST /TD COST /TD COST DEBT COMMON 4O.40o/o 59.60% 4.88o/o 10.55% 1.97o/o 6.29% 1.47% 6.290 1.97% 8.42% TOTAL 100.00%8.260/o 7.76% 10.39% AFTER-TAX WACC 7.760/r Docket No. 2O2OOO71-E\ FPL's 2020-2O29 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 17 of 1B) Florida Power & Light Company Docket No. 20170215-EU Staff's First Data Request Request No. 29 - Third Supplemental Amended Attachment No, L Tab5of5 Consu mer Prices (1982-84=1.000) All-U rban (Forecast adjusted to match budget assumptions) lndex % Change 2009 2.L454 2010 2.1805 1.64% 20L1. 2.2494 3.1,6% 2012 2.2959 2.Ot% 2013 2.3296 1.46% 2014 2.3614 1,.62% 2015 2.3702 0.12% 2A16 2.4001. L26% 2077 2.4512 2.t3% 2018 20t9 2020 2021, 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 204L 2042 2043 2044 2045 2046 2.5100 2.5703 2.6311. 2.7083 2.7553 2.8231 2.8909 2.9569 3.0228 3.089s 3.1573 3.2270 3.2981 3.3693 3.44rt 3.51.42 3.5887 3.6642 3.7408 3.8187 3.8972 3.9719 4.0603 4.1449 4.2324 4.3226 4.41.s3 4.5t04 4.6077 2.40% 2.40% 2.60% 2.70% L.73% 2.46% 2.40% 2.28% 2.23% 2.2I% 2.I9% 2.2L% 2.20% 2.1.6% 2.13% 2.r2% 2.12% 2.LO% 2.09% 2.08% 2.06% 2.O70/o 2.07% 2.O8% 2.It% 2.r3% 2.L5% 2.1.5% 2.1.6% Budget Assumptions 2.40% 2.40% 2.60% 2.70% Docket No. 2O200071-El FPL's 2O20-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 18 of 1B) 2047 2048 4.7067 4.8099 2.ts% 219% 2049 2050 2051 2052 2053 2054 2055 20s6 2051 4.9122 5.0167 5.1233 5.2323 5.3435 5.4572 5.5732 5.6917 5.8128 2.13o/o 2.L3% 2.L3% 2.t3% 2.13o/o 2.r3% 2.t3% 2.13% 2.13% Actuals thru 2OL7 from BLS APPENDIX (FPL's Management l iGi) iill ! I I I : f:!ll.nyr t AI l-s-: Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-'l, APPENDIX C (Page 1 of 2) APPENDIXC (FPL' s 2020-2029 Estimated SPP Costs) 2O2O-2O29 FPL SPP Program Costs/Activities Docket No. 20200071-El FPL'9 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX C (Page 2 of 2)rnm Distribution - Pole lnspections Operating Expenses Capital Expenditures Total # of Pole lnspections Transmission - lnsDections Opemting ExPenses Capital Expenditures Total # of Structure lnsPections Distribution - Feeder Hardening (1) (2) Operating Expenses Capital Expenditures Total # of Feeders (3) Distribution Lateml Hardenins (1) (21 Operating Expenses capital Expenditures Total # of taterals (3) Transmission - ReDlacins Wood Structures Operating Expenses Capital Expenditures Tota I # of Structures to be RePlaced Distribution - Vegetation Manasement Labor - Contractor Labor - FPL Equipment - Contractor Equipment - FPL Total # of Miles Maintained Transmission - Vegetation Management Labor - Contractor Labor - FPL Equipment - Contractor Equipment - FPL Total # of Miles Maintained Substation Storm surge/Flood Mitisation Operating Expenses Capital Expenditures Total # of Substations $s5 5s 45.5 1.5 IL.4 nl 46.3 1.5 11.6 0.1 s s s s s s s ) s 5 5 s s s s s s s 3.8 55.3 3.8 50.7 54.5 s 5 s s s s 5 5 51,.7 6.7 0.5 L.7 0.1 3.0 10.010.0 7 54.7 3.8 54.7 3.8 55.3 s s 3.9 56.4 1.0 52.0 53.0 3.9 57.8 4.0 59.3 4.L 60.8 4.2 62.3 s 39.1 s56.1 3.9 56.6 5 s s s 57.9 r.50,000 3s.8 S 32.2 68,000 68,000 59.0 s 154,000 57.9 1,54,000 28.9 68,000 s9.1s 50.3s 61.8 s s4.3 58,000 63.3 154,000 68,000 154,000 57.0 58,000 66.s r.54,000 58.4 68,000 64.9 605.2 s 50.s 499.s s s0.0 150,000 154,OOO 154,000 154,OOO 1.3 s 34.s s 1.0 37.2 L.0 27.9 1.0 67.5 1.0 s s4.6 s 1.0 53.3 1.0 54.6 1.0 56.0 1.0 57.4 s 10.5 489.0 a.u 48.9 s s s s 5 5 68.s s ss.6 s 68,000 68,000 55.7 68,000 628.r 664.9 664.9 573.3 474.5 200.0 s 628.1s 564.9s 554.9s s73.3 300-350 300-350 300-350 300-350 474.5 250-350 200.0 5 534.3 s 3,20s.8 5 s34.3 51"0.1 510-1 r2o.4 s 212.5 342.8 475.6 b5l-4 631.4s647.2s663.4 679.9 696.9 47s.6 5 631.4 S 631.4 5 647.2 5 563.4 500-700 800-900 800-900 800-900 800-900 679.9 596.9 5,LOr.4 800-900 800-900 5 r2o.4 5 272.5 220-230 300-3s0 1,400-1,600 52.7 0.2 s 0.2 5 42.7 5 0.2 5 21.9 5 5 429 S 22.1- 5 900-1,100 300-600 342.8 400-500 s s s s ss2.9 7-8 0.6 1.9 0.1 s 5 s s 5 s 5 s s I s s s s s s $ 5 5 s s 117.9 0.5 s 117.3 s 463.7 5 r4.7 5 11s.9 s o.z 39.1 47.7 1.3 11.9 0.1 47.8 4.4 !2.O u.f 46.9 'J-.4 Lr.7 0.1 46-9 1.5 11,.7 0.1 47.L 1.5 11.8 0.1 47.1 1..6 l-1.8 0.1 44.6 5 43.8 1.s s 1.5 tt.2 5 r.1.0 0.1 s 0.1 1.4 39.3 46.4 1.5 1L.6 0.1. 59.6 7.2 0.5 1.8 0.1 61.1 s 61.3 s 60.2 15,200 15,200 60.2 L5,200 60.6 15,200 50.6 s s9.5 s s8.s s s7.4 s s6.4 15,200 rs,200 15,200 1s,200 15,200 0.6 1.8 0.1 595.7 77.7 5.3 17.9 1.4 15,200 5.7 0.5 0.1 9.0 s 8.9 7,000 7,000 6.5 0.5 'J-.7 0.1 6.7 0.5 1-.7 0.L 0.5 0.1 7.4 5 0.6 5 1.8 5 0.1 s 7.6 0.6 L.9 0_1 7.9 0.5 2.O o.? 7.27.2 s 5 ) s s s 5 5 s s 8.9 7,000 s.os 9.75 s.75 9.9S !o.2 7,000 7,000 7,000 7,oo0 7,000 10.4 7,OO0 to.7 7,OO0 96.4 s 9.6 5 s s s s 23.0 23.O 7.7 7.7 5 s10.0 5 10.0 S 2 5to7 Total SPP Costs (L) Project level detail for 2020 in Appendix (2) Costs include previous year(s) projects carried over to current year's project costs and future year's preliminary project costs (e.9., engineering) (3) # of feeders or lateral to be initiated in the current year s s64.7 sx,o9o.7 s 1,19s.8 5!,245.6 S1,290.e S1,014.9 5 832.7 I 8s1.0 S 869.7 S 889.0 S10,24s.0 $ L,27r.r Total SPP Costs An n ual Average Cost2023FPL SPP Programs 20262025)o242022202L2420 2027 2028 2029 Docket No. 20200071-El FPL'9 2020-2029 Storm Protection Plan Exhibit MJ-1, APPENDIX D (Page 1 of 14) APPENDIXD (FPL's Hardening Design Guidelines) Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX D (Page 2 o'f 14) @FPL Distribution Design G uidelines The following guidelines will be used to standardize the design of FPL's overhead distribution facilities when practical, feasible, and cost effective. General 1. FPL has made a change to adopt Extreme Wind loading (EWL) as the design criteria for: (1) new pole line construction, (2) pole line extensions, (3) pole line relocations, (4) feeder pole replacements on multi-circuit pole lines, and (5) feeder pole replacements on Top-ClF feeders. Reference the Pole Sizing section (pg. 7) for the guidelines to determine the necessary pole class and type for all work. Refer to the Distribution Engineering Reference Manual Addendum for calculating pole sizes for specific framing under extreme wind loading conditions. 2. For maintenance, existing non-top-ClF pole lines may be evaluated using NESC combined ice and wind loading with Grade B construction. This represents the loading prior to the adoption of extreme wind loading. lf the pole must be replaced, refer to the Pole Sizing section for the minimum class pole to be installed. Refer to the Distribution Engineering Reference Manual (DERM) Section 4 for calculating pole sizes for specific framing under the NESC combined ice and wind loading conditions. 3. Every attempt should be made to place new or replacement poles in private easements or as close to the front edge of property (right of way line) as practical. 4. Overhead pole lines should be placed in front lot lines or accessible locations where feasible. 5. When replacing poles, the new pole should be set as close as possible to the existing pole to avoid the creation of a new pole location. 6. Poles are not to be placed in medians. 7. Concrete poles are not to be placed in inaccessible locations or locations that could potentially become inaccessi ble. 8. Please reference the minimum setting depth charts located in DCS D-3.0.0 which shows the increased setting depths for concrete poles. 9. Every effort should be made not to install poles in sidewalks. lf a pole must be placed in a sidewalk, a minimum unobstructed sidewalk width of 32" must be maintained to comply with the American Disabilities Act (ADA) requirements. 10. lf concrete poles are required by the governing agency as a requirement of the permit, and if the work is being done solely for FPL purposes (feeder tie, etc.), then the concrete Docket No. 2O2O0071-E\ FPL's 2020-2029 Storm Protection PIan Exhibit MJ-1, APPENDIX D (Page 3 of 14) poles are installed with no differential charges. lf the concrete poles are required as a condition of the petmit, and the work is being done at the request of a customer (and fall outside the Pole Sizing Guidelines) to provide service to the customer or relocation by request of the customer, then the customer is charged a differential cost for the concrete poles. 1 1. V/hen installing new OH secondary spans, multiplexed cable should be used instead of open wire secondary. When reconductoring or relocating existing pole lines containing open wire secondary, replace the open wire with multiplexed cable whenever possible. The system neutral should not be removed when replacing open wire secondary with multiplexed cable if primary wire is present. lt is necessary to maintain a separate system neutral for operational continuity of the system. 12. When designing overhead facilities where secondary and service crossings exist across major roadways, the engineer should take into consideration placing these secondary street crossings underground. Operations Director Approval is required. 13. V/henever extending a feeder, reconductoring a feeder section, or attaching a device to a feeder, always reference the nearest existing disconnect switch number on the construction drawing and show the dimension to the switch. This will aid the Control Centers in updating their switching system and will aid AMG in updatlng AMS, as well as provide the Productioh Lead and Distribution Tech information needed for switching and RC Off requests. 14. When an overhead feeder crosses any obstacle to access (i.e. - water bodies such as rivers, canals, swamps; Iimited access RAff such as interstate highways, turnpikes, and expressways; etc.) disconnect switches should be placed on both sides of the obstacle in order to isolate the crossing in the event of a wiredown situation. See the example in the Crossing Multi-Lane Limited Access Highways section (pg. 5). 15. Projects that affect or extend feeder conductors should always be coordinated with Distribution Planning to ensure optimization of the distribution grid. Taking into account future feeder plans such as, feeder boundary changes, sectionalizing devices, integration of automation and remotely controlled protection. As always, good engineering judgment, safety, reliability, and cost effectiveness should be considered. ln addition to these guidelines, all distribution facilities shall be engineered to meet the minimum requirements set forth in all applicable standards and codes including but not limited to the National Electrical Safety Code (NESC), Utility Accommodation Guide, and FPL Distribution Construction Standards. Please contact a Distribution Construction Services (DCS) analyst with any questions. @ Docket No. 20200071-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX D (Page 4 of 14) FPL New Construction 1. When installing a new feeder, lateral, or service pole, reference the Pole Sizing section for the guidelines to determine the necessary pole class and type to meet Extreme Wind Loading (EWL) for the wind zone region (105, 130, or 145 MPH). 2. Modified Vertical is the preferred framing for accessible locations. Post-top (single phase) or Cross Arm (multi-phase) is the prefened framing for inaccessible locations. 3. During the design of new pole lines in developed areas, field visits should be conducted to ensure the design would cause minimum impact to the existing propefty owners. 4. Overhead pole lines should not be built on both sides of a roadway unless agreed to by the customer nor should multi-circuit pole lines be created. When designing main feeder routes all viable options must be reviewed (including alternative routes) and consideration should be given to constructing the line underground. lf undergrounding is chosen and it is no!-the least cost option, approval is required from the Engineering & Technical Services Director and the Operations Director. ln addition, prior to proceeding with any pole lines on both sides of a street or any multi-circuit feeder design recommendations, Operations Director approval is required. 5. When there is an existing pole line in the rear easement, every effort should be made not to build a second pole line along the right of way. 6. When installing a pole line within a transmission line, accessible distribution poles should be concrete. Distribution concrete poles should not be installed in inaccessible locations. 7. lf concrete distribution poles are installed in a concrete transmission line, there is no additional charge to the customer (the concrete poles are FPL's choice and not requested by the customer). Coordination between the transmission and distribution design is critical and consideration should be given to a design with alltransmission poles versus distribution intermediate poles. This approach will reduce the overall number of poles. 8. \Nhen transmission is overbuilding (concrete structures), along an existing distribution corridor, if the distribution wood poles are in good condition, do not replace. lf wood poles need to be changed out or relocated, replace with concrete poles to match the transmission pole type. Coordination between the transmission qnd distribution design is critical and consideration should be given to a design with alltransmission poles versus distribution intermediate poles. This approach will reduce the overall number of poles. @ Docket No. 20200071-El FPL'S 2O2O-2O29 Storm Protection Plan Exhibit MJ-1 , APPENDIX D (Page 5 of 14) FPL Existing / Maintenance 1. When installing and/or replacing a feeder, lateral, or service pole on an existing pole line, reference the Pole Sizing section for the guidelines to determine the necessary pole class and type. 2. V/hen installing or replacing a feeder pole on a feeder that serves a Top-ClF customer, ensure the new pole will meet extreme wind loading (versus just a minimum class 2 or lllH pole) so that it will not have to be replaced when the feeder is hardened as a hardening project. Please reference the Storm Secure Hardening SharePoint Site: Distribution > Central Maintenance > Central Contractor Services > Hardening > Reports > Feeder Prioritization_xxxxxx Snapshot for the list of Top-ClF feeders within the Prioritization File. 3. When extending pole lines, the existing pole type should be used as a guide for the new pole type. lf concrete poles are requested by the customer or are required as a condition of the permit and fall outside the Pole Sizing Guidelines, the customer will pay a differential charge for the concrele poles. 4. V/hen replacing pole(s) and anchor(s) with larger self-supporting concrete poles, caution should be used, as the property owners in the vicinity of the pole will not necessarily perceive this concrete pole as a better choice. 5. When replacing poles on a multi-circuit feeder the replacement pole should be designed for Extreme \Mnd Loading using Pole Foreman to calculate the wind loading. Relocations 1. \Men relocating a pole line, reference the Pole Sizing section for the guidelines to determine the necessary pole class and type to meet Extreme Wind Loading (EWL) for the wind zone region (105, 130, or 145 MPH). 2. When relocating either a concrete or wood pole line for a highway improvement project, the existing pole line 'type' should be used as a guide for the pole type replacements. There is no additional charge for concrete poles if the existing poles being relocated are concrete (like for like relocation). lf the customer requests an "upgrade" to concrete poles, a differential is charged. 3. Reimbursable relocations will equal the cost to relocate the line built to Extreme Wind Loading (plus removal of old), including indirect cost. 4. Agency relocation projects should be coordinated with Distribution Planning to ensure optimization of the distribution grid and to take into account future feeder plans and potential feeder boundary changes. @ Docket No. 2O200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX D (Page 6 of 14) trPL Grossing Multi-Lane Limited Access Highways The following guidelines are to be used when an overhead feeder crosses any obstacle to access (i.e. -limited access RA// such as interstate highways, turnpikes, and expressways, etc.). Similar consideration can be given to water bodies such as rivers, canals, swamps. 1. Underground installation is the preferred design for all new crossings (1, 2, 3 phase) of multi- lane limited access highways & hardening of existing crossings; reference Fig 1. Limited Access Highway Crossing Schematic (Preferred). lf underground construction is not feasible, reference Fig 2. Limited Access Highway Crossing Schematic (Alternate). 2. Underground crossing for 1 & 2 phases should be designed for potential three phase feeder size cable. Ensure riser poles meet or exceed extreme wind design for the designated region. Forfurther information, please contact the CMC Hardening Group. 3. For accessible overhead crossings, use concrete poles (lll-H or greater square concrete pole) for the crossing poles and minimum Class 2 wood poles for the intermediate poles. For inaccessible overhead crossings, minimum Class 2 wood poles should be used for the crossing and intermediate poles. All poles installed should meet or exceed EWL for the designated region. 4. Every attempt should be made to install storm guys & back guys for the highway crossing poles. Storm guys are not required on the adjacent poles. 5. Frame the highway crossing pole double dead-end (See LOC 2 & 3 Fig 2 below). 6. lnstall disconnect switches on adjacent poles on both sides of the crossing (or as required by field conditions) to isolate the feeder section for restoration. Switches are to be installed in accessible locations that can be reached with readily available aerial equipment. Switches should be installed at -42 Above Grade (AG), with a maximum pole size of 50' wood or 55' concrete. lf there is no load between the nearest existing switch and the crossing, an additionalswitch is not required. 7. Check for uplift on all poles. Refer to DERM Section 4.2.3 Page 4 o'f 16 & DCS E-4.0.2 and E-4.0.3. Back guys should be installed at the adjacent pole if required for uplift. 8. Ensure to maintain proper clearance above or under all highways as dictated by the owner of the RA/V & DCS 8-3.0.1. 9. Any conductors crossing the highway that have splices should be replaced with a continuous conductor (NESC 261H2a). See Fig 2 below for additional notes on the use of splices on adjacent spans. One additional set of dead-end insulators at the highway crossing pole may be used if this eliminates the need for splices when installing a new pole. Docket No. 2O2OOO71-E\ FPL's 2020-2O29 Storm Protection Plan Exhibit MJ-1 , APPENDIX D (Page 7 of 14) @trPL 10. Engineers must conduct a pre-design meeting with the Production Lead to ensure the feasibility of the proposed design. 1 1. As always, use good engineering judgment to produce a quality, cost-effective design Fig 1. Limited Access Highway Crossing Schematic @referred) Fig 2. Limited Access Highway Crossing Schematic (Alternate) INSTALL ACCESSIBLE DISCONNECT SWTCHES REMOVE OH &INSTALL ACCESSIBLE DISCONNECTSWTCHES 3 #568T-23t(V &3/0T-N lF - FNc -{lF - o o o o-- tsI =6ou o oUF E e--o DOWNGUY FOR DEADEND OUTSIDE OF LIMITED ACCESS HIGHWAY. AOJUST LOCATION OF POLE FOR FIELDCONDITIONS ALTERNATE LOCATION FOR RISERPOLE TO PREVENT DOWN GUY IN LIMITED ACCESS RIW Dtsc sw @ -42'AG MAX POLE SIZEr 50'wooD,55'coNcRETE INSTALL ACC€SSIBLE DISCONNECTSWITCHES NO SPLICES INSTALL ACCESSIBLE DISCONNECTSWITCHES 3 #568T-23KV & 568T-N -}> CHECK FOR UPLIFT & INSTALL DOWN GUYS IF f f I REQUIRED o ----) (---(--- ErII 6aUoo odE: J J e----a a;-l\-a Drsc sw @ -42' AG MAX POLE SIZE: s0'wooo, 5s' coNcRETE (sw,TcHLocAnoN MAY VARY BASED ON FIELD COA'D'T'ON'S. FEFERENCE D'STRIBUTION DES'GN GU'OEL'i'ES,I J u L J INSTALL INTERMEDIATE POLE IN EFFORTTO REDUCE SPANS INSTALLSTORM GIJYS A BACK GUY @ Docket No. 2O2O0071-E\ FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX D (Page I of 14) FPL Pole Sizing FPL has made a change to adopt Extreme \Mnd loading (EWL) as the design criteria for: (1) new pole line construction, (2) pole line extensions, (3) pole line relocations, (4) feeder pole replacements on multi-circuit pole lines, and (4) feeder pole replacements on Top-ClF feeders. Reference the Pole Sizing Guidelines (at the end of this section) to determine the necessary pole class and type. 2. When installing or replacing a feeder pole on a feeder that serves a Top-ClF cuslomer, ensure the new pole will meet the extreme wind design (versus just a minimum class 2 or lllH pole) so that it will not have to be replaced when the feeder is hardened as a hardening project. Please reference the Storm Secure SharePoint Site: Distribution > Central Maintenance > Central Contractor Services > Hardening > Reports > Feeder Prioritization_xxxxxx Snapshot forthe list of Top-ClF feeders within the Prioritization File. 3. For maintenance, existing non-top-ClF pole lines may be evaluated using NESC combined ice and wind loading with Grade B construction. This represents the loading prior to the adoption of extreme wind loading. lf the pole must be replaced, refer to the Pole Sizing Guidelines for the minimum class pole to be installed. 4. When performing work on an existing pole, and the pole requires change out (e.9., clearance height, location, condition, or the ability to suppod the planned activity), use the Pole Selection Guidelines. lf the planned work can be done without changing out the pole and the pole meets minimum NESC grade B wind loading guidelines, use the existing pole(s). 5. Foreign pole owners are required to discuss design requirements with FPL prior to construction. FPL will assist with identifying the targeted poles. 6. Efforts should be made to ensure that span distances do not exceed 250 ft. for wood poles and 350 ft. for concrete poles even if longer spans would meet the Extreme Wind Loading requirements. 7. Concrete poles are prefered in the cases where replacement costs would be extremely high (i.e. duct system riser pole, comer poles with multiple circuits, critical poles, etc.). No differential is charged for poles in this case. @ Docket No. 2020O071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1, APPENDIX D (Page I of 14) FPL Lateral Pole Policv 1. All existing poles must meet NESC grade "8" as an absolute minimum. 2. lf a pole is modified in any way, it must meet NESC grade "B" at a minimum when completed. 3. lf you become aware of a pole which does not meet NESC "8" or DCS standards, the pole must be immediately upgraded or modified to meet the NESC & DCS standards. 4. All replacement lateral poles must meet NESC'EWL' and be compliant with FPL Pole Policies. 5. Restoration of lateral poles should comply with the class 2/3 table. For oractical purposes this means... 1. Engineer all poles to the NESC EWL standards and to meet FPL policies. 2. Run Pole Foreman on all designed WR's and poles suspected of being substandard. 3. lf you are completing substantial work on a pole, such as installing additional cables, upgrading a TX, re-conductor or new framing: The pole must meet EWL and the revised class standards. 4. lf you are completing minor like for like work such as replacing a fuse switch, insulator or other small equipment: The pole must meet NESC grade "8" and DCS standards at a minimum when the work is complete. a. Note: Most FPL poles currently exceed NESC grade "8". This means there is some leeway for minor changes in wind loading and clearances while maintaining the NESC grade "B" minimum. 5. Temporary or time constrained poles may be installed to NESC grade "N" temporary construction. This is relatively complicated, requires sound engineering judgment and should be avoided. lf grade NESC grade "N" is applied, a replacement pole engineered to NESC EWL must be designed and installed as soon as practical and not longer than 6 months after NESC grade "N" was installed. 6. Class 4 poles may only be installed for SVC, SEC, SL, OL's. Once the available stock of class 4 is used up no more will be ordered and FPL will install class 3 poles for these applications. 7. ln no case should class 4 poles be installed in laterals. Contact Enoineering Standards for situations that still are in question after careful consideration Docket No. 20200071-El FPL'9 2020-2029 Storm Protection Plan Exhibit MJ-1, APPENDIX D (Page 10 of 14) @FPL Critical Pole Definitions & Sizing: The following list comprises what will be considered critical poles. When installing and/or when doing work that othenruise requires the replacement of an accessible critical pole, use concrete. lf the pole is inaccessible, use a minimum Class 2 wood pole, or consider relocating the equipment to an accessible concrete pole. For all critical poles run Pole Foreman to calculate the wind loading for the specified pole and attachments combination. Additional information can be found in DERM Section 4 - Addendum for Extreme Wind Loading tables 4.2.2-8,4.2.2-9, or 4,2.2-10. ') Every attempt shoutd be made to instatl storm guys where feasible and practical. 't Frame in-line per standard to equatly distribute weight.t\ Refer to the Crossrng Multi-Lane Limited Access Highways section for details. a) Contact CMC Hardening Group before designing new multi-circuit line. 5) To eliminate field drilting, inventory Speciat Dritl Pole & create Pole Boring Detailfor all lll-H Poles on Hardening Jobs. Critical Pole ldentifier For new or when replaced use minimum Ill-H Square Concrete Poles (minimum Class 2 if inaccessible) Critical Poles '1"1 switch out of substation or duct system riser pole DCS Reference UH-15.0.0 Fig 2 uH-15.3.1 Critical Poles Automated Feeder Switches (AFS), DGS Reference c-9.2.0 lnterstate Grossingsr'3 E-l0.0.0 Fig 2 Aerial Auto Transformers2 l-9.0.0 Poles with multiple primary risers uH-15.2.0 3 phase transformer banks 3 -'100 kVA and laroel l-52.0.2 Multi-circuit polesa Three-phase reclosers2 (or Three single-phase reclosers) Frame as existing c-8,0.0 Capacitor Banks2 Regulators J-2.0.2 & J-2.0.3 t-10.1.1 PrimaryMeter K-28-0.0 lntelliruptors c-9.5.0 All references are to the Distribution Construction Standards (DCS) Docket No. 20200071-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX D (Page 11 ot 14) @FPL Pole Sizing Guidelines: The following tables should be used as guidelines to help determine pole class and type, when installing and/or replacing a feeder, lateral or service pole. Feeder or Three Phase Lateral: When designing for EWL run Pole Foreman to calculate the wind loading for the specified pole and aftachments combination. Additional information can be found in DERM Section 4 - Addendum for Extreme Wind Loading tables 4.2.2-8,4.2.2-9, or 4.2.2-10. Sin or Two Phase Lateral: Nofes;1) To be used when replacing equipment or instalting new equipment on an existing pole4 Reference Critical Pole List on pg.8. 'J Use of tlLG potes shoutd be timited to existing concrete lateral pote lines whose wire s2e is less than or equal to 1/0A. a) Use Pole Foreman to calculate wind toading on all poles. Pole Line Description New Gonstruction, Line Extension, & Pole Line Relocation Existing lnfrastructure 1 lnstalling or Replacing a Critical Pole2 Wood Use minimum Class 2 Wood Pole to meet EWL Use Class 2 Wood Poles Use lll-H (Accessible) or Class 2 Wood (lnaccessible) Concrete Use minimum lll-H Concrete Pole to meet EWL Use lll-H Concrete Poles Use lll-H Concrete Poles Pole Line Description New Construction, Line Extension, Pole Line Relocation, Pole Replacement, & lntermediate Poles Existing lnfrastructurel lnstalling or Replacing a Critical Pole' 105/135 mph: Use minimum Class 3 MUSI meet EWL 105/135 mph: Use minimum Class 3 Wood 145 mph: Use minimum Class 2 MUST meet EWL 145 mph: Use minimum Class 2 Use lll-H (Accessible) or Class 2 Wood (lnaccessible) Concrete Use minimum lll-G3 or lll-H poles Use lll-G" or lll-H poles to match existinq line Use lll-H Concrete Poles @ Docket No. 20200071-El FPL'9 2020-2029 Storm Protection Plan Exhibit MJ-'1 , APPENDIX D (Page 12 of 14) F]'L Basic Span Lengths for selected poles for Extreme Wind Loading: Facility Phase(s)Wire size Pole size Recommended Maximum Span Lengtha (FPL with 2 attachments - FPL ONLY) 105 MPH I30 MPH I45 MPH Feeder 3#568 ACAR Class 2 1 80' - 230'1 25' - 200'90'- '140' 3#3/0 AAAC Class 2 '180' - 250'17}',-250'.120',-220' Lateral 3PH 3#1/0 AMC Class 2 1 80', - 250',1 80' - 250',155'- 250' 2PH 2#1t0 A AC Class 3 1 80' - 250''180' - 250'125'-250'- 1PH 1#1/0 AAAC Class 3 1 80' - 250'1 80'- 250'1 50' - 250' aThe lower number equates to the maximum span for FPL primary and two 1" foreign attachments. The higher number equates to the recommended maximum span for FPL primary only. Reference the DERM Addendum for EWL tables 4.2.2-8, 4.2.2-9, 4.2.2-10 when adding additionalattachment(s) or equipment. As always, good engineering judgment, safety, reliability, and cost effectiveness should be considered. Service / Secondary / St. Light I Outdoor Light Poles: When installing or replacing a service or street light poles, a minimum of Class 3 wood pole should be used. Specific calculations may require a higher class pole for large quadruplex wire. For any questions on pole sizing to meet EWL or running Pole Foreman to calculate wind loading, please contact the CMC Hardening Group. Christopher T. Wright Senior Attorney - Regulatory Florida Power & Light Company 700 Universe Blvd Juno Beach, FL 33408-0420 Phone: (561)691-7144 E-mail: Christoper.Wrieht@fpl.com Florida Authorized House Counsel; Admitted in Pennsylvania April10,2020 VA ELECTRONIC FILING Mr. Adam Teitzman Division of the Commission Clerk and Administrative Services Florida Public Service Commission 2540 Shumard Oak Blvd. Tallahassee, FL 32399 -0850 Re: Docket No. 20200071-El Review of 2020-2029 Storm Protection Plan pursuant to Rule 25-6.030, F.A.C., X'lorida Power & Lisht Comnanv Dear Mr. Teitzman: Enclosed for electronic filing in the above-referenced docket, please find Florida Power &Light Company's Petition for Approval of the 2020-2029 Storm Protection Plan pursuant to Rule 25- 6.030, F.A.C., together with the Direct Testimony of FPL witness Michael Jarro and Exhibit MJ- 1 . Copies of this filing will be provided as indicated on the enclosed Certificate of Service. If you or your staff have any question regarding this filing, please contact me at (561) 691-7144. Respectfully submitted, s/Christopher Wr Christopher T. Wright Authorized House Counsel No. 1007055 Enclosure FJ'L" Florida Power & Light Company 700 Universe Boulevard, Juno Beach, FL 33408 Page | 1 BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION Review of 2020-2029 Storm Protection Plan pursuant to Rule 25-6.030, F.A.C., Florida Power & Light Company Docket No. 20200071-EI Filed: April 10,2020 PETITION OF FLORIDA POWER & LIGHT COMPAi\Y FOR APPROVAL OF THE 2020-2029 STORM PROTECTION PLAN L INTRODUCTION Florida Power & Light Company ("FPL" or the "Company") hereby files this petition (the "Petition") requesting that the Florida Public Service Commission ("Commission") approve the proposed Transmission and Distribution ("T&D") Storm Protection Plan for the years 2020-2029 (hereinafter, the "SPP") pursuant to Section 366.96, Florida Statutes ("F.S.") and Rule 25-6.030, Florida Administrative Code ("F.A.C."). FPL's SPP is, in large part, a continuation and expansion of its previously approved and successful storm hardening and storm preparedness programs. FPL submits that the storm hardening and storm preparedness programs included in its SPP are appropriate and necessary to achieve the legislative objectives of Section366.96, F.S., to protect and strengthen T&D infrastructure from extreme weather conditions, reduce outage times and restoration costs, and improve overall service reliability to customers.l In support of this Petition, FPL states as follows: 1. The name and address of the Petitioner is: Florida Power & Light Company 700 Universe Blvd Juno Beach, FL 33408 I The recovery of costs associated with the SPP, as well as the actual and projected costs to be included in FPL's Storm Protection Plan Cost Recovery Clause, will be addressed in subsequent and separate Storm Protection Plan Cost Recovery Clause dockets pursuant to Rule 25-6.031, F.A.C. The Commission has opened Docket No. 20200092-EI to address Storm Protection Plan Cost Recovery Clause petitions to be filed the third quarter of 2020. 1 2. FPL is a corporation organized and existing under the laws of the State of Florida and is an electric utility as defined in Sections 366.02(2) and366.96,F.S. FPL provides generation, transmission, and distribution service to nearly five million retail customer accounts. 3. Any pleading, motion, notice, order or other document required to be served upon the petitioner or filed by any party to this proceeding should be served upon all of the following individuals: Kenneth A. Hoffrnan Vice President, Regulatory Affairs Florida Power & Light Company 215 South Monroe Street, Suite 810 Tallahassee,FL 3230I Phone: 850-521 -3919 Fax: 850-521-3939 Email : ken.hoffman@fpl.com John T. Burnett Vice President and Deputy General Counsel Christopher T. Wright Senior Attorney Florida Power &Light Company 700 Universe Boulevard Juno Beach, FL 33408-0420 Phone: 561-691-7144 Fax: 561-691-7135 Email : j ohn.t.burnett@fpl.com Email : christopher.wri ght@fpl. com 4. The Commission has jurisdiction pursuant to Section 366.96, F.S., and Rule 25- 6.030, F.A.C. 5. This Petition is being filed consistent with Rule 28-106.201, F.A.C. The agency affected is the Commission, located at2540 Shumard Oak Boulevard, Tallahassee, Florida32399. This case does not involve reversal or modification of an agency decision or an agency's proposed action. Therefore, subparagraph (c) and portions ofsubparagraphs (b), (e), (0 and (g) ofsubsection (2) of Rule 28-106.201, F.A.C., are not applicable to this Petition. In compliance with subparagraph (d) of Rule28-106.201, F.A.C., FPL states that it is not known which, if any, of the issues of material fact set forth in the body of this Petition may be disputed by any others who may plan to participate in this proceeding. The discussion below demonstrates how the petitioner's substantial interests will be affected by the agency determination. 2 il. BACKGROUND AND OVERVIEW 6. On June 27, 2019, the Governor of Florida signed CS/CS/CS/SB 796 addressing Storm Protection Plan Cost Recovery, which was codified in Section 366.96, F.S. Therein, the Florida Legislature found that it was in the State's interest to "strengthen electric utility infrastructure to withstand extreme weather conditions by promoting the overhead hardening of electrical distribution and transmission facilities, the undergrounding of certain electrical distribution lines, and vegetation management," and for each electric utility to "mitigate restoration costs and outage times to utility customers when developing transmission and distribution storm protection plans." Section 366.96(1), F.S. The Florida Legislature directed the Commission to adopt rules to specify the elements that must be included in each utility's SPP. Section366.96(l), F,S. 7. Rule 25-6.030, F.A.C., requires each utility to file an updated SPP at least every three years that covers the utility's immediate ten-year planning period. Rule 25-6.030, F.A.C., also specifies the information to be included in each utility's SPP. Consistent with these requirements, FPL is herein submitting its SPP for the ten-year period of 2020-2029, which is provided as Exhibit MJ-1. 8. FPL's SPP is largely a continuation and expansion of its existing storm hardening and storm preparedness programs, which were most recently approved in FPT 's 2019-2021Storm Hardening Plan.z These existing hardening and storm preparedness programs have already demonstrated that they have and will continue to increase T&D infrastructure resiliency, reduce restoration times, and reduce restoration costs when FPL's system is impacted by extreme weather 2 See In re: Petitionfor Approval of Florida Power & Light Company's 2019-202I Storm Hardening Plan pursuantto Rule 25-6.0342, F.A.C.,DocketNo.20180144-EI, OrderNo. PSC-2019-0364-CO-EI (Fla. PSC Aug.27,2019) (making Order No. PSC-2019-0301-PAA-EI issued on July 29,2079, effective and final). aJ events. FPL performed an analysis of Hurricanes Matthew and Irma that indicated the restoration construction man-hours ("CMH"), days to restore, and storm restoration costs for these storms would have been significantly higher without FPL's storm hardening programs.3 9. While FPL's nation-leading initiatives have made significant progress toward strengthening FPL's infrastructure, FPL must continue its T&D storm hardening and storm preparedness plans and initiatives. Storms remain a constant threat and Florida is the most hurricane-prone state in the nation. With the significant coast-line exposure of FPL's system, and the fact that the majority of FPL's customers live within twenty miles of the coast, a robust storm protection plan is critical to maintaining and improving grid resiliency and storm restoration as contemplated by the Legislature in Section 366.96. 10. As part of its SPP, FPL will continue the previously approved storm hardening and storm preparedness programs to achieve the legislative objectives of promoting the overhead hardening of T&D facilities, the undergrounding of distribution lines, and vegetation management to reduce restoration costs and outage times to customers and improve the overall service reliability for customers. In addition, FPL proposes to implement a new substation storm surge/flood mitigation program. FPL submits that the SPP will continue and expand the benefits of hardening, including improved day-to-day reliability, to all customers throughout FPL's system. I 1. Submitted herewith and in support of FPL's SPP is the Direct Testimony of Michael Jarro and Exhibit MJ-l, which includes FPL's SPP for the period of 2020-2029 and supporting schedules. 3 See FPL's Third Supplemental Response to Staffs First Data Request No. 29 ("Third Supplemental Amended") in Docket No. 20170215-EI, which is provided as Appendix A to Exhibit MJ-1. 4 III. STORM PROTECTION PLAN A. Description of the SPP Programs 12. FPL's SPP is largely a continuation and expansion of the following previously approved storm hardening and storm preparedness programs: Pole Inspections - Distribution Program Structures/Other Equipment Inspections - Transmission Program Feeder Hardening (EWL) - Distribution Program Lateral Hardening (Undergrounding) - Distribution Program Wood Structures Hardening (Replacing) - Transmission Program Vegetation Management - Distribution Program Vegetation Management - Transmission Program In addition, FPL proposes to implement a new Substation Storm Surge/Flood Mitigation-Program to protect T&D substations and equipment that are susceptible to storm surge or flooding during extreme weather events. These SPP programs are summarized below and a detailed description of each SPP program, consistent with Rule 25-6.030(3Xd), F.A.C., is provided in Section IV of Exhibit MJ-i. 13. The Pole Inspection - Distribution Program will continue FPL's existing Commission-approved distribution pole inspection program, which is an eight-year pole inspection cycle for all distribution poles that targets approximately 1/8 of the system annually (the actual number of poles inspected canvary somewhat from year to year). With approximately 1.2 million distribution poles as of year-end 2019, FPL expects to inspect approximately 150,000 poles annually. The estimated 2020-2029 annual average cost for the Pole lnspection - Distribution Program is approximately $61 million per year, which is consistent with historical 5 costs for the existing distribution pole inspection program.a A detailed description of the Pole Inspection - Distribution Program is provided in Section IV(A) of Exhibit MJ-1. 14. The Structures/Other Equipment Inspections - Transmission Program will continue FPL's current Commission-approved transmission inspection program which requires: (a) transmission circuits and substations and all associated hardware to be inspected on a six-year cycle; (b) wood structures to be visually inspected from the ground on an annual basis and climbing or bucket truck inspections to be conducted on a six-year cycle; and (c) steel and concrete structures to be visually inspected on an annual basis and climbing or bucket truck inspections to be conducted on a ten-year cycle. FPL expects to inspect approximately 68,000 transmission structures annually. The estimated 2020-2029 annual average cost for the Structures/Other Equipment Inspections - Transmission Program is approximately $50 million per year, which is consistent with historical costs for the existing transmission inspection program.s A detailed description of the Structures/Other Equipment Inspections - Transmission Program is provided in Section IV(B) of Exhibit MJ-1. 15. The Feeder Hardening (EWL) - Distribution Program will continue FPL's existing Commission-approved approach to harden existing feeders and certain critical distribution poles, as well as FPL's initiative to design and construct new pole lines and major planned work to meet the extreme wind loading ("EWL") criteria set forth in the National Electric Safety Code. FPL a Note, the2020-2029 program costs shown above are projected costs estimated as of the time of this filing. Subsequent projected and actual costs could vary by as much as l}Yoto l1%io. The annual projected costs, actual/estimated costs, actuals costs, and true-up of actual costs to be included in FPL's Storm Protection Plan Cost Recovery Clause will all be addressed in subsequent and separate Storm Protection Plan Cost Recovery Clause filings pursuant to Rule 25-6.031, F.A.C. The Commission has opened Docket No. 20200092-EI to address Storm Protection Plan Cost Recovery Clause petitions to be filed the third quarter of2020. 5 See footnote 4. 6 expects to harden approximately 280-350 feeders annually, with 100% of FPL's feeders expected to be hardened or underground by year-end 2024 and with the final costs of the program to be incurred in 2025. The estimated average annual cost for the Feeder Hardening (EWL) - Distribution Program to be incuned over the period of 2020-2025 is approximately $534 million per year, which is consistent with historical costs for the existing distribution feeder hardening program.6 A detailed description of the Feeder Hardening (EWL) - Distribution Program is provided in Section IV(C) of Exhibit MJ-1. 16. The Lateral Hardening (Undergrounding) - Distribution Program includes completing FPL's existing three-year Storm Secure Underground Program Pilot ("SSUP Pilot") in 2020 and expanding the application of the SSUP to the implementation of the system-wide Lateral Hardening (Undergrounding) - Distribution Program forthe period of 2021-2029. The SSUP Pilot is a program that targets certain overhead laterals that were impacted by recent storms and have a history ofvegetation-related outages and other reliability issues for conversion from overhead to underground. As part of its SPP, FPL will incorporate, continue, and expand the SSUP during the ten-year SPP period to provide the benefits of underground lateral hardening throughout its system. After completing the SSUP Pilot in 2020,FPL estimates that it will convert approximately 300- 700 laterals annually in202l-2023 and approximately 800-900 laterals annually in2024-2029. The estimated 2020-2029 anntal average cost for the Lateral Hardening (Undergrounding) - Distribution Program is approximately $510 million per year.7 A detailed description of the Lateral Hardening (Undergrounding) - Distribution Program is provided in Section IV(D) of Exhibit MJ-1. 6 See footnote 4 7 See footnote 4 7 17. The Wood Structures Hardening (Replacing) - Transmission Program is a continuation of FPL's existing transmission hardening program to replace all wood transmission structures with steel or concrete structures. As of year-end 2019, 96yo of FPL's transmission structures, system-wide, were steel or concrete, with less than 2,900 (or 4Y") wood structures remaining to be replaced. FPL expects to replace the 2,900 wood transmission structures remaining on its system by year-end2022. The estimated2020-2022 annual average cost for the Wood Structure Hardening (Replacing) - Transmission Program is approximately $39 million per year, which is a decrease from the historical costs for the existing transmission hardening program.8 A detailed description of the Wood Structure Hardening (Replacing) - Transmission Program is provided in Section IV(E) of Exhibit MJ-1. 18. The Substation Storm Surge/Ilood Mitigation Program is the only new storm hardening program that FPL proposes to implement as part of its SPP. The Substation Storm Surge/Flood Mitigation Program will implement measures to protect certain T&D substations and equipment that are susceptible to storm surge or flooding due to extreme weather events. Specifically, FPL will raise the equipment at certain substations above the flood level and construct flood protection walls around other substations that are susceptible to storm surge or flooding during extreme weather events. The Storm Surge/Flood Mitigation - Transmission and Distribution Program will reduce customer outages due to flooding and the need to de-energize substations that are impacted by storm surge or flooding, as well as reduce flood damage and restoration costs at these targeted substations. At this time, FPL has identified between 8-10 substations where it initially plans to implement storm surge/flood mitigation measures over the 8 8 See footnote 4 next three yearc (2020-2022). The estimated 2020-2022 annual average cost for the new Substation Storm Surge/Flood Mitigation Program is approximately $8 million per year.e A detailed description of the Substation Storm Surge/Flood Mitigation Program is provided in Section IV(F) of Exhibit MJ-1. lg. The Vegetation Management - Distribution Program is a continuation of FPL's existing, Commission-approved distribution vegetation management program. FPL's currently approved distribution vegetation program, includes the following system-wide vegetation inspection and management activities: three-year cycle for feeders; mid-year cycle targeted trimming for certain feeders; six-year cycle for laterals; and continued education of customers through its Right Tree, Right Place initiative. FPL plans to inspect and maintain, on average, approximately 15,200 miles annually, which is consistent with the historic miles inspected and trimmed annually. The estimated2020-2029 average annual cost for the Vegetation Management - Distribution Program is approximately $60 million per year, which is consistent with historical costs for the existing distribution vegetation management program.l0 A detailed description of the Vegetation Management - Distribution Program is provided in Section IV(G)of Exhibit MJ-1. 20. The Vegetation Management - Transmission Program is a continuation of FPL's existing transmission vegetation management program, which includes visual and aerial inspections of all transmission line conidors, LiDAR inspections of North American Electric Reliability Corporation transmission line corridors, developing and executing annual work plans to address identified vegetation conditions, and identifying and addressing priority and hazard tree conditions prior to and during storm season. FPL plans to inspect and trim, on average, e See footnote 4. 10 See footnote 4 9 approximately 7,000 miles of transmission lines annually, which is consistent with the historic miles inspected and trimmed annually. The estimat ed 2020-2029 average annual cost for the Vegetation Management - Transmission Program is approximately $10 million per year, which is consistent with historical costs for the existing transmission vegetation management program.ll A detailed description ofthe Vegetation Management- Transmission Program is provided in Section IV(H) of Exhibit MJ-1. B. Additional Details for First Three Years of the SPP 21. The following additional project level information required by Rule 25- 6.030(3)(e)(1), F.A.C., for the first year of the SPP (2020) is provided in Appendix E to Exhibit MJ-l: (a) the actual or estimated construction start and completion dates; (b) a description of the affected existing facilities, including number and type(s) of customers served, historic service reliability performance during extreme weather conditions, and how this data was used to prioritize the storm protection project; and (c) a cost estimate including capital and operating expenses. A description of the criteria used to select and prioritize storm protection projects is included in the description of each SPP program provided in Section IV of Exhibit MJ-1. 22. Pursuant to Rule 25-6.030(3)(eX2), F.A.C., FPL has also provided the estimated number and costs of projects under each specific program for the second and third years (202I- 2022) of the SPP. This information is provided in Appendix C to Exhibit MJ-l. 23. The following additional information required by Rule 25-6.030(3)(f), F.A.C., for the first three years (2020-2022) of the vegetation management activities under the SPP is provided in Sections IV(c) and IV(H) of Exhibit MJ-l and Appendix C to Exhibit MJ-l: (a) the projected frequency (trim cycle); (b) the projected miles of affected transmission and distribution overhead ll,See footnote 4. 10 facilities; and (c) the estimated annual labor and equipment costs for both utility and contractor personnel. Descriptions of how the vegetation management activities will reduce outage times and restoration costs due to extreme weather conditions are provided in Sections IV(G) and IV(H) of Exhibit MJ-1. C. Estimated Revenue Requirements and Rate Impacts 24. Pursuant to Rule 25-6.030(3)(9), F.A.C., the estimated annual jurisdictional revenue requirements of FPL's SPP for the ten-year period of 2020-2029 are provided in Section VI of Exhibit MJ-l. While FPL has provided estimated costs by program as of the time of this filing and associated total revenue requirements in its SPP, consistent with the requirements of Rule 25-6.030, F.A.C., subsequent projected and actual program costs submitted for cost recovery through the Storm Protection Plan Cost Recovery Clause (per Rule 25-6.031, F.A.C.,) could vary by as much as l0-l5o/o, which variations would also impact the associated estimated revenue requirements and rate impacts. 25. FPL anticipates the programs included in the SPP will have zero bill impacts on customer bills during the first year of the SPP and only minimal bill increases for years two and three of the SPP. An estimate of hypothetical overall rate impacts for the first three years of the SPP (2020-2022) based on the total program costs reflected in this filing, without regard for the fact that FPL remains under a general base rate freeze pursuant to a Commission-approved settlement agreement through December 31,2021, are provided in Section VII of Exhibit MJ-1. The annual jurisdictional revenue requirements and the estimated rate impacts are based on the total estimated costs, as of the time of this filing, for all programs included in the SPP regardless of whether those costs will be recovered in FPL's Storm Protection Plan Cost Recovery Clause or through base rates. In addition, under FPL's Commission-approved rate case settlement 1l agreement, any incremental base rate adjustment may not take place until FPL's base rates are established by the Commission in FPL's next base rate proceeding.t' 26. FPL is not seeking Commission approval, through this petition, to recover any of the estimated costs associated with the SPP in this filing. The projected costs, actual/estimated costs, actual costs, and true-up of actual costs to be included in FPL's Storm Protection Plan Cost Recovery Clause, including whether these costs are included in current base rates, will all be addressed in subsequent and separate Storm Protection Plan Cost Recovery Clause filings pursuant to Rule 25-6.031, F.A.C. The Commission has opened DocketNo.202000g2-EIto address Storm Protection Plan Cost Recovery Clause petitions to be filed the third quarter of 2020. D. FPL's SPP is in the Public Interest and Should Be Approved 21. Sections 366.96(4)-(5), F.S., provide that the Commission shall review each utility's SPP and, within 180 days from filing, determine whether the SPP is in the public interest.13 28. As explained above, the programs included in the SPP are largely a continuation and expansion ofFPL's already successful and ongoing storm hardening and storm preparedness programs previously approved by the Commission, as well as a new storm hardening progtam to t2 See In re: Petitionfor rate inuease by Florida Power & Light Company, Docket No. 160021-EI, Order No. PSC-16-0560-AS-EI (Fla. PSC Dec. 15, 2016). 13 In reaching this determination, the Florida Legislature has directed the Commission to consider the following: (a) The extent to which the plan is expected to reduce restoration costs and outage times associated with extreme weather events and enhance reliability, including whether the plan prioritizes areas of lower reliability performance. (b) The extent to which storm protection of transmission and distribution infrastructure is feasible, reasonable, or practical in certain aleas of the utility's service territory, including, but not limited to, flood zones and rural areas. (c) The estimated costs and benefits to the utility and its customers of making the improvements proposed in the plan. (d) The estimated annual rate impact resulting from implementation of the plan during the first 3 years addressed in the plan. ,See Section 366.96(4), F.S. t2 protect T&D substations and equipment from storm surge and flooding due to extreme weather events. These SPP programs will continue to provide increased T&D infrastructure resiliency, reduced restoration times, and reduced restoration costs when FPL's system is impacted by extreme weather events. 29. In Docket No. 20170215-EU, the Commission reviewed the electric utilities' storm hardening and storm preparedness programs and found the following: Florida's aggressive storm hardening programs are working; The length of outages was reduced markedly from the 2004-2005 storm season; Hardened overhead distribution facilities performed better than non- hardened facilities; Underground facilities performed much better compared to overhead facilities; and The primary causes of power outages came from outside the utilities' rights- of-way including falling trees, displaced vegetation, and other debris. See Review of Florida's Electric Utility Hurricane Preparedness and Restoration Actions 2018, Docket No. 2017021 5-EU (July 24,201 8). 14 30. The estimate of cumulative reductions in restoration costs and outage times associated with the SPP will be directly affected by how frequently storms hit FPL's service territory. Of course, no one is in a position to know for sure how frequently FPL's service territory will be impacted by strong hurricanes. However, consistent with historical results, FPL expects that the storm hardening and storm preparedness programs included in its SPP will result in a reduction in storm as well as non-storm (dayto-day) restoration costs. See FPL's Third Supplemental Response to Staff s First Data Request No. 29 ("Third Supplemental Amended") in ta Available at lfttp:llwww.psc.state.fl.usllibrarylfilingsl2}l8l04847 -2018104847-2018.pdf . t3 Docket No. 20170215-EI, which is provided as Appendix A to Exhibit MJ-1. 31. FPL's storm hardening and storm preparedness programs have also provided and will continue to provide increased levels of day-to-day reliability. For example, FPL has previously submitted reports to the Commission that show hardened feeders have performed approximately 40o/o better (i.e., fewer outages) on a day-to-day basis than non-hardened feeders. 32. A detailed summary of the benefits of FPL's SPP is provided in Section II of Exhibit MJ-l, and the benefits and costs associated with each program is provided in Section IV of Exhibit MJ-1. 33. FPL's SPP meets the objectives of Section 366.96, F.S., satisfies the requirements of Rule 25-6.030, F.A.C., is in the public interest, and should be approved. IV CONCLUSION 34. As explained above and in further detail in Exhibit MJ-1 and the supporting Direct Testimony of FPL witness Michael Jaro, FPL's SPP provides a systematic approach to achieve the legislative objectives of reducing restoration costs and outage times associated with extreme weather events and enhancing reliability. FPL's SPP appropriately and effectively maintains and builds on FPL's commitment to provide safe and reliable electric service to customers, consistent with our customers' needs and expectations . l4 WHEREFORE, FPL respectfully requests that the Commission find FPL's proposed SPP, provided as Exhibit MJ-l, is in the public interest and approve the SPP for the yearc 2020-2029. Respectfully submitted this 1Oth day of April,2020, John T. Burnett Vice President and Deputy General Counsel Christopher T. Wright Senior Attomey Florida Power &Liglrt Company 700 Universe Boulevard Juno Beach, FL 33 408-0420 Phone: 561-691-7144 Fax: 561-691-7135 Email : i ohn.t.bumett@fpl.com Email : christopher.wrieht@fpl.com By s/C hr i sto pher T. Wr i sht Christopher T. Wright Fla. Auth. House Counsel No. 1007055 15 CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of Florida Power & Light Company's Petition for Approval of the 2020-2029 Storm Protection Plan in DocketNo. 2020007I-El, along with the Direct Testimony of Michael Jaro and Exhibit MJ-l, has been furnished by Electronic Mail to the following parties of record this 1Oth day of April,2020: s/ Christopher T. Wrisht Christopher T. Wright Fla. Auth. House Counsel No. 1007055 Fla. Auth. House Counsel No. 1017875 Florida Power & Light Company 700 Universe Boulevard (JB/LAW) Juno Beach, Florida 33408 Attorneyfor Florida Power & Light Company Charles Murphy, Esquire Rachael D zie chciarz, Esquire Florida Public Service Commission 2540 Shumard Oak Boulevard Tallahassee,FL 32399 rdziechc@psc. state.fl .us cmurphy@Fsc.state.fl .us Office of Public Counsel J.R.Kelly Patricia A. Christensen c/o The Florida Legislature 111 West Madison Street, Room 812 Tallahassee, FL 32399 -I 400 kelly jr@le g.state.fl .us christensen.patty@le g. state.fl .us BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION FLORIDA POWER & LIGIIT COMPANY 2020-2029 STORM PROTECTION PLAN DOCKET NO. 202000071-EI DIRECT TESTIMONY OF' MICHAEL JARRO APRIL 10,2020 1 TABLE OF CONTENTS I. INTRODUCTION U. OVERVIEW OF FPL'S SPP............4 IIII. DESCRIPTION OF'EACH SPPPROGRAM.......... ........,....,,.7 IV. ADDITIONAL DETAILS FOR FIRST THREE YEARS OF THE SPP ....................16 v. coNcLUSroN........... ......................18 EXHIBIT MJ-l - FPL's 2020-2029 Storm Protection Plan 2 I 2 aJ 4 5 6 7 8 9 10 11 12 13 t4 l5 l6 l7 18 l9 20 2l 22 LJ 24 25 a. A. a. A. I. INTRODUCTION Please state your name and business address. My name is Michael Jarro. My business address is Florida Power & Light Company, 15430 Endeavor Drive, Jupiter, FL, 3347 8. By whom are you employed and what is your position? I am employed by Florida Power & Light Company ("FPL" or the'oCompany") as the Vice President of Distribution Operations. Please describe your duties and responsibilities in that position. My curent responsibilities include the operation and maintenance of FPL's approximately 68,000 miles of distribution infrastructure, including 42,000 miles of overhead and 26,000 miles of underground, that safely, reliably, and efficiently deliver electricity to more than five million customers in FPL's service tenitory covering approximately 28,000 square miles. I am responsible for the oversight of more than 1,600 employees in a control center and sixteen management areas. The functions and operations within my area are quite diverse and include distribution operations, major projects and construction services, power quality, meteorology, and other operations that together help provide the highest level of service to FPL's customers. Please describe your educational background and professional experience. I graduated from the University of Miami with a Bachelor of Science Degree in Mechanical Engineering and Florida International University with a Master of Business Administration. I joined FPL in 1991 and have held several leadership positions in distribution operations and customer service, including serving as distribution reliability manager, manager of distribution operations for south Miami-Dade area, control center general manager, director of network operations, senior director ofcustomer strategy and analytics, senior director ofpower delivery central maintenance and construction, and vice-president of transmission and substations. What is the purpose of your direct testimony? a. A. a, A. J a. 1 2 J 4 5 6 7 8 9 10 11 l2 l3 t4 15 I6 I7 18 l9 20 21 22 23 24 25 26 A a. A. a. A. The purpose of my testimony is to present and provide an overview of FPL's proposed 2020- 2029 Storm Protection Plan ("SPP" or "the Plan"), which is attached to my direct testimony as Exhibit MJ-l, and demonstrate that FPL's SPP is in compliance with Section 366.96, Florida Statutes ("F.S.") and Rule 25-6.030, Florida Administrative Code ("F.A.C."). I will provide a description ofeach storm protection program included in FPL's SPP and how it is expected to reduce restoration costs and outage times. I will also describe the estimated start/completion dates, estimated costs, and criteria used to select and prioritize the projects in each program. Finally, I will describe the additional detail provided for the first three years of FPL's SPP pursuant to Rule 25-6.030(3Xe)-(0, (h), and (i), F.A.C. Are you sponsoring any exhibits in this case? Yes. I am sponsoring Exhibit MJ-l - FPL's Storm Protection Plan 2020-2029. il. OVERVIEW OF FPL'S SPP What is the purpose of FPL's SPP? On June 27,2019, the Governor of Florida signed into law the Storm Protection Plan Cost Recovery legislation, which was codified in Section 366.96, F.S. As part of the new law, the Florida Legislature expressly found that it is in the State's interest: (a) "to strengthen electric utility infrastructure to withstand extreme weather conditions by promoting the overhead hardening of electrical transmission and distribution facilities, the undergrounding of certain electrical distribution lines, and vegetation management;" and (b) "for each electric utility to mitigate restoration costs and outage times to utility customers when developing transmission and distribution storm protection plans." See Sections 366.96(lXc)-(d), F.S. Based on these findings, the Florida Legislature directed each electric utility to file a SPP with the Florida Public Service Commission ("Commission") covering the immediate ten (10) year plaruring period. ,See Section 366.96(3), F.S. Consistent with this legislative requirement, FPL is submitting its SPP for the ten-year period of 2020-2029. 4 1 2 3 4 5 6 7 8 9 10 11 l2 13 14 15 t6 17 18 t9 20 2l 22 23 24 a, A. FPL's SPP is a systematic approach to achieve the legislative objectives of reducing restoration costs and outage times associated with extreme weather events and enhancing reliability. As required by Rule 25-6.030, F.A.C., FPL's SPP includes, among other things, a description of each proposed storm protection program, including: (a) how each program will enhance the existing system to reduce restoration costs and outage times; (b) applicable start and completion dates for each program; (c) a cost estimate for each program; (d) a comparison of the costs and benefits for each program; and (e) a description of how each program is prioritized. The SPP also provides an estimate of the annual jurisdictional revenue requirement for each year of the SPP and additional details on each program for the first three years ofthe SPP (2020-2022), including estimated rate impacts. What programs are included in FPL's SPP? FPL's SPP is, in large part, a continuation and expansion of its previously approved storm hardening and storm preparedness programs, and includes the following SPP programs: . Pole Inspections - Distribution Program o Structures/Other Equipment Inspections - Transmission Program o Feeder Hardening - Distribution Program o Lateral Hardening (Undergrounding) - Distribution Program . Wood Structures Hardening (Replacing) - Transmission Program o Vegetation Management - Distribution Program r Vegetation Management - Transmission Program In addition, FPL proposes to implement a new Substation Storm Surge/Flood Mitigation Program to protect T&D substations and equipment that are susceptible to storm surge or flooding during extreme weather events. 5 1 2 J 4 5 6 7 8 9 10 11 l2 13 I4 15 t6 17 18 l9 20 2t 22 23 24 25 26 a. A. With the exception of the new storm surge/flood mitigation program, the majority of these programs have been in place since 2007. As demonstrated by recent storm events, these programs have been successful in reducing restoration costs and outage times following major storms, as well as improving dayto-day reliability. FPL submits that continuing these previously approved storm hardening and storm preparedness programs in the SPP, together with the new storm surge/flood mitigation program, is appropriate and necessary to meet the requirements of Section 366.96, F.S., and Rule 25-6.030, F.A.C. These programs will address the expectations ofFPL's customers and other stakeholders for increased storm resiliency, and will result in fewer outages, reduced restoration costs, and prompt service restoration. The SPP will continue and expand the benefits of hardening, including improved dayto-day reliability, to all customers throughout FPL's system. Please provide an overview of the benefits of FPL's SPP. The major benefit of FPL's SPP is to provide increased resiliency and faster restoration to the electric infrastructure that FPL's five million customers and Florida's economy rely on for their electricity needs. Safe and reliable electric service is essential to the life, health, and safety of the public, and has become a critical component of modern life. Florida remains the most hurricane-prone state inthe nation and, withthe significant coastJine exposure ofFPL's system and the fact that the vast majority of FPL's customers live within 20 miles of the coast, a robust storm protection plan is critical to maintaining and improving grid resiliency and storm restoration as contemplated by the Legislature in Section 366.96. FPL's SPP programs have already demonstrated that they have provided and will continue to provide increased Transmission and Distribution ("T&D") infrastructure resiliency, reduced restoration time, and reduced restoration cost when FPL is impacted by extreme weather events. FPL performed an analysis of Hurricanes Matthew and Irma that indicated the restoration construction man-hours ("CMH"), days to restore, and storm restoration costs for 6 1 2 3 4 5 6 7 8 9 l0 l1 l2 t3 14 15 16 17 18 I9 20 2I 22 23 24 25 26 a. A. these storms would have been significantly greater without FPL's storm hardening programs. In the case of Hurricane Matthew, FPL estimated that without hardening, restoration would have taken two additional days (50% longer), and resulted in additional restoration costs of $l05million(36%higherthanactualcosts). InthecaseofHurricanelrma,FPLestimatedthat without hardening, restoration would have taken four additional days (40Vo longer), and resulted in additional restoration costs of $496 million (40% higher than actual costs). A copy of FPL's analysis is provided in Appendix A to Exhibit MJ-1. A detailed summary of the benefits of FPL's SPP is provided in Section II of the SPP, and the benefits ofeach program are provided in Section IV ofthe SPP. Does FPL's SPP address recovery of the costs associated with the SPP? No. FPL anticipates the programs included in the SPP will have zero bill impacts on customer bills during the first year of the SPP and only minimal bill increases for years two and three of the SPP. However, the recovery of the actual costs associated with the SPP, as well as the costs to be included in FPL's Storm Protection Plan Cost Recovery Clause, will be addressed in subsequent and separate Storm Protection Plan Cost Recovery Clause dockets pursuant to Rule 25-6.031, F.A.C. The Commission has opened Docket No. 20200092-EI to address Storm Protection Plan Cost Recovery Clause petitions to be filed the third quarter of 2020. ilI. DESCRIPTION OF EACH SPP PROGRAM Has FPL provided the information required by Rule 25-6.030(3Xd) for each program included in its SPP? Yes. FPL's SPP provides the information required by the Rule 25-6.030(3Xd) for each program. If applicable, each program description included in FPL's SPP includes: (1) a description of how each program is designed to enhance FPL's existing transmission and distribution facilities including an estimate of the resulting reduction in outage times and 7 a A. 1 2 J 4 5 6 7 8 9 10 11 12 13 I4 15 l6 17 18 I9 20 21 22 23 24 25 26 a. A. restoration costs due to extreme weather conditions; (2) identification ofthe actual or estimated start and completion dates of the program; (3) a cost estimate including capital and operating expenses; (4) a comparison ofthe costs and the benefits; and (5) a description ofthe criteria used to select and prioritize proposed storm protection programs. Each of the above listed descriptions is provided in Section IV of FPL's SPP. Below, I will provide a brief overview of each program included in FPL's SPP. Please provide a summary of FPL's Pole Inspection - Distribution Program included in the SPP. The Pole Inspection - Distribution Program included in the SPP is a continuation of FPL's existing Commission-approved distribution pole inspection program. FPL's existing, Commission-approved distribution pole inspection program is an eight-year pole inspection cycle for all distribution poles that targets approximately 1/8 of the system annually (the actual number of poles inspected can vary somewhat from year to year). To ensure inspection coverage throughout its service territory, FPL established nine inspection zones (based on FPL's management areas and pole population) and annually performs pole inspections of approximately 1/8 of the distribution poles in each of these zones, as well as any necessary remediation as a result of such inspections. As explained in the SPP, recent storm events demonstrate that FPL's existing distribution pole inspection program has contributed to the overall improvement in distribution pole performance during storms, resulting in reductions in storm damage to poles, days to restore, and storm restoration costs. With approximately 1 .2 million distribution poles as of year-end 2019, FPL expects to inspect approximately 150,000 poles annually (spread throughout its nine inspection zones) during the 2020-2029 SPP period. The total estimated costs for the Pole Inspection - Distribution Program for the ten-year period of 2020-2029 is $605 million with an annual average cost of approximately $61 million, which is consistent with historical costs for the existing distribution 8 1 2 aJ 4 5 6 7 8 9 10 11 l2 13 l4 15 16 t7 18 t9 20 a. A. pole inspection program.r A detailed description of the Pole Inspection - Distribution Program is provided in Section IV(A) of FPL's SPP. Please provide a summary of FPL's Structures/Other Equipment Inspections - Transmission Program included in the SPP. The Structures/Other Equipment Inspections - Transmission Program included in the SPP is a continuation of FPL's existing Commission-approved transmission inspection program. The SPP will continue FPL's current, Commission-approved transmission inspection program which requires: (a) transmission circuits and substations and all associated hardware to be inspected on a six-year cycle; (b) wood structures to be inspected visually from the ground on an annual basis and climbing or bucket truck inspections to be conducted on a six-year cycle; and (c) steel and concrete structures to be inspected visually on an annual basis and climbing or bucket truck inspections to be conducted on a ten-year cycle. As explained in the SPP, the performance of FPL's transmission facilities during recent storm events indicates FPL's transmission inspection program has contributed to the overall storm resiliency of the transmission system and provided savings in storm restoration costs. FPL expects to inspect approximately 68,000 structures annually during lhe 2020-2029 SPP period. The total estimated costs for the Structures/Other Equipment Inspections - Transmission Program for the ten-year period of 2020-2029 is $500 million with an annual average cost of approximately $50 million, which is consistent with historical costs for the 1Note, the2020-2029 program costs shown above are projected costs estimated as of the time of this filing. Subsequent projected and actual costs could vary by as much as 10o/o to 15oh. The annual projected costs, actual/estimated costs, actuals costs, and true-up of actual costs to be included in FPL's Storm Protection Plan Cost Recovery Clause will all be addressed in subsequent and separate Storm Protection Plan Cost Recovery Clause filings pursuant to Rule 25-6.031, F.A.C. The Commission has opened Docket No. 20200092-EIto address Storm Protection Plan Cost Recovery Clause petitions to be filed the third quarter of 2020. 9 1 2 J 4 5 6 7 8 9 10 11 t2 13 14 15 t6 l7 18 l9 20 2l 22 23 a A. existing transmission inspection program.2 A detailed description of the Structures/Other Equipment Inspections - Transmission Program is provided in Section IV(B) of FPL's SPP. Please provide a summary of FPL's Feeder Hardening (EWL) - Distribution Program included in the SPP. The Feeder Hardening (EWI-) - Distribution Program included in the SPP is a continuation of FPL's existing Commission-approved approach to harden existing feeders and certain critical distribution poles, as well as FPL's initiative to design and construct new pole lines and major planned work to meet the National Electrical Safety Code's ("NESC") extreme wind loading criteria ("EWL"). During the period 2006-2019, FPL hardened over 1,300 existing feeders, the vast majority being Critical Infrastructure Function ("CIF") feeders (i.e., feeders that serve hospitals, 911 centers, police and fire stations, water treatment facilities, county emergency operation centers) and Community Project feeders (i.e., feeders that serve other key community needs like gas stations, grocery stores and pharmacies) throughout FPL's service territory. Additional feeders were hardened as a result of FPL's Priority Feeder Initiative, a reliability program that targeted feeders experiencing the highest number of intenuptions and/or customers interrupted. FPL also applied EWL to the design and construction of new pole lines and major planned work, including pole line extensions and relocations and certain pole replacements. As provided in previous FPL Annual Reliability Report filings and three-year Storm Hardening Plan filings (per Rule 25-6.0342, F.A.C.), hardened feeders perform better than non-hardened feeders, both in day-to-day reliability performance and during severe storms. Additionally, upon review of the electric utilities' storm hardening and storm preparedness programs, the Commission found that for Hurricane Irma, hardened feeders performed significantly better than 2 See footnote I 10 1 2 3 4 5 6 7 8 9 10 11 t2 13 T4 l5 l6 17 18 T9 20 2l 22 a. A. non-hardened feeders with respect to outage rates, pole failures, and CMH required to restore power.3 FPL expects to harden approximately 250-350 feeders annually, with 100% of FPL's feeders expected to be hardened or underground by year-end 2024 and with the final costs of the program to be incurred in2025. The total estimated costs for the Feeder Hardening (EWL) - Distribution Program for the period of 2020-2025 is $3,206 million with an annual average cost of approximately $534 million, which is consistent with historical costs for the existing distribution feeder hardening program.a A detailed description of the Feeder Hardening (EWI-) - Distribution Program is provided in Section IV(C) of FPL's SPP. Please provide a summary of FPL's Lateral Hardening (Undergrounding) - Distribution Program included in the SPP. The Lateral Hardening (Undergrounding) - Distribution Program included in the SPP is a continuation and expansion ofFPL's existing three-year Storm Secure Underground Program Pilot ("SSUP Pilot") implemented in 2018. The SSUP Pilot is a program that targets certain overhead laterals that were impacted by recent storms and have a history of vegetation-related outages and other reliability issues for conversion from overhead to underground. As part of its proposed SPP, FPL will complete its existing three-year SSIIP Pilot in 2020 and expand the application of the SSUP during 2021-2029 to the implementation of the system-wide Lateral Hardening (Undergrounding) - Distribution Program to provide the benefits of underground lateral hardening throughout its system. As explained in the SPP, the proposal to continue and expand the application of the SSUP under the SPP is based on the performance of the 3 See Review of Florida's Electric Utility Huruicane Preparedness and Restoration Actions 2018, Docket No 2017 021 5 -EU (Iuly 24, 20 1 8). a See footnote 1 11 1 2 aJ 4 5 6 7 8 9 10 11 t2 l3 l4 15 t6 t7 18 t9 20 2l 22 23 24 a. A. underground facilities as compared to overhead facilities and the extensive damage to the overhead facilities caused by vegetation during Hurricanes Matthew and Irma. By the end of2020, the third and final year ofthe SSIIP Pilot, FPL expects to have converted a total of 220-230 laterals from overhead to underground, which is consistent with the SSUP Pilot plan most recently approved in July 2019 in FPL's most recent storm hardening plan docket, Docket No. 20180144-EI. After completing the SSUP Pilot in 2020, FPL estimates that it will convert approximately 300-700 laterals annually in202l-2023 and approximately 800-900 laterals annually in2024-2029. The total estimated costs for the Lateral Hardening (Undergrounding) - Distribution Program for the ten-year period of 2020-2029 is $5,101 million with an annual average cost of approximately $510 million.s A detailed description of the Lateral Hardening (Undergrounding) - Distribution Program is provided in Section IV(D) of FPL's SPP. Please provide a summary of FPL's Wood Structures Hardening (Replacing) - Transmission Program included in the SPP. The Wood Structure Hardening (Replacing) - Transmission Program included in the SPP is a continuation of FPL's existing transmission hardening program to replace all wood transmission structures with steel or concrete structures. As explained in the SPP, the performance of FPL's transmission facilities during recent storm events indicates FPL's transmission hardening program has contributed to the overall storm resiliency ofthe transmission system and provided savings in storm restoration costs. As of year-end 2019, 96yo of FPL's transmission structures, system-wide, were steel or concrete, with less than2,900 (or 4%) wood structures remaining to be replaced. FPL expects s See footnote I 12 1 2 J 4 5 6 7 8 9 10 l1 l2 13 14 15 t6 t7 18 19 20 21 22 23 24 a. A. to replace the 2,900 wood transmission structures remaining on its system by year-end 2022. The total estimated costs for the Wood Structure Hardening (Replacing) - Transmission Program for the period of 2020-2022 is $118 million with an annual average cost of approximately $39 million, which is a decrease from the historical costs for the existing transmission hardening program.6 A detailed description of the Wood Structure Hardening (Replacing) - Transmission Program is provided in Section IV(E) of FPL's SPP. Please provide a summary of FPL's Substation Storm Surge/Flood Mitigation Program. The Substation Storm Surge/Flood Mitigation Program is the only new storm hardening program that FPL proposes to implement as part of its SPP. The Storm SurgelFlood Mitigation - Transmission and Distribution Program will implement measures to protect T&D substations and equipment that are susceptible to storm surge or flooding due to extreme weather events. Historically, several FPL distribution and transmission substations have been impacted by storm surge andlor flooding as a result of extreme weather conditions. While proactively de- energizing those substations impacted by storm surge and/or flooding helps reduce damage to substation equipment, FPL is still required to implement both temporary flood mitigation efforts and repairs to substation facilities and equipment that become flooded as a result of extreme weather conditions. Further, flooding and the need to proactively de-energize substations located in areas susceptible to storm surge and flooding can result in significant customer outages. To prevent/mitigate future substation equipment damage and customer outages due to storm surge and flooding, FPL's new Storm Surge/Flood Mitigation Program will raise the equipment at certain substations above the flood level and construct flood protection walls around other substations to prevent/mitigate future damage due to storm surge and flooding. 6 See footnote I t3 I 2 J 4 5 6 7 8 9 10 11 I2 13 t4 15 t6 t7 18 t9 20 2l 22 23 24 0. A. At this time, FPL has identified between 8-10 substations where it initially plans to implement storm surge/flood mitigation measures over the next three years (2020-2022). The total estimated costs for the new Substation Storm Surge/Flood Mitigation over this three-year period is approximately $23 million with an annual average cost of approximately $8 million per year.1 A detailed description of the Storm Surge/Flood Mitigation - Transmission and Distribution Program is provided in Section IV(F) of FPL's SPP. Please provide a summary of FPL's Vegetation Management - Distribution Program included in the SPP. The Vegetation Management - Distribution Program included in the SPP is a continuation of FPL's existing, Commission-approved distribution vegetation management program. FPL's currently-approved distribution vegetation program, includes the following system-wide vegetation management activities: three-year cycle for feeders; mid-year cycle targeted trimming for certain feeders; six-year cycle for laterals; and continued education of customers through its Right Tree, Right Place initiative. In approving FPL's current distribution vegetation management cycles, the Commission indicated that FPL's distribution vegetation management cycles were cost-effective and would provide savings to customers. Additionally, as explained in the SPP, recent storm events demonstrate that FPL's existing distribution vegetation management program has contributed to the overall improvement in the resiliency of distribution system during storms, resulting in reductions in storm damage to poles, days to restore, and storm restoration costs. Under the SPP, FPL plans to trim, on average, approximately 15,200 miles annually, including approximately 11,400 miles for feeders (cycle and mid-cycle) and 3,800 miles for laterals, which is consistent with the historic miles trimmed annually. The total estimated costs for the 7 See footnote I t4 I 2 J 4 5 6 7 8 9 10 11 12 l3 14 15 t6 17 18 t9 20 2l 22 23 24 a. A Vegetation Management - Distribution Program for the ten-year period of 2020-2029 is $596 million with an annual average cost of approximately $60 million, which is consistent with historical costs for the existing distribution vegetation management program.8 A detailed description of the Vegetation Management- Distribution Program is provided in Section IV(G) of FPL's SPP. Please provide a summary of FPL's Vegetation Management - Transmission Program included in the SPP. The Vegetation Management - Transmission Program included in the SPP is a continuation of FPL's existing transmission vegetation management program. The key elements of FPL's transmission vegetation management program are to inspect the transmission right-of-ways, document vegetation inspection results and findings, prescribe a work plan, and execute the work plan. In its SPP, FPL will continue its cunent transmission vegetation management plan, which includes visual and aerial inspections of all transmission line conidors, Light Detection and Ranging ("LiDAR") inspections of North American Electric Reliability Corporation's ("NERC") transmission line corridors, developing and executing annual work plans to address identified vegetation conditions, and identifying and addressing priority and hazard tree conditions prior to and during storm season. As explained in the SPP, the execution of FPL's transmission vegetation management plan has been and is a significant factor in mitigating damage to transmission facilities and avoiding transmission-related outages. Under the SPP, FPL plans to inspect and maintain, on average, approximately 7,000 miles of transmission lines annually, including approximately 4,300 miles for NERC transmission line corridors and2,700 miles for non-NERC transmission line corridors. This is comparable to the approximately 7,000 miles inspected and maintained annually, on average for 2017 -2019. 8 See footnote 1 15 1 2 aJ 4 5 6 7 8 9 10 11 t2 13 I4 15 16 T7 18 I9 20 2t 22 23 24 a. A a A. The total estimated costs for the Vegetation Management - Transmission Program for the ten- year period of 2020-2029 is $96 million with an annual average cost of approximately $10 million, which is consistent with historical costs for the existing transmission vegetation management program.e A detailed description of the Vegetation Management - Transmission Program is provided in Section IV(H) of FPL's SPP. IV. ADDITIONAL DETAILS FORFIRST THREE YEARS OF THE SPP Has FPL provided additional project-level details and information for the first year (2020) of the SPP? Yes. The following additional information required by Rule 25-6.030(3)(e)(1), F.A.C., for the first year (2020) of the SPP is provided in Appendix E to FPL's SPP: (1) the actual or estimated construction start and completion dates; (2) a description of the affected existing facilities, including number and type(s) of customers served, historic service reliability performance during extreme weather conditions, and how this data was used to prioritize the proposed storm protection project; and (3) a cost estimate including capital and operating expenses. Additionally, a description ofthe criteria used to select and prioritize proposed storm protection projects is included in the description ofeach proposed SPP program provided in Section IV ofthe SPP. Does FPLos SPP provide sufficient detail to develop preliminary estimates of the rate impacts for the second and third years (2021-2022) of the SPP? Yes. As required by Rule 25-6.030(3Xe)(2), F.A.C., FPL has provided the estimated number and costs of projects under each specific SPP program, which information was used to develop the estimated rate impacts for 2021-2022. This information is provided in Appendix C to FPL's SPP. e See footnote I t6 1 2 J 4 5 6 7 8 9 10 11 t2 13 l4 15 l6 I7 18 t9 20 2l 22 23 24 0. a. A Did FPL provide a description of its vegetation management activities under the SPP for the first three years (2020-2022) of the SPP? Yes. The following additional information required by Rule 25-6.030(3X0, F.A.C., for the first three years (2020-2022) of the vegetation management activities under the SPP is provided in Sections IV(G) and IV(H) of FPL's SPP and Appendix C to FPL's SPP: the projected frequency (trim cycle); the projected miles of affected transmission and distribution overhead facilities; and the estimated annual labor and equipment costs for both utility and contractor personnel. Additionally, descriptions of how the vegetation management activities will reduce outage times and restoration costs due to extreme weather conditions are provided in Sections IV(G) and IV(H) of FPL's SPP. Has FPL provided the annual jurisdictional revenue requirements for the 2020-2029 SPP? Yes. Pursuant to Rule 25-6.030(3Xg), F.A.C., FPL has provided the estimated annual jurisdictional revenue requirements in Section VI of the SPP. While FPL has provided estimated costs by program as of the time of this filing and associated total revenue requirements in its SPP, consistent with the requirements of Rule 25-6.030, F.A.C., subsequent projected and actual program costs submitted for cost recovery through the Storm Protection Plan Cost Recovery Clause (per Rule 25-6.031, F.A.C.) could vary by as much as 10-150%, which variations would also impact the associated estimated revenue requirements and rate impacts. The projected costs, actuall estimated costs, actuals costs, and true-up ofactual costs to be included in FPL's Storm Protection Plan Cost Recovery Clause will all be addressed in subsequent filings in separate Storm Protection Plan Cost Recovery Clause dockets pursuant to Rule 25-6.031, F.A.C.ro llas FPL estimated the rate impacts for each of the first three years of the SPP? a. A. r0 The Commission has opened Docket No, 20200092-El to address Storm Protection Plan Cost Recovery Clause petitions to be filed the third quarter of 2020. t7 1 2 J 4 5 6 7 8 9 10 11 t2 t3 t4 15 l6 t7 18 t9 20 2l 22 23 24 A a. A. FPL anticipates the programs included in the SPP will have zero bill impacts on customer bills during the first year of the SPP and only minimal bill increases for years two and three of the SPP. An estimate of the hypothetical overall rate impacts for the first three years of the SPP (2020-2022) based on the total program costs reflected in this filing, without regard for the fact that FPL remains under a general base rate freeze pursuant to a Commission-approved settlement agreement through December 31,2021, are provided in Section VII ofthe SPP. The projected costs, actual/estimated costs, actuals costs, and true-up ofactual costs to be included in FPL's Storm Protection Plan Cost Recovery Clause will all be addressed in subsequent filings in separate storm protection plan cost recovery clause dockets pursuant to Rule 25- 6.031, F.A.C. rr V. CONCLUSION Does FPL believe that its SPP will achieve the legislative objectives of Section 366.96, F.S., to reduce costs and outage times associated with extreme weather events by promoting the overhead hardening of electrical transmission and distribution facilities, the undergrounding of certain electrical distribution lines, and vegetation management? Yes. While no electrical system can be made completely resistant to the impacts of hurricanes and other extreme weather conditions, FPL's SPP provides a systematic approach to achieve the legislative objectives of reducing restoration costs and outage times associated with extreme weather events and enhancing reliability. As explained above and in further detail in the SPP, FPL's SPP programs are largely a continuation and expansion of FPL's already successful and ongoing storm hardening and storm preparedness programs previously approved by the Commission, as well as a new storm hardening program to protect T&D substations and equipment from storm surge and flooding due to extreme weather events. These SPP programs llSee footnote 10 i8 2 J 4 5 6 7 a. A. will continue to provide increased T&D infrastructure resiliency, reduced restoration time, and reduced restoration costs when FPL's system is impacted by extreme weather events. FPL's SPP appropriately and effectively maintains and builds on FPL's commitment to provide safe and reliable electric service to customers, and to meet the needs and expectations of our customers, today and for many years to come. Does this conclude your direct testimony? Yes. 19 Docket No. 2020O071-El FPL'9 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 1 of 48 Florida Power & Light Gompany Storm Protection Plan 2020-2029 (Rule 25-6.030, F.A.C.) Docket No. 20200071-El April 10, 2020 il IV TABLE OF CONTENTS Executive Summary. The 2020-2029 SPP will Strengthen FPL's lnfrastructure to Withstand Extreme Weather Conditions and will Reduce Restoration Costs and Outage Times.... Description of Service Area and T&D Facilities. 2020-2029 SPP Programs.......... A. Pole lnspections - Distribution Program. Docket No. 2O2O0071-E\ FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 2 of 48 1 ....3 ....6 ....7 ....7 ....7 .. 10 .. 10 ..11 ..11 12 12 14 14 15 15 16 16 20 21 ..21 21 22 22 25 25 25 B. c. 1. Description of the Program and Benefits........ 2, Actual/Estimated Start and Completion Dates 3 Cost Estimates 4. Comparison of Costs and Benefits............. 5. Criteria used to Select and Prioritize the Program Structures/Other Equipment lnspections - Transmission Program 1. Description of the Program and 8enefits.............. 2. Actual/Estimated Start and Completion Dates ..... 3. CostEstimates......... 4. Comparison of Costs and 8enefits............. 5. Criteria used to Select and Prioritize the Program Feeder Hardening (EWL) - Distribution Program ........... 1. Description of the Program and 8enefits............. 2. Actual/Estimated Start and Completion Dates 3. CostEstimates......... 4. Comparison of Costs and 8enefits............. 5. Criteria used to Select and Prioritize the Program ..... Lateral Hardening (Undergrounding) - Distribution Program 1. Description of the Program and 8enefits.................... D 2. ActualiEstimated Start and Completion Dates 3. CostEstimates......... Comparison of Costs and Benefits............. Criteria used to Select and Prioritize the Program .... 4 5 .26 E F Wood Structures Hardening (Replacing) - Transmission Program 1. Description of the Program and 8enefits.............. 2. Actual/Estimated Start and Completion Dates..... 3. CostEstimates......... 4. Comparison of Costs and 8enefits............. 5. Criteria used to Select and Prioritize the Program Substation Storm Surge/Flood Mitigation Program 1. Description of the Program and Benefits 2. Actual/Estimated Start and Completion Dates ........ 3. Cost Estimates... 4. Comparison of Costs and 8enefits................. 5. Criteria used to Select and Prioritize Projects G. Vegetation Management - Distribution Program ...... 1. Description of the Program and Benefits........ 2. ActualiEstimated Stad and Completion Dates 3. CostEstimates......... 4. Comparison of Costs and Benefits.. 5. Criteria Used to Select and Prioritize the Program.. H. Vegetation Management - Transmission Program 1. Description of the Program and Benefits................. 2. Actual/Estimated Start and Completion Dates........ 3. CostEstimates......... 4. Comparison of Costs and 8enefits............. 5. Criteria used to Select and Prioritize the Programs. Detailed lnformation on the First Three Years of the SPP (2020- 2022) A. Detailed Description for the First Year of the SPP (2020).. B. Detailed Description of the Second and Third Years of the c sPP (2021-2022) Detailed Description of the Vegetation Management Activities for the First Three Years of the SPP (2020-2022) Estimate of Annual Jurisdictional Revenue Requirements for the Docket No. 2O2OO071-E\ FPL's 2O20-2029 Storm Protection Plan Exhibit MJ-1 , Page 3 of 48 26 26 28 28 29 29 30 30 31 31 31 32 32 32 35 35 36 36 37 37 39 39 40 40 ...41 ...41 41 ..41 V il VI 2020-2029 SPP ..42 Docket No. 20200071-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 4 of 48 43 44 Vlt. Estimated Rate lmpacts for First Three Years of the SPP (2020- 2022) Vlll. Conclusion Appendices: Appendix A - Appendix B - Appendix C - Appendix D - Appendix E - FPL's Third Supplemental Response to Staffs First Data Request No. 29 ("Third Supplemental Amended") in Docket No. 2017021s-El FPL Management Areas and Customers Served FPL 2020-2029 SPP Estimated Annual Costs and Estimated Numbdr and Costs of Projects FPL Distribution Design Guidelines Project Level Detail for First Year of the SPP (2020) Docket No. 20200071-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 5 of 48 Florida Power & Light Gompany 2020-2029 Storm Protection Plan l. Executive Summary Pursuant to Section 366.96, Florida Statutes ("F.S."), and Rule 25-6.030, Florida Administrative Code ('F.A.C."), Florida Power & Light Company ("FPL') submits its Storm Protection Plan for the ten (10) year period 2020-2029 (hereinafter, the "SPP"). As explained herein, the SPP is largely a continuation of FPL's successful storm hardening and storm preparedness programs previously approved by the Florida Public Service Commission ("Commission") over the last fourteen years. FPL anticipates the programs included in the SPP will have zero bill impacts on customer bills during the first year of the SPP and only minimal bill increases foryears two and three of the SPP.1 Since 2006, FPL has been implementing Commission-approved programs to strengthen its transmission and distribution ("T&D") infrastructure. These programs include multiple storm hardening and storm preparedness programs, such as feeder hardening, replacing wood transmission structures, vegetation management, and pole inspections. As demonstrated by recent storm events, these ongoing storm hardening and storm preparedness programs have resulted in FPL's T&D electricalgrid becoming more storm resilient, experiencing less infrastructure damage and reduced restoration times, as compared to non-hardened facilities. These programs have also provided significant improvements in dayto-day reliability. The success of FPL's storm hardening and storm preparedness programs has been achieved through the development and implementation of FPL's forward-looking storm hardening, grid modernization, and reliability initiatives and investments, combined with the use of cutting-edge technology and strong employee commitment. Under the SPP, FPL remains committed to continue these successful and industry-leading programs to 1 The recovery of the costs associated with the SPP, as well as the actual and projected costs to be included in FPL's Storm Protection Plan Cost Recovery Clause, will be addressed in a subsequent and separate Storm Protection Plan Cost Recovery Clause docket pursuant to Rule 25-6.031, F.A.C. 1 Docket No. 2O200071-El FPL's 2020-2029 Storm Protection PIan Exhibit MJ-1, Page 6 of 4B further strengthen its T&D infrastructure, mitigate restoration costs and outage times, continue to provide safe and reliable electric service to customers, and meet future increasing needs and expectations. As stated previously, FPL's SPP is, in large part, a continuation and expansion of its previously approved storm hardening and storm preparedness programs, and includes the following SPP programs: . Pole lnspections - Distribution Program . Structures/Other Equipment lnspections - Transmission Program . Feeder Hardening (EWL) - Distribution Program . Lateral Hardening (Undergrounding) - Distribution Program . Wood Structures Hardening (Replacing) - Transmission Program . Vegetation Management - Distribution Program . Vegetation Management - Transmission Program ln addition, FPL will implement a new Substation Storm Surge/Flood Mitigation Program to harden certain targeted substations that, based on prior experience, are susceptible to storm surge or flooding during extreme weather events. With the exception of the new storm surgeiflood mitigation program, the majority of the programs included in the SPP have been in place since 2007. As demonstrated by recent storm events, these programs have been successful in reducing restoration costs and outage times following major storms, as well as improving day-to-day reliability. FPL submits that continuing these previously approved storm hardening and storm preparedness programs in the SPP, together with the new storm surge/flood mitigation substation program, is appropriate and necessary to address the mandates set forth in Section 366.96, F.S., and Rule 25-6.030, F.A.C., as well as the expectations of FPL's customers and other stakeholders for increased storm resiliency and will result in fewer 2 Docket No. 20200071-El F PL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 7 of 48 outages, reduced restoration costs, and prompt service restoration.2 The SPP will continue and expand the benefits of hardening, including improved dayto-day reliability, to all customers throughout FPL's system. The following sections provide information and details on FPL's SPP as required by and in compliance with Rule 25-6.030, F.A.C. For the reasons explained below, FPL submits that implementing the SPP is necessary and appropriate to achieve the goals and requirements expressed by the Florida Legislature in Section 366.96, F.S., to reduce restoration costs and outage times associated with extreme weather events and improve overall service reliability to customers and the State of Florida by promoting the overhead hardening of electrical transmission and distribution facilities, the undergrounding of ceftain electrical distribution lines, and vegetation management. ll. The 2020-2029 SPP will Strenqthen FPL's lnfrastructure to Withstand Extreme Weather Gonditions and will Reduce Restoration Gosts and Outaqe Times Pursuant to Rule 25-6.030(3)(a), F.A.C., this section provides an overview of how the SPP will strengthen FPL's electric utility infrastructure to withstand extreme weather conditions by promoting the overhead hardening of electricaltransmission and distribution facilities, the undergrounding of certain electrical distribution lines, and vegetation management. Consistent with Rule 25-6.030(3Xb), F.A.C., this section also provides a summary of how the SPP is expected to further reduce restoration costs and outage times associated with extreme weather conditions and, therefore, improve overall service reliability. To date, significant progress has been made toward strengthening FPL's infrastructure. For example, at year-end 2019, approximately 54o/o of FPL's distribution feeders have been either hardened or placed underground, and approximately 96% of FPL's transmission structures are either steel or concrete. Also, since 2006, FPL has completed multiple system-wide cycles of distribution and transmission pole inspections and 2 As explained below, a couple of the programs included in the SPP are expected to be completed within the next severalyears. 3 Docket No. 20200071-El FPL's 2O20-2O29 Storm Protection Plan Exhibit MJ-1 , Page 8 of 48 vegetation management. Within the next few years several significant milestones are also expected to be reached, including replacement of all wood transmission structures with steel or concrete structures by year-end 2022 and for allfeeders to be hardened or placed underground by year-end 2024. FPL also implemented a three-yearStorm Secure Underground Program Pilot in 2018 ("SSUP Pilot") that converls certain targeted overhead laterals - laterals that have been impacted by recent storms and have a history of vegetation-related outages and other reliability issues - to underground laterals. At year-end 2020, the final year of the SSUP Pilot, FPL expects 220-230 of these targeted laterals to be converted from overhead to underground. ln addition, FPL's Design Guidelines incorporate and apply extreme wind loading ('EWL') criteria to the design and construction of all new overhead pole lines and major planned work, including pole line extensions, relocations, and certain pole replacements. FPL's SPP programs have already demonstrated that they have and will continue to provide increased T&D infrastructure resiliency, reduced restoration time, and reduced restoration costs when FPL's system is impacted by severe weather events. ln FPL's Third Supplemental Response to Staff's First Data Request No. 29 ("Third Supplemental Amended") in Docket No. 20170215-E1,3 FPL prepared and submitted an analysis of Hurricanes Matthew and lrma that indicated the restoration construction man-hours ("CMH"), days to restore, and storm restoration costs for these storms would have been significantly higher without FPL's storm hardening programs. Below is a summary of the results of FPL's analysis: Without Harden Hurricane Matthew Hurricane lrma 3 The Commission opened Docket No. 20170215-El to review electric utility preparedness and restoration actions and to identify potential areas where infrastructure damage, outages, and recovery time for customers could be minimized in the future. Additional CMH (%)93,000 (36%)483,000 (40%) 2 (50o/o)4 (40%)Additional days to restore (%) $105 (36%)$4e6 (40%)Additional restoration costs ($millions) (%) 4 Docket No. 2O200071-El F PL's 2O2O-202g Storm Protection Plan Exhibit MJ-1, Page I of 48 A copy of FPL's Third Supplemental Amended Response in Docket No. 20170215-El, including the analysis referenced above, is provided in Appendix A. Based on a 40-year net present value analysis, the savings achieved from storm hardening would equate to $653 million (for a storm occurring once every three years) and $406 million (for a storm occurring once every five years) for a storm similar to Hurricane Matthew and $3.1 billion (for a storm occurring once every three years) and $1.9 billion (for a storm occurring once every five years) for a storm similar to Hurricane lrma. These programs have also provided increased levels of day{o-day reliability. For example, FPL has previously submitted reports to the Commission that show hardened feeders have performed approximately 40% better (i.e., fewer outages) on a dayto-day basis than non-hardened feeders.a Further details on the benefits of the SPP programs are provided throughout the remaining sections of this SPP. Although FPL's storm preparedness and hardening programs to date have produced a more storm resilient and reliable T&D electrical grid, FPL must continue its efforts to storm-harden its T&D electrical grid consistent with the findings, conclusions, and objectives of the Florida Legislature in Section 366.96, F.S. Indeed, Florida remains the most hurricane-prone state in the nation and, with the significant coast-line exposure of FPL's system and the fact that the vast majority of FPL's customers live within 20 miles of the coast, a robust storm protection plan is critical to maintaining and improving grid resiliency and storm restoration. Safe and reliable electric service is essential to the life, health, and safety of the public, and has become a critical component of modern life. lmportantly, as evidenced by the significant numbers of Florida's workforce that are working remotely during the COVID- 19 pandemic, today's digital society, economy, national security, and daily life are more dependent on reliable electric service than ever before. While no electrical system can be made completely resistant to the impacts of hurricanes and other extreme weather conditions, the programs included in FPL's SPP have already demonstrated that they 5 a See Appendix A. Docket No. 2O200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 10 of 48 mitigate and will continue to mitigate the impacts of future storms.s While FPL's nation- leading initiatives have made significant progress toward strengthening FPL's infrastructure, continuing these previously approved storm hardening and storm preparedness programs in the SPP, together with the new storm surge/flood mitigation substation program, is appropriate and crucial to further mitigate restoration costs and outage times, continue to provide safe and reliable electric service to customers, and meet current and future needs and expectations of customers, today and for many years to come. lll. Description of Service Area and T&D Facilities Pursuant to Rule 25-6.030(3)(c), F.A.C., this section provides a description of FPL's service area, including areas prioritized for enhancement, if any, and any areas where FPL has determined that enhancement of its existing T&D facilities would not be feasible, reasonable, or practical at this time. Today, FPL's service territory consists of approximately 28,000 square miles. To serve its more than 5 million customers, FPL has constructed a T&D electric grid that contains approximately 75,000 miles of electrical lines, including: . Approximately 42,000 miles of overhead distribution lines; . Approximately 26,000 miles of underground distribution lines; . Approximately 7,000 miles of high-voltage transmission lines; . Approximately 1.2 million distribution poles; and . Approximately 68,000 transmission structures. FPL's service territory is divided into sixteen (16) distribution management areas. A map depicting FPL's service territory and distribution management areas (with the number of customers served within each management area) is provided in Appendix B. At this time, FPL has not identified any areas of its service territory where its SPP programs would not be feasible, reasonable, or practical. While all of FPL's SPP 5 lt is important to note that despite the implementation of these storm hardening and storm preparedness programs, outages will still occur when severe weather events impact Florida. 6 Docket No. 202O0071-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 1 1 of 48 programs are currently system-wide initiatives, annual activities are prioritized based on certain factors such as last inspection date, last trim date, reliability performance, and efficient resource utilization.o At this time, there is no area specifically targeted or prioritized for enhanced performance based on its geographical location. lV. 2020-2029 SPP Proqrams Pursuant to Rule 25-6.030(3XcXd), F.A.C., this section provides a description of each program included in FPL's SPP. lf applicable, each program description below includes: (1) a description of how each program is designed to enhance FPL's existing transmission and distribution facilities including an estimate of the resulting reduction in outage times and restoration costs due to extreme weather conditions; (2) identification of the actual or estimated start and completion dates of the program; (3) a cost estimate including capital and operating expenses; (4) a comparison of the costs and the benefits; and (5) a description of the criteria used to select and prioritize storm protection programs. A. Pole Inspections - Distribution Program 1 n the P ram and The Pole lnspection - Distribution Program included in the SPP is a continuation of FPL's existing Commission-approved distribution pole inspection program. Below is an overview of FPL's existing distribution inspection program and its associated benefits. a. Overview of the Distribution Pole I nsoection Prooram ln response to the 2004-2005 storm seasons and, in particular, the "large number of poles throughout Florida that required replacement," the Commission required investor-owned utilities ("lOUs") to implement an eight-year pole inspection cycle for all wood distribution poles.T FPL's plan was approved in September 20068 and modified in January 2007.e 6 The criteria and factors used to select and prioritize projects within each SPP program are described below. 7 See Order No. PSC-06-0144-PAA-E|. I See, Order No. PSC-06-0778-PAA-EU. e See Order No. PSC-07-0078-EU. 7 Docket No. 2020007t-El FPL'i 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 12 of 48 Subsequently, FPL expanded its distribution pole inspection plan to also include concrete poles. FPL's eight-year pole inspection cycle for all distribution poles targets approximately 1/8 of the system annually (the actual number of poles inspected can vary somewhat from year to year). To ensure inspection coverage throughout its service territory, FPL established nine (9) inspection zones (based on FPL's management areas and pole population) and annually performs pole inspections of approximately 1/8 of the distribution poles in each of these zones, as well as any necessary remediation as a result of such inspections. FPL utilizes Osmose Utilities Services, lnc. ("Osmose"), an industry-leading pole inspection contractor, to perform the system-wide inspection of its distribution poles. FPL's strength and loading calculations for its distribution poles and pole inspections are based on the National Electrical Safety Code's ("NESC') Grade B construction standard, as outlined by Table 261-1A section 26 of the NESC. Osmose utilizes mobile computing technology to record inspection data and to calculate strength and loading. The loading calculation, span lengths, attachment heights, and wire sizes are recorded in the mobile computer to determine whether the remaining pole strength capacity meets or exceeds NESC requirements. This data is then transferred to FPL's Geographic lnformation System ("GlS"). Pole locations inspected by Osmose are also randomly audited by FPL to verify that inspections are completed and meet inspection standards. lnspections include a visual inspection of all distribution poles from the ground-line to the top of the pole to identify visualdefects (e.9., woodpecker holes, split tops, decayed tops, cracks, etc.). lf, due to the severity of the defects, the poles are not suitable for continued service, the poles are designated for replacement. Wood poles that pass the above-ground visual inspection are excavated to a depth of 18" (where applicable), and sounded and bored to determine the internal condition of the pole. Poles encased in concrete or asphalt are not excavated, but are sounded and bored to determine their internal condition using a standard industry-accepted inspection process called "Shell Boring." All suitable wood poles receive external and/or internal preservative treatment or, if not suitable, are replaced. Strength calculations are also 8 Docket No. 20200071-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 13 of 4B performed on wood poles to determine compliance with NESC requirements. The poles that are not suitable for continued service are designated for replacement or remediation. ln 2014, FPL obtained Commission approval to: (1) exempt the loading assessment during the second eight-year cycle for any pole that had less than 80% of full load during FPL's initial eight-year cycle; and (2) excavate Chromium CopperArsenate ('CCA') poles every 28 years (extended from 16 years originally approved by the Commission).10 To ensure that these exceptions to the standard eight-year inspection cycle do not compromise existing safety and storm hardening programs, FPL conducts annual testing on 1o/o of the exempted poles. b. Benefits of the Distribution Pole lnspection Proqram The Commission has previously found that "efforts to maintain system components can reduce the impact of hurricanes and tropical storms upon utilities' transmission and distribution systems," and noted that an "obvious key component in electric infrastructure is the transmission and distribution poles.'11 The Commission has also previously identified multiple benefits of and reasons for justifying pole inspections cycles for electric utilities, including, but no limited to: the likelihood of increased hurricane activity in the future; the high probability for equipment damage if a pole fails during a storm; the likelihood that failure of one pole often causes other poles to fail; the fact that deteriorated poles are more prone to fail when exposed to high winds; the fact that Florida electric utilities replaced nearly 32,000 poles during the 2004 storm restoration efforts; and the fact that restoration times increase significantly when a large number of poles fail, which limits the electric utilities' ability to respond quickly to widespread outages.l2 ln addition to the benefits discussed above that underlie the creation of the Commission's mandated pole inspection requirements, recent storm events indicate that FPL's distribution pole inspection program has contributed to the overall improvement in distribution pole performance during storms, resulting in reductions in storm damage to poles, days to restore, and storm restoration costs. The table below compares distribution 10 See Order No. PSC-14-0594-PAA-El 11 See Order No. PSC-06-0144-PAA-E. 12 See id. I Docket No. 20200071-El FPL's 2O2O-2029 Storm Protection Plan Exhibit MJ-1, Page '14 of 48 pole performance for Hurricane Wilma, which occurred in 2005 before FPL implemented its current distribution pole inspection program, and Hurricane lrma, which occurred in 2017 after FPL implemented its current distribution pole inspection program: Hurricane Wilma Hurricane lrma H u rricane Strength (Category)3 4 Customer Outages (Millions)3.2 4.4 Distribution Poles Replaced >12,400 <2,90013 Total Days to Restore 18 10 Average Days to Restore 5.4 2.1 FPL's Commission-approved distribution pole inspection program has facilitated the replacement and/or strengthening of over 140,000 distribution poles since it was first implemented in 2006 and has directly improved and will continue to improve the overall health and storm resiliency of its distribution pole population. 2. Actual/Estimated Start and Completion Dates The SPP will continue FPL's ongoing Commission-approved distribution pole inspection program described above. With approximately 1.2 million distribution poles as of year- end 2019, FPL expects to inspect approximately 150,000 poles annually (spread throughout its nine inspection zones) during the 2020-2029 SPP period. 3. Cost Estimates Estimated/actual annual distribution pole inspection costs are a function of the number of inspections estimated to be/actually completed and the number of poles estimated to be/actually remediated/replaced as a result of the annual inspections. Although costs to inspect the poles are operating expenses, the vast majority of pole inspection program costs are capital costs resulting from remediation/replacement of poles that fail inspection. 13 Approximately 99% of distribution poles replaced after Hurricane lrma were non-hardened poles. 10 Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 15 of 48 The table below provides a comparison of the 2017-2019 total actual distribution pole inspection costs with the 2020-2022 (first three years of the SPP) total estimated distribution pole inspection costs and the 2020-2029 lotal estimated distribution pole inspection costs: Total Program Costs Annual Average Program millions Costs millions Further details regarding SPP estimated distribution pole inspection costs, including estimated annual capitalexpenditures and operating expenses, are provided in Appendix c.14 4. Comparison of Costs and Benefits As provided in Section (lV)(A)(3) above, during 2020-2029, total costs for FPL's Pole lnspection - Distribution Program are expected to average approximately $61 million per year. Benefits associated with FPL's Pole lnspection - Distribution Program, discussed in Sections ll and IV(AX1)(b) above, include a more storm resilient pole population that will result in reductions in pole failures and poles needing to be replaced during storms, fewer storm-related outages and reductions in storm restoration costs. 5. Criteria used to Select and Prioritize the Proqram Poles to be inspected annually are selected/prioritized within each of the nine (9) inspection zones established throughout FPL's service territory based on the last cycle's inspection dates, to ensure that poles are in compliance with FPL's established eight-year 14 Note, the 2020-2029 program costs shown above are projected costs estimated as of the time of this filing. Subsequent projected and actual costs could vary by as much as 10% to 15%. The annual projected costs, actual/estimated costs, actuals costs, and true-up of actual costs to be included in FPL's Storm Protection Plan Cost Recovery Clause will all be addressed in subsequent and separate Storm Protection Plan Cost Recovery Clause filings pursuant to Rule 25-6.031, F.A.C. The Commission has opened Docket No.20200092-El to address Storm Protection Plan Cost Recovery Clause petitions to be filed the third quarter of 2020. 2017-2019 $1 52 $51 2020-2022 $1 70 $sz 2020-2029 $605 $61 11 Docket No. 20200071-El FPL's 2020-2O29 Storm Protection Plan Exhibit MJ-1, Page 16 of 48 cycle. As such, approximately 1/8 of the distribution poles in each inspection zone are inspected annually. At this time, FPL has not identified any areas where the Pole lnspection - Distribution Program would not be feasible, reasonable or practical. B.Structures/Other Equipment lnspections Transmission Program 1. Description of the Prooram and Benefits The Structures/Other lnspections - Transmission Program included in the SPP is a continuation of FPL's existing Commission-approved transmission inspection program. Below is an overview of FPL's existing transmission inspection program and the associated benefits. a Overview of the Transmission nsnecfion Prooram ln 2006, as part of its Storm Preparedness lnitiative No. 3, the Commission required electric utilities to develop and implement plans to fully inspect alltransmission structures, substations, and all hardware associated with these facilities on a six-year cycle. Consistent therewith, FPL implemented a Commission-approved transmission inspection plan in 2006 and has continued that plan to date. Under its Commission-approved transmission inspection plan, FPL inspects its transmission circuits, substations, and other equipment on a six-year cycle. Additionally, all of FPL's transmission structures are visually inspected from the ground each year. Finally, FPL performs climbing or bucket truck inspections on all wood transmission structures on a six-year cycle and all steel and concrete structures on a ten-year cycle. lnspections for wood structures include an overall assessment of the condition of the structures, as well as other pole/structure components including the foundation, all attachments, insulators, guys, cross-braces, cross-arms, and bolts. lf a wood transmission structure does not pass visual inspection, it is designated for replacement with a concrete or steel transmission structure. 12 Docket No. 20200071-El FPL'i 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 17 of 48 For steel and concrete structures, the visual inspection includes an overall assessment of the structure condition (e.9., cracks, chips, exposed rebar, and rust) as well as other pole/structure components including the foundation, all attachments, insulators, guys, cross-braces, cross-arms, and bolts. lf a concrete or steel pole/structure fails the inspection, it is designated for repair or replacement. The SPP will continue FPL's current transmission inspection program which requires: (a) transmission circuits and substations and all associated hardware to be inspected on a six-year cycle; (b) wood structures to be inspected visually from the ground each year and climbing or bucket truck inspections to be conducted on a six-year cycle; and (c) steel and concrete structures to be inspected visually each year and climbing or bucket truck inspections to be conducted on a ten-year cycle. b. Benefits of the Transmission lnspection Proqram As noted in Section |V(AX1)(b) above, the Commission has found numerous benefits and reasons justifying inspections of electrical utility facilities, including transmission facilities. lmportantly, the transmission system is the backbone of the electric grid. While outages associated with distribution facilities (e.9., a transformer, lateral orfeeder) can result in an outage affecting anywhere from a few customers up to several thousands of customers, a transmission related outage can affect tens of thousands of customers. Additionally, an outage on a transmission facility could cause cascading (a loss of power at one transmission facility can trigger the loss of power on another interconnected transmission facility, which in turn can trigger the loss of power on another interconnected transmission facility, and so on) and result in the loss of service for hundreds of thousands of customers. As such, it is imperative that transmission facilities be properly inspected using appropriate cycles and standards to help ensure they are prepared for storms. Further, the performance of FPL's transmission facilities during recent storm events indicates FPL's transmission inspection program has contributed to the overall storm resiliency of the transmission system and provided savings in storm restoration costs. The table below compares the performance of FPL's transmission system for Hurricane Wilma, which occurred in 2005 before FPL implemented its current transmission 13 Docket No. 20200071-El FPL's 2020-2O29 Storm Protection Plan Exhibit MJ-'l , Page 18 of 4B inspection program, and Hurricane lrma, which occurred in 2017 after FPL implemented its current transmission inspection program: Transmission Facilities Hurricane Wilma Hurricane lrma lm ent As shown above, the impacts on FPL's transmission facilities associated with Hurricane lrma were significantly reduced from those experienced with Hurricane Wilma, even though Hurricane lrma's winds were stronger and its path impacted substantially more of FPL's facilities. As reflected in the Commission's reasoning for mandating transmission facility inspections, FPL submits that its systematic transmission inspection program is a key factor for this improved performance. 2. Actual/Estimated Start and Completion Dates The SPP will continue FPL's ongoing Commission-approved transmission inspection program described above. This requires FPL to inspect: (a) transmission circuits and substations and all associated hardware on a six-year cycle, (b) wood structures to be visually inspected from the ground each year and conduct climbing or bucket truck inspections on a six-year cycle; and (c) steel and concrete structures visually each year and conduct climbing or bucket truck inspections on a ten-year cycle. 3. Cost Estimates Estimated/actual annual transmission inspection costs are a function of the number of inspections estimated to be/actually completed and the transmission facilities estimated to be/actually remediated/replaced as a result of those annual inspections. Although the inspection costs are operating expenses, the vast majority of the transmission inspection program costs are capital costs resulting from remediation/replacement of facilities that fail inspection. The table below provides a comparison of the 2017-2019 total actual transmission inspection costs with the 2020-2022 (first three years of the SPP) total estimated 345 215 38%Line Section Outages 62YoSubstation Outages 241 92 95o/o1005Structures Failed 14 Docket No. 2O2O007|-El FPL's 202O-2029 Storm Protection Plan Exhibit MJ-1 , Page 19 of 48 transmission inspection costs and the 2020-2029 totalestimated transmission inspection COSTS: Total Program Costs Annual Average Program millions Costs millions Further details regarding the SPP estimated transmission inspection costs, including estimated annual capitalexpenditures and operating expenses, are provided in Appendix c.15 4. Comparison of Costs and Bengfilg As provided in Section |V(BX3) above, during 2020-2029, total costs for FPL's Structures/Other lnspections - Transmission Program are expected to average approximately $50 million per year. Benefits associated with the Structures/Other lnspections - Transmission Program discussed in Sections ll and |V(BX1)(b) above, include avoiding outages that can affect tens of thousands of customers and, in particular, cascading outages where the loss of service can affect hundreds of thousands of customers. 5. Criteria used to Select and Prioritize the Proqram As explained above, FPL visually inspects from the ground alltransmission structures on an annual basis. For the inspection of transmission circuits and substations and all associated hardware, the facilities are selected/prioritized throughout FPL's service territory based on the last cycle's inspection dates, to ensure that facilities are inspected in compliance with the established six-year inspection cycle. Similarly, for bucket truck or climbing inspections, structures are selected/prioritized throughout FPL's service territory based on the last cycle's inspection dates, to ensure that structures are inspected 2017-2019 $1 28 $43 2020-2022 $e7 $32 $500 $502020-2029 15 See footnote 14 15 Docket No. 20200O71-El F PL's 2O20-2029 Storm Protection Plan Exhibit MJ-'1 , Page 20 of 4B in compliance with the established six-year (wood) and ten-year (steel and concrete) cycles. At this time, FPL has not identified any areas where the Structures/Other lnspections - Transmission Program would not be feasible, reasonable or practical. Feeder Hardening (EWL) - Distribution Program 1. Description of the Proqram and Benefits The Feeder Hardening (EWL) - Distribution Program included in the SPP is a continuation of FPL's existing Commission-approved approach (most recently approved in Docket No.20180144-El) to harden existing feeders and ceftain critical distribution poles, as well as FPL's initiative to design and construct new pole lines and major planned work to meet the NESC's extreme wind loading criteria ("EWL'). FPL will continue the distribution feeder hardening program untll2024, when FPL expects 100% of its feeders to be hardened or underground. Below is an overview of FPL's existing distribution feeder hardening program and the associated benefits. a. Overview of the Distribution Feeder Hardeninq Proqram The foundation for FPL's distribution feeder hardening program was the extensive forensic and other analyses that FPL conducted after Hurricane Wilma.16 These analyses concluded that "wind only" (as opposed to, for example, trees or other flying debris) was the predominant root cause of distribution pole breakage. This data, together with the overall performance of FPL's transmission poles that were already built to the NESC EWL standards and the performance of hardened feeders during Hurricanes Matthew and lrma, formed the basis for FPL's feeder hardening strategy. The SPP will continue FPL's previously approved approach to apply EWL criteria to harden existing distribution feeders and ceftain critical poles. The NESC extreme wind map for Florida will continue to be applied to FPL's system by dividing the application of 16 These analyses were conducted either directly by FPL or with the aid of external resources (e.9., KEMA, lnc.). c 16 Docket No. 202O0071-El F PL's 2O20-2029 Storm Protection Plan Exhibit MJ-'1 , Page 2'1 of 48 EWL into three wind regions, corresponding to expected extreme winds of 105, 130 and 145 mph, as shown below. FPL Extreme Wind Reqions - mph (meter/sec) r4o(G3) 105 mph 130 mph 145 mph so(Gn By evaluating each of the counties served by FPL, including each county's applicable wind zones, FPL determined that utilizing three extreme wind regions of 105, 130 and 145 mph for its service territory was appropriate for the following reasons: A smaller number of wind regions generate advantages through efficiency of work methods, training, engineering and administrative aspects (e.9., standards development and deployment); and I E a Using 105, 130 and 145 mph wind zones is a well balanced approach that recognizes differences in the EWL requirements in the counties within each region. The SPP will also continue to utilize FPL's Design Guidelines and processes that apply EWL criteria to the design and construction of new pole lines and major planned work, including pole line extensions and relocations and certain pole replacements. Depending on the scope of the work that is performed in a particular project, this could result in the EWL hardening of an entire circuit (in the case of large-scale projects) or in EWL hardening of one or more poles (in the case of small projects) so that the affected circuit will be in a position to be fully EWL hardened in the future. The Design Guidelines are 17 Docket No. 20200071-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1, Page 22 ot 48 primarily associated with changes in pole class, pole type, and desired span lengths to be utilized. The Design Guidelines standardize the design and construction of new pole lines and major planned work to ensure that these projects align with FPL's hardening strategy. FPL's current pole sizing guidelines provide for a minimum installation of: Class 2 wood poles for all new feeder and three-phase lateral work; Class 3 wood pole for two-phase and single-phase lateral work; and Class 3 wood pole for service and secondary work. For critical poles, FPL's current pole sizing guidelines provide for the installation of concrete poles at accessible locations. These guidelines significantly increase the wind ratings (up to nearly 50 percent) from the Design Guidelines in place prior to 2007. FPL's current Distribution Design Guidelines are provided in Appendix D. To determine how an existing overhead circuit or critical pole will be hardened, a field survey of the circuit facilities is performed. By capturing detailed information at each pole location, such as pole type, class, span distance, attachments, wire size, and framing, a comprehensive wind-loading analysis can be performed to determine the current wind rating of each pole, and ultimately the circuit itself. This data is then used to identify specific pole locations on the circuit that do not meet the desired wind rating. For all poles that do not meet the applicable EWL, FPL develops recommendations to increase the allowable wind rating of the pole. FPL plans to continue to utilize its "design toolkit" that focuses on evaluating and using cost-effective hardening options for each location, including: Storm Guying - lnstalling a guy wire in each direction perpendicular to the line, which is a very cost-effective option but is dependent on proper field conditions; Equipment Relocation - Moving equipment on a pole to a stronger pole near- by; lntermediate Pole - lnstalling an additional single pole within long span lengths, which reduce the span length and increases the wind rating of both adjacent poles; a a a 18 Docket No. 20200071-El F PL's 2020-2029 Storm Protection Plan Exhibit MJ-'l , Page 23 of 48 Upgrading Pole Class - Replacing the existing pole with a higher class pole to increase the pole's wind rating; and; Undergrounding Facilities - Evaluated on a case-by-case basis using site- specific factors and conditions. These options are not mutually exclusive and, when used in combination with sound engineering practices, provide cost-effective methods to harden a circuit. FPL's design recommendations also take into consideration issues such as hardening, mitigation (minimizing damage), and restoration (improving the efficiency of restoration in the event of failure). Since multiple factors can contribute to losing power after a storm, utilizing this multi-faceted approach to pole design helps to reduce the amount of work required to restore power to a damaged circuit. b. Benefits of the Distribution Feeder Hardeninq Program Distribution feeders are the backbone of the distribution system and are critical component to providing safe and reliable electric service to FPL's customers. Thus, improving the storm resiliency of distribution feeders logically provides substantial benefits for customers. Therefore, hardening distribution feeders has been and continues to be one of FPL's highest storm hardening priorities. During the period 2006-2019, FPL hardened over 1,300 existing feeders, the vast majority being Critical lnfrastructure Function ("ClF") feeders (i.e., feeders that serve hospitals, 911 centers, police and fire stations, water treatment facilities, county emergency operation centers) and Community Project feeders (i.e., feeders that serve other key community needs like gas stations, grocery stores, and pharmacies) throughout FPL's service territory. Additional feeders were hardened as a result of FPL's Priority Feeder lnitiative, a reliability program that targeted feeders experiencing the highest number of interruptions and/or customers interrupted. As of year-end 2019, approximalely 54o/o of FPL's feeders were either hardened or placed underground. Additionally, FPL has hardened 125 highway crossings and over 300 "01" switches (first pole out of a substation with a feeder switch). FPL also applied EWL to the design and construction of new pole a a 19 Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 24 ol 48 lines and major planned work, including pole line extensions and relocations and certain pole replacements. As provided in previous FPL Annual Reliability Report filings and three-year Storm Hardening Plan filings (per Rule 25-6.0342, F.A.C.) hardened feeders perform better than non-hardened feeders. This has been demonstrated in-day-to-day reliability performance and during severe storms. For example, when comparing day-to-day reliability performance, hardened feeders have performed 40o/o better than non-hardened feeders. AIso, during Hurricanes Matthew and lrma, hardened feeders performed better than non- hardened feeders. Additionally, in Docket No. 20170215-EU, the Commission reviewed the electric utilities' storm hardening and storm preparedness programs and found for Hurricane lrma that: (1) outage rates were nearly 20% less for hardened feeders than non-hardened feeders; (2) CMH to restore hardened feeders were 50% less than non-hardened feeders (primarily due to hardened feeders experiencing less damage than non-hardened hardened feeders); and (3) hardened feeders had significantly less pole failures as compared to non-hardened feeders.lT 2. Actual/Estimated Start and Completion Dates FPL initiated its feeder hardening initiative in 2006. As of year-end 2019, there are approximately 1,600 feeders remaining to be hardened or placed underground. FPL expects to harden approximately 250-350 feeders annually, with 100% of FPL's feeders expected to be hardened or underground by year-end 2024 and with the final costs of the program to be incurred in 2025. 17 See Review of Florida's Electric Utility Hurricane Prepared ness and Restoration Actions 2018, Docket No. 20170215-EU (July 24,2018), available at http://www.psc.state.fl.us/librarvffilinqs/2018/04847-2018/04847-2018.pdf. 20 Docket No. 20200071-El FPL's 2O2O-2029 Storm Protection Plan Exhibit MJ-1, Page 25 of 48 3. Cost Estimates Estimated distribution feeder hardening costs are determined utilizing the length of each feeder, the average historical feeder hardening cost per mile, and updated cost assumptions (e.9., labor and materials). The table below provides a comparison of the 2017-2019 total actual distribution feeder hardening costs with the 2020-2022 (first three years of the SPP) total estimated distribution feeder hardening costs and the total estimated distribution feeder hardening costs to be incurred over the period of 2020-202518: Total Program Gosts Annual Average Program millions Costs illions Further details regarding the SPP distribution feeder hardening costs, including estimated annual capital expenditures are provided in Appendix C.1s 4. Comparison of Costs and Benefits As provided in Section lV(C)(3) above, during 2020-2025, total costs for FPL's Feeder Hardening (EWL) - Distribution Program average approximately $534 million per year through 2025. Benefits associated with the Feeder Hardening (EWL) - Distribution Program discussed in Sections ll and |V(CX1Xb) above, include improved storm resiliency as well as improved day{o-day reliability. 5. Criteria used to Select and Prioritize the Proqram As explained above, there are approximately 1,600 feeders remaining to be hardened or placed underground. FPL attempts to spread its annual projects throughout its service territory. ln prioritizing the remaining existing feeders to be hardened each year, 18 lt is currently estimated that 100% of FPL's feeders will be hardened or underground by year- end 2024, with the final costs to be incurred in 2025. 1e See footnote 14. 2017-2019 $1,492 $497 2020-2022 $1,959 $653 2020-2025 $3,206 $534 21 Docket No. 2O200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 26 of 48 considerations include the feeder's historical reliability performance, restoration difficulties (e.9., environmentally sensitive areas, islands with no vehicle access, river crossings, etc.), on-going or upcoming internal/external projects (e.9., FPL maintenance or system expansion projects, municipal overhead/underground conversion project or municipal road project) and geographic location. At this time, FPL has not identified any areas where the Feeder Hardening (EWL) - Distribution Program would not be feasible, reasonable or practical. D. Lateral Hardening (Undergrounding) - Distribution Program 1. Description of the Proqram and Benefits ln 2018, FPL implemented a three-year Commission-approved SSUP Pilot. The SSUP Pilot is a program that targets certain overhead laterals for conversion from overhead to underground. As part of its SPP, FPL will expand undergrounding laterals in 2021-2029. Below is an overview of FPL's Lateral Hardening (Undergrounding) - Distribution Program and the associated benefits. a. Overview of the Distribution Lateral Hardening Proqram As part of the SPP, FPL will complete its existing approved three-year SSUP Pilot (in 2020) and expand the application of the SSUP during 2021-2029 to the implementation of the system-wide Lateral Hardening (Undergrounding) - Distribution Program. The SSUP Pilot targeted certain overhead laterals that were impacted by recent storms and that have a history of vegetation-related outages and other reliability issues for conversion from overhead to underground. Key objectives of the SSUP Pilot included validating conversion costs and identifying cost savings opportunities, testing different design philosophies, better understanding customer impacts and sentiments, and identifying barriers (e.9., obtaining easements, placement of transformers, and attaching entities' issues). Two design options are being utilized when FPL converts overhead laterals to underground, referred to as the North American and the European designs. The North American design currently is the predominant design, but both undergrounding designs eliminate all overhead lateral and service wire. The North American design generally 22 Docket No. 20200071-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1, Page 27 of 48 utilizes more primary conductor and a greater number of smaller-sized transformers, with less customers per transformer, and is better suited for front lot construction and service. The European design utilizes more secondary conductor, and a smaller number of larger- sized transformers, with more customers per transformer, and is better suited for rear lot construction and service. Where practical, FPL attempts to relocate existing facilities from the rear of to the front of customers' premises; however, there are instances where that option is not available (e.9., FPL is unable to obtain easements in front of customers' premises). FPL's standard design is the North American design (front lot construction), but FPL is gaining important experience and knowledge from its utilization of the European design (rear lot construction), which it can then better utilize for future projects as appropriate. As part of the conversion process, FPL is also installing meter base adaptors that allow underground service to be provided to the customer by utilizing the existing meter and meter enclosure. The meter base adaptors minimize the impact on customer-owned equipment and facilities. For example, in ceftain situations, overhead to underground conversions of electric service can trigger a local electrical code requirement that necessitates a customer upgrade of the home's electric service panel. This can cost the customer thousands of dollars. However, by utilizing a meter base adaptor, overall costs are reduced and customers are able to avoid the need and expense to convert their electrical service panels. b. Benefits of the Distribution Lateral Hardenino Prooram Laterals make up the majority of FPL's distribution system. For example, system-wide, there are over 180,000 laterals (including lateralswith multi-stage fusing), in contrastto approximately 3,300 feeders, and there are 1.8 times as many miles of overhead laterals as there are overhead feeders (approximately 23,000 miles vs. 13,000 miles, respectively). Additionally, while feeders are predominately located in the front of customers' premises, many laterals are "rear of' or behind customers' premises. This is especially the case in older neighborhoods located throughout FPL's service territory. Generally, facilities in the rear of customers' premises take longer to restore than facilities in front of customers' premises because rear-located facilities are more difficult to access 23 Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 2B of 48 and are more likely to be near vegetation. This results in a greater amount of CMH being devoted to laterals during storm restoration. The basis for FPL's SSUP Pilot and the proposal to expand upon the Pilot under the SPP is the performance of the underground facilities as compared to overhead facilities and the extensive damage to the overhead facilities caused by vegetation during Hurricanes Matthew and lrma. This performance was demonstrated by the results of FPL's analysis referenced above in Section |V(AX1)(b) and contained in the Commission's Review of Florida's Electric Utility Hurricane Preparedness and Restoration Actions in 2018,2o which is summarized in the table below: Storm and Faci Laterals Out Total Laterals % Out Finally, it is important to note that underground facilities also perform better than overhead facilities on a day-to-day basis. For example, based on the reliability performance metrics for overhead and underground facilities provided to the Commission in FPL's February 28,2020 Annual Reliability Report filing, the System Average lnterruption Duration lndex ("SAlDl') for underground facilities is significantly better than hybrid facilities (combination of overhead and underground) or overhead facilities as shown in the table below: SAIDI2l Year UG OHH brid 20 See footnote 17. 21 See pages 93-97 of FPL's February 28, 2020 Annual Reliability Report filing for more details on day-to-day reliability performance - overhead vs. underground. 3,473 82,729 4o/oMatthew OH Matthew UG 238 101,892 0.2o/o lrma OH 20,341 84,574 24o/o 103,384 4o/olrma UG 3,767 2015 21.4 102.4 60.0 17.2 80.4 57.62016 2017 17.7 89.6 55.5 2018 21.2 89,0 54.2 87.4 49.4201930.3 24 Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 29 of 48 2. Actual/Estimated Start and Completion Dates FPL's SSUP Pilotwas initiated in 2018. Bythe end of 2020, the third and final yearof the SSUP Pilot, FPL expects to have converted a total of 220-230laterals from overhead to underground, which is consistent with the SSUP Pilot's plan most recently approved in Docket No. 20180144-El. As part of its SPP, FPL will incorporate, continue, and expand the SSUP to provide the benefits of underground lateral hardening throughout its system. After completing the SSUP Pilot in 2020, FPL estimates it will convert 300-700 laterals annually. ln 2024-2029 FPL estimates it will convert 800-900 laterals annually. 3. Cost Estimates Estimated lateral undergrounding costs are determined utilizing the length of each lateral, the average historical lateral undergrounding cost per mile, and updated cost assumptions (e.9., labor and materials). The table below provides a comparison of the 2018-2019 total actual costs for the SSUP Pilot with the 2020-2022 (first three years of the SPP) total estimated distribution lateral hardening program costs and the 2020-2029 total estimated distribution lateral hardening program costs: Total Annual Average P ram Costs millions ram Gosts illions Further details regarding the SPP estimated distribution lateral hardening program costs, including estimated annual capital expenditures are provided in Appendix C.23 4. Comparison of Costs and Benefits As provided in Section |V(DX3) above, during 2020-2029, total costs for FPL's Lateral Hardening (Undergrounding) - Distribution Program average approximately $510 million per year. Benefits associated with the Lateral Hardening (Undergrounding) - Distribution 22 The Storm Secure Underground Program Pilot was initiated in 2018 23 See footnote 14. 2019-201922 $76 $38 2020-2022 $676 $225 2020-2029 $5,101 $s1 0 25 Docket No. 20200071-El FPL'S 2O2O-2O29 Storm Protection Plan Exhibit MJ-1 , Page 30 of 4B Program discussed in Sections ll AND |V(DX1)(b) above, include improved storm resiliency as well as improved day-to-day reliability. 5. Criteria used to Select and Prioritize the Proqram FPL will select/prioritize future laterals for conversion to undergrounding based on an overall feeder performance methodology. Rather than selecting individual "stand-alone" laterals, FPL will underground all the laterals on a feeder such that when a hardened feeder that has experienced an outage is restored, all associated underground laterals would also be restored (unless the underground lateralwas damaged). On average, there are currently 20-30 overhead laterals on a feeder. The selection and prioritization of the laterals to be converted will be based on a methodology that considers: (a) all of the overhead laterals on each feeder; (b) outage experience during the recent Hurricanes Matthew and lrma; (c) the number of vegetation-related outages experienced over the most recent 10 years; and (d) the total number of lateral and transformer outages experienced over the most recent 10 years. These overhead lateral factors are totaled for each feeder, and the feeders are ranked based on these totals. All laterals on the feeders will then be hardened according to the ranking of each feeder. In order to optimize resources and provide lateral hardening throughout FPL's system, lateral hardening projects will be performed annually in all sixteen (16) of FPL's management areas. At this time, FPL has not identified any areas where the Lateral Hardening (Undergrounding) - Distribution Program would not be feasible, reasonable, or practical. However, in areas that are more prone to flooding or storm surge, FPL will consider alternative construction methods (e.9., elevating transformer pads). E Wood Structures Hardening (Replacing) - Transmission Program 1. Descriptio n of the Prooram and Benefits The Wood Structure Hardening (Replacing) - Transmission Program included in the SPP is a continuation of FPL's existing transmission hardening program through the end of 2022, when FPL expects that 100% of its transmission structures will be steel or concrete. 26 Docket No. 20200071-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 31 of 48 Below is an overview of FPL's existing transmission wood structure hardening program and the associated benefits. a. Overview of the Transmission Hardening Program While FPL's transmission facilities were affected by the 2004 and 2005 storms, the damage experienced was significantly less than the damage sustained by distribution facilities. A primary reason for this resulted from the fact that transmission structures were, at that time, already constructed to meet EWL consistent with Florida Statute 366.04 and the National Electrical Safety Code, Rule 250 C. Based on the forensic data collected from the 2004 and 2005 storms, FPL implemented a Commission-approved transmission storm hardening initiative to replace all wood transmission structures, which accounted for nearly 70 percent of all transmission structures replaced during the2004-2005 storm seasons, with steelor concrete structures. As explained below, this initiative is ongoing and expected to be completed by the end of 2022. As part of its SPP, FPL will continue its initiative to replace all wood transmission structures with steel or concrete structures. b. Benefits of the Transmission Hardening Program While an outage associated with distribution facilities (e.9., a transformer, lateral, or feeder) can impact up to several thousands of customers, a transmission-related outage can result in an outage affecting tens of thousands of customers. Additionally, an outage on a transmission facility could cause cascading (a loss of power at one transmission facility can trigger the loss of power on another interconnected transmission facility, which in turn can trigger the loss of power on another interconnected transmission facility, and so on) and result in the loss of service for hundreds of thousands of customers. As a result, the prevention of transmission-related outages is essential. As discussed earlier, while transmission facilities performed significantly better than distribution facilities during the 2004 and 2005 storms, there were several opportunities for improvement identified, including the replacement of wood transmission structures. As a result of its transmission inspection programs and its replacement of wood transmission structures, FPL's transmission facilities have demonstrated to be more storm resilient. 27 Docket No. 2O200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 32 of 48 The table below compares the performance of FPL's transmission system for Hurricane Wilma, which occurred in 2005 before FPL implemented its current transmission hardening program, and Hurricane lrma, which occurred in 2017 after FPL implemented its current transmission hardening program: Hurricane Wilma Hurricane lrma % Line Section Outages 37o/o 17o/o Transmission Structure Failures 100 5 (all non-hardened) Transmission Substations De-energized 241 92 Days to Restore Substation Outages 5 1 As shown above, the impacts on FPL's transmission facilities associated with Hurricane lrma were significantly reduced from those experienced with Hurricane Wilma, even though Hurricane lrma's winds were stronger and its path impacted substantially more of FPL's facilities. 2. Actual/Estimated Start and Completion Dates FPL implemented its transmission hardening program in 2007. As of year-end 2019, 96% of FPL's transmission structures, system-wide, were steel or concrete, with less than 2,900 (or 4o/o) wood structures remaining to be replaced. FPL expects to replace the 2,900 wood transmission structures remaining on its system by year-end 2022. 3, Cost Estimates Estimated/actual annual transmission hardening costs are a function of the number of poles to be replaced, actual historical replacement costs, and updated cost assumptions (e.9., labor and materials). The vast majority of the transmission hardening program costs are capital costs resulting from replacement of the wood transmission structures. 28 Docket No. 20200O71-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 33 of 48 The table below provides a comparison of the 2017-2019 total actual transmission hardening costs with the 2020-2022 (first three years of the SPP) total estimated transmission hardening costs:24 Annual Average illions P ram Costs millions Further details regarding the SPP estimated transmission hardening costs, including estimated annual capitalexpenditures and operating expenses, are provided in Appendix c.25 4. Comparison of Costs and Benefits As provided in Section lV(E)(3) above, during 2020-2022, total costs for FPL's Wood Structure Hardening (Replacing) - Transmission Program average approximately $39 million per year. Benefits associated with the Wood Structure Hardening (Replacing) - Transmission Program discussed in Sections Il and |V(EX1)(b) above, include improved storm resiliency. 5. Criteria used to Select and Prioritize the Proqram The annual prioritization/selection criteria for the remaining wood structures to be replaced includes proximity to high wind areas, system importance, customer counts, and coordination with other storm initiatives (e.9., distribution feeder hardening). Other economic efficiencies, such as opportunities to perform work on multiple transmission line sections within the same transmission corridor, are also considered. At this time, FPL has not identified any areas where the replacement of the remaining wood transmission structures under the Wood Structure Hardening (Replacing) - Transmission Program would not be feasible, reasonable or practical. 24 FPL expects that 100% of the remaining wood transmission structures in its system will be replaced by year-end 2022. 25 See footnote 14. Total ram Gosts 2017-2019 $1 62 $s+ 2020-2022 $1 18 $3e 29 Docket No. 2020O071-El FPL'i 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 34 of 48 F. Substation Storm Surge/Flood Mitigation Program 1. Description of the Prooram and Benefits The Substation Storm Surge/Flood Mitigation Program is the only new program included in FPL's SPP. As explained below, Substation Storm Surge/Flood Mitigation Program is a new program to mitigate damage at several targeted distribution and transmission substations that are susceptible to storm surge and flooding during extreme weather events. Historically, several FPL distribution and transmission substations have been impacted by storm surge and/or flooding as a result of extreme weather conditions. For example, as a result of flooding caused by Hurricanes Matthew and lrma, FPL's St. Augustine substation was required to be proactively de-energized (r.e., shut down before water reached levels that would cause significant damage to powered substation equipment). Another example is FPL's South Daytona substation that was proactively de-energized during Hurricane lrma as a result of flooding. While proactively de-energizing those substations impacted by storm surge and/or flooding helps reduce damage to substation equipment, FPL is still required to implement both temporary flood mitigation efforts and repairs to substation facilities and equipment that become flooded as a result of extreme weather conditions. An outage associated with distribution substations can impact up to severalthousands of customers, and an outage associated with a transmission substation can result in an outage affecting tens of thousands of customers. Flooding and the need to proactively de-energize substations located in areas susceptible to storm surge and flooding can result in significant customer outages. For example, the flooding and de-energization of St. Augustine and South Daytona during Hurricane lrma resulted in more than 8,000 customer outages. Therefore, the prevention of outages at transmission and distribution substations due to storm surge or flooding is essential. To prevent/mitigate future substation equipment damage and customer outages due to storm surge and flooding, FPL's new Substation Storm Surge/Flood Mitigation Program will target and harden certain substations located in areas throughout FPL's service 30 Docket No. 202OO071-E\ FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 35 of 48 territory that are susceptible to storm surge or flooding during extreme weather events. Specifically, FPL plans to raise the equipment at certain substations above the flood level and construct flood protection walls around other substations to prevent/mitigate future damage due to storm surge and flooding. 2. Actual/Estimated Stad and Completion Dates At this time, FPL has identified between 8-10 substations where it initially plans to implement storm surge/flood mitigation measures over the next three years (2020-2022). FPL plans to initiate construction in late summer/early fall 2020 to raise the equipment at the St. Augustine substation, which is expected to be completed in2021. |n2021 and early 2022, FPL also plans to begin construction on flood protection walls for the other 7- 9 substations identified for mitigation, which is expected to be completed by 2022. 3. Cost Estimates The storm surge/flood mitigation costs associated with St. Augustine substation (raising substation equipment) are estimated to be approximately $10 million in total (2020 and 2021). Estimated storm surge/flood mitigation costs for the remaining 7-9 substations identified at this time (constructing surrounding flood walls) are estimated to be approximately$l3million intotal (2021 and2022). Seethetablebelowtheestimated annual program costs: Annual Average illions ram Costs millions Further details regarding the SPP estimated storm surge/flood mitigation costs, including estimated annual capitalexpenditures and operating expenses, are provided in Appendix c.26 4. As provided in Section |V(FX3) above, during 2020-2022, totalcosts for FPL's Substation Storm Surge/Flood Mitigation Program average approximately $8 million per year. Total ram Costs 2020-2022 $23 $8 26 See footnote 14. 31 Docket No. 20200071-El FPL's 2O2O-2029 Storm Protection Plan Exhibit MJ-1 , Page 36 of 48 Benefits associated with this program discussed in Section |V(FX1) above, include improved storm resiliency (avoiding storm surge/flood damage), reduced customer outages and storm restoration costs. 5. Criteria used to Select and Prioritize Projects The annual prioritization/selection criteria for the targeted substations is based on FPL's historical storm surge/flood experience, in particular, Hurricanes Matthew and lrma. At this time, for the targeted substations, FPL has not identified any areas where the upgrades would not be feasible, reasonable or practical. c. Vegetation Management - Distribution Program L Description of the Proqram and Benefits The Vegetation Management - Distribution Program included in the SPP is a continuation of FPL's existing Commission-approved Vegetation Management - Distribution Program. Below is an overview of FPL's existing Vegetation Management - Distribution Program and the associated benefits. a. Overview of the Veqetation Manaoement - Distribution Proqram Prior to 2006, FPL's Vegetation Management - Distribution Program consisted of inspecting and maintaining its feeders on a three-year average trim cycle and performing targeted trimming on certain feeders more frequently (e.9., targeting vegetation with faster growth rates and palm trees) through its "mid-cycle" program. Lateral trimming was prioritized based on reliability performance. Another important component of thisprogram was FPL's "Right Tree Right Place" initiative, which provided information to educate customers on FPL's vegetation management program and practices, safety issues, and the importance of placing trees in the proper location. After the 2004-2005 storm seasons, the Commission determined that the "vegetation management practices of the investor-owned electric utilities do not provide adequate assurance that tree clearances for overhead distribution facilities are being maintained in a manner that is likely to reduce vegetation related storm damage. We believe that 32 Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 37 of 48 utilities should develop more stringent distribution vegetation management programs."27 As result, FPL proposed and the Commission approved the continuation of FPL's system- wide three-year average trim cycle for feeders, mid-cycle targeted trimming for certain feeders, and its Right Tree Right Place initiative, as well as the implementation of a new six-year average trim cycle for laterals.28 These same initiatives, which have provided storm and day-to-day reliability benefits, remain in place today. Tree limbs and branches, especially palm fronds, are among the most common causes of power outages and momentary interruptions during both day{o-day operations and storm events. The primary objective of FPL's Vegetation Management - Distribution Program is to clear vegetation in areas where FPL is permitted to trim from the vicinity of distribution facilities and equipment in order to provide safe, reliable, and cost-effective electric service to its customers. The program is comprised of multiple initiatives designed to reduce the average time customers are without electricity as a result of vegetation-related interruptions. These include preventive maintenance initiatives (planned cycle and mid-cycle maintenance), corrective maintenance (trouble work and service restoration efforts), customer trim requests, and support of system improvement and expansion projects, which focus on long{erm reliability by addressing vegetation that will impact new or upgraded overhead distribution facilities. FPL's Vegetation Management Distribution Program's practices follow the NESC, the American National Standards lnstitute ('ANSI')4-300, and all other applicable standards, while considering tree species, growth rates, and the location of trees in proximity to FPL's facilities. Danger orhazard trees (leaning, structurally damaged, or diseased/dead that have a high likelihood to fail and impact FPL's facilities) located outside of right-of-way ("ROW'), which cannot be trimmed without approval from the property owner, are identified as candidates for customer-approved removal. Finally, a very important component of FPL's vegetation program is providing information to customers to educate them on the company's trimming program and practices, safety issues, and the importance of placing trees in the proper location - FPL's "Right Tree, 27 See Order No. PSC-06-0351-PAA-El 28 See Order No. PSC-07-0468-FOF-El 33 Docket No. 20200071-El FPL's 202O-2029 Storm Protection Plan Exhibit MJ-1 , Page 38 of 48 Right Place" initiative. Right Tree, Right Place is a public education program based on FPL's core belief that providing reliable electric service and sustaining the natural environment can go hand-in-hand and is a win-win partnership between the utility and its customers. The SPP will continue FPL's currently-approved distribution vegetation program, which includes the following system-wide vegetation management activities: three-year cycle for feeders; mid-cycle targeted trimming for certain feeders; six-year cycle for laterals; and continued education of customers through its Right Tree, Right Place initiative. b. Benefits of the Veqetation Manaqement Distribution Proeram ln Order No. PSC-07-0468-FOF-El, the Commission confirmed that FPL should continue to implement three-year and six-year average cycles for its feeders and laterals because the cycles complied with the Commission's storm preparedness objectives to increase the level of trimming over historical levels, promote system reliability and reduce storm restoration costs.2e Additionally, Commission's orders indicated that FPL's proposed cycles: were cost-effective; would improve dayto-day "tree SAlFl" from 0.22to 0.16 in ten years;3o and would provide savings when comparing savings on a customers interrupted ("Cl') per storm basis. Further, day-to-day distribution tree SAIFI has significantly improved as a result of FPL implementing its approved distribution vegetation management program (from 0.20 prior to the 2004-2005 storm seasons to 0.08 at year- end 2019). Finally, another indication that the current program is providing benefits is that, while forensic analysis indicated vegetation was the ovenruhelming primary cause for pole and wire failures and a significant cause of outages during Hurricanes Matthew and lrma, the vast majority of damage resulted from uprooted trees, broken trunks, and broken limbs 2e FPL's proposed three-year and six-year cycles were initially approved in Order No. PSC-06- O7B1-PAA-EI. 30 The tree-related SAIFI has averaged less than 0.09 over the last few years. 34 Docket No. 20200071-El FPL'9 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 39 of 4B thatfell into distribution facilities from outside of right-of-way, i.e., beyond where FPL is currently allowed trim without approvalfrom the property owner. 2. ActualiEstimated Start and Completion Dates FPL's ongoing vegetation management plan was originally approved in 2007, and remains in place today. Under the SPP, FPL plans to inspect and maintain, on average, approximately 15,200 miles annually, including approximately 11,400 miles for feeders (cycle and mid-cycle) and 3,800 miles for laterals. This is comparable to the approximately 15,200 miles inspected and maintained annually, on average, for 2017- 2019. 3. Cost Estimates The vast majority of vegetation management costs are associated with cycle and mid- cycle trimming, which is performed by several FPl-approved contractors throughout FPL's system. Other vegetation management costs include costs associated with day- to-day restoration activities (e.9., summer afternoon thunderstorms), removals, debris cleanup, and support (e.9., arborists, supervision, back office support). Costs associated with vegetation management are generally operating expenses. The table below provides a comparison of the 2017-2019 total actual distribution vegetation management costs with the 2020-2022 (first three years of the SPP) total estimated distribution vegetation management costs and the 2020-2029 total estimated distribution vegetation management costs:31 Annual Average illions P ram Costs millions Further details regarding the SPP estimated distribution vegetation management costs, 31 The vegetation management costs shown in the table below exclude storm-related vegetation management costs. P Total ram Gosts 2017-2019 $1 89 $63 2020-2022 $1 83 $ol $5e6 $602020-2029 35 Docket No. 2O200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 40 of 4B including estimated annual capitalexpenditures and operating expenses, are provided in Appendix C.32 4. Comparison of Costs and Benefils As provided in Section IV(GX3) above, during 2020-2029, totalcosts for FPL's Vegetation Management - Distribution Program average approximately $60 million per year. Benefits associated with the Vegetation Management - Distribution Program discussed in Sections ll and |V(GX1)(b) above, include increased storm resiliency. 5. Criteria Used to Select a d Prioritize the Prooram The primary reason for maintaining feeders on a three-year average cycle, as opposed to a six-year average cycle for laterals, is that a feeder outage can affect, on average, approximately 1,500 customers as compared to an outage on a lateral line that can affect, on average, approximately 35 customers. FPL enhances its approved feeder inspection and trimming plan through its mid-cycle trimming program, which encompasses patrolling and trimming feeders between planned maintenance cycles to address tree conditions that may cause an interruption prior to the next planned cycle trim. Mid-cycle work units typically have a trim age of 12to 18 months and usually involve certain fast-growing trees (e.9., palm trees) that need to be addressed before the next scheduled cycle trim date. Additionally, customers often contact FPL with requests to trim trees around distribution lines in their neighborhoods and near their homes. As a result of these discussions with customers and/or a follow-up investigation, FPL either performs the necessary trimming or determines that the requested trimming can be addressed more efficiently by completing it through the normal scheduled cycle trimming. Cycle trimming is prioritized annually to ensure compliance with cycle schedules. At this time, FPL has not identified any areas where the Vegetation Management - Distribution Program would not be feasible, reasonable or practical. 32 See footnote 14 36 Docket No. 20200071-El FPL's 2O2O-2O29 Storm Protection Plan Exhibit MJ-1 , Page 41 of 48 H. Vegetation Management - Transmission Program 1. Description of the Prosram and Benefits The Vegetation Management - Transmission Program included in the SPP is a continuation of FPL's existing transmission vegetation management program. Below is an overview of FPL's existing transmission vegetation management program and the associated benefits. a. Overview of the Veqetation Manaqement - Transmission Proqram The North American Electric Reliability Corporation's (NERC) vegetation management standards/requirements serve as the basis for FPL's transmission vegetation management program. The reliability objective of these standards/requirements is to prevent vegetation-related outages that could lead to cascading by utilizing effective vegetation maintenance while recognizing that certain outages such as those due to vandalism, human errors, and acts of nature are not preventable. Transmission lines that must conform with these standards/requirements include lines operated at or above 200 kV or any line that is either an element of the Interconnection Reliability Operating Limit (IROL) or the Western Electricity Coordinating Council (WECC). For FPL, just over 4,300 miles of its transmission system (or nearly two{hirds of all of FPL's total transmission system) are subject to NERC's vegetation management standards/requirements. NERC's vegetation management standards/requirements include annual inspection requirements, executing 100% of a utility's annual vegetation work plan, and to prevent any encroachment into established minimum vegetation clearance d istances (.MVCD"). The key elements of FPL's transmission vegetation management program are to inspect the transmission right-of-ways, document vegetation inspection results and findings, prescribe a work plan, and execute the work plan. FPL conducts ground inspections of all transmission corridors annually for work planning purposes. During these inspections, FPL identifies vegetation capable of approaching the defined Vegetation Action Threshold ("VAT'). VAT is a calculated distance from the 37 Docket No. 202OO071-El FPL's 2O20-2029 Storm Protection Plan Exhibit MJ-1 , Page 42 of 4B transmission line that factors in MVCD, conductor sag/sway potential, and a buffer. The identified vegetation is given a work prescription and then prioritized and organized into batches of work, which collectively become the annual work plan. For transmission lines that are subject to NERC's vegetation management standards/requirements, FPL also uses a technology called "L|DAR," short for light detection and ranging. L|DAR is a remote sensing technology that uses light in the form of a pulsed laser to measure ranges (distances) to a target. For vegetation management purposes, L|DAR is used to measure distance between vegetation and transmission lines. L|DAR patrols are conducted annually for all NERC transmission corridors. Data collected by the L|DAR patrols is then used to develop annual preventative and reactive work plans. ln its SPP, FPL will continue its current transmission vegetation management plan, which includes visual and aerial inspections of all transmission line corridors, LiDAR inspections of NERC transmission line corridors, developing and executing annual work plans to address identified vegetation conditions, and identifying and addressing priority and hazard tree conditions priorto and during storm season. b.Benefits of the Veoetation Man aoemcnf ransmtsston Proeram The benefits of a Vegetation Management - Transmission Program are self-evident and the consequences of not having a reasonable transmission vegetation management plan can be extreme. As discussed previously, the transmission system is the backbone of the electric grid. While outages associated with distribution facilities (e.9., a transformer, lateral, or feeder) can result in an outage affecting anywhere from a few customers up to several thousands of customers, a transmission related outage can affect tens of thousands of customers. Additionally, an outage on a transmission facility could cause cascading and result in the loss of service for hundreds of thousands of customers. As such, it is imperative that vegetation impacting transmission facilities be properly maintained using reasonable and appropriate cycles and standards to help ensure they are prepared for storms. For these reasons, it is no surprise that NERC has developed 38 Docket No. 20200071-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1 , Page 43 of 48 prescriptive vegetation management requirements for transmission facilities to help prevent such damage from occurring. FPL also notes that while vegetation-related damage and transmission line outages occurred during Hurricanes Matthew and lrma, the vast majority of such damages/outages were caused by vegetation located outside of the right-of-way, i.a., beyond where FPL is currently allowed to trim without approval from the property owner, which further demonstrates that FPL's historical efforts in this area have been beneficial. 2. Actual/Estimated Start and Completion Dates FPL's Vegetation Management - Transmission Program is an ongoing program, initiated decades ago. Under the SPP, FPL plans to inspect and maintain, on average, approximately 7,000 miles annually, including approximately 4,300 miles for NERC transmission line corridors and 2,7O0 miles for non-NERC transmission line corridors. This is comparable to the approximately 7,000 miles inspected and maintained annually, on average , for 2017-2019. 3. Cost Estimates The vast majority of vegetation management costs are associated with annual inspections and the execution of planned work to address identified conditions, which is performed by several FPL approved contractors throughout FPL's system. Other vegetation management costs include costs associated with day{o-day restoration activities (e.9., summer afternoon thunderstorms), removals, debris cleanup, and support (e.9., arborists, supervision, back office support). Costs associated with vegetation management are generally operating expenses. The table below provides a comparison of the 2017-2019 total actual transmission vegetation management costs with the 2020-2022 (first three years of the SPP) total estimated transmission vegetation management costs and the 2020-2029 totalestimated transmission vegetation management costs.33 33 The vegetation management costs shown in the table below exclude storm-related vegetation management costs. 39 2017-2019 $zz $g 2020-2022 $zz $g 2020-2029 $go $10 Docket No. 20200071-El FPL's 2O20-2029 Storm Protection Plan Exhibit MJ-1, Page 44 of 48 Total Annual Average ram Costs millions ram Costs millions Further details regarding the SPP estimated transmission vegetation management costs, including estimated annualcapitalexpenditures and operating expenses, are provided in Appendix C.3a 4. Comparison of Costs and Benefits As provided in Section lV(H)(3) above, during 2020-2029, totalcosts for FPL's Vegetation Management - Transmission Program average approximately $10 million per year. Benefits associated with the Vegetation Management - Transmission Program discussed in Sections ll and |V(HX1)(b) above, include increased storm resiliency. The execution of FPL's Vegetation Management - Transmission Program is a significant factor in mitigating damage to transmission facilities and avoiding transmission-related outages. 5. Criteria used to Select and Prioritize the Proqrams Priority vegetation conditions and hazard tree conditions are completed annually prior to storm season. Additionally, prior to and during the storm season, FPL conducts aerial inspections of transmission corridors to identify hazard trees and any priority vegetation locations. Priority vegetation conditions and hazard tree conditions identified through aerial inspections are addresbed as soon as possible. At this time, FPL has not identified any areas where the Vegetation Management - Transmission Program would not be feasible, reasonable or practical. 3a Seefootnote 14. 40 Docket No. 20200071-El FPL'9 202O-2029 Storm Protection Plan Exhibit MJ-1 , Page 45 of 4B V. Detailed lnformation on the First Three Years of the SPP 2020-2022 A. Detailed Description for the First Year of the SPP (20201 The following additional information required by Rule 25-6.030(3XeX1), F.A.C., for the first year of the SPP (2020) is provided in Appendix E. (1) the actual or estimated construction start and completion dates (2) a description of the affected existing facilities, including number and type(s) of customers served, historic service reliability performance during extreme weather conditions, and how this data was used to prioritize the storm protection projects; (3) a cost estimate including capital and operating expenses. A description of the criteria used to select and prioritize the storm protection programs is included in the description of each SPP program provided in Section lV. Detailed Description of the Second and Third Years of the sPP (2021-20221 Additional details required by Rule 25-6.030(3XeX2), F.A.C., for the second and third years of the SPP (2021-2022), including the estimated number and costs of projects under every program, is provided in in Appendix C. Detailed Description of the Vegetation Management Activities for the First Three Years of the SPP (2020-20221 The following additional information required by Rule 25-6.030(3X0, F.A.C., for the first three years of the vegetation management activities under the SPP (2020-2022) is provided in n Sections lV(G) and lV(H) above and Appendix C: the projected frequency (trim cycle); the projected miles of affected transmission and distribution overhead facilities; the estimated annual labor and equipment costs for both utility and contractor personnel. A description of how the vegetation management activities will reduce outage times'and restoration costs due to extreme weather conditions is provided in Sections lV(G) and lV(H) above. B c 41 Docket No. 202OO071-El F PL's 2O20-2029 Storm Protection Plan Exhibit MJ-'l , Page 46 of 48 Vl. Estimate of Annual Jurisdictional Revenue Reouirements for the 2020-2029 SPP Pursuant to Rule 25-6.030(3X0, F.A.C., the table below provides the estimated annual jurisdictional revenue requirements for each year of the SPP. Estimated Annual Revenue Requirements illions While FPL has provided estimated costs by program as of the time of this filing and associated total revenue requirements in its SPP, consistent with the requirements of Rule 25-6.030, F.A.C., subsequent projected and actual program costs submitted for cost recovery through the Storm Protection Plan Cost Recovery Clause (per Rule 25-6.031, F.A.C.,) could vary by as much as 10-15%, which would then also impact associated estimated revenue requirements and rate impacts. The projected costs, actual/ estimated costs, actuals costs, and true-up of actual costs to be included in FPL's Storm Protection 2020 $257.6 2021 $369.1 $494.32022 2023 $625.5 2024 $760.9 $878.12025 2026 $963.7 2027 $1,037.1 $1,110.92028 2029 $1 ,195.2 42 Docket No. 2O2OOO71-E\ FPL's 2O20-2029 Storm Protection Plan Exhibit MJ-1 , Page 47 of 48 Plan Cost Recovery Clause will all be addressed in subsequent filings in separate storm protection plan cost recovery clause dockets pursuant to Rule 25-6.031, F.A.C.35 Vll. Estimated Rate lmpacts for First Three Years of the SPP (2020-20221 FPL anticipates the programs included in the SPP will have zero bill impacts on customer bills during the first year of the SPP and only minimal bill increases for years two and three of the SPP. An estimate of hypothetical overall rate impacts for the first three years of the SPP (2020-2022), without regard for the fact that FPL remains under a general base rate freeze pursuant to a Commission-approved settlement agreement through December 31 ,2021, as stated in footnote 36 below are based on the total program costs reflected in this filing.36 The projected costs, actual/estimated costs, actuals costs, and true-up of actual costs to be included in FPL's Storm Protection Plan Cost Recovery Clause will all be addressed in subsequent filings in Storm Protection Plan Cost Recovery Clause dockets pursuant to Rule 25-6.031, F.A.C.37 Pursuant to Rule 25-6.031, F.A.C., FPL has not identified any reasonable implementation alternatives that could mitigate the resulting rate impact for each of the first three years of the SPP. As explained above, FPL's SPP is largely a continuation of existing Commission-approved storm hardening programs and initiatives, which have already demonstrated that they have and will continue to provide increased T&D infrastructure resiliency, reduced restoration time, and reduced restoration costs when FPL's system is impacted by severe weather events. Further, as explained above, the estimated costs 35 The Commission has opened Docket No. 20200092-El to address Storm Protection Plan Cost Recovery Clause petitions to be filed the third quarter of 2020. 36 Pursuant to Rule 25-6.030(3)(h), F.A.C., the hypothetical rate impacts for FPL's typical residential, commercial, and industrial customers for the first three years of the SPP (2020-2022) without regard for the fact that FPL remains under a general base rate 'freeze pursuant to a Commission-approved settlement agreement through December 31, 2021, are as follows for 2020, 2021, and 2022, respectively: Residential (RS-1) $0.00251/kwh, $0.00357/kWh, and $0.00478/kWh; Commercial (GSD-1) $0.81/kW, $1.15/kW, and $1.54/kW; and lndustrial (GSLDT-3) $0.05/kW, $0.08/kW and $0.10/kW. These rate impacts are for all programs included in the SPP and are based on the total estimated costs as of the time of this filing, which could vary by as much as 10% lo 15oh, regardless of whetherthose costs will be recovered in FPL's Storm Protection Plan Cost Recovery Clause or through base rates. 37 See footnote 34. 43 Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1, Page 48 of 4B for the programs included in FPL's SPP are consistent with the historical costs incurred for the existing storm hardening and storm preparedness programs, which were most recently approved in FPL's 2019-2021Storm Hardening Plan. Vlll. Gonclusion The Florida Legislature has determined that it is in the State's interest to "strengthen electric utility infrastructure to withstand extreme weather conditions by promoting the overhead hardening of distribution and transmission facilities, undergrounding of certain distribution lines, and vegetation management," and for each electric utility to "mitigate restoration costs and outage times to utility customers when developing transmission and distribution storm protection plans." Section 366.96(1), F.S. Based on these findings, the Florida Legislature concluddd that it is in the State's interest for each electric utility to develop and file a SPP for the overhead hardening and increased resilience of electric T&D facilities, undergrounding of electric distribution facilities, and vegetation management. See Sections 366.96(1)-(3). FPL's SPP is a systematic approach to achieve the legislative objectives of reducing restoration costs and outage times associated with extreme weather events and enhancing reliability. As explained above, FPL's SPP is largely a continuation and expansion of its existing and already successful storm hardening and storm preparedness programs previously approved by the Commission, as well as a new storm hardening program to harden certain targeted substations that are susceptible to storm surge or flooding during extreme weather events. Based on the recent experiences of Hurricanes Matthew and lrma, the existing storm hardening programs have a demonstrated and proven track record of mitigating and reducing restoration CMH, outage times, and storm restoration costs, as well as improving day-to-day reliability. FPL's SPP will continue and expand these imporlant benefits to customers and the State. 44 Docket No. 2020007'l -El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1, APPENDIX A (Page I of 1B) APPENDIXA (FPL's 3rd Supplemental Amended Response to Staffs lst Data Request) Docket No. 2020o071-El FPL's 202o-2o29 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 2 of 1B) Florida Power & Light Company Docket No. 20170215-EU Staffs First Data Request Request No. 29 - Third Supplemental Amended Page 1 of9 QUESTION: Please complete the table below summarizing hardened facilities that required repair or replacement as a result of Hurricanes Matthew, Hermine, Irma, Maria, and Nate. RESPONSE FPL does not maintain its accounting records at the level of detail required to provide the requested information as they do not differentiate hardened facilities from non-hardened facilities, nor do they track which assets were repaired. However, FPL does track certain assets, at the total system level, that were requested and replaced during each hurricane as reflected in the tables below. Note, FPL did not track storm repairs/replacements for Hurricanes Maria and Nate as Huricane Maria did not impact FPL's service territory and Nate had limited impact. Also, Hurricanes Matthew and Irma capital details associated with follow-up work are not yet available by plant account as these costs have not yet been unitized from account 106 to account l0l by plant account. Hurricane Matthew Number of Facilities Requiring Repair Replacement Transmission Structures N/A 0 Substations N/A 0 Total N/A 0 Distribution Poles N/A 656 Substation N/A 0 Feeder OH N/A 0 Feeder UG N/A 0 Feeder Combined N/A 0 Lateral OH N/A N/A Lateral UG N/A N/A Lateral Combined N/A N/A Total N/A N/A Service Service OH N/A N/A Service UG N/A N/A Service Combined N/A N/A Total N/A N/A Docket No. 20200071-El FPL's 2020-2O29 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 3 of 1B) Florida Power & Light Company Docket No. 20170215-EU Staffs First Data Request Request No. 29 - Third Supplemental Amended Page2 of9 Hurricane Hermine Number of Facilities Requiring Repair Replacement Transmission Structures N/A 0 Substations N/A 0 Total N/A 0 Distribution Poles N/A I9 Substation N/A 0 Feeder OH N/A 0 Feeder UG N/A 0 Feeder Combined N/A 0 Lateral OH N/A N/A LateralUG N/A N/A Lateral Combined N/A N/A Total N/A N/A Service Service OH N/A N/A Service UG N/A N/A Service Combined N/A N/A Total N/A N/A Docket No. 20200071-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1, APPENDIX A (Page 4 of 1B) Florida Power & Light Company Docket No. 20170215-EU Staffs First Data Request Request No. 29 - Third Supplemental Amended Page 3 of9 Hurricane Irma Number of Facilities Requiring Repair Replacement Transmission Structures N/A 0 Substations N/A 0 Total N/A 0 Distribution Poles N/A 3,562 Substation N/A 0 Feeder OH N/A 0 Feeder UG N/A 0 Feeder Combined N/A 0 Lateral OH N/A N/A Lateral UG N/A N/A l,ateral Combined N/A N/A Total N/A N/A Service Service OH N/A N/A Service UG N/A N/A Service Combined N/A N/A Total N/A N/A Notes: For Hurricane Matthew, there is a difference of 248 poles between what is provided in this discovery response for total poles replaced (656 poles) and what is provided in FPL's post-storm forensic review report for Huricane Matthew (provided in FPL's response to Staff s Second Data Request No. 2 in this same docket) for poles that failed and needed to be replaced to restore selice (408 poles). The difference is associated with poles replaced during "follow-up" - i.e., poles that were damaged (e.g., a cracked pole) as a result of the storm and needed to be replaced to restore the pole to its pre-storm condition - but did not fail during the storm and, thus, did not need to be replaced to restore service. As mentioned above in FPL's response to this data request, FPL's accounting records do not differentiate hardened facilities from non-hardened facilities and FPL did not track or maintain forensic information on the 248 distribution poles replaced as a result of follow-up work. As a result, FPL does not have a hardened vs. non- hardened breakdown for the 248 distribution poles replaced during follow-up work. Docket No. 2O200071-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1, APPENDIX A (Page 5 of 1B) Florida Power & Light Company Docket No. 20170215-EU Staffs X'irst Data Request Request No. 29 - Third Supplemental Amended Page 4 of 9 The distribution pole and transmission structure counts provided above represent the amount of pole/structure replacements FPL has recorded on its books and records associated with Hurricane Irma as of December 31,2017. These amounts should be consideredpreliminary atthis time as they are subject to change (e.g., the counts do not reflect poles that will be replaced during follow-up work, which has yet to be completed). N/A - Information is not available at this level of detail in FPL's accounting records. For substations and feeders, FPL has stated 0 since no entire substation or feeder was replaced. However, these facilities consist of many pieces of equipment (e.g., wire, cable, breakers, transformers, cross arms and arrestors) some of which may have been replaced. 2016 12017 Hurricanes - FPL Restoration/Infrastructu re Performance FPL's infrastructure/restoration performance for Huruicanes Matthew (2016) and Irma (2017) demonstrates that the implementation and execution of its FPSC-approved (l) ten storm preparedness initiatives (which includes vegetation management): (2) pole inspection programs; (3) storm hardening plans; and (4) tariffs to incent municipal overhead to underground conversions have provided great benefits to FPL's customers and to the State of Florida. During 2016 and 2017, FPL' s service territory was threatened with massive Category 4 and 5 storms. The size and scale of these storms impacted FPL's infrastructure throughout its entire service temitory (which encompasses 35 counties in the State of Florida). For both Matthew and Irma, FPL's infrastructure storm resiliency and smart grid investments resulted in improved infrastructure resiliency performance and reduced restoration times. 2016 12017 Hurricanes - Restoration Performance FPL saw significant improvements in overall restoration results. As can be seen in the table below, restoration results for Hurricanes Matthew and Irma show significant improvement vs. Humicane Wilma. FPL attributes these significant improvements in restoration to the investments made to make its system smarter and more storm-resilient as well as its well-tested restoration processes. This includes FPL's distribution and transmission storm hardening and storm preparedness initiatives, pole inspection programs, smart grid initiatives, vegetation management programs and continuous efforts to improve its restoration processes. 4.4MCustomer Outages 3.2M 1.2M % Restored / davs s0%/s s9%/2 so% l! All restored / davs 18 4 10 5.4 <1 2.1,Avg, to restore / days Docket No. 2020O071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 6 of 1B) Florida Power & Light Company Docket No.20170215-EU Staffs First Data Request Request No. 29 - Third Supplemental Amended Page 5 of9 2016 12017 Hu rricanes - Infrastructu re Performance To assess the effectiveness of FPL's infrastructure storm hardening investments, the Company utilizes information collected through post-storm forensic data collection and various systems (e.g., FPL's outage management system) to conduct post-storm infrastructure performance analysis. These efforts and analysis allow FPL to quantit/ and assess its distribution and transmission infrastructure performance including the performance of: hardened and non- hardened facilities; overhead and underground facilities; and smart grid performance. For distribution, this includes reviewing the storm performance of poles, feeders and laterals. For transmission, this includes reviewing the storm performance of poles/structures, line sections and substations. The data demonstrates that hardened infrastructure performed better than non- hardened infrastructure, underground facilities performed better than overhead facilities and smart grid devices prevented a significant number of outages from occurring. DistributionlTransmission Poles/ Structures Performance The performance of FPL's approximately 1.2 million distribution and transmission poles/structures during Hurricanes Matthew and Irma was excellent, as hardened poles and structures performed as expected by minimizing outages and reducing restoration times. The total number of distribution/transmission poles that failed (i.e., had to be repaired/replaced in order to restore service) during Hurricanes Matthew and Irma was a mere fraction of lYo of the 1.2 million pole/structure pole population. Additionally, hardened distribution and transmission pole performance was significantly better than non-hardened pole performance, as hardened pole failures were either non-existent (e.g., Hurricane Matthew) or significantly less than non-hardened pole failures (e.g., during Hurricane Irma, hardened feeder poles had a 0.02o/o failure rate, while non-hardened feeder poles had a 0.20% failure rate). Also, total poles replaced (i.e., poles that failed * poles that were replaced during follow-up work) were also a mere fraction of lYo of the total pole population and significantly less than the number of poles replaced during Hunicane Wilma. FPL notes that for Hunicanes Matthew and Irma, while it did track hardened vs. non-hardened pole performance during restoration, it did not track poles replaced (hardened vs. non-hardened) during follow-up work, since these poles had accomplished their intended purpose of not failing during the storms. Therefore, FPL cannot provide the number of hardened poles replaced during follow up work in Hurricanes Matthew and Irma. Based on the performance of hardened poles that failed during these storms (see table below), it is highly unlikely that there would be a significant number of hardened poles, if any, that needed to be replaced during follow-up work. However, going forward, should the Commission want FPL to track replacement of hardened vs. non-hardened poles during follow-up work, FPL will begin to track this information. FPL attributes this excellent pole performance to its FPSC-approved distribution and transmission storm hardening plan initiatives (e.g., extreme wind load construction standards for distribution poles and replacing wood transmission poles/structures) and its pole inspection programs. Docket No. 202OO071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 7 of 1B) Florida Power & Light Company Docket No. 20170215-EU Staffs First Data Request Request No. 29 - Third Supplemental Amended Page 6 of 9 Distribution Poles l2l3 1/1 7 TotalNumber 1,188,202 TotalHardened 124j18* * This number is understated as it includes only poles hardened as a result of FPL's approved hardening plan projects, as FPL does not track or maintain the number of hardened poles installed as a result of new construction (e.g., new feeders or laterals) andlor daily work activities (e.g., maintenance, pole line extensions, relocation projects). There are also other existing poles throughout FPL's service teritory that would currently meet the NESC's extreme wind loading criteria and therefore qualify as a hardened pole, however, FPL does not currently track or maintain that information. Distribution Pole Failures*Hardened Non- Hardened Total Matthew - 2016 0 408 408 ltma - 2017 26 2834 2860 *Broken/Fallen poles that must be repaired/replaced to restore service Transmission Pole/Structures 12l3 1/l 7 Total 66,685 Concrete 60,694 (91%) Wood 5,991 (9Yo) Transmlssion Pole Failures*Hardened Non- Hardened Total Matthew - 2016 0 0 0 lrma - 2Ot7 0 5 5 *Broken/Fallen poles that must be repaired/replaced to restore service Distribution Feeders/Laterals Performance As demonstrated below, FPL's hardened feeders performed significantly better than non- hardened feeders and underground feeders/laterals performed significantly better than overhead feeders/laterals. Performance was compared considering feeder and lateral outages that occurred during Hurricanes Matthew and Irma. It is also important to note that during Hurricane Irma, the Construction Man Hours ("CMH") to restore hardened feeders was 50% less than non-hardened feeders, primarily due to hardened feeders experiencing less damage than non-hardened feeders. It is important to note that the majority of outages for overhead facilities resulted from trees that broke andlor fell into FPL's facilities. Many of these trees were outside of easements or public rights of way where FPL is generally allowed to trim. As a result, no additional amount of Docket No. 2O2O0071-E\ FPL's 2O20-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page B of 18) Florida Power & Light Company Docket No. 20170215-EU Staffs First Data Request Request No. 29 - Third Supplemental Amended Page 7 of 9 traditional tree trimming would help mitigate this issue. Tree damage was particularly impactful on FPL laterals. The two tables below provide feeder and lateral outage performance statistics for Hurricanes Matthew and Irma. Pop: Population; Latelal population includes laterals with rlulti-stage fusing Pop - Population; Latelal population includes laterals with multistage fusing FPL notes that, overall, for Hurricane Irma, many more laterals experienced outages compared to feeders, thus laterals required significantly more time to restore (871,000 CMH) compared to feeders (170,000 CMH). FPL continues to promote its Right Tree Right Place initiative and recommends there be changes to state laws andlor local ordinances to restrict the type and location of trees and provide utilities additional trimming rights to address existing tree conditions.l Additionally, FPL notes that day-to-day, hardened feeders perform approximately 40Yo better than non-hardened feeders. Transmission Line Sections/Substations Performance The transmission system's performance was excellent during Hurricanes Matthew and lrma. Equipment and conductor damage was minimal as a result of our investments in transmission hardening and the installation of flood monitoring equipment in those substations located in flood prone areas. Substations that experienced outages were restored in one day. During Hurricanes Matthew and Irma, flood monitoring equipment operated as expected, providing notification which allowed FPL to proactively de-energize three substations (one in Matthew and two in Irma) and prevent potential serious damage from occurring at these substations. I Where mLrnicipalities are not actively engaged in ensuling appropriate limitations on planting trees in public rights of way, restoration efforts are impeded and made more costly. In fact,_one particular municipality is actively planting "wrong trees in the wrong place," in spite of FPL's direct communications and efforts to encourage its Right Tree Right Place initiative. Matthew Overhead non-Hardened Overhead Hardened Undersround Total Out Pop o/o Out Out Pop o/o Out Out Pop % Out Out Pop YoOut Distribution Feeders 280 2,031 t4%68 t2t 9%II 493 359 3,245 73o/o Distribution Laterals 3,473 82,729 4%N.A.N.A.N.A.238 101,892 0.2%3,71.1.t84,621 2% rRMA- 2017 Overhead Non-Hardened Overhead Hardened Undereround Total Out Pop % Out Out Pop % Out Out Pop % Out Out Pop % Out Distribution Feeders 1,609 1,958 82%592 859 69%85 470 TB%2,286 3,287 70% Distribution Laterals 20,34!84,574 24%N.A.N.A N-A.3,161 103,384 4%24,r08 187,9s8 t3% Docket No. 2O20OO71-E\ FPL'9 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page I of 18) Florida Power & Light Company Docket No. 20170215-EU Staffs First Data Request Request No. 29 - Third Supplemental Amended Page 8 of 9 The tables below provide substation line section outage perfonnance for Hurricanes Matthew and Irma. * 2 sections were out because substation was proactively de-energized due to flooding ** 4 sections were out because substations were proactively de-energized due to flooding *** No underground section was damaged or failed causing an outage; however, the sections were out due to line termination equipment in substations. The table below compares substation outage and restoration performance - Irma vs, Wilma. Smart Grid Performance During Hurricane Matthew and Irma, smart grid devices prevented a significant amount of customer outages, assisted with restoration efforts and reduced restoration time and costs. Specifically, automated feeder switches avoided approximately 664,000 outages during Hurricanes Matthew and Irma. Additionally, FPL's restoration crews are able to "ping" Smart meters before leaving an area to ensure that power is, in fact, restored. This prevents restoration crews from leaving an area, thinking all power was restored, only to be called back when the customer informs FPL that they are still without service. FPL is also enhancing an application, first utilized during Hunicanes Maffhew and Irma, whereby it will be able to "bulk meter ping" smart meters to confirm whether customers have service. Trans. Line Sections 1,6 350 5%23*846 3o/o 0 49 o%39 L,245 3% i :1v1,:1;i;.,,1.11 i\'i)il,l rr'al J;t::r t ,r, .1 I11 1ri I,Ii.|:,r,.i ,.Ir I I:i('l ,tlI I ll1 l llrt .r,irl:lii .\ I ,l.i:l:, i'rr',r ili;l i :;iiJr i I :,t(j:{i;l l: .ri]t:ii1l1: l.ii I :ir:r i:Jri,il,' !1, t:-iri '.:1. al!rrf,'il,jL i 25%2!5 7247 t7%Trans. Line Sections 60 306 20%742**884 16%13***51 : " -lt ,t'ir l: :'4, (,iLj ', ttt ll;.': lri, I'l\1, ;ri .l i.ttJ,.lrt jir: j( I i.rr),:. I i al!f irl l l,,rJ Jii:'i,;I l, I I iir:[: !i .,li:Lrllt !i] ii'1.q1,.,1,,i :iii i. illlll ( l!/ lt'r!i1;i: 111.1;:.q1r1'qt, ti a.l il :i De-energized 24t 92 Restored (Davs)5 7 Matthew - 2016 118,000 lrma - 2Ot7 546,000 .irr i-lilc;irL"rr 'tfl!iiair'ri. Ii:,]il :;::!:r,,lflr .rJ,r/i ir(lrl.r'l r(r)L tii;l:r,r. ,,,.! rti J fi i.l,.l Docket No. 20200071-El FPL's 2020-2O29 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 10 of 18) Florida Power & Light Company Docket No. 2017021S-EU Staffs First Data Request Request No. 29 - Third Supplemental Amended Page 9 of 9 Estimate of Storm Restoration Cost Savings Due to Hardening based on Storm Damaqe Model Simulation The attached analysis provides an estimate of transmission and distribution storm restoration savings for Hurricanes Matthew and Irma that resulted from storm hardening completed by FPL prior to the storms' impacts. To calculate these savings, FPL utilized its Storm Damage Model (the same model FPL utilizes to estimate damage when a storm approaches FPL's service territory) to simulate damage that likely would have occurred without hardening and determine the associated required construction man hours (CMH) that would have been required to restore service in the absence of hardening, days to restore in the absence of hardening and associated incremental restoration costs. Additionally, FPL calculated the 4O-year net present value of these savings for two scenarios - (1) a similar storm occurs every 3 years; and (2) a similar storm occurs every 5 years. As indicated on the attached analysis, the 4O-year net present values of the savings related to storm hardening are significant. In the absence of hardening the estimated percentage increase in CMHs for Hurricane Matthew and Hurricane Irma restoration would have been significantly higher (36% and 4002, respectively), days to restore would have been increased (50Yo and 40%o, respectively) and restoration costs would have been greater (360/o and 40o/o, respectively). Florida Power & Light CompanV Docket No. 2O1702L5-EU Staff's First Data Request Request No. 29 - Third Supplemental Amended Attachment No. 1 TablofS Docket No. 20200071-El FPL's 2020-2029 Storm Protection PIan Exhibit MJ-1 , APPENDIX A (Page 1 1 of 18) Estimate of Storm Restoration Cost Savings Due to Hardenine based on Storm Damaee Model Simulation I1l I2l I3l Construction Man-Hours l4l lsl t61 l7l to Restore t8l lel [10] [111 Storm Restoration Costs It2 |[ 131 40 Yr NPV [14] Storm lrma 7o lncrease without Hardening s0% 40% Additional Days to Restore without Hardening 2 4 Modeled System Without Hardening 6 'J,4 Actual 4 10 Notes: All costs and CMH are Transmission and Distribution only, and exclusive of follow-up work [ 1 I Calculated based on actual storm restoration requirements [ 2 I FPL storm damage model simulation results of CMH incurred without hardening [ 3 I Additional CMH without hardening (Col. 2 - Col. 1) [ 4 I Percent increase in CMH without hardening (Col.3/Col.1) [ 5 ] Actual days to restore service [ 6 ] Storm damage model simu lation resu lt of the days to restore service without h ardeni ng (assu mes same restoration resources as actual) [ 7 ] Additional days to restore without hardening (Col. 6 - Col. 5) [ 8 J Percent increase in days to restore without hardening (Col.7/Col. 5) [ 9 I Actual cost of restoration.-]llllgS$_elCjlglilqllily [ 10 I Storm damage model simulation result of restoration costs without hardening [ 11 I Additional restoration costs without hardening (Col. 10 - Col.9) [ 12 I Percent increase in restoration costs without hardening ((Col. ].1/Col.9) [ 13 I 40 year net present value savings assuming a similar storm everylblgg years (calculation details attached) [ 14 I 40 year net present value savings assuming a similar storm everyfive years (calculation details attached) % lncrease without Hardening 36% 40% Additional CMH without Hardening 93.000 483,000 Modeled System Without Hardening 350.000 1.678.000 Actual 257.000 1.195.000 % lncrease without Hardening 36% 40%s496 510s Additional Storm Restoration Costs without Hardenins s7.722 Modeled System Without Hardening S39s s7.226 Actual s290 s1.915 s4o6 40 Yr NPV Savings Every 5 Years (2017s) s653 Savings Every 40 Yr NPV 3 Years (2077sl s3,082 Docket No. 20200071-El F PL's 202O-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 12 of 18) Florida Power & Light Company Docket No. 20170215-EU Staff's First Data Request Request No. 29 - Third Supplemental Amended Attachment No, 1 Tab2of5 Estimated Storm Restoration Costs Savings due to Hardening (SMM) 40-Year NPV (2017$) Matthew Savings Everv 3 vears Everv 5 vears S6s3 S40G Discount Rate = 7.760/o $o So $r $1 1 2 3 4 5 6 7 8 9 L0 IT t2 13 1.4 15 L6 17 18 19 20 2L 22 23 24 25 26 27 s10s So So Slos $o So So $o S1r-8 So So So So S133 $o 5o So So $i.so 5o So So So S169 so $o So So $1so So cPr 2.r% 2.4% 2.4% 2.6% 2.7% 1.7% 2.5% 2.4% 23% 2.2o/o 2.2% 2.2% 2.2% 2.2% 2.2% 2.t% 2.L% 2.t% 2.1% 2.1% 2.1% 2.1% 2.1% 2.t% 2.I% 2.1% 2.L% 13 $o $o cPt Multiplier 1.000 1.024 1.049 1.076 1.105 1.124 1.152 1.179 1.206 1.233 1.260 1.288 1.317 1.346 1.375 1.404 1.434 1.464 1.495 1.526 1.558 1.590 1.623 1.656 1.691 1,727 1.763 Matthew slos S1o7 S1r-o Si-13 S11s Sr.18 S121 5124 5rzi Si.3o Si_33 S136 $13s s143 $i-46 Slso $1s3 S1s7 S16i- S16s $16s Si.73 $r77 Srsr $18s $lso $rga S12r. so $o $130 $o $o sL3s slso $o So $rer $o so 73 so So Slss So So Matthew Savings Everv 3 vears Everv 5 vearsYear Docket No. 20200071-El FPL's 2020-2O29 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 13 of 1B) 28 29 30 31 32 33 34 35 36 37 38 39 40 sLes so So $zt+ So $o S23o $o 5o s246 $o So So 5zt4 So So So So $24r $o So $o So 2.to/o 2.2% 2.2% 2.1% 2.2% 2.to/o 2.1% 2.1% 2.I% 2.I% 2.7o/o 2.1% 2.1% 1.801 1.840 1.880 1.920 1.962 2.004 2.047 2.090 2.135 2.180 2.226 2.274 2.322 Sles $204 $2oe 5214 S21e 5224 s230 $23s 5241 5246 52s2 s2s8 s26s So So s26s NPV (2017$) I s6s3 s406 Docket No. 2O2OO071-E\ FPL'' 2020-2029 Storm Protection PIan Exhibit MJ-1, APPENDIX A (Page 14 of 18) Florida Power & Light Company Docket No. 20170215-EU Staff's First Data Request Request No. 29 - Third Supplemental Amended Attachment No. 1 Tab3of5 Estimated Storm Restoration Costs Savings due to Hardening (SMM) 40-Year NPV (2017S) lrma Savings Everv 3 vears Everv 5 vears s3,082 S1,915 Discount Rate =7.76% cPl cPt Multiplier 1.000 1.024 1.049 1.076 1.105 1.124 1.1s2 1.179 1.206 1.233 1.260 1.288 1.317 1.346 1.375 1.404 1.434 1.464 1.495 1.526 1.558 1.590 1.623 1.656 1.69'l 1.727 1.763 lrma $4e6 SsoT Ss20 Ss32 Ss+s sss8 Sszr Ssss $see $6i.3 s628 s543 $6ss $674 s6s1 Stol 5724 5742 STss 5778 S7s6 $s1s $s3s Ssss s876 s8s7 Ssi-8 $o So So Ss76 $o So L 2 3 4 5 6 7 8 9 10 11 t2 13 t4 15 16 ll 18 L9 20 21. 22 23 24 25 26 21 S4e6 So $o ss32 So So $szr $o $o $613 $o So S6ss So $o 5t07 So $o STss so $o $s1s $496 $o so so So Sss8 So 21% 2.4% 2A% 2.6% 2.7% Lt% 2.5% 2.4% 23% 2.2% 2.2% 2.2% 2.2% 2.2% 2.2% 2.L% 2.r% 2.I% 2.t% 2.1% 2.1% 2.1% 2.L% 2.r% 21% 2.1% 2.1% so $o s628 So So $o so 5t07 $o so so So S7e6 $o So So so S8e7 $o Year Matthew Savings Everv 3 vears Everv 5 vears Docket No. 202OOO71-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-'l , APPENDTX A (Page 15 of 18) 28 29 30 31 32 33 34 35 36 37 38 39 40 Ss4o So So S1,oo9 So So S1,084 $o So 5L,164 So So s1,250 $o So so S1,oo9 so $o So $o S1,136 So $o So So 2.L% 2.2% 2.2% 2.L% 2.2% 2.La/o 2.I% 2.7% 2.1% 2.1% 2.t% 2.1% 2.1% 1.801 1.840 1.880 1.920 1.962 2.004 2.047 2.090 2.135 2.180 2.226 2.274 2.322 Se40 $s63 Ss86 Sr,oog Si_,034 S1,058 $1,084 S1,110 s1,135 St,16+ 5L,rgz SL,zzo s1,250 NPV (2017s)S1,915s3,082 Docket No. 20200071-El FPL'' 2020-2029 Storm Protection Plan Exhibit MJ- 1 , APPENDIX A (Page 16 of I B) Florida Power & Light Company Docket No. 201-702L5-EU Staff's First Data Request Request No. 29 - Third Supplemental Amended Attachment No. 1 Tab4of5 FPL WEIGHTED AVER.AGE COST OF CAPITAL STATE INCOME TAX FEDERAL INCOME T 5.50% 21.OOoA COMPOSITE INCOME TAX RAT 25.35O/O MODEL DATE:1-Jan-1 8 Debt Gost Based on Blue Chip Corporate Aaa and Bbb Bonds AFTERTAX PRETAX SOURCE /UEIGHT(1) coST(2)/TD COST /TD COST /TD COST DEBT COMMON 40.40% 59.60% 4.88o/o 10.55% 1.97% 6.29% 1.47o/o 6.29% 1.97% 8.42% TOTAL 100.00%8.260 7.760 10.39% AFTER-TAX WACC 7,76% Docket No. 20200O71-El FPL'9 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX A (Page 17 of 1B) Florida Power & Light Company Docket No. 20170215-EU Staff's First Data Request Request No. 29 - Third Supplemental Amended Attachment No. 1 Tab5of5 Consumer Prices (1982-84=1.000) All-Urban (Forecast adjusted to match budget assumptions) lndex % Change 2009 2.1454 2010 2.1.806 L.64% 2A1J 2.2494 3.16% 2012 2.2959 2.O7% 20L3 2.3296 I.46% 2014 2.3614 1..62% 2015 2.3702 0.I2% 201.6 2.4001. r.26% 2017 2.4512 2.13% 2018 20L9 2020 202L 2022 2023 2024 2025 2026 2027 2028 2029 2030 203L 2032 2033 2034 2035 2036 2037 2038 2039 2040 204L 2042 2043 2044 2045 2046 2.5100 2.5703 2.6371 2.7083 2.7553 2.8231 2.8909 2.9569 3.0228 3.0895 3.1573 3.2270 3.298L 3.3693 3.441t 3.5142 3.5887 3.6642 3.7408 3.8187 3.8972 3.9779 4.0603 4.L449 4.2324 4.3226 4.4153 4.5104 4.6077 2.40% 2.40% 2.60% 2.to% 1.73% 2.46% 2.40% 2.28% 2.23% 2.21% 2.19% 2.21% 2.20% 2.16% 2.I3% 2.12% 2.I2% 2.10% 2.09% 2.O8% 2.06% 2.07% 2.O7% 2.08% 2.tt% 2.13% 2.1.5% 2.15% 2.16% Budget Assumptions 2.40% 2.40% 2.60% 2.70% Docket No. 20200071-El FPL's 202A-2o29 Storm Protection Plan Exhibit MJ-1, APPENDIX A (Page 18 of 18) 2047 2048 4.7A67 4.8099 2 2 $% t9Yo 2049 20s0 2051 2452 2053 2054 2055 2056 2457 4.9L22 5.0L67 5.1233 5.2323 5.343s 5,4572 5.5732 5.6917 5.8128 2.t3% 2.L3% 2.L3% 2.L3% 2.t3% 2.t3% 2.13% 2.t3% 2.13% Actuals thru 2017 from BLS APPENDIX (FPL's Management l i: :2t : i4 taI I I -t1t- 1 A.xrl 'j' iL AI d IEr'. Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1, APPENDIX C (Page 1 of 2) APPENDIXC (FPL'I 2020-2029 Estimated SPP Costs) 2O2O-2O29 FPL 'PP Program Costs/Activities Docket No. 2O20O071-E\ F PL's 2020-2029 Storm Protection Plan Exhibit MJ-1, APPENDIX C (Page 2 of 2) Distribution - Pole lnsoections Operating Expenses Capital Expenditures Total # of Pole lnspections Transmission - lnsoections operating Expenses Capital Expenditures Total # of Structure lnsPections Distribution - Feeder Hardenins (1) (21 Operating Expenses Capital Expenditures Total # of Feeder (3) Distribution Lateral Hardeninp (1) (2) Operating Expenses Capital Expenditures Total # of Laterals (3) Transmission - ReplacinF Wood Structures OpeEting Expenses Capital Expenditures Total # of structures to be Replaced Distribution - Veqetation Manaqement Labor - Contractor Labor - FPL Equipment - Contractor Equipment - FPL Total # of Miles Maintained Transmission - Vegetation Management Labor - Contractor Labor - FPL Equipment - Contractor Equipment - FPL Total # of Miles Maintained Substation Storm surse/Flood Mitiqation Operating Expenses Capital Expenditures Total # of Substations 3.8 54.1 3.8 55.3 55.3 3.9 56.4 3.9 57 -8 62.3 39.1 556.1 3.9 56.5 s 5 5.6 50.7 ss3.8 s s4.1 s s s9.0 154,000 68.s 68,000 in millio 59.1 L54,000 55.6 68,000 s 66.s 154,000 505,2 s s s 60.3 s 61.8 s 63.3 s 154,000 154,000 154,000 4.0 s 4.1 s s9.3 s 60.8 s 64.9 s s4.5 s s7.9 s s7.9 150,000 150,000 154,000 5 32.2 S 28.9 68,000 68,000 60.5 154,000 1.3 34.5 1.0 s 31.2 s 1..0 27.9 1.0 67.5 1.0 54.6 1.0 s3.3 1.0 s s4.6 s 5 t-.0 52.0 s 1.0 s 1.0 s s6.o s s7.4 s s4.3 s ss.7 s s7.0 s s8.4 s 68,000 68,000 58,000 68,000 u7.2 653.4 s 67e.9 s 696.e s 800-900 800-900800-900 800-900 499.5 50.0 s 3,20s.8 s s34.3 5,101.4 s 510.r" 10.5 489.0 1.0 48.9 s 35.8 68,000 53.0 68,000 s 623.1 5 664.9 S 654.9 S s73.3 S 474.s S 200.0 5 s s s s 3,20s.8s 534.3 s S s10.1 5 628.1 S 564.9 S 554.9 S s73.3 5 474.s 5 200.0 S 300-350 300-350 300-350 300-350 250-350 !20.4 212.5 342.8 s 47s.6 637.4 63L.4 647.2 663-4 679.9 696.9 s L20.4 220-230 212.5 5 342.8 300-3s0 400-500 $ 47s.5 500-700 631.4 800-900 631,.4 800-900 0.2 s s2.1 5 0.2 42.7 0.2 21,-9 s s 60.6 s s9.s s 0.6 117.3 0.2 39.1 s s 5 s s s s s s ss 43.8 1.5 11.0 0.1 s s ) s s s s s s s s s s s 52.9 s 42.9 1,400-r-600 900-1,100 72.7 II7.9 39.3 46.4 tf-b 300-600 5 s s s s 5 s s 3.0 3.0 1 s s 47.7 1.3 L1.9 0.1 46.9 1.4 L]'.7 0.1 44.6 1.5 1]..2 0.L 57.4 15,200 463.7 L4.7 115.9 L.4 47.8 7.4 L2-O 0.1 s ) s s s s s s s 5 5 46-9 1.5 tL.7 0.1 50.2s 60.2s 60.6 L5,200 15,200 15,200 8.9 s s.0 s 7,000 7,ooo 47.1 46.3 45.5 11.8 17.4 47.r 1.5 1"L.8 0.1 7.2 0.5 0.1 l-.6 5 s 5 s 1.5 LL.6 0.1 s s s 1.5 0.1 1.5 0.1 0.5 1.8 0.1 9.6 b1.a 15,200 75,200 61.3 15,200 15,200 0.r. 7,2 9.9 7,OOO 58.5 15,200 lo.2 7,O00 56.4 15,200 59s.7 s 59.6 5 s s s 5 s 7.6s 5 s 5 s s s s s 5 5 s s ) 6.7 I 0.5 5 L.7 s 6.5 0.5 L.7 0.r. 6.7 s 0.s $ r.7 5 0.1 5 0.6 1.8 0.1 7.4 0.6 1.8 0.1 0.6 1.9 0.1 7.9 u.b 2.0 o.2 77.7 5 5.3 s 17.9 s 1.4 s 5.7 0.5 L] 0.r- 7,000 8.e s 7,000 9.0 9.7 s 9.7 7,000 7,000 7.8 0.6 L.9 0.10.1 10.4 s 10.7 s 7,OOO 7,000 96.4 s s s 5s s 5 s 5 s s s 10.0 23.0 23.O 7.7 7.710.0 2 5 s64.7 S 1,090.7 S 1,x9s.8 S 1,24s.6 S1,290.9 S1,014.9 S 832.7 S 8s1.0 $ 859.7 S 889.0 S10,24s.0 S L,27L.L 10.0 10.0 to7 s 5 Total SPP Costs {1) Project level detail for 2020 in Appendix (2) Costs include previous year(s) projects carried over to current year's project costs and future year's preliminary project costs (e.9., engineering) (3) f offeeders or lateral to be initiated in the current year Total SPP Costs An nu al Average CostFPL SPP Programs 20292024202320222021,2020 2024 2025 2026 2027 Docket No. 20200071-El FPL's 2O20-2029 Storm Protection PIan Exhibit MJ-1, APPENDIX D (Page 1 of 14) APPENDIXI) (FPL's Hardening Design Guidelines) Dockei No. 20200071-El FPL's 2O2O-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX D (Page 2 ol 14) @FPL Distribution Design Guidelines The following guidelines will be used to standardize the design of FPL's overhead distribution facilities when practical, feasible, and cost effective. General FPL has made a change to adopt Extreme Wnd loading (EWL) as the design criteria for: (1) new pole line construction, (2) pole line extensions, (3) pole line relocations, (4) feeder pole replacements on multi-circuit pole lines, and (5) feeder pole replacements on Top-ClF feeders. Reference the Pole Sizing section (pg. 7) for the guidelines to determine the necessary pole class and type for all work. Refer to the Distribution Engineering Reference Manual Addendum for calculating pole sizes for specific framing under extreme wind loading conditions. 2. For maintenance, existing non-top-ClF pole lines may be evaluated using NESC combined ice and wind loading with Grade B construction. This represents the loading prior to the adoption of extreme wind loading. lf the pole must be replaced, refer to the Pole Sizing section for the minimum class pole to be installed. Refer to the Distribution Engineering Reference Manual (DERM) Section 4 for calculating pole sizes for specific framing under the NESC combined ice and wind loading conditions. 3. Every attempt should be made to place new or replacement poles in private easements or as close to the front edge of property (right of way line) as practical. 4. Overhead pole lines should be placed in front lot lines or accessible locations where feasible. 5. When replacing poles, the new pole should be set as close as possible to the existing pole to avoid the creation of a new pole location. 6. Poles are not to be placed in medians. 7. Concrete poles are not to be placed in inaccessible locations or locations that could potentially become inaccessible. 8. Please reference the minimum setting depth charts located in DCS D-3.0.0 which shows the increased setting depths for concrete poles. 9. Every efforl should be made not to install poles in sidewalks. lf a pole must be placed in a sidewalk, a minimum unobstructed sidewalk width of 32" must be maintained to comply with the American Disabilities Act (ADA) requirements. 10. lf concrete poles are required by the governing agency as a requirement of the permit, and if the work is being done solely for FPL purposes (feeder tie, etc.), then the concrete Docket No. 2O200O71-EI El,i';,,'ffi 3;i KJ,'. fi 'Jf f lFtT fl?i,, poles are installed with no differential charges. lf the concrete poles are required as a condition of the permit, and the work is being done at the request of a customer (and fall outside the Pole Sizing Guidelines) to provide service to the customer or relocation by request of the customer, then the customer is charged a differential cost for the concrete poles. 1 1. \Nhen installing new OH secondary spans, multiplexed cable should be used instead of open wire secondary. When reconductoring or relocating existing pole lines containing open wire secondary, replace the open wire with multiplexed cable whenever possible. The system neutral should not be removed when replacing open wire secondary with multiplexed cable if primary wire is present. lt is necessary to maintain a separate system neutral for operational continuity of the system. '12. When designing overhead facilities where secondary and service crossings exist across major roadways, the engineer should take into consideration placing these secondary street crossings underground. Operations Director Approval is required. 13. Whenever extending a feeder, reconductoring a feeder section, or attaching a device to a feeder, always reference the nearest existing disconnect switch number on the construction drawing and show the dimension to the switch. This will aid the Control Centers in updating their switching system and will aid AMG in updating AMS, as well as provide the Productioh Lead and Distribution Tech information needed for switching and RC Off requests. 14. When an overhead feeder crosses any obstacle to access (i.e. - water bodies such as rivers, canals, swamps; limited access RA// such as interstate highways, turnpikes, and expressways; etc.) disconnect switches should be placed on both sides of the obstacle in order to isolate the crossing in the event of a wiredown situation. See the example in the Crossing Multi-Lane Limited Access Highways section (pg. 5). 15. Projects that affect or extend feeder conductors should always be coordinated with Distribution Planning to ensure optimization of the distribution grid. Taking into account future feeder plans such as, feeder boundary changes, sectionalizing devices, integration of automation and remotely controlled protection. As always, good engineering judgment, safety, reliability, and cost effectiveness should be considered. ln addition to these guidelines, all distribution facilities shall be engineered to meet the minimum requirements set forth in all applicable standards and codes including but not limited to the National Electrical Safety Code (NESC), Utility Accommodation Guide, and FPL Distribution Construction Standards. Please contact a Distribution Construction Services (DCS) analyst with any questions. @ Docket No. 2020O071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX D (Page 4 of 14) FPL New Construction When installing a new feeder, lateral, or service pole, reference the Pole Sizing section for the guidelines to determine the necessary pole class and type to meet Extreme Wind Loading (EWL) for the wind zone region (105, 130, or 145 MPH). 2. Modified Vertical is the preferred framing for accessible locations. Post-top (single phase) or Cross Arm (multi-phase) is the prefened framing for inaccessible locations. 3. During the design of new pole lines in developed areas, field visits should be conducted to ensure the design would cause minimum impact to the existing property owners. 4. Overhead pole lines should not be built on both sides of a roadway unless agreed to by the customer nor should multi-circuit pole lines be created. When designing main feeder routes all viable options must be reviewed (including alternative routes) and consideration should be given to constructing the line underground. lf undergrounding is chosen and it is nglthe leait cost option, approval is required from the Engineering & Technical Services Director and the Operations Director. ln addition, prior to proceeding with any pole lines on both sides of a street or any multi-circuit feeder design recommendations, Operations Director approval is required. 5. When there is an existing pole line in the rear easement, every effotl should be made not to build a second pole line along the right of way. 6. When installing a pole line within a transmission line, accessible distribution poles should be concrete. Distribution concrete poles should not be installed in inaccessible locations. lf concrete distribution poles are installed in a concrete transmission line, there is no additional charge to the customer (the concrete poles are FPL's choice and not requested by the customer). Coordination between the transmission and distribution design is critical and consideration should be given to a design with alltransmission poles versus distribution intermediate poles. This approach will reduce the overall number of poles. When transmission is overbuilding (concrete structures), along an existing distribution corridor, if the distribution wood poles are in good condition, do not replace, lf wood poles need to be changed out or relocated, replace with concrete poles to match the transmission pole type. Coordination between the transmission and distribution design is critical and consideration should be given to a design with alltransmission poles versus distribution intermediate poles. This approach will reduce the overall number of poles. 1 7 8 @ Docket No. 20200071-El F PL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX D (Page 5 of 14) FPL Existing / Maintenance 1. When installing andior replacing a feeder, lateral, or service pole on an existing pole line, reference the Pole Sizing section for the guidelines to determine the necessary pole class and type. 2. When installing or replacing a feeder pole on a feeder that serves a Top-ClF customer, ensure the new pole will meet extreme wind loading (versus just a minimum class 2 or lllH pole) so that it will not have to be replaced when the feeder is hardened as a hardening project. Please reference the Storm Secure Hardening SharePoint Site: Distribution > Central Maintenance > Central Contractor Services > Hardening > Reports > Feeder Prioritization_xxxxxx Snapshot for the list of Top-ClF feeders within the Prioritization File. 3. When extending pole lines, the existing pole type should be used as a guide for the new pole type. lf concrete poles are requested by the customer or are required as a condition of the permit and fall outside the Pole Sizing Guidelines, the customer will pay a differential charge for the concrete poles. 4. When replacing pole(s) and anchor(s) with larger self-supporting concrete poles, caution should be used, as the property owners in the vicinity of the pole will not necessarily perceive this concrete pole as a better choice. 5. When replacing poles on a multi-circuit feeder the replacement pole should be designed for Extreme Wnd Loading using Pole Foreman to calculate the wind loading. Relocations 1. When relocating a pole line, reference the Pole Sizing section for the guidelines to determine the necessary pole class and type to meet Extreme Wind Loading (EWL) for the wind zone region (105, 130, or 145 MPH). 2. When relocating either a concrete or wood pole line for a highway improvement project, the existing pole line 'type' should be used as a guide for the pole type replacements. There is no additional charge for concrete poles if the existing poles being relocated are concrete (like for like relocation). lf the customer requests an "upgrade" to concrete poles, a differential is charged. 3. Reimbursable relocations will equal the cost to relocate the line built to Extreme Wind Loading (plus removal of old), including indirect cost. 4. Agency relocation projects should be coordinated with Distribution Planning to ensure optimization of the distribution grid and to take into account future feeder plans and potential feeder boundary changes. @ Docket No. 20200071-El FPL's 2O20-2029 Storm Protection Plan Exhibit MJ-'|, APPENDIX D (Page 6 of '14) FPL Crossing Multi-Lane Limited Access Highways The following guidelines are to be used when an overhead feeder crosses any obstacle to access (i.e. -limited access RAIV such as interstate highways, turnpikes, and expressways, etc.). Similar consideration can be given to water bodies such as rivers, canals, swamps. 1. Underground installation is the preferred design for all new crossings (1,2,3 phase) of multi- lane limited access highways & hardening of existing crossings; reference Fig 1. Limited Access Highway Crossing Schematic (Preferred). lf underground construction is not feasible, reference Fig 2. Limited Access Highway Crossing Schematic (Altemate). 2. Underground crossing for 1 & 2 phases should be designed for potentialthree phase feeder size cable. Ensure riser poles meet or exceed extreme wind design for the designated region. For further information, please contact the CMC Hardening Group. 3. For accessible overhead crossings, use concrete poles (lll-H or greater square concrete pole) for the crossing poles and minimum Class 2 wood poles for the intermediate poles. For inaccessible overhead crossings, minimum Class 2 wood poles should be used for the crossing and intermediate poles. All poles installed should meet or exceed EWL for the designated region. 4. Every attempt should be made to install storm guys & back guys for the highway crossing poles. Storm guys are not required on the adjacent poles. 5. Frame the highway crossing pole double dead-end (See LOC 2 & 3 Fig 2 below). 6. lnstall disconnect switches on adjacent poles on both sides of the crossing (or as required by field conditions) to isolate the feeder section for restoration. Switches are to be installed in accessible locations that can be reached with readily available aerial equipment. Switches should be installed at -42 Above Grade (AG), with a maximum pole size of 50' wood or 55' concrete. lf there is no load between the nearest existing switch and the crossing, an additionalswitch is not required. 7. Check for uplift on all poles. Refer to DERM Section 4.2.3Page 4 of 16 & DCS E-4.0.2 and E-4.0.3. Back guys should be installed at the adjacent pole if required for uplift. 8. Ensure to maintain proper clearance above or under all highways as dictated by the owner of the RAru& DCS 8-3.0.1. Any conductors crossing the highway that have splices should be replaced with a continuous conductor (NESC 261H2a). See Fig 2 below for additional notes on the use of splices on adjacent spans. One additional set of dead-end insulators at the highway crossing pole may be used if this eliminates the need for splices when installing a new pole. o @ Docket No. 2O2O0071-El FPL'9 2O2O-2O29 Storm Protection Plan Exhibit MJ-1 , APPENDIX D (Page 7 ot 14) F]'L 10. Engineers must conduct a pre-design meeting with the Production Lead to ensure the feasibility of the proposed design. 11. As always, use good engineering judgment to produce a quality, cost-effective design Fig 1. Limited Access Highway Crossing Schematic (Preferred) Fig 2. Limited Access Ilighway Crossing Schematic (Alternate) INSTALL ACCESSIBLE DISCONNECT SwlTCHES REMOVE OH &INSTALL ACGESSIBLE DISCONNECTSwlTCHES 3 #568T-23KV &3/0T-N llF _ FNc -llF E o a a o--5IotaaU oUF =j e--a DOWNGUYFOR DEADEND OUTSIOE OF LIMITED ACCESSHIGHWAY. ADJUST LOCATION OF POLE FOR FIELOCONOITIONS ALTERNATE LOCATION FOR RISERPOLE TO PREVENT DOWN GUYIN L|MNED ACCESS R/W Dtsc sw @ -,t2'AG MAX POLE SIZEI 50' wooD, 55'coNcRETE INSTALL ACCESSIBLE DISCONNECTSWITCHES NO SPLICES INSTALL ACCESSIBLE DISCONNECT SWTCHES 3 #568T-23KV & 568T-N CHECK FOR UPLIFT E INSTALL DOWN GUYS IF f f f TREQUIRED a ---J e--F BI(9ro0Uo oUt J H----,*-, e----tlt\j-\ INSTALLSTORM GUYS A BACX a MAX Drsc sw @ -,f2' A6 MAX POLE SIZE: 50'wooD, 55'coNcRETE (swTcE LocAnoN MAY VARY EASED ON FIELD CONDIT'ONS. REFERENCE D'SIFIEUT'ONDES'GA' GUIDEL'NES) L I ! INSTALL IiITERMEDIATE POLE IN EFFORTTO REDUCE SPANS @ Docket No. 2020O071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX D (Page 8 of 14) FPL Pole Sizing 1. FPL has made a change to adopt Extreme \Mnd loading (EWL) as the design criteria for: (1) new pole line construction, (2) pole line extensions, (3) pole line relocations, (4) feeder pole replacements on multi-circuit pole lines, and (4) feeder pole replacements on Top-ClF feeders. Reference the Pole Sizing Guidelines (at the end of this section) to determine the necessary pole class and tYPe. 2. When installing or replacing a feeder pole on a feeder that serves a Top-ClF customer, ensure the new pole will meet the extreme wind design (versus just a minimum class 2 or tllH pole) so that it will not have to be replaced when the feeder is hardened as a hardening project. Please reference the Storm Secure SharePoint Site: Distribution > Central Maintenance > Gentral Contractor Services > Hardening > Reports > Feeder Prioritization_xxxxxx Snapshot forthe list of Top-ClF feeders within the Prioritization File. 3. For maintenance, existing non-top-ClF pole lines may be evaluated using NESC combined ice and wind loading with Grade B construction. This represents the loading prior to the adoption of extreme wind loading. lf the pole must be replaced, refer to the Pole Sizing Guidelines for the minimum class pole to be installed. 4. When performing work on an existing pole, and the pole requires change out (e.9., clearance height, location, condition, or the ability to support the planned activity), use the Pole Selection Guidelines. lf the planned work can be done without changing out the pole and the pole meets minimum NESC grade B wind loading guidelines, use the existing pole(s). S. Foreign pole owners are required to discuss design requirements with FPL prior to construction. FPL will assist with identifying the targeted poles. 6. Efforts should be made to ensure that span distances do not exceed 250 ft. for wood poles and 350 ft. for concrete poles even if longer spans would meet the Extreme Wind Loading requirements. 7. Concrete poles are prefened in the cases where replacement costs would be extremely high (i.e' duct system risir pole, corner poles with multiple circuits, critical poles, etc.). No differential is charged for poles in this case. @ Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPFNDIX D (Page 9 of 14) FPL Lateral Pole Policv 1. Allexisting poles must meet NESC grade "B" as an absolute minimum. 2. lf a pole is modified in any way, it must meet NESC grade "B" at a minimum when completed. 3. lf you become aware of a pole which does not meet NESC "8" or DCS standards, the pole must be immediately upgraded or modified to meet the NESC & DCS standards. 4. All replacement lateral poles must meet NESC'EWL" and be compliant with FPL Pole Policies. 5. Restoration of lateral poles should comply with the class 2/3 table. For oractical purposes this means... 1. Engineer all poles to the NESC EWL standards and to meet FPL policies. 2. Run Pole Foreman on alldesigned WR's and poles suspected of being substandard. 3. lf you are completing substantial work on a pole, such as installing additional cables, upgrading a TX, re-conductor or new framing: The pole must meet EWL and the revised class standards. 4. lf you are completing minor like for like work such as replacing a fuse switch, insulator or other small equipment: The pole must meet NESC grade "8" and DCS standards at a minimum when the work is complete. a. Note: Most FPL poles currently exceed NESC grade "8". This means there is some leeway for minor changes in wind loading and clearances while maintaining the NESC grade "B" minimum. 5. Temporary or time constrained poles may be installed to NESC grade "N" temporary construction. This is relatively complicated, requires sound engineering judgment and should be avoided. lf grade NESC grade 'N" is applied, a replacement pole engineered to NESC EWL must be designed and installed as soon as practical and not longer than 6 months after NESC grade "N" was installed. 6. Class 4 poles may only be installed for SVC, SEC, SL, OL's. Once the available stock of class 4 is used up no more will be ordered and FPL will install class 3 poles for these applications. 7. ln no case should class 4 poles be installed in laterals. Gontact Enoineerino Standards for situations that still are in ouestion after careful consideration Docket No. 202O0071-El FPL's 2O20-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX D (Page 10 of 14) @FPL Gritical Pole Definitions & Sizing: The following list comprises what will be considered critical poles. When installing and/or when doing work that othenruise requires the replacement of an accessible critical pole, use concrete. lf the pole is inaccessible, use a minimum Class 2 wood pole, or consider relocating the equipment to an accessible concrete pole. For all critical poles run Pole Foreman to calculate the wind loading for the specified pole and attachments combination. Additional information can be found in DERM Section 4 - Addendum for Extreme Wind Loading tables 4.2.2-8,4.2.2-9, or 4,2'2'10. Every attempt shoutd be made to install storm guys where feasible and practical, Frame inline per standard to equally distribute weight. Refer to the Crossing Multi-Lane Limited Access Highways section for details. Contact CMC Hardening Group before designing new multi-circuit line. 5) To eliminate field dritting, inventory Special Drill Pole & create Pole Boring Detailfor all Ill-H Poles on Hardening Jobs. 1) 2) 3) 4\ Gritical Pole ldentifier For new or when replaced use minimum lll-H Square Concrete Poles (minimum Class 2 if inaccessible) Gritical Poles l"tswitch outof substation or duct system riser pole DCS Reference UH-15.0.0 Fig 2 uH-15.3.1 CriticalPoles Automated Feeder Switches (AFS)2 c-9.2.0 ce lnterstate Grossin gsl'3 E-10.0.0 Fig 2 Aerial Auto Transformers2 t-9.0.0 Poles with multiple primary risers uH-15.2.0 3 phase transformer banks 3 - 100 kVA and largef l-52.0.2 Multi-circuit polesa Three-phase rectosers2 (or Th ree single-phase reclosers) Frame as existing c-8.0.0 Capacitor Banks2 Regulators J-2.0.2 & J-2.0.3 t-10.1.1 PrimaryMeter K-28.0.0 lntelliruptors c-9.5.0 All references are to the Distribution Construction Standards Docket No. 2O200071-El FPL'g 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX D (Page 11 o'f 14) @FPL Pole Sizing Guidelines: The following tables should be used as guidelines to help determine pole class and type, when installing and/or replacing a feeder, lateral or service pole. Feeder or Three Phase Lateral: When designing for EWL run Pole Foreman to calculate the wind loading for the specified pole and attachments combination. Additional information can be found in D$RM Section 4 - Addendum for Extreme Wind Loading tables 4.2.2-8,4.2.2-9, or 4.2.2-10. Si le or Two Phase Lateral: Nofes. 1) To be used when replacing equipment or instatting new equipment on an existing pole.t) Reference Criticat Pole L'tst on pg.8. tJ Use of ttl-G poles should be timited to existing concrete lateral pole lines whose wire s2e is less than or equal to 1/0A.a) tJse Pole Foreman to calculate wind toading on all poles. Pole Line Description New Gonstruction, Line Extension, & Pole Line Relocation Existing lnfrastructurel lnstalling or Replacing a Critical Polez Wood Use minimum Class 2 Wood Pole to meet EWL Use Class 2 Wood Poles Use lll-H (Accessible) or Class 2 Wood (lnaccessible) Concrete Use minimum lll-H Concrete Pole to meet EWL Use lll-H Concrete Poles Use lll-H Concrete Poles Pole Line Description New Construction, Line Extension, Pole Line Relocation, Pole Replacement, & lntermediate Poles Existing lnfrastructurel lnstalling or Replacing a Criticat Polez 105/135 mph: Use minimum Class 3 MUSImeet EWL 105/135 mph: Use minimum Class 3 Wood 145 mph: Use minimum Class 2 MUSImeet EWL 145 mph: Use minimum Class 2 Use lll-H (Accessible) or Class 2 Wood (lnaccessible) Concrete Use minimum lll-G3 or lll-H poles Use lll-G" or lll-H poles to match existinq line Use lll-H Concrete Poles Docket No. 202OO071-EI FPL's 2O20-2029 Storm Protection Plan Exhibit MJ-1, APPENDIX D (Page 12 o'f 14) Basic Span Lengths for selected poles for Extreme Wind Loading: Facility Phase(s)Wire size Pole size Recommended Maximum Span Lengtha (FPL with 2 aftachments - FPL ONLY) ,I05 MPH 130 MPH 145 MPH Feeder 3#568ACAR Class 2 1 80', - 230'125'- 200'90'- 140' 3#3/0AAAC Class 2 180'- 250'170'-250'120'-220', Lateral 3PH 3#1/0AAAC Class 2 1 80' - 250'1 80' - 250'155'- 250' 2PH 2#1t0 AAAC Class 3 1 80' - 250'1 80' - 250',125' - 250', 1PH 1#1/0AAAC Class 3 1 80' - 250'1 80' - 250'1 50', - 250' nThe lower number equates to the maximum span for FPL primary and two 1" foreign attachments. The higher number equates to the recommended maximum span for FPL primary only. Reference the DERM Addendum for EWL tables 4.2.2-8, 4.2.2-9,4.2.2-10 when adding additionalattachment{s} or equipment. As always, good engineering judgment, safety, reliability, and cost effectiveness should be considered. Service / Secondary / St. Light / Outdoor Light Poles: When installing or replacing a service or street light poles, a minimum of Class 3 wood pole should be used. Specific calculations may require a higher class pole for large quadruplex wire. For any questions on pole sizing to meet EWL or running Pole Foreman to calculate wind loading, please contact the CMC Hardening Group. Docket No. 20200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-'l, APPENDIX D (Page 13 of 14) @trFL islf{ffi 1os MPH- jtso tr,tpx ffir4sMPH Extreme Wind Loading (EWL) 3 Zone Map Wind Zone County 105 Alachua 105 Baker 105 Bradford 130 Brevard 145 Broward 130 Charlotte 130 Clay 145 Collier 105 Columbia 145 Miami-Dade 130 De Soto 130 Duval 130 Flaqler 130 Glades 130 Hardee 130 Hendrv 130 Hiohlands 145 lndian River 130 Lee 130 Manalee 145 Martin 145 Monroe 130 Nassau 130 Okeechobee 130 Osceola 130 Oranqe 145 Palm Beach 130 Putnam 130 Sarasota 130 Seminole 130 St Johns 145 St Lucie 105 Suwannee 105 Union 130 Volusia Docket No. 2O200O71-E\ FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1, APPENDIX D (Page 14 of 14) Notification of FPL Facilities Form 360, Notification of FPL Facilities, is to be used for allconetruetion projects. Please include a copy of this form in negotiations with builders and developers. This form can be found on the DCS Webeite under "Letters and Agreements", or in WMS on the "Reports" menu item for the work request. Docket No. 20200071-El FPL's 202O-2029 Storm Protection Plan Exhibit MJ-1, APPENDIX E (Page 1 of 16) APPENDIXE (FPL's 2020 Project Level Detail) Docket No. 202O0071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1, APPENDIX E (Page 2 ol 16) Appendix E: FPL 2020 Project Level Detail Feeder Hardening (EWL) - Distribution Program X 330 3.109 I $12,476 244 1.523: S 508.1 80 ,oc!1 7802631 lJul-22 180 1461!S3.384.362 161 iDec-20 lAuo-23 1.080 86 X 50355? ;Jiln-14 ,Jan-21 3.267 6S9 X 34 2 1.S4S I S 39.220 I Mav-14503569 iDeG20 3030!s4.1S6.273 811361 lJuL14 lJun-21 1235:S16S4888 X 283 X 275 2.858 I S 394.865 lJul-19403239 lMav-22 3.278 : $ 3.213.746 ;05763 lJan-18 1Ao.-22 3340; S 12.SS5 X lDee20 iMar-23 'I 211 X i.hin-2o ,OcL21 1 645 103 1.403 I $100 0763754 0062 IOcL14 IDee2l 249S: $ 2.301.662 X lJun-1S706362 tMei22 1.624 I 376 I S 5867 X 483 X 2 062 72 2.134 i $20,791 '1.686 | $130.922 lAua-19700831 tJul22 1.526 I S 677.282 lJuLl I700833 tAud-22 1730,52247.506 X lAua-14 tOeG21 967 1,080 I $941,114 6621$2.215 X :Nov-221833lDeD20 65 X 52 '1.423 I S 1.448.431 c'1838 lAuo-14 lNoF21 1.335 : S 707.033 810434 lNov-15 ,Jtrl-22 1.2S4 : $16.748 {00734 lJul1g lJul-22 X 1.038 23 21331$814 6S4 X 81 x 1S5 14 907:$140,568 404232 lseo-19 lSer21 1.481 I $6S3.3t55S2 104240 :Oct-14 tMaF2l 1.1 83 1{73i$970.255 X i02{68 iAuo-18,Auo-2'l 2.148 X 354 13 939 | $ 1.73'1.492 500235 lFeb-lS iNov-21 1 1.364 I $618.1 56 X lAuo-16308632 ;Jul-2'1 1106:$8.S91 X 1.885 172 X 70a432 ,Jan-22 1.292 71 X 5 1.513 : $4.785 765:$238.586 21 2963 i $ 4170618 X 50406d lSe&18 lMav-21 4.706 5.232 I $198,S12 357S: S 2520 X 466 15 1A'7 409764 lNoF18 ,Mav-22 2.620 i S 10.482 I Nov-18)263 lJun-21 1362i$55.010 X lDeG2006s62 ,Ano-22 1 193: S 1.11S_1S3 X iFebl S263 :Jul-21 2.053 91 X :Nou18 anec.21 1 053 312 3 215 78 5 't.975 I $1 1.365 lma / Matthew Outaqe 2020 Project cost Docket No. 20200071-El FPL's 2O2O-2O29 Storm Protection Plan Exhibit MJ-1 , APPENDIX E (Page 3 of '16) {05467 lNoF16 Jun-2'l 100434 lNos16 162 1 1.217 209 3 1 1.17e $ 201.'121 301139 lAuo-18 508061 lSeo-18 2.113 X 861 507465 lSeG15 Jun-21 t-21 28 3.451 X Aud-21 1.847 I 20'1932 lJun-18 SeG2l 127 1,7 47 t C1935 iSeclg Seo-22 1 .185 41 11 3.641 :61.811 707661 lDec-'17 l\,,lav-21 68S Mar-23 825 318 1.173 8.072 X 1.224 702131 lFebl7 Mev-21 1S1 1 192 55.289 X 264 1.56605433:Jun-16 Jun-21 65 X lJul-1s305439 DeG21 't64 l X 607 3 740 X 'Jun-19 ,07 512 i01532 lDeGl7 Mau-22 At6-22 3.301 l +00234 lSeo-17 {00240 lOcL15 r-21 373 I X /03531 lNos18 '1.535 2SS 2 I 1.S55 $ 38.462 X Jul-21 s 616 102131 iOcL16 Mat-21 256 157 2 106S33 !Mer-lS 2 s75 $ 167.485 Jun-21 2.921 127 338.01Sr221.S43 l X to4262 lDeo20 132 lNos18 ,Aau-22 1.636 125 '1.765 X 133S1 109837 iJun-19 o32 lJun-20 eo-21 1.386 161 {1 1032 I Nos18 Jul2l 137 209 646 2132,61.783 X 1,822 I Estirnated / Aclual Stan Datelll lrma / Outaqe Docket No. 20200071-El FPL's 202O-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX E (Page 4 of 16) 3 1.'180 122 1.112 ,46.876 500761 iDec-20 NoF22 1.160 25S 500768 lDec-20 Ma.-23 2.008 6 1 942 86 2 2.030 l 1727 I 453 522 X 808064 lJul-18 ec-21 8S9 219 07251 lMrr-18 lrn-21 2 124 s8 2.222 s 11.627 75 1.670 i 21.261 102132 :Jul-20 102131 :NoFl5 't 75 t06861 lSeG20 3eo-22 2.120 '103 1 2.n17 X 113 2 494 s 433 006 X X 1.606 345 1 Aua-21 175 5 2.261 3 916 $ 10.s08 X 't 35 IMav-'l5 X 501138 lOcll I i-21 151 219 X 1.815 3 886 s 85.463 X Sep-20 108363 lDeolg SeD-22 $ 1.354.416101 540 iFeb-1S SeG21 '|.876 204 2.080 2 $ 881.789 14837 lJun-'16 1.456 X 2 446 s 1 537.758 X sR 60 107561 lMav-{4 191 407563 lMav-'19 Aor-22 2.221 227 2 85 1.902 s 835.298 X 806031 lMar-1 5 7S 1.15S s 1.720.558 X lAuo-1 I404131 $ 11 365 lAuo-1 g807332 Jun-21 88 X Jul-22 390 2,1 2 516 47 2.685 s 1 1.S44 2 279 6 812$X )8762 lOc!'14 X t04534 lDec-20 !ou22 1 .8S7 65 \ov-22 64 1 813 l'1032 lDee20 751.376$rn-23 3.1 33 X 70s162 lAuo-19 $ 3.3f3.S44 X911 708s33 lNoF16 Mau-21 218 1 X lJsn-17700931 Atro-2z 1.489 1 .813 231A 72 4 3.122 X 317 s 83.S43 203637 lDec20 818 X 100331 lJul-1S 671 261- *--"7;{ lDeG'19100333 SeD-22 686 136 3 lrma / Matrhew Outage 2020 Project cost Docket No. 202O0071-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1, APPENDIX E (Page 5 of 16) lNos18'02935 ,Jul-22 1.608 107 I ,Auo-18702S3S t Aor2l 2.257 2 224 2 ,No*19208161 lSer22 208164 lSeo-20 :Auo-23 2 ASI 2S6 511 , S 277.250 x :Od-14 ,A,or-21 1.162 X 1.670 I $ 1.744.401 x too232 lDec-20 lNos22 607 43 700235 IDec20 tAvo-22 1S1 1.468 I S 1.522 X 1,{5 2.255 I S 5.237 12 2.572 t $064.048 lNoF'18500437 tFeb-22 1.44 262 :Auo-16701261 tJun-21 1.6S0 121 507063 lDe&20 tMat.23 2.673 : $ 30.911 X lAor.1 5 :Now20202034 1.216 213 2 tJan-17 lDec-2 1804633 lNow22804636lDec20 779 25S X 1.460 | S 304.521 38A!$21 245 1.777 ) S 2.139.286lNoF'18102638 1J[n-22 1.005: $208.58S lAuo-18804335 ,Jen-22 1.688 121 2 1.811 : $827.797 X {06861 ' i,,lav-1 8 tAor-21 06864 !Mav-l 8 aJun-23 X 40S534 lAuo-16 lAuo-21 2.8't3 | $113.052 509s61 'NoF20 tJun-23 1.151 352 21 lJun-16805136 lJul22 429 '|2.546 I $ 2.05S.638 X 40J931 lSeGl4 lMar-21 Cornmercial Customers hma I Matthew OutageDatelll StadReqion Docket No. 20200071-El FPL's 2O20-2029 Storm Protection Plan Exhibit MJ-1, APPENDIX E (Page 6 of 16) X iNou20800631lMetri 5 '1.8S4 174 lNoE22506666lDe..20 1.236 12 '1.535 I 172 5 722 237.938 107662 lDec'17 ,Jul-22 X 2.875 11 ,10a262 lFebl g :Mav-21t-05\1 .352 101 3 2.035 i 300S62 lJul-18 ,Ao.-21 367.112 102232 lJun-2l ;Nov-21 350 454 X 102235 lJan-18 tJun-2l 1.S35 163 5 3.77 5 1 X 882.3433.700 ':odl9702231 I Aua-22 702233 ;Jun-'lg alen-22 24 2 1.t1S 351 2 507 I 21.891 102531 lJul-l8 lAuo-21 X 102534 lSec20 :Seo-22 52 702731 lNov-1 8 lMau-22 1.1s8 21 1 1 483 1.603 I 702740 lNov-20 lNov-22 ff 31.8'17 :203931 lJun-20 lAuo-23 t00531 : Seo-19 :Seo-22 515 126 641 921 532 7 1.463 3.505 ]11831 :Dec-20 I Nov-22 1.311 l 4.765 107237 lAuo-19 :Jun-2'1 117 898 :Jul-1 g lMat-22 506164 I NoF18 iNov-2'l L865 -_ ?11 587 X 1 636 265 t.s04 962.314 :De.-20 :NoE22 1.583 12.010 X 808165 !oct-14 lJun-21 33035 :Mav-1 8 :Jun-23 1 .611 187 1.802 2j55!858.646 1 1.810 1 2.168$X l[,,lav-19 'Se]21 '1'1 0 871.31 0 lOcllg202231 ISeo-22 1.610 I ( 201432 ,Seo-1 8 lJul-21 420 96 I 1 't 68 377.162$ s 744.611 t8333 : Nrar-1 5 1 Mav-21 i04061 :Now13 !Seo-20 2.111 5S7 2.344 04067 : Ocl-1 S 1 Auo-22 1 333 290 1 1.621 185 1.373 5 2.314 X s 287 800 X i0123S :SeG'18 iAuo-21 L'6Kffi--1 252 x 't.641 111 3 1.258 3 149 2.977 lNoF14706663 IAot-21 119 1.461 - -.,_9 2 lrma / Matthew Outage Cornmercial Customers Current Estimated Completion Docket No. 20200071-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-'1, APPENDIX E (Page 7 of 16) IOAKES !2280 S LJS#rsl X :OAKLAND PARK :NE38St&5Browad $ 908.283 $ 1.554.186700461 lJul-1g lJan-22 317 15 !1S301 NE 281hDadeIOJUS lMar-'15 , Auo-22804932 80s 4 860 X 11741 :NoF1g lJtrl-22 ,OLYI\/PIA HEIGHTS t9750 SW36rh rlade !508 53d Ave WesIONECO 30 X t01231 lNoF15 tJen-21 1.768 260 2 2.030 $ 126.504 t01234 lDeo20 llrar-23 113 1 486 13885 Counlv Road 16-Nodh IORANGEDALE 13885 Counlv Road 16-Nodh IORANGEDALE 507362 lNoF16 lAor-21 3.271 3 X '625 24lh Ave NIORANGETREE 1228 N O(North IORMOND 101132 lJun-20 iNov-21 167 914 1228 N O(Nodh toRtvtoND 101 1 35 lJan-18 :Aor-21 IPAHOKEE 1660 s stale MerkeEast 2AO 8 383 2.911$X f00433 :Nov-l8 lDeG21 1.680 {48 4 1.A32 x 100435 lNoFl s lSeG22 I 062 2.863 'PALM AIRE X 201635 lDeG21lSeo-18 2.338 117 2.153 4S 3 214 X 16625 W 22nd 1lade ' PALIUETTO lNoF1818861 lJan-23 X 505361 iJun-18 lJun-21 2.S91 291 1 3.28S IDeG15 iNou20 179 110307 uS HtrlPARRISH 3.01 1 201134 lSerl8 aSeo-2'1 '1.166 61 1.235 X l1 123 N Tamiami TiI PAYNE iDeG20;o2a32 : Nov-22 1 243 lPAYNE X 702137 ,Ocl-15 lAuo-22 1.846 125 1.S73 81 1 946$X AO1237 ,Od-17 tMer22 Erowaro iPEHRY ldu99 PemDroke tnffiifr- IiFFFV-Tii66ffifriiiir 2.311 503031 lNov-20 lNoE22 1.810 239 2.O51 i2050 Fie!IPHILLIPPI X 70033'1 iJun-l8 EJul-22 1.S13 44 4 1 961 s 2 490 242 Broward IPINEHURST thn-)1700334lOcL14 ?a6 X 109962 lNoF17 lADt-21 1.600 260 3 1 863 i4900 W Broward BlvBrowardIPLANTATION 701633 lMav-18 ,Jtrl-22 404631 lDeG20 iMar-23 I $13.03{X : llar-1 5701233 ,Jun-21 2 360 260 ,PLAYLAND 14750 SW42nlroward lpt A7a 408963 1DeG17 llun-22 2.113 715 1 3.1 5S s 3.428 843 :POLO 1240'l Lakewood Ranc X :PORT ORANGE I3000 Soruce CreekNodh 100836 loct2o tAun-22 1.068 242 2 1.312 $14.806 X IPORT SEWALL :4250 SE Feder€East I lrav-1 I101932 lMev-22 1 015 1S1 2 1 204 s 1 641 235 IPORT SEWALL :4250 SE Federal H,East 104S34 lDec20 lNos22 X lrma / l1.1afthew Outage 2020 ProjectRegion Docket No. 20200071-El FPL's 202O-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX E (Page B of 16) 305231 lAua-18 Se12'1 1.118 12.216 X 55532 lNoE18 Mev-22 1.83S 268 993 X 502 5 2.924 t 324 1S31: 70S261 lNo$18 rn-21 741 X 501531 :NoF18 1.22'7 1 553 155 7 1.715 1.368 l 806835 lDec-20 Ivlatr23 56S.582 X 106533 lSeo-18 Jun-21 1 913 3 1.946 1.611 t 20.673 705867 lDec20 9.251 703431 1NoF18 1.680 X 207935 :Aun-1 I ot-21 655 125 780 211 1.510 I Feb-1 I407035 1.501.774 X 800537 :Jul-18 X : oct-1 I701432 \uo-22 2.180 170 2.O20 517 5 1.S60 1 5,86S t06331 lJul-16 al.231 X t06335 lAuo-16 X \ov-20 214 38 1.399 : 2.160 a 154.111 '038 iOcLl 5 Nov-20 2701 I s.332 108168 lDeG20 2,36€ X 505261 lDeG20 Auo-23 X 1.809 329 4 1.890 l 1 124 91.949$ lJun-'1 I701011 3.621.151 oct-21 1.009 219 X NoE22 2.094 Seo-22 137 2 1.809 500132 lJun-18 796.723 3 1 237 $ 64 1.787 204133 'J6n-18 tul-21 1.596 s I 471 637 X )an-22 67 1 68 t07 464 lNov-18 2.290 ]03631 lOct-1 4 $ 3.404.1092 460 t761 lFeUlg X 108534 :Aon15 Jtrn-21 X 4 69 1.006 116 1 1.123 371 3.521 X :SeG15t06063 2 $10.750 iOcLl g708561 52 iJun-1 680s936 rl22 1.711 141 X Jun-2f 115 3 *.*2ij9. 3 495 823 100 1 924 1 414 1.483 X Project lrma / Matthew Outage Docket No. 2O2O0071-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX E (Page I of 16) 5031 34 lDec-'15 tn-21 1.501 2AO 5 1786JS 225.370 X 503136 ! Nov-16 ow2l 1.032 1 1.213 | $s75.722 11001 Bav SiSORRENTO 2 2.241 , $10,f 11 :100'l BavSORRENTO Nodh 129 7 1.31'1 I S 1.186.710 X 102437 :NoF18 ul22 1.062 202 8 1.272 t $398.387 503434 :DeG20 un-23 1 724 302 2028: $14 60S x :9781 SWPr.SOUTHFORK 30s1 : $a2 249 1 X 705564 'DeG20 ov-22 1.895 2 2.060 ! $16 263 !8801 NW44rhSPRINGTREE X 15831 Aimod RSPRUCE X 107732 ,Jan-18 lec-21 L5A7 257 1 1 A45 , 5 1.261 241 107735 :Jun-18 17401$356 324 !onh X I Nowlg100236 3eo-22 1.084 309 I 1.402 ; S 211.81r X 13'l61 lAua-18 85 x Brcward STIRLING XSroward Baoward 704763 lAuo-14 Jul-21 2.301 257 I 2.567 : S 33.857 qf wq|q iJun-1 g704765 i6600 S FlaminooSTONEBRIDGE lDec17704747 Dade 2.864 I $348.034 X lodh ,NTREE lJul-19201361 NoF21 56S 110 )ade t13655 NWSU/EETWATER t0s765 :Auo-l 8 1t-22 X odh Oct-21 1.069 '1.'t60 ! s 2.013.570 X 205S33 lJun-20 ou-21 s6 123 1_085 i $a41.921 X IARTAN lN/O SR 804 on M 2 308 Nodh 836 'ls 855'$176.887 x 402134 lJul-18 :ast I3290 SE SoulhbenTESORO ,t-21 2.431 a S 2.138.76S X 501835 lOcLl 8 2743 15300 S tlnivenTIIMBERLAKE I Feb-1S705232 212 3 1.821 1 S 3.371.556 X 70523't lAuo-f6 Me!-21 1 929 175 2 2106!$93 245 X \onh :917 TroDicTITUSVILLE 308 2.211 ) $ 1.011.579 X aUS*f AND BeefeloTOLOMATO Nov-21 668 172 6 846t$585.43S X :S/O Saddle ClubTRACE X Sroward 785!S 277.134 X 1061 66 IMar-16 Uats21 Broward !4501 PoweT\A/lNLAKES 2561$95.1 85 X IJ ul-f gs12382 qoF21 485 63S:$25 201 VALENCIA lOcLl s706262 ^uo-22 2 907 X Broward ,200VALENCIA L580 '196 '1.777 : S 6.00S.S85 X !oF21 387 3.S67 : $616.O77 x lma / Maflhew Outage 2020 Project cost Total Custolners Docket No. 2O2O0O71-EI FPL's 2020-2O29 Storm Protection Plan Exhibit MJ-1 , APPENDIX E (Page 10 of 16) X lod-14 lMav-21 720 6 8l,563 lJun-21 '180 r337 INov-18 lNov-2 1 160 1.128 ' $ 2.754.368 700635 I oc!1 I lAuq-22 903 17s41s3.367.516 00540 I Ocl-i S ,Avo-22 75 x 229 2 1.{64 : $70.42771 878:S 268.558 31 1431 iJun-19 ,SeD-21 359: $ I ofS760 X 11433 lJun-1S :Seo-21 64 '138 lS 1 1 3.593 t00138 lSeo-20 ,Jul22 8781S lJun-1S703933 iAor-21 888 tssgl$ 12.955 X lDeG20703S37 lMar-23 983 X 211 :Ju1-18104034 lDec-21 667i$125.526 101131 iNow18 !Jun-22 iNoEl8500833 :DeG21 1.732 264 3 111 ISeo-17505465 lJun-23 12115 3S6.298 703237 lNoulS lJul22 3525 I $ 2.352.858 'DeG19 10s034 !seo-22 X lMav-217364 ' Feb16 1.679 '100 214 3.255 : $ 1.516.027 Slan Date{tr lrma / [.rlanh€w Outaqe Residenlial Custorners {s&si (1) Staddate rcflecb eslimaled/actual datewhen inilial pqect costs wiil begln to accte (e,9,, preliminar engineeing/design, site Neparalions, customet outeach) (2) completion date reflecb lhe estinated date when all prciect costs wiil be final Docket No. 20200071-El FPL'S 2O2O-2O29 Storm Protection Plan Exhibit MJ-1, APPENDIX E (Page 11 of 16) Appendlx E: FPL 2O2O Project Level Detail Lateral Hardening (Undergrounding) - Distribution Program 103 *19!'5y! -_-999191" 149 -*ilq qg9ig{r q qulq?qll leis!-g-er{ggqt1 lee!s!1-g-Sgee[ le$srl.q-9!!ees!. legsli-g-9sleeelr" leqlglt q Qultgqcll 3onstrudion I6iT!!,rrr"qli leligr-g-gUc?q!- :onstrudionifi;fifrffi-q, tI 1qs,?q3 38fade !ov-1 g ffi16-: MJ3_........, til-1 9 ,uo20 10 I 1Design & Oqtreach Design & Ouheach 4,4pt .-*n9,53j,n 015 DadeN6fr6- un-20 I 83 ?r,?91 97!,79? 2 000 onstrudion qr6nE!qifr?rfr onslrudion ConstrudionffiisnT6uk;f q9:i9l-q!!jr9e9!. B:js!1gPgtgg{ uaoeGa;- 49 342 75 109 ionslrudton SGrS!,r!rq6' lgsis!r-qggg3g!. :onstruction 16srEOu!(r"qf X X --x 1 73 )nstrudion uo-'1 g )nstruction .20 34 2 XDec18;;;16-- I 22 :206 89 1n-8 170*?3 2 I 6 X I)As- lade zc20 10 X 1SI X lnna / Maflhew Outage Current Estimated Docket No. 2O2O0071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX E (Page 12 of 16) ls tTT-' - f*- t1 : x iegl! l!un-29 l *46 20 21 |e€1 2 31 I3eG20 3 34 5;tc-21 1 108 !\ct1 37 18 i 11Aor-20 201)ect1 X X ---9r1 1, !03 1@ ...-'E :6, '149731)c21 1 14**355 *-742 9V 1n I X 2-rfr8 968"--E 't 19 41 29 10 :--74:-H-335 :'"-66 181!ov-20 94i,c-21*:v- - 11S- -48t *Mt 68 I)ec-21 456 )l 13I 24* 168--34DeG20 ! - :I 3 23 43 IN,lav-20 I 153 IMatt$I t9 qoF20 842 )X 015 I X Cuilent Estimated Completion Date{2) Project lma / Manhew Outage lndustrial Customers Commercial Customers Docket No. 202O0O71-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX E (Page 13 of 16) 31; 1-) 1t 2bt 11( 18t 6( ry 2 21 X :IMPERIAL 1 16 E9 321-"T6 iLAKE IDAEasl n-20 lDec-21 25 X iliami-Dade I87360slg30gE :Desidn & ourreach 1807731 )rth INilLLS iailanan I131uu252tu/ Iueston & uureach 13udub3 :ellthan llllnodo2nqlN lnFeidn & arilr.,.h llo8n61 t9 lJun-20 X 6t IPARK lDeG21 11Fl9 lnna / Mathew Outaqe Rasidenlial Customers Current Estimaled Completion Docket No. 2O200071-El FPL's 2020-2029 Storm Protection Plan Exhibit MJ-1, APPENDIX E (Page 14 of 16) f,n lr!Cegt'-iDec-21 21 ieGlg 21 lDec-2i 15;15 i iMatto 197 ,4luo-1S 201 51 I 9lI Dee2l 60 )v-19 10 t t!:D€G21 11 un-'19 30!!Auo-20 30 uo-lS It1 I 8i 11SiDec-21 'h-l9 55:lMar-?0 I 55 uo-1S 30 IlMar-20 I 30 4trn-20 lDec-21 13 38 I 2,tntO :Dec-21 40 54 I 1'rl-19 i SeD-20 37tinJSlMav-20 I 37 11 I 11uo-19 lDec-21 I 201un-10 lDer2i I 20 201ud-19 I DeG21 20 39iild-19 I Dc.-21 21 |uo-19 lDec-21 21 201rh-19 lDec-21 20 85 I 1tua-19 lllar-20 66 uFl9 I Dec-21 13 I 13 tDec21 35 I 9'lun-20 44 10 t 2\3b-20 JDec21 12 111:ab20 :De021 14 t4 IeL20lDeG21 14 12,:eL20 lDec-21 12 159 i 5!:20 I D€c-21 l 164 16l 1i-20 lDec-21 I 17 Fet}.2o iDec-21 :17!1tI 274F20lDe.rl I l 27 11 i 11JanAO:Dec-21 l l lDe12'l 14Jan-20 i 14 lnec'l 18:1Po l8 !!9!- -g!ges* Auo-19 24 I:Oct-20 24 21 1 21 Auo-19 37t 2liMar-20 117 1 11/Jan-20 iDec-21 276 I 9iJunto1Dec21 285 i15 i 6i 121.?o :Dce-21 51 IJan-1S i Nov-20 51 36:2iI Nov-20 38 Region Project Completion Date('r lnna / Mathew Outaqe Current Estamated Docket No. 20200071-El FPL's 202O-2029 Storm Protection Plan Exhibit MJ-1 , APPENDIX E (Page 15 of 16) rst lroward SOUTHSIDE Naples Plantation 41'-"trft 11 S0utnwesI Kancnes$iiiffiaiF;;6;;- S0utnwest Rancness;nfi;6in;;fr;; \* --x-*- Southwest Ranchessiiffi;rffi;;6;* Southwest Ranches ;ui6west R;rcfis3;;;ffi*- -Ifi X:*r *'--*--n*---- aoe;a;- ,inecfest ,irwdG.6 *J 202-nT 537^*-m TUITLEfffilrf- zd"-affi 316*11t 1F 4?4, 77 lh..- w6i-.-VANDERBILT VANSEFEiI]f- VANDFRBII T o!!i9l ollier --:t, 14!, 14, ?rq, *-331-, 37. --a ?22, 491, _.-La rmi SprinosDade _--::"L - !?!, --i9: 4?, . -3J1.,- 437, 261. iami GardensiffFt;a;;;- lrth Prolect lma / Mafrhew Outaqe /Vots; (1) Sta|l date reflecb stimatedlactual datewhen initial prcject cosls will begin lo accrue (e,9,, prelininary ehgineefng/d$igh, slte prpatalions, customet outeach) (2) Completloh date feflects the $tihaled/actual date when all prcject cosb will be linal Docket No. 2020007 1-El FPL'S 2020-2029 Storm Protection Plan Exhibit MJ-1, APPENDIX E (Page 16 of 16) Appendix E: FPL 2020 Project Level Detail Substation Storm Surge, Flood Mitigation Program Total Cust0mersRegion P rojeclEslimated / Staft Dateh) /Volesi (1) Stad date rfec's estimate.ttactual date when initlal prject costs wii begln lo accre (e,g., prliminar englneeing/deslgn, slte prepatatlons, customer outrach) (2) complellon date rcflects lhe $timated dale when all prciect costs wiil be flnal