Section 25-17.0836 - Modification to Existing Contracts; Explanation of When Approval Is Required(1) Each investor-owned utility shall notify the Director of the Division of Engineering of all modifications to existing contracts for the purchase of firm capacity and energy, the costs of which are reviewed through the Commission's periodic review of fuel and purchased power costs, within 30 days of the modification. At a minimum, the following information shall be submitted:(a) A description of the modification and a statement indicated whether the modification is a material change;(b) A copy of the documents that evidence the modification;(c) A detailed statement explaining whether the existing contract would be viable if no modification is made;(d) A statement indicating whether the in-service date of the project will change because of the modification; and(e) A description of the price, performance, or other concessions that result from the contract modification between the purchasing utility and the qualifying facility, nonutility generator, or other utility.(2) In order for a utility to recover its costs, Commission approval is required for a modification that affects the overall efficiency, cost-effectiveness or nature of the project. Such modifications include, but are not limited to, changes to contractual terms such as location, prime mover technology type, fuel type, performance requirements, contracted megawatt output, the timing of capacity payments, or amount of capacity payments.(3) Commission approval is not required for modifications explicitly contemplated by the terms of the contract or routine administrative changes. Such modifications include, but are not limited to, an assignment expressly authorized by the terms of the contract, typographical corrections, change of address for payments, or change of name of resident agent.(4) In cases where approval of a contract modification is required for utility cost recovery, a utility shall file with the Office of Commission Clerk a petition for contract modification approval that provides the information required by paragraphs (1)(a) through (e) above. The petition shall also comply with the requirements of Rule 25-22.036, F.A.C. When a petition is filed, the petition shall serve as the notice required by subsection (1) above.(5) The utility shall demonstrate any benefits to the general body of ratepayers that result from contract modifications and renegotiations.(6) The modifications and concessions of the utility and developer shall be evaluated against both the existing contract and the current value of the purchasing utility's avoided cost.(7) On its own motion, the Commission may review a contract modification to determine whether the modification requires approval.Fla. Admin. Code Ann. R. 25-17.0836
Rulemaking Authority 350.127(2), 366.05(1) FS. Law Implemented 366.05(7), (8), 366.051 FS.