Florida Administrative Code › 25 - PUBLIC SERVICE COMMISSION › 25 - Departmental › Chapter 25-6 - ELECTRIC SERVICE BY ELECTRIC PUBLIC UTILITIES › Part VI - CUSTOMER RELATIONS › Section 25-6.109 - Refunds

Current through Reg. 50, No. 138; July 16, 2024
(1) Applicability. With the exception of
				  deposit refunds and refunds associated with adjustment factors, all refunds
				  ordered by the Commission shall be made in accordance with the provisions of
				  this Rule, unless otherwise ordered by the Commission.
(2) Timing of Refunds. Refunds must be made
				  within ninety (90) days of the Commission's order unless a different time frame
				  is prescribed by the Commission. Unless a stay has been requested in writing
				  and granted by the Commission, a motion for reconsideration of an order
				  requiring a refund will not delay the timing of the refund. In the event that a
				  stay is granted pending reconsideration, the timing of the refund shall
				  commence from the date of the order disposing of any motion for
				  reconsideration. This rule does not authorize any motion for reconsideration
				  not otherwise authorized by Chapter 25-22, F.A.C.
(3) Basis of Refund. Where the refund is the
				  result of a specific rate change, including interim rate increases and the
				  refund can be computed on a per customer basis, that will be the basis of the
				  refund. In such cases, refunds may by made by either recalculating the affected
				  customer's bill or by applying an appropriate refund factor to the consumption
				  used by the customer during the refund period. However, where the refund is not
				  related to specific rate changes, such as a refund for overearnings, the refund
				  shall be made to customers of record as of a date specified by the Commission.
				  In such case, refunds shall be made on the basis of consumption. Per customer
				  refund refers to a refund to every customer receiving service during the refund
				  period. Customer of record refund refers to a refund to every customer
				  receiving service as of a date specified by the Commission.
(4) Interest.
(a) In the case of refunds which the
				  Commission orders to be made with interest, the average monthly interest rate
				  until the refund is posted to the customer's account shall be based on the
				  thirty (30) day commercial paper rate for high grade, unsecured notes sold
				  through dealers by major corporations in multiples of $1, 000 as regularly
				  published in the Wall Street Journal.
(b) This average monthly interest rate shall
				  be calculated for each month of the refund period:
1. By adding the published interest rate in
				  effect for the last business day of the month prior to each month of the refund
				  period and the published rate in effect for the last business day of each month
				  of the refund period divided by twenty-four (24) to obtain the average monthly
				  interest rate;
2. The average
				  monthly interest rate for the month prior to distribution shall be the same as
				  the last calculated average monthly interest rate.
(c) The average monthly interest rate shall
				  be applied to the sum of the previous month's ending balance (including monthly
				  interest accruals) and the current month's ending balance divided by two (2) to
				  accomplish a compounding effect.
(d) Interest Multiplier. When the refund is
				  computed for each customer, an interest multiplier may be applied against the
				  amount of each customer's refund in lieu of a monthly calculation of the
				  interest for each customer. The interest multiplier shall be calculated by
				  dividing the total amount refundable to all customers, including interest, by
				  the total amount of the refund, excluding interest. For the purpose of
				  calculating the interest multiplier, the utility may, upon approval by the
				  Commission, estimate the monthly refundable amount.
(e) Commission staff shall provide applicable
				  interest rate figures and assistance in calculations under this Rule upon
				  request of the affected utility.