A Gulf Power Robert L. McGee, Jr. Regulato1 y & P11cmg Manage' FILED OCT 12, 2016 DOCUMENT NO. 08157-16 FPSC - COMMISSION CLERK One Ene1gy Place Pen~acola. FL 32520 0780 850 444 bS30 tel 850 444 6026 fax 11rncgee@southe1 nco com October 12, 2016 VIA ELECTRONIC FILING Ms. Carlotta Stauffer Commission Clerk Florida Public Service Commission 2540 Shumard Oak Boulevard Tallahassee, Florida 32399-0850 Ae: Petition for an increase in rates by Gulf Power Company, Docket No. 160186-EI Re: Petition for approval of 2016 depreciation and dismantlement studies, approval of proposed depreciation rates and annual dismantlement accruals and Plant Smith Units 1 and 2 regulatory asset amortization by Gulf Power Company, Docket No. 160170-EI Dear Ms. Stauffer: Attached is Gulf Power Company's Minimum Filing Requirements Section C- Net Operating Income Schedules. (Document 23 of 29) Sincerely, !~~~1-f· Regulatory & Pricing Manager BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION DOCKET NO. 160186-EI MINIMUM FILING REQUIREMENTS SECTION C – NET OPERATING INCOME SCHEDULES GULF POWER COMPANY Docket No. 160186-EI Minimum Filing Requirements Index C. Net Operating Income Schedules Schedules Witness Title Page C-1 Ritenour Adjusted Jurisdictional Net Operating Income 1 C-2 Ritenour Net Operating Income Adjustments 4 C-3 Ritenour Jurisdictional Net Operating Income Adjustments 7 C-4 O’Sheasy Jurisdictional Separation Factors – Net Operating Income 21 C-5 Ritenour Operating Revenues Detail 27 C-6 Mason Hodnett Burroughs Smith Terry Budgeted Versus Actual Operating Revenues and Expenses 30 C-7 Ritenour Operation and Maintenance Expenses – Test Year 42 C-8 Hodnett Smith Burroughs Detail of Changes in Expenses 43 C-9 Hodnett Burroughs Smith Terry Five Year Analysis – Change in Cost 44 C-10 Hodnett Detail of Rate Case Expenses for Outside Consultants 45 C-11 Terry Uncollectible Accounts 46 i GULF POWER COMPANY Docket No. 160186-EI Minimum Filing Requirements Index C. Net Operating Income Schedules Schedules Witness Title Page C-12 Hodnett Terry Administrative Expenses 47 C-13 Hodnett Miscellaneous General Expenses 48 C-14 Terry Advertising Expenses 49 C-15 Hodnett Industry Association Dues 51 C-16 Hodnett Outside Professional Services 53 C-17 Hodnett Pension Cost 54 C-18 Hodnett Lobbying Expenses, Other Political 56 Expenses and Civic/Charitable Contributions C-19 Ritenour Hodnett Amortization/Recovery Schedule – 12-Months 57 C-20 Hodnett Taxes Other Than Income Taxes 58 C-21 Hodnett Revenue Taxes 61 C-22 Hodnett State and Federal Income Tax Calculation 62 C-23 Ritenour Interest in Tax Expense Calculation 68 C-24 Liu Parent(s) Debt Information 69 C-25 Hodnett Deferred Tax Adjustment 71 C-26 Hodnett Income Tax Returns 72 C-27 Hodnett Consolidated Tax Information 73 C-28 Hodnett Miscellaneous Tax Information 74 ii GULF POWER COMPANY Docket No. 160186-EI Minimum Filing Requirements Index C. Net Operating Income Schedules Schedules Witness Title Page C-29 Hodnett Ritenour Gains and Losses on Disposition of Plant or Property 75 C-30 Hodnett Transactions with Affiliated Companies 76 C-31 Hodnett Affiliated Company Relationships 77 C-32 Ritenour Non-Utility Operations Utilizing Utility Assets 105 C-33 Ritenour Performance Indices 106 C-34 Park Burroughs Smith Statistical Information 108 C-35 Ritenour Payroll and Fringe Benefit Increases Compared to CPI 109 C-36 Ritenour Non-Fuel Operation and Maintenance Expense Compared to CPI 111 C-37 Ritenour O&M Benchmark Comparison by Function 112 C-38 Ritenour O&M Adjustments by Function 113 C-39 Ritenour Benchmark Year Recoverable O&M Expenses by Function 115 C-40 Ritenour O&M Compound Multiplier Calculation 116 C-41 Ritenour Burroughs Smith Terry Hodnett O&M Benchmark Variance by Function 117 iii GULF POWER COMPANY Docket No. 160186-EI Minimum Filing Requirements Index C. Net Operating Income Schedules Schedules Witness Title Page C-42 Burroughs Hedging Costs 134 C-43 Hodnett Security Costs 135 C-44 Ritenour Revenue Expansion Factor 136 iv Schedule C-1 FLORIDA PUBLIC SERVICE COMMISSION ADJUSTED JURISDICTIONAL NET OPERATING INCOME EXPLANATION: Provide the calculation of the jurisdictional net operating income for the test year, the prior year and the most recent historical year. Page 1 of 3 Type of Data Shown: _X_Projected Test Year Ended 12/31/17 - -Prior Year Ended 12/31/16 - -Historical Year Ended 12/31/15 Witness: S. D. Ritenour COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI {$000s} Adjusted Jurisdictional Net Operating Income Calculation for the Twelve Months Ended (1) Line No. (2) (3) Description (4) (5) (6) (7) Total Company per Books NonElectric Utility Electric Utility (4)- (5) Commission Adjustments (Sch. C-3) (8) (9) Utility Adjusted per Company Commission Adjustments (6) + (7) (Sch. C-3) (10) Total Adjusted Utility (8) + (9) (11) (12) Total Adjusted Unit Power Sales Utility Net Operating net of UPS Income (10)+(11) (13) (14) Jurisdictional Separation Factor Jurisdictional Amount (12)x(13) 0Qerating Revenues: 2 3 Sales of Electricity Other Operating Revenues Total Operating Revenues 5 0Qerating ExQenses: 1,435,921 67,213 (834,474) {41 ,767} 601,447 25,446 601,447 26,869 (12,919) 1,423 588,528 26,869 0.9753521 0.8427556 574,022 22,644 1,503,134 1,503,134 (876,241} 626,893 1,423 628,316 (12,919} 615,397 0.9695627 596,666 508,191 87,837 10,354 45,588 320,295 177,929 (394) 115,277 508,191 87,837 10,354 45,588 320,295 177,929 (394) 115,277 (508,191) (87,837) (10,354) (45,588) (1,343) (54,222) 4,144 17,165 (80,029) 318,952 123,707 (394) 35,248 323,096 140,872 (394) 35,248 (3,283) (2,002) 61 (185) 319,813 138,870 (333) 35,063 0.9812609 0.9813351 0.9819820 0.9800074 313,820 136,278 (327) 34,362 49,087 3,669 49,087 3,669 (20,907) (3,476) 28,180 193 (6,577) (1,094) 21,603 (901) (1,786) (134) 19,817 (1,035) 0.9043098 0.9043098 17,921 (936) 10,357 6,656 10,357 6,656 10,357 6,656 (377) {242} 9,980 6,414 0.9043098 0.9043098 9,025 5,800 1,334,846 1,334,846 (811 ,947) 522,899 13,638 536,537 (7,948} 528,589 0.9760759 515,943 168,288 168,288 {64,294} 103,994 {12,215} 91,779 {4,971} 86,808 0.9299028 80,723 1 4 1,435,921 67,213 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Recoverable Fuel Recoverable Capacity Recoverable Conservation Recoverable Environmental Other Operation & Maintenance Depreciation & Amortization Amortization of Investment Credit Taxes Other Than Income Taxes Income Taxes Federal State Deferred Income Taxes- Net Federal State 20 Total Operating Expenses 21 Net Operating Income Supporting Schedules: C-2, C-3, C-4, C-5, C-20, C-22, F-8 10,357 6,656 Recap Schedules: A-1, C-21, C-36 Schedule C-1 FLORIDA PUBLIC SERVICE COMMISSION ADJUSTED JURISDICTIONAL NET OPERATING INCOME EXPLANATION: Provide the calculation of the jurisdictional net operating income for the test year, the prior year and the most recent historical year. Page 2 of 3 Type of Data Shown: _ _ Projected Test Year Ended 12/31/17 _X_ Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: S. D. Ritenour COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI -- {$000s} Adjusted Jurisdictional Net Operating Income Calculation for the Twelve Months Ended (1) Line No. (2) (3) Description (4) (5) (6) (7) Total Company per Books NonElectric Utility Electric Utility (4)- (5) Commission Adjustments (Sch. C-3) (8) (9) Utility Adjusted per Company Commission Adjustments (Sch. C-3) (6) + (7) (10) Total Adjusted Utility (8} + (9) (11) Unit Power Sales Net Operating Income (12) Total Adjusted Utility net of UPS (10) + (11) (13) (14) Jurisdictional Separation Factor Jurisdictional Amount (12)x (13) Ogerating Revenues: 2 3 Sales of Electricity Other Operating Revenues 2 4 Total Operating Revenues 5 Ogerating Exgenses: 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Recoverable Fuel Recoverable Capacity Recoverable Conservation Recoverable Environmental Other Operation & Maintenance Depreciation & Amortization Amortization of Investment Credit Taxes Other Than Income Taxes Income Taxes Federal State Deferred Income Taxes- Net Federal State 20 Total Operating Expenses 21 Net Operating Income 1,349,028 84,443 1,349,028 84,443 (759,845) {59,594} 589,183 24,849 589,183 24,849 (18,651) 570,532 24,849 0.9764255 0.8331522 557,082 20,703 1,433,471 1,433,471 {819,439) 614,032 614,032 (18,651} 595,381 0.9704458 577,785 308,844 119,790 (511) 37,743 (3,281) (2,769) 86 (339) 305,563 117,021 (425) 37,404 0.9812609 0.9813351 0.9819820 0.9800021 299,837 114,837 (417) 36,656 446,544 88,167 10,348 48,889 310,410 173,731 (511) 113,124 446,544 88,167 10,348 48,889 310,410 173,731 (511) 113,124 (446,544) (88,167) (1 0,348) (48,889) (1,566) (53,941) (75,381) 308,844 119,790 (511) 37,743 36,321 1,717 36,321 1,717 (22,870) (3,803) 13,451 (2,086) 13,451 (2,086) (2,070) (95) 11,381 (2,181) 0.9214239 0.9214239 10,487 (2,010) 24,945 8,809 24,945 8,809 24,945 8,809 24,945 8,809 (1,422) {486} 23,523 8,323 0.9214239 0.9214239 21,675 7,669 1,262,494 1,262,494 510,985 510,985 {10,376) 500,609 0.9762784 488,734 170,977 170,977 103,047 103,047 8275 94,772 0.9396365 Supporting Schedules: C-2, C-3, C-4, C-5, C-20, C-22, F-8 (751 ,509} Recap Schedules: A-1, C-21, C-36 ADJUSTED JURISDICTIONAL NET OPERATING INCOME EXPLANATION: Provide the calculation of the jurisdictional net operating income for the test year, the prior year and the most recent historical year. Schedule C-1 FLORIDA PUBLIC SERVICE COMMISSION Page 3 of 3 Type of Data Shown: _ _ Projected Test Year Ended 12/31/17 - -Prior Year Ended 12/31/16 _x_Historical Year Ended 12/31/15 Witness: S. D. Ritenour COMPANY GULFPOWERCOMPANY DOCKET NO.: 160186-EI {$000s} Adjusted Jurisdictional Net Operating Income Calculation for the Twelve Months Ended (1) Line No. (2) (3) Description (4) (5) (6) (7) Total Company per Books NonElectric Utility Electric Utility (4)- (5) Commission Adjustments (Sch. C-3) (8) (9) Utility Adjusted per Company Commission Adjustments (Sch. C-3) (6) + (7) (10) Total Adjusted Utility (8) + (9) ( 11) Unit Power Sales Net Operating Income (12) Total Adjusted Utility net of UPS (10)+(11) (13) (14) Jurisdictional Separation Factor Jurisdictional Amount (12) X (13) 0Qerating Revenues: 2 3 Sales of Electricity Other Operating Revenues Total Operating Revenues 5 0Qerating ExQenses: 1,489,114 (6,108} (863,212) 31,195 625,902 25,087 625,902 25,087 (58,803) {31} 567,099 25,056 0.9779633 0.8217193 554,602 20,589 1,483,006 1,483,006 (832,017} 650,989 650,989 (58,834} 592,155 0.9713521 575,191 499,635 88,843 15,488 25,966 303,522 142,152 (702) 117,719 499,635 88,843 15,488 25,966 303,522 142,152 (702) 117,719 (499,635) (88,843) (15,488) (25,966) (1 ,082) (42,272) (81,411) 302,440 99,880 (702) 36,308 302,440 119,970 (702) 36,308 (13,049) (8,150) 253 (1 '184) 289,391 111,820 (449) 35,124 0.9812609 0.9813351 0.9819820 0.9800137 283,968 109,733 (441) 34,422 (27,216) 1,444 (27,216) 1,444 (19,832) (3,298) (47,048) (1,854) (53,693) (2,959) 3,769 (171) (49,924) (3,130) 0.9324938 0.9324938 (46,554) (2,919) 103,322 13,326 103,322 13,326 103,322 13,326 (14,308) {1 ,581} 89,014 11,745 0.9324938 0.9324938 83,005 10,952 1,283,499 1,283,499 {777,827) 505,672 12,340 518,012 {34,421} 483,591 0.9763759 472,167 199,507 199,507 {54, 190} 145,317 {12,340} 132,977 {24,413} 108,564 0.9489737 103,024 3 4 1,489,114 (6,108} 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Recoverable Fuel Recoverable Capacity Recoverable Conservation Recoverable Environmental Other Operation & Maintenance Depreciation & Amortization Amortization of Investment Credit Taxes Other Than Income Taxes Income Taxes Federal State Deferred Income Taxes- Net Federal State 20 Total Operating Expenses 21 Net Operating Income Supporting Schedules: C-2, C-3, C-4, C-5, C-20, C-22, F-8 20,090 (6,645) (1! 105) 103,322 13,326 Recap Schedules: A-1, C-21, C-36 Schedule C-2 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY NET OPERATING INCOME ADJUSTMENTS EXPLANATION: Provide a schedule of net operating income adjustments for the test year, the prior year and the most recent historical year. Provide the details of all adjustments on Schedule C-3. DOCKET NO.: 160186-EI (1) Line No. (2) (3) Descri(2tion Fuel Related Revenues & Ex12enses Conservation Revenues & Ex12enses 4 1 2 3 Operating Revenues: Sales of Electricity Other Operating Revenues (508,545) 4 Total Operating Revenues ~508,545~ 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Operating Expenses: Recoverable Fuel Recoverable Capacity Recoverable Conservation Recoverable Environmental Other Operation & Maintenance Depreciation & Amortization Amortization of Investment Credit Taxes Other Than Income Taxes Income Taxes Federal State Deferred Income Taxes- Net Federal State Investment Tax Credit 21 Total Operating Expenses 22 Net Operating Income Supporting Schedules: C-3, C-5 (13,466) ~13,466~ Page 1 of 3 Type of Data Shown: ___x_Projected Test Year Ended 12/31/17 - -Prior Year Ended 12/31/16 - -Historical Year Ended 12/31/15 Witness: S. D. Ritenour (5) (6) (7) (8) PPCC Revenues & Ex12enses ECRC Revenues & Ex12enses Miscellaneous Adjustments Total Adjustments (85,334) (85,334~ (195,598) (31 ,531) (834,474) (40,344~ (40,344~ ~71 ,875~ ~874,818} (53,755) 2,801 17,165 (508, 191) (87,837) (1 0,354) (45,588) 2,801 (37,057) (5,727) (73,31 0) (80,029) 2,294 382 (27,484) (4,570) ~195,598~ (508,191) (87,837) (10,354) (45,588) (467) (277) (654) (61) (25) (4) (659) (11 0) 848 141 (508,497l ~12,244~ ~48} ~1 ,222) ~86,909} 1,575 (29,942) (4,979) ~139,991) ~50,668~ ~798,309} (55,607~ ~21 ,207} ~76,509} Recap Schedule: C-1 Schedule C-2 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY NET OPERATING INCOME ADJUSTMENTS EXPLANATION: Provide a schedule of net operating income adjustments for the test year, the prior year and the most recent historical year. Provide the details of all adjustments on Schedule C-3. DOCKET NO.: 160186-EI Page 2 of 3 Type of Data Shown: __ Projected Test Year Ended 12/31/17 _x_ Prior Year Ended 12/31/16 - -Historical Year Ended 12/31/15 Witness: S.D. Ritenour Adjustments for the Twelve Months Ended 12/31/2016 ($000s) (1) Line No. (2) (3) (4) (5) (6) (7) (8) Description Fuel Related Revenues & Expenses Conservation Revenues & Expenses PPCC Revenues & Expenses ECRC Revenues & Expenses Miscellaneous Adjustments Total Adjustments 5 2 3 Operating Revenues: Sales of Electricity Other Operating Revenues (430,064) (19,479) (13,184) (85,654) (200,578) (30,365) (40, 115) (759,845) (59,594) 4 Total Operating Revenues (449,543) (13,184) (85,654) (200,578) (70,480) (819,439) 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Operating Expenses: Recoverable Fuel Recoverable Capacity Recoverable Conservation Recoverable Environmental Other Operation & Maintenance Depreciation & Amortization Amortization of Investment Credit Taxes Other Than Income Taxes Income Taxes Federal State Deferred Income Taxes- Net Federal State Investment Tax Credit 21 Total Operating Expenses 22 Net Operating Income Supporting Schedules: C-3, C-5 (446,544) (88, 167) (10,348) (48,889) (1,566) (411) (53,530) (446,544) (88,167) (10,348) (48,889) (1,566) (53,941) (247) (608) (61) (3,969) (70,496) (75,381) (910) (151) (601) (100) 851 142 (31,153) (5,180) 8,943 1,486 (22,870) (3,803) (447,852) (12,068) (87,235) (142,721) (61,633) (751,509) (1,691) (1 '116) 1,581 (57,857) (8,847) (67,930) Recap Schedule: C-1 Schedule C-2 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULFPOWERCOMPANY NET OPERATING INCOME ADJUSTMENTS EXPLANATION: Provide a schedule of net operating income adjustments for the test year, the prior year and the most recent historical year. Provide the details of all adjustments on Schedule C-3. DOCKET NO.: 160186-EI Page 3 of 3 Type of Data Shown: __ Projected Test Year Ended 12/31/17 - -Prior Year Ended 12/31/16 __x_Historical Year Ended 12/31 /15 Witness: S. D. Ritenour Adjustments for the Twelve Months Ended 12/31/2015 ($000s) ( 1) Line No. (2) (3) (4) (5) (6) (7) (8) Description Fuel Related Revenues & Expenses Conservation Revenues & Expenses PPCC Revenues & Expenses ECRC Revenues & Expenses Miscellaneous Adjustments Total Adjustments Operating Revenues: Sales of Electricity Other Operating Revenues (562,008) 59,384 (24,229) 6,250 (85,652) (656) (158, 127) 10,311 (33, 196) (44,094) (863,212) 4 Total Operating Revenues (502,624) (17,979) (86,308) (147,816) (77,290) (832,017) (41 ,888) (1,082) 20,068 (499,635) (88,843) (15,488) (25,966) (1,082) (22, 182) 6 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Operating Expenses: Recoverable Fuel Recoverable Capacity Recoverable Conservation Recoverable Environmental Other Operation & Maintenance Depreciation & Amortization Amortization of Investment Credit Taxes Other Than Income Taxes Income Taxes Federal State Deferred Income Taxes - Net Federal State Investment Tax Credit 21 Total Operating Expenses 22 Net Operating Income Supporting Schedules: C-3, C-5 (499,635) (88,843) (15,488) (25,966) (362) 31 '195 (343) (349) (61) (3,711) (76,947) (81,411) (875) (146) (589) (98) 859 143 (25,220) (4,194) (652) (108) (26,477) (4,403) (500,999) (16,886) (87,902) (100,979) (58,721) (765,487) (1,625) (1,093) (46,837) (18,569) (66,530) 1,594 Recap Schedule: C-1 Schedule C-3 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI (1) (2) (3) Line No. Adj No. Adjustment JURISDICTIONAL NET OPERATING INCOME ADJUSTMENTS EXPLANATION: List and explain all proposed adjustments to net operating income for the test year, the prior year and the most recent historical year. ($000s) (4) Reason for Adjustment or Omission (Provide Supporting Schedules) Page 1 of 14 Type of Data Shown: _lL Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 Historical Year Ended 12/31 /15 Witness: S. D. Ritenour (5) (6) (7) Total Adjustment Jurisdictional Factor Jurisdictional Adjustment Commission Adjustments: 2 (1) To remove all fuel-related revenues and expenses from Fuel Revenues 4 (2) To remove all fuel-related revenues and Fuel Expense (3) Fuel Expense - Interchange Energy 7 (4) (5) To remove all PPCC revenues and expenses PPCC Revenues (6) To remove all PPCC revenues and expenses PPCC Expenses (7) To remove transmission expenses that are Purchased T ransm iss ion 25,967 0.9715793 25,229 424 0.9716981 412 (85,334) Direct (85,324) 75,188 0.9707134 72,986 12,649 0.9707487 12,279 recoverable through the capacity clause. (8) To remove all ECCR revenues and expenses ECCR Revenues (13,466) Direct (13,466) from NOI for ratemaking purposes. 17 18 461,552 from NOI for ratemaking purposes. 15 16 0.9579743 from NOI for ratemaking purposes. 13 14 481,800 that are recoverable through the fuel clause. 11 12 To remove all fuel-related revenues and To remove expenses associated with transmission Purchased Transmission 9 10 (487,461) expenses from NOI for ratemaking purposes. 7 8 Direct expenses from NOI for ratemaking purposes. 5 6 (508,545) NOI (net operating income) for ratemaking purposes. 3 (9) ECCR Expenses in O&M Expense 19 To remove all ECCR revenues and expenses 10,354 1.0000000 10,354 from NOI for ratemaking purposes. 20 Legend: 21 ECCR Energy Conservation Cost Recovery Clause 22 PPCC Purchased Power Capacity Cost Recovery Clause 23 ECRC Environmental Cost Recovery Clause Supporting Schedules: Recap Schedules: C-1 , C-2 Schedule C-3 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI (1) (2) (3) Line No. Adj No. Adjustment JURISDICTIONAL NET OPERATING INCOME ADJUSTMENTS EXPLANATION: List and explain all proposed adjustments to net operating income for the test year, the prior year and the most recent historical year. ($000s) (4) Reason for Adjustment or Omission (Provide Supporting Schedules) Page 2 of 14 Type of Data Shown: _2L Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: S. D. Ritenour (5) (6) (7) Total Adjustment Jurisdictional Factor Jurisdictional Adjustment Commission Adjustments (Continued): 2 To remove all ECCR revenues and expenses (1 0) ECCR Depreciation 4 To remove all ECRC revenues and expenses (11) ECRC Revenues To remove all ECRC revenues and expenses (12) ECRC Expenses in O&M 8 (13) ECRC in Depreciation Expense (14) Gross Receipts & Franchise Fee Revenues Direct (189,644) 45,588 0.9710889 44,270 To remove all ECRC revenues and expenses 53,755 0.9707562 52,183 To remove gross receipts & franchise revenues (73,298) 1.0000000 (73,298) 73,245 1.0000000 73,245 277 1.0000000 277 from NOI for ratemaking purposes. 11 12 (195,598) from NOI for ratemaking purposes. 9 10 467 from NOI for ratemaking purposes. 7 8 1.0000000 from NOI for ratemaking purposes. 5 6 467 from NOI for ratemaking purposes. 3 (15) Gross Receipts & Franchise Fee Expenses To remove gross receipts & franchise expenses from NOI for ratemaking purposes. 13 14 (16) FPSC Assessment Fee on Fuel Revenues To remove the FPSC assessment fee on fuel revenues. 15 (17) FPSC Assessment Fee on PPCC To remove the FPSC assessment fee on capacity revenues. 61 1.0000000 61 To remove the FPSC assessment fee on ECCR revenues. 10 1.0000000 10 16 17 18 Revenues (18) FPSC Assessment Fee on ECCR Revenues 19 Legend: 20 ECCR Energy Conservation Cost Recovery Clause 21 PPCC Purchased Power Capacity Cost Recovery Clause 22 ECRC Environmental Cost Recovery Clause Supporting Schedules: Recap Schedules: C-1, C-2 Schedule C-3 FLORIDA PUBLIC SERVICE COMMISSION COMPAN~ GULFPOWERCOMPANY DOCKET NO.: 160186-EI (1) {2) {3) Line No. Adj No. Adjustment JURISDICTIONAL NET OPERATING INCOME ADJUSTMENTS EXPLANATION: List and explain all proposed adjustments to net operating income for the test year, the prior year and the most recent historical year. ($000s) (4) Reason for Adjustment or Omission (Provide Supporting Schedules) Page 3 of 14 Type of Data Shown: _lL Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: S. D. Ritenour {5) {6) (7) Total Adjustment Jurisdictional Factor Jurisdictional Adjustment Commission Adjustments (Continued): 2 3 4 5 6 9 7 8 {19) FPSC Assessment Fee on ECRC To remove the FPSC assessment fee on ECRC revenues. 137 1.0000000 137 30 1.0000000 30 {1) 1.0000000 (1) 36 0.9837536 35 5,590 0.9708408 5,427 Revenues {20) FPSC Assessment Fee on Franchise To remove the FPSC assessment fee on Franchise Fee revenues. Fee Revenue {21) FPSC Assessment Fee on Miscellaneous To include the FPSC assessment fee on the miscellaneous service revenue adjustment. Service Revenues {22) Payroll Taxes-Liaison Office Salaries To remove expenses associated with Gulf's liaison office located in Tallahassee. 9 10 {23) ECRC Expenses in Other Tax Expense To remove the ECRC payroll tax and ECRC property tax. 11 {24) ECCR Expenses in Other Tax Expense To remove the ECCR payroll tax & ECCR property tax. 644 1.0000000 644 12 {25) Institutional Advertising To remove expenses related to institutional 200 0.9840665 197 63 0.9994942 63 549 0.9840665 540 advertising. 13 14 {26) Economic Development Expenses development. 15 16 To remove 5% of expenses related to economic {27) Tallahassee Liaison Expenses O&M To remove expenses associated with Gulf's liaison office located in Tallahassee. 17 18 Legend: 19 ECCR Energy Conservation Cost Recovery Clause 20 PPCC Purchased Power Capacity Cost Recovery Clause 21 ECRC Environmental Cost Recovery Clause Supporting Schedules: Recap Schedules: C-1 , C-2 Schedule C-3 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI (1) Line No. (3) (2) Adj No. JURISDICTIONAL NET OPERATING INCOME ADJUSTMENTS EXPLANATION: List and explain all proposed adjustments to net operating income for the test year, the prior year and the most recent historical year. ($000s) (4) Reason for Adjustment or Omission (Provide Supporting Schedules) Adjustment Page 4 of 14 Type of Data Shown: _x_ Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: S. D. Ritenour (5) (6) (7) Total Adjustment Jurisdictional Factor Jurisdictional Adjustment Commission Adjustments (Continued): 2 (28) Management Financial Planning Services 4 (29) Marketing Support Activities (30) Wholesale Sales Expense 10 (31) Income Taxes- Adjustments (32) Income Taxes - Interest Synchronization 12 Total Commission Adjustments 13 Company Adjustments: (33) Electric Vehicle Charging Revenues 178 1.0000000 178 To remove expense associated with wholesale 310 1.0000000 310 To reflect the tax effect of all Commission 34,207 34,049 To reflect the tax effect of interest (9,824) (9,693) (64,294) (63,910) To reflect increased revenues associated with electric 239 0.9720737 232 1'184 1.0000000 1,184 vehicle charging stations. 15 16 To remove expenses that are promotional in synchronization. 11 14 42 adjustments. 9 10 0.9840665 activities. 7 8 43 nature. 5 6 To remove the management financial planning services from net operating income. 3 (34) Miscellaneous Service Revenues To reflect higher Miscellaneous Service Revenues. 17 Legend: 18 ECCR Energy Conservation Cost Recovery Clause 19 PPCC Purchased Power Capacity Cost Recovery Clause 20 ECRC Environmental Cost Recovery Clause Supporting Schedules: Recap Schedules: C-1 , C-2 Schedule C-3 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI (1) (2) (3) Line No. Adj No. Adjustment JURISDICTIONAL NET OPERATING INCOME ADJUSTMENTS EXPLANATION: List and explain all proposed adjustments to net operating income for the test year, the prior year and the most recent historical year. ($000s) (4) Reason for Adjustment or Omission (Provide Supporting Schedules) Page 5 of 14 Type of Data Shown: _x_ Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: S. D. Ritenour (5) (6) (7) Total Adjustment Jurisdictional Factor Jurisdictional Adjustment ComQany: Adjustments (Continued): 2 (35) Increase in Property Insurance Reserve 4 (36) Amortization of Rate Case Expenses 11 (5,400) 0.9842920 (5,315) To reflect the amortization of rate case (1,673) 1.0000000 (1,673) 863 0.9847735 850 (348) 0.9577982 (333) expenses. 5 6 To increase the property insurance reserve annual accrual to $8.9 million. 3 (37) Hiring Lag Adjustment to O&M To reflect the decrease in O&M expense due to a hiring lag adjustment. 7 8 (38) Production O&M Expense To reflect changes in Production O&M expense. 9 (39) Power Delivery O&M Expense To reflect changes in Power Delivery O&M expense. (1 '123) 0.9724192 (1,092) 10 (40) Long Term Evolution System O&M To exclude the O&M that was inadvertently budgeted twice 2,100 0.9901408 2,079 for Long Term Evolution. 11 12 (41) Customer Service O&M Expense To reflect changes in Customer Service O&M expense. 772 0.9907783 765 13 (42) Pension Expense To reflect the decrease in Administrative & General expense 665 0.9855595 655 associated with additional pension funding. 14 15 16 (43) Depreciation & Dismantlement Adj: 2016 Depreciation & 2016 Dismantlement Study To adjust depreciation & dismantlement based on the 17 Legend: 18 ECCR Energy Conservation Cost Recovery Clause 19 PPCC Purchased Power Capacity Cost Recovery Clause 20 ECRC Environmental Cost Recovery Clause Supporting Schedules: (7,291) 0.9639424 (7,028) 2016 Depreciation Study and 2016 Dismantlement Study. Recap Schedules: C-1 , C-2 Schedule C-3 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI (1) (2) (3) Line No. Adj No. Adjustment JURISDICTIONAL NET OPERATING INCOME ADJUSTMENTS EXPLANATION: List and explain all proposed adjustments to net operating income for the test year, the prior year and the most recent historical year. ($000s) (4) Reason for Adjustment or Omission (Provide Supporting Schedules) Page 6 of 14 Type of Data Shown: _lL Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: S. D. Ritenour (5) (6) (7) Total Adjustment Jurisdictional Factor Jurisdictional Adjustment Company Adjustments (Continued): 2 (44) Depreciation Expense- Community Solar 4 (45) Depreciation Expense- Generation (46) Depreciation Expense- Power Delivery 12 (47) Depreciation Expense- Customer Service (48) Amortization of Smith 1&2 Net Investment To reflect changes to depreciation expense associated with (472) 0.9720336 (459) To reflect changes to depreciation expense associated with (192) 0.9741896 (187) To reflect changes to depreciation expense associated with 29 0.9840739 29 To include amortization expense associated with the (2,781) 0.9720871 (2,703) (6,525) 0.9720871 (6,343) (152) 0.9720871 (148) Plant Smith NBV Regulatory Asset 11 12 (49) Amortization of Deferred Return on 13 Transmission Investment 14 213 Customer Service capital projects. 9 10 0.9720336 Power Delivery capital projects. 7 8 219 Generation capital projects. 5 6 To remove depreciation expense associated with Community Solar 3 (50) Amortization of Scholz Materials and Supplies To include amortization expense associated with the Transmission Settlement Regulatory Asset. To amortize inventory associated with Plant Scholz. 15 16 (51) Income Taxes- Adjustments 17 Total Company Adjustments 18 Legend: To reflect the tax effect of all Company adjustments. 19 ECCR Energy Conservation Cost Recovery Clause 20 PPCC Purchased Power Capacity Cost Recovery Clause 21 ECRC Environmental Cost Recovery Clause Supporting Schedules: 7,671 7,435 (12,215) (11 ,839) Recap Schedules: C-1 , C-2 Schedule C-3 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI (1) (2) (3) Line No. Adj No. Adjustment JURISDICTIONAL NET OPERATING INCOME ADJUSTMENTS EXPLANATION: List and explain all proposed adjustments to net operating income for the test year, the prior year and the most recent historical year. ($000s) (4) Reason for Adjustment or Omission (Provide Supporting Schedules) Page 7 of 14 Type of Data Shown: _ _ Projected Test Year Ended 12/31/17 _X_ Prior Year Ended 12/31/16 - -Historical Year Ended 12/31/15 Witness: S. D. Ritenour (5) (6) (7) Total Adjustment Jurisdictional Factor Jurisdictional Adjustment Commission Adjustments: 2 (1) To remove all fuel-related revenues and expenses from Fuel Revenues 4 (2) To remove all fuel-related revenues and Fuel Expense (3) Fuel Expense - Interchange Energy 13 (4) (5) To remove all PPCC revenues and expenses PPCC Revenues (6) To remove all PPCC revenues and expenses PPCC Expenses (7) To remove transmission expenses that are Purchased Transmission (8) To remove all ECCR revenues and expenses ECCR Revenues 0.9710152 38,794 424 0.9716981 412 (85,654) Direct (85,646) 75,189 0.9707134 72,987 12,978 0.9707487 12,598 (13,184) Direct (13,184) from NOI for ratemaking purposes. (9) ECCR Expenses in O&M Expense To remove all ECCR revenues and expenses 10,348 1.0000000 10,348 from NOI for ratemaking purposes. 19 20 Legend: 21 ECCR 22 PPCC Purchased Power Capacity Cost Recovery Clause ECRC Environmental Cost Recovery Clause 23 39,952 recoverable through the capacity clause. 17 18 385,222 from NOI for ratemaking purposes. 15 16 0.9484302 from NOI for ratemaking purposes. 13 14 406,168 that are recoverable through the fuel clause. 11 12 To remove all fuel-related revenues and To remove expenses associated with transmission Purchased Transmission 9 10 (426,797) expenses from NOI for ratemaking purposes. 7 8 Direct expenses from NOI for ratemaking purposes. 5 6 (449,543) NOI (net operating income) for ratemaking purposes. 3 Supporting Schedules: Energy Conservation Cost Recovery Clause Recap Schedules: C-1, C-2 Schedule C-3 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI (1) Line No. (2) Adj No. JURISDICTIONAL NET OPERATING INCOME ADJUSTMENTS EXPLANATION: List and explain all proposed adjustments to net operating income for the test year, the prior year and the most recent historical year. ($000s) (3) (4) Reason for Adjustment or Omission (Provide Supporting Schedules) Adjustment Page 8 of 14 Type of Data Shown: _ _ Projected Test Year Ended 12/31/17 _X_Prior Year Ended 12/31/16 _ _Historical Year Ended 12/31/15 Witness: S. D. Ritenour (5) (6) (7) Total Adjustment Jurisdictional Factor Jurisdictional Adjustment Commission Adjustments (Continued): 2 To remove all ECCR revenues and expenses (10) ECCR Depreciation 4 To remove all ECRC revenues and expenses (11) ECRC Revenues To remove all ECRC revenues and expenses (12) ECRC Expenses in O&M 14 (13) ECRC in Depreciation Expense (14) Gross Receipts & Franchise Fee Revenues (15) Gross Receipts & Franchise Fee Expenses To remove all ECRC revenues and expenses To remove gross receipts & franchise revenues To remove gross receipts & franchise expenses 14 (16) FPSC Assessment Fee on Fuel Revenues To remove the FPSC assessment fee on fuel revenues. 15 (17) FPSC Assessment Fee on PPCC To remove the FPSC assessment fee on capacity revenues. 17 18 (194,548) 48,889 0.9710889 47,476 53,530 0.9707562 51,965 (70,480) 1.0000000 (70,480) 70,432 1.0000000 70,432 247 1.0000000 247 61 1.0000000 61 9 1.0000000 9 from NOI for ratemaking purposes. 13 16 Direct from NOI for ratemaking purposes. 11 12 (200,578) from NOI for ratemaking purposes. 9 10 411 from NOI for ratemaking purposes. 7 8 1.0000000 from NOI for ratemaking purposes. 5 6 411 from NOI for ratemaking purposes. 3 Revenues (18) FPSC Assessment Fee on ECCR To remove the FPSC assessment fee on ECCR revenues. Revenues 19 Legend: 20 ECCR Energy Conservation Cost Recovery Clause 21 PPCC Purchased Power Capacity Cost Recovery Clause 22 ECRC Environmental Cost Recovery Clause Supporting Schedules: Recap Schedules: C-1, C-2 Schedule C-3 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI (1) (2} (3) Line No. Adj No. Adjustment JURISDICTIONAL NET OPERATING INCOME ADJUSTMENTS EXPLANATION: List and explain all proposed adjustments to net operating income for the test year, the prior year and the most recent historical year. ($000s) (4) Reason for Adjustment or Omission (Provide Supporting Schedules) Page 9 of 14 Type of Data Shown: _ _ Projected Test Year Ended 12/31/17 _X_ Prior Year Ended 12/31 /16 - -Historical Year Ended 12/31 /15 Witness: S. D. Ritenour (5) (6} (7) Total Adjustment Jurisdictional Factor Jurisdictional Adjustment Commission Adjustments (Continued}: 2 3 4 5 6 (19} FPSC Assessment Fee on ECRC To remove the FPSC assessment fee on ECRC revenues. 15 140 1.0000000 140 29 1.0000000 29 35 0.9837536 34 3,829 0.9708408 3,717 Revenues (20} FPSC Assessment Fee on Franchise To remove the FPSC assessment fee on Franchise Fee revenues. Fee Revenue (21) Payroll Taxes-Liaison Office Salaries To remove expenses associated with Gulf's liaison office located in Tallahassee. 7 8 (22} ECRC Expenses in Other Tax Expense To remove the ECRC payroll tax and ECRC property tax. 9 (23} ECCR Expenses in Other Tax Expense To remove the ECCR payroll tax & ECCR property tax. 599 1.0000000 599 10 (24} Institutional Advertising To remove expenses related to institutional 450 0.9840665 443 61 0.9994942 61 535 0.9840665 526 43 0.9840665 42 advertising. 11 12 (25} Economic Development Expenses development. 13 14 (26} Tallahassee Liaison Expenses O&M To remove expenses associated with Gulf's liaison office located in Tallahassee. 15 16 To remove 5% of expenses related to economic (27) Management Financial Planning Services To remove the management financial planning services from net operating income. 17 18 Legend: 19 ECCR Energy Conservation Cost Recovery Clause 20 PPCC Purchased Power Capacity Cost Recovery Clause 21 ECRC Environmental Cost Recovery Clause Supporting Schedules: Recap Schedules: C-1 , C-2 Schedule C-3 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI (1) (2) (3) Line No. Adj No. Adjustment JURISDICTIONAL NET OPERATING INCOME ADJUSTMENTS EXPLANATION: List and explain all proposed adjustments to net operating income for the test year, the prior year and the most recent historical year. ($000s) (4) Reason for Adjustment or Omission (Provide Supporting Schedules) Page 10 of 14 Type of Data Shown: _ _ Projected Test Year Ended 12/31/17 _X_Prior Year Ended 12/31/16 _ _Historical Year Ended 12/31/15 Witness: S. D. Ritenour (5) (6) (7) Total Adjustment Jurisdictional Factor Jurisdictional Adjustment Commission Adjustments (Continued): 2 (28) Marketing Support Activities 4 (29) Wholesale Sales Expense (30) Income Taxes -Adjustments 1.0000000 181 To remove expense associated with wholesale 296 1.0000000 296 To reflect the tax effect of all Commission 16 36,493 36,116 (9,820) (9,806) (67,930) (67,315) adjustments. 7 8 181 activities. 5 6 To remove expenses that are promotional in nature. 3 (31) Income Taxes - Interest Synchronization To reflect the tax effect of interest synchronization. 9 10 Total Commission Adjustments 11 Company Adjustments: 12 (32) Income Taxes -Adjustments 13 Total Company Adjustments To reflect the tax effect of all Company adjustments. 14 Legend: 15 ECCR Energy Conservation Cost Recovery Clause 16 PPCC Purchased Power Capacity Cost Recovery Clause 17 ECRC Environmental Cost Recovery Clause Supporting Schedules: Recap Schedules: C-1, C-2 Schedule C-3 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI (1) Line No. (2) Adj No. JURISDICTIONAL NET OPERATING INCOME ADJUSTMENTS EXPLANATION: List and explain all proposed adjustments to net operating income for the test year, the prior year and the most recent historical year. ($000s) (4) (3) Reason for Adjustment or Omission (Provide Supporting Schedules) Adjustment Page 11 of 14 Type of Data Shown: _ _Projected Test Year Ended 12/31/17 - -Prior Year Ended 12/31/16 _x_ Historical Year Ended 12/31/15 Witness: S. D. Ritenour (5) (6) (7) Total Adjustment Jurisdictional Factor Jurisdictional Adjustment Commission Adjustments: 2 (1) To remove all fuel-related revenues and expenses from Fuel Revenues 3 4 (2) To remove all fuel-related revenues and Fuel Expense (3) Fuel Expense- Interchange Energy 17 (4) (5) To remove all PPCC revenues and expenses PPCC Revenues (6) PPCC Expenses To remove all PPCC revenues and expenses (7) Purchased Transmission To remove transmission expenses that are 57,865 0.9739221 56,356 0.9705882 (99) (102) (86,308) Direct (85,638) 75,242 0.9707134 73,038 13,601 0.9707487 13,203 recoverable through the capacity clause. (8) To remove all ECCR revenues and expenses ECCR Revenues 17 18 430,349 from NOI for ratemaking purposes. 15 16 0.9739223 from NOI for ratemaking purposes. 13 14 441,872 that are recoverable through the fuel clause. 11 12 To remove all fuel-related revenues and To remove expenses associated with transmission Purchased Transmission 9 10 (475,511) expenses from NOI for ratemaking purposes. 7 8 Direct expenses from NOI for ratemaking purposes. 5 6 (502,624) NOI (net operating income) for ratemaking purposes. (17,979) Direct (17,979) from NOI for ratemaking purposes. (9) ECCR Expenses in O&M Expense 19 To remove all ECCR revenues and expenses 15,488 1.0000000 15,488 from NOI for ratemaking purposes. 20 Legend: 21 ECCR Energy Conservation Cost Recovery Clause 22 PPCC Purchased Power Capacity Cost Recovery Clause 23 ECRC Environmental Cost Recovery Clause Supporting Schedules: Recap Schedules: C-1 , C-2 Schedule C-3 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI (1) Line No. (2) Adj No. JURISDICTIONAL NET OPERATING INCOME ADJUSTMENTS EXPLANATION: List and explain all proposed adjustments to net operating income for the test year, the prior year and the most recent historical year. ($000s) (4) (3) Reason for Adjustment or Omission (Provide Supporting Schedules) Adjustment Page 12 of 14 Type of Data Shown: _ _Projected Test Year Ended 12/31/17 - -Prior Year Ended 12/31/16 _X_ Historical Year Ended 12/31/15 Witness: S. D. Ritenour (5) (6) (7) Total Adjustment Jurisdictional Factor Jurisdictional Adjustment Commission Adjustments (Continued): 2 To remove all ECCR revenues and expenses (1 0) ECCR Depreciation 3 4 To remove all ECRC revenues and expenses (11) ECRC Revenues To remove all ECRC revenues and expenses (12) ECRC Expenses in O&M 18 (13) ECRC in Depreciation Expense To remove all ECRC revenues and expenses 10 ( 14) Loss on Disposition of Property To remove the loss on sale of property. 11 (15) Gross Receipts & Franchise Fee Revenues To remove gross receipts & franchise revenues Direct (143,668) 25,966 0.9710889 25,215 41,888 0.9707562 40,663 22 0.9820109 22 (77,290) 1.0000000 (77,290) 76,893 1.0000000 76,893 343 1.0000000 343 61 1.0000000 61 from NOI for ratemaking purposes. 12 (16) Gross Receipts & Franchise Fee Expenses To remove gross receipts & franchise expenses from NOI for ratemaking purposes. 14 15 (17) FPSC Assessment Fee on Fuel Revenues To remove the FPSC assessment fee on fuel revenues. 16 (18) FPSC Assessment Fee on PPCC To remove the FPSC assessment fee on capacity revenues. 17 (147,816) from NO! for ratemaking purposes. 9 13 362 from NOI for ratemaking purposes. 7 8 1.0000000 from NOI for ratemaking purposes. 5 6 362 from NOI for ratemaking purposes. Revenues 18 Legend: 19 ECCR Energy Conservation Cost Recovery Clause 20 PPCC Purchased Power Capacity Cost Recovery Clause 21 ECRC Environmental Cost Recovery Clause Supporting Schedules: Recap Schedules: C-1 , C-2 Schedule C-3 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULFPOWERCOMPANY DOCKET NO.: 160186-EI (1) (2) (3) Line No. Adj No. Adjustment JURISDICTIONAL NET OPERATING INCOME ADJUSTMENTS EXPLANATION: List and explain all proposed adjustments to net operating income for the test year, the prior year and the most recent historical year. ($000s) (4) Reason for Adjustment or Omission (Provide Supporting Schedules) Page 13 of 14 Type of Data Shown: _ _Projected Test Year Ended 12/31/17 - -Prior Year Ended 12/31/16 _x_ Historical Year Ended 12/31/15 Witness: S. D. Ritenour (5) (6) (7) Total Adjustment Jurisdictional Factor Jurisdictional Adjustment Commission Adjustments (Continued): 2 3 4 5 6 19 7 8 (19) FPSC Assessment Fee on ECCR To remove the FPSC assessment fee on ECCR revenues. 17 1.0000000 17 To remove the FPSC assessment fee on ECRC revenues. 111 1.0000000 111 32 1.0000000 32 22 0.9837536 22 3,600 0.9708408 3,495 Revenues (20) FPSC Assessment Fee on ECRC Revenues (21) FPSC Assessment Fee on Franchise To remove the FPSC assessment fee on Franchise Fee revenues. Fee Revenue (22) Payroll Taxes-Liaison Office Salaries To remove expenses associated with Gulf's liaison office located in Tallahassee. 9 10 (23) ECRC Expenses in Other Tax Expense To remove the ECRC payroll tax and ECRC property tax. 11 (24) ECCR Expenses in Ott1er Tax Expense To remove the ECCR payroll tax & ECCR property tax. 332 1.0000000 332 12 (25) Institutional Advertising To remove expenses related to institutional 184 0.9840665 181 60 0.9994942 60 446 0.9840665 439 advertising. 13 14 (26) Economic Development Expenses development. 15 16 To remove 5% of expenses related to economic (27) Tallahassee Liaison Expenses O&M To remove expenses associated with Gulf's liaison office located in Tallahassee. 17 18 Legend: 19 ECCR Energy Conservation Cost Recovery Clause 20 PPCC Purchased Power Capacity Cost Recovery Clause 21 ECRC Environmental Cost Recovery Clause Supporting Schedules: Recap Schedules: C-1 , C-2 Schedule C-3 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI (1) Line No. (2) Adj No. JURISDICTIONAL NET OPERATING INCOME ADJUSTMENTS EXPLANATION: List and explain all proposed adjustments to net operating income for the test year, the prior year and the most recent historical year. ($000s) (3) (4) Reason for Adjustment or Omission (Provide Supporting Schedules) Adjustment Page 14 of 14 Type of Data Shown: _ _ Projected Test Year Ended 12/31/17 _ _ Prior Year Ended 12/31/16 _X_Historical Year Ended 12/31/15 Witness: S. D. Ritenour (5) (6) (7) Total Adjustment Jurisdictional Factor Juris dictional Adjustment Commission Adjustments (Continued): 2 (28) Management Financial Planning Services 4 (29) Marketing Support Activities (30) Wholesale Sales Expense 20 (31) Income Taxes -Adjustments (32) Income Taxes - Interest Synchronization To remove expenses that are promotional in 176 1.0000000 176 To remove expense associated with wholesale 195 1.0000000 195 To reflect the tax effect of all Commission 29,826 24,345 To reflect the tax effect of interest (6,696) (6,500) (54, 190) (45,266) synchronization. 11 12 Total Commission Adjustments 13 Company Adjustments: 14 21 adjustments. 9 10 0.9840665 activities. 7 8 21 nature. 5 6 To remove the management financial planning services from net operating income. 3 (33) Cost of Removal - Depreciation To increase depreciation expense associated with (20,090) 1.0000000 (20,090) the 2013 Rate Case Settlement COR credits 15 (34) Income Taxes- Adjustments 16 Total Company Adjustments 17 Legend: To reflect the tax effect of all Company adjustments. 18 ECCR Energy Conservation Cost Recovery Clause 19 PPCC Purchased Power Capacity Cost Recovery Clause 20 ECRC Environmental Cost Recovery Clause Supporting Schedules: 7,750 7,750 (12,340) (12,340) Recap Schedules: C-1 , C-2 Schedule C-4 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI JURISDICTIONAL SEPARATION FACTORS- NET OPERATING INCOME Page 1 of 6 EXPLANATION: Provide jurisdictional factors for net Type of Data Shown: operating income for the test year, and the prior year if X Projected Test Year Ended 12/31/17 the test year is projected. Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: M. T. O'Sheasy ($000s) (1) (2) (3) (4) (5) (6) Total Line Account No. Number 2 440-447 Description (7) (8) Jurisdictional Jurisdictional Amount Separation Total Adjusted Adjusted Unit Power Utility Sales Utility Net of UPS Factor OPERATING REVENUES REVENUES FROM SALES OTHER OPERATING REVENUES: Misc. Service Revenues Rent from Electric Property 3 4 5 6 7 451 454 455 Interdepartmental Rental 456 Other Electric Revenues 21 8 9 10 TOTAL OTHER OPERATING REVENUES SALES TO NON-ASSOCIATED COMPANIES 447 TOTAL REVENUES 569,849 0 569,849 555,880 5,640 0 0 0 5,640 5,640 1.0000000 7,004 0 6,976 0 0.9960023 0.0000000 0 0 14,225 10,028 0.7049561 26,869 26,869 22,644 0.8427556 18,679 615,397 18,142 0.9712511 596,666 0.9695627 11,865 0.9720629 5,530 6,513 0.9711978 0.9715095 7,004 0 14,225 31,598 12,919 628,316 12,919 0.9754865 OPERATION AND MAINTENANCE EXPENSES 11 12 STEAM POWER GENERATION 13 OPERATION EXPENSE: 14 500 Supervision & Engineering 12,315 109 15 501 Fuel (Net) 5,803 109 12,206 5,694 16 502 6,980 276 6,704 17 505 Steam Electric 18 19 506 507 Miscellaneous Steam 20 509 Allowances 21 Rents TOTAL OPERATION 3,777 52 3,725 3,621 0.9720805 16,123 0 316 15,807 15,365 0 0 45,017 0 0 862 0.9720377 0.0000000 19 44,155 18 42,912 0.9718492 19 0.9473684 MAINTENANCE EXPENSE: 22 23 510 Supervision & Engineering 10,892 274 10,618 10,321 0.9720286 24 511 Structures 176 5,497 5,343 0.9719847 25 26 512 513 514 Boiler Plant Electric Plant Miscellaneous Steam TOTAL MAINTENANCE 5,673 31,974 10,430 3,154 62,123 1'117 186 60 1,813 29,975 9,951 3,007 58,597 0.9714165 0.9713979 0.9718811 0.9715968 107,140 2,675 30,857 10,244 3,094 60,310 104,465 101,509 0.9717034 27 28 29 Supporting Schedules: TOTAL STEAM POWER GENERATION Recap Schedules: C-1, C-12 Schedule C-4 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI JURISDICTIONAL SEPARATION FACTORS- NET OPERATING INCOME Page 2 of 6 Type of Data Shown: EXPLANATION: Provide jurisdictional factors for net operating income for the test year, and the prior year if X Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 the test year is projected. Historical Year Ended 12/31/15 Witness: M. T. O'Sheasy ($000s) (1) (3) (2) (4) (5) (6) Total Line Account No. Number Description (7) (8) Total Adjusted Adjusted Unit Power Utility Sales Utility Net of UPS Jurisdictional Jurisdictional Amount Separation Factor OTHER POWER GENERATION OPERATING EXPENSE: 2 3 546 Supervision 4 547 Energy 5 6 547 548 Fuel (Net) Generation 7 549 Miscellaneous 22 Total Operation 8 1,756 0.9720394 0.9712411 0 0 1,756 712 1,707 0 0 0 0 507 2,602 507 2,602 0 493 5,577 0 5,577 672 0 672 653 0.9720394 373 5,878 780 0 0 373 363 0.9720394 5,878 5,709 780 7,703 13,280 0 13,280 758 7,483 12,904 0.9712487 0.9717949 7,703 0 0 712 0 692 2,529 5,421 0.0000000 0.9720394 0.9720394 0.9720280 MAINTENANCE EXPENSE: 9 10 11 551 552 Supervision & Engineering Structures 12 553 Generating & Electric Equipment 13 14 554 Miscellaneous Total Maintenance Expense TOTAL OTHER POWER GENERATION 15 0.9714397 0.9716867 16 555 PURCHASED POWER 0 0 0 0 0.0000000 17 556 SYSTEM CONTROL & LOAD DISPATCH 1,987 0 1,987 1,931 0.9718168 18 557 OTHER EXPENSES 2,423 0 2,423 2,355 0.9720394 124,830 2,675 122,155 118,699 0.9717081 Supervision & Engineering 2,419 0 2,419 2,351 0.9718892 Load Dispatching Station Expenses 3,793 0 3,687 0.9720394 45 44 0.9777778 Overhead Lines Underground Lines Transmission of Elec. 219 0 (264) 1,462 1,269 0 0 3,793 45 219 213 0 (264) 1,462 1,269 8,943 0 (257) 1,421 1,234 8,693 0.9726027 0.0000000 0.9734848 0.9719562 19 TOTAL PRODUCTION 20 21 TRANSMISSION EXPENSE OPERATIONS: 22 23 24 560 561 562 25 26 563 564 27 28 29 565 566 567 30 Supporting Schedules: Miscellaneous Rents Total Operation 8,943 0 0 0 0 0 0.9724192 0.9720452 Recap Schedules: C-1, C-12 Schedule C-4 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI (1) (2) Line No. Account Number 2 3 4 5 6 7 568 569 570 571 573 (3) JURISDICTIONAL SEPARATION FACTORS- NET OPERATING INCOME Page 3 of 6 EXPLANATION: Provide jurisdictional factors for net Type of Data Shown: operating income for the test year, and the prior year if X Projected Test Year Ended 12/31/17 the test year is projected. Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: M. T. O'Sheasy ($000s) (5} (7) (4} (6} (8) Description Total Adjusted Utility Total Adjusted Unit Power Sales Utility Net of UPS Jurisdictional Jurisdictional Amount Separation Factor MAINTENANCE: Supervision & Engineering Structures Station Equipment Overhead Lines Miscellaneous Total Maintenance Expense 1,396 972 888 4,248 121 7,625 23 0 0 0 0 1,396 972 888 4,248 121 7,625 868 4,129 118 7,418 0.9727794 0.9722222 0.9774775 0.9719868 0.9752066 0.9728525 16,568 0 16,568 16,111 0.9724167 7,490 1,226 0 0 0 7,490 1,226 438 3,195 7,484 1,226 430 0.9991989 1.0000000 0.9817352 1.0000000 1.0000000 1.0000000 0.9992129 1.0000000 0.9989923 0.0000000 0.9991163 8 TOTAL TRANSMISSION 9 10 11 12 DISTRIBUTION EXPENSE OPERATION: Supervision & Engineering Load Dispatching Station Expenses Overhead Lines 438 3,195 Underground Lines Street Lighting Meters Customer Installations Miscellaneous Rents Total Operation 1'138 674 2,541 2,100 4,962 0 23,764 13 14 15 16 17 18 19 20 21 580 581 582 583 584 585 586 587 588 589 Supporting Schedules: 0 0 0 0 0 0 0 0 0 0 1'138 674 2,541 2,100 4,962 0 23,764 1,358 945 3,195 1'138 674 2,539 2,100 4,957 0 23,743 Recap Schedules: C-1 , C-12 Schedule C-4 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI JURISDICTIONAL SEPARATION FACTORS- NET OPERATING INCOME Page 4 of 6 EXPLANATION: Provide jurisdictional factors for net Type of Data Shown: operating income for the test year, and the prior year if X Projected Test Year Ended 12/31/17 the test year is projected. Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: M. T. O'Sheasy ($000s) (1) (2) (3) (4) (5) (6) Total Line No. Account 2 590 Supervision & Engineering 3 591 Structures 4 592 5 593 Station Equipment Overhead Lines 1'199 12,336 6 594 Underground Lines 1,640 0 0 1'1 06 624 0 0 Number Description (7) (8) Total Adjusted Adjusted Unit Power Utility Sales Utility Net of UPS Jurisdictional Jurisdictional Amount Separation Factor MAINTENANCE: 24 7 595 Line Transformers 8 596 Street Lighting 4,216 0 4,216 4,209 0.9983397 271 0 271 265 0.9778598 0 1'199 12,336 0.9816514 1,640 1'177 12,336 1,640 1'1 06 624 1'1 06 624 1.0000000 1.0000000 1.0000000 1.0000000 9 597 Meters 181 0 181 181 1.0000000 10 11 598 Miscellaneous 534 0 0 533 22,071 0.9981273 22,107 534 22,107 0.9983716 45,871 0 45,871 45,814 0.9987574 23,735 0 23,735 23,546 0.9920371 3,994 0 3,994 3,994 1.0000000 TOTAL GUST ACCTS EXP & UNCOLL EXP 27,729 0 27,729 27,540 0.9931840 CUSTOMER ASSISTANCE EXPENSE Supervision Customer Assistance 1,650 0 1,650 1,650 1.0000000 15,843 15,843 15,843 1.0000000 557 0 0 557 557 1.0000000 90 0 90 90 1.0000000 Total Maintenance Expense TOTAL DISTRIBUTION 12 13 14 15 901-905 CUSTOMER ACCOUNTS EXPENSE UNCOLLECTIBLE EXPENSE 904 16 17 18 19 20 21 22 23 24 907/911 908/912 909/913 910 Informational & Instructional Advertising Miscellaneous Energy Conservation Costs TOTAL CUSTOMER ASSISTANCE 920-932 ADMINISTRATIVE & GENERAL EXPENSE 904 LESS: UNCOLLECTIBLE EXPENSE 25 TOTAL A&G EXP LESS UNCOLL EXP 26 TOTAL OPERATION & MAINTENANCE EXP Supporting Schedules: 0 0 0 0 0.0000000 18,140 0 18,140 18,140 1.0000000 93,952 3,994 608 93,344 3,994 91,510 0.9803522 0 89,958 608 89,350 3,994 87,516 0.9794740 323,096 3,283 319,813 313,820 0.9812609 1.0000000 Recap Schedules: C-1 , C-12 Schedule C-4 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI JURISDICTIONAL SEPARATION FACTORS- NET OPERATING INCOME Page 5 of 6 EXPLANATION: Provide jurisdictional factors for net Type of Data Shown: operating income for the test year, and the prior year if X Projected Test Year Ended 12/31/17 the test year is projected. Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: M. T. O'Sheasy ($000s) (1) (2) (3) (4) (5) (6) Total Line Account No. Number 2 300-346 Description (7) (8) Total Adjusted Jurisdictional Adjusted Unit Power Utility Net Jurisdictional Separation Utility Sales of UPS Amount Factor DEPRECIATION EXPENSE PRODUCTION PLANT 52,471 1,946 50,525 49,112 0.9720336 TRANSMISSION PLANT 3 25 4 350 Easements & Rights-of-Way 191 0 191 186 0.9738220 5 352 Structures & Improvements 407 0 407 398 0.9778870 6 353 Station Equipment 7,265 30 7,235 7,070 0.9771942 7 354 Towers and Fixtures 765 0 765 744 0.9720394 11 '177 3,277 0 11 '177 3,277 10,864 0.9720394 0 3,185 0.9720394 244 0 244 237 0.9720394 8 355 Poles and Fixtures 9 356 Overhead Conductors and Devices 10 358 Underground Conductors and Devices 11 359 Roads and Trails TOTAL TRANSMISSION 12 13 5 0 5 5 0.9720394 23,331 30 23,301 22,689 0.9737350 4 0 4 4 1.0000000 516 0 516 504 0.9767442 0.9819901 DISTRIBUTION PLANT 14 360 Easements & Rights-of-Way 15 361 Structures and Improvements 16 362 Station Equipment 6,663 0 6,663 6,543 17 364 Poles, Towers and Fixtures 7,001 0 7,001 7,001 1.0000000 18 365 Overhead Conductors and Devices 5,647 0 5,647 5,647 1.0000000 13 0 13 13 1.0000000 3,898 0 3,898 3,898 1.0000000 19 366 Underground Conduits 20 367 Underground Conductors and Devices 21 368 Line Transformers 9,865 0 9,865 9,865 1.0000000 22 369 Services 3,980 0 3,980 3,980 1.0000000 23 370 Meters 4,573 0 4,573 4,564 0.9980319 24 373 Street Lighting 3,254 0 3,254 3,254 1.0000000 45,414 0 45,414 45,273 0.9968952 10,198 26 10,172 10,010 0.9840739 131,414 2,002 129,412 127,084 0.9820109 25 26 27 TOTAL DISTRIBUTION 389-398 GENERAL PLANT TOTAL DEPRECIATION Supporting Schedules: Recap Schedules: C-1, C-12 Schedule C-4 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI JURISDICTIONAL SEPARATION FACTORS- NET OPERATING INCOME Page 6 of 6 EXPLANATION: Provide jurisdictional factors for net Type of Data Shown: operating income for the test year, and the prior year if X Projected Test Year Ended 12/31/17 the test year is projected. Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: M. T. O'Sheasy ($000s) (1) (2) (3) (4) (5) (6) Total Adjusted (7) (8) Jurisdictional Unit Power Sales Utility Net of UPS Jurisdictional Amount Separation Factor Total Line No. 2 3 4 26 5 6 7 8 Account Number Adjusted Description 404 AMORT. OF INVESTMENT TAX CREDITS 407 OTHER AMORTIZATION 408 408 TAXES OTHER THAN INCOME TAXES Real and Personal Property Taxes Payroll Taxes Revenue Taxes 408 408 Other TOTAL TAXES OTHER THAN INCOME Utility (394) (61) (333) (327) 0.9819820 9,458 0 9,458 9,194 0.9720871 25,927 8,308 125 60 0 25,802 8,248 25,249 8,114 442 0.9785676 0.9837536 1.0000000 442 571 35,248 0 185 35,063 557 34,362 0.9754816 0.9800074 442 571 9 EXPENSES EXCLUDING INCOME TAXES 498,822 5,409 493,413 484,133 0.9811922 10 OPERATING INCOME BEFORE INC. TAXES 129,494 7,510 121,984 112,533 0.9225226 TOTAL INCOME TAXES 37,715 2,539 35,176 31,810 0.9043098 NET OPERATING INCOME 91,779 4,971 86,808 80,723 0.9299028 11 12 409 Supporting Schedules: Recap Schedules: C-1, C-12 Schedule C-5 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY OPERATING REVENUES DETAIL EXPLANATION: Provide a schedule of operating revenue by primary account for the test year. Provide the per books amounts and the adjustments required to adjust the per books amounts to reflect the requested test year operating revenues. DOCKET NO.: 160186-EI ( 1) Line No. (2) Acct No. (3) Account Title Page 1 of 3 Type of Data Shown: _X_Projected Test Year Ended 12/31/17 - -Prior Year Ended 12/31/16 - -Historical Year Ended 12/31/15 Witness: S. D. Ritenour {$000s} (4) Per Books (5) NonUtility (6) Electric Utility (4)-(5) {7~ (8} {9} Fuel PPCC ECCR Adjustments (10} \11 ~ Franchise ECRC Fees& GRT (12} {13} (14} UPS Other Total (7) thru (13) (15) Adjusted Total (6)-(14) SALES OF ELECTRICITY 27 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 440 442 442 444 445 446 448 Residential Sales Commercial Sales Industrial Sales Public Street & Highway Lighting Other Sales to Public Authorities Sales to Railroads & Railways Interdepartmental Sales Total Sales to Ultimate Consumers 447 Sales for Resale TOTAL SALES OF ELECTRICITY 449.1 (Less) Provision for Rate Refunds TOTAL REVENUE NET OF REFUND PROVISION 450 451 453 454 455 456 456 456 OTHER OPERATING REVENUES Forfeited Discounts Miscellaneous Service Revenues Sales of Water and Water Power Rent from Electric Property Interdepartmental Rents Deferred Fuel Revenue Unbilled Revenue Other Electric Revenues (In Detail) TOTAL OTHER OPERATING REVENUES TOTAL ELECTRIC OPERATING REVENUES Supporting Schedules: 704,102 401,899 149,101 5,020 704,102 401,899 149,101 5,020 186,669 137,751 59,379 815 48,451 24,032 12,480 24 6,479 4,852 2,105 30 105,932 54,659 28,951 102 17,618 10,055 3,731 127 365,149 231,349 106,646 1,098 338,953 170,550 42,455 3,922 1,260,122 175,799 1,435,921 1,260,122 175,799 1,435,921 384,614 123,931 508,545 84,987 347 85,334 13,466 31,531 13,466 189,644 5,954 195,598 31,531 12,919 12,919 704,242 143,151 847,393 555,880 32,648 588,528 1,435,921 1,435,921 508,545 85,334 13,466 195,598 31,531 12,919 847,393 588,528 46,223 46,223 40,583 5,640 7,004 7,004 13,986 67,213 13,986 67,213 1,503,134 1,503,134 (1 ,184) 41,767 7,004 (239~ 41,767 508,545 85,334 13,466 195,598 73,298 12,919 (1,423} (239} 40,344 14,225 26,869 (1,423} 887,737 615,397 Recap Schedules: C-1, C-2, C-21 Schedule C-5 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY OPERATING REVENUES DETAIL EXPLANATION: Provide a schedule of operating revenue by primary account for the test year. Provide the per books amounts and the adjustments required to adjust the per books amounts to reflect the requested test year operating revenues. DOCKET NO.: 160186-EI (1) Line No. (2) Acct No. (3) Account Title Page 2 of 3 Type of Data Shown: _ _ Projected Test Year Ended 12/31/17 _X_ Prior Year Ended 12/31/16 - -Historical Year Ended 12/31/15 Witness: S. D. Ritenour {$000s} (4) Per Books (5) NonUtility (6) Electric Utility {4)-(5) {7} {8} {9} Fuel PPCC ECCR Adjustments {10} {11} Franchise ECRC Fees & GRT {12} {13} UPS Other {14} Total mthru {13) (15) Adjusted Total {6)-{14) SALES OF ELECTRICITY 28 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 440 442 442 444 445 446 448 Residential Sales Commercial Sales Industrial Sales Public Street & Highway Lighting Other Sales to Public Authorities Sales to Railroads & Railways Interdepartmental Sales Total Sales to Ultimate Consumers 447 Sales for Resale TOTAL SALES OF ELECTRICITY 449.1 (Less) Provision for Rate Refunds TOTAL REVENUE NET OF REFUND PROVISION 450 451 453 454 455 456 456 456 OTHER OPERATING REVENUES Forfeited Discounts Miscellaneous Service Revenues Sales of Water and Water Power Rent from Electric Property Interdepartmental Rents Deferred Fuel Revenue Unbilled Revenue Other Electric Revenues (In Detail) TOTAL OTHER OPERATING REVENUES TOTAL ELECTRIC OPERATING REVENUES Supporting Schedules: 672,667 390,933 146,596 4,646 672,667 390,933 146,596 4,646 157,740 128,679 56,206 808 48,693 24,151 12,543 25 6,326 4,744 2,084 30 108,848 55,989 29,611 100 16,814 9,771 3,664 116 1,214,842 134,186 1,349,028 1,214,842 134,186 1,349,028 343,433 86,631 430,064 85,412 242 85,654 13,184 30,365 13,184 194,548 6,030 200,578 1,349,028 1,349,028 430,064 85,654 13,184 200,578 44,587 44,587 6,749 6,749 19,479 19,479 19,479 13,628 84,443 13,628 84,443 19,479 1,433,471 1,433,471 449,543 338,421 223,334 104,108 1,079 334,246 167,599 42,488 3,567 30,365 18,651 18,651 666,942 111,554 778,496 547,900 22,632 570,532 30,365 18,651 778,496 570,532 40,115 4,472 40,115 6,749 19,479 40,115 85,654 13,184 200,578 70,480 18,651 59,594 13,628 24,849 838,090 595,381 Recap Schedules: C-1, C-2, C-21 Schedule C-5 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY OPERATING REVENUES DETAIL EXPLANATION: Provide a schedule of operating revenue by primary account for the test year. Provide the per books amounts and the adjustments required to adjust the per books amounts to reflect the requested test year operating revenues. DOCKET NO.: 160186-EI (1) Line No. (2) Acct No. (3) Account Title Page 3 of 3 Type of Data Shown: _ _ Projected Test Year Ended 12/31/17 - -Prior Year Ended 12/31/16 _X_Historical Year Ended 12/31/15 Witness: S. D. Ritenour {$000s} (4) Per Books (5) NonUtility (6) Electric Utility (4)-(5) ~n ~8~ ~9~ Fuel PPCC ECCR Adjustments {1 0~ ~11 ~ Franchise ECRC Fees & GRT {12~ {13~ {14~ UPS Other Total (7) thru (13) (15) Adjusted Total (6)-(14) SALES OF ELECTRICITY 29 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Residential Sales Commercial Sales Industrial Sales Public Street & Highway Lighting Other Sales to Public Authorities Sales to Railroads & Railways Interdepartmental Sales Total Sales to Ultimate Consumers 447 Sales for Resale TOTAL SALES OF ELECTRICITY 449.1 (Less) Provision for Rate Refunds TOTAL REVENUE NET OF REFUND PROVISION 440 442 442 444 445 446 448 450 451 453 454 455 456 456 456 OTHER OPERATING REVENUES Forfeited Discounts Miscellaneous Service Revenues Sales of Water and Water Power Rent from Electric Property Interdepartmental Rents Deferred Fuel Revenue Unbilled Revenue Other Electric Revenues (In Detail) TOTAL OTHER OPERATING REVENUES TOTAL ELECTRIC OPERATING REVENUES Supporting Schedules: 734,381 428,738 155,363 4,642 734,381 428,738 155,363 4,642 233,071 167,790 74,908 1,088 48,977 26,216 10,017 31 10,752 9,346 4,075 56 86,135 48,594 19,208 105 18,424 10,758 3,898 116 1,323,124 166,436 1,489,560 1,323,124 166,436 1,489,560 476,857 85,151 562,008 85,241 411 85,652 24,229 33,196 24,229 154,042 4,085 158,127 {446~ {446~ 1,489,114 1,489,114 562,008 85,652 24,229 158,127 49,572 49,572 6,450 6,450 (59,486) (59,486) (59,486) {2,644} {6, 108} {2,644~ {6,108} 102 {59,384} 1,483,006 1,483,006 397,359 262,704 112,106 1,396 337,022 166,034 43,257 3,246 33,196 58,803 58,803 773,565 148,450 922,015 549,559 17,986 567,545 33,196 58,803 922,015 567,099 44,094 5,478 {446~ 44,094 6,450 502,624 (59,486) 656 656 86,308 {6,250~ {6,250} {10,311} {10,311} 44,094 31 31 17,979 147,816 77,290 58,834 {15,772~ {31,164} 890,851 Recap Schedules: C-1, C-2, C-21 13,128 25,056 592,155 BUDGETED VERSUS ACTUAL OPERATING REVENUES AND EXPENSES Schedule C-6 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY Type of Data Shown: _lL Projected Test Year Ended 12/31/17 _lL Prior Year Ended 12/31/16 _lL Historical Years Ended 12/31/11 through 12/31/15 Witness: J. J. Mason, J. J. Hodnett, M. L. Burroughs, W. E. Smith, B. C. Terry (1 0) (11) (12) (13) (9) EXPLANATION: If the test year is PROJECTED, provide the budgeted versus actual operating revenues and expenses by primary account for a historical five year period and the forecasted data for the test year and the prior year. DOCKET NO.: 160186-EI (1) Line Acct. No. ($000s) (6) (3) (4) (5) Account 2017 2016 Title Budget Budget (2) No. (7) (8) Actual Budget Actual Budget Actual 20i5 Budget Page 1 of 12 2014 2013 2012 Budget Actual Operating Revenues 30 2 440 Residential Sales (704, 103) (672,667) (734,356) (734,381) (695,316) (697,244) (629,409) (600, 797) (649, 156) (603,349) 3 442 Commercial & Industrial Sales (551 ,002) (537,529) (584, 126) (584, 101) (584,785) (557,393) (573,393) (500, 131) (550,830) (525,299) (5,021) (4,646) (4,642) (4,642) (6,029) (4,502) (5,813) (3,734) (5,829) (4,577) (175,798) (134, 186) (166,436) (166,436) (178,539) (258,871) (206,423) (206,772) (198,036) (231 ,088) (46,223) (44,588) (49,572) (49,572) (47,306) (47,461) (44,080) (41,891) (42,487) (42,184) (7,004) (6,749) (6,450) (6,450) (7,450) (6,297) (6,227) (7,304) (5,983) (6,897) 4 444 Public Street & Highway Lighting 5 445 Other Sales to Public Authorities 6 447 Sales for Resale 7 448 Interdepartmental Sales 8 449 (Less) Provision for Rate Refund 9 451 10 454 Rent from Electric Property 11 455 Interdepartmental Rent 12 456 Other Electric Revenues Mise Service Revenues 13 Total Operating Revenues 14 Production Expenses 15 500 Operation,Supervision & Engineering 16 501 17 502 Steam Expenses Fuel Expense 18 505 Electric Expense 19 506 Mise Steam Power Expense 20 507 Rents 21 509 Allowances 22 546 Operation,Supervision & Engineering 23 547 Fuel Expense- Other Production 24 548 Generation Expenses 25 549 Mise Other Power Generation Expense 26 Total Production Operation 27 Totals may not add due to rounding. Supporting Schedules: 121 446 (13,983) (33, 107) (1 ,503, 134) (1 ,433,470) 62,576 (1 ,483,006) 62,130 ( 1,483,006) 956 (1 ,518,469) (88) 1,242 (18,941) (42,395) (79,693) (4,860) (27,744) (1 ,590,588) (1 ,507,740) (1,440,410) (1,457,181) (1,439,896) 12,607 11,789 12,240 13,277 10,723 10,629 10,602 9,106 11,114 7,946 180,720 151,346 238,540 195,517 248,523 302,964 299,180 237,595 290,406 266,472 19,777 17,727 19,819 i6,749 19,675 17,683 20,076 15,702 19,303 16,861 3,777 3,676 4,109 3,933 3,957 3,867 4,105 3,436 3,733 3,404 35,040 38,742 20,853 21,863 22,170 22,832 18,038 19,908 17,974 20,092 18 69 659 288 699 1,461 1,023 971 2,464 1,268 1,770 2,224 1,436 872 1,846 895 1,687 886 1,789 875 307,594 261,214 293,735 249,036 293,751 300,215 291,863 294,179 246,283 277,056 507 553 546 880 638 1' 101 554 1,045 573 913 2,633 4,598 831 1,473 1,006 620 826 576 776 666 564,443 491,938 592,768 503,888 602,988 662,267 647,953 583,404 594,416 595,553 Recap Schedules: C-9 Schedule C-6 BUDGETED VERSUS ACTUAL OPERATING REVENUES AND EXPENSES FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY EXPLANATION: If the test year is PROJECTED, provide the budgeted versus actual operating revenues and expenses by primary account for a historical five year period and the forecasted data for the test year and the prior year. DOCKET NO.: 160186-EI ($000s) (1) {2) (3) Line Acct. No. (4) Title Type of Data Shown: _lL Projected Test Year Ended 12/31/17 _lL Prior Year Ended 12/31/16 _lL Historical Years Ended 12/31/11 through 12/31/15 Witness: J. J. Mason, J. J. Hodnett, M. L. Burroughs, W. E. Smith, B. C. Terry (5) Account No. Page 2 of 12 2011 Budget Actual OQerating Revenues 2 440 Residential Sales (684,009) (649,414) 3 442 Commercial & Industrial Sales (617,291) (579,217) 4 444 Public Street & Highway Lighting (6,287) (4,436) 5 445 Other Sales to Public Authorities (190,396) (245,741) 31 6 447 Sales for Resale 7 448 Interdepartmental Sales 8 449 (Less) Provision for Rate Refund Mise Service Revenues 9 451 10 454 Rent from Electric Property 11 455 Interdepartmental Rent 12 456 Other Electric Revenues 13 Total Operating Revenues 14 Production ExQenses 15 500 Operation,Supervision & Engineering 16 501 17 502 Steam Expenses Fuel Expense 18 505 Electric Expense 19 506 Mise Steam Power Expense 20 507 Rents 21 509 Allowances 22 546 Operation,Supervision & Engineering 23 547 Fuel Expense- Other Production 24 548 Generation Expenses 25 549 Mise Other Power Generation Expense 26 Total Production Operation 27 Totals may not add due to rounding. Supporting Schedules: 525 (43,652) (44,940) (5,699} (5,782) (5,152) 9,052 (1 ,552,486) (1,519,953) 10,789 7,939 506,276 401,397 24,367 14,446 4,662 3,505 19,035 21,722 3,980 402 887 154,325 256,838 689 784 768 749 721,313 712,247 Recap Schedules: C-9 BUDGETED VERSUS ACTUAL OPERATING REVENUES AND EXPENSES Schedule C-6 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY EXPLANATION: If the test year is PROJECTED, provide the budgeted versus actual operating revenues and expenses by primary account for a historical five year period and the forecasted data for the test year and the prior year. Type of Data Shown: _lL Projected Test Year Ended 12/31/17 _lL Prior Year Ended 12/31/16 _lL Historical Years Ended 12/31/11 through 12/31/15 Witness: J. J. Mason, J. J. Hodnett, M. L. Burroughs, W. E. Smith, B. C. Terry DOCKET NO.: 160186-EI ($000s) (1) (2) Line Acct. No. (3) (4) (5) Account 2017 2016 Title Budget Budget No. 510 Maintenance, Supervision & Engineering Page 3 of 12 (6) (8) (7) Budget (1 0) (9) 2015 (11) 2014 Budget Actual (13) (12) 2013 Budget Actual 2012 Actual Budget 11,532 8,828 9,406 6,885 8,407 8,140 9,240 7,206 9,086 Actual 6,413 2 511 Maintenance of Structures 6,375 6,557 8,422 7,917 7,949 7,712 6,539 5,900 6,390 6,674 3 512 Maintenance of Boiler Plant 39,172 31,901 38,400 34,393 38,841 40,788 24,762 23,483 33,399 28,811 32 4 513 Maintenance of Electric Plant 9,870 7,132 10,170 7,691 7,961 5,241 5,149 4,648 15,910 11,504 5 514 Maintenance of Mise Steam Plant 3,705 3,580 4,359 4,927 4,105 4,972 3,517 4,685 2,619 6,166 6 551 Maint.,Supervision & Engineering-Other 672 679 50 19 48 77 288 75 349 68 7 552 Maintenance of Structures 373 388 229 529 173 138 77 237 8 553 Maint.of Generation & Elec.Equip. 5,878 8,123 7,744 8,366 5,755 5,919 7,334 7,350 5,158 6,529 9 554 Maint.of Misc.Other Power Gen.Piant 832 1,481 605 425 127 264 205 (65) 224 104 78,408 68,669 79,155 70,852 73,723 73,286 57,033 53,420 73,213 66,506 101 '155 115,142 114,389 135,098 92,805 107,239 73,216 85,278 83,775 74,086 10 Total Production Maintenance 11 555 Purchased & Interchanged Power 12 556 System Control & Load Dispatch 1,958 1,891 1,925 1,996 1,759 1,760 1,640 1,657 1,703 1,562 13 557 Other Production Expenses 2,733 2,663 2,334 2,427 2,101 2,132 2,195 2,005 2,591 2,313 14 Total Other Power Supply 105,846 119,696 118,649 139,521 96,665 111,131 77,051 88,940 88,069 77,961 15 Total Production 748,697 680,302 790,572 714,261 773,376 846,684 782,038 725,764 755,698 740,020 16 Transmission Expenses 17 560 Operation Supervision & Engineering 2,431 2,303 1'711 1,636 1,448 1,401 1,510 1,311 1,664 1,606 18 561 Load Dispatching 3,882 3,647 3,598 3,092 3,217 3,113 3,366 2,855 3,439 2,920 19 562 Station Expenses 45 45 47 55 61 51 43 54 296 84 219 190 166 11 165 47 144 46 20 563 Overhead Line Expenses 21 564 Underground Line Expenses 22 565 Trans-Trans of Elec by Others 23 566 Misc.Transmission Expenses 24 567 Rents 25 Total Operation 26 Totals may not add due to rounding. Supporting Schedules: 219 160 160 219 85 113 188 102 150 24 153 1,462 1,420 1,097 1,449 1,041 1,222 981 1'151 1'103 1,274 12,795 13,127 13,709 13,717 13,044 13,026 9,812 10,396 6,106 5,508 20,994 20,921 20,571 20,034 19,089 19,012 15,980 15,964 12,776 11,591 Recap Schedules: C-9 BUDGETED VERSUS ACTUAL OPERATING REVENUES AND EXPENSES Schedule C-6 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY EXPLANATION: If the test year is PROJECTED, provide the budgeted versus actual operating revenues and expenses by primary account for a historical five year period and the forecasted data for the test year and the prior year. DOCKET NO.: 160186-EI ($000s) (1) (2) (3) No. No. Title Budget Actual 510 Maintenance,Supervision & Engineering 9,292 2 511 Maintenance of Structures 5,386 6,145 3 512 Maintenance of Boiler Plant 36,227 38,987 4 513 Maintenance of Electric Plant 11,705 11' 128 5 514 Maintenance of Mise Steam Plant 2,554 4,196 6 551 Maint.,Supervision & Engineering-Other 33 552 Maintenance of Structures 8 553 Maint.of Generation & Elec. Equip. 9 554 Maint.of Misc.Other Power Gen.Piant 10 Total Production Maintenance 6,260 673 29 3 131 4,861 6,846 425 157 71 '126 73,879 109,667 90,494 11 555 Purchased & Interchanged Power 12 556 System Control & Load Dispatch 1,865 1,677 13 557 Other Production Expenses 2,555 2,141 14 Total Other Power Supply 114,087 94,312 15 Total Production 906,525 880,438 16 Witness: J. J. Mason, J. J. Hodnett, M. L. Burroughs, W. E. Smith, B. C. Terry 2011 1 7 Type of Data Shown: _lL Projected Test Year Ended 12/31/17 _lL Prior Year Ended 12/31/16 _lL Historical Years Ended 12/31/11 through 12/31/15 (5) (4) Account Line Acct. Page 4 of 12 Transmission Exgenses 17 560 Operation Supervision & Engineering 1,089 1,068 18 561 Load Dispatching 3,455 2,901 19 562 Station Expenses 237 20 563 Overhead Line Expenses 248 1'198 21 564 Underground Line Expenses 300 77 (709) 22 565 Recoverable Energy Expenses 23 566 Misc.Transmission Expenses 1,633 1'193 24 567 Rents 2,521 2,497 9,483 8,225 25 Total Operation 26 Totals may not add due to rounding. Supporting Schedules: Recap Schedules: C-9 Schedule C-6 BUDGETED VERSUS ACTUAL OPERATING REVENUES AND EXPENSES FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY EXPLANATION: If the test year is PROJECTED, provide the budgeted versus actual operating revenues and expenses by primary account for a historical five year period and the forecasted data for the test year and the prior year. Type of Data Shown: _x_ Projected Test Year Ended 12/31/17 _x_ Prior Year Ended 12/31/16 _x_ Historical Years Ended 12/31/11 through ($000s) ( 1) No. (3) (4) (5) Account 2017 2016 Title Budget Budget (2) No. 12/31/15 Witness: J. J. Mason, J. J. Hodnett, M. L. Burroughs, W. E. Smith, B. C. Terry DOCKET NO.: 160186-EI Line Acct. Page 5 of 12 (7) (6) (8) Budget (1 0) (9) 2015 (11) 2014 Actual Budget (12) 2013 Budget Actual (13) 2012 Actual Budget Actual 1,405.66 1,347 844 739 871 726 1,005 712 1,029 869 2 569 Maintenance of Structures 972.40 904 1,045 719 812 700 788 521 721 488 3 570 Maintenance of Substation Equipment 887.88 915 1,030 834 908 1,015 814 740 871 738 4,247.95 4,340 4,208 3,377 4,493 3,683 3,290 2,748 2,645 2,823 568 Maintenance,Supervision & Engineering 34 4 571 5 572 Maintenance of Underground Lines 6 573 Maint.of Misc.Transmission Lines Maint.of Overhead Lines 11 121 121 116 104 106 84 112 19 113 89 139 95 7 Total Maintenance 7,635 7,628 7,242 5,773 7,190 6,219 6,010 4,829 5,404 5,125 8 Total Transmission 28,629 28,550 27,813 25,807 26,279 25,231 21,990 20,793 18,181 16,716 9 Distribution Expenses 10 580 Operation Supervision & Engineering 8,506 6,697 6,489 6,349 6,425 6,241 6,257 5,551 5,748 5,314 11 581 Load Dispatching 1,226 1' 181 1,206 845 1'100 776 865 700 771 693 12 582 Station Expenses 439 439 410 477 327 359 307 346 419 287 3,395 3,437 3,749 3,025 2,762 2,990 2,719 3,125 2,708 3,086 1'138 1'103 657 1,096 735 1,093 741 771 886 873 674 674 651 624 607 581 598 550 595 546 13 583 Overhead Line Expenses 14 584 Underground Line Expenses 15 585 Street Lighting & Signal System Exp 16 586 Meter Expenses 2,541 2,535 2,608 2,470 2,935 2,439 2,658 2,223 3,538 2,756 17 587 Customer Installation Expense 2,100 2,104 2,166 1,867 1,490 1,726 1,383 1,486 1,108 969 18 588 Misc.Distribution Expense 4,987 5,365 4,528 4,449 4,264 4,242 4,301 4,164 4,247 4,130 19 589 Rents 25,006 23,536 22,464 21,202 20,646 20,447 19,829 18,916 20,019 18,654 20 Total Operation 21 Totals may not add due to rounding. Supporting Schedules: Recap Schedules: C-9 BUDGETED VERSUS ACTUAL OPERATING REVENUES AND EXPENSES Schedule C-6 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY EXPLANATION: If the test year is PROJECTED, provide the budgeted versus actual operating revenues and expenses by primary account for a historical five year period and the forecasted data for the test year and the prior year. Page 6 of 12 Type of Data Shown: _lL Projected Test Year Ended 12/31/17 _lL Prior Year Ended 12/31/16 _lL Historical Years Ended 12/31/11 through 12/31/15 DOCKET NO.: 160186-EI ($000s) ( 1) (3) (2) (5) 2011 Account Line Acct. No. (4) Title No. 568 Maintenance,Supervision & Engineering 35 2 569 Maintenance of Structures 3 570 Maintenance of Substation Equipment 4 571 Maint.of Overhead Lines 5 572 Maintenance of Underground Lines 6 573 Maint.of Misc.Transmission Lines Budget Actual 1,021 774 572 543 847 1,585 2,351 3,822 15 144 106 7 Total Maintenance 4,935 6,845 8 Total Transmission 14,419 15,070 5,941 5,348 745 732 9 Witness: J. J. Mason, J. J. Hodnett, M. L. Burroughs, W. E. Smith, B. C. Terry Distribution Exgenses 10 580 Operation Supervision & Engineering 11 581 Load Dispatching 12 582 Station Expenses 13 583 Overhead Line Expenses 14 584 Underground Line Expenses 15 585 Street Lighting & Signal System Exp 16 586 Meter Expenses 17 587 Customer Installation Expense 18 588 Misc. Distribution Expense 19 589 Rents 20 Total Operation 21 Totals may not add due to rounding. Supporting Schedules: 447 251 2,805 3,041 860 898 594 662 3,668 3,153 728 816 4,829 4,581 22 20,640 19,482 Recap Schedules: C-9 Schedule C-6 BUDGETED VERSUS ACTUAL OPERATING REVENUES AND EXPENSES FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY EXPLANATION: If the test year is PROJECTED, provide the budgeted versus actual operating revenues and expenses by primary account for a historical five year period and the forecasted data for the test year and the prior year. Type of Data Shown: _lL Projected Test Year Ended 12/31/17 _lL Prior Year Ended 12/31/16 _lL Historical Years Ended 12/31/11 through 12/31/15 DOCKET NO.: 160186-EI Witness: J. J. Mason, J. J. Hodnett, M. L. Burroughs, W. E. Smith, B. C. Terry ($000s) (1) No. (3) (4) (5) Account 2017 2016 Title Budget Budget (2) Line Acct. No. Page 7 of 12 (6) (7) (8) Budget (1 0) (9) 2015 (11) 2014 Actual Budget (12) (13) 2013 Actual Budget 2012 Actual Budget Actual 1 590 Maintenance,Supervision & Engineering 4,461 3,877 3,756 3,707 3,502 3,589 3,393 3,224 3,103 2,929 2 591 Maintenance of Structures 3,828 4,253 4,230 4,825 2,886 5,360 2,253 3,503 2,141 2,710 3 592 Maintenance of Substation Equipment 1'199 1,185 1'173 1'128 885 1,078 952 751 1,033 998 36 4 593 Maint.of Overhead Lines 12,336 12,374 12,669 10,931 13,715 12,400 12,630 12,650 12,538 11,245 5 594 Maintenance of Underground Lines 1,640 1,641 1,634 1,551 1,826 1,803 1,902 1,797 1,789 2,138 6 595 Maint.of Line Transformers 1,338 1,236 1,037 1'150 1'140 1,053 1,087 1,061 880 905 7 596 Maint.of Street Lighting & Signal Sys. 624 624 570 531 582 557 599 437 599 547 8 597 Maintenance of Meters 181 180 184 166 163 156 158 153 155 160 9 598 Maint.of Misc.Distribution Plant 534 534 509 486 490 400 531 424 499 420 26,141 25,904 25,762 24,475 25,190 26,396 23,504 24,000 22,737 22,052 51' 147 49,440 48,225 45,677 45,835 46,843 43,333 42,916 42,757 40,706 748 741 770 772 641 716 604 554 429 506 1,229 1,075 1,520 1,226 1,000 1,565 10 Total Maintenance 11 Total Distribution 12 Customer Accounts Expenses 13 901 Customer Accounts Supervision 14 902 Meter Reading Expenses 15 903 Customer Records & Collection Expense 16 17 18 19 1'191 1'183 1'164 1,051 20,981 19,688 19,295 19,318 19,048 17,874 17,829 16,311 17,479 15,332 904 Uncollectible Accounts 3,994 3,892 3,179 2,041 2,979 4,304 3,233 1,900 3,508 2,611 905 Misc.Customer Accounts Expense 1,755 1,558 1,563 1,448 1,484 1,452 1,412 1,304 1,287 1'186 28,670 27,063 25,970 24,630 25,381 25,421 24,598 21,295 23,704 21,200 Total Customer Accounts Customer Service & Information 20 907 Cust.Srv. & Information Supervision 1,668 1,639 1,752 1,454 1,831 1,626 1,877 1,606 1,927 1,650 21 908 Customer Assistance Expense 23,645 23,231 32,007 27,523 31,334 23,318 33,818 33,100 34,131 34,961 22 909 Information & Institutional Adv. 1,273 1,283 1,618 1,050 1,624 803 2,283 1,209 2,251 1,131 23 910 Misc. Customer Service & Info Exp. 89 86 72 72 83 73 187 77 85 75 24 Total Customer Serv. & Information 26,675 26,239 35,449 30,099 34,871 25,820 38,166 35,992 38,394 37,817 25 Totals may not add due to rounding. Supporting Schedules: Recap Schedules: C-9 BUDGETED VERSUS ACTUAL OPERATING REVENUES AND EXPENSES Schedule C-6 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY EXPLANATION: If the test year is PROJECTED, provide the budgeted versus actual operating revenues and expenses by primary account for a historical five year period and the forecasted data for the test year and the prior year. DOCKET NO.: 160186-EI ($000s) (1) (2) (3) No. (4) No. Title 590 Maintenance,Supervision & Engineering Maintenance of Structures 2 591 3 592 Maintenance of Substation Equipment Budget Actual 3,538 3,003 2,001 2,170 1,035 1,338 12,086 13,000 1,792 2,071 37 4 593 Maint.of Overhead Lines 594 Maintenance of Underground Lines 6 595 Maint.of Line Transformers 871 1,069 7 596 Maint.of Street Lighting & Signal Sys. 598 515 8 597 Maintenance of Meters 134 154 9 598 Maint.of Misc.Distribution Plant 464 489 10 Total Maintenance 22,517 23,809 11 Total Distribution 43,157 43,291 12 Customer Accounts Exgenses 387 430 Customer Accounts Supervision 901 14 902 Meter Reading Expenses 15 903 Customer Records & Collection Expense 16 904 Uncollectible Accounts 17 905 Misc.Customer Accounts Expense 18 Total Customer Accounts 19 Customer Service & Information 2,629 2,208 16,151 14,411 4,306 3,333 1,295 1,322 24,767 21,704 20 907 Cust.Srv. & Information Supervision 3,240 1,736 21 908 Customer Assistance Expense 31 '107 26,374 22 909 Information & Institutional Adv. 1,788 1,913 75 65 36,210 30,088 23 910 Misc.Customer Service & Info Exp. 24 Total Customer Serv. & Information 25 Totals may not add due to rounding. Supporting Schedules: Witness: J. J. Mason, J. J. Hodnett, M. L. Burroughs, W. E. Smith, B. C. Terry (5) 5 13 Type of Data Shown: _lL Projected Test Year Ended 12/31/17 _lL Prior Year Ended 12/31 /16 _lL Historical Years Ended 12/31/11 through 12/31/15 2011 Account Line Acct. Page 8 of 12 Recap Schedules: C-9 Schedule C-6 BUDGETED VERSUS ACTUAL OPERATING REVENUES AND EXPENSES FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY EXPLANATION: If the test year is PROJECTED, provide the budgeted versus actual operating revenues and expenses by primary account for a historical five year period and the forecasted data for the test year and the prior year. Type of Data Shown: _x_ Projected Test Year Ended 12/31/17 _x_ Prior Year Ended 12/31/16 _x_ Historical Years Ended 12/31/11 ($000s) {1) (3) (4) (5) Account 2017 2016 Title Budget Budget (2) No. No. 2 911 through 12/31/15 Witness: J. J. Mason, J. J. Hodnett, M. L. Burroughs, W. E. Smith, B. C. Terry DOCKET NO.: 160186-EI Line Acct. Page 9 of 12 (7) (6) (8) Budget {1 0) (9) 2015 2014 Actual Budget (11) (12) 2013 Actual Budget (13) 2012 Actual Budget Actual Sales Expenses Sales Supervision 3 912 Demonstration & Selling Expense 4 913 Advertising & Promotional Expense Total Sales Expense 5 38 1,398 1,386 1,333 1,391 1,526 1,460 1,378 1'186 1,082 993 1,398 1,386 1,333 1,391 1,526 1,460 1,378 1'186 1,082 993 20,407 19,821 18,619 19,188 16,481 18,405 15,899 15,353 14,566 15,102 4,304 4,132 3,988 4,037 3,156 3,940 3,702 Administrative & General Expenses 6 7 920 Administrative & General Salaries 8 921 Office Supplies & Expenses 9 922 Admin.Expense Transferred (Credit) 10 923 Outside Services Employed 11 4,532 4,460 3,629 (397) (385) (315) (369) (304) (322) (333) (298) (320) (331) 19,640 19,063 18,742 18,008 17,698 17,302 18,163 16,235 19,724 17,760 924 Property Insurance 8,217 7,678 8,383 7,600 7,897 7,722 7,487 7,425 7,535 7,262 12 925 Injuries & Damages 3,249 3,199 3,348 3,429 3,198 3,043 3,117 2,996 3,001 2,923 13 926 Employee Pension & Benefits 20,072 21,269 24,776 25,199 22,766 21,029 25,880 25,400 23,332 20,273 14 927 Franchise Requirements 15 928 Regulatory Commission Expense 1,426 3,848 2,973 5,458 2,168 2,804 16 929 Duplicate Charges (Credit) (1 '138) (930) (982) 17 930 Misc.General & Advertising Expenses 18 931 19 Rents Total Operation (935) (871) 10,060 12,629 (871) 9,921 8,832 8,466 8,202 2,091 1,686 1,940 (1,027) (1 '107) (865) (1,357) 2,532 9,320 7,825 (536) 7,047 264 258 285 235 278 268 388 383 325 361 86,307 90,640 89,850 90,974 82,178 81,100 85,023 79,054 72,641 75,274 20 935 Admin.& General Maintenance 742 739 741 616 690 640 724 1,044 605 621 21 Total Administrative & General 87,049 91,379 90,591 91,590 82,868 81,740 85,747 80,098 73,246 75,895 22 Total Operation & Maintenance 972,265 904,358 1,019,953 933,455 990,136 1,053,199 997,250 928,044 953,061 933,347 23 Totals may not add due to rounding. Supporting Schedules: Recap Schedules: C-9 BUDGETED VERSUS ACTUAL OPERATING REVENUES AND EXPENSES Schedule C-6 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY EXPLANATION: If the test year is PROJECTED, provide the budgeted versus actual operating revenues and expenses by primary account for a historical five year period and the forecasted data for the test year and the prior year. Page 10 of 12 Type of Data Shown: _lL Projected Test Year Ended 12/31/17 _lL Prior Year Ended 12/31/16 _lL Historical Years Ended 12/31/11 through 12/31/15 DOCKET NO.: 160186-EI ($000s) (1) (2) (3) Line Acct. No. (4) (5) Account No. Title Witness: J. J. Mason, J. J. Hodnett, M. L. Burroughs, W. E. Smith, B. C. Terry 2011 Budget Actual Sales Expenses 2 911 Sales Supervision 3 912 Demonstration & Selling Expense 4 913 Advertising & Promotional Expense Total Sales Expense 5 39 1,085 1,149 1,085 1'149 14,360 14,225 3,926 5,338 Administrative & General Expenses 6 7 920 Administrative & General Salaries 8 921 Office Supplies & Expenses 9 922 Admin.Expense Transferred (Credit) 10 923 Outside Services Employed (324) (311) 19,840 18,605 11 924 Property Insurance 7,397 7,008 12 925 Injuries & Damages 2,869 2,893 13 926 Employee Pension & Benefits 18,730 15,287 14 927 Franchise Requirements 15 928 Regulatory Commission Expense 1,284 2,003 (1,065) (1 ,211) 7,797 7,592 16 929 Duplicate Charges (Credit) 17 930 Misc.General & Advertising Expenses 18 931 19 20 Rents Total Operation 935 Admin.& General Maintenance 325 320 75,140 71,749 515 786 21 Total Administrative & General 75,655 72,535 22 Total Operation & Maintenance 1,101,818 1,064,275 23 Totals may not add due to rounding. Supporting Schedules: Recap Schedules: C-9 Schedule C-6 BUDGETED VERSUS ACTUAL OPERATING REVENUES AND EXPENSES FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY EXPLANATION: If the test year is PROJECTED, provide the budgeted versus actual operating revenues and expenses by primary account for a historical five year period and the forecasted data for the test year and the prior year. Page 11 of 12 Type of Data Shown: _lL Projected Test Year Ended 12/31/17 _lL Prior Year Ended 12/31/16 _lL Historical Years Ended 12/31/11 through 12/31/15 Witness: J. J. Mason, J. J. Hodnett, M. L. Burroughs, W. E. Smith, B. C. Terry DOCKET NO.: 160186-EI ($000s) (1) (2} Line Acct. No. No. (3} (4) (5) Account 2017 2016 Title Budget Budget (6) (7) (8) (9) 2015 Budget (1 0} 2014 Actual Budget (11) (12) 2013 Actual Budget (13} 2012 Actual Budget Actual Other OQerating ExQenses 40 2 403 Depreciation Expense 3 404 Amortization of Limited Plant 4 406 Amortization of Plant Acquisition Adj. 5 407 Amort. of Property Losses 6 408 Taxes Other than Income Taxes 7 169,661 165,519 154,566 155,157 147,968 146,485 144,379 142,701 136,266 134,778 7,056 7,005 6,711 7,281 6,237 6,734 6,184 6,186 6,261 6,237 0 1,213 1,213 1,213 115,277 113,124 116,709 117,720 409 Current Income Tax- Operating Inc./Loss 52,755 38,039 18,119 42,768 (9,014) 8 410 Provision for Deferred Income Tax 23,937 9 411 Provision for Deferred Income Tax (CR) (6,922) 10 411 Accretion 11 411 Investment Tax Credit (Net) 12 411 Gains from Disp. Of Utility Plant 13 411 Losses from Disp. Of Utility Plant 14 411 Gains from Disposition of Allowances 15 Total Other Operating Expenses 16 Totals may not add due to rounding. Supporting Schedules: (22, 107) 1,213 (7,456) 1,213 1,016 991 1'132 110,150 111,147 103,988 98,355 100,777 97,313 (25,772) 50,002 33,784 3,643 (92,575) (94,779) 95,596 763,543 115,657 65,821 178,474 181,457 297,298 (36, 110) (646,895) (77,011) (22,629) (101 ,382) (11 ,578) (122,977) 1,932 (394) (2) 362,581 (511) (5) 358,137 (702) (11 0) 355,991 (702) (111) 350,046 718 (1,272) (172) 264,124 (1,272) (172) 344,832 703 (1,304) (244) 331 '192 (1 ,352) (245) 328,099 508 (1,304) (264) 320,031 Recap Schedules: C-9 (1,352) (265) 317,893 Schedule C-6 BUDGETED VERSUS ACTUAL OPERATING REVENUES AND EXPENSES FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY EXPLANATION: If the test year is PROJECTED, provide the budgeted versus actual operating revenues and expenses by primary account for a historical five year period and the forecasted data for the test year and the prior year. Page 12 of 12 Type of Data Shown: _lL Projected Test Year Ended 12/31 /17 _lL Prior Year Ended 12/31/16 _lL Historical Years Ended 12/31/11 through 12/31/15 DOCKET NO.: 160186-EI ($000s) (1) (2) (3) No. (4) (5) Account Line Acct. No. Title Witness: J. J. Mason, J. J. Hodnett, M. L. Burroughs, W. E. Smith, B. C. Terry 2011 Budget Actual Other OQerating ExQenses 2 403 Depreciation Expense 3 404 Amortization of Limited Plant 4 406 Amortization of Plant Acquisition Adj. 5 407 Amort. of Property 125,315 124,093 5,793 5,817 324 673 41 6 408 Taxes Other than Income Taxes 102,166 101,302 7 409 Current Income Tax- Operating Inc./Loss (13,962) (15,612) 8 410 Provision for Deferred Income Tax 9 411 10 411 Accretion Provision for Deferred Income Tax (CR) Investment Tax Credit (Net) 11 411 12 411 Gains from Disp. Of Utility Plant 13 411 Losses from Disp. Of Utility Plant 14 411 Gains from Disposition of Allowances 15 Total Other Operating Expenses 16 Totals may not add due to rounding. Supporting Schedules: 93,981 (18,821) 177,591 (98,474) 545 (1,349) (108) 293,339 (1,349) (128) 294,458 Recap Schedules: C-9 Schedule C-7 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY OPERATION AND MAINTENANCE EXPENSES- TEST YEAR EXPLANATION: If the requested revenue requirements are based on a historical test year, provide actual monthly operation and maintenance expense by primary account for the test year. DOCKET NO.: 160186-EI (1) Page 1 of 1 Type of Data Shown: _x_ Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: S. D. Ritenour (2) Line No. Not applicable, requested revenue requirements are based on projected test year, not historical. 42 Supporting Schedules: Recap Schedules: Schedule C-8 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI (1) (2) DETAIL OF CHANGES IN EXPENSES EXPLANATION: Provide the changes in primary accounts that exceed 1/20th of one percent (.0005) of total operating expenses and ten percent from the prior year to the test year. Quantify each reason for the change. (3) (4) (5) (6) Page 1 of 1 Type of Data Shown: X Projected Test Year Ended 12/31/17 X Prior Year Ended 12/31/16 Historical Year Ended 12/31 /15 Witness: J. J. Hodnett, W. E. Smith M. L. Burroughs (7) (8) lncrease/(Decrease) 43 Line No. Acct. No. 2 3 4 5 6 7 8 9 10 11 12 13 501 502 510 512 513 547 549 553 554 555 580 928 930 Account Steam Power - Fuel Steam Power - Steam Expenses Steam Power Op.- Supervision & Engineering Steam Power Maintenance - Boiler Plant Steam Power Maintenance- Electric Plant Other Power Generation - Fuel Other Power Generation - Mise Expenses Other Power Generation - Maintenance Other Power Generation - Maintenance Purchased Power Distribution Operations - Supervision & Engineering Regulatory Commission Expenses Miscellaneous General Expenses 1: 2: 3: 4: Test Year Prior Year Ended 12/31/17 Ended 12/31/16 180,720 19,777 11,532 39,172 9,870 307,594 2,633 5,878 832 101,155 8,506 1,426 10,060 151,346 17,727 8,828 31,901 7,132 261,214 4,598 8,123 1,481 115,142 6,697 3,848 12,629 Dollars (4)-(5) ($000s) 29,374 2,049 2,704 7,271 2,738 46,380 (1,965) (2,245) (649) (13,987) 1,809 (2,422) (2,568) Percent (6)/(5) (%) 19.41% 11.56% 30.63% 22.79% 38.39% 17.76% -42.73% -27.63% -43.85% -12.15% 27.02% -62.94% -20.34% Reason(s) for Change See See See See See See See See See See See See See Note Note Note Note Note Note Note Note Note Note Note Note Note 1 2 3 4 5 6 7 8 9 10 11 12 13 Not included in base rates- recovered through the fuel cost recovery and purchased power capacity cost recovery clauses. Plant Crist ECRC budget increase $1,800,000 for limestone handling and $283,000 for ammonia unloading and storage. Plant Daniel increase of $1,700,000 and Plant Scherer increase of $381,000. Outages budgeted for Crist Units 4, 5, & 6 in 2017 and Crist Unit 7 in 2016. The net increase for Crist Plant outages is $2,700,000. Daniel and Scherer did not have outages budgeted in 2016 but have outages budgeted in 2017. Daniel increased $3,300,000 and Scherer outage increased $2,200,000. Outages budgeted in 2017 for Crist Plant Units 4, 5 & 6 for $3,800,000, Daniel for $527,000, and Scherer for $666,000. Offset by the Crist Unit 7 outage of ($1,700,000) budgeted in 2016. Daniel and Scherer did not have outages budgeted in 2016. Not included in base rates- recovered through the fuel cost recovery and purchased power capacity cost recovery clauses. Smith Unit 3 decreased $1,900,000 due to the major outage budgeted in 2016. Smith Unit 3 decreased $1,800,000 due to the the major outage budgeted in 2016 and Plant Smith baseline decreased $420,000. Decrease of $424,000 at Plant Smith and $327,000 at Perdido Landfill related to outages. Not included in base rates- recovered through the fuel cost recovery and purchased power capacity cost recovery clauses. Increases of $1,100,000 for LING system, $127,000 for LING airtime & tower rentals, $325,000 for IT distribution projects, and $211,000 for labor accruals. Rate Case expenses from 2011 and 2013 cases fully amortized by 2016. Reduction of miscellaneous expenses. 14 15 16 17 18 Note Note Note Note 19 20 21 22 23 24 25 26 27 28 Note 5 : Note 6: Note 7 : Note 8 : Note 9 : Note 10: Note 11: Note 12: Note 13: 29 Totals may not add due to rounding. Supporting Schedules: Recap Schedules: Schedule C-9 FIVE YEAR ANALYSIS- CHANGE IN COST FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI (1) (2) Line Description of No. Functional Group 44 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Fuel Interchange Production Transmission Distribution Customer Account Customer Service & Information & Sales Administrative and General Depreciation Taxes Interest (without AFUDC) (3) Type of Cost Page 1 of 1 EXPLANATION: Provide a schedule showing the change in cost, by functional group, for the last five years. (4) 2015 (5) (6) 2014 (7) (8) 2013 (9) Type of Data Shown: Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 X Historical Year Ended 12/31/11-12/31/15 Witness: J. J. Hodnett, M. L. Burroughs, W. E. Smith, B. C. Terry (12) (13) (1 0) (11) 2012 2011 Variable Semi-Variable Semi-Variable Semi-Variable Semi-Variable Semi-Variable Dollars (OOOs) 444,553 135,098 134,610 25,807 45,677 24,630 Percent Change -26.30% 25.98% -1.22% 2.28% -2.49% -3.11% Dollars (OOOs) 603,179 107,239 136,266 25,231 46,843 25,421 Percent Change 13.43% 25.75% 25.35% 21.34% 9.15% 19.38% Dollars (OOOs) 531,774 85,278 108,712 20,793 42,916 21,295 Percent Change -2.16% 15.11% -11.19% 24.39% 5.43% 0.45% Semi-Variable 31,490 15.43% 27,280 -26.62% 37,178 -4.21% 38,810 Semi-Variable Fixed Semi-Variable 91,590 141,450 208,596 12.05% -2.47% 4.41% 81,740 145,037 199,795 2.05% -2.67% 11.56% 80,098 149,009 179,090 5.53% 5.65% 1.26% 75,895 141,038 176,855 Semi-Variable 15 TOTAL Supporting Schedules: C-6 Dollars Percent (OOOs) Change 543,528 -17.43% 74,086 -18.13% 122,406 -7.06% 16,716 10.92% 40,706 -5.97% -2.32% 21,200 (14) 2010 Dollars (OOOs) 658,235 90,494 131,709 15,070 43,291 21,704 Percent Change -9.90% -6.93% 5.38% 23.03% 8.72% -0.08% Dollars (OOOs) 730,539 97,227 124,989 12,249 39,817 21,721 24.24% 31,237 39.77% 22,349 4.63% 8.78% 7.31% 72,535 129,651 164,807 1.59% 6.72% -5.60% 71,401 121,492 174,577 60,797 3.74% 58,607 -1.41% 59,445 -5.27% 62,749 1.04% 62,101 13.38% 54,771 1,344,298 -7.71% 1,456,638 10.72% 1,315,588 0.12% 1,313,989 -7.52% 1,420,834 -3.42% 1,471,132 Recap Schedules: Schedule C-1 0 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY DETAIL OF RATE CASE EXPENSES FOR OUTSIDE CONSULTANTS EXPLANATION: Provide a detailed breakdown of rate case expenses by service provided for each outside consultant, attorney, engineer or other consultant providing professional services for the case. Page 1 of 1 Type of Data Shown: X Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 X Historical Year Ended 12/31/15 -W~it-ne_s_s_: J. J. Hodnett DOCKET NO.: 160186-EI (1) Line No. (2) (3) (4) (5) (6) (7) (8) (9) (10) Specific Services Rendered Fee ($) Basis of Charge Travel Expenses ($) Other Total (5+7+8) Vendor Name Counsel, Consultant, or Witness ($) ($) Type of Services (A) OUTSIDE CONSULTANTS Various Consultant/ Witness 2 45 3 OUTSIDE LEGAL SERVICES Various 4 5 6 7 8 9 10 11 (A) TYPE OF SERVICE A == ACCOUNTING B = COST OF CAPITAL C == ENGINEERING L = LEGAL 0 =OTHER R == RATE DESIGN S = COST OF SERVICE Counsel Accounting, Cost of Capital, Cost of Service, Rate Design, Other 2,360,485 Contract 0 0 2,360,485 A,B,S,R,O Legal Services 4,333,160 Contract 0 0 4,333,160 L SCHEDULE OF RATE CASE EXPENSE AMORTIZATION IN TEST YEAR Rate Case Total Expenses Rate Order Date Amortization Period ($000s) 12 Docket No. 160186-EI Supporting Schedules: 6,694 N/A 4 years Unamortized Amount Test Year Amortization ($000s) ($000s) 5,021 1,673 Recap Schedules: UNCOLLECTIBLE ACCOUNTS EXPLANATION: Provide the following information concerning bad debts for the four most recent historical years and the test year. In addition, provide a calculation of the bad debt component of the Revenue Expansion Factor. Schedule C-11 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY Witness: B. C. Terry DOCKET NO.: 160186-EI (I) Page I of I Type of Data Shown: X Projected Test Year Ended 12/31/17 --Prior Year Ended 12/31/16 -X- Historical Year Ended 12/31/12-12/31/15 (7) Year (5) Adjustments to Gross Revenues (Specify) (OOOs) (6) Write-Offs (Retail) (OOOs) (4) Gross Revenues From Sales of Electricity (Retail) (OOOs) Adjusted Gross Revenues (OOOs) Bad Debt Factor (3) I (6) 2012 3,084 I, 133,224 0 I, 133,224 0.2721% 2 2013 2,259 I, I 04,662 0 I, 104,662 0.2045% 3 2014 3,348 I ,259,139 0 I ,259,139 0.2659% 4 2015 3,353 I ,323,124 0 I ,323,124 0.2534% 5 4 Year Totals 12,044 4,820,149 0 4,820,149 0.2499% 6 2017 Test Year 3,149 I ,260,127 0 I ,260,127 0.2499% Line No. (2) (3) 46 7 Bad Debt factor based on 4 year average (2012 - 2015) of net write-offs to gross revenue 8 Total Retail Revenue includes lighting, Gross Receipts Tax Supporting Schedules: Recap Schedules: C-44 Schedule C-12 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY ADMINISTRATIVE EXPENSES EXPLANATION: Provide a schedule of jurisdictional administrative, general, customer service, R&D, and other miscellaneous expenses by category and on a per customer basis for the test year and the most recent historical year. Page 1 of 1 Type of Data Shown: _x_ Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 _x_ Historical Year Ended 12/31/15 Witness: J. J. Hodnett, B. C. Terry (OOOs) DOCKET NO.: 160186-EI (1) (2) (3) (4) (5) (6) Line No. Jurisdictional Adjusted Administrative Expenses Test Year Ended 2017 Historical Year Ended 2015 Difference (3)- (4) Percent Increase/(Decrease) (5)/(4) Total Administrative & General Expenses 87,516 84,141 3,375 4% 47 2 (Accounts 920 - 935) 3 4 Customer Accounts Expenses (Accounts 901 - 905) 27,540 24,461 3,079 13% 5 6 Customer Service & Information Expense (Accounts 907 - 91 0) 16,984 15,750 1,234 8% 7 8 Sales Expense 1,156 1,155 133,196 125,507 7,689 6% 458,781 447,556 11,225 3% 0.29 0.28 0.01 3% 0% (Accounts 911 - 916) 9 Total Jurisdictional Administrative Expenses 10 (Accounts 901 - 935) 11 Average Number of Customers 12 Administrative Expense per Customer Supporting Schedules: C-4, C-13 Recap Schedules: Schedule C-13 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY MISCELLANEOUS GENERAL EXPENSES EXPLANATION: Provide a schedule of charges to Account 930.2 (Miscellaneous General Expenses) by type of charge for the most recent historical year. Aggregate all charges that do not exceed $100,000 and all similar charges that exceed $100,000. DOCKET NO.: 160186-EI (1) (2) Line No. Description 1 2 Total Miscellaneous General Expenses of $100,000 or Less 3 4 Miscellaneous General Expenses Exceeding $100,000 (Specify) 48 5 6 7 8 9 10 11 (3) Industry Association Dues Directors Fees & Expenses A&G for Joint Ownership Commitment Fees R&D Expenses Public & Dist Info to Stkhldrs Bank Service Charges 12 Total Miscellaneous General Expenses 13 Average Number of Customers 14 Miscellaneous General Expenses Per Customer Supporting Schedules: $ Witness: J. J. Hodnett (4) Electric Utility $ Page 1 of 1 Type of Data Shown: Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 - X - Historical Year Ended 12/31/15 (5) Jurisdictional Factor Amount 132,217 0.9794740 680,836 373,927 6,673,549 428,541 112,721 133,492 112,993 0.9794740 0.9794740 0.9794740 0.9794740 0.9794740 0.9794740 0.9794740 8,648,276 $ 666,861 366,252 6,536,568 419,745 110,407 130,752 110,674 $ 447,557 $ 19 129,503 8,470,762 447,556 $ Recap Schedules: C-12 19 Schedule C-14 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI (1) Line No. (2) ADVERTISING EXPENSES EXPLANATION: Provide a schedule of advertising expenses by subaccounts for the test year and the most recent historical year for each type of advertising that is included in base rate cost of service. (3) 49 Account/Sub Account Number Account/Sub Account Title 1 2 3 4 ACCOUNT909 90900000 90900000 Total909 ECCR Advertising Non-ECCR Advertising 5 6 7 ACCOUNT930 93010155 Total930 General Advertising 8 Total Advertising Expenses 9 10 Average Number of Customers Advertising Expenses per Customer Supporting Schedules: (4) Projected Year Electric Utility ($000s) Page 1 of 2 Type of Data Shown: X Projected Test Year Ended 12/31 /17 --Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: B. C. Terry (5) (6) (7) (8) Projected Year NOI Electric Jurisdictional Adjustment Utility Net Factor Amount ($000s) ($000s) ($000s) 717 556 1,273 (717) 0 (717) 0 556 556 0.0000000 1.0000000 511 511 {200) (200) 311 311 0.9803522 1,784 (917) 867 861 459 3.89 459 (2.00) 459 1.89 459 1.88 0 556 -~5=5~6-- 305 --3=0~5:----- Recap Schedules: Schedule C-14 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULFPOWERCOMPANY DOCKET NO.: 160186-EI (1) Line No. {2) ADVERTISING EXPENSES EXPLANATION: Provide a schedule of advertising expenses by subaccounts for the test year and the most recent historical year for each type of advertising that is included in base rate cost of service. (3) 50 Account/Sub Account Number Account/Sub Account Title 2 3 4 ACCOUNT909 90900000 90900000 Total909 ECCR Advertising Non-ECCR Advertising 5 6 7 ACCOUNT930 93010155 Total930 General Advertising 8 Total Advertising Expenses 9 10 Average Number of Customers Advertising Expenses per Customer Supporting Schedules: (4) Historical Year Electric Utility ($000s) {5) NOI Adjustment ($000s) Page 2 of 2 Type of Data Shown: Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: B. C. Terry (6) (7) {8) Historical Year Electric Jurisdictional Utility Net Factor Amount ($000s) ($000s) --x 497 554 1,051 {497) 0 {497} 0 554 554 0.0000000 1.0000000 0 554 554 184 184 (184} (184) 0 0 0.9803522 0 0 1,235 (681) 554 554 448 2.76 448 (1.52) 448 1.24 448 1.24 Recap Schedules: Schedule C-15 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY INDUSTRY ASSOCIATION DUES EXPLANATION: Provide a schedule of industry association dues included in cost of service by organization for the test year and the most recent historical year. Indicate the nature of each organization. Individual dues less than $10,000 may be aggregated. DOCKET NO.: 160186-EI (1) Page 1 of 2 Type of Data Shown: _X_ Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: J. J. Hodnett (2) (3) (4) (5) (6) Jurisdictional Line No. Electric Utility Name of Organization Nature of Organization Amount $ Factor $ 51 Edison Electric Institute Business Association 278,839 0.9803522 273,360 2 Florida Electric Power Coordinating Group Business Association 91,000 0.9803522 89,212 3 North American Electric Reliability Corporation Business Association 313,650 0.9803522 307,487 4 Other Industry Dues Technical/Professional 12,500 0.9803522 12,254 5 Total Industry Association Dues 695,989 682,313 6 Average Number of Customers 458,781 458,780 7 Dues Per Customer 1.52 1.49 8 Lobby Expenses Included in Industry Association Dues Supporting Schedules: 0 0 Recap Schedules: Schedule C-15 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY INDUSTRY ASSOCIATION DUES EXPLANATION: Provide a schedule of industry association dues included in cost of service by organization for the test year and the most recent historical year. Indicate the nature of each organization. Individual dues less than $10,000 may be aggregated. Page 2 of 2 Type of Data Shown: Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 X Historical Year Ended 12/31 /15 Witness: J. J. Hodnett DOCKET NO.: 160186-EI (1) (2) (3) (4) (5) (6) Jurisdictional Line No. Electric Utility Amount Name of Organization Nature of Organization Edison Electric Institute Business Association 260,553 $ Factor $ 0.9803522 255,434 86,663 52 2 Florida Electric Power Coordinating Group Business Association 88,400 0.9803522 3 Florida Reliability Coordinating Council Business Association 10,000 0.9803522 9,804 4 North American Electric Reliability Corporation Business Association 303,310 0.9803522 297,351 5 Other Industry Dues Technical/Professional 18,573 0.9803522 18,208 6 Total Industry Association Dues 680,836 667,460 7 Average Number of Customers 447,557 447,556 8 Dues Per Customer 1.52 1.49 9 Lobby Expenses Included in Industry Association Dues Supporting Schedules: 0 0 Recap Schedules: OUTSIDE PROFESSIONAL SERVICES Schedule C-16 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI (1) Line No. (2) Type of Service EXPLANATION: Page 1 of 1 Provide the following information regarding the use of outside professional services during the test year. Segregate the services by types such as accounting, financial, engineering, legal or other. If a projected test period is used, provide on both a projected and a historical basis for services exceeding the greater of $1,000,000 or .5% (.005) of operation and maintenance expenses. (3) Description of Service (4) Accounts Charged Type of Data Shown: Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 X X Historical Year Ended 12/31/15 Witness: J. J. Hodnett (5) (6) Test Year Costs Historical Year Costs 53 Accounting None over the threshold in any year 2 Financial None over the threshold in any year 3 Engineering None over the threshold in any year 4 Legal None over the threshold in any year 5 Other (specify) None over the threshold in any year 6 Total Outside Professional Services Supporting Schedules: Recap Schedules: Schedule C-17 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY PENSION COST EXPLANATION: Provide the following information concerning pension cost for the test year and the most recent historical year if the test year is projected. DOCKET NO.: 160186-EI (1) (2) Line No. Description 1 2 3 4 5 6 7 8 54 9 10 11 12 13 14 15 16 17 18 19 20 Service Cost Interest Cost Expected/Actual Return on Assets Net Amortization and Deferral Amortization of Prior Service Cost Total Net Periodic Pension Cost For the Year: Expected Return on Assets Assumed Rate of Return on Plan Assets Amortization of Transition Asset or Obligation Percent of Pension Cost Capitalized Pension Cost Recorded in Account 926 Minimum Required Contribution Per IRS (Note 1) Maximum Allowable Contribution Per IRS Actual Contribution Made to the Trust Fund Actuarial Attribution Approach Used for Funding Assumed Discount Rate for Computing Funding (Note 4) Allocation Method Used to Assign Costs if the Utility Is Not the Sole Participant in the Plan. Attach the Relevant Procedures. Supporting Schedules: (OOOs) Page 1 of 2 Type of Data Shown: X Projected Test Year Ended 12/31/17 --Prior Year Ended 12/31/16 -X- Historical Year Ended 12/31/15 Witness: J. J. Hodnett (3) (4) Test Year 12/31/17 13,176 18,841 (35,879) 600 6,071 2,809 Historical Year 12/31/15 12,220 20,026 (32,502) 9,281 1'115 10,140 35,879 8.20% 32,502 8.20% 0 0 21.50% 2,174 19.84% 7,945 0 0 Note 6 0 Note 3 5.95% Note 2 Note 5 Note 5 0 Note 3 6.31% Recap Schedules: Schedule C-17 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY PENSION COST EXPLANATION: Provide the following information concerning pension cost for the test year and the most recent historical year if the test year is projected. DOCKET NO.: 160186-EI (1) (2) Line No. Description (OOOs) (3) Page 2 of 2 Type of Data Shown: X Projected Test Year Ended 12/31/17 --Prior Year Ended 12/31/16 -X- Historical Year Ended 12/31/15 Witness: J. J. Hodnett (4) Test Year 12/31/2017 Historical Year 12/31/2015 1 2 3 4 5 6 7 8 9 At Year End: Accumulated Benefit Obligation Projected Benefit Obligation Vested Benefit Obligation Assumed Discount Rate (Settlement Rate) Assumed Rate for Salary Increases Fair Value of Plan Assets Market Related Value of Assets Balance in Working Capital (Note 8) 10 Note 1 No contributions were required for 2015 or are projected to be required for 2017 after application of Funding Balances per IRC § 430. 11 12 13 Note 2 Gulf Power is a co-sponsor in The Southern Company pension plan. If the maximum allowed contribution was allocated between the co-sponsors based on ASC 715 service cost and amortization of pension deficit, Gulf's maximum contribution would be approximately $220 million in 2015. 14 Note 3 Actuarial Attribution Approach Used for Funding is the unit credit cost method per IRC § 430. 15 Note 4 The Effective Interest Rate reflects actual/projected yield curves mandated by IRC § 430 for the historic and test year respectively. 16 17 Note 5 Gulf Power is a co-sponsor in The Southern Company pension plan; however, for accounting purposes, its pension benefit liabilities, assets, and annual costs are calculated as if it sponsored its own plan. 18 Note 6 Projected amount not readily available. 19 Note 7 Amount is not required to be disclosed by GAAP and is not supplied with Gulf Power Co.'s actuarial information. 20 Note 8 Includes Account Numbers 128-00920, 182-30830, 182-30840, 228-30014, 228-30028, 228-30068, and 242-01020. 423,751 479,752 Note 7 4.71% 4.46% 419,075 429,329 81,201 Note 6 519,242 Note 7 4.43% 4.46% 461 ,610 468,263 74,663 55 Supporting Schedules: Recap Schedules: Schedule C-18 LOBBYING EXPENSES, OTHER POLITICAL EXPENSES AND CIVIC/CHARITABLE CONTRIBUTIONS Page 1 of 1 FLORIDA PUBLIC SERVICE COMMISSION EXPLANATION: Provide a schedule, by organization, of any Type of Data Shown: expenses for lobbying, civic, political, and related activities for ~Projected Test Year Ended 12/31/17 civic/charitable contributions included for recovery in cost of COMPANY: GULF POWER COMPANY Prior Year Ended 12/31/16 service for the test year and the most recent historical year. X Historical Year Ended 12/31/15 DOCKET NO.: 160186-EI Witness: J.J. Hodnett Line No. LOBBYING AND OTHER POLITICAL EXPENSES The Company has made the appropriate adjustments to remove lobbying and other political expenses when determining Net Operating Income. 2 3 4 CIVIC I CHARITABLE CONTRIBUTIONS 56 5 All charitable contributions are treated as "below the line" expenses. 6 Civic expenses such as Chamber of Commerce dues are listed below: 7 (OOOs) 8 Test Year 48 9 Historical Year 66 Supporting Schedules: Recap Schedules: Schedule C-19 AMORTIZATION/RECOVERY SCHEDULE- 12-MONTHS FLORIDA PUBLIC SERVICE COMMISSION EXPLANATION: Provide a schedule for each Amortization/Recovery amount by account or subaccount currently in effect or proposed and not COMPANY: GULFPOWERCOMPANY shown on Schedule B-9. DOCKET NO.: 160186-EI ( 1) Line No. ($000s) (2) Account/ Sub-account Number (3) Plant Account Title Page 1 of 1 Type of Data Shown: ___x_ Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: S. D. Ritenour, J. J. Hodnett (4) (5) (6) Total Effective Amortization/ Amort/Recovery Date Recovery Expense Period (7) Reason 57 1 2 3 4 5 411 Gains on Disposition of Emission Allowances (2) Various Various Gains from the disposition of emission allowances are amortized annually by the vintage year. These are recoverable through the environmental clause and are included in the environmental adjustments. 6 7 8 9 407 Amortization of Non-AMI Meters 886 4/1/2012 8 Years Amortization of analog meters, as approved in Gulf•s 2011 rate case, Docket No. 110138-EI, Order No. PSC-12-0179-FOF-EI, issued April 3, 2012. 10 11 12 13 14 15 407 Amortization of Subsidy 327 4/1/2010 14 Years The Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 eliminated the deductibility of healthcare costs that are covered by federal Medicare subsidy payments. Supporting Schedules: Recap Schedules: Schedule C-20 FLORIDA PUBLIC SERVICE COMMISSION TAXES OTHER THAN INCOME TAXES EXPLANATION: Provide a schedule of taxes other than income taxes for the historical base year, historical base year+ 1, and the test year. For each tax, indicate the amount charged to operating expenses. Complete columns 7, 8 and 9 for the historical base year and test year only. COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI Page 1 of 3 Type of Data Shown: X Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: J. J. Hodnett ($000s) (1) Line No. (2) Type of Tax (3) (4) (5) Rate Tax Basis Total Amount (6) Amount Charged to Operating Expense (7) (8) Jurisdictional Factor Amount (9) Jurisdictional Amount Charged to Operating Expenses $ Federal Unemployment 58 0.008 Wages 74 73 0.9766490 72 71 2 State Unemployment Various Wages 62 61 0.9766490 61 60 3 FICA 0.0765 Wages 10,542 8,477 0.9766490 10,296 8,279 4 Federal Vehicle Various Various 15 0 0.9849624 15 0 5 State Intangible NA NA 0 0 0.9849624 0 0 6 Utility Assessment Fee 0.00072 1,327,778 956 956 1.0000000 956 956 7 Property Various Assessed Values 32,039 31,894 0.9738497 31,201 31,060 8 Gross Receipts 0.025 1,302,080 32,552 32,552 1.0000000 32,552 32,552 9 Franchise Fee Various Revenue 40,693 40,693 1.0000000 40,693 40,693 10 Occupational License Various Various 12 0 0.9849624 12 0 11 Other - Mississippi Franchise Tax 0.0025 175,200 438 438 0.9726027 426 426 12 Other - Florida Use Tax - Electricity Various Various 81 73 0.9849624 80 72 13 Other- Georgia Net Worth Tax Various Various 5 5 0.9849624 5 5 14 Other - Miscellaneous Various Various 60 55 0.9849624 59 54 117,529 115,277 116,428 114,228 15 Total Supporting Schedules: Recap Schedules: C-1 Schedule C-20 FLORIDA PUBLIC SERVICE COMMISSION TAXES OTHER THAN INCOME TAXES EXPLANATION: Provide a schedule of taxes other than income taxes for the historical base year, historical base year + 1, and the test year. For each tax, indicate the amount charged to operating expenses. Complete columns 7, 8 and 9 for the historical base year and test year only. COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI Page 2 of 3 Type of Data Shown: _ Projected Test Year Ended 12/31/17 ~ Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: J. J. Hodnett ($000s) (1) Line No. (2) Type of Tax (3) (4) (5) Rate Tax Basis Total Amount (6) Amount Charged to Operating Expense (7) (8) (9) Jurisdictional Amount Charged to Operating Expenses Jurisdictional Factor Amount $ Federal Unemployment 59 0.008 Wages 74 73 0.9766490 72 71 2 State Unemployment Various Wages 62 61 0.9766490 61 60 3 FICA 0.0765 Wages 10,235 8,231 0.9766490 9,996 8,039 4 Federal Vehicle Various Various 15 0 0.9849624 15 0 5 State Intangible NA NA 0 0 0.9849624 0 0 6 Utility Assessment Fee 0.00072 1,299,284 935 935 1.0000000 935 935 7 Property Various Assessed Values 32,969 32,826 0.9738497 32,107 31,968 8 Gross Receipts 0.025 1,253,831 31,346 31,346 1.0000000 31,346 31,346 9 Franchise Fee Various Revenue 39,084 39,084 1.0000000 39,084 39,084 10 Occupational License Various Various 12 0 0.9849624 12 0 11 Other- Mississippi Franchise Tax 0.0025 173,955 435 435 0.9726027 423 423 12 Other- Florida Use Tax- Electricity Various Various 81 73 0.9849624 80 72 13 Other- Georgia Net Worth Tax Various Various 5 5 0.9849624 5 5 14 Other - Miscellaneous Various Various 60 55 0.9849624 59 54 115,313 113,124 114,195 112,057 15 Total Supporting Schedules: Recap Schedules: C-1 Schedule C-20 FLORIDA PUBLIC SERVICE COMMISSION TAXES OTHER THAN INCOME TAXES EXPLANATION: Provide a schedule of taxes other than income taxes for the historical base year, historical base year+ 1, and the test year. For each tax, indicate the amount charged to operating expenses. Complete columns 7, 8 and 9 for the historical base year and test year only. COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI Page 3 of 3 Type of Data Shown: _ Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 ~Historical Year Ended 12/31/15 Witness: J. J. Hodnett ($000s) (1) (2) (3) (4) (5) Rate Tax Basis $ Total Amount 0.006 Wages 75 74 0.9766490 73 72 2 State Unemployment Various Wages 25 24 0.9766490 24 23 3 FICA 0.0765 Wages 10,124 8,165 0.9766490 9,888 7,974 4 Federal Vehicle Various Various 0 0 0.9849624 0 0 5 State Intangible NA NA 0 0 0.9849624 0 0 6 Utility Assessment Fee 0.00072 1,316,570 948 948 1.0000000 948 948 7 Property Various Assessed Values 31,122 30,872 0.9738497 30,308 30,065 8 Gross Receipts 0.025 1,357,483 33,935 33,935 1.0000000 33,935 33,935 9 Franchise Fee Various Revenue 42,990 42,990 1.0000000 42,990 42,990 10 Occupational License Various Various 13 13 0.9849624 13 13 11 Other- Mississippi Franchise Tax 0.0025 216,400 541 541 0.9726027 526 526 12 Other- Florida Use Tax- Electricity Various Various 79 80 0.9849624 78 79 Max. Amount- $5,000 Various 5 5 0.9849624 5 5 Various Various 79 72 0.9849624 78 71 119,936 117,719 118,866 116,701 Line No. Type of Tax Federal Unemployment 60 13 Other- Georgia Net Worth Tax 14 Other - Florida Sales Taxes 15 Total Supporting Schedules: (6) Amount Charged to Operating Expense (7) (8) Jurisdictional Factor Amount (9) Jurisdictional Amount Charged to Operating Expenses Recap Schedules: C-1 Schedule C-21 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY REVENUE TAXES EXPLANATION: Provide a calculation of the Gross Receipts Tax and Regulatory Assessment Fee for the historical base year, historical base year+ 1, and the test year. Page 1 of 1 Type of Data Shown: ~ Projected Test Year Ended 12/31/17 ~ Prior Year Ended 12/31/16 ~ Historical Year Ended 12/31/15 Witness: J. J. Hodnett DOCKET NO.: 160186-EI (OOOs) ( 1) (2) (3) GROSS RECEIPTS TAX (4) (5) Line No. 2015 2016 2017 2015 TOTAL OPERATING REVENUES $ 1,483,006 $ 1,433,471 $ 1,503,134 $ (6) (7) REGULATORY ASSESSMENT FEE 2016 1,483,006 $ 2017 1,433,471 $ 1,503,134 6 7 8 9 10 11 ADJUSTMENTS: Less: Miscellaneous Service Revenues Rent - Electric Property 0/U Recovery - Clauses Other Operating Revenues Provision for Rate Refunds Non -Territorial Sales Sales for Resale- Territorial Unbilled Revenue Bad Debts* 5,478 6,450 (75,351) 24,823 (446) 136,915 29,521 (3,809) 2,041 4,472 6,749 19,479 13,628 0 104,649 29,537 1,127 0 4,456 7,004 0 13,986 0 144,545 31,254 (193) 0 0 0 0 0 0 136,915 29,521 0 0 0 0 0 0 0 104,649 29,537 0 0 0 0 0 0 0 144,545 31,254 0 0 12 TOTAL ADJUSTMENTS 125,622 179,641 201,052 166,436 134,186 175,799 13 ADJUSTED OPERATING REVENUES 1,357,384 1,253,830 1,302,082 1,316,570 1,299,285 1,327,335 14 TAX RATE 0.025 0.025 0.025 0.00072 0.00072 0.00072 15 TAX AMOUNT 16 * In the forecast years, bad debt expense was not included in the calculation of gross receipts tax. There is no net effect on Net Operating Income. 2 3 4 5 61 Supporting Schedules: C-1, C-5 $ 33,935 $ 31,346 $ 32,552 $ 948 $ 935 Recap Schedules: $ 956 Schedule C-22 FLORIDA PUBLIC SERVICE COMMISSION STATE AND FEDERAL INCOME TAX CALCULATION EXPLANATION: Provide the calculations of state and federal income taxes for the historical base year and the projected test year. COMPANY: GULFPOWERCOMPANY DOCKET NO.: 160186-EI (2) (1) Line DESCRIPTION No. (OOOs) (3) STATE 2 3 4 NET UTILITY OPERATING INCOME ADD INCOME TAX ACCOUNTS LESS INTEREST CHARGES (FROM C-23) TAXABLE INCOME PER BOOKS 5 6 7 8 9 TEMPORARY ADJUSTMENTS TO TAXABLE INCOME (LIST) ADD: BOOK DEPRECIATION LESS: AFUDC Equity LESS: TAX DEPRECIATION Tax over book depreciation 62 10 11 12 13 14 15 16 17 18 Employee Benefits Emission Allowances Deferred Revenues Bad Debt Reserve Injuries & Damages Reserve Property Damage Reserve Loss/Gain on Reacquired Debt Other 19 TOTAL TEMPORARY DIFFERENCES Supporting Schedules: C-23 $ (4) CURRENT TAX FEDERAL 168,288 $ 69,372 {60,851} 176,809 (5) (6) TOTAL STATE Page 1 of 6 Type of Data Shown: _X_ Projected Test Year Ended 12/31 /17 Prior Year Ended 12/31 /16 Historical Year Ended 12/31/15 Witness: J. J. Hodnett (7) (8) DEFERRED TAX FEDERAL TOTAL 168,288 69,372 {60,851} 176,809 169,660 0 {298,851} (129,191) 169,660 0 {214,077} (44,417) 1,884 19 130 47 129 3,735 1,016 1,213 8,173 1,884 19 130 47 129 3,735 1,016 1,213 8,173 (121,018) (36,244) 7,106 (104) (1) (7) (3) (7) (205) (56) {67} (450) 6,656 13,060 (623) (6) (43) (16) (43) (1 ,235) (336) {401} (2,703) 10,357 Recap Schedules: C-1 Schedule C-22 FLORIDA PUBLIC SERVICE COMMISSION STATE AND FEDERAL INCOME TAX CALCULATION EXPLANATION: Provide the calculations of state and federal income taxes for the historical base year and the projected test year. Page 2 of 6 Type of Data Shown: _X_ Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: J. J. Hodnett (7) (8) DEFERRED TAX FEDERAL TOTAL COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI (1) (2) Line DESCRIPTION No. (OOOs) (4) (3) CURRENT TAX FEDERAL STATE (5) (6) TOTAL STATE 63 2 3 4 5 6 PERMANENT ADJUSTMENTS TO TAXABLE INCOME (LIST) Non-deductible book depreciation AFUDC Equity Meals and Entertainment Other TOTAL PERMANENT ADJUSTMENTS 7 8 ADJUSTMENTS TO DEFERRED TAXES Excess Deferred Taxes 9 10 11 STATE TAXABLE INCOME STATE INCOME TAX (5.5% OR APPLICABLE RATE)* Florida 5.5%; Mississippi 5.0%; Georgia 5.7% 12 13 14 15 16 ADJUSTMENTS TO STATE INCOME TAX (LIST) State of Georgia Investment Tax Credit FIN 48 Reserve Return to Accrual Out of Period Adj TOTAL ADJUSTMENTS TO STATE INCOME TAX 17 STATE INCOME TAX 18 19 20 21 FEDERALTAXABLEINCOME State Tax Deduction FEDERAL INCOME TAX (35% OR APPLICABLE RATE) 22 23 *Note: The current year multistate effective tax rate is 6.1% due to the state taxable income difference, primarily due to Mississippi and Georgia disallowance of bonus depreciation verses Florida 7 year amortization. Supporting Schedules: C-23 3,368 0 405 80 3,853 145 3,385 0 405 33 3,823 0 0 0 6,656 10,357 (471) 59,789 3,669 0 0 0 0 0 0 0 0 3,669 6,656 143,917 (3,669) 140,248 49,087 10,357 Recap Schedules: C-1 Schedule C-22 FLORIDA PUBLIC SERVICE COMMISSION STATE AND FEDERAL INCOME TAX CALCULATION EXPLANATION: Provide the calculations of state and federal income taxes for the historical base year and the projected test year. COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI (1) (2) Line DESCRIPTION No. (OOOs) (3) STATE (4) CURRENT TAX FEDERAL (5) (6) TOTAL STATE Page 3 of 6 Type of Data Shown: _X_ Projected Test Year Ended 12/31 /17 Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: J. J. Hodnett (7) (8) DEFERRED TAX FEDERAL TOTAL ADJUSTMENTS TO FEDERAL INCOME TAX 64 2 ORIGINATING lTC 3 WRITE OFF OF EXCESS DEFERRED TAXES 4 5 6 7 8 OTHER ADJUSTMENTS (LIST) R&D Credit FIN 48 Reserve Return to Accrual Out of Period Adj TOTAL ADJUSTMENTS TO FEDERAL INCOME TAX 9 FEDERAL INCOME TAX 10 lTC AMORTIZATION 11 12 13 14 15 16 SUMMARY OF INCOME TAX EXPENSE: CURRENT TAX EXPENSE DEFERRED INCOME TAXES INVESTMENT TAX CREDITS, NET TOTAL INCOME TAX PROVISION Supporting Schedules: C-23 0 0 0 0 0 0 0 0 49,087 10,357 0 (394) FEDERAL 49,087 10,357 (394) 59,050 STATE 3,669 6,656 0 10,325 TOTAL 52,756 17,013 (394) 69,375 Recap Schedules: C-1 Schedule C-22 FLORIDA PUBLIC SERVICE COMMISSION STATE AND FEDERAL INCOME TAX CALCULATION EXPLANATION: Provide the calculations of state and federal income taxes for the historical base year and the projected test year. COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI (2) ( 1) Line DESCRIPTION No. (OOOs) (3) STATE 2 3 4 NET UTILITY OPERATING INCOME ADD INCOME TAX ACCOUNTS LESS INTEREST CHARGES (FROM C-23) TAXABLE INCOME PER BOOKS 5 6 7 8 9 TEMPORARY ADJUSTMENTS TO TAXABLE INCOME (LIST) ADD: BOOK DEPRECIATION LESS: AFUDC Equity LESS: TAX DEPRECIATION Tax over book depreciation 65 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Purchased Power Capacity Recovery Employee Benefits Emission Allowances Energy Conservation Cost Recovery Environmental Cost Recovery Deferred Revenues Interest on Audits Bad Debt Reserve Fuel Cost Recovery Injuries & Damages Reserve Property Damage Reserve Loss/Gain on Reacquired Debt Tax Credit Carryforward NOL Carryforward Other TOTAL TEMPORARY DIFFERENCES Supporting Schedules: C-23 $ (4) CURRENT TAX FEDERAL 199,507 $ 90,175 {55, 189} 234,493 (5) (6) TOTAL STATE Page 4 of 6 Type of Data Shown: _ _ Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 X Historical Year Ended 12/31/15 Witness: J. J. Hodnett (7) (8) DEFERRED TAX FEDERAL TOTAL 199,507 90,175 {55, 189} 234,493 155,157 (12,546) {307,632} (165,021) 155,157 (12,546) {449,443} (306,832) (656) 11,234 178 6,251 10,308 (77) 52 (1 ,312) 59,523 (3,954) 2,446 765 (751) (79,520) {23,946} (19,459) (656) 11,234 178 6,251 10,308 (77) 52 (1 ,312) 59,523 (3,954) 2,446 765 (969) (184,480) 8,431 100,163 {23,887} 59,902 36 (618) (1 0) (344) (567) 4 (3) 72 (3,274) 217 (135) (42) 41 4,374 1,317 1,068 217 (3,716) (59) (2,068) (3,409) 25 (17) 434 (19,687) 1,308 (809) (253) 325 (1 ,531) 7,899 (21 ,341) (246,930) 9,499 78,822 Recap Schedules: C-1 Schedule C-22 FLORIDA PUBLIC SERVICE COMMISSION STATE AND FEDERAL INCOME TAX CALCULATION EXPLANATION: Provide the calculations of state and federal income taxes tor the historical base year and the projected test year. Page 5 of 6 Type of Data Shown: _ _ Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 X Historical Year Ended 12/31/15 Witness: J. J. Hodnett (7) (8) DEFERRED TAX FEDERAL TOTAL COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI (1) (2) Line DESCRIPTION No. 2 3 4 5 6 7 8 PERMANENT ADJUSTMENTS TO TAXABLE INCOME (LIST) Non-deductible book depreciation AFUDC Equity Meals and Entertainment Medicare Subsidy Other TOTAL PERMANENT ADJUSTMENTS (OOOs) (3) STATE (4) CURRENT TAX FEDERAL 3,435 12,546 382 0 19 16,382 3,532 12,546 382 0 19 16,479 (5) (6) TOTAL STATE 66 0 0 (14) (246) 9,485 78,576 9 ADJUSTMENTS TO DEFERRED TAXES Excess Deterred Taxes 10 11 12 STATE TAXABLE INCOME STATE INCOME TAX (5.5% OR APPLICABLE RATE)* Florida 5.5%; Mississippi 5.0%; Georgia 5.7% 13 14 15 16 17 ADJUSTMENTS TO STATE INCOME TAX (LIST) State of Georgia Investment Tax Credit FIN 48 Reserve Return to Accrual Out of Period Adj TOTAL ADJUSTMENTS TO STATE INCOME TAX 18 STATE INCOME TAX 19 20 21 22 FEDERAL TAXABLE INCOME State Tax Deduction FEDERAL INCOME TAX (35% OR APPLICABLE RATE) 23 24 *Note: The current year multistate effective tax rate is 6.7% due to the state taxable income difference, primarily due to Mississippi and Georgia disallowance of bonus depreciation verses Florida 7 year amortization. Supporting Schedules: C-23 66,395 4,470 (43) 0 (2,983) (3,026) 0 0 3,841 3,841 1,444 13,326 4,042 (1 ,444) 2,598 909 78,576 Recap Schedules: C-1 Schedule C-22 FLORIDA PUBLIC SERVICE COMMISSION STATE AND FEDERAL INCOME TAX CALCULATION EXPLANATION: Provide the calculations of state and federal income taxes for the historical base year and the projected test year. COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI (1) (2) Line DESCRIPTION No. (OOOs) (3) (4) CURRENT TAX FEDERAL STATE (5) (6) TOTAL STATE Page 6 of 6 Type of Data Shown: _ _ Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 X Historical Year Ended 12/31/15 Witness: J. J. Hodnett (7) (8) DEFERRED TAX FEDERAL TOTAL ADJUSTMENTS TO FEDERAL INCOME TAX 67 2 ORIGINATING lTC 3 WRITE OFF OF EXCESS DEFERRED TAXES 4 5 6 7 8 OTHER ADJUSTMENTS (LIST) R&D Credit FIN 48 Reserve Return to Accrual Out of Period Adj TOTAL ADJUSTMENTS TO FEDERAL INCOME TAX (115) 256 {28,266} (28, 125) 0 0 24,746 24,746 9 FEDERAL INCOME TAX {27,216} 103,322 10 lTC AMORTIZATION 11 SUMMARY OF INCOME TAX EXPENSE: 12 13 14 15 CURRENT TAX EXPENSE DEFERRED INCOME TAXES INVESTMENT TAX CREDITS, NET TOTAL INCOME TAX PROVISION Supporting Schedules: C-23 0 FEDERAL (27,216) 103,322 {702} 75,404 (702) STATE 1,444 13,326 0 14,770 TOTAL (25,772) 116,648 {702} 90,174 Recap Schedules: C-1 Schedule C-23 INTEREST IN TAX EXPENSE CALCULATION FLORIDA PUBLIC SERVICE COMMISSION EXPLANATION: Provide the amount of interest expense Type of Data Shown: used to calculate net operating income taxes on Schedule X Projected Test Year Ended 12/31/17 COMPANY: GULF POWER COMPANY C-22. If the basis for allocating interest used in the tax DOCKET NO.: 160186-EI Page 1 of 1 Prior Year Ended 12/31/16 calculation differs from the basis used in allocating current x_ Historical Year Ended 12/31/15 income tax expense, the differing bases should be clearly Witness: S. D. Ritenour identified. ( 1) (2) (4) Historical Base Year Line No. Description Interest on Long Term Debt 68 2 Amortization of Debt Discount, Premium, Issuing 3 Expense & Loss on Reacquired Debt Test Year Ended Ended 12/31/15 12/31/17 $57,036 $56,585 2,566 1,995 4 Interest on Short Term Debt 442 1,430 5 Interest on Customer Deposits 844 841 6 Other Interest Expense (91) 0 7 Less Allowance for Funds Used During Construction 8 Total Interest Expense Supporting Schedules: (5,608) $55,189 0 $60,851 Recap Schedules: C-22 Schedule C-24 FLORIDA PUBLIC SERVICE COMMISSION PARENT(S) DEBT INFORMATION EXPLANATION: Provide information required in order to adjust income tax expenses by reason of interest expense of parent(s) that may be invested in the equity of the utility in question. If a projected test period is used, provide on both a projected and historical basis. COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI (1) (2) (3) Page 1 of 2 Type of Data Shown: X Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 ----- ----- Witness: X. Liu (4) (5) (6) Percent of Capital Cost Rate Weighted Cost Amount Line Description No. (OOOs) 69 Long-Term Debt 11,932,279 44.14% 3.50% 1.54% 2 Short-Term Debt 1,009,038 3.73% 3.37% 0.13% 3 Preferred Stock 0 0.00% 0.0% 4 Common Equity* 14,092,351 52.13% 0.0% 5 Deferred Income Tax 0 0.00% 0.0% 6 Investment Tax Credits 0 0.00% 0.0% 7 Other (specify) 0 0.00% 0.0% 8 Total 27,033,668 100.00% 1.67% 9 Weighted cost of parent debt 1.67% x Consolidated tax rate 38.575% x equity* of subsidiary $1,091,285,000 10 * Excluding retained earnings 11 As discussed in Witness Liu's testimony, a parent debt adjustment is not appropriate. Supporting Schedules: $ $7,030,000 Recap Schedules: PARENT(S) DEBT INFORMATION EXPLANATION: Provide information required in order to adjust income tax expenses by reason of interest expense of parent(s) that may be invested in the equity of the utility in question. If a projected test period is used, provide on both a projected and historical basis. Schedule C-24 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI (1) (3) (2) --------- Witness: X. Liu (4) (5) (6) Percent of Capital Cost Rate Weighted Cost Amount Line No. Page 2 of 2 Type of Data Shown: Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 X Historical Year Ended 12/31/15 (OOOs) Description 70 Long Term Debt 2,930,404 21.12% 2.25% 0.47% 2 Short Term Debt 343,942 2.48% 0.84% 0.02% 3 Preferred Stock 0 0.00% 0.0% 4 Common Equity* 10,601,948 76.40% 0.0% 5 Deferred Income Tax 0 0.00% 0.0% 6 Investment Tax Credits 0 0.00% 0.0% 7 Other (specify) 0 0.00% 0.0% 8 Total 13,876,294 100.00% 0.49% 9 Weighted cost of parent debt 0.49% x Consolidated tax rate 38.575% x equity* of subsidiary $1,064,274,000 10 * Excluding retained earnings 11 As discussed in Witness Liu's testimony, a parent debt adjustment is not appropriate. Supporting Schedules: $ $ 2,012,000 Recap Schedules: DEFERRED TAX ADJUSTMENT Schedule C-25 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI (1) (2) Line No. Balance and Activity Page 1 of 1 EXPLANATION: To provide information required to present the excess/deficient deferred tax balances due to protected and unprotected timing differences at statutory tax rates different from the current tax rate. The protected deferred tax balances represent timing differences due to Life and Method effect on depreciation rates. (3) (4) Type of Data Shown: X Projected Test Year Ended 12/31/17 -xPrior Year Ended 12/31/16 -xHistorical Year Ended 12/31/15 Witness: J. J. Hodnett (5) Taxes Taxes Total Protected Unprotected Excess/(Deficient) 71 2 Balance at Beginning of Historical Year Historical Year Amortization 652,661 (21 0,253) 2,019,842 {272,319} 2,672,503 (482,572) 3 4 Balance at Beginning of Historical Year+ 1 Historical Year+ 1 Amortization 442,408 (143,725) 1,747,523 {215,823) 2,189,931 (359,548) 5 6 Balance at Beginning of Projected Test Year Projected Test Year Amortization 298,683 (131 ,024) 1,531,700 {123,493) 1,830,383 (254,517) 7 Balance at End of Projected Test Year 167,659 1,408,207 1,575,866 Supporting Schedules: Recap Schedules: Schedule C-26 INCOME TAX RETURNS FLORIDA PUBLIC SERVICE COMMISSION EXPLANATION: Provide a copy of the company's most recent consolidated Federal Income Tax Return, COMPANY: GULF POWER COMPANY State Income Tax Return and most recent final IRS revenue agent's report. DOCKET NO.: 160186-EI Line No. 1 2 3 4 5 6 Page 1 of 1 Type of Data Shown: Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 X Historical Year Ended 12/31 /15 Witness: J. J. Hodnett Gulf's portion of the Consolidated Federal Income Tax Return and Gulf's section of the most recent final IRS revenue agent's report along with the State Income Tax Return will be made available for review at the Company's Corporate Office located at 500 Bayfront Parkway, Pensacola, FL 32501. The remaining portions of the Consolidated Return and the IRS agent's report are located at 241 Ralph McGill Blvd., Atlanta, GA 30308-3374. 72 Supporting Schedules: Recap Schedules: Schedule C-27 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI Line No. CONSOLIDATED TAX INFORMATION EXPLANATION: Provide a summary of the specific tax effects (in dollars) of filing a consolidated return for the test year. Identify the nature and amount of benefits to the company and to the ratepayers. Page 1 of 1 Type of Data Shown: ~Projected Test Year Ended 12/31 /17 Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: J. J. Hodnett 73 2 3 4 For the Southern system, the only tax effect that occurs from the filing of a consolidated Federal Income Tax Return relates to the allocation of Southern Company's Tax loss on taxable income to the members of the consolidated group. Gulf Power records its portion of the tax loss from Southern Company as a capital contribution. The reduction in income tax expense is recorded at The Southern Company. 5 6 The Southern Company's consolidated tax reduction should not be treated as a reduction in Gulf Power Company's tax expense for ratemaking purposes because the related expenses creating the benefit have not been included in expenses for ratemaking purposes. 7 8 9 10 11 The tax loss of The Southern Company results from the deductions of various corporate expenses of The Southern Company such as Annual Report costs, director's fees and expenses, stockholders' meeting expenses, transfer agents and dividend paying agent's fees and expenses, legal fees and interest expenses. These expenses of The Southern Company are not paid by Gulf Power Company, its ratepayers or any other company included in this affiliated group. These expenses are borne solely by the stockholders of The Southern Company rather than the ratepayers of Gulf Power Company. 12 13 14 If The Southern Company were to allocate its expenses to the operating companies, and if these expenses were included in the computation of Gulf's net operating income for ratemaking purposes, then, and only then, would it be appropriate for the related tax reduction to be included as an adjustment and "passed on." 15 16 The requested information will be made available for your review at the Company's General Office located at 500 Bayfront Parkway, Pensacola, FL 32501. Supporting Schedules: Recap Schedules: Schedule C-28 FLORIDA PUBLIC SERVICE COMMISSION MISCELLANEOUS TAX INFORMATION EXPLANATION: Provide the requested miscellaneous tax information. Page 1 of 1 Type of Data Shown: Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 X Historical Year Ended 12/31/15 Witness: J. J. Hodnett COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI Line No. (1) (2) (3) (4) 74 2 1. For profit and loss purposes, which IRC section 1552 method is used for tax allocation? 1552(a)(1) 3 2. What tax years are open with the IRS? 2013, 2014 and forward 4 5 6 7 3. For the last three tax years, what dollars were paid to or received from the parent for federal income taxes? 8 9 4. How were the amounts in (3) treated? 10 11 5. For each of the last three years, what was the dollar amount of interest deducted on the parent ONLY tax return? 12 13 14 15 16 17 6. Complete the following chart for the last three years: 2013 $1,057,788 Federal Income Tax Paid (Received) (5) (6) 2014 $30,725,176 2015 ($2,231 ,859) (7) (8) Estimated payments were remitted to The Southen Company (parent) who remitted the consolidated payment to the IRS. 2013 $35,606,153 2014 $42,659,304 2015 $68,797,286 Income (loss) Book Basis a Tax Basis Year 2014 ($207,632,980) Parent Only 2013 ($8,228,226) Year 2014 ($21 ,920,254) 18 Applicant Only $124,429,330 $140,175,560 $148,000,075 $3,351,441 $89,693,465 19 Total Group $1,644,327,238 $1,962,810,804 $2,366,938,709 $793,732,849 $16,744,133 $862,006,905 20 21 Total Group Excluding Parent & Applicant $1,528,126,134 $1,844,555,498 $2,271 ,889,436 $1 ,006,088,481 $134,683,648 $1 '140,987,319 22 (a) Net Income After Dividends on Preferred and Preference Stock Supporti~g Schedules: 2015 ($52,950,802) 2013 ($215,707,073) Recap Schedules: 2015 ($273,908,274) ($5,072, 140) Schedule C-29 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI GAINS AND LOSSES ON DISPOSITION OF PLANT OR PROPERTY EXPLANATION: Provide a schedule of gains and losses on disposition of plant and property previously used in providing electric service for the test year and the four prior years. List each item with a gain or loss of $1 million or more, or more than .1% of total plant. List amounts allowed in prior cases, and the test year of such prior cases. Page 1 of 1 Type of Data Shown: ~ Projected Test Year Ended 12/31/17 ~ Prior Year Ended 12/31/16 ~Historical Year Ended 12/31/13-12/31/15 Witness: J. J. Hodnett, S. D. Ritenour (OOOs) (1) (2) (3) (4) (5) (6) (7) (8) (9) (1 0) Line No Description of Property Date Acquired Date Disposed Original Classification Account Reclassification Account(s) Reclassification Date(s) Original Amount Recorded Additions or (Retirements) Depreciation and Amortization (11) Net Book Value on Disposal Date (12) Gain or (Loss) (13) Amounts Allowed Prior Cases (14) Prior Cases Test Year Ended 12/31/17 75 2017 No gains or losses, in excess of $1 million, on dispositions of property are forecasted. N/A N/A 2 2016 No gains or losses, in excess of $1 million, on dispositions of property are forecasted. N/A N/A 3 2015 No gains or losses, in excess of $1 million, on dispositions of property. N/A N/A 4 2014 No gains or losses, in excess of $1 million, on dispositions of property. N/A N/A 5 2013 No gains or losses, in excess of $1 million, on dispositions of property. N/A N/A Supporting Schedules: Recap Schedules: TRANSACTIONS WITH AFFILIATED COMPANIES EXPLANATION: Provide a schedule detailing transactions with affiliated companies and related parties for the test year including intercompany charges, licenses, contracts and fees. Schedule C-30 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI (1) Line No. Name of Company Or Related Party Alabama Power Company 2 Georgia Power Company 3 4 (2) (3) (4) Relation to Utility Type of Service Provided or Received Effective Contract Date Associated Company Transmission Facility Services Various 12,649 567 12,649 Cost Associated Company Plant Scherer Unit 3 Transmission Facility Services 03/01/84 05/12/09 13,487 Various 567 13,487 Per Contract Cost 13,487 13,487 76 5 Mississippi Power Company Associated Company Plant Daniel Transmission Facility Services 6 7 8 Southern Company Services Service Company 9 10 11 12 13 Southern Company 14 15 Page 1 of 1 Type of Data Shown: __ X_ Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: J. J. Hodnett (5) (6) (7) (8) Amount Charge or Credit Included in Allocation Method Used During Year Test Year to Allocate Charges $000s Account $000s Between Companies Parent Company 16 Service Agreement Interchange- Purchases Interchange- Sales Unit Power Sales Common Stock Dividends Capital Contributions 06/01/81 04/20/81 33,772 146 33,918 Various 567 33,772 146 33,918 Cost Cost 01/01/84 05/01/07 05/01/07 Various 66,676 6,150 (120,568) (19,652) (67,395) Various Various Various Various 66,676 6,150 (120,568) (19,652) (67,395) Cost Cost Cost Cost n/a n/a 120,600 (150,000) (29,400) 238 211 120,600 (150,000) (29,400) Earnings n/a TOTAL Transactions with Affiliated Companies (36,740) (36,740) 17 Note: The amounts shown above are the significant amounts included in Gulf's financial forecast that could be specifically identified as transactions to be made with an 18 affiliate. The affiliated transactions shown are not all-inclusive. Gulf's budgeting process does not include the identification of specific vendors (affiliated or non19 affiliated) that will be utilized in company transactions. 20 Totals may not add due to rounding. Supporting Schedules: Recap Schedules: Schedule C-31 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY AFFILIATED COMPANY RELATIONSHIPS EXPLANATION: Provide a copy of the diversification report included in the company's most recently filed Annual Report as required by Rule 25-6.135, Florida Administrative Code. Provide any subsequent changes affecting the test year. DOCKET NO.: 160186-EI ( 1) (2) (3) (4) (5) Page 1 of 28 Type of Data Shown: Projected Test Year Ended 12/31/17 -Prior Year Ended 12/31/16 X Historical Test Year Ended 12/31/15 Witness: J.J. Hodnett (6) Line No. See Attachment- Gulf Power Company's most recently filed Diversification report. 77 Supporting Schedules: Recap Schedules: (7) Schedule C-31 Docket No. 160186-EI Page 2 of 28 Affiliation of Officers and Directors Company: For the Year Ended December 31, 2015 ··. " . .. . ·.. . " .. . .... ·.. ; ; ; ;·; .: .: ' For each of the officials named in Part I ofthe Executive Summary, list the principal occupation or business affiliation if other than listed in Part I of the Executive Summmy and all affiliations or connections with any other business or financial organizations, firms, or partnerships. For purposes of this part, the official will be considered to have an affiliation with any business or financial organization, firm or partnership in which he is an officer, director, trustee, partner, or a person exercising similar functions. Name Principal Occupation or Business Affiliation Affiliation or Connection with any Other Business or Financial Organization Firm or Partnership Affiliation or Name and Address Connection Officers: Michael L. Burroughs Director Florida Solar Policy Advisory Board Cocoa, Florida Director Pensacola Sports Association Pensacola, Florida Director Southeast Labor and Management Public Affairs Committee (SE LAMPAC) Birmingham, AL Bentina C. Terry Director I Vice Chair Pensacola Symphony Orchestra Pensacola, Florida Director I Chair Leadership Florida Tallahassee, Florida Trustee Florida Chamber of Commerce Foundation Tallahassee, Florida Director Florida Chamber of Commerce Tallahassee, Florida Director Innovation Coast Pensacola, Florida Chair Gulf Power Foundation Pensacola, Florida Director Gulf Power Economic Development Fund Pensacola, Florida Director American Association of Blacks in Energy Washington, D.C. Page 451 78 Schedule C-31 Docket No. 160186-EI Page 3 of 28 Affiliation of Officers and Directors Company: For the Year Ended December 31, 2015 For each of the officials named in Part 1 of the Executive Summary, list the principal occupation or business affiliation if other than listed in Part 1 of the Executive Summary and all affiliations or connections with any other business or financial organizations, firms, or partnerships. For purposes of this part, the official will be considered to have an affiliation with any business or financial organization, firm or partnership in which he is an officer, director, trustee, partner, or a person exercising similar functions. Name Terry (continued) Affiliation or Connection with any Other Business or Financial Organization Firm or Partnership Affiliation or Name and Address Connection Principal Occupation or Business Affiliation Trustee University of West Florida Pensacola, Florida Directors: Director Stan W. Connally Florida Chamber of Commerce Tallahassee, Florida DirectorNice Chair Enterprise Florida Tallahassee, Florida Director James Madison Institute Tallahassee, Florida Director Aerospace Alliance Jackson, Mississippi Director Gulf Coast Kid's House Pensacola, Florida Director Triumph Gulf Coast, Inc. Tallahassee, Florida Member Florida Council of 100 Tallahassee, Florida Director Greater Pensacola Chamber of Commerce Foundation Board Pensacola, Florida Advisory Board Georgia Tech Woodruff School of Mechanical Engineering Atlanta, GA Page 451.1 79 Schedule C-31 Docket No. 160186-EI Page 4 of 28 Affiliation of Officers and Directors Company: For the Year Ended December 31, 2015 For each of the officials named in Part 1 of the Executive Summary, list the principal occupation or business affiliation if other than listed in Part 1 of the Executive Summary and all affiliations or connections with any other business or financial organizations, firms, or partnerships. For purposes of this part, the official will be considered to have an affiliation with any business or financial organization, firm or partnership in which he is an officer, director, trustee, partner, or a person exercising similar functions. Name Allan G. Sense Affiliation or Connection with any Other Business or Financial Organization Firm or Partnership Affiliation or Name and Address Connection Principal Occupation or Business Affiliation Director I Bay Economic Development Council Panama City, Florida Partner Bay West Developers, LLC Panama City, Florida Partner Bayou George Farms, LLC Panama City, Florida Partner Bass, Bense, Hall & Bozarth Panama City, Florida Managing Partner Sense Corporate Holdings, LLC Panama City, Florida President I CEO Bense Enterprise, Inc. Panama City, Florida Partner Bense Farms, LLC Panama City, Florida Managing Partner Bense Investments, LLC Panama City, Florida Managing Partner Bense Properties, LLC Panama City, Florida Partner Brown Insurance Services, LLC Panama City, Florida Page 451.2 80 Schedule C-31 Docket No. 160186-EI Page 5 of 28 Affiliation of Officers and Directors Company: For the Year Ended December 31, 2015 For each of the officials named in Part 1 of the Executive Summary, list the principal occupation or business affiliation if other than listed in Part 1 of the Executive Summary and all affiliations or connections with any other business or financial organizations, firms, or partnerships. For purposes of this part, the official will be considered to have an affiliation with any business or financial organization, firm or partnership in which he is an officer, director, trustee, partner, or a person exercising similar functions. Name Bense (continued) Affiliation or Connection with any Other Business or Financial Organization Firm or Partnership Principal Occupation or Business Affiliation Affiliation or Connection Director Name and Address Capital City Bank Group Tallahassee, Florida Partner Emerald Coast Investment Properties, LLC Panama City, Florida Partner Emerald Coast Striping, LLC Panama City, Florida Director I Florida Chamber of Commerce Past Chairman Tallahassee, Florida Trustee Florida State University Tallahassee, Florida President GAC Contractors, Inc. & Affiliates Panama City, Florida Director I Gulf Coast Medical Center Chairman Panama City, Florida President Holiday Golf & Racquet Club, Inc. Panama City, Florida Director I James Madison Institute Chairman Tallahassee, Florida Director LEAD Coalition of Bay County Panama City, Florida Page 451.3 81 Schedule C-31 Docket No. 160186-EI Page 6 of 28 Affiliation of Officers and Directors Company: For the Year Ended December 31, 2015 For each of the officials named in Pari 1 of the Executive Summary, list the principal occupation or business affiliation if other than listed in Part 1 of the Executive Summary and all affiliations or connections with any other business or financial organizations, firms, or partnerships. For purposes of this part, the official will be considered to have an affiliation with any business or financial organization, firm or partnership in which he is an officer, director, trustee, partner, or a person exercising similar functions. Name Principal Occupation or Business Affiliation Sense (continued) Affiliation or Connection with any Other Business or Financial Organization Firm or Partnership Affiliation or Connection Name and Address Trustee Robert Starr Johnson Trust Panama City, Florida Officer T.D.W. Inc. Panama City, Florida Chairman I Triumph Gulf Coast, Inc. Board Member Tallahassee, Florida Managing Partner Woodland Heights Associates, LLC Panama City, Florida Deborah H. Calder Exec Vice President Navy Federal Credit Union Pensacola, Florida Director Greater Pensacola Chamber of Commerce Foundation Board Pensacola, Florida Trustee Sacred Heart Health System Pensacola, Florida William C. Cramer, Jr. Automobile Dealer President/ Bill Cramer Chevrolet Cadillac Owner Buick GMC, Inc. Panama City, Florida Director Florida College System Foundation Tallahassee, Florida President I Trustee I Director Page 451.4 82 Bunkers Cove Reinsurance Company, Ltd. Schedule C-31 Docket No. 160186-EI Page 7 of 28 Affiliation of Officers and Directors Company: For the Year Ended December 31, 2015 For each of the officials named in Part 1 ofthe Executive Summary, list the principal occupation or business affiliation if other than listed in Part 1 of the Executive Summary and all affiliations or connections with any other business or financial organizations, firms, or partnerships. For purposes of this part, the official will be considered to have an affiliation with any business or financial organization, firm or partnership in which he is an officer, director, trustee, partner, or a person exercising similar functions. Name Principal Occupation or Business Affiliation Cramer (continued) Affiliation or Connection with any Other Business or Financial Organization Firm or Partnership Affiliation or Name and Address Connection President! Outlet Rental Car Sales of Dothan, Inc. Owner Dothan, Alabama President! Cramer Properties, Inc Owner Panama City, Florida President! Cramer Properties of Alabama, Inc. Owner Dothan, Alabama Board member Gulf Coast State College Foundation Panama City, Florida President! Cramer Investments, LLC Partner Panama City, Florida President! Cramer Brothers Investments, LLC Partner Dothan, Alabama Director Ceres Technologies, Inc. Panama City, Florida Trustee The Cramer Family Limited Partnership Panama City, Florida Julian B. MacQueen Hotel Owner Founder & CEO lnnisfree Hotels Gulf Breeze, FL Director Beach Community Bank Ft. Walton Beach, FL Member Aerose, LLC Gulf Breeze, FL Page 451.5 83 Schedule C-31 Docket No. 160186-EI Page 8 of 28 Affiliation of Officers and Directors Company: For the Year Ended December 31, 2015 For each of the officials named in Part 1 of the Executive Summary, list the principal occupation or business affiliation if other than listed in Part 1 of the Executive Summary and all affiliations or connections with any other business or financial organizations, firms, or partnerships. For purposes of this part, the official will be considered to have an affiliation with any business or financial organization, firm or partnership in which he is an officer, director, trustee, partner, or a person exercising similar functions. Name MacQueen (continued) Principal Occupation or Business Affiliation Affiliation or Connection with any Other Business or Financial Organization Firm or Partnership Affiliation or Name and Address Connection Member Aloft Aviation Gulf Breeze, FL Member Balmaquien Hospitality Orange Beach, AL Member Balmaquien Manager Inc. Camden, Delaware Member Baybridge Building, LLC Gulf Breeze, FL Member Beach Hospitality Sunrise Fulford, LLC Mobile, AL President/Director Blue Skye Productions Inc. Mobile, AL Limited Partner Calumet Office Park Ltd Mobile, AL Member Club Coco, LLC Gulf Breeze, FL Member CRR Hospitality Orange Beach, AL Member Deka, LLC Gulf Breeze, FL Member Emerald Breeze Hospitality Gulf Breeze, FL Member Emerald Breeze Resort Group Gulf Breeze, FL Page 451.6 84 Schedule C-31 Docket No. 160186-EI Page 9 of 28 Affiliation of Officers and Directors Company: For the Year Ended December 31, 2015 For each of the officials named in Part 1 ofthe Executive Summary, list the principal occupation or business affiliation if other than listed in Part 1 of the Executive Summary and all affiliations or connections with any other business or financial organizations, firms, or partnerships. For purposes ofthis part, the official will be considered to have an affiliation with any business or financial organization, firm or partnership in which he is an officer, director, trustee, partner, or a person exercising similar functions. Name MacQueen (continued) Principal Occupation or Business Affiliation Affiliation or Connection with any Other Business or Financial Organization Firm or Partnership Affiliation or Connection Name and Address Member Fulford Harbour, LLC Gulf Breeze, FL Member Fulford I Holdings Gulf Breeze, FL Member Fulford II Mobile, AL Member Fusion Spa of Alabama, LLC Orange Beach, AL Member Fusion Spa Salon Panama City Beach Panama City, FL Member GS Investments, LLC Gulf Breeze, FL Member H&S Development, LLC Gulf Breeze, FL Member High & Dry, LLC Wilmington, DE Member lnnisfree Development Corporation Gulf Breeze, FL President lnnisfree Jet Center Gulf Breeze, FL Managing Member Interchange Supply International, LLC Gulf Breeze, FL President/Director JBM GP, Inc. Gulf Breeze, FL Page 451.7 85 Schedule C-31 Docket No. 160186-EI Page 10 of 28 Affiliation of Officers and Directors Company: For the Year Ended December 31, 2015 For each of the officials named in Part 1 of the Executive Summary, list the principal occupation or business affiliation if other than listed in Part 1 of the Executive Summary and all affiliations or connections with any other business or financial organizations, firms, or partnerships. For purposes of this part, the official will be considered to have an affiliation with any business or financial organization, firm or parinership in which he is an officer, director, trustee, partner, or a person exercising similar functions. Name MacQueen (continued) Principal Occupation or Business Affiliation Affiliation or Connection with any Other Business or Financial Organization Firm or Partnership Affiliation or Name and Address Connection President/Director JMQ, Inc. Dover, DE Member Killington Hospitality Group I, LLC Gulf Breeze, FL Member Lafont Inn, LLC Pascagoula, MS Member Leading Edge Hospitality, LLC Gulf Breeze, FL Member M&B Holdings, LLC Gulf Breeze, FL President/Director MacAd, Inc. Mobile, AL President/Director MacQueen Enterprises Inc. Gulf Breeze, FL Member Maddo Hospitality Gulf Breeze, FL Member Maple Ventures, LLC Gulf Breeze, FL Member Median Hospitality Gulf Breeze, FL Member Metropolitan Hospitality, LLC Gulf Breeze, FL Page 451.8 86 Schedule C-31 Docket No. 160186-EI Page 11 of 28 Affiliation of Officers and Directors Company: For the Year Ended December 31, 2015 For each of the officials named in Part 1 of the Executive Summary, list the principal occupation or business affiliation if other than listed in Part 1 of the Executive Summary and all affiliations or connections with any other business or financial organizations, firms, or partnerships. For purposes of this part, the official will be considered to have an affiliation with any business or financial organization, firm or partnership in which he is an officer, director, trustee, partner, or a person exercising similar functions. Name MacQueen (continued) Principal Occupation or Business Affiliation Affiliation or Connection with any Other Business or Financial Organization Firm or Partnership Affiliation or Name and Address Connection Member Mezzo Hospitality Gulf Breeze, FL Member Middle Earth Hospitality Gulf Breeze, FL Member Middling Hospitality Gulf Breeze, FL Member Midway Hospitality, LLC Gulf Breeze, FL Member Panama City Beach Hotel, LLC Mobile, AL Managing Member Perdido Cove, LLC Gulf Breeze, FL Limited Partner Perdido Hospitality, Ltd Gulf Breeze, FL Member Purg Hospitality Gulf Breeze, FL President/Director Romar Motels, Inc. Orange Beach, AL Member Sandspur Development, LLC Gulf Breeze, FL Member Seaside Hospitality, LLC Orange Beach, AL Page 451.9 87 Schedule C-31 Docket No. 160186-EI Page 12 of 28 Affiliation of Officers and Directors Company: For the Year Ended December 31, 2015 For each of the officials named in Part 1 of the Executive Summary, list the principal occupation or business affiliation if other than listed in Part 1 of the Executive Summary and all affiliations or connections with any other business or financial organizations, firms, or partnerships. For purposes of this part, the official will be considered to have an affiliation with any business or financial organization, firm or parinership in which he is an officer, director, trustee, pminer, or a person exercising similar functions. Name MacQueen (continued) Principal Occupation or Business Affiliation Affiliation or Connection with any Other Business or Financial Organization Firm or Partnership Affiliation or Connection Name and Address Managing Member Seawind Development, LLC Gulf Breeze, FL Member Seminole Breeze, LLC Gulf Breeze, FL Member Seminole Tide, LLC Gulf Breeze, FL Managing Member Sleepco Management, LLC Mobile, AL Member Soundside Center, LLC Gulf Breeze, FL Member Soundside Market, LLC Gulf Breeze, FL Member Southernmost Cabana Resort, LLC Gulf Breeze, FL Member Spa Group, LLC Gulf Breeze, FL Member Sunrise Hospitality, LLC Gulf Breeze, FL Member Sunrise I, LLC Gulf Breeze, FL Member Sunrise II, LLC Gulf Breeze, FL Page 451.10 88 Schedule C-31 Docket No. 160186-EI Page 13 of 28 Affiliation of Officers and Directors Company: For the Year Ended December 31, 2015 For each of the officials named in Part 1 of the Executive Summary, list the principal occupation or business affiliation if other than listed in Part 1 of the Executive Summary and all affiliations or connections with any other business or financial organizations, firms, or partnerships. For purposes of this part, the official will be considered to have an affiliation with any business or financial organization, firm or partnership in which he is an officer, director, trustee, partner, or a person exercising similar functions. Name Principal Occupation or Business Affiliation MacQueen (continued) Affiliation or Connection with any Other Business or Financial Organization Firm or Partnership Affiliation or Name and Address Connection Managing Member Surf & Sand Development, LLC Gulf Breeze, FL Vice President/Director Surf and Sand Realty Gulf Breeze, FL Member Tin Can Communication Gulf Breeze, FL J. Mort O'Sullivan, Ill CPA Managing Member Warren Averett, LLC Pensacola, Florida Director Area Holdings, LLC Mebane, North Carolina Advisory Board Member Landrum Companies Pensacola, Florida Trustee University of West Florida Pensacola, Florida Michael T. Rehwinkel Executive Chairman EVRAZ North America Chicago, IL Winston E. Scott Senior Vice President for External Florida Institute of Technology Melbourne, Florida Relations Director Page 451.11 89 Environmental Tectonics Corporations Schedule C-31 Docket No. 160186-EI Page 14 of 28 Business Contracts with Officers, Directors and Affiliates Company: For the Year Ended December 31, 2015 List all contracts, agreements, or other business arrangements* entered into during the calendar year (other than compensation-related to position with respondent) between the respondent and each officer and director listed in Part 1 of the Executive Summary. In addition, provide the same information with respect to professional services for each firm, partnership, or organization with which the officer or director is affiliated. Note: * Business agreement, for this schedule, shall mean any oral or written business deal which binds the concerned parties for products or services during the reporting year or future years. Name of Officer or Director J. Mort O'Sullivan, Ill Name and Address of Affiliated Entity Amount Warren Averett Identification of Product or Service 1,065.00 Accounting Services 316 S. Baylen St., Suite 300 Pensacola, FL 32502 Page 452 90 Schedule C-31 Docket No. 160186-EI Page 15 of 28 Reconciliation of Gross Operating Revenues Annual Report versus Regulatory Assessment Fee Return Company: Gulf Power Company (a) Line No. Description For the Year Ended December 31, 2015 For the current year, reconcile the gross operating revenues as reported on Page 300 of this report with the gross operating revenues as reported on the utility's regulatory assessment fee return. Explain and justify any differences between the reported gross operating revenues in column (h . (b) (e) (g) (f) (~(d) Gross Operating lntersta djusted Intrastate Gross Operating Revenues per Sales for Gross Operating Revenues per Sales for oss Operating Page 300 Adjust Revenues RAF Return Adjust Revenues l,jLj,lL4,1Uf l,jLj,lL4,1Uf 1 ,jL3, 1L4, lUI 1,3:l3, 1:l4, 1U7 166,436,070 136,914,599 29,521,470 166,436,070 136,914,599 29,521,470 '''"rn'~''"' '"~'"'" 1 11 otal ::Sales to Ultimate customers (440-44b, 441::l) 2 3 4 Total Sales of Electricity Provision for Rate Refunds (449.1) 1,489,560,177 (446,080) 136,914,599 5 Total Net Sales of Electricity 1 ,489,114,097 136,914,599 6 Total Other Operating Revenues (450-456) 7 8 9 Other (Specify) 10 Total Gross Operating Revenues Sales for Resale (447) - (6, 108, 040) 1,483,006,057 1,352,645,578 (446,080) 1 ,489,560,177 (446,080) 136,914,599 1,352,645,578 (446,080) 1 ,352, 199,498 1 ,489,114,097 136,914,599 1 ,352,199,498 (6, 108,040) 136,914,599 Notes: Page 453 91 1,346,091,458 (6, 108,040) (6,108,040) 1 ,483,006,057 136,914,599 1,346,091,458 (h) Difference (d)-(g) Schedule C-31 Docket No. 160186-EI Page 16 of 28 Analysis of Diversification Activity Changes in Corporate Structure Company: For the Year Ended December 31, 2015 Provide any changes in corporate structure including partnerships, minority interest, and joint ventures and an updated organizational chart, including all affiliates. Effective Date (a) Description of Change (b) No change for 2015 Page 454 92 Schedule C-31 Docket No. 160186-EI Page 17 of28 Analysis of Diversification Activity New or Amended Contracts with Affiliated Companies Company: For the Year Ended December 31, 2015 Provide a synopsis of each new or amended contract, agreement, or arrangement with affiliated companies for the purchase, lease, or sale ofland, goods, or services (excluding tariffed items). The synopsis shall include, at a minimum, the terms, price, quantity, amount, and duration ofthe contracts. Name of Affiliated Company (a) Synopsis of Contract (b) No new or amended contract, agreement, or arrangement with affiliated companies during 2015. Page 455 93 Schedule C-31 DocketNo. 160186-EI Page 18 of 28 Analysis of Diversification Activity Individual Affiliated Transactions in Excess of $500,000 Company: For the Year Ended December 31, 2015 Provide information regarding individual affiliated transactions in excess of $500,000. Recurring monthly affiliated transactions which exceed $500,000 per month should be reported annually in the aggregate. However, each land or property sales transaction even though similar sales recur, should be reported as a "non-recurring" item for the period in which it occurs. Name of Affiliate (a) Description of Transaction (b) Dollar Amount (c) Alabama Power Regional Maintenance Georgia Power Company Plant Scherer Unit No. 3 - Capital Cost, Fuel Purchases, O&M Expenses and Labor Benefits and Taxes Mississippi Power Company Plant Daniel - Capital Cost, Fuel Purchases, O&M expenses and Labor Benefits and taxes 168,527,409 Southern Company Services, Inc. Common Stock Dividends Paid 139,162,500 Professional Services Other Payments to SCS Payroll Related Interchange Fuel Stock- Gas Pensions & Benefits Transmission Service Sales to SCS Interchange Wholesale Contracts Billed by SCS Transmission Service Common Stock Sales Customer Bill Collection Remittance Income Taxes Professional Services Gas Contracts Manual Billings Page 456 94 524,080 42,277,746 80,548,580 60,105,861 16,618,397 202,704,092 20,205,528 3,875,280 39,194,873 73,707,324 45,585 20,000,000 56,801,231 6,690,223 1,965,245 167,809 2,331,385 Schedule C-31 Docket No. 160186-EI Page 19 of 28 Analysis of Diversification Activity Summary ofAffiliated Transfers and Cost Allocations Company: For the Year Ended December 31, 2015 Grouped by affiliate, list each contract, agreement, or other business transaction exceeding a cumulative amount of $300 in any one year, entered into between the Respondent and an affiliated business or financial organization, firm, or partnership identifying parties, amounts, dates, and product, asset, or service involved. (a) Enter name of affiliate. (b) Give description of type of service, or name the product involved. (c) Enter contract or agreement effective dates. (d) Enter the letter "p" ifthe service or product is purchased by the Respondent: "s" ifthe service or product is sold by the Respondent. (e) Enter utility account number in which charges are recorded. (f) Enter total amount paid, received, or accrued during the year for each type of service or product listed in column (c). Do not net amounts when services are both received and provided. Total Charge for Year Name of Affiliate (a) Alabama Power Company Georgia Power Company Relevant Contract or Agreement and Effective Date (c) "p" or Capital Construction Fuel & Fuel Testing Generation Maintenance Transmission Transactions Customer Expenses Materials Misc. Business Transaction Storm Charges Material Railcar Charges Misc. Business Trans. None None None None None None None None None None None p Plant Scherer Unit No. 3 Materials Misc. Business Transactions Customer Service Material Railcar Misc. Business Trans. Cost of Ownership None None None None None None Type of Service and/or Name of Product (b) Page 457 95 "s" (d) p p p p p Account Number (e) 309 500-509 510-514 566,570 903 p Various Various s s s s 146 146 146 146 p Various Various Various p p p s s s 903 146 146 146 Dollar Amount (f) 137,457 131,183 524,080 126,695 368,230 218,824 511,072 256,201 40,137 243 209,428 42,277,746 79,902 163,000 15,656 67,984 43,218 1,430,740 Schedule C-31 Docket No. 160186-EI Page 20 of 28 Analysis of Diversification Activity Summary ofAffiliated Transfers and Cost Allocations Company: For the Year Ended December 31,2015 Grouped by affiliate, list each contract, agreement, or other business transaction exceeding a cumulative amount of $300 in any one year, entered into between the Respondent and an affiliated business or financial organization, firm, or partnership identifying parties, amounts, dates, and product, asset, or service involved. (a) Enter name of affiliate. (b) Give description of type of service, or name the product involved. (c) Enter contract or agreement effective dates. (d) Enter the letter "p" if the service or product is purchased by the Respondent: "s" if the service or product is sold by the Respondent. (e) Enter utility account number in which charges are recorded. (f) Enter total amount paid, received, or accrued during the year for each type of service or product listed in column (c). Do not net amounts when services are both received and provided. Total Charge for Year Name of Affiliate (a) Mississippi Power Company Type of Service and/or Name of Product (b) Relevant Contract or Agreement and Effective Date (c) Trans. Facilities Services Plant Daniel Materials Misc. Business Transactions Material Railcar Tow Boat Storm Charges Misc. Business Trans. 4/20/I98I Cost of Ownership None None None None None None None "p" or "s" (d) p Account Number (e) Dollar Amount (f) s s s s s 567 Various Various Various I46 I46 I46 I46 I46 I52,343 I67,903,524 623,885 -3,456 29,746 93I,338 27,239 I23,649 429,970 None p 238 I39,I62,500 Service Agreement I/1/1984 Amended 9/6/1985 p Various 364,896,362 Interchange Interchange 2/17/2000 2/17/2000 p Various I46 I6,6I8,397 39,I94,873 Southern Company Services, Inc Common Stock Dividends Paid p p p s Transmission Service Transmission Service Various Various p s 234 I46 3,875,280 45,585 Wholesale Contracts Billed by SCS Common Stock Sales Customer Bill Collection Remittance Income Taxes Professional Services Occupancy Misc. Business Transactions Various Various Various Various Various Various None s s s s s s s I43, I46 Various Various Various I46 I46 I46 73,707,324 20,000,000 56,801,231 6,690,223 1,965,245 466,474 621,600 Page 4)7.1 96 Schedule C-31 DocketNo. 160186-EI Page 21 of 28 Analysis of Diversification Activity Summary ofAffiliated Transfers and Cost Allocations Company: For the Year Ended December 31, 2015 Grouped by affiliate, list each contract, agreement, or other business transaction exceeding a cumulative amount of $300 in any one year, entered into between the Respondent and an affiliated business or financial organization, firm, or partnership identifying parties, amounts, dates, and product, asset, or service involved. (a) Enter name of affiliate. (b) Give description of type of service, or name the product involved. (c) Enter contract or agreement effective dates. (d) Enter the letter "p" ifthe service or product is purchased by the Respondent: "s" if the service or product is sold by the Respondent. (e) Enter utility account number in which charges are recorded. (f) Enter total amount paid, received, or accrued during the year for each type of service or product listed in column (c). Do not net amounts when services are both received and provided. Total Charge for Year Name of Affiliate (a) Southern Line Type of Service and/or Name of Product (b) Relevant Contract or Agreement and Effective Date (c) "p" or I 011/1995 I 0/1/1995 1011/1995 p p Materials Misc. Business Transaction Misc. Business Transaction Page 457.2 97 "s" (d) s Account Number (e) Various Various 146 Dollar Amount (f) 106,371 21,450 963 Schedule C-31 Docket No. 160186-EI Page 22 of 28 Analysis of Diversification Activity Assets or Rights Purchased from or Sold to Affiliates Company: Gulf Power Company For the Period Ended December 31, 2015 .. . · .. ' .. .. . ·• ., ..... .. < .• :• • ··.·· Provide a summary ot,affiliated transactions involving asset transfers or the right to use assets. Description Name of Affiliate Title of Asset Cost!Orig. Accumulated Net Book Fair Market Purchase Passed or Right Cost Depreciation Value Value Price Yes/No Purchases from Affiliates: $ $ $ $ $ Alabama Power Company Misc. Material 218,824 218,824 218,824 Yes Georgia Power Company Misc. Material 79,902 79,902 79,902 Yes Mississippi Power Company Misc. Material 15,700 15,700 15,700 Yes Southern Line Misc. Material 106,371 106,371 106,371 Yes - - Southern Power None - Total - $ 420,797 Sales to Affiliates: $ $ $ Sales Price $ Alabama Power Company Misc. Material 40,137 40,137 42,726 40,137 Yes Georgia Power Company Misc. Material 67,984 67,984 68,134 67,984 Yes Mississippi Power Company Misc. Material 29,746 29,746 42,749 29,746 Yes Total $ 137,867 Page 458 98 Schedule C-31 Docket No. 160186-EI Page 23 of 28 Analysis of Diversification Activity Employee Transfers Company: For the Year Ended December 31,2015 List employees earning more than $30,000 annually transferred to/from the utility to/from an affiliate company. Company Transferred From APC APC APC APC APC APC APC APC GPC GPC GPC GPC GPC GPC GPC MPC MPC MPC MPC scs scs scs scs scs scs scs SNC FPC FPC FPC FPC FPC FPC FPC FPC FPC FPC FPC FPC FPC FPC FPC FPC FPC FPC FPC FPC Company Transferred To Old Job Assignment New Job Assignment Transfer Permanent or Temporary and Duration FPC FPC FPC FPC FPC FPC FPC FPC FPC FPC FPC FPC FPC FPC FPC FPC FPC FPC FPC FPC FPC FPC FPC FPC FPC FPC FPC Chemical Tech Ill Crane Specialist, Sr Distribution Specialist, Sr. Distribution System Operator Division Area Manager Engineer I Market Specialist, IV Operations & Maintenance Mgr Accounting Supv Distribution System Operator Engineer, SR Laboratory Technician I (SDMS) Local Manager I Power System Coordinator Sr Region Sales Supervisor District Manager I Engineer, Sr Gasification Team Leader Gasification Team Leader Administrative Asst Sr (West) Aircraft Coordinator Sr (WEST) Engineer, SR Engineer, SR IT Supervisor SCM Specialist I SVP Finance & Treasurer EP Specialist Sr Chemical & Results Technician CBM Specialist, Sr Engineering Field Rep I Distribution System Operator Marketing & Sales GM Engineering Supervisor II Administrative Assistant, Sr Plant Manager Accounting Services & Tax Supv Distribution System Operator Engineer, SR Chemical & Results Technician District Construction Supv Power System Coordinator Sr District Sales Manager Community Relations Manager Engineer, SR Operations Specialist, Sr Team Leader- Maintenance Administrative Assistant, Sr Administrative Assistant, Sr Engineer, SR Power Generation Specialist Sr District Engineering Supv Buyer/Analyst, II Vice President and CFO Distribution System Operator Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent APC APC COM GPC GPC GPC GPC GPC GPC MPC MPC Distribution System Operator Engineer, SR Buyer/Analyst Sr CCC Representative I Customer Rep, Sr Distribution System Operator District Operations Mgr(E&C) Engineer, SR Power System Coordinator Sr Plant Manager Team Leader- Maintenance Administrative Assistant II Engineer I Engineer, SR Financial & Revenue Rept Supv Marketing & Sales GM Protection & Control Tech I Trans Ctrl Center Support Supv Vice President and CFO Chemical & Results Technician Page 459 Distribution System Operator Team Leader Planning Bus Assur & Contracts Coor, Sr Marketing Rep, Ill Customer Service Rep A Power System Coordinator II Distribution Manager I Engineering Supervisor II Power System Coordinator Sr Plant Mgr Operations Assistant Manager Administrative Assist II(West) IT Analyst Sr, Applications Engineer, Principal Financial Rptg Investor Sup Mg Product Development Director IT Supervisor EMS Operations Supervisor East Vice President Chemistry Technician Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent Permanent scs scs scs scs scs scs scs scs SNC 99 Schedule C-31 Docket No. 160186-EI Page 24 of 28 Ana(vsis of Diversification Activity Non-Tariffed Services and Products Provided by the Utility Company: For the Year Ended December 31, 2015 ". " .··· •"" Provide the following information regarding all non-tariffed services and products provided by the utility. Description of Product or Service Account No. (a) (b) Building Space/Office Furniture 929 Regulated or Non-regulated (c) Regulated I Non Regulated Professional Services 107, 165, 182, 186, 416-426, Regulated I Non 500-599, 902- Regulated 931 Material Transfers 154, 300-399, Regulated I Non 500-740 Regulated Safety, Health and Well ness 921' 923, 925, Regulated I Non 926,929 Regulated Miscellaneous Non-Electric Revenues-All Connect, Premium Surge, Commercial Surge 415 Non-reg u Ia ted Miscellaneous Service Revenues-Revenue protection fees 451 Regulated 454 Regulated I Non Regulated 456 Regulated I Non Regulated Rent from Electric Property-includes rent from pole attachments; from equipment devoted to electric operations including use of distribution lines and use of telecommunication transport assets by affiliates; land leases; use of cell towers on company land. Other Electric Revenues-Energy Direct.com, Energy Services/Timber Sales Transmission Services 350-359 Distribution Services 186 Other Non-Electric Revenue 502,593 Wood Chip Sales, Pot Ash Sale, Gypsum Sales Page 460 100 Regulated Regulated I Non Regulated Regulated Schedule C-31 Docket No. 160186-EI Page 25 of 28 Name of Respondent Gulf Power Company Date of Report This Report is: (Mo, Da, Yr) (1) [x] An Original (2) [] A Resubmission NONUTILITY PROPERTY (Account 121) Year of Report Dec. 31,2015 1. Give a brief description and state the location of non-utility property included in Account 121. 2. Designate with a double asterisk any property which is leased to another company. State name of lessee and whether lessee is an associated company. 3. Furnish particulars ( details ) concerning sales, purchases, or transfers of Non utility Property during the year. 4. List separately all property previously devoted to public service and give date of transfer to Account 121, Non utility Property. 5. Minor Items ( 5% of the Balance at the End of the Year), for Account 121 or $100,000, whichever is less may be grouped by (1) previously devoted to public service, or (2) Other Non utility Property. Line Description and Location (a) No. 1 Previously Devoted to Public Service: Balance of Beginning of Year (b) Purchases, Sales, Transfers, etc. (c) 347,220 1,550 348,770 181,083 11 '122,074 4, 187,106 0 0 196,013 181,083 11 '122,074 4,383,119 19,699 0 19,699 15,857,182 197,563 16,054,745 39 parcels of minor items previously Balance at End of Year (d) devoted to Public Service 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 Other Non-Utility Property Never Devoted to Public Blackwater Substation Site Operation Center Additional Land Surge Protection Equipment 3 parcels of minor items never devoted to Public Service $1,550 represents fee land at Baker substation moved from 101 (Plant In Service) to 121 $196,013 represents additions and retirements of surge protection equipment TOTAL Page 461 101 Schedule C-31 DocketNo. 160186-EI Page 26 of 28 Number of Electric Department Employees Company: For the Year Ended December 31, 2015 .. •.• 1. The data on number of employees should be reported for the payroll period ending nearest to October 31, or any payroll period ending 60 days before or after October 31. 2. If the respondent's payroll for the reporting period includes any special construction personnel, include such employees on line 3, and show the number of such special construction employees in a footnote. 3. The number of employees assignable to the electric department from joint functions of combination utilities may be determined by estimate, on the basis of employee equivalents. Show the estimated number of equivalent employees attributed to the electric department from joint functions. 1. Payroll Period Ended (Date) 2. Total Regular Full-Time Employees 3. Total Part-Time and Temporary Employees 4. Total Employees Details 12/18/2015 1382 9 1391 Total Employees does not include SCS Employees On-Site. Page 462 102 Schedule C-31 Docket No. 160186-EI Page 27 of 28 Particulars Concerning Certain Income Deductions and Interest Charges Accounts Company: For the Year Ended December 31,2015 . Report the information specified below, in the order given, for the respective income deduction and interest charges accounts. Provide a subheading for each account and a total for the account. Additional columns may be added if deemed appropriate with respect to any account. (a) Miscellaneous Amortization (Account 425) -- Describe the nature of items included in this account, the contra account charged, the total of amortization charges for the year, and the period of amortization. (b) Miscellaneous Income Deductions -- Report the nature, payee, and amount of other income deductions for the year as required by Accounts 426.1, Donations; 426.2, Life Insurance; 426.3, Penalties; 426.4, Expenditures for Certain Civic, Political and related Activities; and 426.5, Other Deductions, of the Uniform System of Accounts. Amounts of less than 5% of each account total for the year (or $1,000, whichever is greater) may be grouped by classes within the above accounts. (c) Interest on Debt to Associated Companies (Account 430) -- For each associated company to which interest on debt was incurred during the year, indicate the amount and interest rate respectively for (a) advances on notes, (b) advances on open account, (c) notes payable, (d) accounts payable, and (e) other debt, and total interest. Explain the nature of other debt on which interest was incurred during the year. (d) Other Interest Expense (Account 431) -- Report particulars (details) including the amount and interest rate for other interest charges incurred during the year. Item Miscellaneous Amortization of Utility (Account 425) Plant Acquisition Adjustment - Plant Scherer Common Facilities (Contra Account I 14 Amortized over a period of34 years) Subtotal - 425 Amount 255,312 255,312 Miscellaneous Income Deductions (Account 426) Account 426.1 - Donations 357,734 Donations - Community Vitality (2, 197,000) Donations - Tax Credits 383,675 Donations- Human Needs 2,123,158 Donations - Education 6,000 Donations - Environmental 6,904 Donations - Other Donations- Gulf Power Foundation 48,804 Donations - Transformer Labor 66,45I 17,606 Donations- Made indirectly through SCS 813,332 Subtotal - 426.1 9,993 Account 426.3 - Penalties Account 426.4 - Expenditures for Certain Civic, Political & Related Activities 891,966 Salaries and Wages 82,067 Employee Expenses 331,998 Office and Related Expenses 912,302 Organizations and Dues 2,018,483 Outside Services Employed/Consultants 28,617 PAC Expenses 4,265,433 Subtotal - 426.4 Page 463 103 Schedule C-31 Docket No. 160186-EI Page 28 of 28 Particulars Concerning Certain Income Deductions and Interest Charges Accounts Company: For the Year Ended December 31,2015 Report the information specified below, in the order given, for the respective income deduction and interest charges accounts. Provide a subheading for each account and a total for the account. Additional columns may be added if deemed appropriate with respect to any account. (a) Miscellaneous Amortization (Account 425) -- Describe the nature of items included in this account, the contra account charged, the total of amortization charges for the year, and the period of amortization. (b) Miscellaneous Income Deductions -- Report the nature, payee, and amount of other income deductions for the year as required by Accounts 426.1, Donations; 426.2, Life Insurance; 426.3, Penalties; 426.4, Expenditures for Certain Civic, Political and related Activities; and 426.5, Other Deductions, of the Uniform System of Accounts. Amounts of less than 5% of each account total for the year (or $1,000, whichever is greater) may be grouped by classes within the above accounts. (c) Interest on Debt to Associated Companies (Account 430) --For each associated company to which interest on debt was incuned during the year, indicate the amount and interest rate respectively for (a) advances on notes, (b) advances on open account, (c) notes payable, (d) accounts payable, and (e) other debt, and total interest. Explain the nature of other debt on which interest was incurred during the year. (d) Other Interest Expense (Account 431) -- Report particulars (details) including the amount and interest rate for other interest charges incuned during the year. Item Amount Account 426.5 - Other Deductions Miscellaneous Non-Operating Expenses Employee Fees, Dues in Civic/Social Clubs Employee Reserves and Settlements Energy Select Sales Mark to Market Loss - Secondary Electric Hedge 590,830 27,726 45,095 (242,887) (10,356) Subtotal - 426.5 410,408 Interest on Debt to Associated Companies (Account 430) Commercial Paper Program (Variable Interest Rate ranging from high of0.648 to a low of0.302) 373,648 Subtotal - 430 373,648 Other Interest Expense (Account 43 1) (109,633) Other Interest Expense (various rates) 675 . Other Interest Expense- UPS 844,264 Other Interest Expense- Customer Deposits Other Interest Expense- Notes Payable 67,891 Other Interest Expense - Tax Assessment 7,846 Other Interest Expense- FIN 48 (Federal) 6,182 Other Interest Expense- Environmental Over/Under Recovered (30 Day Commercial Paper Rate) (2,400) Other Interest Expense- Conservation Over/Under Recovered (30 Day Commercial Paper Rate) 2,103 Other Interest Expense- Fuel Over/Under Recovered (30 Day Commercial Paper Rate) 4,516 Other Interest Expense- Purchase Power Over/Under Recovered (30 Day Commercial Paper Rate) Other Interest Expense - Wholesale FPU Fuel (30 Day Commercial Paper Rate) I7 (420) 821,041 Subtotal - 431 6,949,167 Total Page 463.1 104 Schedule C-32 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY NON-UTILITY OPERATIONS UTILIZING UTILITY ASSETS EXPLANATION: Provide an analysis of all non-utility operations such as orange groves, parking lots, etc. that utilized all or part of any utility plant that are not included in Schedule C-31. DOCKET NO.: 160186-EI (1) (2) (3) (4) (5) Line No. Description Original Purchase Cost Te~YearRevenues Account No. (All Accts. 454) Page 1 of 1 Type of Data Shown: X Projected Test Year Ended 12/31/17 X Prior Year Ended 12/31/16 Historical Test Year Ended 12/31/15 Witness: S.D. Ritenour (6) (7) Expense Amounts Net Revenues 105 Not applicable to test year or prior year due to non-utility operations being removed from rate base. Supporting Schedules: Recap Schedules: Schedule C-33 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULFPOWERCOMPANY PERFORMANCE INDICES EXPLANATION: Provide a schedule for the last four prior years and the test year of other operation and maintenance expense summary by average customer, selected growth indices, selected growth rates and average number of customers. Page 1 of 2 Type of Data Shown: X Projected Test Year Ended 12/31/17 X Prior Year Ended 12/31/16 X Historical Years Ended 12/31/13-12/31/15 DOCKET NO.: 160186-EI Witness: S. D. Ritenour (1) (2) (3) (4) (5) (6) (7) Line 2017 2016 2015 2014 2013 No. Description Test Year Prior Year Actual Actual Actual 1 SUMMARY OF OTHER O&M EXPENSES, LESS FUEL-RELATED AND SCHERER 3 OFF SYSTEM EXPENSES (DOLLARS PER CUSTOMER) 106 2 3 4 5 6 7 8 9 Power Production Expense Transmission Expenses Distribution Expenses Customer Account Expenses Customer Service Expenses Sales Expenses Administration & General Expenses Total Other 0 & M Expenses 10 11 12 13 14 15 16 GROWTH INDICES Consumer Price Index Average Customer CPI Percent Increase Average Customer Percent Increase Index Percent CPI x Customer Growth Average Customer Increase 355.44 33.91 111.48 62.49 58.14 3.05 188.41 812.92 335.23 33.50 109.34 59.85 58.03 3.07 198.66 797.68 289.43 26.62 102.06 55.03 67.25 3.11 200.92 744.42 301.90 26.73 105.89 57.46 58.37 3.30 181.86 735.51 240.39 23.18 98.05 48.65 82.23 2.71 179.31 674.52 248.995 458,781 2.774% 1.464% 1.14523 6,618 242.275 452,163 2.123% 1.029% 1.09825 4,606 237.238 447,557 0.222% 1.173% 1.06446 5,187 236.712 442,370 1.610% t.068% 1.04979 4,673 232.962 437,698 1.464% 0.750% 1.02225 3,256 17 Totals may not add due to rounding. Supporting Schedules: C-40 Recap Schedules: C-36 Schedule C-33 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY PERFORMANCE INDICES EXPLANATION: Provide a schedule for the last four prior years and the test year of other operation and maintenance expense summary by average customer, selected growth indices, selected growth rates and average number of customers. DOCKET NO.: 160186-EI (1) (2) (3) Une 2017 No. Description Test Year 1 DOLLAR AMOUNTS, IN CURRENT DOLLARS AND ANNUAL GROWTH RATES FOR: 2 O&M Expense less Fuel per KWH Sold 3 Capital Cost per Installed Watt of Electricity 4 Revenue per KWH Sold 107 5 6 7 8 9 10 11 AVERAGE NUMBER OF CUSTOMERS Residential Commercial Industrial Street Ughting Other Sales to Public Authorities Total 0.0328 1,352 0.1137 Page 2 of 2 Type of Data Shown: X Projected Test Year Ended 12/31/17 X Prior Year Ended 12/31/16 X Historical Years Ended 12/31/13-12/31/15 Witness: S. D. Ritenour (4) (5) (6) (7) 2016 Prior Year 2015 Actual 2014 Actual 2013 Actual 0.0321 1,173 0.1107 0.0292 1'159 0.1186 0.0286 985 0.1131 401,542 56,376 253 609 395,467 55,835 251 609 391,465 55,234 249 609 386,765 54,749 258 597 382,599 54,261 258 578 458,781 452,163 447,557 442,370 437,698 12 Totals may not add due to rounding. Supporting Schedules: C-40 0.0270 975 0.1035 Recap Schedules: C-36 Schedule C-34 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY STATISTICAL INFORMATION Page 1 of 1 EXPLANATION: Provide the following statistical data Type of Data Shown: tor the company, by calendar year tor the most recent _Projected Test Year Ended 12/31/17 5 historical years. - Prior Year Ended 12/31/16 ___lLHistorical Years Ended 12/31/11- 12/31/15 DOCKET NO.: 160186-EI ( 1) (2) Line No. Descrif2tion 108 1 THE LEVEL AND ANNUAL GROWTH RATES FOR: 2 Peak Load (MW) 3 Peak Load Per Customer (KW) 4 Energy Sales (MWH) 5 Energy Sales Per Customer (KWH) 6 Number of Customers (Average) 7 Installed Generating Capacity (MW) 8 Population of Service Area 9 10 Witness: J. K. Park, M. L. Burroughs, W. E. Smith (6) (3) (4) (5) Year Year Year Year Year Average Annual 2011 2012 2013 2014 2015 Growth Rate {%} (7) (8) 2,535 2,351 2,362 2,694 2,495 (0.40) 5.86 5.41 5.40 6.09 5.57 (1.25) 11,407,228 10,987,828 10,929,745 11,390,698 11,400,419 (0.01) 26,381 25,292 24,971 25,749 25,472 (0.87) 432,403 434,441 437,697 442,370 447,558 0.86 2,663 2,663 2,663 2,663 2,583 (0.76) 882,080 899,870 914,410 928,620 942,670 1.67 End of Year Miles of Distribution Lines 7,710 7,723 7,721 7,713 7,729 0.06 End of Year Miles of Jurisdictional Transmission Lines 1,591 1,587 1,588 1,563 1,671 1.23 Supporting Schedules: Recap Schedules: Schedule C-35 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI (1) PAYROLL AND FRINGE BENEFIT INCREASES COMPARED TO CPI EXPLANATION: Provide the following payroll and fringe Type of Data Shown: benefits data for the historical, test year and two prior years. X Projected Test Year Ended 12/31/17 If a projected test year is used, provide the same data for L Prior Year Ended 12/31/16 the projected test year and prior years to include two Historical Year Ended 12/31/13-12/31/15 historical years. Witness: S. D. Ritenour (2) (4) (3) $Amount No. 1 (5) (6) 2017 Line (7) (8) %Inc %CPI 2016 % Inc % CPI $Amount Total Company Basis 2 Base Payroll 3 Variable Payroll 4 Total Payroll 5 Gross Average Salary 6 Fringe Benefits {including capitalized & clearing portions) 109 7 Medical and Other Group Insurance 8 Educational Assistance 121,023,102 2.62 2.77 117,928,494 10.43 21,988,159 1.15 21,739,031 -11.68 143,011,260 2.39 139,667,525 6.28 97,752 3.37 94,562 -0.12 14,255,244 4.12 13,691,648 1.33 150,000 7.14 140,000 11.93 -44.93 9 Relocation Assistance 1,349,857 0.00 1,349,857 10 Other Employee Benefits 772,681 29.16 598,233 24.33 11 Pension 450,000 -84.32 2,870,000 -61.33 12 Supplemental Pension 2,360,000 -4.45 2,470,000 -9.17 13 Employee Savings Plan 4,737,653 3.00 4,599,663 2.97 14 Post-Retirement Life 620,000 0.00 620,000 20.95 15 Post-Retirement Medical (less Subsidy) 2,300,000 -8.00 2,500,000 -8.24 16 Post-Retirement Supplemental 23,049 7.00 21,541 -25.04 17 Worker's Compensation 73,100 1.39 72,100 7.61 18 FICA, Federai,State Unemployment Taxes 19 Sub-Total- Fringes 9,879,958 2.88 9,603,544 2.34 36,971,542 -4.06 38,536,586 -12.21 20 Total Payroll and Fringes 179,982,802 1.00 178,204,111 1.65 21 Average Employees 1,463 -0.95 1,477 6.41 22 Payroll and Fringes Per Employee 123,023 1.96 120,653 -4.47 23 Page 1 of 2 2.12 Totals may not add due to rounding. Supporting Schedules: C-40 Recap Schedules: Schedule C-35 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI (1) PAYROLL AND FRINGE BENEFIT INCREASES COMPARED TO CPI EXPLANATION: Provide the following payroll and fringe Type of Data Shown: benefits data for the historical, test year and two prior years. _Projected Test Year Ended 12/31/17 If a projected test year is used, provide the same data for Prior Year Ended 12/31/16 the projected test year and prior years to include two X Historical Year Ended 12/31 /13-12/31 /15 historical years. Witness: S. D. Ritenour (2) (4) (3) (5) (6) (7) 2015 Line $Amount No. (8) 2014 %Inc %CPI $Amount Page 2 of 2 (9) 2013 %Inc %CPI $Amount Total Company Basis 2 Base Payroll 3 Variable Payroll 4 Total Payroll 5 Gross Average Salary 6 Fringe Benefits (including capitalized & clearing portions) 110 7 Medical and Other Group Insurance 8 Educational Assistance 9 Relocation Assistance 10 Other Employee Benefits 106,793,990 2.44 104,250,916 3.48 24,614,600 8.02 0.22 22,787,123 122.53 10,239,815 131,408,589 3.44 127,038,040 14.47 110,982,255 94,675 4.11 90,936 15.78 78,544 13,511,984 11.82 12,083,241 -5.91 12,842,130 125,079 -6.52 133,799 -29.86 190,756 2,451 '135 64.59 1,489,276 26.40 1'178, 184 1.61 100,742,440 481 '164 16.93 411,502 16.13 354,332 58.96 4,668,830 -50.65 9,459,837 11 Pension 7,421,549 12 Supplemental Pension 2,719,428 26.40 2,151,370 2.29 2, 103,114 13 Employee Savings Plan 4,467,161 6.69 4,186,878 2.32 4,091,889 14 Post-Retirement Life 15 Post-Retirement Medical (less Subsidy) 16 Post-Retirement Supplemental 17 Worker's Compensation 18 FICA, Federai,State Unemployment Taxes 19 Sub-Total- Fringes 512,621 -41.15 871,125 -4.37 910,897 2,724,449 15.61 2,356,682 -2.53 2,417,919 28,736 14761.22 (196) -99.24 (25,758) 67,001 5.27 63,648 0.67 63,223 9,384,265 0.20 9,365,317 14.27 8,196,034 43,894,570 16.18 37,781,471 -9.58 41,782,557 20 Total Payroll and Fringes 175,303,160 6.36 164,819,511 7.89 152,764,812 21 Average Employees 1,388 -0.64 1,397 -1.13 1,413 22 Payroll and Fringes Per Employee 126,299 7.05 117,981 9.13 108,114 23 Totals may not add due to rounding. Supporting Schedules: C-40 Recap Schedules: Schedule C-36 NON-FUEL OPERATION AND MAINTENANCE EXPENSE COMPARED TO CPI Page 1 of 1 in EXPLANATION: Provide a comparison of the change FLORIDA PUBLIC SERVICE COMMISSION Type of Data Shown: operation and maintenance the change in operation and X Projected Test Year Ended 12/31/17 maintenance expenses (excluding fuel) for the last three ll_Prior Year Ended 12/31/16 COMPANY: GULF POWER COMPANY years and the test year to CPl. ll_Historical Year Ended 12/31/14-12/31/15 DOCKET NO.: 160186-EI (1) Line No. Witness: S. D. Ritenour $000s (2) Description (3) (4) (5) 2017 2016 2015 (6) 2014 Non-Fuel Operations & Maintenance Expenses 111 2 3 (Excluding ECCR & ECRC & Transmission Energy & Capacity; Includes Other Regulatory Adjustments) 4 5 Percent Change in Non-Fuel Operations & Maintenance Expense Over Previous Year 6 Percent Change in CPI Over Previous Year 7 Difference Between Change in CPI and Non-Fuel Operations & Maintenance Expense 8 Supporting Schedules: C-1, C-33, C-40 319,813 4.664% 305,563 289,391 5.588% 0.222% 1.890% 3.465% 3.553% Recap Schedules: 278,863 O&M BENCHMARK COMPARISON BY FUNCTION EXPLANATION: For test year functionalized O&M expenses, provide the benchmark variances. Schedule C-37 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI (2) (1) Line No. Function (3) (4) Test Year Total Company O&M Per Books Adjustments ($000s) (5) (6) (7) Adjusted Test Year O&M Base Year Adjusted O&M Compound Multiplier Page 1 of 1 Type of Data Shown: _lLProjected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: S. D. Ritenour (8) (9) (1 0) Test Year Benchmark (6) X (7) Unadjusted Benchmark Variance Adjusted Benchmark Variance 112 Production - Steam 322,592 (218, 139) 104,453 95,311 1.08447 103,362 219,230 1,091 2 Production - Other 320,258 (306,978) 13,280 7,312 1.08447 7,930 312,328 5,350 3 Production - Other Power Supply 105,847 (1 01 ,426) 4,421 4,312 1.08447 4,676 101,171 4 Transmission 28,629 (12,061) 16,568 11,320 1.14523 12,964 15,665 3,604 5 Distribution 51' 147 (5,273) 45,874 39,877 1.14523 45,668 5,479 206 6 Customer Accounts 28,670 (940) 27,730 24,532 1.14523 28,095 575 (365) 7 Customer Service and Information 26,675 (9,692) 16,983 18,861 1.14523 21,600 5,075 (4,617) 8 Sales Expense 1,398 (242) 1,156 945 1.14523 1,082 316 74 9 Administrative and General 89,348 73,482 1.14523 84,154 2,895 5,194 10 Total 319,813 275,952 309,531 662,734 10,282 Supporting Schedules: C-38, C-39, C-40 87,049 972,265 2,299 (652,452) (255) Recap Schedules: C-41 0 & M ADJUSTMENTS BY FUNCTION EXPLANATION: Provide the detail of adjustments made to test year per books O&M expenses by function. Schedule C-38 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY (2) - {$000s~ DOCKET NO.: 160186-EI (1) Page 1 of 2 Type of Data Shown: _ll_Projected Test Year Ended 12/31/2017 (3) (4) (5) (6) Prior Year Ended 12/31/2016 Historical Year Ended 12/31/2015 Witness: S. D. Ritenour (7) (8) (9) (10) (11) (12) (13) Management Property Direct Fuel, Line Function No. Test Fuel-Related Year Expenses and Scherer Marketing Wholesale System Purchased Off-System Support Sales Institutional Economic Financial Insurance Per Books Power Sales Activities Expense Advertising Development Planning Reserve 0 0 ECCR ECRC Production 113 2 Steam Production 322,592 (174,918) (40,647) 3 Other Production 320,258 (306,882) (83) 4 Other Power Supply 105,847 (101 '155) 748,697 (582,955) (13,073) 5 Total Production 6 Transmission 28,629 7 Distribution 51,147 8 Customer Accounts 28,670 9 Customer Service & Information 26,675 10 Sales Expenses 87,049 12 Total Adjusted System O&M 972,265 Supporting Schedules: (10) (300) 0 (40,730) (2,675) 0 (310) 0 0 (4,013) (9,627) (178) 1,398 Administrative & General 11 (2,675) (596,028) (727) (845) (608) (10,354) (45,588) (3,283) (178) (61) (310) (200) (2) (43) 5,400 (200) (63) (43) 5,400 Recap Schedules: C-37, C-41 0 & M ADJUSTMENTS BY FUNCTION EXPLANATION: Provide the detail of adjustments made to test year per books O&M expenses by function. Schedule C-38 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY Page 2 of 2 Type of Data Shown: __lLProjected Test Year Ended 12/31/2017 - Prior Year Ended 12/31/2016 Historical Year Ended 12/31/2015 ($000s) DOCKET NO.: 160186-EI {1) {2) Line No. Function (3) (4) Tallahassee Rate {6) (5) Liason Case Expenses Expenses Witness: S. D. Ritenour (7) {8) (9) (10) {11) (12) Total Hiring Lag Generation Transmission LTE Customer Pension & Subtotal Adjusted System Kiosks OPRB Adjustments O&M Production 114 2 Steam Production (227) (410) 81 {218, 139) 104,453 3 Other Production {20) 0 7 (306,978) 13,280 4 Other Power Supply 0 0 29 (1 01 ,426) 4,421 117 {626,543) 122,154 0 {410) 1,123 (99) 22 (12,061) 16,568 (160) {1, 123) 23 (5,273) 45,874 Customer Accounts {92) (224) 26 (940) 27,730 Customer Service & Information (57) (19) 11 (9,692) 16,983 {242) 1,156 5 Total Production 6 Transmission 7 Distribution 8 9 0 0 (247) 667 667 (34) Administrative & General (549) 1,673 (270) {319) 12 Total Adjusted System O&M (549) 1,673 {863) 348 Supporting Schedules: (650) {3) 10 Sales Expenses 11 0 1'123 (225) (122) {864) (2,100) (772) (665) 2,299 (652,452) 89,348 319,813 Recap Schedules: C-37, C-41 Schedule C-39 BENCHMARK YEAR RECOVERABLE O&M EXPENSES BY FUNCTION FLORIDA PUBLIC SERVICE COMMISSION EXPLANATION: Provide adjustments to benchmark year O&M expenses related to expenses recoverable through COMPANY: GULF POWER COMPANY mechanisms other than base rates. Explain any adjustments. DOCKET NO.: 160186-EI ($000s) (1) (2) (4) (3) (5) (6) Eliminate Line No. Function Production Page 1 of 1 Type of Data Shown: l Projected Test Year Ended 12/31/12 _Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: S. D. Ritenour (7) (8) Other 2012 (1 0) (9) 2012 2012 Recoverable Fuel Eliminate Eliminate Regulatory Adjusted System and Purchased Recoverable Recoverable O&M System Function Amount Per Books Power ECRC ECCR Adjustments Amount Adjustments (incl Function adjs) Adjusted System 882,030 (730,362) (30,440) 0 (14,293) 106,935 0 106,935 115 2 Transmission 14,269 (2,657) 0 0 (292) 11,320 0 11,320 3 Distribution 43,781 0 (2,185) 0 (1,032) 40,564 (687) 39,877 4 Customer Accounts 24,723 0 0 0 (1,054) 23,669 863 24,532 5 Customer Service & Information 38,757 0 0 (18,070) (465) 20,222 (1 ,361) 18,861 6 Sales Expense 1,097 0 0 0 (152) 945 0 945 7 Administrative & General 82,178 (300) (706) (1 ,241) (7,634) 72,297 1'185 73,482 8 Total O&M Expenses by Function 1,086,835 (733,319) (33,331) (19,311) (24,922) 275,952 0 275,952 Supporting Schedules: Recap Schedules: C-37, C-41 Schedule C-40 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULFPOWERCOMPANY O&M COMPOUND MULTIPLIER CALCULATION EXPLANATION: For each year since the benchmark year, provide the amounts and percent increases associated with customers and average CPl. Show the calculation for each compound multiplier. Page 1 of 1 Type of Data Shown: ~Projected DOCKET NO.: 160186-EI (1) (2) No. Year Amount (4) (5) (6) Increase* Multiplier ** (7) Prior Year Ended 12/31/16 Historical Years 2012-2015 Amount*** 116 229.600 0.750% 1.00750 232.962 442,370 1.068% 1.01825 2015 447,557 1.172% 5 2016 452,163 6 2017 458,781 434,441 2 2013 437,698 3 2014 4 (9) (8) Average CPI-U 1.00000 2012 7 X X Witness: S. D. Ritenour (3) Total Average Customers o/o Compound Line Year Ended 12/31/17 Inflation and Growth % Compound Increase* Multiplier** Compound Multiplier (5) X (8) 1.00000 1.00000 1.464% 1.01464 1.02225 236.712 1.610°/o 1.03098 1.04979 1.03019 237.238 0.222% 1.03327 1.06446 1.029% 1.04079 242.275 2.123% 1.05520 1.09825 1.464% 1.05602 248.995 2.774% 1.08447 1.14523 * Percent change from prior year to current year. 8 **Current year Col. (5) or Col. (8) divided by the base year (2012) in the same column. 9 ***Based on CPI: Urban Consumers; Moody's Analytics, Oct. 2015 Supporting Schedules: Recap Schedules: C-33, C-36, C-37 Schedule C-41 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY O&M BENCHMARK VARIANCE BY FUNCTION EXPLANATION: Provide a schedule of operation and maintenance expense by function for the test year, the benchmark year and the variance. For each functional benchmark variance, provide the reason(s) for the difference. DOCKET NO.: 160186-EI (1) Line No. (2) INDEX 2 Summary Justification for each Functional Benchmark Variance 3 Summary of Test Year Benchmark Expenses 4 Page 1 of 17 Type of Data Shown: Projected Test Year Ended 12/31/17 X Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: S. D. Ritenour, M. L. Burroughs, W. E. Smith, B. C. Terry, J. J. Hodnett (3) PAGE NO. 2 (A) Total Production Summary 117 5 (1) Steam Production 3 6 (2) Production Other 5 7 (3) Production Other Power Supply 7 8 (B) Transmission 8 9 (C) Distribution 10 10 (D) Customer Accounts 12 11 (E) Customer Service & Information 13 12 (F) Sales 14 13 (G) Administrative & General 16 Supporting Schedules: C-37, C-38, C-39 Recap Schedules: Schedule C-41 O&M BENCHMARK VARIANCE BY FUNCTION EXPLANATION: Provide a schedule of operation and maintenance expense by function for the test year, the benchmark year and the variance. For each functional benchmark variance, provide the reason(s) for the difference. FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI ($000s) Page 2 of 17 Type of Data Shown: _lL_ Projected Test Year Ended 12/31/17 Prior Year Ended 12/31 /16 Historical Year Ended 12/31/15 Witness: S. D. Ritenour, M. L. Burroughs, W. E. Smith, B. C. Terry, J. J. Hodnett TOTAL ADJUSTED O&M LESS FUEL, PURCHASED POWER, ECCR AND ECRC BENCHMARK VARIANCE BY FUNCTION 2012 ALLOWED COMPARED TO TEST YEAR REQUEST EXPENSES (1) Line No. (2) 1 2 Description (3) (4) (5) (6) 2012 Test Year Benchmark Test Year Request Variance Allowed 118 95,311 7,312 103,362 104,453 4,312 106,935 7,930 4,676 115,968 13,280 4,421 122,154 (255} 6,186 5 6 Steam Production Other Production Other Power Supply Total Production 7 Transmission 11,320 12,964 16,568 3,604 8 Distribution 39,877 45,668 45,874 206 9 Customer Accounts 24,532 28,095 27,730 (365) 10 Customer Service & Information 18,861 21,600 16,983 (4,617) 11 Sales 945 1,082 1,156 74 12 Administrative & General 73,482 84,154 89,348 5,194 13 Total Adjusted O&M 275,952 309,531 319,813 10,282 3 4 Supporting Schedules: C-37, C-38, C-39 1,091 5,350 Recap Schedules: Schedule C-41 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY O&M BENCHMARK VARIANCE BY FUNCTION EXPLANATION: Provide a schedule of operation and maintenance expense by function for the test year, the benchmark year and the variance. For each functional benchmark variance, provide the reason(s) for the difference. DOCKET NO.: 160186-EI Line No. Page 3 of 17 Type of Data Shown: _x_ Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: M. L. Burroughs STEAM PRODUCTION ($000s) 2 5 2012 Allowed Test Year Adjusted Benchmark Test Year Adjusted Request System Benchmark Variance 6 Description 7 8 9 10 1. Scherer 2. Common Transferred to Prod- Other 3. Other 3 4 119 Supporting Schedules: C-37, C-38, C-39 95,311 103,362 104,453 1,091 Variance 6,740 (2,560) (3,089) 1 091 Recap Schedules: Schedule C-41 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY O&M BENCHMARK VARIANCE BY FUNCTION EXPLANATION: Provide a schedule of operation and maintenance expense by function for the test year, the benchmark year and the variance. For each functional benchmark variance, provide the reason(s) for the difference. DOCKET NO.: 160186-EI Line No. 1 Page 4 of 17 Type of Data Shown: _lL_ Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: M. L. Burroughs STEAM PRODUCTION Justification 2 3 4 1. Scherer: Plant Scherer was not reflected in the 2012 allowed expenses because it was dedicated to long-term off-system sales. Plant Scherer has been rededicated to native load customers. 2017 Test Year O&M expenses reflect the portion of Scherer Unit 3 not currently committed to off system sales. 5 6 2. Common Transferred to Prod- Other: Expenses common to both the coal and combined cycle units at Plant Smith were transferred from Production-Steam to Production-Other due to the the retirement of the coal units. 7 3. N/A 120 Supporting Schedules: C-37, C-38, C-39 Recap Schedules: Schedule C-41 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULFPOWERCOMPANY O&M BENCHMARK VARIANCE BY FUNCTION EXPLANATION: Provide a schedule of operation and maintenance expense by function for the test year, the benchmark year and the variance. For each functional benchmark variance, provide the reason(s) for the difference. DOCKET NO.: 160186-EI Page 5 of 17 Type of Data Shown: _x_ Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 Historical Year Ended 12/31 /15 Witness: M. L. Burroughs OTHER PRODUCTION Line No. ($000s) 121 2 3 4 5 2012 Allowed Test Year Adjusted Benchmark Test Year Adjusted Request System Benchmark Variance 6 Description 7 8 9 10 1. 2. 3. 4. 11 Supporting Schedules: C-37, C-38, C-39 Heat Recovery Steam Generator (HRSG) Smith Unit 3 Other Components Common Transferred from Steam Other 7,312 7,930 13,280 5,350 Variance 1,413 1,436 2,560 (59) 5350 Recap Schedules: Schedule C-41 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY O&M BENCHMARK VARIANCE BY FUNCTION EXPLANATION: Provide a schedule of operation and maintenance expense by function for the test year, the benchmark year and the variance. For each functional benchmark variance, provide the reason(s) for the difference. DOCKET NO.: 160186-EI Line No. 1 Page 6 of 17 Type of Data Shown: _x_ Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: M. L. Burroughs OTHER PRODUCTION Justification 2 1. Heat Recovery Steam Generator (HRSG): Increased work on the Heat Recovery Steam Generator (HRSG) due to high utilization and aging of Smith Unit 3. 3 4 2. Smith Unit 3 Other Components: Other Smith Unit 3 components consisting of the turbine system, combustion system, service water system, condensate system, and service facilities are experiencing higher costs due to high utilization and aging of the unit. 5 6 3. Common Transferred from Steam: Expenses common to both the coal and combined cycle units at Plant Smith were transferred from Production-Steam to Production-Other due to the retirement of the coal units. 7 4. N/A 122 Supporting Schedules: C-37, C-38, C-39 Recap Schedules: Schedule C-41 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY O&M BENCHMARK VARIANCE BY FUNCTION EXPLANATION: Provide a schedule of operation and maintenance expense by function for the test year, the benchmark year and the variance. For each functional benchmark variance, provide the reason(s) for the difference. DOCKET NO.: 160186-EI Page 7 of 17 Type of Data Shown: _x_ Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: M. L. Burroughs OTHER POWER SUPPLY Line No. ($000s) 123 2 3 4 5 2012 Allowed Test Year Adjusted Benchmark Test Year Adjusted Request System Benchmark Variance 6 Description 7 N/A Supporting Schedules: C-37, C-38, C-39 4,312 4,676 4,421 (255) Recap Schedules: Schedule C-41 FLORIDA PUBLIC SERVICE COMMISSION COMPAN~ GULFPOWERCOMPANY O&M BENCHMARK VARIANCE BY FUNCTION EXPLANATION: Provide a schedule of operation and maintenance expense by function for the test year, the benchmark year and the variance. For each functional benchmark variance, provide the reason(s) for the difference. DOCKET NO.: 160186-EI Line No. Page 8 of 17 Type of Data Shown: _x_ Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: W. E. Smith TRANSMISSION ($000s) 2 3 4 124 5 2012 Allowed Test Year Adjusted Benchmark Test Year Adjusted Request System Benchmark Variance 6 Description 7 8 1. 2. 3. 4. 5. 9 10 11 12 Supporting Schedules: C-37, C-38, C-39 Scherer 3 Delivery Obligation Protection and Control Line Inspections Engineering and Supervision Vegetation Management 11,320 12,964 16,568 3,604 Variance 1'123 269 572 842 798 3 604 Recap Schedules: Schedule C-41 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI Page 9 of 17 Type of Data Shown: _x_ Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: W. E. Smith TRANSMISSION Line No. 1 O&M BENCHMARK VARIANCE BY FUNCTION EXPLANATION: Provide a schedule of operation and maintenance expense by function for the test year, the benchmark year and the variance. For each functional benchmark variance, provide the reason(s) for the difference. Justification 125 2 3 1. Scherer 3 Delivery ObliQation: Transmission transport costs associated with Scherer Unit 3. Plant Scherer was not reflected in the 2012 allowed expenses because it was dedicated to lonQ-term off-system sales. Plant Scherer has been rededicated to native load customers. 4 5 2. Protection and Control: Critical Infrastructure ProQram (CIP) facilities compliance requirements of NERC to include the identification and security of Gulf's critical facilities. 6 3. Line Inspections: Increased inspection activity and associated costs to ensure a reliable transmission system. 7 8 4. Engineering and Supervision: Additional requirements for NERC compliance. Programs such as the documenting and monitoring of internal control processes of high-risk NERC programs and cybersecurity costs comprise this variance. 9 5. Vegetation Management: Additional NERC requirements of inspections and subsequent clearing along NERC regulated 230 kV corridors. Supporting Schedules: C-37, C-38, C-39 Recap Schedules: Schedule C-41 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY O&M BENCHMARK VARIANCE BY FUNCTION EXPLANATION: Provide a schedule of operation and maintenance expense by function for the test year, the benchmark year and the variance. For each functional benchmark variance, provide the reason(s) for the difference. DOCKET NO.: 160186-EI Page 10 of 17 Type of Data Shown: ..lL_ Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 Historical Year Ended 12/31 /15 Witness: W. E. Smith DISTRIBUTION Line No. ($000s) 126 2 3 4 5 2012 Allowed Test Year Adjusted Benchmark Test Year Adjusted Request System Benchmark Variance 6 Description 7 1. Overhead and Underground Line O&M 8 Supporting Schedules: C-37, C-38, C-39 39,877 45,668 45,874 206 Variance 206 206 Recap Schedules: Schedule C-41 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY O&M BENCHMARK VARIANCE BY FUNCTION EXPLANATION: Provide a schedule of operation and maintenance expense by function for the test year, the benchmark year and the variance. For each functional benchmark variance, provide the reason(s) for the difference. DOCKET NO.: 160186-EI Line No. 1 2 3 4 5 6 Page 11 of 17 Type of Data Shown: _x_ Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 Historical Year Ended 12/31 /1 5 Witness: W. E. Smith DISTRIBUTION Justification 1. Overhead and Underground Line O&M - A part of this program includes Personal Protective Equipment (PPE) for those employees working in hazardous conditions. Gulf provides an annual allotment to employees to purchase Company approved flame retardant clothing as part of the PPE program. Since Gulf's 2011 rate case, Gulf reviewed its policy for the flame retardant clothing program and increased the annual allotment for certain classifications of employees. In 2015, the Company began a safety footwear program, similar to the flame retardant clothing program, whereby field employees are eligible to purchase safety footwear utilizing an annual allotment. 127 Supporting Schedules: C-37, C-38, C-39 Recap Schedules: Schedule C-41 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY O&M BENCHMARK VARIANCE BY FUNCTION EXPLANATION: Provide a schedule of operation and maintenance expense by function for the test year, the benchmark year and the variance. For each functional benchmark variance, provide the reason(s) for the difference. DOCKET NO.: 160186-EI Line No. Page 12 of 17 Type of Data Shown: _lL_ Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: B. C. Terry CUSTOMER ACCOUNTS ($000s) 2 3 128 4 5 2012 Allowed Test Year Adjusted Benchmark Test Year Adjusted Request System Benchmark Variance 6 Description 7 N/A Supporting Schedules: C-37, C-38, C-39 24,532 28,095 27,730 (365) Recap Schedules: Schedule C-41 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULFPOWERCOMPANY O&M BENCHMARK VARIANCE BY FUNCTION EXPLANATION: Provide a schedule of operation and maintenance expense by function for the test year, the benchmark year and the variance. For each functional benchmark variance, provide the reason(s) for the difference. DOCKET NO.: 160186-EI Page 13 of 17 Type of Data Shown: _x_ Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: B. C. Terry CUSTOMER SERVICE & INFORMATION Line No. ($000s) 129 2 3 4 5 2012 Allowed Test Year Adjusted Benchmark Test Year Adjusted Request System Benchmark Variance 6 Description 7 N/A Supporting Schedules: C-37, C-38, C-39 18,861 21,600 16,983 (4,617) Recap Schedules: Schedule C-41 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY O&M BENCHMARK VARIANCE BY FUNCTION EXPLANATION: Provide a schedule of operation and maintenance expense by function for the test year, the benchmark year and the variance. For each functional benchmark variance, provide the reason(s) for the difference. DOCKET NO.: 160186-EI Page 14 of 17 Type of Data Shown: _x_ Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 Historical Year Ended 12/31 /15 Witness: B. C. Terry SALES Line No. ($000s) 5 2012 Allowed Test Year Adjusted Benchmark Test Year Adjusted Request System Benchmark Variance 6 Description 7 8 9 1. Administrative Expenses 2. Programs and Incentives 2 3 4 130 Supporting Schedules: C-37, C-38, C-39 945 1,082 1'156 74 Variance (54) 128 74 Recap Schedules: Schedule C-41 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULFPOWERCOMPANY O&M BENCHMARK VARIANCE BY FUNCTION EXPLANATION: Provide a schedule of operation and maintenance expense by function for the test year, the benchmark year and the variance. For each functional benchmark variance, provide the reason(s) for the difference. DOCKET NO.: 160186-EI SALES Line No. 1 Page 15 of 17 Type of Data Shown: _L Projected Test Year Ended 12/31 /17 Prior Year Ended 12/31/16 Historical Year Ended 12/31 /15 Witness: B. C. Terry Justification 2 3 1. Administrative Expenses: Reductions of expenses in multiple areas result in a slight decrease in Gulf's administrative expenses compared to the benchmark. 4 5 6 7 2. Programs and Incentives: Increase in expenses primarily driven by the addition of an Economic Development analyst position. This position is necessary to provide a variety of research and analysis essential in supporting the Company's economic development function. This position performs research on talent availability, demographics, site readiness factors, quality of life indicators and many other variables that are necessary when working with prospective customers. 131 Supporting Schedules: C-37, C-38, C-39 Recap Schedules: Schedule C-41 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY O&M BENCHMARK VARIANCE BY FUNCTION EXPLANATION: Provide a schedule of operation and maintenance expense by function for the test year, the benchmark year and the variance. For each functional benchmark variance, provide the reason(s) for the difference. DOCKET NO.: 160186-EI Page 16 of 17 Type of Data Shown: _lL_ Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 Historical Year Ended 12/31 /1 5 Witness: J. J. Hodnett ADMINISTRATIVE & GENERAL Line No. ($000s) 132 2 3 4 5 2012 Allowed Test Year Adjusted Benchmark Test Year Adjusted Request System Benchmark Variance 6 Description 7 8 9 10 1. Property Insurance Reserve 2. Plant Scherer 3. Other Supporting Schedules: C-37, C-38, C-39 73,482 84,154 89,348 5,194 Variance 4,892 1,875 (1 ,573) 5194 Recap Schedules: Schedule C-41 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY O&M BENCHMARK VARIANCE BY FUNCTION EXPLANATION: Provide a schedule of operation and maintenance expense by function for the test year, the benchmark year and the variance. For each functional benchmark variance, provide the reason(s) for the difference. DOCKET NO.: 160186-EI Line No. 1 Page 17 of 17 Type of Data Shown: _x_ Projected Test Year Ended 12/31/17 Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: J. J. Hodnett ADMINISTRATIVE & GENERAL Justification 133 2 3 4 5 6 7 1. Property Insurance Reserve: In Gulf's 2011 rate case, the Commission approved a property damage reserve target of $48-55 million as the amount 8 9 2. Plant Scherer A&G was not reflected in the 2012 allowed expenses because it was dedicated to long-term off-system sales. Plant Scherer has been rededicated to native load customers. 10 3. N/A necessary to build an adequate reserve to cover most storms. To achieve the target of $48-55 million, Gulf has proposed an increase in the annual property damage reserve accrual from $3,500,000 to $8,900,000. The proposed annual accrual of $8,900,000 is based on the expected average annual loss to be covered by the reserve ($7,900,000), per Gulf's 2016 Hurricane Loss and Reserve Performance Analysis (Storm Study), and an additional annual amount of $1 ,000,000 for non-storm charges to the reserve. The Storm Study is addressed in the testimony of Gulf Witness Harris, and the increase in the annual accrual is addressed in the testimony of Ms. Hodnett. Supporting Schedules: C-37, C-38, C-39 Recap Schedules: Schedule C-42 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULFPOWERCOMPANY DOCKET NO.: 160186-EI (1) (2) (3) Line No. Account No. Account Title HEDGING COSTS EXPLANATION: Provide hedging expenses and plant balances by primary account for the test year and the preceding three years. Hedging refers to initiating and/or maintaining a non-speculative financial and/or physical hedging program designed to mitigate fuel and purchased power price volatility for the utility's retail rate payers, exclusive of the costs referenced in Paragraph 3, page 5 of Order No PSC-02-1484-FOF-EI. Show hedging expenses and plant recovered through base rates separate from hedging expenses and plant recovered through the fuel clause. (4) {5) 2014 Year Base Rates Clause (6) (7) 2015 Year Base Rates Clause Page 1 of 1 Type of Data Shown: lL Projected Test Year Ended 12/31/17 lL Prior Year Ended 12/31 /1 6 lL Historical Year Ended 12/31/14- 12/31/15 Witness: M. L. Burroughs {8) (1 0) (9) 2016 Year Base Rates Clause (11) 2017 Test Year Base Rates Clause 134 HEDGING EXPENSE 2 547 Gas Hedging Support (1) 109,975 90,079 116,108 118,047 ANNUAL PLANT IN SERVICE 3 4 There are no capital investments for hedging. 5 6 NOTE: (1) Gas Hedging Support, BW0-4352GH, O&M expenses includes labor, overheads, and expenses of employees engaged in financial hedging of natural gas. Supporting Schedules: Recap Schedules: Schedule C-43 SECURITY COSTS FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI (1) (3) (2) Line Account No. No. Account Title 2 3 506 549 EXPENSES Misc. Steam Power Expense Misc. Other Power Gen Expense 4 935 Maintenance of General Plant 135 5 Total Security Expense 6 ANNUAL PLANT IN SERVICE 7 8 398 Page 1 of 1 EXPLANATION: Provide a schedule of security expenses and security plant balances by primary account and totals for the test year and the preceding three years. Show the security expenses recovered through base rates separate from security expenses recovered through the fuel/capacity clauses. Show the plant balances supporting base rates separate from the plant balances supporting the fuel/capacity clauses. Provide only those security costs incurred after, and as a result of, the terrorist events of September 11, 2001. ($000s) (5) (4) (6) (7) 2014 Base Rates Type of Data Shown: _lL Projected Test Year Ended 12/31/17 _lL Prior Year Ended 12/31/16 _lL Historical Years Ended 12/31/14-12/31/15 Witness: J. J. Hodnett 2015 Clauses Base Rates (9) (8) (1 0) 2016 Clauses Base Rates (11) 2017 Clauses Base Rates CAPITAL Miscellaneous Equipment 9 Total Security Investment 10 11 Note- Gulf Power does not track security expenses specifically related to the terrorist attacks of September 11, 2001. However, there are no security expenses being recovered through the fuel/capacity clauses. Supporting Schedules: Recap Schedules: Clauses Schedule C-44 FLORIDA PUBLIC SERVICE COMMISSION REVENUE EXPANSION FACTOR EXPLANATION: Provide the calculation of the revenue expansion factor for the test year. COMPANY: GULF POWER COMPANY DOCKET NO.: 160186-EI (1) (2) (3) Line No. Description Percent Revenue Requirement 100.0000 136 2 Regulatory Assessment Rate 0.0720 3 Bad Debt Rate 0.2499 4 Net Before Income Taxes (1)- (2)- (3) 5 State Income Tax Rate 5.5000 6 State Income Tax (4) x (5) 5.4823 7 Net Before Federal Income Tax (4)- (6) 94.1958 8 Federal Income Tax Rate 35.0000 9 Federal Income Tax (7) x (8) 32.9685 10 Revenue Expansion Factor (7) - (9) 61.2273 11 Net Operating Income Multiplier (100% I Line 10) Supporting Schedules: C-11 Page 1 of 1 Type of Data Shown: ~ P rejected Test Year Ended 12/31 I 17 Prior Year Ended 12/31/16 Historical Year Ended 12/31/15 Witness: S.D. Ritenour 99.6781 1.633258 Recap Schedules: A-1