FILED JUL 12, 2013 DOCUMENT NO. 03976-13 FPSC - COMMISSION CLERK BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION DOCKET NO. 130140-EI GU F POWER A SOUTHERN COMPANY MINIMUM FILING REQUIREMENTS SECTION C- NET OPERATING INCOME SCHEDULES GULF POWER COMPANY Docket No. 130140-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 23 C- 5 Ritenour Operating Revenues Detail 29 C-6 Ritenour Caldwell Erickson Grove McMillan McQuagge Neyman Strickland Budgeted Versus Actual Operating -Revenues and Expenses 32 C-7 McMillan Operation and Maintenance Expenses - Test Year 44 C-8 Caldwell Erickson Grove McQuagge Detail of Changes in Expenses 45 C-9 Caldwell Erickson Grove Neyman Strickland Five Year Analysis - Change in Cost 46 GULF POWER COMPANY Docket No. 130140-EI Minimum Filing Requirements Index c. Net Operating Income Schedules Schedules Witness Title Page C-10 Erickson Detail of Rate Case Expenses for Outside Consultants 47 C-11 Neyman Uncollectible Accounts 48 C-12 Erickson Neyman Strickland Administrative Expenses 49 C-13 Erickson Miscellaneous General Expenses 50 C-14 Strickland Advertising Expenses 51 C-15 Erickson Industry Association Dues 53 C-16 Erickson Outside Professional Services 55 C-17 Erickson Pension Cost 56 C-18 Erickson Lobbying Expenses, Other Political Expenses and Civic/Charitable Contributions 58 C-19 Erickson Ritenour Amortization/Recovery Schedule - 12 Months 59 C-20 Erickson Taxes Other Than Income Taxes 60 C-21 Erickson Revenue Taxes 63 C-22 Erickson State and Federal Income Tax Calculation 64 C-23 Ritenour Interest in Tax Expense Calculation 70 C-24 TeeI Parent(s) Debt Information 71 ii GULF POWER COMPANY Docket No. 130140-EI Minimum Filing Requirements Index c. Net Operating Income Schedules Schedules Witness Title Page C-25 Erickson Deferred Tax Adjustment 73 C-26 Erickson Income Tax Returns 74 C-27 Erickson Consolidated Tax Information 75 C-28 Erickson Miscellaneous Tax Information 76 C-29 Erickson Ritenour Gains and Losses on Disposition of Plant and Property 77 C-30 Erickson McMillan Transactions with Affiliated Companies 78 C-31 Erickson Affiliated Company Relationships 79 C-32 Ritenour Non-Utility Operations Utilizing Utility Assets 101 C-33 McMillan Performance Indices 102 C-34 Alexander Caldwell Grove McQuagge Statistical Information 104 C-35 McMillan Payroll and Fringe Benefit Increases Compared to CPI 105 C-36 McMillan Non-Fuel Operation and Maintenance Expense Compared to CPI 107 C-37 McMillan O&M Benchmark Comparison by Function 108 C-38 McMillan O&M Adjustments by Function 109 iii GULF POWER COMPANY Docket No. 130140-EI Minimum Filing Requirements Index C. Net Operating Income Schedules Schedules Witness Title Page C-39 McMillan Benchmark Year Recoverable O&M Expenses by Function 111 C-40 McMillan O&M Compound Multiplier Calculation 112 C-41 Caldwell Erickson Grove McMillan McQuagge Neyman Strickland O&M Benchmark Variance by Function 113 C-42 Burroughs Hedging Costs 128 C-43 Erickson McMillan Security Costs 129 C-44 Ritenour Revenue Expansion Factor 130 iv Schedule C-1 ADJUSTED JURISDICTIONAL NET OPERATING INCOME FLORIDA PUBLIC SERVICE COMMISSION EXPLANATION: Provide the calculation of the jurisdictional net operating income for the test year, the pr1or year and the most recent historical year. Page 1 of 3 Type of Data Shown: _x_Projected Test Year Ended 12/31/14 Prior Year Ended 12/31/13 COMPANY: GULF POWER COMPANY __ Historical Year Ended 12131/12 __ DOCKET NO.: 13014(}-EI ($000's} Witness: S. D. Ritenour 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) Utility (9) Company Commission Adjustments (Sch. C-3) (6)+0 Adjusted per (10) Total Adjusted Utility (8)+ (9) (11) (12) Unit Power Total Adjusted Util ity Sales net of UPS Net Operating income (10)- (11) (13) (14) Jur1scf1Ctional Separation Factor Jurisdictional Amount (12)X (13) Q(2f!rating B�!I!Jues: 2 3 ..... Sales of Electricity Other Operating Revenues 4 Total Operating Revenues 5 O!;!erating �x12enses: 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 1,503,274 69,171 1,503,274 69,171 (926,938) (42124ZJ 576,336 261924 576,336 261924 (58,261) 518,075 26,924 0.9759591 0.8554078 505,620 23,031 1,572,445 1,572,445 (969,185} 603,260 603,260 (58,261} 544,999 0.9700036 528,651 . (12,692) (7,975) 330 (1,119) 295,916 106,427 (894) 32,622 0.9806803 0.9819407 0.9821029 0.9783888 299,199 104,505 (878) 31,917 650,274 65,247 23,520 29,on 305,462 156,353 (1,224) 111,n3 650,274 65,247 23,520 29,on 305,462 156,353 (1,224) 111,773 (650,274) (65,247) (23,520) (29,077) (851) (41,333) 46,880 1,934 46,880 1,934 10,764 7 1590 10,764 7,590 1,407,650 1,4071650 (9121582) 495,088 164,795 164,795 �56,623l 108,172 Supporting Schedules: C-2, G-3, C-4, C-5, C-20, C-22, F-8 3,997 (618) ( 77,974) 304,611 115,020 (1 ,224) 33,799 (58) 308,608 114,402 (1,224) 33,741 (20,823) (3,463) 26,057 (1,529) (1,098) (183) 24,959 (1,712) (8,526) (354) 16,433 (2,066) 0.9038265 0.9038265 14,852 (1,867) 10,764 71590 (1,958) (1,389} 8,806 6,201 0.9038265 0.9038265 7,959 5,605 2,040 497,128 (33,683) 463,445 0.9759346 452,292 ,2,040l 106,132 ,24,5781 81,554 0.9362999 76,359 10,764 7,590 Recap Schedules: A-1, C-21 Schedule C-1 Page2 of 3 ADJUSTED JURISDICTIONAL NET OPERATING INCOME Type of Data Shown: EXPLANATION: Provide the calculation of the jurisdictional net operating FLORIDA PUBLIC SERVICE COMMISSION income for the test year, the prior year and the most recent historical year. Projected Test Year Ended 12/31114 __ COMPANY: GULF POWER COMPANY _X Prior Year Ended 12131/13 Historical Year Ended 12131/12 _ __ {§OOO's} DOCKET NO.: 13014Q-EI Witness: S. D. Ritenour 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) (9) (8) Utility Company Adjusted per Commission Adjustments (Sch. C-3) C6l+ m (10) Total Adjusted Utility {8) +(9) (12) (11) Unit Power Total Adjusted Utility Sales net of UPS Net Operating Income (10)-(11} (13) (14) Jurisdictional Separation Factor Jurisdictional Amount (12)x(13) OQerating Bevenues: 2 3 l� Sales of Electricity Other Operating Revenues 4 Total Operating Revenues 5 O�rating E192!i!nS!i!S: 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 1,415,038 92,702 1,415,038 921702 (843,616) {661 392} 571,422 26,310 571,422 26,310 (58,195) 513,227 26,310 0.9777175 0.8541239 501,791 22,472 1,507,740 - 1,507,740 {910,008) 597z132 597,732 {58,195} 539,537 0.9716905 524,263 280,626 110,431 (1,304) 32,247 (12,497) (7,806) 330 (1,179) 268,129 102,625 (974) 31,068 0.9806803 0.9819407 0.9821029 0.9783700 262,949 100,772 (956) 30,396 9,779 (467) (4,918) (487) 4,861 (954) 0.9319821 0.9319821 4,530 (889) 619,107 48,423 23,262 24,999 281,458 151,531 (1,304) 103,988 619,107 48,423 23,262 24,999 281,458 151,531 (1,304) 103,988 (619,107) (48,423) (23,262) (24,999) (832) (41,100) (71,741) 280,626 110,431 (1,304) 32,247 30,762 3,022 30,762 3,022 (20,983) {3,489) 9,779 (467) 35,314 7,878 35,314 7,878 1,328,440 1,3281440 179,300 179,300 Supporting Schedules: C-2, C-3, C-4, C-5, C-20, C-22, F-8 35,314 7,878 35,314 7,878 (5,645) {1,270} 29,669 6,608 0.9319821 0.9319821 27,651 6,159 {853,936) 474,504 474,504 {33,472} 441,032 0.9763731 430,612 �56,072l 1231228 123,228 �24,723} 98,505 0.9507257 93,651 Recap Schedules: A-1, C-21 Schedule C-1 ADJUSTED JURISDICTIONAL NET OPERATING INCOME FLORIDA PUBLIC SERVICE COMMISSION EXPLANATION: Provide the calculation of the jurisdictional net operating income for the test year, the prior year and the most recent historical year. Page 3 of 3 Type of Data Shown: __Projected Test Year Ended 12/31/14 COMPANY: GULF POWER COMPANY Prior Year Ended 12/31/13 __ _X_Historical Year Ended 12/31/12 DOCKET NO.: 130140-EI Witness: S. D. Ritenour {$000's} 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) (10) (8) (9) Utility Total Company Adjusted Adjusted per Utility Commission Adjustments (Sch. C-3) (8)+ (9) (6)+ (7) (11) (12) Unit Power Total Adjusted Sales Utility net of UPS Net Operating Income (10)-(11) (13) (14) Jurisdictional Separation Factor Jurisdictional Amount (12) X (13) 493,035 28,388 0.9754561 0.8675849 480,934 24,629 . 521,423 0.9695832 505,563 261,069 96,150 (1,021) 28,451 0.9806803 0.9819407 0.9821029 0.9786299 256,025 94,414 (1,003) 27,843 (99,230) (5,782) 0.9229757 0.9229757 (91,587) (5,337) Ogerating Revenyes: 2 3 � Sales of Electricity Other Operating Revenues 4 Total Operating Revenues 5 Ogeraljog �12§ng: 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 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 Total Operating Expenses 21 Net Operating Income 1,363,071 76,825 1,363,071 76,825 (810,791) 552,280 28,388 552,280 28!388 (59,245) (48,43Z} 1,439,896 1,439,896 ( 859,228) 580,668 580,668 (59,245) 268,429 103,783 (1,352) 29,982 (7,360) (7,633) 331 (1,531) 572,512 45,500 20,910 25,185 269,243 142,390 (1,352) 97,313 572,512 45,500 20,910 25,185 269,243 142,390 (1,352) 97,313 (572,512) (45,500) (20,910) (25,185) (814) (38,607) (67,331) 268,429 103,783 (1,352) 29,982 (92,341) (2,439) (92,341) (2,439) (22,773) (3,788) (115,114) (6,227) (115,114) (6,227) 15,884 161,110 13,212 161,110 13,212 161,110 13,212 161,110 13,212 (27,713) (2,412} 133,397 10,800 0.9229757 0.9229757 123,122 9,968 1,251,243 1,251,243 (797,420) 453,823 453,823 (29,989) 423,834 0.9754899 413,446 188 1653 188,653 '61,808l 126,845 126,845 ,29,256} 97,589 0.9439301 92,117 Supporting Schedules: C-2, C-3, C-4, C-5, C-20, C-22, F-8 445 Recap Schedules: A-1, C-21 Schedule C-2 FLORIDA PUBLIC SERVICE COMMISSION COMPANY: GULF POWER COMPANY Page NET OPERATING INCOME ADJUSTMENTS Type of Data Shown: EXPLANATION: Provide a schedule of net operating income adjustments for the test year, the prior year and 1 of 3 �Projected Test Year Ended 12/31/14 the most recent historical year. Provide the details of Prior Year Ended 12131/13 __ all adjustments on Schedule C-3. Historical Year Ended 12131112 __ Witness: S. D. Ritenour DOCKET NO.: 130140-EI Adjustments for the Twelve Months Ended 12131/2014 $000's (2) (1) (4) (3) Fuel Line DescriE!tion No. � 1 2 3 Operating Revenues: 4 Total Operating Revenues Sales of Electricity Other Operating Revenues 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Ooerating Exoeoses: 21 Total Operating Expenses 22 Net Operating income Recovera� Fuel Related Conservation & E�enses Expenses Revenues Revenues& (5) (6) (7) PPCC ECRC Revenues& E�enses Miscellaneous Revenues& Expenses (8) Adjustments Total Adjustments (651,123) (26,405) (63,154) (153,917) (32,339) {42,247} (926,938) (42,247} (651,123} (26,405} {63,154} {153,917} (74,586} (969,185} (40,922) 3,146 (618) (650,274) (65,247) (23,520) (29,on) 3,146 (41,951) (650,274) Recoverable Capacity (65,247) Recoverable Conservation (23,520) Recoverable Environmental (29,077) Other Operation& Maintenance Depreciation& Amortization (411) Amortization of Investment Credit Taxes Other Than Income Taxes (379) (710) (43) (2,261) (74,639) (78,032) (155) (26) (583) 706 117 (27,008) (4,491) 5,119 851 (21,921) (3,646) (650,834} (25,321} {64,467} (103,759} (66,141} (910,522} �289� ,1,084� 1,313 ,50,158} {8,445� ,58,663} Income Taxes Federal State Deferred Income Taxes - Net (97) Federal State Investment Tax Credit Supporting Schedules: C-3 Recap Schedule: C-1 Schedule C-2 NET OPERATING INCOME ADJUSTMENTS FLORIDA PUBLIC SERVICE COMMISSION EXPLANATION: Provide a schedule of net operating COMPANY: GULF POWER COMPANY the most recent historical year. Provide the details of Page 2 of3 Type of Data Shown: income adjustments for the test year, the prior year and Projected Test Year Ended 12/31/14 __ _x_Prior Year Ended 12/31/13 all adjustments on Schedule C-3. Historical Year Ended 12/31/12 __ DOCKET NO.: 130140-EI Witness: S. D. Ritenour (2) (1) (3) (6) (5) (8) (7) Fuel Une No. �' Descril:!tion 1 2 3 Operating Revenues: 4 Total Operating Revenues Sales of Electricity Other Operating Revenues 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Operating Expenses: 21 Total Operating Expenses 22 Net Operating Income Recoverable Fuel Recoverable Capacity Related Conservation PPCC ECRC Revenues Revenues& Revenues& Revenues& Miscellaneous Total & E�enses E�enses Expenses Expenses Adjustments Adjustments (592,869) {27,043} (25,891) (46,807) (147,830) (30,219) {39,349} (843,616) {66,392} (619,912} {25,891} {461807} {1471830} (69,568} (910,008} (619,107) (23,262) Recoverable Conservation Recoverable Environmental (48,423) (24,999) Other Operation& Maintenance Depreciation& Amortization Amortization of Investment Credit Taxes Other Than Income Taxes Income Taxes Federal State Deferred Income Taxes - Net (40,764) (336) (832) (619,107) (48,423) (23,262) (24,999) (832) (41,100) (337) (668) (33) (1,137) (69,566) (71,741) (155) (26) (537) (89) 545 91 (26,768) (4,451) 5,932 986 (20,983) (3,489) (619,625} {24,892} (47,820} (98,119} (63,480} (853,936} �287l �999l 1,013 �49,711} �6,088} !56,072} Federal State Investment Tax Credit Supporting Schedules: C-3 Recap Schedule: C-1 Schedule C-2 Page NET OPERATING INCOME ADJUSTMENTS FLORIDA PUBLIC SERVICE COMMISSION EXPLANATION: Provide a schedule of net operating COMPANY: GULF POWER COMPANY the most recent historical year. Provide the details of Type of Data Shown: Income adjustments for the test year, the prior year and 3 of 3 Projected Test Year Ended 12131/14 __ Prior Year Ended 12131/13 -- all adjustments on Schedule C-3. __LH!storica! Year Ended 12131/12 DOCKET NO.: 130140-E! Witness: S. D. Ritenour (1) (2) (3) (5) (6) (8) PPCC Revenues& Expenses Revenues& Misc�llaneous Total E!9:!enses Adjustments Adjustments (7) Fuel Line No. 2 3 = Descri�tion Operating Revenues: Sales of Electricity Other Operating Revenues Related Conservation Revenues Revenues& & ExJ:!enses E�nses (582,487) 8,022 (25,200) 2,325 (35,080) (8,892} (139,770) (12,130} (28,254) (37z762} (810,791) {48,437} {22,875} {43,972} {151,900} {66,016} {859!228} 4 Total Operating Revenues {574,465} 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Operating Exoenses: Recoverable Fuel Recoverable Capacity (572,512) 21 Total Operating Expenses 22 Net Operating Income Recoverable Conservation (20,910) Recoverable Environmental (45,500) (25,185) Other Operation & Maintenance Depreciation& Amortization (294) Amortization of Investment Credit Taxes Other Than Income Taxes Income Taxes Federal State Deferred Income Taxes - Net ECRC (38,313) (814) (572,512) (45,500) (20,910) (25,185) (814) (38,607} (315) (152) (25) (1,008) (65,831) (67,331) (542) (502) (90) (84) 514 85 (28,906) (4,807) 6,663 1,108 (22,773) (3,788) {573!459} {21,942} {98,219} {58,874} {797,420} (1,006l �933� �53,681� g.142� ,61,808} Federal State Investment Tax Credit Supporting Schedules: C-3 {44,926} 954 Recap Schedule: C-1 Schedule C-3 year, the prior year and the most recent historical Page 1 of 16 Type of Data S hown: _X_Projected Test Year Ended 12/31/14 __Prior Year Ended 12/31/13 year. __Historical Year Ended 12/31/12 JURISDICTIONAL NET OPERATING INCOME ADJUSTMENTS EXPLANATION: List and explain all proposed FLORIDA PUBLIC SERVICE COMMISSION adjustments to net operating income for the test COMPANY: GULF POWER COMPANY ($OOO's) DOCKET NO.: 130140-EI (1) (4) (3) (2) Witness: S. D. Ritenour (5) (6) (7) Total Adjustment Jurisdictional Factor Jurisdictional Adjustment Reason for Adjustment Line Adj No. No. 1 2 3 or Omission (Provide Supporting Schedules) Adjustment CQml!!i§§lgn Adj!J§ll!!enls: (1) Fuel Revenues To remove all fuel-related revenues and expenses from NOI (net operating income) for ratemaking purposes. 4 5 (2) Fuel Expense To remove all fuel-related revenues and expenses from NOI for ratemaking purposes. 6 7 (3) Fuel Expense - Interchange Energy To remove all fuel-related revenues and 8 9 (4) Purchased Transmission 10 11 (651,123) Direct (597,603) 613,779 0.9206164 565,055 35,992 0.8805846 31,694 To remove expenses associated with transmission that are recoverable through the fuel clause. 403 0.9702233 391 (5) Peabody Litigation Fees To remove the Peabody litigation fees that are recoverable through the fuel clause. 100 0.9700000 97 12 13 (6) ECCR Revenues To remove all ECCR revenues and expenses from NOI for ratemaking purposes. (26,405) 14 15 (7) ECCR Expenses in O&M Expense To remove all ECCR revenues and expenses from NOI for ratemaking purposes. 23,520 expenses from NOI for ratemaking purposes. .. .... 16 17 18 19 Legend: ECCR PPCC ECRC Supporting Schedules: Direct 1.0000000 (26,405) 23,520 Energy Conservation Cost Recovery Clause Purchased Power Capacity Cost Recovery Clause Environmental Cost Recovery Clause Recap Schedules: C-1, C-2 Schedule C-3 JURISDICTIONAL NET OPERATING INCOME ADJUSTMENTS FLORIDA PUBLIC SERVICE COMMISSION EXPLANATION: Ust and explain all proposed adjustments to net operating income for the test COMPANY: GULF POWER COMPANY year, the prior year and the most recent historical year. DOCKET NO.: .130140-EI (1) (2) Une Adj No. No. Reason for Adjustment or Omission (Provide Supporting Schedules) 6 17 18 19 411 1.0000000 411 To remove all PPCC revenues and expenses from NOI for ratemaking purposes. 52,026 0.9657346 50,243 (11) Purchased Transmission To remove transmission expenses that are recoverable through the capacity clause. 13,221 0.9657346 12,768 (12) ECRC Revenues To remove all ECRC revenues and expenses from NOI for ratemaking purposes. (13) ECRC Expenses in O&M To remove all ECRC revenues and expenses from NOI for ratemaking purposes. 29,077 0.9698043 28,199 (14) ECRC in Depreciation Expense To remove all ECRC revenues and expenses from NOI for ratemaking purposes. 40,922 0.9705293 39,716 15 16 Jurisdictional Adjustment (10) PPCC Expenses 13 14 Jurisdictional Factor (63, 154) 11 12 Total Adjustment To remove all PPCC revenues and expenses from NOI for ratemaking purposes. 9 10 (7) PPCC ·Revenues 7 8 (6) (9) 5 .... .... (5) Cgmmi§§ig n AS!iL!§lm�n!§ (Cgmlo!.!�}: ECCR Depreciation 3 4 Historical Year Ended 12/31112 Witness: S. D. Ritenour (8) 1 2 (4) Adjustment -- __ ($OOO's) (3) Page 2 of 16 Type of Data Shown: _X_Projected Test Year Ended 12/31/14 Prior Year Ended 12/31113 Legend: ECCR PPCC ECRC Supporting Schedules: To remove all ECCR revenues and expenses from NOI for ratemaking purposes. (153,917) Direct Direct (63,054) (149,312) Energy Conservation Cost Recovery Clause Purchased Power Capacity Cost Recovery Clause Environmental Cost Recovery Clause Recap Schedules: C-1, c-2 Schedule C-3 JURISDICTIONAL NET OPERATING INCOME ADJUSTMENTS EXPLANATION: COMPANY: GULF POWER COMPANY adjustments to net operating income for the test year, the prior year and the most recent historical year. ($OOO's) DOCKET NO.: 130140-EI (1) (2) Line Adj No. No. 1 2 (3) (4) Reason for Adjustment or Omission (Provide Supporting Schedules) Adjustment QQmmi§.§iQD Adjustmen!s (Continu§d): (15) Gross Receipts & Franchise Fee Revenues 3 = Ust and explain all proposed FLORIDA PUBLIC SERVICE COMMISSION Page 3 of 16 Type of Data Shown: -X_Projected Test Year Ended 12/31/14 Prior Year Ended 12/31/13 Historical Year E nded 12/31/12 Witness: S. D. Ritenour __ __ (5) (6) (7) Total Adjustment Jurisdictional Factor Jurisdictional Adjustment To remove gross receipts & franchise revenues from NOI for ratemaking purposes. (74,586) 1.0000000 (74,586) 4 5 (16) Gross Receipts & Franchise Fee Expenses To remove gross receipts & franchise expenses from NOI for ratemaklng purposes. 74,531 1.0000000 74,531 6 7 (17) FPSC Assessment Fee on Franchise Fee Revenue To remove the FPSC assessment on Franchise Fee revenues. 30 1.0000000 30 8 9 (18) Payroll Taxes-Liaison Office Salaries To remove expenses associated with Gulf's liaison office located in Tallahassee. 20 0.9830180 20 10 (19) ECRC Expenses in Other Tax Expense To remove the ECRC payroll tax and ECRC property tax. 2,153 0.9702740 2,089 11 (20) FPSC Assessment Fee on ECRC 12 Revenues To remove the FPSC assessment on ECRC revenues. 108 1.0000000 108 13 (21) ECCR Expenses in Other Tax Expense To remove the ECCR payroll tax & ECCR property tax. 691 1.0000000 691 14 (22) FPSC Assessment Fee on ECCR Revenues To remove the FPSC assessment on ECCR revenues. 19 1.0000000 19 15 16 17 18 19 Leaeod: ECCR PPCC ECRC Supporting Schedules: Energy Conservation Cost Recovery Clause Purchased Power Capacity Cost Recovery Clause Environmental Cost Recovery Clause Recap Schedules: C-1, C-2 Schedule C-3 JURISDICTIONAL NET OPERATING INCOME ADJUSTMENTS FLORIDA PUBLIC SERVICE COMMISSION EXPLANATION: List and explain all proposed COMPANY: GULF POWER COMPANY year, the prior year and the most recent historical adjustments to net operating income for the test year. DOCKET NO.: 130140-EI (1) (2) Une Adj No. No. Prior Year Ended 12/31/13 Historical Year Ended 12131/12 (4) Reason tor Adjustment or Omission (Provide Supporting Schedules) Adjustment _X_Projected Test Year Ended 12/31/14 __ __ ($OOO's) (3) Page 4 of 16 Type of Data Shown: Witness: S. D. Ritenour (5) (6) (7) Total Adjustment Jurisdictional Factor Jurisdictional Adjustment 379 1.0000000 379 1 2 CommissiQn Adju§!m�nts (Conlioued): (23) FPSC Assessment Fee on Fuel Revenues 3 4 (24) FPSC Assessment Fee on PPCC Revenues To remove the FPSC Assessment fee on capacity revenues. 43 1.0000000 43 5 6 (25) Institutional Advertising To remove expenses related to institutional advertising. 30 0.9835526 30 7 8 (26) Economic Development Expenses To remove 5% of expenses related to economic development. 63 0.9997389 63 306 0.9835526 301 41 0.9835526 40 To remove the FPSC Assessment fee on fuel revenues. ... .-. ._, 9 (27) Tallahassee Liaison Expenses O&M 10 To remove expenses related to Gulfs liaison office located in Tallahassee. 11 (28) Management Financial Planning Services 12 To remove the management financial planning services from net operating income. 13 (29) Marketing Support Activities 14 To remove expenses that are promotional in nature. 156 1.0000000 156 15 (30) Wholesale Sales Expense 16 To remove expense associated with wholesale activities. 255 1.0000000 255 17 18 19 20 Legend: ECCR PPCC ECRC Supporting Schedules: Energy Conservation Cost Recovery Clause Purchased Power Capacity Cost Recovery Clause Environmental Cost Recovery Clause Recap Schedules: C-1, C-2 Schedule C-3 EXPLANATION: List and explain all proposed COMPANY: GULF POWER COMPANY year, the prior year and the most recent historical adjustments to net operating income for the test DOCKET NO.: 130140-EI (2) Line Adj No. No. 1 2 3 4 5 (4) Reason for Adjustment or Omission (Provide Supporting Schedules) Adjustment (5) (6) (7) Total Adjustment Jurisdictional Factor Jurisdictional Adjustment To reflect the tax effect of all Commission adjustments. 31,211 30,903 (32) Income Taxes - Interest Synchronization To reflect the tax effect of interest synchronization. (6,925) (6,816) �56,623� {56,024� Total Commission Adjustments 7 Company Adjustme[!ts: 9 To increase the property insurance reserve annual accrual to $9 million. 10 (34) Amortization of Rate Case Expenses 11 To reflect the amortization of rate case expenses. 12 (35) Distribution New Business Depreciation 13 To decrease depreciation related to new business capital expenditures adjustment. 14 15 16 17 Witness: S. D. Ritenour CQ!!!i!D §§iQD A!;!lustmems (Continues;!}: 6 8 Prior Year Ended 12/31/13 (31) Income Taxes - Adjustments ...... ...... _X_Projected Test Year Ended 12/31/14 __ __ ($OOO's) (3) Type of Data Shown: Historical Year Ended 12/31/12 year. (1) Page 5 of 16 JURISDICTIONAL NET OPERATING INCOME ADJUSTMENTS FLORIDA PUBLIC SERVICE COMMISSION {33) Increase In Property Insurance Reserve Legend: ECCR PPCC ECRC Supporting Schedules: (5,500) 0.9845096 (5,415) (930) 1.0000000 (930) 67 0.9999468 67 Energy Conservation Cost Recovery Clause Purchased Power Capacity Cost Recovery Clause Environmental Cost Recovery Clause Recap Schedules: C-1, C-2 Schedule C-3 JURISDICTIONAL NET OPERATING INCOME ADJUSTMENTS FLORIDA PUBLIC SERVICE COMMISSION EXPLANATION: List and explain all proposed COMPANY: GULF POWER COMPANY year, the prior year and the most recent historical adjustments to net operating income for the test (1) (2) _X_Projected Test Year Ended 12/31/14 Prior Year Ended 12/31/13 __ Historical Year Ended 12/31/12 year. DOCKET NO.: 130140-EI Page 6 of 16 Type of Data Shown: __ ($OOO's) (3) (4) Witness: S. D. Ritenour (5) (6) (7) Total Adjustment Jurisdictional Factor Jurisdictional Adjustment Reason for Adjustment Line Adj No. No. 1 2 3 ...... l� or Omission (Provide Adjustment Supporting Schedules) CQmi2!Wll Adjustmen!§ (CQntinue!;!): (36) Depreciation & Dismantlement Adj: 4 5 (37) 6 7 (38) 8 9 (39) To adjust depreciation & dismantlement based on the 297 various 332 558 o.9836n9 549 58 0.9701749 56 400 0.9705189 388 254 0.9701809 246 1,475 0.9705159 1,432 2013 depreciation study. 2013 Depreciation Study To reflect the decrease in Operations & Maintenance Hiring Lag Adjustment to O&M due to a hiring lag adjustment. Perdido Unit 3 Adjustment - Prop. Tax To remove property tax expense associated with Perdido Unit Perdido Unit 3 Adjustment - Prod. O&M To remove production O&M associated with Perdido Unit 10 (40) 11 Perdido Unit 12 (41) 13 Scholz O&M - O&M 14 (42) Income Taxes - Adjustments 15 Total Company Adjustments 16 17 18 19 legend· 3 Adjustment - Depreciation 3. 3. To remove depreciation expense associated with Perdido Unit 3 . To reduce O&M expense associated with Plant Scholz. To reflect the tax effect of all Company adjustments. ECCR Energy Conservation Cost Recovery Clause PPCC Purchased Power Capacity Cost Recovery Clause ECRC Environmental Cost Recovery Clause Supporting Schedules: 1,281 1,263 (2,040) (2,012l Recap Schedules: C-1, C-2 FLORIDA PUBLIC SERVICE COMMISSION EXPLANATION: List and explain all proposed adjustments to net operating income for the test COMPANY: GULF POWER COMPANY year, the prior year and the most recent historical Line Adj No. No. (4) Reason for Adjustment or Omission (Provide Supporting Schedules) Adjustment ;,.; _X_Prior Year Ended 12/31/13 Witness: S. D. Ritenour (5) (6) (7) Total Adjustment Jurisdictional Factor Jurisdictional Adjustment QQ!D!Di§§IQ!J 8!;!jy§lments: 1 2 3 (1) Fuel Revenues To remove all fuel-related revenues and expenses from NOI (net operating Income) for ratemaking purposes. 4 (2) Fuel Expense To remove all fuel-related revenues and expenses from NOI for ratemaking purposes. 584,163 0.9204554 537,696 6 7 (3) Fuel Expense - Interchange Energy To remove all fuel-related revenues and expenses from NOI for ratemaklng purposes. 34,441 0.8705032 29,981 8 9 (4) Purchased Transmission To remove expenses associated with transmission that are recoverable through the fuel clause. 403 0.9727047 392 10 11 (5) Peabody Litigation Fees To remove the Peabody litigation fees that are recoverable through the fuel clause. 100 0.9700000 97 12 13 (6) ECCR Revenues To remove all ECCR revenues and expenses from NOI for ratemaking purposes. (25,891) 14 (7) ECCR Expenses in O&M Expense To remove all ECCR revenues and expenses from NOI for ratemaking purposes. 23,262 5 )IIIII( Projected Test Year Ended 12/31/14 __ __ ($000's) (3) (2) Type of Data Shown: Historical Year Ended 12/31/12 year. DOCKET NO.: 130140-EI (1) Page 7 of 16 JURISDICTIONAL NET OPERATING INCOME ADJUSTMENTS Schedule C-3 15 16 17 18 19 Legend: ECCR PPCC ECRC Supporting Schedules: (619,912) Direct Direct 1.0000000 (568,509) (25,891) 23,262 Energy Conservation Cost Recovery Clause Purchased Power Capacity Cost Recovery Clause Environmental Cost Recovery Clause Recap Schedules: C-1, C-2 JURISD ICTIONAL NET OP ERATING INCOME ADJUSTMENTS Schedule C-3 EXPLANATION: Ust and explain all proposed FLORIDA PUBLIC SERVICE COMMISSION adjustments to net operating Income for the test COMPANY: GULF POWER COMPANY DOCKET NO.: 130140-EI (1) Line Adj No. No. ..... � (3) (2) year, the prior year and the most recent historical year. ($000's) (4) Reason for Adjustment or Omission (Provide Supporting Schedules) Adjustment Page 8 o f 16 Type of Data Shown: Projected Test Year Ended 12131/14 __ _X_Prior Year Ended 12/31/13 Historical Year Ended 12/31/12 __ Witness: S. D. Ritenour (5) (6) (7) Total Adjustment Jurisdictional Factor Jurisdictional Adjustment 336 1.0000000 336 1 2 3 Qommi§§jon Adjy§!!Df!!Jts (CQOli[!uf!!j): (8) ECCR Depreciation 4 5 (9) PPCC Revenues To remove all PPCC revenues and expenses from NOI for ratemaking purposes. (46,807) 6 7 (10) PPCC Expenses To remove all PPCC revenues and expenses from NOI for ratemaking purposes. 38,775 0.9657346 37,446 8 9 (11) Purchased Transmission To remove transmission expenses that are recoverable through the capacity clause. 9,648 0.9657346 9,317 To remove all ECCR revenues and expenses from NOI for ratemaking purposes. (147,830) Direct Direct (46,797) (143,501) 10 (12) ECRC Revenues 11 To remove all ECRC revenues and expenses from NOI for ratemaking purposes. 12 (13) ECRC Expenses in O&M 13 To remove all ECRC revenues and expenses from NOI for ratemaking purposes. 24,999 0.9698043 24,244 14 (14) ECRC in Depreciation Expense 15 To remove all ECRC revenues and expenses from NOI for ratemaking purposes. 40,764 0.9705293 39,563 16 17 18 19 Legeod: ECCR PPCC ECRC Energy Conservation Cost Recovery Clause Purchased Power Capacity Cost Recovery Clause Environmental Cost Recovery Clause Recap Schedules: C-1, C 2 Supporting Schedules: - ------- --------- --- Schedule C-3 -- - ------ JURISDICTIONAL NET OPERATING INCOME ADJUSTMENTS EXPLANATION: List and explain all proposed Type of Data Shown: adjustments to net operating income for the test __ COMPANY: GULF POWER COMPANY year, the prior year and the most recent historical _X_Prior Year Ended 12/31/13 year. __ DOCKET NO.: 130140-EI (1) (2) Une Adj No. No. ...... �· Page 9 of 16 FLORIDA PUBLIC SERVICE COMMISSION Historical Year Ended 12/31/12 ($OOO's) (3) (4) Reason for Adjustment or Omission (Provide Supporting Schedules) Adjustment 1 2 3 Comm!§§iQn Agjy§!me!J.l§ (Qonti!JY�!:l): (15) Gross Receipts & Franchise Fee Revenues 4 5 Projected Test Year Ended 12131/14 Witness: S. D. Ritenour (5) (6) (7) Total Adjustment Jurisdictional Factor Jurisdictional Adjustment To remove gross receipts & franchise revenues from NOI for ratemaking purposes. (69,568) 1.0000000 (69,568) (16) Gross Receipts & Franchise Fee Expenses To remove gross receipts & franchise expenses from NOI for ratemaklng purposes. 69,518 1.0000000 69,518 6 7 (17) FPSC Assessment Fee on Franchise Fee Revenue To remove the FPSC assessment on Franchise Fee revenues. 28 1.0000000 28 8 9 (18) Payroll Taxes-Uaison Office Salaries To remove expenses associated with Gulf's liaison office located in Tallahassee. 20 0.9830180 20 10 (19) ECRC Expenses in Other Tax Expense To remove the ECRC payroll tax and ECRC property tax. 1,034 0.9702740 1,003 11 (20) FPSC Assessment Fee on ECRC 12 Revenues To remove the FPSC assessment on ECRC revenues. 103 1.0000000 103 13 (21) ECCR Expenses in Other Tax Expense To remove the ECCR payroll tax & ECCR property tax. 649 1.0000000 649 14 (22) FPSC Assessment Fee on ECCR 15 Revenues To remove the FPSC assessment on ECCR revenues. 19 1.0000000 19 16 17 18 19 Legend: ECCR PPCC ECRC Supporting Schedules: Energy Conservation Cost Recovery Clause Purchased Power Capacity Cost Recovery Clause Environmental Cost Recovery Clause Recap Schedules: C-1 C 2 , - JURISDIC TIONAL NET OPERATING INCOME ADJUSTMENTS Schedule C-3 EXPLANATION: List and explain all proposed FLORIDA PUBLIC SERVIC E COMMISSION adjustments to net operating income for the test COMPANY: GULF POWER COMPANY year, the prior year and the most recent historical (1) Une Adj No. No. (4) Reason for Adjustment or Omission (Provide Supporting Schedules) Adjustment _X_Prior Year Ended 12/31/13 __ ($COO's) (3) (2) Projected Test Year Ended 12/31/14 __ Historical Year Ended 12/31/12 year. DOCKET NO.: 130140-EI Page 10 of 16 Type of Data Shown: Witness: S. D. Ritenour (5) (6) (7) Total Adjustment Jurisdictional Factor Jurisdictional Adjustment 337 1.0000000 337 1 2 Qgmmi§§iQD �justm�Dl§ (Co!J!iou�g): (23) FPSC Assessment Fee on Fuel Revenues 3 4 (24) FPSC Assessment Fee on PPCC Revenues To remove the FPSC Assessment fee on capacity revenues. 33 1.0000000 33 5 6 (25) Institutional Advertising To remove expenses related to institutional advertising. 30 0.9835526 30 7 8 (26) Economic Development Expenses To remove 5% of expenses related to economic development. 62 0.9997389 62 299 0.9835526 294 41 0.9835526 40 To remove the FPSC Assessment fee on fuel revenues. ..... = 9 (27) Tallahassee Uaison Expenses O&M 10 To remove expenses related to Gulf's liaison office located in Tallahassee. 11 (28) Management Financial Planning Services 12 To remove the management financial planning services from net operating income. 13 (29) Marketing Support Activities 14 To remove expenses that are promotional in nature. 156 1.0000000 156 15 (30) Wholesale Sales Expense 16 To remove expense associated with wholesale activities. 244 1.0000000 244 17 18 19 20 Legend: ECCR PPCC ECRC Supporting Schedules: Energy Conservation Cost Recovery Clause Purchased Power Capacity Cost Recovery Clause Environmental Cost Recovery Clause Recap Schedules: C-1, C-2 Schedule C-3 EXPLANATION: List and explain all proposed COMPANY: GULF POWER COMPANY year, the prior year and the most recent historical adjustments to net operating Income for the test year. DOCKET NO.: 130140-EI (1) (2) Line Adj No. No. Page 11 of 16 JURISDICTIONAL NET OPERATING INCOME ADJUSTMENTS FLORIDA PUBLIC SERVICE COMMISSION (4) Reason for Adjustment or Omission (Provide Supporting Schedules) Adjustment 1 2 3 Commission Adjustments