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AUSLEY MCMULLENFILED SEP 01, 2016DOCUMENT NO. 07238-16FPSC - COMMISSION CLERKATTORNEYS AND COUNSELORS AT LAW123 SOUTH CALHOUN STREETP.O. BOX 391 ZIP 32302)TALLAHASSEE, FLORIDA 32301(850) 224 -9115 FAX (850) 222 -7560September1,2016VIA: ELECTRONIC FILINGMs. Carlotta S. StaufferCommission ClerkFlorida Public Service Commission2540 Shumard Oak BoulevardTallahassee, FL 32399 -0850Re:Fuel and Purchased Power Cost Recovery Clause with GeneratingPerformance Incentive Factor; FPSC Docket No. 160001 -EIDear Ms. Stauffer:Attached for filing in the above docket on behalf of Tampa Electric Company are theoriginal of each of the following:1.Petition of Tampa Electric Company.2.Prepared Direct Testimony and Exhibit (PAR -3) of Penelope A. Rusk.3.Prepared Direct Testimony and Exhibit (BSB -2) of Brian S. Buckley.4.Prepared Direct Testimony of J. Brent Caldwell.5.Prepared Direct Testimony of Benjamin F. Smith II.Thank you for your assistance in connection with this matter.Sincerely,e0r-iames D. BeasleyJDB /ppAttachmentcc:All Parties of Record (w/attachment)5

CERTIFICATE OF SERVICEIHEREBY CERTIFY that a true copy of the foregoing Petition and Testimonies, filed onbehalf of Tampa Electric Company, has been furnished by electronic mail on this1Stday ofSeptember 2016, to the following:Ms. Suzanne BrownlessMs. Danijela JanjicOffice of the General CounselFlorida Public Service Commission2540 Shumard Oak BoulevardTallahassee, FL 32399 -0850sbrownle @psc.state.fl.usdjanjic @psc.state.fl.usMs. Beth KeatingGunster, Yoakley & Stewart, P.A.215 S. Monroe St., Suite 601Tallahassee, FL 32301bkeating @gunster.comMr. John T. ButlerAssistant General CounselMs. Maria Jose Moncada- RegulatoryMs. Patricia A. ChristensenMr. Erik SaylerAssociate Public CounselOffice of Public Counsel111 West Madison Street Room 812Tallahassee, FL 32399 -1400christensen .patty @leg.state.fl.usPrincipal AttorneyFlorida Power & Light Company700 Universe Boulevard (LAW /JB)Juno Beach, FL 33408 -0420john.butler @fpl.commaria.moncada@fpl.comsayler.erik @leg.state.fl.usMr. Kenneth HoffmanVice President, Regulatory RelationsFlorida Power & Light Company215 South Monroe Street, Suite 810Tallahassee, FL 32301 -1859-Ms. Dianne M. TriplettDuke Energy Florida, LLC299 First Avenue NorthSt. Petersburg, FL 33701ken.hoffman @fpl.comDianne.triplett@duke -energy.comMr. Matthew R. BernierMr. Mike CasselRegulatory and Governmental AffairsSenior CounselDuke Energy Florida, LLC106 East College Avenue, Suite 800Tallahassee, FL 32301 -7740Matthew.bernier@duke-energy.comFlorida Public Utilities CompanyFlorida Division of Chesapeake Utilities Corp.1750 SW 14th Street, Suite 200Fernandina Beach, FL 32034mcassel @fpuc.comMr. Jon C. Moyle, Jr.Moyle Law FirmMr. Robert L. McGee, Jr.Regulatory and Pricing Manager118 North Gadsden StreetTallahassee, FL 32301jmoyle @moylelaw.comGulf Power CompanyOne Energy PlacePensacola, FL 32520 -0780rlmcgee @southernco.com2

Mr. Jeffrey A. StoneMr. Russell A. BaddersMr. Steven R. GriffinBeggs & LanePost Office Box 12950Pensacola, FL 32591 -2950Mr. James W. BrewMs. Laura A. WynnStone Mattheis Xenopoulos & Brew, PC1025 Thomas Jefferson Street, NWEighth Floor, West TowerWashington, D.C. 20007 -5201jbrew@smxblaw.comlaw @smxblaw.comjas @beggslane.comrab @beggslane.comsrg @beggslane.comMr. Robert Scheffel WrightMr. John T. LaVia, IIIGardner, Bist, Wiener, Wadsworth,Bowden, Bush, Dee, LaVia & Wright, P.A.1300 Thomaswood DriveTallahassee, FL 32308Schef@gbwlegal.comJlavia @gbwlegal.comAT 4RNEY3

BEFORE THE FLORIDA PUBLIC SERVICE COMMISSIONIn re: Fuel and Purchased Power Cost Recovery)Clause with Generating Performance IncentiveFactor.))DOCKET NO. 160001 -EIFILED: September 1, 2016PETITION OF TAMPA ELECTRIC COMPANYTampa Electric Company("Tampa Electric" or "company "), hereby petitions theCommission for approval of the company's proposals concerning fuel and purchased powerfactors, capacity cost factors, generating performance incentive factors, and the projectedwholesale sales incentive benchmark set forth herein, and in support thereof, says:Fuel and Purchased Power FactorsTampa Electric projects a fuel and purchased power net true -up amount for thel .period January1,2016 through December 31, 2016 will be an over -recovery of 122,639,796(See Exhibit No. PAR -3, Document No. 2, Schedule El-C).2.The company's projected expenditures for the period January1,2017 throughDecember 31, 2017, when adjusted for the proposed GPIF penalty and true -up over -recoveryamount and spread over projected kilowatt -hour sales for the period January1,2017 throughDecember 31, 2017, produce a fuel and purchased power factor for the new period of 2.956 centsper kWh before the application of time of use multipliers for on -peak or off-peak usage. (SeeExhibit No. PAR -3, Document No. 2, Schedule El -E).3.The company's projected benchmark level for calendar year 2017 for gains onnon- separated wholesale energy sales eligible for the shareholder incentive as set forth by OrderNo. PSC- 00- 1744- PAA -EI, in Docket No. 991779 is 1,337,579 as provided in the directtestimony of Tampa Electric witness Penelope A. Rusk.

Capacity Cost FactorTampa Electric estimates that its net true -up amount applicable for the period4.January1,2016 through December 31, 2016 will be an under -recovery of 2,986,060, as shownin Exhibit No. PAR -3, Document No. 1, page 2 of 4.5.The company's projected expenditures for the period January1,2017 throughDecember 31, 2017, when adjusted for the true -up under -recovery amount and spread overprojected kilowatt -hour sales for the period, produce a capacity cost recovery factor for theperiod of 0.00074 cents per kWh. For demand- measured customers, the factor Tampa Electricproposes to recover is 0.27 per billed kW as set forth in Exhibit No. PAR -3, Document No.page31,of 4.GPIF6.Tampa Electric has calculated that it is subject to a GPIF reward of 969,593 forperformance during the period January7.1,2015 through December 31, 2015.The company is also proposing GPIF targets and ranges for the period January1,2017 through December 31, 2017 with such proposed targets and ranges being detailed in thetestimony and exhibits of Tampa Electric witness Brian S. Buckley filed herewith.2

WHEREFORE, Tampa Electric Company requests that its proposals relative to fuel andpurchased power cost recovery, capacity cost recovery and GPIF be approved as they relate toprior period true -up calculations and projected cost recovery charges, and that the Commissionapprove the company's projected wholesale sales incentive benchmark.DATED this/%day of September 2016.Respectfully submitted,JAD. BEASLEYJ. JEFFRY WAHLENASHLEY M. DANIELSAusley McMullenPost Office Box 391Tallahassee, Florida 32302(850) 224 -9115ATTORNEYS FOR TAMPA ELECTRIC COMPANY3

CERTIFICATE OF SERVICEIHEREBY CERTIFY that a true copy of the foregoing Petition, filed on behalf of TampaElectric Company, has been furnished by electronic mail on this 1st day of September 2016, to thefollowing:Ms. Suzanne BrownlessMs. Danijela JanjicOffice of the General CounselFlorida Public Service Commission2540 Shumard Oak BoulevardTallahassee, FL 32399 -0850sbrownle @psc.state.fl.usdjanjic @psc.state.fl.usMs. Beth KeatingGunster, Yoakley & Stewart, P.A.215 S. Monroe St., Suite 601Tallahassee, FL 32301Ms. Patricia A. ChristensenMr. Erik SaylerAssociate Public CounselPrincipal AttorneyFlorida Power & Light Company700 Universe Boulevard (LAW /JB)Juno Beach, FL 33408 -0420john.butler r. John T. ButlerAssistant General CounselMs. Maria Jose MoncadaOffice of Public Counsel111 West Madison Street - Room 812Tallahassee, FL 32399 -1400christensen.patty @leg.state.fl.ussayler.erik @leg.state.fl.us- RegulatoryMr. Kenneth HoffmanVice President, Regulatory RelationsFlorida Power & Light Company215 South Monroe Street, Suite 810Tallahassee, FL 32301 -1859Ms. Dianne M. TriplettDuke Energy Florida, LLC299 First Avenue NorthSt. Petersburg, FL 33701ken.hoffman@fpl.comDianne.triplett@duke- energy.comMr. Mike CasselRegulatory and Governmental AffairsFlorida Public Utilities CompanyMr. Matthew R. BernierSenior CounselDuke Energy Florida, LLC106 East College Avenue, Suite 800Tallahassee, FL 32301 -7740Mathew.bernier @duke -energy.comFlorida Division of Chesapeake Utilities Corp.1750 SW 14th-Street, Suite 200Fernandina Beach, FL 32034mcassel @fpuc.comMr. Jon C. Moyle, Jr.Moyle Law Firm118 North Gadsden StreetTallahassee, FL 32301Mr. Robert L. McGee, Jr.Regulatory and Pricing ManagerGulf Power CompanyOne Energy PlacePensacola, FL 32520 -0780rlmcgee @southernco.comjmoyle @moylelaw.com4

Mr. Jeffrey A. StoneMr. Russell A. BaddersMr. Steven R. GriffinBeggs & LanePost Office Box 12950Pensacola, FL 32591 -2950Mr. James W. BrewMs. Laura A. WynnStone Mattheis Xenopoulos & Brew, PC1025 Thomas Jefferson Street, NWEighth Floor, West TowerWashington, D.C. 20007 -5201jas @beggslane.comrab @beggslane.comsrg @beggslane.comjbrew@smxblaw.comlaw @smxblaw.comMr. Robert Scheffel WrightMr. John T. LaVia, IIIGardner, Bist, Wiener, Wadsworth,Bowden, Bush, Dee, LaVia & Wright, P.A.1300 Thomaswood DriveTallahassee, FL 32308Schef@gbwlegal.comJlavia@gbwlegal.com5

BEFORE THEFLORIDA PUBLIC SERVICE COMMISSIONDOCKET NO. 160001-EIFUEL & PURCHASED POWER COST RECOVERYANDCAPACITY COST RECOVERYPROJECTIONSJANUARY 2017 THROUGH DECEMBER 2017TESTIMONY AND EXHIBITOFPENELOPE A. RUSKFILED: SEPTEMBER 1, 2016

TAMPA ELECTRIC COMPANYDOCKET NO. 160001-EIFILED: 9/1/20161BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION2PREPARED DIRECT TESTIMONY3OF4PENELOPE A. RUSK56Q.Please state your name, address, occupation and employer.A.My name is Penelope A. Rusk. My business address is employed by Tampa Electric Company (“Tampa Electric” or11“company”) in the position of12Regulatory Affairs Department.Manager, Rates in albackground and business experience.151617A.I hold a Bachelor of Arts degree in Economics from the18University of New Orleans and a Master of Arts degree in19Economics from the University of South Florida. I joined20Tampa Electric in 1997, as an Economist in the Load21Forecasting Department. In 2000, I joined the Regulatory22Affairs Department, where I have assumed positions of23increasing responsibility during my 19 years of electric24utility experience, including load forecasting, drate

1setting activities for wholesale and retail rate cases.2My duties include managing cost recovery for fuel and3purchased power, interchange sales, capacity payments,4and approved environmental projects.56Q.What is the purpose of your testimony?A.The purpose of my testimony is to present, for Commission789review and approval, the proposed annual capacity cost10recovery factors, the proposed annual levelized fuel and11purchased12inverted13encourage14projected wholesale incentive benchmark for January 201715through December 2017. I will also describe significant16events that affect the factors and provide an overview of17the composite effect on the residential bill of changes18in the various cost recovery factors for onandantothe1920Q.Have you prepared an exhibit to support your testimony?A.Yes. Exhibit No. PAR-3, consisting of four documents, was212223prepared under my direction and supervision. Document No.241, consisting of four pages, is furnished as support for25the projected capacity cost recovery factors.2Document