TAMPA, Fla. – Tampa Electric (TECO) has filed a proposal with the Florida Public Service Commission (PSC) seeking an increase in customer rates starting in 2025. The company attributes the proposed hike to rising customer demand, infrastructure investments, and the need to transition to cleaner energy sources.
TECO’s proposal outlines a phased approach, with an initial increase of approximately 3% in January 2025, followed by subsequent adjustments in 2026 and 2027.
If approved as filed, the average residential customer’s monthly bill for 1,000 kilowatt-hours would increase by around $5 in 2025.
While the company acknowledges the impact on customers, it emphasizes that the rate adjustments are essential to maintain a reliable and resilient power grid.
Read: TECO To Start Critical Repairs On Tampa International Airport’s Airside F Electrical System
TECO’s investments include upgrading power plants, enhancing grid infrastructure, and expanding its renewable energy portfolio. The company aims to reduce its reliance on fossil fuels and increase the use of solar power, which is expected to lower fuel costs and offset the impact of rate hikes in the long run.
The proposal has garnered mixed reactions from consumer advocates and industry experts. While some argue that the rate hikes are necessary to support a growing population and modernize the electric grid, others raise concerns about the affordability of electricity for low-income households and the potential burden on businesses.
Find Energy compared nationwide and state electric utility rates and bill data, finding that Tampa Electric Customers were already paying more than the state average.
Tampa 12-Month Rolling Average Residential Electric Rate: 16.52¢ per kWh
- 0.08% lower than last month
- 15.34% higher than March last year
- 8.75% higher than the Florida average
- 2.80% higher than the US average
- 705th in the state out of 958 cities
- The state rank has increased by 5 since last month
- The state rank has dropped by 160 since March last year
- 22,397th in the US out of 31,812 cities
- The national rank has increased by 168 since last month
- The national rank has dropped by 6,559 since March last year
Tampa 12-Month Rolling Average Residential Electric Bill: $188.93 per month
- 0.62% lower than last month
- 15.72% higher than March last year
- 13.72% higher than the Florida average
- 39.05% higher than the US average
- 940th in the state out of 958 cities
- The state rank is the same since last month
- The state rank has dropped by 287 since March last year
- 31,018th in the US out of 31,812 cities
- The national rank has increased by 2 since last month
- The national rank has dropped by 4,398 since March last year
“On average, electricity rates are on the rise both statewide (up 6.59%) and nationally (up 2.89%). However, some areas are more heavily impacted than others, as we see in parts of California and Connecticut. The Tampa area has experienced one of the highest increases in the state in terms of the average expense they pay per kWh. This, of course, leads to a higher-than-average bill for residential consumers. The electric rate paid in Tampa is currently 8.75% higher than the average Florida average rate of 15.19¢ per kWh. The average residential bill is currently 13.72% higher than the Florida average bill of $166.13,” said Matt Hope of Find Energy.
Read: Florida Regulators Approve Plan To Lower Costs For Duke Energy, TECO Customers
The PSC will review TECO’s proposal and hold public hearings to gather feedback from stakeholders before making a final decision on the rate increase. The commission is expected to issue a ruling by the end of the year.
In the meantime, TECO is encouraging customers to explore energy-saving options and take advantage of its assistance programs for low-income households. The company is also committed to transparency and providing regular updates on the rate proposal to the public.
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