TAMPA, Fla. – Florida regulators have approved a plan that will result in a significant increase in base electric rates for Tampa Electric Company (TECO) customers starting in January 2025. The Florida Public Service Commission (PSC) signed off on the plan on Thursday, December 14th, which will lead to a $184.9 million increase in base rates next year.
The decision comes after months of deliberation and public hearings. The PSC made a series of underlying decisions on December 3rd, with Chairman Mike La Rosa describing Thursday’s vote as a “fallout” of those earlier decisions.
READ: Tampa Police Arrest Suspect In Deadly West Saint Joseph Street Shooting
The rate hike is expected to affect approximately 844,000 customers in Hillsborough, Polk, Pasco, and Pinellas counties. While the exact impact on individual customers will vary based on their specific usage, the PSC staff report estimates that residential customers using 1,000 kilowatt-hours per month will see their monthly bills increase from $136.44 to $145.58 in January.
Small commercial customers may see a slight decrease in their rates, while medium and large commercial and industrial customers are expected to face increases of 9 to 14 percent.
The rate increases have been a subject of controversy, with the Office of Public Counsel, representing consumers, arguing that Tampa Electric’s initial request for a $287.9 million increase was excessive. The office also contested the utility’s proposed return on equity, a measure of profitability.
READ: South Tampa Chamber Celebrates A Year Of Success, Honors Outstanding Achievements
Despite the opposition, the PSC approved a 10.5% return on equity, which is higher than the 9.5% advocated by the Office of Public Counsel.
Tampa Electric is not the only utility facing rate increases. Duke Energy Florida customers will also see higher base rates starting next year, as approved by the PSC in August. Additionally, Florida Power & Light is expected to file a rate proposal in early 2025, which could lead to further rate increases in 2026.
As Florida’s population continues to grow and energy demands increase, utilities are seeking higher rates to fund infrastructure improvements and meet regulatory requirements. These rate hikes, while necessary for maintaining reliable service, can place a significant burden on consumers, particularly during times of economic uncertainty.
Please make a small donation to the Tampa Free Press to help sustain independent journalism. Your contribution enables us to continue delivering high-quality, local, and national news coverage.
Connect with us: Follow the Tampa Free Press on Facebook and Twitter for breaking news and updates.
Sign up: Subscribe to our free newsletter for a curated selection of top stories delivered straight to your inbox.