Tampa Electric Company (TECO) customers will see their monthly bills rise in the new year following approval of a base rate increase by the Florida Public Service Commission.
While the exact amount of the increase is still being calculated, it was initially projected to be around $5 per month for residential customers using 1,000 kilowatt hours of electricity. The increase comes as a “gut punch” to many residents already struggling with the financial impacts of recent hurricanes and inflation, according to consumer advocates.
READ: Trump Eyes Florida Gov. DeSantis For Defense Secretary Amid Hegseth Challenges: REPORT
TECO, which serves approximately 844,000 customers in Hillsborough County and parts of Polk, Pasco, and Pinellas counties, initially requested a significantly larger increase. However, the Public Service Commission ultimately approved a more moderate increase, granting the company a 10.5% return on equity, up from the current 10.2%.
The approved rate increase will allow TECO to fund various projects, including upgrades to existing power plants and the expansion of solar energy facilities. While consumer advocates argued for a smaller increase, the commission determined that the approved rate will enable TECO to maintain reliable service and make necessary investments in its infrastructure.
This rate hike is separate from the storm recovery costs that TECO is expected to seek from customers in the wake of Hurricanes Helene and Milton. Those costs, estimated to be between $365 million and $425 million, will likely lead to further increases in customer bills in the coming months.
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.
Android Users: Download our free app to stay up-to-date on the latest news.
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.