Tampa Electric Co. to Raise Residential Bills Starting January Amid Rising Costs

TALLAHASSEE, Fla. – Tampa Electric Co. Will Increase Residential Bills Starting January

State regulators approved a new three-year base rate for Tampa Electric Co. on Tuesday, signaling an upcoming increase for residential customers beginning this January. This decision comes amid ongoing strain from rising costs tied to natural disasters and inflation.

Who Made the Decision?

The Florida Public Service Commission made the decision to approve Tampa Electric’s revised rate increase proposal. The company, which serves approximately 844,000 customers scattered across Hillsborough, Polk, Pasco, and Pinellas counties, previously sought a larger increase but adjusted its request following public backlash and scrutiny from watchdog groups.

What Are the Specific Changes?

Originally, Tampa Electric sought to raise rates by around $296.6 million for 2025, followed by $100 million in 2026 and $72 million in 2027. After revisions, the new proposal set the increments for 2025 down to $287.9 million, $92.4 million for 2026, and $65.5 million for 2027. Despite these adjustments, the base rate increase will still translate into a projected $5 monthly rise for residential customers using 1,000 kilowatt-hours of electricity per month, a standard measurement in the utility sector.

When Will This Take Effect?

The new rates are expected to impact customers starting in January of next year, meaning residents should prepare their budgets for increased energy expenses right after the holiday season.

Why Is This Happening?

The increases are linked to a range of factors including the need for infrastructure upgrades such as improving existing power plants and adding new solar-energy facilities. Additionally, Tampa Electric aims to recover substantial expenses related to restoration efforts following recent hurricanes, namely Hurricane Helene and Hurricane Milton. According to a report, the company is looking to recoup between $320 million and $370 million related to the latter storm.

What Do Experts Say?

Consumer advocates have voiced strong concerns over the financial impact that these hikes will impose on low-income families. Brooke Ward, a senior organizer for Food & Water Watch, described the approved increase as “a gut punch to struggling community members.” She highlighted that nearly one in five Tampa households spend over six percent of their income on energy bills, asserting that this burden interferes with funding for essential needs.

Other Considerations

Commission staff had previously suggested a more moderate approach, recommending an incremental revenue increase of $153.4 million for 2025, tapering off to no increase in 2027. The commission memo indicated that while TECO has been able to maintain service reliability and make necessary investments, the approved rate offers an expected return on equity of 10.5 percent, which is an increase from the current 10.2 percent rate.

Conclusion

As the residents of Tampa prepare for increased bills in the new year, the effects of these changes will ripple through the community, particularly affecting those who are already struggling to make ends meet. With heightened costs from recent natural disasters and inflation, many families hope for manageable energy costs as they navigate through these challenges.