Tampa Electric: Higher Electric Bills May Be on the Horizon

Tampa Electric customers could see slightly higher bills beginning in January, primarily due to an annual adjustment to reflect the prices of fuel and other factors.

The company filed projected costs for fuel and other clauses with the Florida Public Service Commission (PSC). If the PSC approves the requests as filed, a residential customer’s monthly bill would rise by $1.27 to $103.85 for 1,000 kilowatt-hours (kWh), about a 1 percent rise from the current $102.58 a month. Commercial and industrial customers would see bills rise by 1.4 percent and 1.5 percent, respectively.

“With one of the lowest rates in Florida, Tampa Electric is proud to serve you every day for less than the cost of a gallon of gas, while providing outstanding value to our customers,” said Gordon Gillette, president of Tampa Electric.

The PSC is expected to vote on the fuel, conservation and environmental cost adjustments after a hearing scheduled to begin Nov. 4.

The fuel and other cost adjustments would be in addition to Tampa Electric’s requested base rate increase, which is pending before the PSC. Tampa Electric is seeking an increase of $10.41 a month – or 35 cents a day – for the average residential customer due to rising costs and sluggish growth. Tampa Electric customers’ total monthly bills for 2014 will be determined in December, after the PSC has voted on both the fuel and base-rate adjustments.

Even if both requests are approved as filed, Tampa Electric residential customers’ bills would remain about 5 percent below the national average – which is $119.50 per month, according to June 2013 data from the Energy Information Administration. 

The company estimates that by the end of 2013 it will spend $16 million less on fuel than originally projected. The fuel portion of the bill is based on actual costs for natural gas and coal during the first six months of 2013, projections for the remainder of 2013 and expected fuel prices in 2014.  It also expects to reduce environmental expenses by storing gypsum on-site instead of sending it to a landfill.

What do you think about the possible hike in your electric bill? Tell us in the comments.