If Tampa Electric seeks to raise rates next year, it would increase the burden on residents and lessen the impact on large businesses, according to filings reviewed by the Tampa Bay Times.
If their proposed 2025 rate structure is approved by state regulators, it would raise costs for everyone. But millions of dollars in bills could be redirected from some of Tampa Electric’s largest customers, including factories, hospitals and major retailers, to home consumers and small businesses. Under the plan, the average household would be charged at least $200 more per year in base rates than they currently pay, according to the filing.
The reason for this shift dates back to 2021, when Tampa Electric last raised rates for customers. The case ended in a long and complicated settlement agreement, part of which required the utility to change how it allocates costs in the next rate case. At the time, it received little attention.
Now, as utilities seek further price increases, documents in the filing highlight the potential impact a prior agreement could have on ratepayers. Tampa Electric filed We will provide state regulators with two cost structures and an alternative cost structure that meets the requirements of the 2021 settlement.under The first option would require residents to pay about $70 million more next year compared to the second plan, according to a Times analysis.
Meanwhile, Tampa Electric estimates large industrial and commercial power users will see less of an increase than originally planned, according to documents.It is partially This is because of the way power companies allocate costs according to peak energy usage.
Residential energy consumption tends to spike during the hottest and coldest months — January, June, July, August. By comparison, spending among large corporate customers is more stable, Jordan Williams, director of pricing and financial analysis at Tampa Electric, said in written testimony. Therefore, passing more costs on residents and small businesses will be commensurate with the costs incurred by peak demand, he said.
The $70 million figure was an early estimate, and Tampa Electric disputed the accuracy of that number in an email to the Times.but Florida Public Service Commission Staff We found that residential customers are likely to pay more under this proposal compared to Tampa Electric’s other plans. to distribution costs in 2025.
Requests for price increases must be approved by the commission, which regulates utilities and decides how much they can charge customers. Tampa Electric is seeking an increase in its base rate, a key component of electricity rates that also includes other charges such as fuel.
Duke Energy Florida is also seeking an increase in base rates for customers next year, but not the same type of cost structure.
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Tampa Electric said in a filing with the commission that the plan is needed for the 2021 settlement agreement.
In addition to the public defender’s office representing consumers, the settlement agreement includes the Florida Retail Federation, Walmart, the West Central Florida Hospital Utility Federation, and Florida Industrial Power Users involved in the 2021 lawsuit. Signed by multiple corporate power users. group. Federal agencies also signed on, including representatives from MacDill Air Force Base, a major power user.
Tampa Electric’s Williams said in testimony that easing the burden of rate hikes on large businesses in the Tampa area could help make them more competitive, which could be a “catalyst for economic development.” He added that there is.
“Plain and simple, TECO is asking for rate increases, and the majority of those increases will go to residential customers,” said Brooke Ward, senior Florida organizer for the environmental group Food & Water Watch. “While industrial customers are taking a break, residential customers are taking on a greater energy burden. Much of this is happening because of agreements made behind closed doors with industrial customers in 2021.”
The hospital group did not respond to emailed questions. Walmart and the Florida Retail Federation declined to comment.
The Florida Industrial Power Users Group, which is made up of “companies whose operations depend on and use large amounts of electricity and natural gas,” said in a statement that the proposal takes into account the causes of peak demand and: He added: “Fair and Recognized” methods have been approved by utility regulators in other states.
Late last year, Tampa Electric asked the Public Service Commission to allow it to dispense with filing documents outlining a version more favorable to residential users. More than 100 Hillsborough County residents sent a letter to the commission asking it to deny the request, citing concerns about potentially high housing bills.
Tampa Electric withdrew its request and submitted documents outlining both options.
Tampa Electric spokeswoman Shelley Jacobs said in an email that the proposed base rate increase would increase the amount of bills for residential as well as commercial and industrial customers compared to what they currently pay. He said the market would rise at a “similar” rate.
“When the (committee) makes its decision, it will consider the fairest way to distribute costs among all customers,” Jacobs said. “He offers two ways to do that assessment, if you want.”
In another recent filing, Tampa Electric provided details about how customers’ rates would be affected if its base rate increase request is approved.
it is, For a typical residential household, the base rate would jump from about $88 per month in 2024 to $107 per month in 2025. The base monthly fee will increase by approximately $7 more in 2026 and approximately $5 in 2027.
Tampa Electric says lower fuel prices could help offset the requested increases, with the average customer paying $5 more in January 2025 than they paid in January 2024. He said it would be. On Tuesday, the Public Service Commission approved fuel cost cuts for Tampa Electric and auto companies. Duke University customers he said go into effect in June and are estimated to save residents about $7 on their monthly bills this year.
After hearings scheduled for June in the Tampa Bay area, the commission will proceed with the case in Tallahassee. A final decision is expected to be made by the end of the year.
Spotlight Tampa Bay
Tampa Mayor Jane Castor, St. Petersburg Mayor Ken Welch, and climate experts will take to the stage at the Palladium on Tuesday, May 21st to discuss how climate change will affect the Tampa Bay region at the Spotlight Tampa Bay Forum. Discuss how it affects you.ticket is $20, or $10 for students with ID. Limited quantities of $50 VIP tickets are available.We will support the proceeds Tampa Bay Times Journalism Fund. For more information, click here.
