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.
Author: STAFF HERE ORLANDO WRITER
ORLANDO STAFF WRITER The ORLANDO STAFF WRITER represents the experienced team at HEREOrlando.com, your go-to source for actionable local news and information in Orlando, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Orlando International Fringe Theatre Festival, Megacon Orlando, and Central Florida Fair. Our coverage extends to key organizations like the Orlando Economic Partnership and Hispanic Chamber of Commerce Metro Orlando, plus leading businesses in leisure and hospitality that power the local economy such as Walt Disney World Resort, AdventHealth, and Universal Orlando. As part of the broader HERE network, including HEREJacksonville.com, HEREPetersburg.com, HERETallahassee.com, and HERETampa.com, we provide comprehensive, credible insights into Florida's dynamic landscape.
