Tampa Electric bill adjustment approved for costs of fuel, other factors
Residential bills would remain among Florida’s lowest and below national average
TAMPA, November 4, 2013
As part of an annual adjustment to reflect the prices of fuel and other factors, Tampa Electric customers’ bills will rise slightly in January – and will remain 9 percent below the national average.
The Florida Public Service Commission (PSC) today approved the company’s request as filed.
Beginning in January, Tampa Electric’s residential customers will pay $109.61 a month for using 1,000 kilowatt-hours (kWh) of electricity, an increase of $1.35, or 1.2 percent, from the current $108.26. (On Nov. 1, residential customer bills rose to $108.26, from $102.58, as part of a three-year, phased-in rate settlement.)
Tampa Electric residential customers’ bills remain among the lowest in Florida and 9 percent below the national average – which is $120.50 per month, according to August 2013 data from the Energy Information Administration.
In January, commercial customers will see bills rise by 1 percent, and industrial customers will see bills drop by 1.4 percent.
“With one of the lowest rates in Florida, Tampa Electric is proud to serve you every day – for about the cost of a gallon of gas – while providing outstanding value to our customers,” said Gordon Gillette, president of Tampa Electric.
Fuel costs are passed through from fuel suppliers to our customers with no markup or profit to Tampa Electric. 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 continuing to sell its gypsum byproduct for beneficial reuse or by storing it on-site instead of sending it to a landfill.
Tampa Electric’s fuel mix is predominantly comprised of coal and natural gas. The cost of fuel is a substantial portion of an electric bill, currently about one-third of a residential customer’s bill. Tampa Electric maximizes the use of existing low-cost, well-performing plants and power purchased from other companies to mitigate costs and pass the savings to customers.
Tampa Electric Company is the principal subsidiary of TECO Energy Inc. (NYSE: TE), an energy-related holding company with regulated utility operations in Florida, including both Tampa Electric and Peoples Gas System . Tampa Electric serves more than 687,000 customers in West Central Florida. TECO Energy’s other major subsidiary, TECO Coal, owns and operates coal-production facilities in Kentucky and Virginia.