Regulators approve Tampa Electric bills dropping in January
Residential bills to remain among Florida’s lowest and well below national average
TAMPA, October 22, 2014
Thanks to lower natural gas prices, Tampa Electric customers will pay $1.14 less a month for electricity in January than they do today – even after an increase later this year. The Florida Public Service Commission (PSC) today unanimously approved Tampa Electric’s projected costs for fuel and other clauses.
A residential customer’s monthly bill will drop by $1.14, to $108.47 for 1,000 kilowatt-hours (kWh), about a 1 percent decrease from the current $109.61 a month. Commercial and industrial customers will see bills decrease by 1.7 percent and 3 percent, respectively.
“Tampa Electric provides outstanding value to our customers every day – for about the cost of a gallon of gasoline,” said Gordon Gillette, president of Tampa Electric. “We are proud that our rates are among the lowest in Florida – and well below the national average.”
Tampa Electric residential customers’ bills will remain 12 percent below the national average, which is $123.30 per month, according to July 2014 data from the Energy Information Administration.
In November, the average Tampa Electric residential customer bill will rise by 53 cents, as part of the 2013 rate settlement that is being phased in over three years. The January reduction for fuel and other clauses – of $1.67 – will more than offset that increase, ending with a net reduction of $1.14 a month for the average residential customer from what they pay today.
The company estimates that by the end of 2014 it will spend $13 million less on fuel than originally projected. The fuel portion of the bill is based on costs for natural gas and coal during the first six months of 2014, projections for the remainder of 2014 and expected fuel prices in 2015.
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. Fuel costs are passed through from fuel suppliers to our customers with no markup or profit to Tampa Electric. 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 , one of Florida’s largest investor-owned electric utilities, is part of the TECO Energy family of companies. Tampa Electric serves almost 700,000 customers in West Central Florida. TECO Energy Inc. (NYSE: TE) is an energy-related holding company with regulated electric and gas utility operations in Florida through Tampa Electric and Peoples Gas System . TECO Energy’s other major subsidiary, TECO Coal, owns and operates coal-production facilities in Kentucky, Tennessee and Virginia.