Electric Base Rate Adjustment
On July 14, 2009, the Florida Public Service Commission (FPSC) revised Tampa Electric’s annual base revenue increase by $9.3 million effective August 13, and an additional $516,000 beginning January 1, 2010 based on a recalculation of the required annual reveues. The total base rate increase is more than offset by our lower fuel charge for all customer classes, which was approved by the FPSC earlier this year. Bill inserts with details about the revised rates will be provided to customers when the rates go into effect.
The FPSC approved an increase to Tampa Electric’s 2009 base rates and service charges on April 7, which was less than the company’s request. The FPSC also approved an additional increase, effective January 1, 2010, to recover the cost of five small generating units and rail facilities at Big Bend Power Station. This was the company’s first base rate increase since 1993, and these approvals came after more than eight months of detailed regulatory review of the company’s books and records. The new rates went into effect May 7, and, with reduced fuel charges, reduced total bills for all customers.
The impact of the revision is to be allocated to each rate class consistent with established cost of service methodology. Beginning August 13, the impact for a residential customer who uses 1,000 kilowatt-hours (kWh) per month is expected to be an increase of 61 cents to $114.67, from $114.06, excluding franchise fees and local taxes. Before the reduction in fuel in May, a 1,000-kWh bill was $128.44. Reflected in the calculation is Tampa Electric’s tiered or inverted base rate, which is designed to encourage the efficient use of energy by charging a higher rate for usage over 1,000 kWh.
The reduction in fuel charges approved by the FPSC was approximately $226.2 million, which includes the lower projected fuel costs through 2009 and overrecovered costs from 2008. Fuel costs are passed through from fuel suppliers to our customers with no markup or profit to Tampa Electric, and can make up nearly 50 percent of an electric bill. The lower fuel charges took effect May 7.
Understanding Power Costs
When you pay your monthly electric bill, what exactly are you paying for? Here you’ll find an explanation of your bill components and the costs that go into your electric service.
Energy Efficiency
See what Tampa Electric is doing to better serve our customers now through new and expanded energy-saving programs.
Customer Communications
View and print important information about Tampa Electric’s changes to your electric base rate and service charges.
