When you open your electric bill, your attention probably goes to one number first: the amount due.
That number reflects both the cost of electricity and how much energy you use. While summer heat can drive up energy use, the cost customers pay for electricity has been moving in a welcome direction: Down!
Beginning in January 2027, a residential customer using 1,000 kilowatt-hours (kWh) a month will pay $154.18, another 1.4% reduction. That comes just five months after residential and small business bills dropped 11% to 12% when the temporary storm recovery charge ended in August.
That’s two reductions in five months, further lowering residential bills that are already below the national average.
Another 1.4% Reduction Begins in January
So, what’s driving the latest decrease? Lower fuel costs.
Fuel generally makes up about 20% of a residential customer’s monthly bill. The fuel charge reflects the cost of natural gas and other fuels used to generate electricity, and Tampa Electric does not earn a profit on fuel costs.
Because natural gas prices have been lower than anticipated and are expected to remain lower in the coming months, Tampa Electric can reduce the fuel charge and pass those savings directly to customers.
Commercial and industrial customers will also see reductions of 1.5% to 6%, depending on usage.
The First Reduction Came in August
The January decrease follows a much larger reduction customers saw in August, when the temporary storm recovery charge ended. The charge helped cover the cost of restoring power and repairing the electric system after the destructive 2024 hurricane season.
Its expiration reduced residential and small business bills by $19.95 per month for every 1,000 kWh used, an 11% to 12% decrease.
How Tampa Electric Works to Control Costs
Tampa Electric manages fuel costs in several ways: making power plants more efficient so they can generate more electricity with less fuel, strategically managing fuel purchases and using the lowest-cost sources of power available.
Recent improvements at Polk Power Station are one example, helping the plant operate more efficiently and keep fuel costs lower than they otherwise would be.
Solar also helps keep fuel costs down. Since 2017, Tampa Electric’s solar generation has helped customers avoid more than $430 million in fuel costs.
Keeping Costs in Focus
Electric bills are affected by many things, from how much energy customers use to changing fuel prices. Broader economic conditions, including inflation and the cost of materials, equipment and services, can also affect the cost of providing electricity. While we can’t control every factor, we can focus on managing the costs within our control and passing savings along when costs decline.
At the same time, Tampa Electric continues investing in the electric system West Central Florida depends on, including strengthening the grid to better withstand severe weather, modernizing power plants to improve efficiency and performance, and expanding solar energy to help reduce fuel use and costs over time.
More Ways to Manage Your Bill
Even as electric costs come down, Tampa Electric recognizes that every dollar matters. Tampa Electric offers flexible payment arrangements, financial assistance, and free programs to help customers manage their energy use and costs. Programs include Prime Time Plus, which provides automatic monthly bill credits and a free smart thermostat for eligible participants, and Budget Billing, which helps make monthly payments more predictable. The company’s Customer Assistance team also connects customers with available community and government resources. Customers can learn more at TampaElectric.com/PayAssist or call 888-223-0800.
Want to learn more about Tampa Electric rates? Visit our Rates page to see current and historical rates, learn how rates are set and understand the investments that support reliable electric service.
Looking for more information about your bill? Visit our Understanding Your Bill page for a detailed explanation of each charge and what it means.