Tampa Electric files 2011 fuel costs with Florida Public Service Commission
New filing will result in lower customer bills starting January 2011
TAMPA, September 1, 2010
Today, Tampa Electric filed with the Florida Public Service Commission (FPSC) to lower the fuel portion of all customers’ bills beginning January 2011. Pending FPSC approval, the decrease in the fuel charge is based on lower costs for fuel and purchased power during the first six months of 2010, projections for the remainder of 2010 and expected fuel prices in 2011. As a result, a 1,000 kilowatt-hour monthly residential bill will be $107.51, a $5.22 overall reduction, effective January 2011. Additionally, commercial and industrial customers will see reductions of approximately 5 percent on their total bills.
Tampa Electric President Gordon Gillette said, “We are pleased with this overall reduction in customer bills in this challenging economic environment. This represents the third consecutive reduction in fuel costs over the last two years and I commend our team on an excellent job of securing lower fuel and purchased power prices for our customers.”
Due to projected fuel costs, the company estimates that by year-end 2010 it will spend $67 million less on fuel than originally projected. While the company cannot control the price of fuel, Tampa Electric maximizes the use of existing generating assets, including the recently installed combustion turbines, to mitigate costs and pass the associated savings back to customers.
Tampa Electric’s fuel mix is primarily made up of coal and natural gas. The cost of fuel is a substantial portion of an electric bill, currently almost 40 percent. Under Florida regulation, fuel costs are collected from customers at cost without any mark-up and used to pay fuel suppliers, typically the large oil and coal companies.
In December 2009, the FPSC established Tampa Electric’s energy-efficiency and conservation goals to reduce customer energy use by 360 million kilowatt-hours (kWh) over the next 10 years – an increase of more than 225 percent over the company’s current goal. To achieve these aggressive goals, the company has requested FPSC approval of seven new energy conservation programs and several enhancements to incentives in its 29 existing programs for all customer sectors: residential, commercial and industrial.
Tampa Electric began promoting energy efficiency in the late 1970s – before any state legislation required electric utilities to engage in conservation activities. Since that time, it has emerged as a national leader in the area of energy-efficiency accomplishments by reaching a recent performance level in the 96th percentile nationally. The company’s overall energy-efficiency and conservation efforts have reduced the need for more than three 180-megawatt power plants. The aggregate energy savings from all programs have been enough to power more than 600,000 homes for one year.
One of Tampa Electric’s newest programs, residential Energy Planner SM, gives customers control to maximize decisions about energy use with near real-time prices by using a programmable thermostat provided by the company at no charge. Participating customers have saved an average of one month’s electricity over the course of a year. Under the company’s Low Income Weatherization program, qualified customers also can receive items designed to enhance their home’s energy efficiency.
For more information on the company’s energy efficiency programs, visit online: www.tampaelectric.com
About Tampa Electric
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 . Other subsidiaries include TECO Coal, which owns and operates coal production facilities in Kentucky and Virginia, and TECO Guatemala, which is engaged in electric power generation and distribution and energy-related businesses in Guatemala.
Note: This release contains forward-looking statements, which are subject to the inherent uncertainties in predicting future results and conditions. Actual results or outcomes may differ materially from those forecasted. The forecasted information is based on the company’s current expectations and assumptions, and the company does not undertake to update that information or any other information contained in this release, except as may be required by law. Fuel prices are dependent on market conditions, and customer rates are dependent on many factors, including actions by the FPSC. Additional information is contained under “Risk Factors” in TECO Energy, Inc.’s and Tampa Electric Company’s combined Annual Report on Form 10-K for the period ended Dec. 31, 2009.