Florida Public Service Commission approves lower Tampa Electric fuel and purchased power costs in 2011
The approved fuel filing and associated clauses will result in lower customer bills beginning in January 2011 and will make Tampa Electric’s rates among the lowest in Florida.
TAMPA, November 4, 2010
The Florida Public Service Commission (FPSC) recently approved Tampa Electric’s request to lower the fuel portion of all customers’ bills beginning January 2011. 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 $107.02, a $5.71 overall reduction, effective January 2011. Additionally, commercial and industrial customers will see reductions of approximately 5.75 and 7.50 percent, respectively, on their total bills.
Tampa Electric President Gordon Gillette said, “Our team members have done an excellent job in effectively managing our fuel purchases, generating units and operating costs, which has resulted in lower overall energy costs for our customers.”
While the company cannot control the price of fuel, Tampa Electric maximizes the use of existing generating assets, including the five new combustion peaking 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, 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 natural gas and coal companies.
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 Corporation, which owns and operates coal production facilities in Kentucky and Virginia, and TECO Guatemala, Inc., which is engaged in electric power generation 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.