Tampa residents’ electric bills to rise slightly due to city’s new franchise fee
TAMPA, October 27, 2011
Beginning Tuesday, Tampa Electric bills for customers within the city of Tampa will rise by about $2 a month due to an increase in the franchise fee by city government.
A franchise fee is collected from customers and paid directly to the city under a franchise agreement. A franchise agreement allows Tampa Electric to place equipment on city property, such as road rights of way. Tampa Electric makes no profit from franchise fees. In a recent decision, the city raised the fee to 6 percent, from 4.6 percent.
The fee will add $1.89 to the bill of a residential customer who uses 1,000 kilowatt-hours of energy. Customers who use more electricity will see a proportionately higher fee.
The higher fee will take effect Tuesday.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 . Tampa Electric serves more than 672,000 customers in West Central Florida. 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 energy-related businesses in Guatemala.