Regulators approve Tampa Electric bills dropping in January
Residential bills to remain among Florida’s lowest and well below national average
TAMPA, November 3, 2015
Thanks to lower natural gas prices, Tampa Electric customers will pay $2.25 less a month for electricity in January than they have paid this year – even after an increase this month. The Florida Public Service Commission (PSC) today unanimously approved Tampa Electric’s projected costs for fuel and other clauses.
A residential customer’s monthly bill will drop by $2.25, to $106.22 for 1,000 kilowatt-hours (kWh), about a 2.1 percent decrease from the $108.47 a month they paid during most of this year. Commercial and industrial customers will see bills decrease by 3.0 percent and 4.8 percent, respectively.
“Tampa Electric continues to have some of the lowest rates in Florida, and our rates remain well below the national average,” said Gordon Gillette, president of Tampa Electric. “We are proud to provide outstanding value to our customers every day. The average residential customer can power their home for less than $3.50 a day – or less than the cost of a gallon of milk.”
Tampa Electric residential customers’ bills will remain 18 percent below the national average, which is $129.30 per month, according to August 2015 data from the Energy Information Administration.
This month, the average Tampa Electric residential customer bill rose by 45 cents, as part of the 2013 rate settlement. The January reduction for fuel and other clauses – of $2.70 – will more than offset that increase, ending with a net reduction of $2.25 a month for the average residential customer from what they paid during most of this year.
The company estimates that by the end of 2015 it will spend $2 million less on fuel than originally projected. The fuel portion of the bill is based on costs for natural gas and coal during the first six months of 2015, projections for the remainder of 2015 and expected fuel prices in 2016.
Tampa Electric’s fuel mix is predominantly comprised of coal and natural gas. The cost of fuel is a substantial portion of an electric bill, currently about one-third of a residential customer’s bill. Fuel costs are passed through from fuel suppliers to our customers with no markup or profit to Tampa Electric. Tampa Electric maximizes the use of existing low-cost, well-performing plants and power purchased from other companies to mitigate costs and pass the savings to customers.
Tampa Electric, one of Florida’s largest investor-owned electric utilities, is part of the TECO Energy family of companies. Tampa Electric serves more than 715,000 customers in West Central Florida. TECO Energy Inc. (NYSE: TE) is an energy-related holding company with regulated electric and gas utilities in Florida and New Mexico: Tampa Electric, Peoples Gas System and New Mexico Gas Co.