Tampa Electric to Lower Rates a Second Time this Year

For the second time this year, Tampa Electric will reduce power bills.

In January, the company reduced residential bills by nearly $18 because of a decline in fuel prices and other factors. Today, the Public Service Commission unanimously approved a further reduction – this time about $7 – based on continued low natural gas prices.

In total, these reductions will save customers nearly $25 a month for the rest of the year, or a total of $175.

“Tampa Electric is pleased to be in a position to reduce electricity bills again this year,” said Archie Collins, president and chief executive officer of Tampa Electric. “We are happy to provide customers with some welcome relief as the summer’s heat begins.”

Utilities modify their fuel costs annually, typically in January, and can adjust them at other times if costs change significantly. Natural gas prices have declined in the past year – and stayed low. The company will return the $137 million savings to customers.

Beginning in June, residential customers who use 1,000 kilowatt-hours of electricity a month will see a reduction to $136.44 a month, from the $143.48 they pay today. Tampa Electric rates will remain among the lowest in Florida and will be significantly below the national average. Commercial customers will see a reduction of between 4 percent to 11 percent, depending on usage.

Natural gas and other fuels are used in power plants to make electricity, and their costs are passed to customers with no markup or profit. The fuel charge makes up about one-quarter of a residential customer’s bill. Tampa Electric maximizes the use of existing low-cost, well-performing plants and power purchased from other companies to lower costs and pass the savings to customers. The company’s use of solar power has saved customers more than $200 million since 2017.

Tampa Electric, one of Florida’s largest investor-owned electric utilities, serves about 840,000 customers in West Central Florida. Tampa Electric is a subsidiary of Emera Inc., a geographically diverse energy and services company headquartered in Halifax, Nova Scotia, Canada.