Tampa Electric customers to see rate reduction

The Florida Public Service Commission (FSC) reduced the rates for Tampa Electric Company’s customers by an average of $3.20 per month, effective January 2020.

The reduced rate primarily reflects $4.96 million in savings from Florida’s 2019 temporary state corporate income tax rate reduction. TECO serves about 765,000 customers in West Central Florida.

Earlier this year, the PSC approved TECO’s use of $91 million from the federal 2017 Tax Cuts and Jobs Act savings for storm-related costs. TECO customers will see a one-time tax credit refund of $9.06 on their January 2020 bills.

“Using state and federal tax savings is an effective way to benefit customers by lowering rates and avoiding potential surcharges to cover storm restoration costs,” PSC Chairman Art Graham said. “The Commission continues to ensure that Florida’s customers benefit now from any federal or state tax law changes.”

In September 2019, the Florida Department of Revenue announced that the Florida corporate income tax rate was reduced from 5.5 percent to 4.458 percent through Dec. 31, 2021.

The agreement between TECO, the Office of Public Counsel, the Florida Industrial Power Users Group, the Florida Retail Federation, the Federal Executive Agencies, and the West Central Florida Hospital Utility Alliance established procedures to address changes in federal or state taxation.