Tampa Electric to raise rates in 2021
Tampa Electric filed papers with the Florida Public Service Commission (PSC) looking to raise the average customers’ rates next year.
Tampa Electric officials say the increases are due to an expected rise in natural gas costs and an increase in demand. This comes after reducing prices to historic lows this year as demand decreased during the pandemic.
If approved, the average residential customer’s 2021 monthly energy bill would be $105.83 for 1,000 kilowatt-hours (kWh) of use, an increase of about 8 percent, or $8.14 per month. However, this is still less than customers paid in 2018 and is 19 percent below the national average. Commercial and industrial customers would see bills increase between 7 percent and 12 percent. The PSC is expected to vote on the adjustment after a hearing scheduled to begin Nov. 3.
“In 2020, we passed along savings to customers by lowering bills up to 11 percent for residential customers and 14 percent to 20 percent for commercial customers,” Nancy Tower, president and CEO of Tampa Electric, said. “Those savings will continue, as expected, through December. Our team is committed to supporting customers in need. We have been helping residential and business customers affected by the pandemic by connecting them to available financial resources, as well as providing flexible payment plans,” Tower said. “It’s important to note that this proposed adjustment will not take effect until January and is in line, and often lower when compared to prices throughout the past 10 years.”
While rising natural gas prices account for most of the increases, a portion of the impact is due to the recently approved plan to install some power lines underground to increase grid reliability during severe weather.
Tampa Electric – a subsidiary of Emera — serves about 780,000 customers in West Central Florida.
