Tampa Electric submits proposal for new rate plan with Florida PSC

Tampa Electric filed a plan with the Florida Public Service Commission (PSC) for new rates that, if approved, would take effect in January 2022.

If the plan gets the go-ahead, residential customers would see an increase of about 19 percent in 2022 to $125.48 for the average use of 1,000 kilowatt-hours a month. The typical commercial and industrial customers would see an increase of about 13 percent to 17 percent.

Overall, Tampa Electric is seeking an initial increase of $295 million in 2022, with smaller, incremental additions in subsequent years. Specifically, in 2023, there is an additional adjustment of about $102 million to expands utility-scale solar power and completes the Big Bend modernization project. In 2024 there is a subsequent adjustment of $25.6 million to build new utility-scale solar power. This would be partially offset by related fuel savings from ongoing and planned projects. Over the long haul, less fuel will be consumed due to increased efficiency and shifting more power generation to solar.

Company officials point out that the rates will still be below the national average and among the lowest in Florida even with the proposed rate increases.

“To continue delivering the value our customers deserve, we must plan for the long term, making investments now that create a better energy future,” Nancy Tower, CEO of Tampa Electric, said. “By modernizing our power plants and making them more efficient, as well as expanding solar generation, we are reducing fuel costs, we are improving air quality in the region, we are reducing carbon emissions, and we are keeping customer bills more predictable over time.”

The rate increase request covers several investments the company has made to improve service and reliability. Tampa Electric has increased the generation of green energy through the modernization of Big Bend Power Station and additional solar projects. Also, the company has upgraded equipment to improve reliability and convenience and reduce outages. Since the company’s last rate case in 2013, Tampa Electric has improved reliability and efficiency. It has reduced coal consumption by more than 90 percent, added a significant amount of solar generation, cut carbon emissions in half, and improved overall customer satisfaction. Through these efforts, Tampa Electric has reduced customer bills by more than 3 percent over the past eight years.

The commission is expected to make a decision late this year.