Tampa Electric files settlement agreement with Florida PSC for its rate request

Tampa Electric filed a settlement agreement with the Florida Public Service Commission (PSC) for its latest rate request.

A ruling from the Florida PSC is expected later this year. In April, Tampa Electric filed its rate request, initially requesting approximately $423 million in additional base rate revenue over the three years plus a separate asset recovery of $29 million.

The settlement for $302 million in revenue increases over three years was reached among Tampa Electric and all parties involved, including the Office of Public Counsel, the Florida Industrial Power Users Group, Federal Executive Agencies, Florida Retail Federation, Walmart, and the West Central Florida Hospital Utility Alliance. Specifically, it calls for incremental increases in revenue of $191 million in 2022, $90 million in 2023, and $21 million in 2024

“This is a balanced agreement that supports Emera’s strategy to advance cleaner energy with important investments in grid modernization and reliability, all while never losing sight of affordability for customers,” Scott Balfour, president and CEO of Emera, the parent company of Tampa Electric, said. “Reaching this agreement reflects the hard work of all parties in securing rate certainty through to the end of 2024 for Tampa Electric customers while positioning the utility to make continued investments in resiliency, customer solutions, and a greener energy future.”

Tampa Electric has made major investments in solar as well as the Big Bend Modernization project to significantly reduce carbon emissions. This settlement agreement supports these efforts and the retirement of three coal units at Big Bend.

“This settlement further cements the transformation that is occurring at Tampa Electric, and it represents a fair and amicable resolution to our request for increased rates,” Archie Collins, president and CEO of Tampa Electric, said. “At Tampa Electric, we are focused on creating value for customers – adding more clean solar energy, reducing carbon emissions and fuel costs, modernizing our infrastructure for a smarter tomorrow, improving reliability, increasing resiliency in the face of climate change, and improving customer service. This settlement delivers on that value commitment.”

If approved, the settlement will result in Tampa Electric’s rates remaining below the national average. This is the latest of three rate case settlements at Emera’s US utilities, along with Peoples Gas and New Mexico Gas.