Florida PSC approves Tampa Electric’s plan to lower rates
The Florida Public Service Commission approved a request by Tampa Electric to lower rates by about 11 percent starting Jan. 1.
So, for the average residential customer who uses 1,000 kilowatt hours (kWh) of electricity, the monthly bill will drop by $17.65, to $143.48. Commercial customers should expect to see a 10% drop, while industrial customers will see rates decrease by 18 percent, on average. The exact reductions may vary, depending on usage. However, Tampa Electric rates will be well below the national average and among the lowest in Florida.
“Fuel costs have declined since the high prices of 2022, and, as a result, we are in a position to reduce electricity bills in 2024,” Archie Collins, president and CEO of Tampa Electric, said. “We are pleased that Tampa Electric customers will get some welcome relief, after a record-breaking summer.”
The request included projected costs for 2024 for fuel, storm costs, and new solar plants. The fuel charge makes up about one-quarter of a residential customer’s bill. The requested fuel costs are based on projected costs for 2024 and actual costs from prior years. Tampa Electric uses several strategies to manage fuel costs, including optimizing its power plants for fuel efficiency, purchasing power from other companies, if it results in a lower cost for customers, and adding more solar power.
Tampa Electric, a subsidiary of Emera Inc., serves more than 830,000 customers in West Central Florida.
