Lower bills in 2024
On May 7, 2024, the Florida Public Service Commission (PSC) approved Tampa Electric’s request for a fuel cost reduction beginning in June 2024 due to lower natural gas prices. This is the second reduction in 2024; in January, we reduced residential rates by about 11 percent because of a decline in fuel prices and other factors, resulting in our rates remaining one of the lowest in Florida, below the national average and lower than 2023. In total, customers will save nearly $25 a month with these reductions.
Starting in June, the typical residential customer’s monthly energy bill will decrease by about $7 to $136.44 for 1,000 kilowatt-hours (kWh) of use from the current $143.48. Commercial and industrial customers will see a decrease between 4 percent and 11 percent, depending on usage, when compared to today’s rates.
Learn more about our fuel charge adjustment.
Why fuel costs impact electricity bills
We have four ways of generating power – natural gas, purchased power, solar and coal. Natural gas is currently the largest component of our fuel mix at 86 percent. Our other fuel sources include solar at 12 percent and coal at 2 percent. Fuel costs are passed through to customers with no markup or profit to Tampa Electric and are regularly reviewed by the PSC. Like other utilities, Tampa Electric adjusts its fuel costs annually, typically in January, and can adjust them at other times if costs change significantly.
Storm recovery costs’ impact to 2024 bills
In 2022, Tampa Electric promptly restored power after our service territory was impacted by two hurricanes, Ian and Nicole. Like fuel costs, TECO paid storm expenses upfront, and passed them directly to customers without any markup.
Storm costs were initially spread over 12 months, ending in March 2024. To further reduce bills in 2024, we proposed to collect the remaining storm costs through the end of 2024.
Our commitment to you
Tampa Electric understands that some customers are experiencing financial hardship, and we want to help.
Residential Customers
Tampa Electric partners with community agencies that can connect you to resources. We also offer several programs like Share, free energy audits and billing and payment options that can help you manage and reduce your bill.
Business Customers
If you need help paying your electric bill, Tampa Electric has resources to help. We offer flexible payment arrangements, billing and payment options and more energy- and money-saving programs than any other electric utility in the state.
Learn More
Understanding your Bill: Learn about the charges on your bill and what they mean. Understanding your bill can help you think about ways to lower your energy costs. Understanding Your Bill
Understanding your Rates: Learn about the factors, like fuel costs, that affect your bill and how they are calculated. About Your Rates.
Tampa Electric’s commitment to long-term affordability: Today, we're Florida's top producer of solar energy per customer, and while fuel costs still impact us greatly, we’ve reduced fuel costs for customers by about $200 million since 2017. We continue to invest in solar projects, contributing to a cleaner energy future and reducing customers' fuel charges in the process. We also continue to drive efficiency at our power plants, which also contributes to less fuel use over time. Our recently completed Big Bend Modernization project will save customers more than $700 million over its life.
