Utility donating additional $1 million to Share program to help those who need it most
Due to a dramatic increase in natural gas prices that is expected to persist, Tampa Electric has requested an adjustment to customer bills starting in February. Even with the change, the typical residential bill would remain among the lowest in Florida and below the national average.
Around the world, as economies are beginning to recover from the pandemic, natural gas prices have risen dramatically. Prices in the United States are more than double what they were at the beginning of the year. A report by the U.S. Energy Information Administration predicts continuing volatility in natural gas prices in coming months.
The company today filed updated projected costs for fuel and capacity charges with the Florida Public Service Commission (PSC). If the PSC approves the requests as filed, the typical residential customer’s monthly energy bill would increase by about 13 percent, or $15.43, to $136.34 for 1,000 kilowatt-hours (kWh) of use, from the $120.91 customers will pay in January.
“We do everything we can to ease the impact of price increases for our customers,” said Archie Collins, president and chief executive officer of Tampa Electric. “We are always working to manage resources wisely to keep bills low, and we continue to offer several forms of customer assistance to help those who need it most. We also offer more energy-saving programs than any other utility in Florida, so customers can better manage their electricity use and lower their bills. Long term, we are working to limit fuel costs and reduce carbon emissions by installing more solar power and upgrading power plants to help them operate more efficiently.”
Tampa Electric has committed to donate an additional $1 million to the Share program, which is administered by the Salvation Army and Catholic Charities. Share helps people pay their utility bills. Tampa Electric and TECO Peoples Gas have helped nearly 5,700 customers pay electric and natural gas bills through the Share program in 2020 and 2021, thanks in part to previous donations totaling $1.7 million during those years. Our latest addition to these efforts will result in $2.7 million to help customers. So far during the pandemic, TECO connected more than 64,000 customers to utility-bill assistance exceeding $20 million.
Fuel costs are passed directly to customers without any markup by the utility. In Florida, utilities adjust their fuel and capacity costs annually, typically in January. However, when costs are expected to change by more than 10 percent, they can request an additional adjustment.
The PSC is expected to vote on the proposal on Jan. 4, and the adjustment to bills would begin in February. If approved as filed, Tampa Electric residential customers’ bills would continue to be among the lowest in Florida and would remain below the national average.
Tampa Electric’s fuel mix for 2022 is expected to be about 82 percent natural gas, about 10 percent solar and about 8 percent coal. With the proposed increase, the cost of fuel will be about one-third of a residential customer’s bill. Tampa Electric deploys a variety of strategies to manage fuel costs, including optimizing the use of its generating fleet to consume fuel as efficiently as possible and purchasing power from other companies if it results in a lower cost for customers.
Tampa Electric’s Budget Billing program can take the highs and lows out of utility bills for residential and small commercial customers. The free program provides a more consistent bill each month that can help customers better manage monthly expenses. Learn more about this program and other billing options at tampaelectric.com/residential/billing-options.
Tampa Electric understands some customers are experiencing financial hardship and wants to help. The company partners with many community agencies to offer programs that support customers in need and offers flexible payment arrangements. More information on resources and programs can be found online at tampaelectric.com/updates.
Tampa Electric also provides more energy-saving programs than any other utility in the state to help customers manage energy costs. Customers can learn more and sign up at tampaelectric.com/save (residential) and tampaelectric.com/bizsave (business). A variety of appliance calculators also are available online to help customers pinpoint opportunities for savings.
Tampa Electric, one of Florida’s largest investor-owned electric utilities, serves about 800,000 customers in West Central Florida. Tampa Electric is a subsidiary of Emera Inc., a geographically diverse energy and services company headquartered in Halifax, Nova Scotia, Canada.
