Tampa Electric today notified the Florida Public Service Commission (PSC) that it expects to file a formal rate case application this spring. If approved, the new rates would take effect in January 2025.
Tampa Electric serves about 840,000 customers in West Central Florida and is planning for more growth as the population expands and customers use energy in new ways. This increase will enable Tampa Electric to continue to make significant investments that help meet the needs of customers and ensure reliable energy now and in the future.
The application will not affect bills this year. In January, the company reduced residential bills by about 11 percent because of a decline in fuel prices and other factors. If the proposed increase is approved as filed, residential rates would remain one of the lowest in Florida, below the national average, and lower than 2023 bills.
“We operate in one of the fastest growing areas of the United States, and it is critical that we remain two steps ahead of the region’s growth,” said Archie Collins, president and chief executive officer of Tampa Electric. “We are committed to keeping bills as low as possible while striving to be more efficient, reliable and forward-looking. We are investing in our power plants to increase efficiency and drive down fuel costs, and we are enhancing our grid to reliably power our customers’ increasing energy needs. This rate request will allow us to continue delivering the value that our customers expect.”
Tampa Electric is seeking a rate adjustment to:
- Meet increasing energy demands of the growing region. In addition to population growth, this includes preparing our system for the increased use of electric vehicles and other equipment for commercial businesses.
- Be better prepared for extreme weather and cyberattacks. By moving key buildings further inland, Tampa Electric can better respond to severe weather. The company is also upgrading critical energy management systems, which are used to deliver energy to customers, to meet increasing security expectations and requirements.
- Remain focused on long-term affordability. By improving existing power plants and investing in more solar energy, customers save on fuel costs. Investing in fuel-efficient generation means lower bills for everyone in the long run.
The company continuously seeks to improve its operations, most recently delivering a disciplined strategy that further strengthens reliability and customer satisfaction. Since the company's last rate request in 2021, Tampa Electric has:
- Increased reliability by more than 30 percent
- Reduced the frequency of power outages by 23 percent, and reduced the duration of those outages by 32 percent
- Improved overall fuel efficiency by 11 percent due to power plant improvements and solar expansion
“We know there’s never a good time to raise rates, and we feel for customers who are facing hardships,” Collins said. “It is important to remember that bills dropped by 11 percent this year, and this proposed adjustment would not take effect until 2025.”
The proposed rates, if approved by the PSC, would have numerous long-term benefits for customers:
- Shorter power outages – and reduced costs to restore them. The company is investing in technology and enhancements to communication systems that enable automatic and remote power restoration.
- Reduced fuel costs from:
- Improving existing power plants. By improving the efficiency of existing power plants, Tampa Electric can reduce fuel costs and overall system efficiency.
- Increasing renewable energy, such as solar. Since 2017, Tampa Electric's investment in solar energy has saved customers more than $200 million in fuel costs. The company will add another 490 megawatts (MW) of solar capacity by the end of 2026.
- Enhanced community safety with reliable lighting and other innovative technologies.
- Optimized low-cost energy. The company is adding more than 115 MW of energy-storage capacity – enough to power about 18,000 homes – in the next few years. The storage will extend the use of low-cost electricity and can delay the need to invest in new power plants.
- More personalized energy insights, which can help customers save energy and money. The company also is upgrading digital and self-service solutions, such as its outage map.
Tampa Electric is focused on being an energy-solutions partner that cares for the community. The company offers more energy-efficiency programs than any other electric utility in the state, helping to reduce energy consumption and saving customers money. Tampa Electric also will continue to design its rates so it remains less expensive to consume electricity under 1,000 kilowatt-hours (kwh) in a month, which especially benefits low-income customers.
Overview of Proposal
Tampa Electric is seeking an initial increase of $290 million to $320 million in 2025, with subsequent, smaller adjustments as the company adds more solar plants and invests in efficiency-enhancing technology.
This increase would adjust base rates, which are portions of the bill that cover the costs of generating, transmitting and distributing electricity to customers. Base rates are adjusted periodically to reflect current operating costs, which have risen due to higher expenses and higher interest rates.
Because other portions of the bill are expected to drop in 2025, the proposed base-rate adjustment would have only a modest net impact on customer bills.
Until Tampa Electric files its formal request, which is expected to occur this spring, all rate, bill and revenue figures are estimates. Customers can visit TampaElectric.com/Rates to learn more about the request.
Tampa Electric, one of Florida’s largest investor-owned electric utilities, serves about 840,000 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.
