TAMPA, Fla. — In February, Tampa Electric Company (TECO) announced its intent to adjust utility rates. It takes roughly a year for rate increases to be approved and go into effect.
"Now, if it's approved by the Public Service Commission, as we filed it, customer residential customers would see their bills rise by about 3% or about $5 from what they paid today," Cherie Jacobs, a spokesperson for TECO explained.
Two proposals were submitted to the Public Service Commission. Each proposal had a different approach to dividing costs between residential and commercial/industrial/business customers.
"One of those ways would raise base rates for residential and business customers at about the same percentage," Jacobs said. "The other way to evaluate it would raise bass rates for commercial and industrial customers at a higher rate than residential customers. We are presenting both of those types of evaluations as required."
Jacobs said both proposals would have the same impact on residential customers-- a roughly $5 per month increase.
This decision is ultimately left to the Public Service Commission. Tampa Electric says their decision is expected to be announced by the end of this year. If rate changes are approved, it will be reflected on your first bill in January of next year.
TECO says there is some good news for customers. Since the price of natural gas has come down, for the second time this year, residential bills will be lowered. This time, customers can expect to see their bill $7 cheaper a month, starting in June.
"Which, in total with the January reduction and the June reduction, folks are saving about $25 a month because of the price of natural gas," Jacobs said.
TECO said the increase in rates helps the company keep pace with growth in the area, reduce outages, and restore power quicker after storms.
In June, there will be three public input meetings over the rate adjustments. One will be in-person, and the other two will be virtual.
Malique Rankin is a general assignment reporter with 10 Tampa Bay. You can email her story ideas at mrankin@10tampabay.com and follow her Facebook, Twitter, and Instagram pages.