Regulators examine Tampa Electric's rate hike request

(The Center Square) — Florida regulators are mulling over a rate hike proposal for one of the largest electricity providers in the Sunshine State this week with hearings that kicked off this week.

The Tampa Electric Company is seeking to raise its base rates for 844,000 residential, commercial, and industrial customers across West Central Florida, including Hillsborough, Polk, Pasco and Pinellas counties.

The Florida Public Service Commission is considering arguments from both TECO and customer advocates and the hearings are expected to last through the week.

The company petitioned for a $287.98 million increase beginning in January 2025, followed by an increase of $92.37 million in 2026, and another increase of $65.47 million in 2027. Residential customers can expect their monthly bills to increase by $20 in 2025, $10 per month in 2026, and $5 in 2027.

During the hearing Tuesday, TECO president and CEO Archie Collins said the rate hikes will ultimately help the company's performance, and help insulate customers from higher costs.

"We need the rate increases we have requested so we can continue to perform well today, and to ensure the company is taking the steps to insulate our customers from higher costs tomorrow," Collins said. "I acknowledge there is never a good time for a rate case, but they are necessary so the company can continue providing the kind of electric service that our customers expect."

However, lawyers from the Office of Public Counsel, argued the rate of return TECO is seeking for its shareholders is 11.5% and well above the national average. Last week, Duke Energy Florida had its rate hike petition approved , but the terms were much lower than what was originally requested.

During Monday's hearing, Patricia Christensen, an attorney with OPC said the rate increase in 2025 should not exceed $73 million, and further added amounts in 2026 and 2027 should also be lowered.

"We respectfully request that you reduce TECO's unreasonable demands, to only what is really needed to provide safe, reliable, and affordable electricity to their customers," Christensen said. "What customers don't need, is to grow rate base primarily to provide increased cash flow to assist TECO's parent company with their financial difficulties."

Christensen noted what customers do need is affordable rates, and reliable service, and added TECO has already recognized that increasing rates would cause serious concerns for some customers.