The Florida Public Service Commission (PSC) today approved a settlement agreement that will reduce Tampa Electric Company’s (TECO) original revenue request by more than $113 million. The settlement was offered by TECO, Florida’s Office of Public Counsel (OPC), who represents TECO customers, the Florida Industrial Power Users Group, Federal Executive Agencies, Florida Retail Federation, Walmart, and the West Central Florida Hospital Utility Alliance.
“TECO customers provided testimony at three virtual service hearings, and we also received customer correspondence about the company’s proposed increase. After reviewing all the evidence, approving this settlement is in the public interest,” said PSC Chairman Gary Clark. “The settlement is fully supported by OPC and other advocacy groups, it ensures customers stable rates through 2024, and it helps TECO provide reliable service and continue its investment in renewable energy.”
Tampa Electric filed its rate petition with the PSC in April 2021, requesting $416 million in additional annual revenue in base rates over three years. The settlement reduced the annual revenue increase to $302 million over three years. The current 1,000 kilowatt-hour monthly bill for residential TECO customers is $118.07 and would be $134.57 effective January 1, 2022 under the settlement, a $16.50 increase in base rates. However, with proposed reductions in fuel costs, the monthly bill effective January 1, 2022, is estimated to be $120.86.
The settlement agreement:
• Allows for the $302 million annual revenue increase to be implemented over a three-year period: $191 million in 2022, $90 million in 2023, and $21 million in 2024.
• Includes a return on equity (ROE) range of 9 to 11 percent, with 9.95 percent as the mid-point being used for ratemaking purposes.
• Includes a modernization plan at TECO’s Big Bend Power Station.
Today’s hearing concludes all matters in the case.
TECO currently provides electric service to more than 800,000 retail customers in Hillsborough and portions of Polk, Pasco, and Pinellas counties.
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