Case Background
On September 3,
2021, Tampa Electric Company (Tampa Electric or Company) filed an Application
for Authority to Issue and Sell Securities (Initial Application) with the
Commission. Tampa Electric’s Initial Application requested authority to assume up
to $800 million in outstanding short-term debt at any one time during calendar
year 2022. On November 5, 2021, the Commission issued Order No.
PSC-2021-0414-FOF-EI, approving the Company’s Initial Application. On December 15, 2021, Tampa Electric filed
a petition requesting that the Commission amend Order No. PSC-2021-0414-FOF-EI
by increasing the Company’s maximum amount of short-term debt outstanding for
2022 from $800 million to $1.0 billion. On March 15, 2022, the Commission issued
Order No. PSC-2022-0114-FOF-EI approving
the Company’s Petition to amend the initial Order and increase the Company’s maximum
amount of short-term debt outstanding for 2022 from $800 million to $1.0
billion. On August 24, 2022, Tampa Electric filed a
second petition requesting that the Commission amend Order No.
PSC-2022-0114-FOF-EI by increasing the Company’s maximum amount of short-term
debt outstanding for 2022 from $1.0 billion to $2.2 billion.
The Commission
has jurisdiction over this matter pursuant to Chapter 366, Florida Statutes
(F.S.), including Section 366.04, F.S
Discussion
of Issues
Issue 1:
Should the Commission approve Tampa Electric's
petition to amend the authority granted in Order No. PSC-2022-0114-FOF-EI by
increasing Tampa Electric's limit on the maximum amount of short-term debt
outstanding during calendar year 2022 from $1.0 billion to $2.2 billion?
Recommendation:
Yes. Tampa Electric’s petition to amend the
authority granted in Order No. PSC-2022-0114-FOF-EI to increase the Company’s maximum
amount of short-term debt outstanding at any one time during calendar year 2022
from $1.0 billion to $2.2 billion should be approved. (D. Buys)
Staff Analysis:
On August 24, 2022, Tampa Electric filed a petition
seeking to amend its authority to issue and sell securities during calendar
year 2022. The Company is requesting to increase the maximum amount of
short-term debt outstanding at any time during calendar year 2022 from $1.0
billion to $2.2 billion. Tampa Electric explained in its petition that due to
rising natural gas prices, the Company will incur a significant under-recovery
of its fuel costs for 2022. As a result, Tampa Electric is requesting that the
Commission amend the previously granted authority in Order No.
PSC-2022-0114-FOF-EI to issue $1.0 billion in short-term debt and raise that
limit to $2.2 billion. This will provide the Company with sufficient
flexibility to manage volatile fuel costs through the remainder of 2022. Tampa
Electric is not requesting modification or amendment of any of the other terms
set out in Order No. PSC-2022-0114-FOF-EI which approved the first Petition to
Amend.
In compliance with paragraph (2)(d) of Rule 28-106.201,
F.A.C., Tampa Electric stated that they are not aware of any disputed issues of
material fact at this time, and do not believe any disputed issues of material
fact will arise in this docket but acknowledge the possibility that other
parties could assert disputed issues of material fact during this proceeding.
Based on its review, staff believes
that the Company’s request to increase the maximum amount of short-term debt outstanding
at any one time during calendar year 2022 from $1.0 billion to $2.2 billion is
appropriate and recommends it be approved.
Issue 2:
Should this docket be closed?
Recommendation:
For monitoring purposes, this docket should remain
open until May 5, 2023, to allow the Company time to file the required
Consummation Report. (Sandy)
Staff Analysis:
For monitoring purposes, this docket should remain open
until May 5, 2023, to allow the Company time to file the required Consummation
Report.
