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State of Florida
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Public Service Commission Capital Circle Office Center ● 2540 Shumard
Oak Boulevard -M-E-M-O-R-A-N-D-U-M- |
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DATE: |
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TO: |
Office of Commission Clerk (Teitzman) |
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FROM: |
Division of Engineering (P. Buys, King, Ramos) Division of Economics (Hampson) Office of the General Counsel (Sparks, Harper, Marquez) |
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RE: |
Docket No. 20240026-EI – Petition for rate increase by Tampa Electric Company. |
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AGENDA: |
05/07/24 – Regular Agenda – Tariff Suspension - Participation is at the discretion of the Commission |
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COMMISSIONERS ASSIGNED: |
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PREHEARING OFFICER: |
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06/03/2024 (60-Day Suspension Date) |
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SPECIAL INSTRUCTIONS: |
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On
April 2, 2024, Tampa Electric Company (TECO or Company) filed its petition for
a permanent rate increase. TECO provides electric service to approximately 844,000
customers in Hillsborough and portions of Polk, Pasco, and Pinellas counties.
TECO
has requested a $297 million increase in its general base rates and charges,
effective January 1, 2025. In addition, the Company requested incremental rate
increases in the amounts of $100 million, effective January 1, 2026, and $72
million, effective January 1, 2027. TECO requested that it also be allowed a
return on common equity (ROE) of 11.5 percent.
The
Company based its requests on a projected test period of January 1, 2025, through
December 31, 2025. TECO did not request interim rate relief.
TECO’s
last base rate hearing was in 2021. In that case, the Commission approved a
settlement, which allowed a total base rate increase of approximately $233
million, including $123 million in 2022, $90 million generation base rate
adjustment (GBRA) in 2023, and $21 million GBRA in 2024.[1]
On
February 26, 2024, the Commission acknowledged the Office of Public Counsel’s
Notice of Intervention in this proceeding.[2] On April 23, 2024, the Commission
also acknowledged the Intervention of the following parties: Florida Industrial
Power Users Group, Federal Executive Agencies,
Florida Retail Federation, Florida Rising, League of United Latin
American Citizens of Florida, and
Sierra Club.[3] Additionally, on April 24,
2024, Americans for Affordable Clean Energy, Inc., Circle K Stores, Inc.,
RaceTrac, Inc., and Wawa, Inc. petitioned the Commission to intervene in this
proceeding.[4] This recommendation
addresses the suspension of the requested permanent rate increase and all
associated tariff revisions. The Commission has jurisdiction over this matter
pursuant to Section 366.06, Florida Statutes (F.S.).