Tampa Electric (TECO) is proposing another rate increase for its customers, just days after receiving approval for a $9 monthly increase set to begin in January 2025. The new request seeks to recover $464 million in power restoration costs following Hurricanes Helene and Milton.teco
If approved by the Florida Public Service Commission (PSC), the average residential customer using 1,000 kilowatt-hours per month would see an additional $30.81 on their monthly bills. The proposed “storm restoration surcharge” would start in March and last for 12 months.
TECO stated that recent storms have “more than exhausted” its storm reserve fund, which was established to cover damage from named storms. The utility company, which serves approximately 844,000 customers across Hillsborough, Polk, Pasco, and Pinellas counties, announced it will contribute $1 million to its Share program to assist customers struggling with utility bills following the hurricanes.
The announcement has drawn criticism from local residents, with many questioning the timing of the increase and expressing frustration over continually rising utility costs. Community members on social media have challenged the duration of the recovery cost collection and the practice of passing storm expenses directly to customers despite the company’s profitability.
The PSC is expected to review the restoration costs in early 2025. Archie Collins, president and CEO of Tampa Electric, acknowledged the impact on customers, stating, “We understand the hardship these storms have caused in our community and recognize that this cost increase will be challenging for some customers.”