Tampa Electric Seeks to Lower Bills Again this year, Takes Expected...

For the second time this year, Tampa Electric wants to reduce power bills.

In January, the company reduced residential bills by about 11 percent because of a decline in fuel prices and other factors. Today, the company asked the Public Service Commission for a further reduction - this time 5 percent - based on continued low natural gas prices. In total, these reductions could save customers nearly $25 a month for the rest of the year.

Also today, the company filed its request to adjust bills in 2025, as previously announced.

If approved as filed, the proposed fuel and rate changes would result in Tampa Electric's 2025 residential bills being lower than last year and among the lowest in Florida.

Mid-Year Fuel Adjustment Would Take Effect in Summer

Utilities modify their fuel costs annually, typically in January, and can adjust them at other times if costs change significantly. Fuel costs are passed through from fuel suppliers to our customers with no markup or profit to Tampa Electric. Natural gas prices have declined in the past year - and stayed low. The company wants to return the $137 million savings to customers.

Residential customers who use 1,000 kilowatt-hours of electricity a month would see a reduction of about $7 a month.

The PSC is expected to vote on the request on May 7, and the reduction would begin in June.

Rate Adjustment Officially Requested

In February, Tampa Electric announced its intention to file a rate case request with the Florida Public Service Commission (PSC); today it was filed. If approved, the new rates would take effect in January 2025 and would remain among the lowest in Florida and below the national average.

Tampa Electric serves about 840,000 customers in West Central Florida and is planning for more growth as the population expands and customers use energy in new ways. This increase will enable Tampa Electric to continue to make significant investments that help meet the needs of customers and ensure reliable energy now and in the future.

"We are fortunate to serve such a fast-growing region of the country," said Archie Collins, president and chief executive officer of Tampa Electric. "As the demands on the electrical grid are changing rapidly, our job is to prepare for the future in a manner that is seamless for customers. We are committed to making meaningful investments that help us to keep up with growth, increase power plant efficiency and reduce outages. This rate request will allow us to continue delivering the value that our customers expect, while keeping rates as low as possible."

If the proposed increase is approved as filed, residential rates would remain one of the lowest in Florida and lower than 2023 bills.

Filing the request for a rate adjustment is an early step in a lengthy regulatory process. Customers will have the opportunity to share their opinions in June at a hearing in Hillsborough County and two virtual hearings, for those unable to attend in person. The PSC is expected to make a decision late this year; new rates would take effect in January.

The proposed rates, if approved by the PSC, would have numerous long-term benefits for customers:

• Shorter power outages - and reduced costs to restore them. The company is investing in technology and enhancements to communication systems that enable automatic and remote power restoration.
• Reduced fuel costs from:
  • Improving existing power plants. By improving the efficiency of existing power plants, Tampa Electric can reduce fuel costs and improve overall system efficiency.
  • Increasing renewable energy, such as solar. Since 2017, Tampa Electric's investment in solar energy has saved customers more than $200 million in fuel costs. The company will add another 490 megawatts (MW) of solar capacity by the end of 2026.
• Enhanced community safety with reliable lighting and other innovative
• Optimized low-cost energy. The company is adding more than 115 MW of energy-storage capacity - enough to power about 18,000 homes - in the next few years. The storage will extend the use of low-cost electricity and can delay the need to invest in new power plants.
• More personalized energy insights, which can help customers save energy and money. TECO also is upgrading digital and self-service solutions, such as its outage map.

Tampa Electric is seeking an initial increase of $296.6 million in 2025. Long-term, less fuel will be consumed due to increased efficiency and shifting more power generation to solar.

Because other portions of the bill are expected to drop, the base-rate adjustment would have only a modest net impact on customer bills. If approved as filed for 1,000 kilowatt-hours of use, a residential customer's total bill in January 2025 would be 3 percent higher than today, or an increase of about $5, to $148.15 a month. Residential rates would remain one of the lowest in Florida, below the national average and lower than in 2023.

Customers can visit www.TampaElectric.com/Rates to learn more about the request.

Tampa Electric, one of Florida's largest investor-owned electric utilities, serves about 840,000 customers in West Central Florida. Tampa Electric is a subsidiary of Emera Inc., a geographically diverse energy and services company headquartered in Halifax, Nova Scotia, Canada.

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