Tampa Electric Customers Protest Proposed Rate Hikes at Public Hearing

BRANDON, Fla. - Tampa Electric (TECO) customers gathered outside Hillsborough Community College in Brandon on Thursday to protest the Florida Public Service Commission's public hearing regarding TECO's request to raise rates next year.

Both TECO and Duke Energy applied for rate hikes in April, leading to pushback from customers in recent weeks. No decisions will be made during the current public hearings, with a final decision expected later this year.

Customer Concerns

"Please do not raise this bill as I'm already struggling," a customer said during the commission's hearing. "We're trying to figure out if we're going to pay the rent. Are we going to pay TECO? Are we going to pay the water bill, or are we going to pay the cable bill? Are we going to pay our car insurance, our medical, expensive food for our children, clothes, and other necessary items?"

Impact of Rate Adjustments

Although other portions of the bill are expected to drop, the base-rate adjustment is anticipated to have only a modest net impact on customer bills. If approved, for 1,000 kilowatt-hours of use, a residential customer’s total bill in January 2025 would be 3% higher than what they’ve paid for the first half of this year – an increase of about $5 – bringing the total to $148.15 a month. Residential rates would remain among the lowest in Florida, below the national average and lower than in 2023.

"We know that for some customers, even a small increase in their power bill can increase the burden for them, and we are here to help those folks," TECO spokesperson Cherie Jacobs told FOX 13. "We work with our customers, we make payment arrangements, and we have more free programs to reduce energy bills than any other utility in Florida."

TECO's Proposed Benefits

TECO argues that the proposed rate hikes would have numerous long-term benefits for customers, including:

• Shorter Power Outages and Reduced Restoration Costs: Investments in technology and enhancements to communication systems will enable automatic and remote power restoration, reducing the duration and cost of outages.

• Reduced Fuel Costs: TECO aims to reduce fuel costs by improving the efficiency of existing power plants and increasing renewable energy sources like solar. Since 2017, Tampa Electric's investment in solar energy has saved customers more than $200 million in fuel costs. The company plans to add another 490 megawatts (MW) of solar capacity by the end of 2026.

• Enhanced Community Safety: Implementation of reliable lighting and other innovative technologies will improve community safety.

• Optimized Low-Cost Energy: TECO is adding more than 115 MW of energy-storage capacity, enough to power about 18,000 homes, in the next few years. This storage will extend the use of low-cost electricity and delay the need for new power plants.

Duke Energy's Rate Hike Proposal

Duke Energy is also seeking to raise base rates by $16.48 to invest in its infrastructure. "It will help our customers reduce outages, and we're also investing in clean energy," said Duke Energy spokesperson Ana Gibbs. "We're asking to build 14 new solar sites."

Overall Bill Impact

Despite the base rate increase, overall bills are expected to decrease due to the removal of certain costs. "There are other types of items on the bill that will be falling off at the end of 2024," Gibbs explained. "Some of those things are our storm costs, some of our fuel costs, and some of our purchased power agreements are going to be taken off the bill at the end of 2024."

Public Reaction

The proposed rate hikes have sparked significant public outcry, with customers voicing concerns over the financial strain of higher utility bills. Many customers are worried about their ability to afford basic necessities if utility costs continue to rise.

Utility Companies' Justification

Both TECO and Duke Energy argue that the proposed rate hikes are necessary to fund critical infrastructure improvements and investments in renewable energy. These improvements are expected to enhance service reliability, reduce long-term costs, and promote environmental sustainability.

Upcoming Meetings

One more meeting is scheduled to address Duke's proposed increases. This in-person/virtual meeting will be held on Tuesday, June 18, at the Betty Easley Conference Center in Tallahassee. The Florida Public Service Commission will continue to gather input from the public before making a final decision later this year.

Conclusion

As TECO and Duke Energy push for rate hikes to fund infrastructure and renewable energy projects, customers are expressing their concerns about the financial impact. The Florida Public Service Commission's decision will be crucial in balancing the need for utility improvements with the economic realities faced by consumers. The outcome of these hearings will shape the future of utility rates and energy investments in Florida.