Tampa Electric Company (TECO) customers won’t have to pay the utility’s requested $10 per month storm restoration surcharge. The Florida Public Service Commission (PSC) today approved TECO’s negotiated plan to apply its federal tax savings to cover its storm damage costs.
“We’re happy that customers will benefit sooner rather than later from the federal tax law changes,” said PSC Chairman Art Graham. “Addressing possible tax savings was part of our approval of TECO’s 2017 rate agreement, and today’s plan affirms that customers will immediately benefit.”
In January, TECO filed a request with the PSC to collect $102.5 million from its customers to pay for 2015-2017 named storm recovery efforts and replenish its storm reserve. A residential customer using 1,000 kilowatt-hours a month would have seen a $10.07 increase beginning in April and continuing for nine months.
After federal tax cuts passed in late 2017, TECO reached an agreement with customer representatives that prevents adding the storm charge to bills by applying the new tax savings earlier than required. The PSC today chose that alternative, avoiding a bill increase.
The Office of Public Counsel, which represents customers, the Florida Industrial Power Users Group, Florida Retail Federation, Federal Executive Agencies, and WCF Hospital Utility Alliance support the plan.
Tampa Electric serves about 750,000 customers in West Central Florida.