Tampa Electric Company’s (TECO) monthly residential customer bills will be reduced by $6.50 per 1,000 kWh due to the Florida Public Service Commission’s (PSC) approval today on savings from the Tax Cut and Jobs Act of 2017.
Because of recent changes to the federal tax law, the PSC ensured that customers will directly benefit from the savings through lower bills. What TECO would have paid in corporate income taxes will instead be used to reduce rates, offsetting an expected increase resulting from previously incurred storm restoration costs. TECO’s annual revenue requirement will be reduced by $102.7 million, or nine percent.
“We want customers to benefit from the federal tax reductions,” said PSC Commissioner Julie Brown. “Our action today is truly monumental in nature, and with our approval, we’re glad TECO customers will see lower electric bills.”
Today’s PSC action on TECO’s base rate adjustment was stipulated as part of the company’s 2017 Settlement Agreement, and supported by the Office of Public Counsel, Florida Retail Federation, and the Florida Industrial Power Users Group.
Tampa Electric serves about 750,000 customers in West Central Florida.
For additional information, visit floridapsc.com.