The Florida Public Service Commission (PSC) today adjusted Tampa Electric Company’s (TECO) 2019 fuel and capacity cost recovery factors, which will change customer bills beginning in April.
TECO requested PSC approval to increase customer rates to reflect changes in the prices of natural gas and expected power purchases. However, capacity costs for purchased power are decreasing, which will partially offset the monthly increase on customers’ bills. The average residential customer’s monthly bill will increase $4.05, from $99.53 to $103.58, for 1,000 kilowatt hours of usage.
“The PSC’s fuel cost recovery rule keeps costs in check and ensures that customers are not overpaying for their energy supply,” said PSC Chairman Art Graham.
TECO’s fuel factors for the 2019 calendar year were set by the PSC following the November 2018 annual cost recovery clause hearing. Fuel costs are passed through with no profit to the company.
Mid-course corrections are used when a utility’s costs increase or decrease significantly within a calendar year. Under Commission rules, a utility must notify the PSC when it expects an under- or over-recovery greater than 10 percent, although lesser mid-course corrections are allowed.
TECO, a subsidiary of Emera Inc., serves about 810,000 customers in West Central Florida.
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