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TECO Customers' Bills Likely To Rise

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By RUSSELL RAY | The Tampa Tribune

Published: July 18, 2008

TAMPA - Electric bills for customers of Tampa Electric could jump 22.3 percent beginning next year thanks to a sharp increase in the utility's fuel costs, the company announced today.

If approved, the electric bill for a residential customer using 1,000 kilowatt hours a month would rise from $114.38 to $140 under the utility's proposal. The increase is needed to cover the escalating cost of coal and natural gas, which is used to generate electricity, the utility said.

Over the past year, coal prices have more than doubled and natural gas prices have risen 82 percent.

The utility doesn't make a profit on the cost of fuel. Those costs are passed on to customers with no markup.

"Fuel costs today make up more than half of a typical electric bill," Tampa Electric President Chuck Black said in a statement. "We have worked continually to minimize costs and improve efficiencies throughout our business on all the aspects that are within our control, but fuel costs continue to overshadow all of these efforts."

But higher fuel costs are just part of the story.

In August, Tampa Electric will be seeking a 9 percent increase in its base electric rates. Under that plan, residential bills would rise from $114.38 a month to $125, based on 1,000 kilowatt hours of consumption. The new rates would take effect in May.

If both proposals are approved, Tampa Electric customers will be paying 31.6 percent more for electricity by May. Based on 1,000 kilowatt hours of consumption, a residential customer would be paying $150.62 a month, up from $114.38 now.

Reporter Russell Ray can be reached at (813) 259-7870 or rray@tampatrib.com.

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