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Tampa Electric, Peoples Gas Plan To Seek Rate Increase
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Published: June 12, 2008
TAMPA - Customers of Tampa Electric and Peoples Gas could see a rate increase starting next spring of 9 to 10 percent, the parent company of both utilities said this afternoon.
TECO Energy Corp. said it plans to ask state regulators in August for permission to raise the base rates of both Tampa-based utilities.
Tampa Electric hasn't raised its base service rate since 1992. Since then, the electric utility has added 200,000 customers and invested $3.4 billion in new generation, transmission and environmental upgrades.
If approved, the bill for an average Tampa Electric residential customer using 1,000 kilowatt hours a month would rise from $114.38 to more than $125 under the utility's proposal.
"None of us at Tampa Electric wants to see even a minimal increase to electricity prices for our customers, especially during this difficult economy," Tampa Electric President Chuck Black said in a statement today. "However, we must seek rates that address the investments we've made to serve our growing area, to enhance our service reliability and to improve our environmental performance."
Peoples Gas is Florida's largest natural gas utility, serving 320,000 customers. The last time the gas utility raised its base service rate was in 2002. The utility pointed to higher operating costs, increased demand and the installation or replacement of more than 1,500 miles of pipe.
"Our Peoples Gas team has worked hard to offset the increased costs of providing high-quality natural gas service to a growing customer base," said Peoples Gas President Bill Cantrell. "Unfortunately, we are unable to put off an adjustment any longer."
Reporter Russell Ray can be reached at (813) 259-7870 or rray@tampatrib.com.
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