On Thursday, state regulators approved a plan to increase base electric rates for Tampa Electric Co. customers, totaling $184.9 million next year.

The Florida Public Service Commission approved the rate hikes, which will take effect in January, with minimal discussion. Chairman Mike La Rosa noted that the decision was largely a result of underlying decisions made on December 3.

The plan is also expected to lead to additional increases of $86.6 million in 2026 and $9.1 million in 2027. Tampa Electric serves about 844,000 customers in Hillsborough, Polk, Pasco, and Pinellas counties.

RELATED: TECO Proposed Rate Increase Sparks Stiff Opposition

Typically, utilities refer to a benchmark of residential customers using 1,000-kilowatt hours of electricity a month. According to a commission staff report, under the new plan, such customers will see their monthly electric bills rise from $136.44 to $145.58 in January.

Tampa Electric announced that rates for small commercial customers would decrease by 3 percent, while medium and large commercial and industrial customers would see increases of 9 to 14 percent.

Base rates are a major component of monthly electric bills, and rate cases involve extensive information over several months. Other bill components include power-plant fuel and costs of complying with environmental regulations.

RELATED: TECO Rate Increase Approved, Residential Bills Set to Rise

Tampa Electric initially requested a $287.9 million increase in 2025, followed by $92.4 million in 2026 and $65.5 million in 2027. These amounts were reduced by the commission.

The rate increases were controversial. The state Office of Public Counsel, representing consumers, argued in an October brief that Tampa Electric’s request for rate relief was vastly overstated.

One disputed issue was Tampa Electric’s request for a targeted return on equity of 11.5 percent. The Office of Public Counsel argued for 9.5 percent. The commission approved 10.5 percent on December 3.

In August, the commission also approved a settlement to increase base rates for Duke Energy Florida customers by $203 million in 2025 and $59 million in 2026. The settlement includes using about $50 million in anticipated federal tax credits to offset a base-rate increase in 2027.

Florida Power & Light is expected to file a proposal for base-rate changes in 2026, with a current rate settlement expiring at the end of 2025. The commission is also considering a rate proposal by Florida Public Utilities Co., a smaller utility serving 33,090 customers in Jackson, Calhoun, Liberty, and Nassau counties.

Want to win a $25 Amazon gift card? 

To enter, simply follow us on Facebook, Instagram, Threads, or X between now and Tuesday, December 24th. (Psst… You can enter up to 4x by following us on all four! But sorry, U.S. residents only.)

(Image credit: TECO)