Two consumer advocacy groups, Florida Rising and LULAC Florida, have filed appeals with the Florida Supreme Court to contest the Public Service Commission’s approval of Tampa Electric Co.’s (TECO) rate increases.

TECO began implementing higher rates in January after regulators approved a series of base-rate hikes. On Monday, the two groups formally notified the court of their intent to challenge the decision.

At the same time, the state’s Office of Public Counsel, which represents consumer interests, is asking the Florida Public Service Commission to reconsider its final order issued in February. This order, following a December vote, approved a nearly $185 million base-rate increase for TECO in 2025, with additional increases of $86.6 million in 2026 and $9.1 million in 2027.

While the consumer groups’ appeal notice did not specify their legal arguments, the Office of Public Counsel’s motion for reconsideration argues that the commission overlooked critical facts and legal considerations in its final ruling. The motion, filed on Feb. 18, contends that reconsideration is necessary to ensure a fair review.

As of Monday afternoon, the commission had not yet responded to the request. However, TECO has pushed back against the reconsideration motion, asserting that it merely rehashes arguments the commission already evaluated and dismissed. “It does not identify any point of fact or law that the commission failed to consider,” TECO attorneys argued in a recent filing.

Base rates account for a significant portion of customers’ monthly electric bills, and rate cases often involve extensive analysis. TECO had initially requested a $287.9 million increase for 2025, followed by $92.4 million in 2026 and $65.5 million in 2027. The commission ultimately reduced these figures in its final decision.

One of the most contentious issues in the case was TECO’s return on equity (ROE), a key measure of profitability. TECO had sought an 11.5% midpoint, but the commission approved a 10.5% midpoint instead—higher than the 10.3% recommended by commission staff. The Office of Public Counsel argues that this increase unnecessarily raises costs for TECO customers and makes the new rates “unfair, unjust, and unreasonable.”

In response, TECO maintains that the commission was not obligated to follow the staff’s recommendation. Citing legal precedent, the company’s attorneys emphasized that the commission has full discretion to accept, modify, or reject staff recommendations.

The Florida Supreme Court will now determine whether to take up the case, while the Public Service Commission weighs the reconsideration request.

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