The Florida Public Service Commission’s staff advised Thursday that state regulators should stick to their decision to approve Tampa Electric Co.’s base-rate increases despite objections from consumer groups.

The commission is set to revisit the issue on May 6, following a request for reconsideration filed by the state Office of Public Counsel, Florida Rising, Inc., and LULAC Florida, Inc. These groups argue that the commission authorized an excessively high return on equity for TECO, unfairly burdening customers.

In December, the commission approved a nearly $185 million base-rate increase for 2025, with further hikes of $86.6 million in 2026 and $9.1 million in 2027. The first rate increase began in January.

Consumer advocates claim that the approved 10.5% return-on-equity midpoint is too generous, especially since commission staff initially recommended a 10.3% midpoint last November. They argue that TECO’s size and storm risks are already mitigated through other protections and that the final decision lacked adequate justification.

“The commission should have relied upon the well-supported calculation of 10.3% ROE,” the Office of Public Counsel wrote in its Feb. 18 filing. “No reasonable mind would accept that 10.5% is necessary while 10.3% would not suffice.”

Staff, however, defended the 10.5% midpoint, saying it was backed by “substantial and competent evidence” and reflected TECO’s unique risks, including its concentrated service area in hurricane-prone regions.

The Public Service Commission’s decision is also being challenged at the Florida Supreme Court, though the court paused proceedings pending the outcome of the reconsideration request.

While staff recommended rejecting most objections, they did suggest correcting a minor calculation error.

Tampa Electric serves about 844,000 customers across Hillsborough, Polk, Pasco, and Pinellas counties.

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