Tampa Electric residential customers who use 1,000 kilowatt-hours per month will pay an additional $5.50 per month starting January 1, 2026, following a decision finalized Tuesday.

The increase is part of yearly adjustments added to a base rate hike approved by the Florida Public Service Commission in 2024. A Tampa Electric spokesperson said the funds will support reliability and efficiency projects, including three new energy storage facilities, power plant upgrades for storm resilience, and two solar plants aimed at reducing future fuel costs.

The spokesperson noted that Tampa Electric’s solar investments over eight years have saved customers approximately $365 million in fuel costs and that the utility’s residential rates remain below the national average despite increased costs from stronger storms, record heat, and grid upgrades.

However, Tampa Electric residential customers paid the highest bills in Florida and the second highest nationally this past June.

Brooke Ward, senior Florida organizer with Food and Water Watch, said this marks the fourth increase in 12 months. The utility implemented a base rate hike in January adding $9 to $13 monthly, began charging $20 to $25 monthly for storm recovery costs in March, and increased fuel charges by 10% in June.

When the January increase takes effect, residential customers will pay about $939 more annually than five years ago—an 82% increase. While temporary storm costs end next September, Ward expects Tampa Electric will likely file for another rate increase in 2027 and 2028.

The Florida Public Service Commission also elected a new chairperson this week: Gabriella Passidomo Smith, a government lawyer and daughter of former state Senate President Kathleen Passidomo. She was first appointed to the commission in 2021.

Tampa Electric offers payment assistance options on its website for customers struggling with bills.

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(Image credit: WTSP)

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