Florida’s two major Tampa Bay-area utilities have implemented rate changes in 2026: Duke Energy lowered bills, while Tampa Electric Company (TECO) continues multi-year utility rate increases.

Duke Energy

Duke Energy customers saw their bills temporarily increase by approximately $7.54 per month in January and February 2026 for typical residential customers using 1,000 kilowatt-hours. However, starting in March 2026, Duke customers are experiencing a significant decrease of approximately $44 per month compared to February levels.

The March decrease is primarily due to the expiration of temporary storm recovery charges related to the 2024 hurricanes. Despite a base rate increase of about $2.73 for 2026 approved as part of a settlement reached in 2024, overall bills are declining due to the removal of storm costs.

Duke Energy justifies its base rate increases by citing investments in grid reliability improvements and solar energy expansion. The utility is adding 12 new solar facilities and upgrading infrastructure to reduce outages and speed restoration times after storms.

Tampa Electric Company (TECO)

TECO customers saw rates increase by $8.88 per 1,000 kilowatt-hours on January 1, 2026, due to combined increases in base rates, fuel charges and other costs. An additional $5.51 monthly increase took effect later in January as part of a multi-year rate plan approved by the Florida Public Service Commission in 2024.

According to the approved plan, TECO will implement an $86.6 million base rate increase in 2026, following a $184.9 million increase in 2025. A smaller $9.1 million increase is scheduled for 2027.

TECO says the rate increases fund three new energy storage facilities, power plant efficiency upgrades, storm resilience improvements, and two additional solar plants designed to lower future fuel costs. The company states these investments address increased costs from stronger storms, record heat, and grid modernization needs.

Consumer advocacy group Food & Water Watch reports that TECO customers have seen bills rise 82% since 2020, or approximately $939 more annually, though TECO disputes this calculation, saying it includes pandemic-related rate reductions that artificially lower the baseline.

TECO’s temporary storm recovery surcharge, which added $20-25 per month to bills, is scheduled to expire in September 2026.

What It Means for Residents

For Duke Energy customers using 1,000 kilowatt-hours monthly, bills are expected to be approximately $44 lower in 2026 than at the start of the year. TECO customers face ongoing increases, though some relief will come when storm recovery charges end later in 2026.

Both utilities offer assistance programs for customers struggling with bills, including payment plans, energy efficiency programs, and financial aid for qualifying households.

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