Big Changes Ahead: TECO Customer Rates Set to Increase in 2025!

TECO Rate Hike Approved by Florida Public Service Commission

The Florida Public Service Commission has given the green light for new electric rates for TECO customers, following the company's request for a three-year rate increase.

In April, TECO filed for a significant rate increase to cover operating costs and infrastructure investments. Customers voiced their concerns during three service hearings, with many expressing skepticism about the company’s motives. Brooke Ward, an organizer of protests against the rate hike, criticized TECO, stating that the request seemed driven by corporate greed rather than necessity.

TECO, however, asserts that the new funds will be utilized for several customer benefits:

• Shorter power outages and reduced restoration costs
• Lower fuel costs and an increase in renewable energy
• Enhanced community safety with reliable lighting and innovative technologies
• Optimized low-cost energy

After reviewing customer feedback, the Commission adjusted TECO’s request, leading to a reduction of over $100 million in the requested increase, bringing it down from $287.9 million to $184.9 million. This adjustment aims to allow TECO to continue investments while easing the financial burden on customers.

The approved rate increase will take effect in January 2025, with the average customer bill for 1,000 kWh usage rising to approximately $145.48, an increase of $9.14. Despite the increase, TECO claims that residential rates will still be among the lowest in Florida and below the national average. Small commercial rates will see a 3% decrease, while medium and large commercial customers may face increases of 9 to 14%.

TECO's spokesperson, Cherie Jacobs, emphasized that customers struggling to pay their bills should reach out for assistance, highlighting programs like the Share Program, which aids customers in paying their utility bills. The upcoming rates do not include costs associated with storm restorations, which will be addressed later.