The Florida Public Service Commission (PSC) today approved a joint Stipulation and Settlement Agreement (Agreement) for Tampa Electric Company’s (TECO) base rate petition. After questioning all parties and PSC staff, Commissioners agreed that the Agreement terms, set through 2017, were in the best interest of TECO customers.
Signed by the Office of Public Counsel (OPC), representing all customers, and other parties to the case, the Agreement reduces TECO’s requested base rate increase from $134.8 million to $70 million and sets a Return on Equity at 10.25 percent.
To reduce customer bill impacts, the base rate increase will be tiered over three years, with a $57.5 million increase effective in November 2013 and increases of $7.5 million in November 2014 and $5 million in November 2015. Residential customers using 1,000 kilowatt hours of electricity will see an estimated monthly bill increase of $7.23, which breaks down to a $5.68 adjustment in November 2013, $1.09 the following November, and $0.46 in November 2015.
“We are pleased that all parties reached an equitable Agreement that reduces the rate impact on all customer classes and still meets TECO’s responsibility to provide quality service,” said PSC Chairman Ronald A. Brisé. “With Florida’s economy still in recovery, customers will benefit from the Agreement’s tiered adjustments that maintains rate stability through 2017.”