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TAMPA — As if the rising price of gas and food wasn't enough, Tampa Electric and Peoples Gas customers could soon face much higher monthly bills.
Both utilities plan increases of as much as 10 percent, they announced Thursday afternoon. Tampa Electric's average residential customer could be facing a monthly increase of $14 or more. Peoples Gas bills could rise more than $4 a month.
The increase has nothing to do with soaring fuel costs. Tampa Electric and Peoples Gas want to raise "base rates." Base rates pay for construction, operation and management of power plants and transmission lines. Base rates also include a rate of return — the utility's profit.
Tampa Electric last asked for a base rate increase in 1992, Peoples Gas in 2002. Since 1992, Tampa Electric has added more than 200,000 customers, and now serves nearly 670,000 in Hillsborough County as well as parts of Pasco, Polk and Pinellas counties, spokesman Rick Morera said.
Peoples Gas has added more than 100,000 customers since 2002, and now has about 320,000 customers statewide.
Since their last base rate increases, the costs of labor, concrete and steel pipe have risen dramatically.
The two utilities, both owned by Tampa's TECO Energy, have 60 days to provide details on the rate increases to the Florida Public Service Commission.
Morera said the commission process could take eight months. If the commission approves the increases, customers could see the higher bills starting in May 2009.
>>Fast facts
How will this affect my bill?
Amounts based on residential pricing and average residential use. Actual bills may differ.
Tampa Electric: Average monthly residential bills could go from $142.98 to as much as $157.27.
Peoples Gas: Average monthly residential bills could go from $42.90 to $47.19.
Sources: Tampa Electric and Peoples Gas
On the Web
For more information, visit the Fueling Station at blogs.tampabay.com/energy.
[Last modified: Jun 14, 2008 11:54 PM]
Comments on this article
by joe tampa
Jun 14, 2008 11:54 PM
Tampa Electric owns Peoples Gas. Small wonder their rates increase. This is just another result of them eliminating competition so we have no alternatives.
by AMERICAN
Jun 13, 2008 3:16 PM
Mr. James. These companies are regulated place. That is why these companies have to petition the PSC for the increases. Think about the things that the company you work for is doing and compare. It's no different. Everyone has to adjust.
by tom
Jun 13, 2008 1:38 PM
Same ole, same ole, these companies see the chance to pounce and away they go! They already have a cost of energy provision...but, thats not enough!! Go America, the ghosts of the roman empire await us!!
by James
Jun 13, 2008 10:51 AM
There should be a law limiting how much utilities can raise rates, we are already paying enough for every day living and yet these utilities want to raise rates, how much more can the consumers afford living in this messed up state.
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