TECO utility asking for up to 31 percent increase

Tampa consumers watched safely from afar as Progress Energy Florida increased the rates across the bay on its customers' power bills. Now, similar increases will soon hit home in Hillsborough County.

Tampa Electric bills that today cost $114.38 could be as much as $150 by May 2009, according to new information the utility filed with the Public Service Commission. That's an increase of nearly 31 percent to pay for rising fuel and other costs.

Peoples Gas customers will also see an increase. A bill for 20 therms will increase nearly 10 percent, from $41.12 to $45.02, according to details released Monday by TECO Energy, parent of both the electric and gas utilities.

"It's truly unfortunate that such an action is needed during a challenging economy," said Chuck Black, president of Tampa Electric.

If Tampa Electric gets its way with regulators, base rates — the part of the electric bill that pays for labor and operating costs — will increase $9.37 to $61.29 per 1,000 kilowatt hours starting in May. The utility hasn't increased base rates in 16 years, and says it's necessary to pay for rising costs of labor and materials.

The larger increase comes from the cost of fuel to run Tampa Electric's power plants. The utility plans to raise the fuel cost by $22.31 to $74.72 per 1,000 kilowatt hours, a 43 percent increase in the cost of fuel.

The utility does not profit from fuel. It's a "pass through" cost to consumers.

There's little either utilities or consumers can do about fuel costs, said Bill Newton, executive director of the watchdog group Florida Consumer Action Network. Base rates are another matter.

"Especially in the middle of hard times, when people have a difficult time making ends meet, we don't need this," Newton said. "Just because they haven't increased in 16 years doesn't mean that it needs to be increased now."

The utility still has to argue its case before the PSC.

The fuel case will likely come before the commission in November, and the base rate case will come before the commission in January.

Asjylyn Loder can be reached at aloder@sptimes.com or (813) 225-3117.