State regulators Tuesday kept in place their approval of base-rate increases for Tampa Electric Co., but a challenge to the rates likely will play out at the Florida Supreme Court.
The Florida Public Service Commission largely rejected a request by consumer representatives to reconsider its rate decision, though the panel agreed to fix a mathematical error.
In March, the state Office of Public Counsel, which represents consumers in utility cases, and the groups Florida Rising, Inc., and LULAC Florida, Inc. also filed notices of appealing the rate approval to the Supreme Court. The court issued a stay of the appeals while the Public Service Commission took up the Office of Public Counsel’s request for reconsideration.
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Deputy Public Counsel Charles Rehwinkel said that Tuesday’s decision “doesn’t change the appeal we filed.” The Office of Public Counsel and the groups have not filed briefs detailing their positions at the Supreme Court.
In a December vote followed by a Feb. 3 final order, the commission approved a nearly $185 million base-rate increase for Tampa Electric in 2025, followed by expected increases of $86.6 million in 2026 and $9.1 million in 2027. The first increases took effect in January.
The commission focused mostly Tuesday on the issue of correcting the mathematical error, which the Office of Public Counsel had raised.
Base rates make up a major part of customers’ monthly electric bills, and rate cases play out over months and involve voluminous amounts of information. Other parts of customers’ bills include such expenses as power-plant fuel and costs of complying with environmental regulations.
One issue in the Tampa Electric case has been its return on equity, a closely watched measure of profitability. The commission approves return-on-equity ranges for utilities and what is known as a “midpoint.” Tampa Electric sought an 11.5% midpoint, with the commission ultimately approving a 10.5% midpoint.
In addressing the request for reconsideration, Public Service Commission staff members last month issued a recommendation backing the commission’s decision to approve the 10.5% midpoint, saying it is “supported by substantial and competent evidence and was reasonable given the unique aspects of TECO’s business.”
“The commission was confronted with a considerable amount of competing testimony including over 20 variations of financial models provided by three competing witnesses and further testimony provided by two additional witnesses,” the staff recommendation said. “Additionally, TECO established that it faces unique risks due to its geography, namely having a highly concentrated service territory located in an area prone to potentially devastating hurricanes which may cause considerable damage to a high percentage of TECO’s territory.”
But in its Feb. 18 request for reconsideration, the Office of Public Counsel said Tampa’s Electric’s “size and storm risk are already mitigated through other methods.” Also, it pointed to the commission staff saying in November that the return-on-equity midpoint should be 10.3%— rather than the 10.5% later approved by the commission.
