Tampa Electric residential customers who use 1,000 kilowatt-hours of electricity per month will pay on average $5.50 more each month starting in January 2026.
The increase finalized Tuesday is part of yearly adjustments tacked on to a base rate hike approved by the Florida Public Service Commission in 2024.
A TECO spokesperson said in an email this will fund critical projects that improve “reliability and efficiency,” like: three new energy storage facilities, power plant upgrades that enhance storm resilience, and two new solar plants that will help lower future fuel costs.
Tampa Electric’s solar investments over the last eight years have saved customers approximately $365 million in fuel costs, the spokesperson said.
“Like utilities across the nation, we face increased costs driven by stronger storms, record heat, and the cost of upgrading a grid built for a different era,” she said.
“These investments strengthen the electric grid and help keep costs more stable over time. Even with these changes, Tampa Electric’s residential rates remain below the national average.”
While TECO’s rates are below the national average, residential customers paid the highest bills in Florida and second highest in the country this past June.
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Brooke Ward, senior Florida organizer with Food and Water Watch, said this will be the fourth increase in 12 months.
"So, that's where this really ends up being a much bigger increase than it looks like on paper," Ward said.
The initial base rate hike was in January, which added between $9 and $13 more to monthly bills. Then in March, the utility started charging for storm recovery costs between $20 and $25 per month. And in June, there was a 10% increase in customer fuel charges.
"All three of those have compounded with this additional increase that's going into effect on January 1," Ward added.
When this latest increase kicks in, residential customers will be paying about $939 more annually than they did five years ago – an 82% increase.
The temporary storm costs are ending next September, but Ward doesn’t anticipate the any “relief in sight.”
“In fact, Tampa Electric most likely will be filing another rate increase in the new year to increase rates in 2027 and 2028,” she said.
“This is a cycle that is not going to end unless our state lawmakers do something about it, and that's why we've been calling on state lawmakers to prioritize affordable energy reform, to put people above corporate profits.”
The utility has some options for residents struggling to pay their bills here.
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The PSC, which regulates electric utilities, also voted for a new chairperson this week.
Gabriella Passidomo Smith is a government lawyer and the daughter of former state Senate President Kathleen Passidomo, R-Naples. She was first appointed to the commission by the governor in 2021.
Ward said she hopes Passidomo Smith weighs customer needs more heavily when making rate hike decisions.
"And to also lead this Public Service Commission into a new era that isn't just a rubber stamp for rate hikes, but a Public Service Commission that truly is doing its job to ensure fair and affordable rates for Floridians," she said.
