Florida utility regulators rejected a staff recommendation that would've led to increases in Tampa Electric bills, along with utility profits. This comes as TECO once again had some of the highest bills in the country this summer.
The Florida Public Service Commission's own staff was pushing to repeal a state rule from 1984 that has to do with tax savings embedded in the investments utility parent companies make in Florida.
Bradley Marshall, an attorney with Earthjustice who represents consumer advocates, said Florida ratepayers benefit from that tax deduction because it lowers the amount of revenue they have to pay utilities.
"Now is not the time to be increasing utility bills for the sole purpose of what ends up being, at the end of the day, just to increase the profits of the utilities that you know are making far more profit here than anywhere else,” Marshall said.
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PSC staff was trying to get more profits for the investor-owned companies, arguing that utilities should be making millions more than they are.
"Any increase in utility profits when they're making so much money in Florida as it stands right now, we don't think is warranted,” Marshall said.
Repealing this rule from over 40 years ago could have raised TECO’s last rate hike by nearly $13 million, which would translate to a customer bill increase of $1.12 for using 1,000 kilowatt-hours per month.
"Most TECO customers use more than that, so the impact would be higher than that,” Marshall said. “It doesn't sound on its face like a super high amount every month, but it adds up over time.”
Commissioners ultimately voted 4-1 against repealing the rule to prevent bill increases, which Marshall said is good news given that TECO customers paid the highest June electric bills in the nation for investor-owned utilities serving over 100,000 customers.
The average Tampa area household paid $254.55, which was about $95 more than the national average electric bill for June.
