Tampa Electric Company (TECO) is facing significant opposition over its proposal to increase electricity rates by more than 20% over the next three years. The proposed hike comes just two weeks after the utility completed power restoration efforts following Hurricane Milton.

Consumer Concerns and Legal Challenges

Under TECO’s plan, the average monthly bill for residential customers would rise from $136 to $165 by 2027—a move that has sparked widespread criticism from consumer advocacy groups and local residents.

Paul Paduano of Apollo Beach, frustrated with TECO’s reliability issues, particularly street lighting outages, voiced his concerns:
“They’re not there for aesthetics; they’re also there for safety.”

Many Floridians argue that rising electricity costs are outpacing wage growth, making household budgets even tighter.

This week, consumer advocates filed legal challenges arguing that TECO’s request to raise $445 million over three years is disproportionate—especially given the financial relationship between TECO and its parent company, Emera. Despite TECO’s 840,000 customers accounting for only 34% of Emera’s customer base, they contribute a staggering 54% of the company’s revenue.

Regulators Approve Cost Shift to Residents

Fueling even more frustration, Florida utility regulators recently approved a measure allowing TECO to shift millions in costs from large corporate power users onto residential and small business bills.

Despite recommendations from its own staff to reduce the increases, the Florida Public Service Commission (PSC) voted in favor of the cost shift after months of proceedings.

Critics—including consumer advocate Walt Trierweiler—have described the hike as “breathtaking” and “egregiously excessive.” Environmental lawyer Jordan Luebkemann, who represented residential consumers in the case, called the decision “a really disappointing outcome.”

Environmental and Financial Arguments

Beyond financial concerns, environmental groups such as the Sierra Club have also opposed the rate hike. They argue that TECO has overstated its financial needs and could lower costs by reducing reliance on coal.

“We’re not taking issue with every aspect of TECO’s cost allocation,” said Sari Amiel of the Sierra Club, “but this specifically is a glaring issue that TECO can and should address.”

The Sierra Club further notes that TECO customers already pay some of the highest electricity bills in the country and warns that this rate increase will only make things worse.

TECO’s Justification for the Increase

TECO defends the hikes, citing the need to fund investments in:

• Solar projects
• A new company headquarters
• Automate outage response systems

TECO CEO Archie Collins emphasized the company’s commitment to strengthening the grid, noting that they had already reduced costs twice this year, leading to average savings of $25 per customer.

“The strength of this grid relative to other electrical grids that I have worked with in my 35-year career… this is a strong grid,” Collins stated.

Still, consumer advocates argue that corporate customers like Walmart and hospitals have seen far smaller rate increases than residential customers, thanks to a 2021 agreement favoring large businesses. Regulators also approved TECO’s request to increase shareholder profits to 10.5%, lower than the requested 11.5% but higher than staff recommendations.

Potential Additional Costs & Public Reaction

Beyond the proposed hikes, a new storm surcharge could be introduced, further increasing costs for Florida households.

Outrage has grown among residents and advocacy groups, including AARP, which has collected thousands of signatures opposing the increase.

“Residential ratepayers beholden to Tampa Electric are about to be hit with the force of a Category 5 hurricane in the form of skyrocketing electric bills,” said Zayne Smith of AARP Florida.

Brooke Ward of Food & Water Watch blasted the commission as a “rubber stamp for utilities and big businesses,” calling the decision a missed opportunity for energy justice.

The Public Service Commission is set to finalize the rate specifics on December 19. In the meantime, residents are urging regulators to reconsider the decision and ease the financial burden on Florida households.

What This Means for Florida Homeowners

With TECO’s rates set to increase yet again, many homeowners are looking for ways to break free from rising energy costs. One of the most effective solutions? Going solar.

At Aspire Solar, we provide high-quality solar installations, covering everything from permitting to warranties, so you can lock in lower energy costs and protect yourself from unpredictable utility hikes.

Instead of waiting for the next TECO rate increase, take control of your electricity bill today. Get a free, no-obligation solar report to see how much you can save.