Tampa Electric announced Friday that it plans to lower electric rates because of cheaper fuel costs.
The Tampa utility said it planned to pass cheaper natural gas costs on to customers, to the tune of about $13 per 1,000 kilowatt hours. The move follows a sharp increase in fuel charges that took effect with January's billing cycle.
Customers, though, may not see that savings in their bills, because Tampa Electric is also seeking to raise base rates by $10 per thousand kilowatt hours. Utilities are not allowed to profit from fuel, which can be half or more of a customer's bill. It's a pass-through to consumers. Base rates, which are another large segment of customers' bills, includes the company's operations, labor, and maintenance costs as well as its profits.
Progress Energy also recently asked to cut fuel charges after a 24 percent increase in January to pay for fuel and its planned nuclear plant. The St. Petersburg utility also cut the nuclear charge. Together, the two reductions will amount to an 11 percent decrease starting in April. The savings might not last. The utility could raise its base rate early next year.
Asjylyn Loder, Times Staff Writer
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