Tampa Electric rates set to rise

Tampa Electric Co. said customers' bills would increase starting in January.

The increase is due to rising fuel costs, according to a release.

The company said its total fuel costs for this year are expected to exceed original projections by about 20 percent, and that by year-end it will have under-recovered from customers about $209 million.

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Under Florida's system, when a utility becomes aware that its projected fuel revenues will result in an over- or under-recovery in excess of 10 percent of its projected fuel costs for the period, the utility must notify the Public Service Commission. Tampa Electric said in the release that it has chosen not to seek to adjust its fuel charge mid-year but to address the under-recovery through its 2009 fuel charge.

The company estimated that the bill for a residential customer using 1,000 kilowatt-hours of electricity per month would be about $140 starting in January, compared to the present bill of $114.38.

Tampa Electric said it makes no profit on the fuel charge portion of the bill, because fuel costs are a "pass-through" charge, collected form customers by the utility and used to pay fuel suppliers.

Tampa Electric is the principal subsidiary of TECO Energy Inc. (NSYE: TE), an energy-related holding company based in Tampa.