Increase in Tampa Electric Company (TECO) rates: what every customer needs to know

In TECO’s service area — the counties of Hillsborough, Polk, Pasco, and Pinellas — both residential and commercial customers are facing a new scenario of rising electricity rates. Below is a comprehensive analysis of what is happening, why it is happening, and what it means:

What was approved?

• On December 9, 2024, the Florida Public Service Commission (PSC) approved TECO’s base rates, which went into effect on January 1, 2025.

• For a residential customer using approximately 1,000 kWh per month, the estimated bill increased to about US $145.58, representing an increase of US $9.14 per month, or approximately 6.7%.

• At the same time, small commercial customers experienced an approximate 3% decrease in rates, while medium and large industrial customers faced increases of 9% to 14%, depending on usage.

• Additionally, in November 2025, the PSC approved another increase that will take effect in January 2026, estimated at about US $5.50 more per month for the average residential customer — translating into an accumulated increase of up to ~82% compared to 2020 for some customers.

Why does TECO justify this increase?

• The company states that this increase is necessary to modernize the electric grid in response to rising demand (electric vehicles, air conditioning, population growth) and increased risks of outages due to storms, cyberattacks, or extreme weather events.

• TECO also claims that these investments will improve system reliability (currently at 99.98%), while expanding energy storage, solar generation, and efficiency in existing power plants.

What is the impact on customers?

• For a household using about 1,000 kWh/month: an increase of approximately US $9.14/month in 2025 (~6.7%).

• Starting January 2026: an additional increase of approximately US $5.50/month.

• In a broader context, some residential customers may be paying up to US $939 more per year compared to five years ago (an increase of approximately 82%).

• For medium and large businesses, the percentage increase is even higher, significantly raising operating costs.

What should customers do?

For residential and commercial users, the message is clear: as grid electricity becomes more expensive, the adoption of self-generation, efficiency, and energy storage becomes increasingly strategic. At Green Squad Solar Export, we recommend:

1. Reviewing your electric bill: consumption, usage patterns, current rates, and additional charges (storm recovery, fuel adjustments, etc.).

2. Evaluating a solar + battery system: calculating return on investment, expected savings, and payback against future grid increases.

3. Understanding that these changes are not temporary, but part of a growing trend: grid modernization, investment in solar and storage, and possible additional increases.

4. Working with a trusted advisor to properly size your system, evaluate incentives, and plan for the long term.

Conclusion

TECO’s rate increase represents a challenge for customers, but also an opportunity to change personal or business energy models. In an environment where dependence on the grid becomes increasingly expensive, investing in energy independence and resilience is no longer a luxury — it is a smart decision.

At Green Squad Solar Export, we are ready to guide you every step of the way.