TECO Energy Inc.
) unit Tampa Electric Company plans to increase its electricity
rate. The company has already filed its rate-hike request to the
Public Service Commission (PSC). The rate increase will impact
all customer categories, including residential, commercial and
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At present, the average residential customers, consuming 1,000
kilowatt-hours (kwh) per month, pay $102.58 monthly. If the
revised rates are approved by the commission, the customers will
have to pay roughly $113 per month, up 10.1% from the last rate,
effective Jan 2014. Tampa Electric also plans to increase the
monthly electricity rate of the commercial and industrial
customers by approximately 6%.
Tampa Electric tries to provide uninterrupted utility services to
its customers at much lower prices than its peers. In spite of
planning to increase the electricity rates, the residential bills
would remain the lowest in the state of Florida. According to the
Energy Information Administration, the bill will be roughly 5%
lower than the national average of $118.90 in Jan 2013.
It is a normal practice of regulated utility providers to recoup
their earlier invested funds through the filing of rate-hike to
the commission. Last time in 2008, Tampa Electric requested a
rate increase to recover its investments, utilized for the
improvement in delivery reliability.
In the last couple of years, TECO Energy invested substantial
amounts to upgrade its infrastructure at Polk Power Station and
solid-fuel handling equipment at Big Bend, as well as to expand
and improve its transmission assets.
Further, TECO Energy plans to invest $2.98 billion during the
2013-2017 period under the capital spending program to strengthen
and modernize its utility generation and transmission systems. We
appreciate the steps taken by the company to provide
uninterrupted reliable utility to its customers at a lower price.
Tampa, FL-based TECO Energy Inc. is involved in the generation,
purchase, transmission, distribution, and sale of electric energy
in the state.
The company currently has a Zacks Rank #4 (Sell). Other stocks
from the industry that are presently performing better include
Brookfield Infrastructure Partners L.P.
Empresa Nacional de Electricidad S.A.
Pike Electric Corporation
). All the three stocks carry a Zacks Rank #1 (Strong Buy).