Tampa Electric defends plan to pay residents millions more saved by big utility

A week of Tallahassee hearings on Tampa Electric’s request to raise rates concluded Friday after testimony showed how the hikes would increase customer bills.

The decision, made by the Public Service Commission, reflects the widespread questioning of Tampa Electric workers by lawyers fighting for the proposed $445 increase. proposal, which will start in the next three years. Because the committee limited the trial to one week – due to the complaint of the Office of Public Counsel, which represents the clients – the day was long and exhausting, with up to 13 hours of questioning and high-tech solutions.

Lawyers take swigs from pots on the floor that are heated in the room to try to be sharp.

At the time of questioning, the company confirmed that its plan will change millions of people from the debts of large companies and those who live in small businesses.

That is in part because the plan allocates payments based on the type of customers who use the most electricity during the peak period in January, June, July and August – the time of the year when residents use more energy for heating and air conditioning. Industrial use, however, is changing. Jordan Williams, director of pricing and financial analysis at Tampa Electric, said using the plan will cost residents $70 million more per year compared to if the company used a different system than that used by Duke Energy and others.

Those millions will help cover Tampa Electric’s costs for things like building more solar buildings, future carbon capture projects, building a power plant at MacDill Air Force Base and part of its headquarters. New in Midtown Tampa.

Tampa Electric managed to use this rate system because it agreed to do so in the 2021 contract that ended its last rate hearing. The agreement was criticized and signed by several large companies that will benefit from the plan, including the industrial group and Walmart, who are also involved in the ongoing lawsuit. The attorney for the industrial union, Jon Moyle, pushed for Tampa Electric to maintain the plan during the new season, calling it “the right way” to make sure all customers pay “Too good” bills are like the pressure they put on. and traffic.

Bradley Marshall, who represents a group that advocates for more housing opportunities, fought back.

“The residential and small business piggy bank is a waste, and it’s time for TECO and Florida’s fire officials to learn how to support themselves independently of Florida’s vulnerable families and people.” working hard on small businesses for free air,” he said.

Another point of contention is the amount of shareholder value that Tampa Electric is seeking. It is being asked for a median of 11.5%, higher than what any electric company has been prepared to earn for at least a year and a half, according to S&P Global Commodity Insights. According to the testimony of Tampa Electric CEO Archie Collins, it is also the highest value price that is being asked for any pending rate in the country, and it will cost tens of millions more customers every year.

Lawyers for consumers came down on the merits in question in their statement, calling it unreasonable. Tampa Electric said it was necessary to help them stay in business.

“Our challenge is the same balance: We are required to do business well today but at the same time our customers rely on us to anticipate and prepare for what comes tomorrow,” Collins said. “If we don’t make these investments now, our customers will pay higher prices in the long run.”

On Thursday evening, when attorney Robert Scheffel Wright, representing the company’s vendors, tried to ask the vice president of finance of Tampa Electric if he had any evidence that the company would not be able to invest necessary at its current rate of profit, the company’s lawyer asked.

Commissioner Art Graham approved it. When Wright was surprised, saying that those kinds of questions are usually “fair game,” Graham said he agreed, “but let’s move on to something else.” Tampa Electric will not respond.

In an exchange between the Office of Public Counsel and an expert who testified about the tax credit, the witness listed his opinion on the scope of the case.

“I think the commission has to have confidence in Tampa (Electric),” said Karl Rabago, an energy consultant. “If Tampa gets out of it, as we all know, Florida Power & Light will get out of it and as we all know, Duke will get out of it. They’re all looking at each other. So you’re taking a lot of money out of the pockets of the citizens of the state of Florida.”

If lawyers come to an agreement behind closed doors, the case could still end in a settlement agreement, as the Duke Energy Florida case did last month.

If not, commissioners are scheduled to take their first vote on the Nov. 6, expecting a final decision at the end of the year.