Tampa, Fla., Utility Asks State to Raise Rates for Residential Customers Source: Knight Ridder/Tribune Business News Publication date: 2001-02-10 Arrival time: 2001-02-11

Feb. 10--TAMPA--Tampa Electric Co. on Friday asked the state to raise bills by nearly 4 percent, or about $3 a month, to cover the rising costs of fuels. If the increase is approved, the average residential bill will rise $3.29 -- from $84.47 to $87.76 -- beginning in April through the end of 2002.

"It's tough because it's frustrating to everybody," said John Ramil, president of Tampa Electric Co. "You hate to raise prices." The request was expected, as was a similar one from Florida Power Corp., which was submitted to state regulators Thursday.

For Florida Power customers, the average homeowner's electric bills will likely rise $3.70, or 4 percent -- from $89.70 a month to $93.41 -- beginning in April through the end of this year.

The Florida Public Service Commission has final say on the increases. It is tentatively scheduled to consider the requests Feb. 20.

The state's largest utility, Florida Power & Light based in Juno Beach, also has asked for an increase, which will be considered the same day.

The utilities use coal, oil and natural gas to run their power plants; costs are passed to consumers.

Since June, fuel costs have added about $3 a month to Tampa Electric bills and about $6 to Florida Power bills.

Without the increase requested Friday, Tampa Electric will be short $80 million in fuel costs, Ramil said. The utility proposed the increase for 20 months, to avoid a bigger increase for a shorter period of time, such as the rest of this year.

Tampa Electric, with 550,000 customers, is the state's third-largest utility.

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-- Martin Thompson (mthom1927@aol.com), February 11, 2001