Why is my Tampa Electric (TECO) bill so high?

• A hurricane surcharge. From March 2025, Tampa Electric added $19.95 per 1,000 kWh to recover the cost of Hurricanes Debby, Helene and Milton. It ended with August 2026 bills, a month early.
• A rate increase. The 2024 rate case raised base rates by $185 million in 2025 and about $87 million in 2026, with $9 million more in 2027. In January 2026, base rates added $5.51 to a 1,000 kWh bill and fuel and other charges added $3.31.
• The 1,000 kWh tier. Both the energy charge and the fuel charge go up 1¢ per kWh above 1,000 kWh a month, so a hot month costs more per kWh, not just more kWh.
• Fuel. Fuel is about a fifth of a residential bill, and it moves with natural gas prices.

TECO also charges a basic service charge of about $0.45 a day. After the storm surcharge ended, a 1,000 kWh bill came to $156.43, or about 15.6¢ per kWh.

No. On November 3, 2026, the Public Service Commission approved Tampa Electric's request to lower the typical 1,000 kWh bill by $2.25, or 1.4%, to $154.18 from January 2027, mostly because of lower natural gas prices. The savings more than offset the 2024 rate case's final $9 million base-rate step in 2027.

Tampa Electric's January 2026 rate insert lists a Clean Energy Transition Mechanism charge of 0.406¢ per kWh, and says the energy charge already includes 0.621¢ per kWh of conservation, environmental and capacity cost recovery charges. TECO's bill guide explains the rest:

• Basic service charge: a fixed amount that covers the cost of providing service to your location.
• Storm protection charge: the cost of hardening the grid against hurricanes and other extreme weather. It's separate from the hurricane surcharge that ended in August 2026.
• Florida gross receipts tax: a state tax on utility receipts under Chapter 203 of the Florida Statutes.
• Franchise fee and municipal public service tax: charged where your city levies them and passed through to the city.
• Late payment charge: the greater of $5 or 1.5% on past-due amounts over $10.

Air conditioning. Tampa Electric says Florida's 90°+ heat and humidity make air conditioners run longer and more often, sometimes nearly nonstop for months. In its example of a 1,700 square foot home with a 3-ton, 13 SEER unit set at 78°, a 20° gap between inside and outside keeps the AC running almost constantly, and homes with poor insulation or undersized units may never reach the set temperature.

Summer use also pushes more kWh past the 1,000 kWh line, where each kWh costs about 2¢ more. For the cold-weather version, see why Florida bills spike in winter.

• Budget Billing averages your last 12 months so you pay about the same each month. Tampa Electric stresses it's not a discount: you still pay for the energy you use, and you can't be on Energy Planner at the same time.
• Energy Planner offers lower prices about 87% of the time if you shift use to low-demand periods, and includes a free smart thermostat, according to Tampa Electric. It doesn't work with net metering, so it's off the table once you have solar.
• Free energy audits are available online or in your home through Tampa Electric's energy-saving programs line, 813-275-3909.

These smooth or trim a bill. For a lasting cut, solar is the bigger lever; see the estimate below.

• Watch the 1,000 kWh line. Each kWh above it costs about 2¢ more, so trimming summer use has an outsized effect.
• Solar. Tampa Electric credits exported solar at the full retail rate under Florida net metering, so a system sized to your yearly use can cover nearly all of the energy part of your bill. Only the basic service charge stays.

For a $200 bill, that's a 9.2 kW system at about $24,800, the fastest payback of Florida's three big utilities in our estimates, because TECO's rate is the highest per kWh. See the Tampa Electric solar page or run your own bill through the savings calculator.