Environmentalists Say TECO's 10-Year Plan Too Dependent On Fossil Fuel

TAMPA, FL — An environmental advocacy group is taking Tampa Electric Co. to task after the utility filed its 10-year plan with the Florida Public Service Commission Friday that shows a 1.4 percent increase in its use of fracked gas from 2021 levels.

Under the plan outlining the utility’s power needs and power generation plans for the next decade, TECO, which serves about 830,000 customers in West Central Florida, said natural gas generated by fracking operations will constitute 78.1 percent of the total energy it generates.

Food & Water Watch said TECO's plan indicates the company will continue its reliance on costly fossil fuels in the form of fracked gas, resulting in higher energy bills for residents and businesses.

“The mounting climate and rate crises are hitting Tampanians hard," Food & Water Watch senior Florida organizer Brooke Ward said. "As our energy bills rise, so too does the sea level. Tampa Electric’s dangerous reliance on dirty fracked gas takes us in the wrong direction. The utility’s lethargic response to these combined crises indicates a tragic commitment to profits over people."

Ward called on the Hillsborough County Commission to step in and demand that TECO reduce its reliance on natural gas prior to the Public Service Commission approving TECO's 10-year plan.

"It’s time for our elected officials to right this wrong," Ward said. "It’s time to get off gas in Hillsborough County.”

In a statement to Patch, Tampa Electric refuted Food & Water Watch's interpretation of its 10-year plan, maintaining that the company is committed to net-zero carbon emissions by the year 2050, and its 10-year plan reflects that intent.

"Tampa Electric has a long legacy of environmental stewardship. Since 2000, Tampa Electric has reduced its use of coal by about 90 percent and cut our carbon footprint in half," Archie Collins, president and chief executive officer of Tampa Electric, said. "Tampa Electric has the most solar power per customer of any utility in Florida, with more to come. By the end of 2025, we will have about 17 percent of our energy generated from the sun — the highest percentage of solar generation of any utility in the state."

Collins said three new solar plants in Hillsborough County (Laurel Oaks Solar, Riverside Solar and Big Bend Solar II Phase 2) began producing solar electricity at the beginning of 2023. Tampa Electric’s solar projects can now produce 1,000 megawatts of electricity, enough to power more than 160,000 homes, he said.

“Thanks to our strategic investment in solar power, Tampa Electric customers saved about $80 million in fuel costs last year,” said Collins. “At a time when fuel costs are escalating, we know how important these savings are for customers. And this year, we expect to generate even more power from the sun.”

He said Tampa Electric’s solar investments have dramatically changed how the company creates electricity. In 2023, the company’s fuel mix is expected to be about 85 percent natural gas, nearly 10 percent solar and only 5 percent coal.

Additionally, TECO has another 230 megawatts of solar power under construction, with more planned by the end of 2025," Collins said, enabling the company to produce more than 1,600 megawatts of solar power, serving 260,000 homes.

When those projects are complete, he said. Tampa Electric will have about 17 percent of its energy generated from the sun – the highest percentage of solar generation of any utility in the state.

As a result, said Ward TECO's investment will reduce the impact of volatile natural gas prices, reduce greenhouse gas emissions, reduce carbon dioxide emissions by more than 2.35 million tons every year (roughly equal to removing 500,000 cars from the road) and save 4.3 billion gallons of water by repurposing agricultural land for solar.

Nevertheless, Ward maintained that TECO's 10-year plan falls short of showing the company's commitment to the environment.

The United Nations' latest Intergovernmental Panel on Climate Change concluded that an immediate reduction of fossil fuel extraction and burning is critical to preventing climate change.

Ward said research by Food & Water Watch shows Tampa Electric’s continued reliance on fracked gas undermines its efforts to ramp up renewable energy production.

In addition, TECO's high fossil fuel costs are responsible for the latest energy bill increased by TECO that went into effect April 1, said Food & Water Watch. Since 2020, the price of gas has tripled, and since January 2019, the average Tampa Electric bill has increased 62 percent.

"Renewables are proven to deliver cheaper electricity than fossil fuels like fracked gas," Ward said.

TECO, however, said the April 1 rate increase it requested in January is intended to recoup $131 million in expenses for the prompt restoration of power after Hurricanes Ian and Nicole and five other storms in 2022.

It also allowed the company to weather the extreme volatility of natural gas prices in 2022, which increased by more than 70 percent over the previous year, resulted in home energy costs reaching near 10-year highs in the United States, TECO said.

Although TECO paid fuel and storm expenses upfront, the company said it waited until early this year to make the request to increase rates to the Public Service Commission to help mitigate the costs as natural gas prices dropped and began to stabilize.

"We work 365 days a year to lessen the impact of severe weather and other unknowns – such as rising global fuel prices – on our customers," said Collins. "In this case, one of the best ways to ease the impact is to spread these costs over a longer time frame."

He said this rate increase was the second of two steps taken by the company to reduce the impact on customers. The company also requested fuel costs be spread over 21 months, through the end of 2024, and storm costs be spread over 12 months.

The Public Service Commission approved TECO's rate hike March 7 and, as of April 1, the typical residential customer’s monthly energy bill increased by about 10 percent, or from $14.66 to $161.38 for 1,000 kilowatt-hours of use, from the $146.72 customers paid last year. Commercial and industrial customers’ increased from 5 to 10 percent, depending on usage.

Even with the rate increase, Collins said the typical residential bill is among the lowest in Florida.

The Public Service Commission will hold public workshops on Tampa Electric’s 10-year plan before approving, editing or denying it later this year.