Why Is My TECO Bill So High? Tampa Electric in 2026

The short answer

Tampa Electric's price climbs fast once you pass 1,000 kWh in a month: every kWh above that line costs 2 cents more, about 14 percent. Summer air conditioning, which TECO says can be more than half of a bill, is what pushes most homes past the line. Through most of 2025 and 2026, a temporary storm surcharge added about $20 to every 1,000 kWh on top of that.

The surcharge ended with August 2026 bills, so a 1,000 kWh bill is now $156.43, down from $176.89 earlier in 2026. If your bill hasn't dropped as much as you expected, the hot months are the likely reason: TECO itself noted that August is typically one of the hottest months of the year.

The 2-cent step at 1,000 kWh

TECO's standard residential rate (RS) charges two prices. For 2026, adding up the energy charge, fuel and every per-kWh clause on TECO's tariff, the first 1,000 kWh in a month cost 13.902 cents each and every kWh above that costs 15.902 cents. Both the base energy charge and the fuel charge are exactly one cent higher above the line.

Used in a 30-day month	Before taxes and fees	Average per kWh
1,000 kWh	$152.52	15.3 cents
1,500 kWh	$232.03	15.5 cents
2,000 kWh	$311.54	15.6 cents
2,500 kWh	$391.05	15.6 cents

Those figures include TECO's daily basic service charge for 30 days. The Florida gross receipts tax, and any city franchise fee or utility tax where you live, come on top. At 2,000 kWh, half of your usage lands on the expensive side of the line.

A charge for every day, and a rule for long bills

TECO's basic service charge is 45 cents a day, charged for every day of the billing cycle whether or not you use power. TECO says the number of days in a billing period can change with weekends, holidays or a change in the meter-reading date. A 35-day bill carries $15.75 of that charge; a 28-day bill carries $12.60.

TECO's tariff also protects you from long billing periods. Charges are prorated if a period is shorter than 25 days or longer than 35. And if a period runs past 35 days and the extra days are what push your usage past 1,000 kWh, based on your average daily use, the excess is billed at the lower first-tier price.

What is in a $156.43 TECO bill

Tampa Electric publishes this breakdown of a 1,000 kWh residential bill as of August 1, 2026, after the storm surcharge ended:

Energy charge (with capacity, environmental and conservation)$95.69

Fuel$32.10

Daily basic service charge, 30 days$13.50

Storm protection$7.17

Clean energy transition mechanism$4.06

Florida gross receipts tax$3.91

The energy charge pays for producing and delivering power, excluding fuel. The storm protection charge funds TECO's work to strengthen lines against severe weather, which is separate from the storm surcharge that paid for past repairs. The clean energy transition mechanism, a TECO-specific line, recovers the costs of dismantling and retiring certain coal-fired units and other equipment, under the 2021 rate settlement. Residential customers pay no Florida sales tax on electricity.

Is TECO raising rates?

Base rates went up in 2025 and 2026, and total bills are now coming down.

The rate case. In April 2024 TECO asked the Florida Public Service Commission for a base rate increase of about $296.6 million for 2025, plus about $100 million more in 2026 and $72 million in 2027. It later trimmed the request, and Commission staff recommended far less. In December 2024 the Commission approved a three-year plan that gave TECO a 10.5 percent return on equity, more than its staff recommended and less than the 11.5 percent TECO asked for, as the News Service of Florida reported. TECO's own figures put the effect at $9.14 more on a 1,000 kWh bill in January 2025 and $5.51 more of base rates in January 2026.

The longer view. The Commission's comparisons of a 1,000 kWh TECO bill show $132.66 in late 2022 and $143.48 in January 2024, before the rate case and the storms. Today's $156.43 is higher than both, even with the surcharge gone.

What's next. On September 3, 2026, TECO asked the Commission to cut residential bills by 1.5 percent from January 2027, to $154.13 for 1,000 kWh, because natural gas prices are lower than expected. The Commission is expected to consider it on November 3. Until it is approved, treat it as a request.

The storm surcharge, and why it ended early

After the 2024 hurricane season, TECO says it spent more than $400 million restoring power. Florida utilities can't buy cost-effective insurance for poles and wires, TECO notes, and base rates don't include storm restoration, so utilities ask the Commission for a temporary surcharge instead. The Commission approved a temporary storm surcharge that started with March 2025 bills, covering the 2024 hurricanes, 2023 named storms and a refill of the storm reserve fund, spread over 18 months.

It added $19.95 to every 1,000 kWh. Because the money came in ahead of schedule, it came off bills in August 2026 instead of September: about $20 less per 1,000 kWh, $40 per 2,000 kWh and nearly $60 per 3,000 kWh. Customers on Budget Billing see the drop more gradually, because their payment is an average.

Fuel: natural gas sets the price

TECO says natural gas is its primary fuel for making electricity, that fuel costs pass straight to customers with no markup, and that fuel is about 20 percent of a residential bill. The fuel charge is set each year through the Commission's fuel clause and can be adjusted mid-year. In 2026 it is 3.210 cents per kWh for the first 1,000 kWh and 4.210 cents above that.

Fuel has moved TECO bills in both directions. In June 2025 a prior fuel credit ended, adding $1.97 to a 1,000 kWh bill. The January 2027 cut TECO has requested comes from lower gas prices.

Summer and your air conditioner

An upscale two-story Florida home with a screened pool on a hot late-summer afternoon, its air conditioner running beside the wall under a hazy sky

From Tampa Electric

Your air conditioner alone can account for more than half of your bill, and July through September strain it the most.

TECO says each degree you set the thermostat above 78 in summer can cut energy use by about 7 percent, and that fixing drafty windows, doors and leaky ducts can cut it by about 20 percent. On TECO's rate, the kWh you save in summer are mostly the expensive ones above 1,000.

What lowers a TECO bill

TECO option	What it does	Lowers the total?
Free energy audit	An online or in-person check of your home that points to where you can save.	Yes, if you act on it
Prime Time Plus	Monthly bill credits for letting TECO temporarily interrupt power to certain appliances when demand is extremely high.	Yes, through credits
Energy Planner	Prices that vary through the day, so you can shift usage to times when power costs less.	Only if you shift usage
Budget Billing	A 12-month average payment with a deferred balance. TECO says it is not a discount plan.	No, it only smooths

For causes that apply at any utility, from heat strips in a cold snap to estimated readings and free meter tests, see our guide to why Florida electric bills run high.

When solar fits a high TECO bill

If your TECO bill is high month after month because your home uses a lot of power, solar is worth pricing. On TECO's rate, the kWh solar offsets first are the ones above 1,000, at about 15.9 cents, and TECO credits power you send to the grid at your retail energy rate. The daily basic service charge stays. Our Tampa Electric solar guide covers the credit, the connection steps and what a given bill needs. The calculator below starts with TECO already selected.

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Common questions

Why is my TECO bill so high this month?

Usually because a hot month pushed more of your usage past 1,000 kWh, where every kWh costs 2 cents more on Tampa Electric's residential rate. A longer billing period adds more days of the 45-cent daily service charge and more days of air conditioning. Compare this bill's kWh and days with the same month last year to see which it was.

Did TECO rates go down in 2026?

Yes, in August. The temporary storm surcharge ended with August 2026 bills, one month early, cutting a 1,000 kWh bill by $19.95 to $156.43. Earlier in 2026, bills had gone up $8.88 in January from base rate and fuel changes.

Is TECO raising rates in 2027?

Tampa Electric has asked to lower them instead. On September 3, 2026 it asked the Florida Public Service Commission to cut residential bills by 1.5 percent from January 2027, to $154.13 for 1,000 kWh, because natural gas prices are lower than expected. The Commission is expected to consider it on November 3.

How much does TECO charge per kWh?

For 2026, adding the energy charge, fuel and every per-kWh clause on Tampa Electric's tariff, the first 1,000 kWh in a month cost about 13.9 cents each and every kWh above that about 15.9 cents. There is also a basic service charge of 45 cents a day, plus the gross receipts tax and any local fees.

Why is my first TECO bill so high?

A first bill can include a connection charge: TECO's tariff lists $15 to start service at a home that has had service before, and $168 for a premises being connected for the first time. Florida law also lets the utility ask for a deposit of up to two months of projected charges on a new account. The first bill may also cover more or fewer days than a normal month.

What is the clean energy transition mechanism on my TECO bill?

It is a Tampa Electric charge, 0.406 cents per kWh for homes, that recovers the costs of dismantling and retiring certain coal-fired units and other equipment. It comes from TECO's 2021 rate settlement approved by the Florida Public Service Commission.

What was the TECO storm surcharge?

A temporary charge, on bills from March 2025, that the Florida Public Service Commission approved so Tampa Electric could recover more than $400 million of storm restoration costs, mainly from the 2024 hurricanes, plus 2023 named storms and a refill of its storm reserve. It added $19.95 per 1,000 kWh and ended with August 2026 bills, a month earlier than planned.

Does Budget Billing lower my TECO bill?

No. Tampa Electric says Budget Billing is not a discount plan. It bills a 12-month average and tracks the difference from your actual charges as a deferred balance, which is spread into the next year's payments. It makes bills predictable, and changes such as the end of the storm surcharge show up more gradually.

Can solar lower my TECO bill?

It can when high usage is the problem. On Tampa Electric's rate the first kWh a solar system replaces are the 15.9-cent ones above 1,000 a month, and exported power earns a credit at the retail energy rate. The 45-cent daily charge doesn't go away. See our Tampa Electric solar guide for sizing.

Figures here use Tampa Electric's 2026 residential rate for a 30-day month. Local franchise fees and utility taxes vary by city, and TECO's rates change when regulators approve new ones. Sources: Tampa Electric tariff section 6, rate schedules effective January 2026 (PDF) · tariff section 3, service charges (PDF) · Tampa Electric rates and recent bill changes · Tampa Electric, understanding your bill · Tampa Electric on 2025 bills · on the storm charge ending · on the August 2026 reduction · on the proposed 2027 reduction · on 2025 rates · Tampa Electric Budget Billing · Florida PSC staff recommendation summarizing the 2024 rate case (2025) · News Service of Florida via WMNF on the December 2024 decision · Florida PSC 1,000 kWh bill comparisons, 2026 (PDF) · January 2024 · 2022 · Florida Statutes 366.05 (deposits). Reviewed September 2026.

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