The fuel charge on your Tampa Electric bill represents the cost of fuel used to generate electricity. TECO operates power plants that run primarily on natural gas, and the cost of that fuel is passed through to customers dollar-for-dollar.
How Fuel Cost Recovery Works
Florida utilities, including TECO, are regulated by the Florida Public Service Commission (FPSC). The FPSC allows utilities to recover fuel costs through a separate line item rather than building them into base rates. This means:
- When natural gas prices rise, your fuel charge increases
- When natural gas prices fall, your fuel charge decreases
- The utility doesn't profit from fuel costs — they're a pass-through
Why Fuel Charges Fluctuate
Natural gas prices are set by commodity markets and can vary significantly based on:
- Seasonal demand (winter heating, summer power generation)
- Supply disruptions (hurricanes, pipeline issues)
- National and global energy markets
In 2025-2026, natural gas prices have been relatively stable compared to the 2022 spike, but fuel charges still represent a significant portion of your bill — typically 3-5 cents per kWh.
Reading the Fuel Charge on Your Bill
Your TECO bill breaks out several components:
- Base Charge — A fixed monthly fee regardless of usage (currently around $11-12)
- Energy Charge — The per-kWh rate for electricity consumed
- Fuel Charge — The per-kWh fuel cost recovery
- Storm Recovery — Infrastructure improvement surcharges
- Taxes and Fees — State and local taxes
The fuel charge is calculated by multiplying your kWh usage by the current fuel rate. For example, if you used 1,200 kWh and the fuel rate is 4.5 cents/kWh, your fuel charge would be $54.