FPSC Approves Bayside Settlement That Protects Customers and Provides Rate Stability

"The Commission carefully reviewed the settlement agreement and determined that it provides a fair and reasonable resolution of the disputed issues," Chair Smith stated. "The agreement balances the interests of customers and the utility, avoids the costs and uncertainty of prolonged litigation, and provides regulatory certainty while ensuring fair and reasonable treatment of fuel cost recovery and depreciation."

The settlement stems from TECO's April 2026 petition to revise depreciation rates for Bayside Power Station assets and a review of the circumstances that led to two outages at Bayside that resulted in replacement power costs.

Under the terms of the agreement, TECO may not request to increase its general base rates with an effective date before January 1, 2028. The settlement also reduces the fuel costs the company can recover from customers in 2027 by $10 million, and approves updated depreciation rates for Bayside Power Station assets, effective July 1, 2026.

TECO serves approximately 844,000 customers in a 2,000 square mile service territory in Hillsborough and portions of Polk, Pasco, and Pinellas counties in Florida.

For additional information, visit the Florida Public Service Commission's website at www.FloridaPSC.com.