Costs experienced so far exceed projections by 9%, but with no relief expected for the balance of the year and the continuation of increased costs, the company estimates that by 2008 year-end, it will be under-recovered by $209 million, or about 20%.
Under Florida’s regulated system, when a utility becomes aware that its projected fuel revenues will result in an over or under-recovery in excess of 10% of its projected fuel costs for the period, the utility must notify the Florida Public Service Commission (FPSC).
Given the proximity to the scheduled annual fuel filing in September 2008, the company has chosen not to seek to adjust its fuel charge mid-year. Instead, it intends to address the under-recovery through its 2009 fuel charge.
Fuel costs, as a pass-through component, are collected from customers by the utility and used to pay fuel suppliers. Tampa Electric reportedly makes no profit on the fuel charge portion of the bill.
