TECO Proposes New Tariffs To Shield Tampa Electric Customers From Data-Center Expansion Costs
Tampa Electric has asked the Florida Public Service Commission to approve tariffs requiring large electricity users, including data centers, to cover the full cost of generation, transmission and other infrastructure needed to serve them. The proposal comes amid local concern in Hillsborough County about data center growth, including possible limits on using county drinking water for cooling and a potential moratorium on AI-focused facilities.
Tampa Electric filed a proposed large-load tariff with the Florida Public Service Commission on Sept. 30. Customers with expected peak demand of at least 50 megawatts would be required to pay for associated generation, transmission, storage and distribution upgrades, sign contracts of at least 20 years and provide financial guarantees or face penalties for early termination. The utility said the plan is intended to prevent existing ratepayers from subsidizing power-hungry projects such as data centers.
The filing anticipates major investments, including 600 megawatts each of energy storage and new generation connected to modernization plans at Big Bend Power Station. The commission must approve the tariffs, a process that could extend into early next year. Although no major data center proposal is currently under review in Hillsborough County, commissioners are discussing future regulations, including restrictions on county drinking water for cooling and a possible moratorium on AI-focused data centers in unincorporated areas.