SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
April 20, 1995
TAMPA ELECTRIC COMPANY
(Exact name of registrant as specified in its charter)
FLORIDA 1-5007 59-0475140
(State or other jurisdiction (Commission file (IRS Employer
of incorporation) Number) Identification No.)
702 North Franklin Street, Tampa Florida 33602
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (813) 228-4111
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Item 5. Other Events
See the Press Release dated April 21, 1995, filed as Exhibit 99.1 and
incorporated herein by reference, describing a recommendation by the Staff
of the Florida Public Service Commission for proposed agency action
relating to a change in the registrant's authorized rate of return on
common equity, the deferral of revenues under certain circumstances and the
elimination of the oil backout tariff.
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Item 7. Financial Statements and Exhibits
(c) Exhibits
99.1 Press Release dated April 21, 1995.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
Dated: April 21, 1995 Tampa Electric Company
By:/s/ A. D. Oak
A. D. Oak
Vice President, Treasurer and
Chief Financial Officer
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INDEX TO EXHIBITS
Exhibit No. Description of Exhibits Page No.
99.1 Press Release dated April 21, 1995 6
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Exhibit 99.1
(Tampa Electric Company letterhead)
Contact: Mike Mahoney
Office: 813/228-4271
Home: 813/961-9456
TAMPA ELECTRIC, PSC STAFF RECOMMEND NEW PLAN TO HOLD DOWN ELECTRIC
PRICES FOR CUSTOMERS
TAMPA, April 21, 1995 -- Tampa Electric Company today announced
that the staff of the Florida Public Service Commission (FPSC) has
recommended approval of a plan proposed by Tampa Electric which, if
adopted, would help hold down electric prices for customers in the
year the Polk Power Station comes into service.
Said President Keith Surgenor, "We are pleased to have reached
agreement with the staff on this recommendation. We've said all along
our goal has been to keep electric prices as stable as possible while
moving forward with construction on our new state-of-the-art power
plant in Polk County."
Surgenor noted the company is making good progress in reducing
long-term operating costs in order to offset the impact of the new
plant's construction costs. "Those efforts already have begun to pay
off," said Surgenor, "and we still plan to bring our new Polk unit on-
line, on time and on-budget."
Under the staff's recommendation, the Commission would increase
Tampa Electric's authorized rate of return on common equity and the
company would defer some revenues under financial circumstances
relating to these returns. That would then allow Tampa Electric to
minimize the price effects of its new power plant expected to be in
service in the fall of 1996.
-more-
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Exhibit 99.1
Tampa Electric --2
Said Surgenor, "By deferring a portion of our revenues today and
crediting them two years later, we can help offset the likely price
increase that typically occurs when a new power plant goes on line."
The recommendation calls for Tampa Electric's authorized rate of
return on common equity for all regulatory purposes to be established
at a new midpoint of 11.75 percent with a range of 10.75 percent to
12.75 percent, effective Jan. 1, 1995. The present midpoint is 11.35
percent, with a range of 10.35 percent to 12.35 percent.
For 1995, Tampa Electric would defer until 1997 revenues of $15
million, as well as 50 percent of those revenues contributing to a
range of return on equity of 11.75 percent to 12.75 percent, and 100
percent of revenues contributing to a return on equity exceeding 12.75
percent. In 1997, the deferred revenues would be credited against
Tampa Electric's revenue requirements determined in a regulatory
proceeding.
The deferred revenues would accrue interest at the thirty-day
commercial paper rate as specified in the Florida Administrative Code,
and the Commission would have full jurisdiction over all revenues
deferred by Tampa Electric. Customers also will benefit under the
recommendation from elimination of the oil backout tariff effective
Jan. 1, 1996. This is expected to reduce customer bills in 1996 by as
much as $12 million.
The recommendation is scheduled for Commission review on May 2 in
a proposed agency action proceeding.
Tampa Electric is a regulated public utility serving over 490,000
customers in a 2,000 square mile service area in west central Florida.
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