A 5.5% hike is strong TECO Energy Inc.’s (TE) unit Tampa Electric Company has received approval from the Florida Public Service Commission to increase the monthly rates of the residential electricity customers. The company filed its rate-hike request to the commission on Apr 5. The revised rate will be applicable from Nov 2013.
Currently, the residential customers, consuming electricity of 1,000 kilowatt-hours (kwh) per month, pay a monthly bill of $102.58. As per the commission’s approval, the new rate will be $108.25, up 5.5% from the previous rate.
For some reason Fidelity has TE rated with a Very Bullish rating. The market has been punishing it along with other utilities recently. TE at this price has a high dividend (5.4%) compared to its peers. Also, down 2.6% YTD which is not too bad, but down is down. Hopefully the rate increase will give TE some cushion for their service territory requirements and maintain the dividend. February is around the corner and I expect .88 to remain the same, however their payout is 105% and a cut could occur. Hoping it is not another EXC/GXP. GL