Tampa Electric just increased their power factor penalty rate from $1.20 to $2.10 per kVAR on Schedule GSD-1. Effective January 2023. Huge impact on my clients. Anyone else seeing this?
TECO power factor penalty rate change
Yeah, got hit with the same increase. My Daytona client's penalty went from $800/month to $1,400/month overnight. TECO justified it as "cost recovery for grid inefficiencies." PSC approved it last November.
This makes power factor correction equipment even more attractive. Payback periods just got cut in half. I'm calling all my Florida clients with PF issues.
Exactly Beth. Client who was on the fence about $25K capacitor installation is now moving forward immediately. ROI went from 18 months to 9 months.
Update: Three clients have now installed correction equipment since the rate increase. Total combined penalty savings will be $4,800/month. Rate increases can be opportunities too.