TECO Energy Reports Third-Quarter Results

  TECO Energy Reports Third-Quarter Results

    TECO Energy reaffirms its earnings-per-share guidance from continuing
 operations for 2012 in a range between $1.10 and $1.20, excluding charges or
                                    gains

Business Wire

TAMPA, Fla. -- November 01, 2012

TECO Energy, Inc. (NYSE:TE) today reported third quarter 2012 net income of
$44.0 million, which included losses on the Guatemalan assets sold or held for
sale (see Discontinued Operations below), or $0.20 per share, compared with
$90.2 million, or $0.42 per share in the third quarter of 2011. Net income
from continuing operations was $90.2 million, or $0.42 per share, in the 2012
third quarter, compared with net income from continuing operations of $86.1
million, or $0.40 per share, for the same period in 2011. The 2012
third-quarter loss of $46.2 million reported in discontinued operations
reflected the operating results from TECO Guatemala, and the book loss,
transaction fees and the charge related to foreign tax credits as a result of
the sales agreements reported in September 2012.

The 2012 year-to-date net income was $167.6 million, or $0.78 per share,
compared with $219.4 million, or $1.02 per share, for the same period in 2011.
The 2012 year-to-date net income from continuing operations was $200.4
million, or $0.93 per share, compared with $203.5 million, or $0.95 per share,
for the same period in 2011. The 2012 year-to-date loss reported in
discontinued operations was $32.8 million.

TECO Energy President and Chief Executive Officer John Ramil said, “Our
operating results this quarter reflect an improving Florida economy and
outstanding cost control efforts by our team members at our utilities to
offset the ongoing unfavorable weather patterns, and TECO Coal’s team members
continue to deliver strong financial results in a weak coal market.

“Our agreement to sell the Guatemalan companies reflects our commitment to our
utility operations and to obtain good value for our non-utility businesses.
Faced with uncertainty in 2015, we took advantage of an attractive opportunity
and entered into agreements to sell the operations this year.”

Non-GAAP Results

There were no non-GAAP adjustments to net income in the third quarter or
year-to-date periods of 2012 or 2011, or the 12 months ended Sept. 30, 2012.

The table below compares the TECO Energy GAAP net income with the non-GAAP
measures used in this release for the 12-months-ended 2011 period. Non-GAAP
results exclude charges and gains contained in the Results Reconciliation
table later in this release. See the Non-GAAP Presentation section and Results
Reconciliation table later in this release for a reconciliation to GAAP
results and a discussion regarding this presentation of non-GAAP results and
management’s use of this information.

All amounts included in the non-GAAP discussion below are after tax, unless
otherwise noted.

Results Comparisons
                           3 months          9 months          12 months
                                                           
                           ended Sept. 30    ended Sept. 30    ended Sept. 30
(millions)                 2012    2011     2012    2011     2012    2011
Net income attributable    $44.0    $90.2    $167.6   $219.4   $220.8   $276.1
to TECO Energy
Discontinued operations
attributable to TECO       (46.2)   4.1      (32.8)   15.9     (26.9)   41.2
Energy
Net income from            $ 90.2   $ 86.1   $200.4   $203.5   $247.7   $234.9
continuing operations
Non-GAAP Results from      $ 90.2   $ 86.1   $200.4   $203.5   $247.7   $248.1
continuing operations

Segment Reporting

The table below includes TECO Energy segment information on a GAAP basis,
which includes all charges and gains for the periods shown.

Segment Information       3 months        9 months         12 months

(millions)                 ended Sept. 30   ended Sept. 30    ended Sept. 30
Net Income Summary         2012    2011    2012    2011     2012    2011
Tampa Electric             $73.5    $75.0   $156.9   $165.0   $194.7   $ 207.0
Peoples Gas System         7.0      4.8     27.0     25.4     34.2     32.8
TECO Coal                  17.4     14.1    39.4     38.1     52.7     45.3
Parent & other             (7.7)    (7.8)   (22.9)   (25.0)   (33.9)   (50.2)
Net income from            90.2     86.1    200.4    203.5    247.7    234.9
continuing operations
Discontinued operations
attributable to TECO       (46.2)   4.1     (32.8)   15.9     (26.9)   41.2
Energy
Total net income
attributable to TECO       $44.0    $90.2   $167.6   $219.4   $220.8   $ 276.1
Energy

All amounts included in the operating company discussions below are after tax,
unless otherwise noted.

Tampa Electric

Tampa Electric’s net income for the third quarter was $73.5 million, compared
with $75.0 million for the same period in 2011. Results for the quarter
reflected a 1.4% higher average number of customers, lower base revenues due
to milder weather, higher depreciation and operations and maintenance expenses
and lower interest expense.

Total degree days in Tampa Electric's service area in the third quarter of
2012 were normal, but 7% below the same period in 2011. Pretax base revenue
was approximately $4.0 million lower than in 2011, primarily reflecting rainy
summer weather patterns. Total net energy for load, which is a calendar
measurement of retail energy sales rather than a billing-cycle measurement,
decreased 1.6% in the third quarter of 2012 compared with the same period in
2011. The quarterly energy sales shown on the statistical summary that
accompanies this earnings release reflect the energy sales based on the timing
of billing cycles, which can vary period to period. The summer weather pattern
in the 2012 period reduced sales to residential and smaller commercial
customers. Energy sales to industrial-phosphate customers increased due to the
transfer of certain load from self-generation to Tampa Electric’s system.
Sales to other industrial customers increased due to improvements in the
Florida economy.

Operations and maintenance expense, excluding all Florida Public Service
Commission (FPSC)-approved cost-recovery clauses, increased $3.6 million in
2012, reflecting higher generating system maintenance expenses and higher
pension and other employee benefit expenses partially offset by lower bad-debt
expense. Depreciation and amortization expense increased $2.5 million in 2012
due to additions to facilities to serve customers.

Year-to-date net income was $156.9 million, compared with $165.0 million in
the 2011 period, driven primarily by lower energy sales due to milder weather,
partially offset by 1.2% higher average number of customers, and higher
depreciation and operations and maintenance expenses.

Year-to-date total degree days in Tampa Electric's service area were 3% above
normal, primarily in the lower-load spring period, but 4% below the prior
year-to-date period, reflecting mild winter weather and the rainy summer
weather pattern. Pretax base revenue was almost $11.0 million lower than in
2011, primarily reflecting lower sales to residential customers from the
milder weather and voluntary conservation that typically occurs during periods
without extreme weather.

In the 2012 year-to-date period, total net energy for load was 0.6% lower than
the same period in 2011. Milder weather reduced sales to higher-margin
residential and smaller commercial customers, while industrial-other sales
were higher,reflecting improvements in the Florida economy. Sales to
interruptible industrial-phosphate customers increased due to the factors
described above.

Year-to-date 2012 operations and maintenance expenses, excluding all
FPSC-approved cost-recovery clauses, increased $5.1 million reflecting higher
pension and other employee benefit expenses partially offset by lower bad-debt
expense. Compared to the 2011 year-to-date period, depreciation and
amortization expense increased $6.7 million, reflecting additions to
facilities to serve customers.

Peoples Gas

Peoples Gas System reported net income of $7.0 million for the quarter,
compared with $4.8 million recorded in the same period in 2011. Quarterly
results reflected customer growth of 1.3% and higher therm sales to
residential customers. Therms sold to commercial and interruptible industrial
customers increased due to improved economic conditions. Volumes for the
low-margin transportation service for electric power generators increased due
to low natural gas prices, which made it more economical to use natural gas
for power generation. Non-fuel operations and maintenance expense decreased
$1.5 million compared to the 2011 period, due in part to an insurance recovery
of legal expenses associated with environmental contamination claims, lower
pipeline integrity cost, and lower bad-debt expense.

Year-to-date net income was $27.0 million, compared with $25.4 million for the
same period in 2011. The 2012 results reflect customer growth of 1.1%, lower
sales to residential customers due to mild winter weather more than offset by
higher sales to commercial and industrial customers and power generation
customers as discussed above. Non-fuel operations and maintenance expense
decreased $3.1 million compared to the 2011 period, when operations and
maintenance expenses included $2.1 million related to legal expenses
associated with environmental contamination claims.

TECO Coal

TECO Coal reported third quarter net income of $17.4 million on sales of 1.9
million tons, compared with $14.1 million on sales of 2.1 million tons in the
same period in 2011.

In 2012, third quarter results reflect an average net per-ton selling price,
excluding transportation allowances, of more than $96 per ton, more than 7%
higher than in 2011. In the third quarter of 2012, the all-in total per-ton
cost of production was 3% higher than 2011 at approximately $84 per ton, which
is below the middle of the cost guidance range previously provided. The 2012
per-ton cost of production increase was driven by spreading fixed costs over
fewer tons. TECO Coal's effective income tax rate in the third quarter of 2012
was 26%, compared with 22% in the 2011 period.

TECO Coal recorded year-to-date net income of $39.4 million on sales of 4.9
million tons in 2012, compared with $38.1 million on sales of 6.2 million tons
in the 2011 period. Lower sales volumes in the 2012 year-to-date period
reflect the current coal market conditions. The 2012 year-to-date average net
per-ton selling price was more than $95 per ton, compared with almost $87 per
ton in 2011, and the all-in total per-ton cost of production was more than $85
per ton compared with $79 per ton in 2011. The 2012 year-to-date cost of
production reflects higher surface mining costs due to increased diesel fuel
usage as a result of trucking coal and overburden further due to the lack of
new surface-mine permits, spreading fixed costs over fewer tons, and costs
incurred in the first quarter associated with idling a section of a mine.
These factors were partially offset by reduced overtime and lower contract
miner costs in 2012. TECO Coal's effective income tax rate was 25%, compared
with 22% in the 2011 year-to-date period.

Parent & other

The cost for Parent & other in continuing operations in the third quarter of
2012 was $7.7 million, compared with a cost of $7.8 million in the same period
in 2011. The year-to-date Parent & other cost in continuing operations was
$22.9 million in 2012, compared with $25.0 million in the 2011 period. Results
for the 2012 quarter and year-to-date periods reflect tax items and lower
interest expense as a result of mid-year 2011 debt retirement.

The total cost for Parent & other for the third quarter of 2012 was $11.3
million, compared with $8.1 million for the 2011 period. The total cost for
Parent & other for the 2012 year-to-date period was $27.1 million, compared
with $25.5 million in the same period in 2011. Total cost for the 2012 quarter
and year-to-date periods reflect transaction costs and tax items related to
the TECO Guatemala transactions.

Discontinued Operations

On Sept. 27, 2012, TECO Energy announced that its international power
subsidiary, TECO Guatemala, entered into agreements to sell all of the equity
interests in the Alborada and San José power stations, and related solid fuel
handling and port facilities in Guatemala, for a total purchase price of
$227.5 million in cash. The sale of the Alborada Power Station closed on the
same date for a price of $12.5 million. As previously reported, under a
separate agreement, C.F. Financeco, Ltd. (“C.F. Financeco”) held certain
preferential rights to purchase ownership interests in the San José Power
Station and related port facilities. On Oct. 17, 2012, C.F. Financeco
exercised its preferential rights, and, as a result, on such date Guatemala
Holdings II entered into an equity purchase agreement with C.F. Financeco
pursuant to which it agreed to sell all of its ownership interests in the San
José Power Station and related facilities for $213.5 million, on the same
terms as contained in the original agreement.

The third quarter and year-to-date 2012 losses in discontinued operations of
$46.2 million and $32.8 million, respectively, reflect the results from
operations for the generating plants in Guatemala, a $31.2 million loss on
assets sold and held for sale including transaction costs, and a $22.6 million
charge associated with foreign tax credits.

2013 Business Factors

The factors that are expected to drive results in 2013 include continued
customer growth at the Florida utilities consistent with the trends
experienced through the first nine months of 2012, driven by continued
improvements in the state and Tampa-area economies. Tampa Electric has
experienced steady growth in the number of new customers since the fourth
quarter of 2009, and customer growth in 2012 has increased from 1.0% in the
first quarter to 1.4% in the third quarter.

At Tampa Electric, total retail energy sales growth is expected to average
about 0.5% lower than customer growth. Sales to the lower margin
industrial-phosphate customers are expected to be lower in 2013 due to
increased self-generation following outages of customers’ generating equipment
that increased sales to these customers in 2012. Peoples Gas expects to
benefit from continued interest from customers utilizing petroleum and other
fuel sources to convert to natural gas due to the attractive economics.

Tampa Electric has filed for the determination of need with the FPSC for the
conversion of the four simple-cycle combustion turbines at the Polk Power
Station to combined-cycle service (Docket number 120234-EI). Hearings are
scheduled for December 2012 with a final decision scheduled for January 2013.

TECO Coal has 2.5 million tons of thermal coal contracted for 2013 at prices
between $75 and $82 per ton. Total expected volume, selling price and cost of
production for 2013 will be determined at the conclusion of the metallurgical
coal contracting cycle, which is currently under way but proceeding more
slowly than in recent years. The general expectation in the current coal
market environment is that average prices for metallurgical and PCI coal will
be lower in 2013 than in 2012. TECO Coal will mine to profitably meet demand
for its products, which may result in fewer total tons being mined in 2013
than in 2012.

Non-GAAP Presentation

Management believes it is helpful to present a non-GAAP measure of performance
that reflects the ongoing operations of TECO Energy’s businesses and that
allows investors to better understand and evaluate the business as it is
expected to operate in future periods.

Management and the board of directors use non-GAAP measures as a yardstick for
measuring the company’s performance, for making decisions that are dependent
upon the profitability of the company’s various operating units, and for
determining levels of incentive compensation.

The non-GAAP measures of financial performance used by the company are not
measures of performance under accounting principles generally accepted in the
United States and should not be considered an alternative to net income or
other GAAP figures as an indicator of the company’s financial performance or
liquidity. TECO Energy’s non-GAAP presentation of net income may not be
comparable to similarly titled measures used by other companies.

The Results Reconciliation table below presents non-GAAP financial results
after elimination of the effects of certain identified charges and gains. This
provides investors additional information to assess the company’s results and
future earnings potential.

Results Reconciliation      3 months ended   9 months ended    12 months ended
                                                           
(millions)                  Sept. 30         Sept. 30          Sept 30
                            2012    2011    2012    2011     2012    2011
GAAP net income
attributable to TECO        $44.0    $90.2   $167.6   $219.4   $220.8   $276.1
Energy
Add parent debt             --       --      --       --       --       13.2
extinguishment cost
Total charges and gains     --       --      --       --       --       13.2
Add loss, or subtract net
income from discontinued    46.2     (4.1)   32.8     (15.9)   26.9     (41.2)
operations
Non-GAAP results from       $90.2    $86.1   $200.4   $203.5   $247.7   $248.1
continuing operations

(1) A non-GAAP financial measure is a numerical measure that includes or
excludes amounts, or is subject to adjustments that have the effect of
including or excluding amounts that are excluded or included from the most
directly comparable GAAP measure.

Webcast

As previously announced, TECO Energy will host a webcast with the investment
community to discuss its third-quarter results and preliminary 2013 business
factors at 9:00 am Eastern time, Thursday, Nov. 1, 2012. The webcast will be
accessible through the link on TECO Energy’s website: www.tecoenergy.com. The
webcast and accompanying slides will be available for replay for 30 days
through the website, beginning approximately two hours after the conclusion of
the live event.

TECO Energy, Inc. (NYSE: TE) is an energy-related holding company. Its
principal subsidiary, Tampa Electric Company, is a regulated utility in
Florida with both electric and gas divisions (Tampa Electric and Peoples Gas
System). Its other major subsidiary, TECO Coal, owns and operates coal
production facilities in Kentucky and Virginia.

Note: This press release contains forward-looking statements, which are
subject to the inherent uncertainties in predicting future results and
conditions. Actual results may differ materially from those forecasted. The
forecasted results are based on the company's current expectations and
assumptions, and the company does not undertake to update that information or
any other information contained in this press release, except as may be
required by law. Factors that could impact actual results include: regulatory
actions by federal, state or local authorities; unexpected capital needs or
unanticipated reductions in cash flow that affect liquidity; the ability to
access the capital and credit markets when required; the availability of
adequate rail transportation capacity for the shipment of TECO Coal's
production; general economic conditions affecting energy sales at the utility
companies; economic conditions, both national and international, affecting the
Florida economy and demand for TECO Coal's production; costs for alternative
fuels used for power generation affecting demand for TECO Coal’s thermal coal
production; weather variations and changes in customer energy usage patterns
affecting sales and operating costs at Tampa Electric and Peoples Gas and the
effect of extreme weather conditions or hurricanes; operating conditions;
commodity prices; operating cost and environmental or safety regulations
affecting the production levels and margins at TECO Coal; fuel cost recoveries
and related cash at Tampa Electric and natural gas demand at Peoples Gas;
material adverse changes impacting the ability to successfully close on the
remaining TECO Guatemala sales transaction; the ability to complete the
scheduled 2012 outage at the San José Power Station on time and on budget; and
the ability of TECO Energy's subsidiaries to operate equipment without undue
accidents, breakdowns or failures. Additional information is contained under
"Risk Factors" in TECO Energy, Inc.'s Annual Report on Form 10-K for the
period ended Dec. 31, 2011.

Summary Information (as of Sept. 30, 2012)
                  Three Months     Nine Months          Twelve Months

                   Ended             Ended                 Ended
(millions except
per share                                                         
amounts)
                   2012     2011     2012       2011       2012       2011
Revenues           $858.6   $877.8   $2,308.2   $2,489.8   $3,028.2   $3,236.2
Net income from
continuing         $90.2    $86.1    $200.4     $203.5     $247.7     $234.9
operations
Net income from
discontinued                                                     
operations
attributable to    (46.2)   4.1      (32.8)     15.9       26.9       41.2
TECO Energy
Net income
attributable to    $ 44.0   $90.2    $167.6     $219.4     $220.8     $276.1
TECO Energy
                                                                      
Earnings per
share from
continuing         $ 0.42   $0.40    $ 0.93     $0.95      $1.15      $1.10
operations-
basic
Earnings per
share from
discontinued                                                     
operations
attributable to    (0.22)   0.02     (0.15)     0.07       (0.12)     0.19
TECO Energy –
basic
Total earnings
per share
attributable to    $ 0.20   $0.42    $ 0.78     $1.02      $1.03      $1.29
TECO Energy –
basic
                                                                      
Total earnings
per share –        $0.20    $0.42    $0.78      $1.02      $1.03      $1.28
diluted
Average common
shares             214.5    213.8    214.2      213.5      214.1      213.3
outstanding –
basic
Average common
shares             215.4    215.3    215.3      215.1      215.3      215.0
outstanding –
diluted

                                 TECO ENERGY

                                SEPTEMBER 2012

Figures appearing in these statements are presented as general information and
not in connection with any sale or offer to sell or solicitation of an offer
to buy any securities, nor are they intended as a representation by the
company of the value of its securities. All figures reported are subject to
adjustments as the annual audit by independent accountants may determine to be
necessary and to the explanatory notes affecting income and balance sheet
accounts contained in the company’s Annual Report on Form 10-K. Reference
should also be made to information contained in that and other reports filed
by TECO Energy, Inc. and Tampa Electric Company with the Securities and
Exchange Commission. The attached financial statements include the results of
operations, financial position and cash flows for two power generation
projects in Guatemala, previously reflected as unconsolidated affiliates, that
were reconsolidated effective January 1, 2010 in accordance with new
accounting guidance.

TECO ENERGY, Inc.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(All significant intercompany transactions have been eliminated in the
consolidated financial statements.)
                                                          
                 Three Months      Nine Months Ended    Twelve Months Ended
                  Ended
                  Sep. 30,           Sep. 30,              Sep. 30,
(millions
except share     2012     2011    2012      2011      2012      2011
data)
                                                                  
Revenues
Regulated
electric and      $670.1    $685.5   $1,826.8   $1,929.1   $2,367.5   $2,522.6
gas
Unregulated      188.5    192.3   481.4     560.7     660.7     713.6
Total revenues   858.6    877.8   2,308.2   2,489.8   3,028.2   3,236.2
Expenses
Regulated
operations &
maintenance
Fuel              209.1     226.3    534.5      565.4      700.5      740.4
Purchased power   25.8      32.1     85.2       103.2      107.9      131.3
Cost of natural   40.5      41.5     118.5      177.6      151.2      225.6
gas sold
Other             115.4     107.9    342.2      331.4      447.7      453.6
Operation &
maintenance
other expense
Mining related    141.5     149.7    358.7      437.2      495.6      559.0
costs
Other             1.5       1.8      4.4        4.8        6.7        6.4
Depreciation
and               83.4      80.5     246.9      237.8      326.3      315.1
amortization
Taxes, other     58.3     56.7    170.8     170.1     224.4     221.6
than income
Total expenses   675.5    696.5   1,861.2   2,027.5   2,460.3   2,653.0
Income from      183.1    181.3   447.0     462.3     567.9     583.2
operations
Other income
(expense)
Allowance for
other funds       0.7       0.2      1.6        0.8        1.8        1.1
used during
construction
Other income      2.7       2.3      5.8        4.3        8.1        6.9
Loss on debt      0.0       0.0      0.0        0.0        0.0        (21.6)
extinguishment
Income from
equity           0.0      0.0     0.0       0.0       0.0       (1.1)
investments
Total other      3.4      2.5     7.4       5.1       9.9       (14.7)
income
Interest
charges
Interest          45.0      48.9     141.7      149.2      190.5      203.1
expense
Allowance for
borrowed funds   (0.4)    (0.1)   (0.9)     (0.4)     (1.1)     (0.6)
used during
construction
Total interest   44.6     48.8    140.8     148.8     189.4     202.5
charges
Income before
provision for     141.9     135.0    313.6      318.6      388.4      366.0
income taxes
Provision for    51.7     48.9    113.2     115.1     140.7     131.1
income taxes
Income from
continuing        90.2      86.1     200.4      203.5      247.7      234.9
operations
Discontinued
operations
Income (loss)
from              (27.4)    6.5      (7.9)      24.7       0.7        68.2
discontinued
operations
Provision for    18.7     2.3     24.6      8.6       27.3      26.7
income taxes
Total
discontinued      (46.1)    4.2      (32.5)     16.1       (26.6)     41.5
operations, net
Less: Income
from
discontinued
operations       (0.1)    (0.1)   (0.3)     (0.2)     (0.3)     (0.3)
attributable to
noncontrolling
interest
Income from
discontinued
operations       (46.2)   4.1     (32.8)    15.9      (26.9)    41.2
attributable to
TECO Energy,
net
Net income
attributable to  $44.0    $90.2   $167.6    $219.4    $220.8    $276.1
TECO Energy
                                                                      
                                                                      
Average common
shares
outstanding -     214.5     213.8    214.2      213.5      214.1      213.3
basic
(millions)
Average common
shares
outstanding -     215.4     215.3    215.3      215.1      215.3      215.0
diluted
(millions)
                                                                      
Earnings per
average common
share
outstanding:
Earnings per
share from
continuing        $0.42     $0.40    $0.93      $0.95      $1.15      $1.10
operations --
basic
Earnings per
share from
continuing        $0.42     $0.40    $0.93      $0.95      $1.15      $1.09
operations --
diluted
                                                                      
Earnings per
share from
discontinued      ($0.22)   $0.02    ($0.15)    $0.07      ($0.12)    $0.19
operations --
basic
Earnings per
share from
discontinued      ($0.22)   $0.02    ($0.15)    $0.07      ($0.12)    $0.19
operations --
diluted
                                                                      
Earnings per
share
attributable to   $0.20     $0.42    $0.78      $1.02      $1.03      $1.29
TECO Energy --
basic
Earnings per
share
attributable to   $0.20     $0.42    $0.78      $1.02      $1.03      $1.28
TECO Energy --
diluted

TECO ENERGY, Inc.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(All significant intercompany transactions have been eliminated in the
consolidated financial statements.)
                                                              
                                              Sep. 30,          Dec. 31,
(millions)                                    2012              2011
                                                                  
Assets
Current assets
Cash and cash equivalents                      $234.6             $44.0
Restricted cash                                8.9                8.7
Receivables                                    360.2              327.7
Inventories at average cost
Fuel                                           117.7              136.8
Materials and supplies                         81.6               87.3
Derivative assets                              2.0                0.9
Income tax receivables                         0.0                0.6
Deferred income taxes                          52.8               72.7
Prepayments and other current assets           34.2               31.9
Regulatory assets                              58.8               87.3
Assets held for sale                          59.0              0.0
Total current assets                          1,009.8           797.9
Property, plant and equipment
Utility plant in service
Electric                                       6,647.7            6,731.7
Gas                                            1,216.1            1,169.9
Construction work in progress                  299.3              247.4
Other property                                445.9             432.3
Property plant and equipment at original       8,609.0            8,581.3
cost
Accumulated depreciation                      (2,673.0)         (2,613.5)
Total property, plant and equipment, net      5,936.0           5,967.8
Other assets
Regulatory assets                              344.7              364.5
Goodwill                                       0.0                55.4
Derivative assets                              1.1                0.0
Deferred charges and other assets              125.3              136.6
Assets held for sale                          164.3             0.0
Total other assets                            635.4             556.5
Total assets                                  $7,581.2          $7,322.2
                                                                  
Liabilities and capital
Current liabilities
Long-term debt due within one year
Recourse                                       $147.1             $374.9
Non-recourse                                   0.0                11.2
Accounts payable                               253.6              252.3
Other current liabilities                      17.6               17.2
Customer deposits                              162.1              159.5
Derivative liabilities                         14.3               58.4
Interest accrued                               62.9               39.3
Taxes accrued                                  78.1               20.7
Regulatory liabilities                         102.2              86.2
Liabilities associated with assets held       27.7              0.0
for sale
Total current liabilities                     865.6             1,019.7
Other liabilities
Deferred income taxes                          241.6              150.8
Investment tax credits                         9.8                10.0
Regulatory liabilities                         642.5              619.4
Derivative liabilities                         1.0                8.6
Deferred credits and other liabilities         537.2              559.2
Liabilities associated with assets held        6.3                0.0
for sale
Long-term debt, less amount due within
one year
Recourse                                       2,981.0            2,665.0
Non-recourse                                  0.0               22.3
Total other liabilities                       4,419.4           4,035.3
Total liabilities                              5,285.0            5,055.0
Capital
Common equity                                  216.6              215.8
Additional paid in capital                     1,560.5            1,553.4
Retained earnings                              544.2              519.4
Accumulated other comprehensive (loss)        (25.1)            (22.0)
TECO Energy stockholders' equity               2,296.2            2,266.6
Noncontrolling interest                       0.0               0.6
Total capital                                 2,296.2           2,267.2
Total liabilities and capital                 $7,581.2          $7,322.2
                                                                  
Book Value Per Share                           $10.60             $10.50

TECO ENERGY, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(All significant intercompany transactions have been eliminated in the consolidated financial
statements.)
                                                                            
                  Three Months Ended         Nine Months Ended         Twelve Months Ended
                  Sep. 30,                   Sep. 30,                  Sep. 30,
(millions)       2012       2011       2012       2011       2012       2011     
                                                                                    
Cash flows from
operating
activities
Net income
attributable to   $ 44.0       $ 90.2        $ 167.6      $ 219.4      $ 220.8      $ 276.1
TECO Energy
                                                                                    
Adjustments to
reconcile net
income to net
cash from
operating
activities:
Depreciation
and                 86.0         82.4          253.2        243.4        334.4        322.5
amortization
Deferred income     51.8         48.5          115.2        117.5        143.7        143.9
taxes
Investment tax      (0.2   )     (0.1  )       (0.3   )     (0.3   )     (0.4   )     (0.4   )
credits
Allowance for
other funds         (0.7   )     (0.2  )       (1.6   )     (0.8   )     (1.8   )     (1.1   )
used during
construction
Non-cash stock      3.2          2.4           8.5          6.6          11.0         8.6
compensation
Loss (gain) on
sales of            14.6         (0.2  )       14.5         (0.5   )     14.5         (39.3  )
business /
assets, pretax
Noncash debt
extinguishment,     0.0          0.0           0.0          0.0          0.0          1.3
pretax
Equity in
earnings of
unconsolidated
affiliates, net     0.0          0.0           0.0          0.0          0.0          0.2
of cash
distributions
on earnings
Deferred            9.2          (2.7  )       (3.7   )     3.6          (16.3  )     14.1
recovery clause
Asset
impairment,         17.4         0.0           17.4         0.0          17.4         0.0
pretax
Receivables,
less allowance      (44.5  )     (7.4  )       (47.3  )     (9.4   )     (32.2  )     28.7
for
uncollectibles
Inventories         38.7         25.9          7.9          39.7         (8.3   )     26.7
Prepayments and
other current       8.5          (0.9  )       (3.1   )     (4.4   )     (1.5   )     (1.4   )
assets
Taxes accrued       27.4         12.9          58.7         35.2         17.8         1.6
Interest            20.1         18.6          23.6         23.2         0.7          (6.6   )
accrued
Accounts            48.9         7.7           22.0         (26.9  )     6.3          (12.7  )
payable
Other             (22.2  )   7.7       (25.0  )   25.3      (16.0  )   (19.2  )
                 302.2     284.8     607.6     671.6     690.1     743.0  
                                                                                    
Cash flows from
investing
activities
Capital             (114.3 )     (98.1 )       (355.2 )     (298.3 )     (511.0 )     (413.2 )
expenditures
Allowance for
other funds         0.7          0.2           1.6          0.8          1.8          1.1
used during
construction
Net proceeds
from sale of        7.4          0.5           7.4          3.4          7.5          185.2
business /
assets
Other             0.0       0.0       0.0       14.4      0.0       14.3   
investments
                 (106.2 )   (97.4 )    (346.2 )   (279.7 )   (501.7 )   (212.6 )
                                                                                    
Cash flows from
financing
activities
Dividends           (47.7  )     (46.4 )       (142.8 )     (136.8 )     (189.2 )     (180.8 )
Proceeds from
sale of common      0.0          1.2           3.2          6.6          3.6          8.8
stock
Proceeds from       248.0        0.0           538.3        0.0          538.3        117.7
long-term debt
Repayment of
long-term debt
/ Purchase in       (259.1 )     (6.2  )       (469.2 )     (150.8 )     (472.0 )     (434.3 )
lieu of
redemption
Dividend to
noncontrolling      0.0          0.0           (0.3   )     (0.6   )     (0.3   )     (0.6   )
interest
Net decrease in   (20.0  )   (32.0 )    0.0       (12.0  )   0.0       (27.0  )
short-term debt
                 (78.8  )   (83.4 )    (70.8  )   (293.6 )   (119.6 )   (516.2 )
                                                                                    
Net increase in
cash and cash       117.2        104.0         190.6        98.3         68.8         14.2
equivalents
Cash and cash
equivalents at    117.4     61.8      44.0      67.5      165.8     151.6  
beginning of
period
Cash and cash
equivalents at   $ 234.6    $ 165.8    $ 234.6    $ 165.8    $ 234.6    $ 165.8  
end of period

TECO ENERGY, Inc.
SEGMENT INFORMATION (Unaudited)
                                                                        
                                                                            
(millions)          Tampa       Peoples   TECO      TECO        Other &        TECO
                  Electric   Gas      Coal     Guatemala  Eliminations  Energy    
Three months ended
Sep. 30,
2012   Revenues -   $ 574.9     $ 95.2    $ 186.0   $ --        $  2.5         $ 858.6
       outsiders
       Sales to      0.3       --      --      --        (0.3   )    --      
       affiliates
       Total          575.2       95.2      186.0     --           2.2           858.6
       revenues
       Depreciation
       and            60.2        12.7      10.2      --           0.3           83.4
       amortization
       Total
       interest       26.7        3.7       1.9       --           12.3          44.6
       charges ^(2)
       Allocated
       interest       --          --        1.7       --           (1.7   )      --
       expense ^(2)
       Provision
       (Benefit)      45.7        4.4       6.0       --           (4.4   )      51.7
       for income
       taxes
       Income from
       continuing     73.5        7.0       17.4      --           (7.7   )      90.2
       operations
       Discontinued
       operations
       attributable   --          --        --        (42.6 )      (3.6   )      (46.2   )
       to TECO
       Energy, net
       of tax ^(3)
       Net income
       (loss)
      attributable $ 73.5     $ 7.0    $ 17.4   $ (42.6 )  $  (11.3  )   $ 44.0    
       to TECO
       Energy ^(1)
2011   Revenues -   $ 591.6     $ 93.9    $ 190.5   $ --        $  1.8           877.8
       outsiders
       Sales to      0.3       0.3     --      --        (0.6   )    --      
       affiliates
       Total          591.9       94.2      190.5     --           1.2           877.8
       revenues
       Depreciation
       and            56.2        12.2      11.8      --           0.3           80.5
       amortization
       Total
       interest       30.3        4.4       1.7       --           12.4          48.8
       charges ^(2)
       Allocated
       interest       --          --        1.7       --           (1.7   )      --
       expense ^(2)
       Provision
       (Benefit)      47.4        3.0       4.1       --           (5.6   )      48.9
       for income
       taxes
       Income from
       continuing     75.0        4.8       14.1      --           (7.8   )      86.1
       operations
       Discontinued
       operations
       attributable   --          --        --        4.4          (0.3   )      4.1
       to TECO
       Energy, net
       of tax ^(3)
       Net income
       (loss)
      attributable $ 75.0     $ 4.8    $ 14.1   $ 4.4     $  (8.1   )    90.2    
       to TECO
       Energy ^(1)
Nine months ended
Sep. 30,
2012   Revenues -   $ 1,527.8   $ 298.9   $ 474.1   $ --        $  7.4           2,308.2
       outsiders
       Sales to      0.8       1.3     --      --        (2.1   )    --      
       affiliates
       Total          1,528.6     300.2     474.1     --           5.3           2,308.2
       revenues
       Depreciation
       and            177.2       37.7      31.0      --           1.0           246.9
       amortization
       Total
       interest       86.2        12.6      5.5       --           36.5          140.8
       charges ^(2)
       Allocated
       interest       --          --        5.2       --           (5.2   )      --
       expense ^(2)
       Provision
       (Benefit)      96.5        17.0      13.2      --           (13.5  )      113.2
       for income
       taxes
       Income from
       continuing     156.9       27.0      39.4      --           (22.9  )      200.4
       operations
       Discontinued
       operations
       attributable   --          --        --        (28.6 )      (4.2   )      (32.8   )
       to TECO
       Energy, net
       of tax ^(3)
       Net income
       (loss)
      attributable $ 156.9    $ 27.0   $ 39.4   $ (28.6 )  $  (27.1  )   $ 167.6   
       to TECO
       Energy ^(1)
2011   Revenues -   $ 1,570.6   $ 358.5   $ 555.5   $ --        $  5.2           2,489.8
       outsiders
       Sales to      1.0       3.0     --      --        (4.0   )    --      
       affiliates
       Total          1,571.6     361.5     555.5     --           1.2           2,489.8
       revenues
       Depreciation
       and            166.4       36.0      34.4      --           1.0           237.8
       amortization
       Total
       interest       91.6        13.3      5.1       --           38.8          148.8
       charges ^(2)
       Allocated
       interest       --          --        5.0       --           (5.0   )      --
       expense ^(2)
       Provision
       (Benefit)      104.3       16.0      10.7      --           (15.9  )      115.1
       for income
       taxes
       Income from
       continuing     165.0       25.4      38.1      --           (25.0  )      203.5
       operations
       Discontinued
       operations
       attributable   --          --        --        16.4         (0.5   )      15.9
       to TECO
       Energy, net
       of tax ^(3)
       Net income
       (loss)
      attributable $ 165.0    $ 25.4   $ 38.1   $ 16.4    $  (25.5  )    219.4   
       to TECO
       Energy ^(1)
Twelve months ended
Sep. 30,
2012   Revenues -   $ 1,976.5   $ 390.9   $ 651.5   $ --        $  9.3         $ 3,028.2
       outsiders
       Sales to      1.0       1.4     --      --        (2.4   )    --      
       affiliates
       Total          1,977.5     392.3     651.5     --           6.9           3,028.2
       revenues
       Depreciation
       and            233.0       50.1      41.8      --           1.4           326.3
       amortization
       Total
       interest       116.4       17.0      7.2       --           48.8          189.4
       charges ^(2)
       Allocated
       interest       --          --        6.9       --           (6.9   )      --
       expense ^(2)
       Provision
       (Benefit)      116.8       21.5      17.9      --           (15.5  )      140.7
       for income
       taxes
       Income from
       continuing     194.7       34.2      52.7      --           (33.9  )      247.7
       operations
       Discontinued
       operations
       attributable   --          --        --        (22.6 )      (4.3   )      (26.9   )
       to TECO
       Energy, net
       of tax ^(3)
       Net income
       (loss)
      attributable $ 194.7    $ 34.2   $ 52.7   $ (22.6 )  $  (38.2  )   $ 220.8   
       to TECO
       Energy ^(1)
2011   Revenues -   $ 2,061.7   $ 460.9   $ 707.7   $ --        $  5.9         $ 3,236.2
       outsiders
       Sales to      1.3       4.8     --      --        (6.1   )    --      
       affiliates
       Total          2,063.0     465.7     707.7     --           (0.2   )      3,236.2
       revenues
       Depreciation
       and            221.2       47.6      45.2      --           1.1           315.1
       amortization
       Total
       interest       122.4       17.9      6.8       --           55.4          202.5
       charges ^(2)
       Allocated
       interest       --          --        6.6       --           (6.6   )      --
       expense ^(2)
       Provision
       (Benefit)      128.3       20.4      13.3      --           (30.9  )      131.1
       for income
       taxes
       Income from
       continuing     207.0       32.8      45.3      --           (50.2  )      234.9
       operations
       Discontinued
       operations
       attributable   --          --        --        49.5         (8.3   )      41.2
       to TECO
       Energy, net
       of tax ^(3)
       Net income
       (loss)
      attributable $ 207.0    $ 32.8   $ 45.3   $ 49.5    $  (58.5  )   $ 276.1   
       to TECO
       Energy ^(1)
                                                                                         
(1)   Results are based on GAAP net income. For a complete reconciliation between GAAP
       and non-GAAP items, see Results Reconciliation in Earnings Release.
       Segment net income is reported on a basis that includes internally allocated
(2)   financing costs. Internally allocated costs were at pretax rates of 6.00% for
       January 2012 through September 2012, 6.25% for 2011, and 6.50% for October through
       Dec. 2010.
       All periods have been adjusted to reflect the reclassification of results from
(3)   operations to discontinued operations for TECO Guatemala and certain charges at
       Parent that directly relate to TECO Guatemala.

TAMPA ELECTRIC COMPANY
ELECTRIC OPERATING STATISTICS (Unaudited)
                                                                       
             Operating Revenues*                      Sales --                
                                                         Kilowatt-hours*
Three
Months                                       Percent                             Percent
Ended Sep.
30,
            2012          2011          Change    2012        2011        Change
                                                                                   
Residential   $ 301,605       $ 313,182       (3.7   )   2,641,862    2,746,940    (3.8  )
Commercial      170,355         172,175       (1.1   )   1,748,180    1,777,591    (1.7  )
Industrial
--              19,239          15,420        24.8       232,497      181,960      27.8
Phosphate
Industrial      26,429          26,043        1.5        285,076      282,623      0.9
-- Other
Other sales
of              49,290          49,660        (0.7   )   496,041      503,308      (1.4  )
electricity
                                                                       
                566,918         576,480       (1.7   )   5,403,656    5,492,422    (1.6  )
                                                                                   
Deferred
and other       (13,341   )     (4,022    )   231.7      --           --           --
revenues
Provision
for Revenue     --              --            --         --           --           --
Stipulation
Sales for       6,239           5,867         6.3        99,177       89,834       10.4
resale
Other
operating       15,372          13,577        13.2       --           --           --
revenue
SO[2]
Allowance       --              --            --         --           --           --
Sales
NOx
Allowance     --           --          --       --          --          --    
Sales
            $ 575,188     $ 591,902     (2.8   )  5,502,833   5,582,256   (1.4  )
                                                                                   
Average       685,481      676,151     1.4      --          --          --    
customers
                                                                                   
Retail Net
Energy For                                        5,646,699   5,740,027   (1.6  )
Load
                                                                                   
Total                                             1,638       1,753       (6.6  )
Degree Days
                                                                                   
                                                                       
              Operating Revenues*                        Sales --
                                                         Kilowatt-hours*
Nine Months
Ended Sep.                                    Percent                              Percent
30,
            2012          2011          Change    2012        2011        Change
                                                                                   
Residential   $ 747,557       $ 788,371       (5.2   )   6,546,487    6,913,919    (5.3  )
Commercial      467,055         465,936       0.2        4,730,031    4,738,588    (0.2  )
Industrial
--              56,422          46,459        21.4       680,968      548,506      24.1
Phosphate
Industrial      76,815          74,678        2.9        828,215      808,511      2.4
-- Other
Other sales
of              137,968         139,444       (1.1   )   1,370,473    1,386,174    (1.1  )
electricity
                                                                        
                1,485,817       1,514,888     (1.9   )   14,156,174   14,395,698   (1.7  )
                                                                                   
Deferred
and other       (12,855   )     (1,921    )   569.2      --           --           --
revenues
Provision
for Revenue     --              --            --         --           --           --
Stipulation
Sales for       12,896          18,348        (29.7  )   216,684      279,845      (22.6 )
resale
Other
operating       42,719          40,286        6.0        --           --           --
revenue
SO[2]
Allowance       1               4             (75.0  )   --           --           --
Sales
NOx
Allowance     --           37          (100.0 )  --          --          --    
Sales
            $ 1,528,578   $ 1,571,642   (2.7   )  14,372,858  14,675,543  (2.1  )
                                                                                   
Average       683,437      675,261     1.2      --          --          --    
customers
                                                                                   
Retail Net
Energy For                                        14,946,395  15,044,110  (0.6  )
Load
                                                                                   
Total                                             3,532       3,669       (3.7  )
Degree Days
                                                                                   
                                                                       
              Operating Revenues*                        Sales --
                                                         Kilowatt-hours*
Twelve
Months                                        Percent                              Percent
Ended Sep.
30,
            2012          2011          Change    2012        2011        Change
                                                                                   
Residential   $ 953,933       $ 1,015,358     (6.0   )   8,350,559    8,904,921    (6.2  )
Commercial      613,716         616,240       (0.4   )   6,198,005    6,232,716    (0.6  )
Industrial
--              71,931          65,771        9.4        863,690      775,382      11.4
Phosphate
Industrial      101,425         98,726        2.7        1,092,178    1,062,443    2.8
-- Other
Other sales
of              183,723         185,407       (0.9   )   1,819,613    1,830,865    (0.6  )
electricity
                                                                       
                1,924,728       1,981,502     (2.9   )   18,324,045   18,806,327   (2.6  )
                                                                                   
Deferred
and other       (21,226   )     (20,809   )   2.0        --           --           --
revenues
Provision
for Revenue     --              20,992        (100.0 )   --           --           --
Stipulation
Sales for       16,227          26,930        (39.7  )   289,699      395,137      (26.7 )
resale
Other
operating       57,813          54,331        6.4        --           --           --
revenue
SO[2]
Allowance       1               4             (75.0  )   --           --           --
Sales
NOx
Allowance     --           37          (100.0 )  --          --          --    
Sales
            $ 1,977,543   $ 2,062,987   (4.1   )  18,613,744  19,201,464  (3.1  )
                                                                                   
Average       681,930      674,458     1.1      --          --          --    
customers
                                                                                   
Retail Net
Energy For                                        19,107,458  19,643,267  (2.7  )
Load
                                                                                   
Total                                             4,161       4,570       (8.9  )
Degree Days
                                                                                   
* in
thousands

PEOPLES GAS SYSTEM
GAS OPERATING STATISTICS (Unaudited)
                                                               
                Operating Revenues*             Therms*               
Three Months                            Percent                          Percent
Ended Sep. 30,
               2012       2011       Change   2012       2011       Change
                                                                           
By Customer
Segment:
Residential      $ 24,532    $ 24,695    (0.7  )   10,943      10,124      8.1
Commercial         29,890      28,297    5.6       94,826      87,842      8.0
Industrial         2,367       1,943     21.8      55,530      46,151      20.3
Off System         26,005      26,618    (2.3  )   72,976      55,877      30.6
Sales
Power              2,935       2,708     8.4       247,139     176,981     39.6
generation
Other revenues   7,511     7,712    (2.6  )  --         --         --    
               $ 93,240   $ 91,973   1.4     481,414    376,975    27.7  
                                                                           
By Sales Type:
System supply    $ 60,993    $ 61,685    (1.1  )   93,163      75,023      24.2
Transportation     24,736      22,576    9.6       388,251     301,952     28.6
Other revenues   7,511     7,712    (2.6  )  --         --         --    
               $ 93,240   $ 91,973   1.4     481,414    376,975    27.7  
                                                                           
Average          342,721   338,224  1.3     --         --         --    
customers
                                                                           
                                                                           
                                                               
                 Operating Revenues*               Therms*
Nine Months                              Percent                           Percent
Ended Sep. 30,
               2012       2011       Change   2012       2011       Change
                                                                           
By Customer
Segment:
Residential      $ 93,424    $ 109,390   (14.6 )   51,977      59,859      (13.2 )
Commercial         100,609     105,677   (4.8  )   313,664     305,262     2.8
Industrial         6,969       6,523     6.8       168,851     151,212     11.7
Off System         58,124      93,724    (38.0 )   183,243     198,392     (7.6  )
Sales
Power              9,643       8,185     17.8      730,555     472,943     54.5
generation
Other revenues   25,574    30,525   (16.2 )  --         --         --    
               $ 294,343  $ 354,024  (16.9 )  1,448,290  1,187,668  21.9  
                                                                           
By Sales Type:
System supply    $ 187,916   $ 247,842   (24.2 )   265,059     292,764     (9.5  )
Transportation     80,853      75,657    6.9       1,183,231   894,904     32.2
Other revenues   25,574    30,525   (16.2 )  --         --         --    
               $ 294,343  $ 354,024  (16.9 )  1,448,290  1,187,668  21.9  
                                                                           
Average          342,622   338,763  1.1     --         --         --    
customers
                                                                           
                                                                           
                                                               
                 Operating Revenues*               Therms*
Twelve Months                            Percent                           Percent
Ended Sep. 30,
               2012       2011       Change   2012       2011       Change
                                                                           
By Customer
Segment:
Residential      $ 124,822   $ 144,302   (13.5 )   69,793      80,677      (13.5 )
Commercial         132,918     137,774   (3.5  )   417,673     406,196     2.8
Industrial         9,278       8,469     9.6       222,720     199,058     11.9
Off System         70,374      119,513   (41.1 )   215,843     258,804     (16.6 )
Sales
Power              12,087      10,357    16.7      871,915     602,330     44.8
generation
Other revenues   34,926    36,406   (4.1  )  --         --         --    
               $ 384,405  $ 456,821  (15.9 )  1,797,944  1,547,065  16.2  
                                                                           
By Sales Type:
System supply    $ 242,789   $ 320,281   (24.2 )   325,601     384,592     (15.3 )
Transportation     106,690     100,134   6.5       1,472,343   1,162,473   26.7
Other revenues   34,926    36,406   (4.1  )  --         --         --    
               $ 384,405  $ 456,821  (15.9 )  1,797,944  1,547,065  16.2  
                                                                           
Average          341,733   337,911  1.1     --         --         --    
customers
                                                                           
* in thousands

Contact:

TECO Energy, Inc.
News Media:
Cherie Jacobs, 813-228-4945
or
Investor Relations:
Mark Kane, 813-228-1772
Internet: http://www.tecoenergy.com
 
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