TECO Energy Reports Fourth-Quarter Results

  TECO Energy Reports Fourth-Quarter Results

 Company Provides 2013 Earnings-Per-Share Guidance from Continuing Operations
                      in a Range between $0.90 and $1.00

Business Wire

TAMPA, Fla. -- February 5, 2013

TECO Energy, Inc. (NYSE:TE) today reported fourth quarter 2012 net income of
$45.1 million, or $0.21 per share, compared with $53.2 million, or $0.25 per
share in the fourth quarter of 2011. Net income from continuing operations was
$45.6 million, or $0.21 per share, in the 2012 fourth quarter, compared with
$47.3 million, or $0.22 per share, for the same period in 2011. The 2012
fourth-quarter loss of $0.5 million reported in discontinued operations
reflected the operating results from TECO Guatemala, and the closing of the
sale in December 2012 (see Discontinued Operations below).

The 2012 full-year net income was $212.7 million, or $0.99 per share, compared
with $272.6 million, or $1.27 per share, in 2011. The 2012 full-year net
income from continuing operations was $246.0 million, or $1.14 per share,
compared with $250.8 million, or $1.17 per share, in 2011. The 2012 full-year
loss reported in discontinued operations was $33.3 million, or $0.15 per
share, compared with net income of $21.8 million, or $0.10 per share, in 2011.

TECO Energy President and Chief Executive Officer John Ramil said, “Our
operating results this quarter reflect stronger customer growth but another
mild start to the winter at our Florida utilities. We are very pleased that
the Florida Public Service Commission unanimously approved the need for our
Polk expansion project in December. TECO Coal reported strong results on lower
volumes and was proactive in reducing production and cost and was able to
deliver good 2012 results even in a weak market.

“Our sale of the Guatemalan companies reflects our commitment to our core
utility operations. We took advantage of an attractive opportunity to obtain
good value and closed on the sale of those operations in December.”

Ramil went on to say, “Looking ahead to 2013, it will be a transitioning and
challenging year for TECO Energy. While our team members have instituted cost
controls and efficiency measures allowing Tampa Electric to operate in 2012 at
2007 cost levels, continued investment in required infrastructure, a slow
economic recovery and mounting operations and maintenance cost pressures will
cause Tampa Electric to earn below the bottom of its allowed return on equity
range. As a result, Tampa Electric will be filing in the spring for a base
rate increase that is estimated at approximately $135 million for new rates in
early 2014. We expect Peoples Gas to continue to benefit from low natural gas
prices and customer growth from a slowly improving economy. And although TECO
Coal will reduce production again in 2013, at the middle of our cost and
production guidance ranges it is positioned to produce $12 million of net
income in 2013 in the current weak coal market.”

Non-GAAP Results

There were no non-GAAP adjustments to net income in the fourth quarter or
full-year periods of 2012 or 2011.

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               12 months
                                                       
(millions)                        ended Dec. 31          ended Dec. 31
Net Income Summary                2012      2011        2012       2011
Tampa Electric                    $ 36.2     $ 37.7      $ 193.1     $ 202.7
Peoples Gas System                  7.1        7.2         34.1        32.6
TECO Coal                           10.8       13.4        50.2        51.5
Parent & other                     (8.5 )    (11.0 )    (31.4 )    (36.0 )
Net income from continuing          45.6       47.3        246.0       250.8
operations
Discontinued operations            (0.5 )    5.9       (33.3 )    21.8  
Total net income attributable     $ 45.1    $ 53.2     $ 212.7    $ 272.6 
to TECO 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 fourth quarter was $36.2 million, compared
with $37.7 million for the same period in 2011. Results for the quarter
reflected a 1.4% higher average number of customers, higher base revenues due
to weather that was slightly better than in 2011, and lower interest expense,
more than offset by higher depreciation and operations and maintenance
expenses. Fourth quarter net income in 2012 included $1.0 million of Allowance
for Funds Used During Construction (AFUDC) equity, which represents allowed
equity cost capitalized to construction costs, compared with $0.2 million in
the 2011 quarter.

Total degree days in Tampa Electric's service area in the fourth quarter of
2012 were 14% below normal, but 5% above the same period in 2011, resulting in
pretax base revenue approximately $5.0 million higher than in 2011. Total net
energy for load, which is a calendar measurement of retail energy sales rather
than a billing-cycle measurement, increased 3.5% in the fourth 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 increased number of residential customers drove higher sales to those
customers in the quarter. Energy sales to industrial-phosphate customers
increased due to the transfer of certain load from self-generation to Tampa
Electric’s system.

Operations and maintenance expense, excluding all Florida Public Service
Commission (FPSC)-approved cost-recovery clauses, increased $6.7 million in
the 2012 quarter, reflecting higher generating system maintenance expenses,
higher costs to operate and maintain the distribution system and higher
pension and other employee benefit expenses, partially offset by lower
bad-debt expense. Depreciation and amortization expense increased $2.9 million
in 2012 due to additions to facilities to serve customers. Interest expense
decreased $4.1 million due to lower long-term debt interest rates and balances
and a lower interest rate on customer deposits.

Full-year net income was $193.1 million, compared with $202.7 million in 2011,
driven primarily by lower energy sales and higher depreciation and operations
and maintenance expenses, partially offset by 1.2% higher average number of
customers, and lower interest expense. Net income in 2012 included $2.6
million of AFUDC equity, compared with $1.0 million in 2011.

Full-year total degree days in Tampa Electric's service area were normal, and
almost 3% below the prior year full-year period, reflecting mild winter
weather and the unusually rainy summer weather pattern offset by higher than
normal degree days in the normally mild spring and fall periods, which do not
generate significantly higher energy sales. Pretax base revenue was almost
$6.0 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 and changes in
customer usage patterns.

In the 2012 full-year period, total net energy for load was 0.3% higher 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 same factors
as described for the quarter above.

Full-year 2012 operations and maintenance expenses, excluding all
FPSC-approved cost-recovery clauses, increased $11.8 million reflecting the
items discussed above. Compared to the 2011 full-year period, depreciation and
amortization expense increased $9.6 million, reflecting additions to
facilities to serve customers. Interest expense decreased $7.4 million due to
the reasons discussed above.

Peoples Gas

Peoples Gas System reported net income of $7.1 million for the quarter,
compared with $7.2 million recorded in 2011. Quarterly results reflected
customer growth of 1.4% and higher therm sales to all customer classes. Therms
sold to commercial and interruptible industrial customers increased due to
improving 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 increased $1.0 million compared to
the 2011 period, due to higher pipeline awareness and benefit expenses
partially offset by lower bad-debt expense. Interest expense decreased
slightly due to lower long-term debt interest rates and balances and a lower
interest rate on customer deposits.

Full-year net income was $34.1 million, compared with $32.6 million in 2011.
The 2012 results reflect customer growth of 1.2%, 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 $2.1
million, compared with 2011, due in part to an insurance recovery of legal
expenses associated with environmental-contamination claims. In 2011,
operations and maintenance expenses included $2.5 million related to legal
expenses associated with environmental-contamination claims. Interest expense
decreased $1.0 million due to the reasons discussed above. Depreciation
expense increased $1.4 million reflecting additions to facilities to serve
customers.

TECO Coal

TECO Coal reported fourth quarter net income of $10.8 million on sales of 1.4
million tons, compared with $13.4 million on sales of 1.9 million tons in the
same period in 2011.

In 2012, fourth quarter results reflect an average net per-ton selling price,
excluding transportation allowances, of almost $95 per ton. In the fourth
quarter of 2012, the all-in total per-ton cost of sales was more than $85,
3.3% higher than in the 2011 period. The 2012 per-ton cost of sales increase
was driven by spreading fixed costs over fewer tons and included costs
associated with personnel reductions and with idling certain mining
operations. TECO Coal's effective income tax rate in the fourth quarter of
2012 was 19%, compared with 26% in the 2011 period.

TECO Coal recorded full-year net income of $50.2 million on sales of 6.3
million tons in 2012, compared with $51.5 million on sales of 8.1 million tons
in 2011. Lower sales volumes in the 2012 full-year period reflect the current
coal market conditions. The 2012 full-year average net per-ton selling price
was more than $95 per ton, compared with almost $88 per ton in 2011, and the
all-in total per-ton cost of sales was more than $85 per ton compared with
almost $80 per ton in 2011. The 2012 full-year cost of sales reflects
spreading fixed costs over fewer tons, and costs associated with personnel
reductions and with idling certain mining operations. TECO Coal's effective
income tax rate was 24%, compared with 23% in the 2011 full-year period.

Parent & other

The cost for Parent & other in continuing operations in the fourth quarter of
2012 was $8.5 million, compared with a cost of $11.0 million in the same
period in 2011. Results for the quarter include a charge of $0.8 million
associated with the early retirement of the remaining $8.8 million of TECO
Energy parent debt. The 2011 quarter included certain tax adjustments recorded
at Parent. The full-year Parent & other cost in continuing operations was
$31.4 million in 2012, compared with $36.0 million in 2011. Results for the
2012 quarter and full-year periods reflect tax items and lower interest
expense as a result of the mid-year 2011 debt retirement.

The total cost for Parent & other for the fourth quarter of 2012 was $8.3
million, compared with $11.1 million for the 2011 period. The total cost for
Parent & other for the 2012 full-year period was $35.4 million, compared with
$36.6 million in the same period in 2011. Total cost for the 2012 fourth
quarter and full-year periods includes transaction costs and tax items
recorded at Parent related to the TECO Guatemala discontinued operations.

Discontinued Operations

On Sept. 28, 2012, TECO Energy announced that its international power
subsidiary, TECO Guatemala, entered into agreements to sell all of its 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. On Dec. 19, 2012, the sale closed on
the San José Power Station and related facilities and operations for a
purchase price of $215.0 million.

The fourth quarter and full-year 2012 losses in discontinued operations of
$0.5 million and $33.3 million, respectively, reflect the results from
operations for the generating plants in Guatemala through the closing of the
sales, a $28.6 million loss on assets sold including transaction costs, and a
$22.9 million charge associated with foreign tax credits.

2013 Guidance

TECO Energy expects earnings per share in 2013 to be in a range between $0.90
and $1.00, excluding any unusual charges and gains. TECO Energy expects
earnings in 2013 to be driven by the factors discussed below.

Tampa Electric has experienced steady growth in the number of new customers
since the fourth quarter of 2009, and customer growth in 2012 increased from
1.0% in the first quarter to 1.4% in the fourth quarter. Customer growth of
1.2% is anticipated in 2013, but total retail energy sales growth is expected
to be lower than customer growth due to lower average customer usage. 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. After
three years of virtually unchanged operations and maintenance expense, those
costs are expected to increase in 2013 due to increased expenses to operate
the system and reliably serve customers and higher employee-related expenses,
including pension expense driven by discount rate assumptions in the current
low interest rate environment. In 2013, Tampa Electric expects to earn below
the bottom of its allowed return on equity (ROE) range of 10.25% to 12.25%.

As a result of the increasing pressure on operations and maintenance expense,
higher depreciation expense from investment in infrastructure required to
serve customers, and the economic recovery that has been slower than expected
compared to the assumptions in Tampa Electric’s last base rate proceeding, on
Feb. 4, 2013, Tampa Electric notified the FPSC that it is planning to file a
new base rate proceeding in April for new rates effective in early 2014. The
actual revenue requirement calculation is not final, but is estimated to be
approximately $135 million.

Peoples Gas expects to continue to earn above the middle of its allowed ROE
range of 9.75% to 11.75% from moderate customer growth, which is expected to
continue in 2013 in line with the trends experienced in 2012, and continued
focus on cost management. It also expects to benefit from continued interest
from customers utilizing petroleum and other fuel sources to convert to
natural gas due to the attractive economics.

TECO Coal has 90% of its expected sales of between 5.2 and 5.7 million tons
contracted for 2013. The product mix is expected to be about 50% specialty
coals, which include stoker, metallurgical and PCI coals, and the remainder
utility steam coal. The average selling price across all products is expected
to be more than $86 per ton. All of the 2.7 million tons of steam coal sales
planned for 2013 are committed and priced. The all-in total cost of production
is expected to be below 2012 levels in a range between $81 and $85 per ton due
to actions taken in 2012 to reduce mining costs, and lower royalty payments
and severance taxes, which are a function of selling price. TECO Coal’s
effective income tax rate in 2013 is expected to be 25%.

As engineering has progressed on the Polk Power Station Units 2 – 5 conversion
to combined-cycle operation, the timing of expected capital expenditures has
been refined. The largest capital spending for that project is now expected to
occur in 2014 and 2015. TECO Energy now plans to utilize the majority of
proceeds from the sale of the TECO Guatemala assets to invest in Tampa
Electric’s rate base growth in the form of equity contributions. Over the next
several years, after maintaining Tampa Electric’s capital structure,
additional cash used to repurchase shares as market opportunities allow, and
to offset dilution from shares issued as compensation could be as much as $50
million.

Webcast

As previously announced, TECO Energy will host a webcast with the investment
community to discuss its fourth-quarter results and 2013 guidance at 9:00 am
Eastern time, Tuesday, Feb. 5, 2013. 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; 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; general operating conditions; input
commodity prices affecting cost at all of the operating companies; operating
cost and environmental or safety regulations affecting the production levels
and margins at TECO Coal; fuel cost recoveries and related cash at the
utilities; natural gas demand at Peoples Gas; 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 Dec. 31, 2012)
                                Three Months          Twelve Months
                                                     
                                 Ended                 Ended
(millions except per share                                        
amounts)
                                 2012        2011      2012          2011
Revenues                         $ 688.4    $ 720.0   $ 2,996.6    $ 3,209.9
Net income from continuing       $ 45.6      $ 47.3    $ 246.0       $ 250.8
operations
Net income from discontinued
operations attributable to        (0.5  )    5.9      (33.3   )    21.8
TECO Energy
Net income attributable to       $ 45.1     $ 53.2    $ 212.7      $ 272.6
TECO Energy
                                                                     
Earnings per share from          $ 0.21      $ 0.22    $ 1.14        $ 1.17
continuing operations- basic
Earnings per share from                                            
discontinued operations                                          
attributable to TECO Energy –      --          0.03      (0.15   )     0.10
basic
Total earnings per share
attributable to TECO Energy –    $ 0.21     $ 0.25    $ 0.99       $ 1.27
basic
                                                                     
Total earnings per share –       $ 0.21      $ 0.25    $ 0.99        $ 1.27
diluted
Average common shares              214.5       213.8     214.3         213.6
outstanding – basic
Average common shares              215.0       215.4     215.0         215.1
outstanding – diluted
                                                                       

                                 TECO Energy

                                DECEMBER 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.

                                                              
TECO ENERGY, Inc.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(All significant intercompany transactions have been eliminated in the
consolidated financial statements.)

                             Three Months Ended      Twelve Months Ended
                             Dec. 31,                Dec. 31,
(millions except share      2012       2011       2012         2011
data)
                                                                   
Revenues
Regulated electric and gas   $ 550.6     $ 540.7     $ 2,377.4     $ 2,469.8
Unregulated                  137.8    179.3    619.2      740.1   
Total revenues               688.4    720.0    2,996.6    3,209.9 
Expenses
Regulated operations &
maintenance
Fuel                           160.2       166.0       694.7         731.4
Purchased power                20.1        22.7        105.3         125.9
Cost of natural gas sold       37.2        32.8        155.7         210.4
Other                          120.3       105.5       462.5         436.9
Operation & maintenance
other expense
Mining related costs           102.4       136.9       461.1         574.1
Other                          3.5         2.3         7.9           7.1
Depreciation and               83.7        79.3        330.6         317.2
amortization
Taxes, other than income     51.5     53.7     222.3      223.7   
Total expenses               578.9    599.2    2,440.1    2,626.7 
Income from operations       109.5    120.8    556.5      583.2   
Other income (expense)
Allowance for other funds      1.0         0.2         2.6           1.0
used during construction
Other income                   3.6         2.4         9.4           6.7
Loss on debt                 (1.2  )   0.0      (1.2    )   0.0     
extinguishment
Total other income           3.4      2.6      10.8       7.7     
Interest charges
Interest expense               43.3        48.8        185.0         198.0
Allowance for borrowed
funds used during            (0.6  )   (0.2  )   (1.5    )   (0.6    )
construction
Total interest charges       42.7     48.6     183.5      197.4   
Income before provision        70.2        74.8        383.8         393.5
for income taxes
Provision for income taxes   24.6     27.5     137.8      142.7   
Income from continuing         45.6        47.3        246.0         250.8
operations
Discontinued operations
Income (loss) from             (2.7  )     8.7         (10.6   )     33.3
discontinued operations
Provision for income taxes   (2.2  )   2.7      22.4       11.2    
Total discontinued             (0.5  )     6.0         (33.0   )     22.1
operations, net
Less: Income from
discontinued operations      0.0      0.1      0.3        0.3     
attributable to
noncontrolling interest
Income from discontinued
operations attributable to   (0.5  )   5.9      (33.3   )   21.8    
TECO Energy, net
Net income attributable to  $ 45.1    $ 53.2    $ 212.7     $ 272.6   
TECO Energy
                                                                   
                                                                   
Average common shares
outstanding - basic            214.5       213.8       214.3         213.6
(millions)
Average common shares
outstanding - diluted          215.0       215.4       215.0         215.1
(millions)
                                                                   
Earnings per average
common share outstanding:
Earnings per share from
continuing operations --     $ 0.21      $ 0.22      $ 1.14        $ 1.17
basic
Earnings per share from
continuing operations --     $ 0.21      $ 0.22      $ 1.14        $ 1.17
diluted
                                                                   
Earnings per share from
discontinued operations --   $ 0.00      $ 0.03        ($0.15  )   $ 0.10
basic
Earnings per share from
discontinued operations --   $ 0.00      $ 0.03        ($0.15  )   $ 0.10
diluted
                                                                   
Earnings per share
attributable to TECO         $ 0.21      $ 0.25      $ 0.99        $ 1.27
Energy -- basic
Earnings per share
attributable to TECO         $ 0.21      $ 0.25      $ 0.99        $ 1.27
Energy -- diluted
                                                                             

                                                        
TECO ENERGY, Inc.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(All significant intercompany transactions have been eliminated in the
consolidated financial statements.)

                                      Dec. 31,               Dec. 31,
(millions)                           2012                  2011
                                                             
Assets
Current assets
Cash and cash equivalents             $   200.5              $   44.0
Restricted cash                           0.0                    8.7
Receivables                               282.7                  327.7
Inventories at average cost
Fuel                                      123.6                  136.8
Materials and supplies                    82.1                   87.3
Derivative assets                         0.0                    0.9
Income tax receivables                    0.4                    0.6
Deferred income taxes                     63.3                   72.7
Prepayments and other current             33.9                   31.9
assets
Regulatory assets                       70.3                87.3       
Total current assets                    856.8               797.9      
Property, plant and equipment
Utility plant in service
Electric                                  6,655.8                6,731.7
Gas                                       1,228.3                1,169.9
Construction work in progress             336.1                  247.4
Other property                          443.8               432.3      
Property plant and equipment at           8,664.0                8,581.3
original cost
Accumulated depreciation                (2,673.9   )         (2,613.5   )
Total property, plant and               5,990.1             5,967.8    
equipment, net
Other assets
Regulatory assets                         382.6                  364.5
Goodwill                                  0.0                    55.4
Derivative assets                         0.2                    0.0
Deferred charges and other assets       126.8               136.6      
Total other assets                      509.6               556.5      
Total assets                         $   7,356.5          $   7,322.2    
                                                             
Liabilities and capital
Current liabilities
Long-term debt due within one
year
Recourse                              $   0.0                $   374.9
Non-recourse                              0.0                    11.2
Accounts payable                          232.8                  252.3
Other current liabilities                 19.9                   17.2
Customer deposits                         162.9                  159.5
Derivative liabilities                    14.6                   58.4
Interest accrued                          33.2                   39.3
Taxes accrued                             32.1                   20.7
Regulatory liabilities                  106.7               86.2       
Total current liabilities               602.2               1,019.7    
Other liabilities
Deferred income taxes                     277.9                  150.8
Investment tax credits                    9.7                    10.0
Regulatory liabilities                    651.9                  619.4
Derivative liabilities                    0.6                    8.6
Deferred credits and other                549.7                  559.2
liabilities
Long-term debt, less amount due
within one year
Recourse                                  2,972.7                2,665.0
Non-recourse                            0.0                 22.3       
Total other liabilities                 4,462.5             4,035.3    
Total liabilities                         5,064.7                5,055.0
Capital
Common equity                             216.6                  215.8
Additional paid in capital                1,564.5                1,553.4
Retained earnings                         541.7                  519.4
Accumulated other comprehensive         (31.0      )         (22.0      )
(loss)
TECO Energy stockholders' equity          2,291.8                2,266.6
Noncontrolling interest                 0.0                 0.6        
Total capital                           2,291.8             2,267.2    
Total liabilities and capital        $   7,356.5          $   7,322.2    
                                                             
Book Value Per Share                  $   10.58              $   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        Twelve Months Ended
                             Dec. 31,                  Dec. 31,
(millions)                  2012        2011        2012        2011
                                                                    
Cash flows from operating
activities
Net income attributable to   $ 45.1       $ 53.2       $ 212.7      $ 272.6
TECO Energy
                                                                    
Adjustments to reconcile
net income to net cash
from operating activities:
Depreciation and               84.5         81.2         337.7        324.6
amortization
Deferred income taxes          21.7         28.5         136.9        146.0
Investment tax credits         0.0          (0.1   )     (0.3   )     (0.4   )
Allowance for other funds      (1.0   )     (0.2   )     (2.6   )     (1.0   )
used during construction
Non-cash stock                 3.5          2.5          12.0         9.1
compensation
Loss (gain) on sales of        4.0          0.0          18.5         (0.5   )
business / assets, pretax
Deferred recovery clause       (5.2   )     (12.6  )     (8.9   )     (9.0   )
Asset impairment, pretax       (0.2   )     0.0          17.2         0.0
Receivables, less
allowance for                  85.0         15.1         37.7         5.7
uncollectibles
Inventories                    (10.3  )     (16.2  )     (2.4   )     23.5
Prepayments and other          1.1          1.6          (2.0   )     (2.8   )
current assets
Taxes accrued                  (46.6  )     (40.9  )     12.1         (5.7   )
Interest accrued               (29.5  )     (22.9  )     (5.9   )     0.3
Accounts payable               (23.3  )     (15.7  )     (1.3   )     (42.6  )
Other                        20.3      9.0       (4.7   )   34.3   
                            149.1     82.5      756.7     754.1  
                                                                    
Cash flows from investing
activities
Capital expenditures           (149.9 )     (155.8 )     (505.1 )     (454.1 )
Allowance for other funds      1.0          0.2          2.6          1.0
used during construction
Net proceeds from sale of      187.0        0.1          194.4        3.5
business / assets
Restricted cash                8.9          0.0          8.9          0.0
Other investments            0.0       0.0       0.0       14.4   
                            47.0      (155.5 )   (299.2 )   (435.2 )
                                                                    
Cash flows from financing
activities
Dividends                      (47.6  )     (46.4  )     (190.4 )     (183.2 )
Proceeds from sale of          0.7          0.4          3.9          7.0
common stock
Proceeds from long-term        (0.2   )     0.0          538.1        0.0
debt
Repayment of long-term
debt / Purchase in lieu of     (181.2 )     (2.8   )     (650.4 )     (153.6 )
redemption
Dividend to noncontrolling     0.0          0.0          (0.3   )     (0.6   )
interest
Restricted cash                (1.9   )     0.0          (1.9   )     0.0
Net decrease in short-term   0.0       0.0       0.0       (12.0  )
debt
                            (230.2 )   (48.8  )   (301.0 )   (342.4 )
                                                                    
Net increase (decrease) in     (34.1  )     (121.8 )     156.5        (23.5  )
cash and cash equivalents
Cash and cash equivalents    234.6     165.8     44.0      67.5   
at beginning of period
Cash and cash equivalents   $ 200.5    $ 44.0     $ 200.5    $ 44.0   
at 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
Dec. 31,
2012   Revenues -     $ 452.9       $ 97.7    $ 134.8   $ --        $  3.0         $ 688.4
       outsiders
       Sales to       (0.2    )   1.0     --      --        (0.8   )    --      
       affiliates
       Total            452.7         98.7      134.8     --           2.2           688.4
       revenues
       Depreciation
       and              60.4          12.9      10.0      --           0.4           83.7
       amortization
       Total
       interest         23.6          3.4       1.6       --           14.1          42.7
       charges ^(2)
       Allocated
       interest         --            --        1.6       --           (1.6   )      --
       expense ^(2)
       Provision
       (Benefit)        23.7          4.5       2.5       --           (6.1   )      24.6
       for income
       taxes
       Income from
       continuing       36.2          7.1       10.8      --           (8.5   )      45.6
       operations
       Discontinued
       operations
       attributable     --            --        --        (0.7  )      0.2           (0.5    )
       to TECO
       Energy, net
       of tax ^(3)
       Net income
       (loss)
     attributable  $ 36.2      $ 7.1    $ 10.8   $ (0.7  )  $  (8.3   )   $ 45.1    
       to TECO
       Energy ^(1)
2011   Revenues -     $ 448.7       $ 92.0    $ 177.5   $ --        $  1.8         $ 720.0
       outsiders
       Sales to       0.3        --      --      --        (0.3   )    --      
       affiliates
       Total            449.0         92.0      177.5     --           1.5           720.0
       revenues
       Depreciation
       and              55.7          12.4      10.9      --           0.3           79.3
       amortization
       Total
       interest         30.2          4.4       1.8       --           12.2          48.6
       charges ^(2)
       Allocated
       interest         --            --        1.7       --           (1.7   )      --
       expense ^(2)
       Provision
       (Benefit)        20.5          4.6       4.7       --           (2.3   )      27.5
       for income
       taxes
       Income from
       continuing       37.7          7.2       13.4      --           (11.0  )      47.3
       operations
       Discontinued
       operations
       attributable     --            --        --        6.0          (0.1   )      5.9
       to TECO
       Energy, net
       of tax ^(3)
       Net income
       (loss)
     attributable  $ 37.7      $ 7.2    $ 13.4   $ 6.0     $  (11.1  )   $ 53.2    
       to TECO
       Energy ^(1)
Twelve months ended
Dec. 31,
2012   Revenues -     $ 1,980.7     $ 396.6   $ 608.9   $ --        $  10.4        $ 2,996.6
       outsiders
       Sales to       0.6        2.3     --      --        (2.9   )    --      
       affiliates
       Total            1,981.3       398.9     608.9     --           7.5           2,996.6
       revenues
       Depreciation
       and              237.6         50.6      41.0      --           1.4           330.6
       amortization
       Total
       interest         109.8         16.0      7.1       --           50.6          183.5
       charges ^(2)
       Allocated
       interest         --            --        6.8       --           (6.8   )      --
       expense ^(2)
       Provision
       (Benefit)        120.2         21.5      15.7      --           (19.6  )      137.8
       for income
       taxes
       Income from
       continuing       193.1         34.1      50.2      --           (31.4  )      246.0
       operations
       Discontinued
       operations
       attributable     --            --        --        (29.3 )      (4.0   )      (33.3   )
       to TECO
       Energy, net
       of tax ^(3)
       Net income
       (loss)
     attributable  $ 193.1     $ 34.1   $ 50.2   $ (29.3 )  $  (35.4  )   $ 212.7   
       to TECO
       Energy ^(1)
2011   Revenues -     $ 2,019.3     $ 450.5   $ 733.0   $ --        $  7.1         $ 3,209.9
       outsiders
       Sales to       1.3        3.0     --      --        (4.3   )    --      
       affiliates
       Total            2,020.6       453.5     733.0     --           2.8           3,209.9
       revenues
       Depreciation
       and              222.1         48.4      45.3      --           1.4           317.2
       amortization
       Total
       interest         121.8         17.7      6.9       --           51.0          197.4
       charges ^(2)
       Allocated
       interest         --            --        6.7       --           (6.7   )      --
       expense ^(2)
       Provision
       (Benefit)        124.8         20.6      15.4      --           (18.1  )      142.7
       for income
       taxes
       Income from
       continuing       202.7         32.6      51.5      --           (36.0  )      250.8
       operations
       Discontinued
       operations
       attributable     --            --        --        22.4         (0.6   )      21.8
       to TECO
       Energy, net
       of tax ^(3)
       Net income
       (loss)
     attributable  $ 202.7     $ 32.6   $ 51.5   $ 22.4    $  (36.6  )   $ 272.6   
       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 financing
       costs. Internally allocated costs were at pretax rates of 6.00% for 2012 and 6.25% for
(2)    2011. Rates were based on the average of each subsidiary's equity and indebtedness to
       TECO Energy assuming a 50/50 debt/equity capital structure. Internally allocated
       interest charges are a component of total interest charges.
       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 Dec.
31,
            2012           2011           Change    2012        2011        Change
                                                                                   
Residential   $ 211,398       $ 206,377       2.4        1,848,679    1,804,073    2.5
Commercial      145,227         146,661       (1.0   )   1,454,981    1,467,976    (0.9  )
Industrial
--              19,263          15,508        24.2       232,103      182,722      27.0
Phosphate
Industrial      24,394          24,609        (0.9   )   260,153      263,963      (1.4  )
-- Other
Other sales
of              46,086          45,755        0.7        456,490      449,137      1.6
electricity
                                                                       
                446,368         438,910       1.7        4,252,406    4,167,871    2.0
                                                                                   
Deferred
and other       (13,786   )     (8,371    )   64.7       --           --           --
revenues
Sales for       3,315           3,332         (0.5   )   50,377       73,015       (31.0 )
resale
Other
operating       16,906          15,094        12.0       --           --           --
revenue
SO[2]
Allowance       --              --            --         --           --           --
Sales
NOx
Allowance     --           --          --       --          --          --    
Sales
            $ 452,803     $ 448,965     0.9      4,302,783   4,240,886   1.5   
                                                                                   
Average       686,633      677,411     1.4      --          --          --    
customers
                                                                                   
Retail Net
Energy For                                        4,308,231   4,161,063   3.5   
Load
                                                                                   
Total                                             658         629         4.6   
Degree Days
                                                                                   
                                                                       
              Operating Revenues*                        Sales -- Kilowatt-hours*
Twelve
Months                                        Percent                              Percent
Ended Dec.
31,
            2012           2011           Change    2012        2011        Change
                                                                                   
Residential   $ 958,955       $ 994,748       (3.6   )   8,395,166    8,717,992    (3.7  )
Commercial      612,282         612,598       (0.1   )   6,185,012    6,206,564    (0.3  )
Industrial
--              75,686          61,966        22.1       913,071      731,228      24.9
Phosphate
Industrial      101,209         99,287        1.9        1,088,367    1,072,474    1.5
-- Other
Other sales
of              184,053         185,199       (0.6   )   1,826,964    1,835,311    (0.5  )
electricity
                                                                       
                1,932,185       1,953,798     (1.1   )   18,408,580   18,563,569   (0.8  )
                                                                                   
Deferred
and other       (26,641   )     (10,292   )   158.9      --           --           --
revenues
Sales for       16,210          21,680        (25.2  )   267,061      352,860      (24.3 )
resale
Other
operating       59,625          55,380        7.7        --           --           --
revenue
SO[2]
Allowance       1               4             (75.0  )   --           --           --
Sales
NOx
Allowance     --           37          (100.0 )  --          --          --    
Sales
            $ 1,981,380   $ 2,020,607   (1.9   )  18,675,641  18,916,429  (1.3  )
                                                                                   
Average       684,236      675,799     1.2      --          --          --    
customers
                                                                                   
Retail Net
Energy For                                        19,254,552  19,205,173  0.3   
Load
                                                                                   
Total                                             4,190       4,298       (2.5  )
Degree Days
                                                                                   
* in thousands
                                                                                   

                                                
PEOPLES GAS SYSTEM
GAS OPERATING STATISTICS (Unaudited)
                                                               
                 Operating Revenues*               Therms*
Three Months                           Percent                         Percent
Ended Dec. 31,
               2012       2011       Change   2012       2011       Change
                                                                           
By Customer
Segment:
Residential      $ 31,931    $ 31,398    1.7       18,835      17,816      5.7
Commercial         33,536      32,308    3.8       107,788     104,009     3.6
Industrial         3,362       2,309     45.6      68,487      53,869      27.1
Off System         15,551      12,250    26.9      40,720      32,600      24.9
Sales
Power              2,751       2,444     12.6      182,906     141,360     29.4
generation
Other revenues   9,294     9,352    (0.6  )  --         --         --    
               $ 96,425   $ 90,061   7.1     418,736    349,654    19.8  
                                                                           
By Sales Type:
System supply    $ 59,444    $ 54,872    8.3       69,209      60,542      14.3
Transportation     27,687      25,837    7.2       349,527     289,112     20.9
Other revenues   9,294     9,352    (0.6  )  --         --         --    
               $ 96,425   $ 90,061   7.1     418,736    349,654    19.8  
                                                                           
Average          343,761   339,066  1.4     --         --         --    
customers
                                                                           
                                                                           
                                                               
                 Operating Revenues*               Therms*
Twelve Months                            Percent                           Percent
Ended Dec. 31,
               2012       2011       Change   2012       2011       Change
                                                                           
By Customer
Segment:
Residential      $ 125,355   $ 140,787   (11.0 )   70,811      77,676      (8.8  )
Commercial         134,146     137,985   (2.8  )   421,452     409,271     3.0
Industrial         10,331      8,833     17.0      237,338     205,081     15.7
Off System         73,675      105,974   (30.5 )   223,964     230,992     (3.0  )
Sales
Power              12,395      10,629    16.6      913,462     614,302     48.7
generation
Other revenues   34,868    39,877   (12.6 )  --         --         --    
               $ 390,770  $ 444,085  (12.0 )  1,867,027  1,537,322  21.4  
                                                                           
By Sales Type:
System supply    $ 247,361   $ 302,714   (18.3 )   334,268     353,306     (5.4  )
Transportation     108,541     101,494   6.9       1,532,759   1,184,016   29.5
Other revenues   34,868    39,877   (12.6 )  --         --         --    
               $ 390,770  $ 444,085  (12.0 )  1,867,027  1,537,322  21.4  
                                                                           
Average          342,907   338,840  1.2     --         --         --    
customers
                                                                           
* in thousands
                                                                           

Contact:

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