TECO Energy Reports Improved Third Quarter Results

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Company Updates 2009 Outlook and Discusses Business Drivers for 2010
TAMPA, Fla.--(Business Wire)--
TECO Energy, Inc. (NYSE:TE) today reported third quarter net income of $64.8
million or $0.30 per share, compared to $58.2 million or $0.28 per share in the
third quarter of 2008.

Third-quarter 2009 non-GAAP results from continuing operations, which exclude
charges and gains, were $85.6 million compared to net income of $58.2 million in
the 2008 period (see the Results Reconciliation table later in this release).

Year-to-date net income and earnings per share were $160.4 million or $0.75 per
share in 2009, compared to $140.4 million or $0.67 per share in the same period
in 2008.

Year-to-date 2009 non-GAAP results from continuing operations, which exclude
charges and gains, were $176.1 million compared to non-GAAP results of $141.0
million in the 2008 period (see the Results Reconciliation table later in this
release).

Included in the $20.8 million of third quarter charges were $15.4 million of
restructuring charges at Tampa Electric, Peoples Gas and TECO Energy, the
write-off of $5.2 million of project development costs at Tampa Electric
primarily related to the Polk Unit 6 IGCC plant, and $0.2 million associated
with the sale of student loan securities in the third quarter. Year-to-date net
income in 2009 included the third-quarter items, and an $8.7 million net gain on
the sale of TECO Guatemala's 16.5% interest in the Central American fiber optic
telecommunications provider Navega, and a $3.6 million valuation adjustment
charge to student loan securities held at TECO Energy. Year-to-date 2008 net
income included a $0.6 million charge for adjustments to previously estimated
costs associated with the sale of TECO Transport (see the Results Reconciliation
table later in this release).

TECO Energy Chairman and CEO Sherrill Hudson said, "Our results this quarter
reflect the restructuring actions taken to create a leaner, more nimble
organization, and to position the utilities to earn their allowed returns
despite the weakened Florida economy. Like others, we are seeing some signs in
the local and national economies that the worst of the recession may be over and
that economic conditions are starting to slowly improve. We expect that
improving economic conditions and the benefits from our restructuring actions
should lead to improved results in 2010."

Non-GAAP Results

The table below compares the TECO Energy GAAP net income to the non-GAAP
measures used in this release. Non-GAAP results in the third quarter,
year-to-date and 12-months ended periods exclude the charges and gains described
in the operating company discussions. Non-GAAP Results Excluding Synthetic Fuel
excluded charges and gains and also excluded the earnings benefits associated
with the production of synthetic fuel in the 12-months ended Sept. 30, 2008
period. For a reconciliation to GAAP results and a discussion regarding this
presentation of non-GAAP results and management`s use of this information,
please see the Non-GAAP Presentation section and Results Reconciliation table
later in this release.

Results Comparisons
3 months 9 months 12 months
ended Sept. 30 ended Sept. 30 ended Sept. 30
(millions) 2009 2008 2009 2008 2009 2008
Net income $ 64.8 $ 58.2 $ 160.4 $ 140.4 $ 182.4 $ 314.3
Net income from continuing operations $ 64.8 $ 58.2 $ 160.4 $ 140.4 $ 182.4 $ 314.3
Non-GAAP Results With Synthetic Fuel $ 85.6 $ 58.2 $ 176.1 $ 141.0 $ 218.4 $ 186.5
Non-GAAP Results Excluding Synthetic Fuel $ 85.6 $ 58.2 $ 176.1 $ 141.0 $ 218.4 $ 188.7

Segment Reporting

The table below includes TECO Energy segment information on a GAAP basis, which
includes all charges and gains and synthetic fuel-related benefits or costs for
the periods shown.

Segment Information 3 months 9 months 12 months
ended Sept. 30 ended Sept. 30 ended Sept. 30
(millions)
Net Income (loss) 2009 2008 2009 2008 2009 2008
Tampa Electric $ 54.3 $ 50.6 $ 121.1 $ 106.7 $ 150.0 $ 135.7
Peoples Gas System 3.4 2.6 19.2 17.9 28.5 24.2
TECO Coal 11.6 3.7 29.7 15.4 32.4 22.6
TECO Guatemala 8.1 11.7 29.2 37.1 28.9 48.6
Parent/other (12.6 ) (10.4 ) (38.8 ) (36.7 ) (57.4 ) 76.2
TECO Transport(1) -- -- -- -- -- 7.0
Net income from continuing operations 64.8 58.2 160.4 140.4 182.4 314.3
Discontinued operations(1) -- -- -- -- -- --
Total net income $ 64.8 $ 58.2 $ 160.4 $ 140.4 $ 182.4 $ 314.3

(1) Due to the ongoing contractual relationship for solid fuel waterborne
transportation services, TECO Transport was not classified as a discontinued
operation and is included in TECO Energy`s historical results through the sale
in December 2007.

Operating Company Results

All amounts included in the operating company and Parent/other results
discussions are after tax, unless otherwise noted.

Tampa Electric

Tampa Electric reported net income for the third quarter of $54.3 million,
compared with $50.6 million for the same period in 2008. Tampa Electric had
third quarter non-GAAP results of $70.6, which excluded $11.1 million of
restructuring charges and the $5.2 million write-off of project development
costs primarily related to the Polk Unit 6 IGCC project (see the Results
Reconciliation table later in this release). There were no non-GAAP adjustments
to the 2008 quarter. Results for the quarter reflected 15.0% higher base
revenues due to the increase in base rates effective May 7, 2009, higher
earnings on nitrogen oxide (NOx) control projects, a 0.1% lower average number
of customers, and slightly higher operations and maintenance expenses. Net
income included $2.5 million of Allowance for Funds Used During Construction
(AFUDC) - equity, which represents allowed equity cost capitalized to
construction costs, related to the installation of NOx control equipment, coal
rail unloading facilities and combustion turbines for peak loads, compared with
$1.3 million in the 2008 period.

In the third quarter of 2009, there was no reduction in net income due to the
previous waterborne transportation disallowance for the transportation of solid
fuel, which reduced net income $2.4 million in the 2008 period. In November
2008, the Florida Public Service Commission (FPSC) approved Tampa Electric's
fuel adjustment filing, which included full recovery of waterborne
transportation costs under new contracts effective Jan. 1, 2009. This approval
eliminated the annual reduction in net income that occurred in 2004 through 2008
during the previous transportation contract.

Total retail energy sales decreased less than 1.0% in the third quarter of 2009,
compared to the same period in 2008. Total degree days in Tampa Electric's
service area were 2% above normal and 10% above the third quarter of 2008, which
drove a 1.5% increase in sales to residential customers and partially offset
lower sales to commercial and non-phosphate industrial customers. Pretax base
revenues increased approximately $33 million in the third quarter due to higher
base rates approved by the Florida Public Service Commission for Tampa Electric
effective May 7, 2009, which were partially offset by the lower number of
customers.

Operations and maintenance expense, excluding all FPSC-approved cost recovery
clauses and non-GAAP charges, increased $1.6 million primarily due to higher
power generating unit maintenance.

Compared to the third quarter of 2008, depreciation expense increased $2.2
million, reflecting additions to facilities to serve customers. Interest expense
at Tampa Electric increased slightly due to higher long-term debt balances
outstanding, and interest income decreased due to lower interest rates and lower
under-recovered fuel balances on which interest is accrued.

Year-to-date net income was $121.1 million, compared with $106.7 million in the
2008 period. Year-to-date non-GAAP results were $137.4 million, which excluded
the third-quarter items noted above (see the Results Reconciliation table later
in this release). There were no non-GAAP adjustments to the 2008 period. These
results were driven primarily by the higher base revenues from the new base
rates and higher earnings on NOx control projects, partially offset by 0.2%
lower average number of customers and higher operations and maintenance
expenses. Net income included $8.3 million of AFUDC - equity related to the
installation of NOx control equipment and combustion turbines for peak loads,
compared with $4.3 million in the 2008 period. Sales volumes to other utilities
declined 47% from the 2008 period, reflecting lower demand. In the 2009
year-to-date period, there was no reduction in net income due to the waterborne
transportation disallowance for the transportation of solid fuel, compared to a
$6.3 million reduction in the 2008 period.

In the 2009 year-to-date period, total retail energy sales decreased 1.8%
compared to the 2008 period, driven primarily by the economy, weather in the
second quarter, and the 0.2% decline in the average number of customers. Total
degree days in Tampa Electric's service area were 3% above normal and 8% above
the prior year; however, extended periods of rain reduced sales in the second
quarter. Colder winter weather in the first quarter contributed to a 0.8%
increase in sales to the weather-sensitive residential customer class, while
sales to commercial and industrial customers declined, primarily due to economic
conditions. Operations and maintenance expense, excluding all FPSC-approved cost
recovery clauses and non-GAAP items noted in the third quarter, increased $5.1
million. The increase included the write-off of $0.6 million of disallowed rate
case expenses, $1.8 million higher employee-related expenses, $1.6 million
higher tree trimming expense, $1.0 million higher transmission and distribution
system storm damage reserve accrual, and $1.2 million higher power generating
unit maintenance partially offset by cost reductions in other operating areas.
Bad-debt expense was $0.4 million higher in the 2009 year-to-date period than in
2008.

Compared to the 2008 year-to-date period, depreciation expense increased $6.2
million, reflecting additions to facilities to serve customers. Interest expense
at Tampa Electric increased slightly due to higher long-term debt balances
outstanding.

Peoples Gas

Peoples Gas reported net income of $3.4 million for the third quarter, compared
to $2.6 million in the same period in 2008. Non-GAAP results, which exclude $2.8
million of restructuring costs, were $6.2 million in the third quarter of 2009
(see the Results Reconciliation table later in this release). There were no
non-GAAP adjustments to the 2008 quarter. Quarterly results reflect a 0.3% lower
average number of customers due to the weak Florida housing market, decreased
sales to residential customers and increased sales to commercial customers due
to several higher volume new customers and conversion of propane customers to
natural gas. Base revenues increased due to the higher permanent base rates that
became effective June 18, 2009. Gas transported for power generation customers
increased in 2009, compared to the third quarter of 2008 when high natural gas
prices reduced demand for natural gas for power generation. Lower sales volumes
to industrial customers reflected economic conditions and reduced operations by
industries sensitive to the housing market, such as cement plants. Off-system
sales volumes, which are very low margin sales, decreased due to lower spot
sales to power generation customers. Excluding restructuring charges, non-fuel
operations and maintenance expense was essentially unchanged from 2008 levels
due to cost control efforts by the operating areas. Results also reflect
increased depreciation expense due to routine plant additions.

Peoples Gas reported net income of $19.2 million for the year-to-date period,
compared to $17.9 million in the same period in 2008. Year-to-date non-GAAP
results, which exclude the third quarter restructuring charges, were $22.0
million (see the Results Reconciliation table later in this release). There were
no non-GAAP adjustments to the 2008 period. Results reflect a 0.2% lower average
number of customers. Residential customer usage increased due to colder winter
weather in the first quarter of 2009, compared to the very mild winter weather
in 2008. Gas transported for power generation customers increased over the 2008
year-to-date period due to lower natural gas prices, which made it a more
economical generating fuel choice. Excluding restructuring charges, non-fuel
operations and maintenance expense increased due to higher pipeline integrity
costs and the $0.4 million write-off of disallowed rate case expenses.

TECO Coal

In 2009, TECO Coal achieved third quarter net income of $11.6 million on sales
of 2.3 million tons, compared to $3.7 million on sales of 2.2 million tons in
the same period in 2008. Results reflect an average net per-ton selling price,
excluding transportation allowances, of more than $73 per ton, almost 20% higher
than 2008. Compared to prior 2009 quarters, metallurgical coal sales increased
in the third quarter due to slightly higher operating rates at steel producers,
although economic conditions continue to keep demand for steel products at lower
levels worldwide. In the third quarter of 2009, the all-in total per-ton cost of
production increased to almost $67 per ton, 9% over 2008`s level, and above the
cost guidance range previously provided, but on lower tons than previously
forecast. Cost increased in the third quarter due to reclamation work at surface
mines that were closed earlier in the year due to weak demand. Due to tax
percentage depletion differences between periods, in the third quarter of 2009
TECO Coal's effective income tax rate was a more normal 24% compared to 20% in
the 2008 period. Third quarter net income in 2008 included a $2.6 million
benefit from a contract settlement related to future coal sales.

TECO Coal recorded year-to-date net income of $29.7 million on sales of 6.8
million tons in 2009, compared to $15.4 million on sales of 7.1 million tons in
the 2008 period. The year-to-date sales mix was driven by the same factors as
the third quarter. At $71 per ton, the 2009 year-to-date average net per-ton
selling price was almost 20% above the 2008 average selling price. At $66 per
ton, the all-in total per-ton cost of production was 14% higher than 2008, as
expected. In the 2009 year-to-date period, TECO Coal's effective income tax rate
was 18% compared to 13% in the 2008 period.

TECO Guatemala

TECO Guatemala reported third quarter net income of $8.1 million in 2009,
compared to $11.7 million in the 2008 period. Year-to-date 2009 net income was
$29.2 million, compared to $37.1 million in the 2008 period. Year-to-date 2009
non-GAAP results were $20.5 million, which exclude the $8.7 million gain on the
sale of the telecommunication company, Navega, recorded in the first quarter
(see the Results Reconciliation table later in this release). There were no
non-GAAP adjustments to 2008 results in either period.

Lower contract and spot energy sales and lower capacity payments due to the
unplanned outages at the San José Power Station reduced net income $3.5 million
in the third quarter of 2009. The 2009 results reflect $1.3 million of lower net
income from the distribution company, EEGSA, as a result of the reduction in the
Value Added Distribution tariff (VAD) in August 2008, partially offset by
customer and energy sales growth, and cost reduction actions by EEGSA to offset
the impact of the lower VAD. Results for the quarter included a $1.2 million
benefit associated with the final settlement of contingencies related to Central
American interests previously sold.

Lower year-to-date results reflect the impact of unplanned outages at the San
José Power Station and lower net income from EEGSA as a result of the VAD
reduction. Results for both the quarter and year-to-date periods reflect the
absence of earnings from the telecommunications company, Navega, which was sold
in March. Year-to-date results in 2009 for the distribution utility (EEGSA) and
affiliated companies also include a $2.5 million benefit related to an
adjustment to previously estimated year-end equity balances, compared to a
similar $3.1 million benefit in 2008.

Parent/other

The cost for "Parent/other" in the third quarter of 2009 was $12.6 million,
compared to a cost of $10.4 million in the same period in 2008. The third
quarter non-GAAP cost was $10.9 million, which excluded $1.5 million of
restructuring costs and a $0.2 million charge associated with the sale of
student loan securities in the third quarter (see the Results Reconciliation
table later in this release). The year-to-date "Parent/other" cost was $38.8
million in 2009, compared to $36.7 million in the 2008 period. The 2009
year-to-date Parent/other non-GAAP cost was $33.6 million, excluding the third
quarter items and the $3.6 million valuation adjustment recorded in the first
quarter on student-loan securities held at TECO Energy parent. In 2008, the
year-to-date non-GAAP cost for Parent/other was $36.1 million excluding the $0.6
million after-tax adjustment to previously estimated transaction costs related
to the sale of TECO Transport (see the Results Reconciliation table later in
this release). Results in the third quarter included a $1.5 million gain on the
sale of a lease, the final asset held in a leveraged lease portfolio.
Year-to-date results in 2009 included a $2.6 million benefit from a sale of
property by TECO Properties.

Cash and Liquidity

The table below sets forth the Sept. 30, 2009 consolidated liquidity and cash
balances, the cash balances at the operating companies and TECO Energy parent,
and amounts available under the TECO Energy/Finance and Tampa Electric Company
credit facilities.

Balances as of Sept. 30, 2009
(millions) Consolidated Tampa Electric Unregulated Parent
Company Companies
Credit facilities $ 675.0 $ 475.0 $ -- $ 200.0
Drawn amounts/LCs 67.8 54.7 -- 13.1
Available credit facilities 607.2 420.3 -- 186.9
Cash and short-term investments 45.5 6.7 17.7 21.1
Total liquidity $ 652.7 $ 427.0 $ 17.7 $ 208.0

Consolidated other cash and short-term investments includes $17.7 million of
cash at the unregulated operating companies for normal operations. In addition
to consolidated cash, as of Sept. 30, 2009 unconsolidated affiliates owned by
TECO Guatemala, CGESJ (San José) and TCAE (Alborada), had unrestricted cash
balances of $16.7 million, which are not included in the table above.

2009 Earnings Outlook

In July, TECO Energy updated its outlook for 2009 earnings per share to be
within a range of $1.00 and $1.15 per share, excluding charges and gains, and
continues to expect earnings to be within that range.

The 2009 guidance was provided in the form of a range to allow for varying
outcomes with respect to important variables, such as the timing of the start of
an economic recovery, weather and customer usage at the Florida utilities,
pricing and demand for production at TECO Coal for uncontracted tons and the
potential impact of the world-wide economic slowdown on coal demand. The upper
end of the guidance range included TECO Coal`s full sales forecast of 9.9
million tons, including the 0.4 million tons that were unsold at that time, at
an average selling price of $73 per ton and an average all-in, total cost of
production in a range between $63 and $66 per ton. At the same time, Tampa
Electric forecasted that an economic recovery would begin later in 2009 and
expected 0.1% customer growth for the year with energy sales growth slightly
above that.

Consistent with the guidance initially provided in May, for the remainder of
2009 Tampa Electric will benefit from the higher base rates that became
effective in May and August. Tampa Electric and Peoples Gas have continued to
experience lower numbers of retail customers and continued economic weakness in
the areas served, which has reduced sales to commercial and industrial
customers. Both utilities are focused on managing costs to offset the lower
number of customers and lower energy sales forecasts than were included in their
base rate proceedings. Tampa Electric now expects a slower recovery than
previously forecast with the number of customers unchanged from 2008, compared
to the previous forecast of 0.1% customer growth. Absent periods of temperature
extremes, energy sales to residential customers are lower due to voluntary
conservation and the impact of the weak economy. Operations and maintenance
expenses are expected to increase in the fourth quarter due to scheduled
generating unit maintenance periods. Peoples Gas will benefit from higher base
rates that were effective June 18, but expects the weak Florida economy to
continue to reduce sales to commercial and industrial customers. The rate design
approved by the FPSC in Peoples Gas` base rate proceeding makes it less volume
and weather sensitive especially for residential customers.

At TECO Coal, while there have been small improvements in the international
metallurgical coal markets, demand for both metallurgical coal and domestic
steam coal remains weak due to the economic conditions and lower electricity
sales to commercial and industrial customers nationwide. TECO Coal continues to
expect total sales volumes below prior guidance due to the 0.4 million tons of
metallurgical coal that remains unsold and the possible net deferral of up to
0.7 million tons of steam and metallurgical coal from 2009 into 2010 and 2011.
Due to less metallurgical coal in the product mix, the average per-ton selling
price is expected to be $1.00 to $2.00 below the previously provided $73 per ton
guidance. TECO Coal expects the all-in total cost of production to be within the
previously provided range but towards the high end reflecting the lower volume.
TECO Coal`s effective income tax rate is now expected to be near 20% in 2009.

TECO Guatemala previously indicated earnings for 2009 would be lower than 2008
levels and that outlook remains unchanged. Repairs were completed on the San
José Power Station and the unit returned to service July 2. Due to the extended
unplanned outages at the San José Power Station, the capacity payments received
under the contract will be reduced through the remainder of 2009. The selling
price of power generated by the San José Power Station has remained competitive
with other generating resources in Guatemala and the plant has operated above
the contract minimum 65% capacity factor since its return to service, and the
station is expected to run at 65% capacity factor or more for the remainder of
the year. TECO Guatemala benefited from the second quarter adjustment to
previously estimated year-end equity balances, and the DECA II companies
continue to seek opportunities to offset the impact of the 2008 VAD decision.

2010 Business Driver Outlook

Tampa Electric and Peoples Gas are in the process of streamlining the
organizations under a single management team and implementing new organizational
structures following the restructuring actions taken in the third quarter of
2009. These actions are expected to reduce operations and maintenance expenses
in 2010 to offset the approximately $40 million revenue shortfall compared to
the revenue projections filed in their base rate cases to enable the utilities
to earn the authorized returns on equity set in their recent rate cases. Florida
now expects to see a return of economic growth in mid-2010. Tampa Electric and
Peoples Gas will have the full year benefit of the base rate increases
implemented in 2009. In addition, subject to review by the FPSC staff for cost,
in-service and need, Tampa Electric will have the second step increase related
to the five combustion turbine and the rail unloading facilities placed in
service in 2009 effective Jan. 1, 2010. Economists are forecasting a recovery in
the Florida economy starting about the middle of 2010, which is later than
previously forecast. Tampa Electric's 2010 customer growth is now expected to be
less than previously forecast. Peoples Gas expects the number of customers to
remain essentially unchanged in 2010 compared to 2009.

TECO Coal has about 7.8 million tons of expected 2010 production contracted and
priced at an average price of more than $74 per ton. The sold tons are primarily
steam coal and do include some metallurgical and specialty stoker coal. Margins
are expected to improve in 2010 due to lower production costs.

TECO Guatemala expects improved operating and financial performance at the San
José Power Station following the extended unplanned outages in 2009, and as the
contract capacity payments are expected to increase as the 12-month rolling
average capacity factor improves. While there have been hearings in the
Guatemalan courts, and Iberdrola has filed for an international arbitration
panel under the bilateral trade agreement between Spain and Guatemala, the issue
with the VAD remains unresolved with no firm schedule to resolve this matter.
TECO Guatemala has entered negotiations with the Guatemalan regulatory
authorities regarding the September 2010 renewal of the power sales contract for
the Alborada Power Station. If the contract is not renewed the plant would
operate without a contract and sell power in the spot market.

Non-GAAP Presentation

The "Results Reconciliation" table below presents non-GAAP financial results
after elimination of the effects of certain identified gains and charges in the
2009 and 2008 quarterly periods and earnings from the production of synthetic
fuel in the 12-months ended 2008 period. The production of synthetic fuel ended
in December 2007 upon the expiration of the Federal tax credit program
associated with the production of synthetic fuel. This non-GAAP presentation
provides investors additional information to compare 2009 results, which include
no synthetic fuel production, to 12-month ended 2008 results, which included
synthetic fuel production.

Management believes it is helpful to present a non-GAAP measure of performance
that clearly reflects the ongoing operations of TECO Energy's businesses and
which 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, in making decisions that are dependent upon
the profitability of the company's various operating units, and in 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.

Results Reconciliation 3 months ended 9 months ended 12 months ended

(millions)
Sept. 30 Sept. 30 Sept. 30
2009 2008 2009 2008 2009 2008
GAAP net income $ 64.8 $ 58.2 $ 160.4 $ 140.4 $ 182.4 $ 314.3
Exclude discontinued operations -- -- -- -- -- --
GAAP net income from continuing operations $ 64.8 $ 58.2 $ 160.4 $ 140.4 $ 182.4 $ 314.3
Add Restructuring charges 15.4 -- 15.4 -- 15.4 --
Add Project development cost write-off 5.2 -- 5.2 -- 5.2 --
Add TECO Transport transaction costs and final adjustments recorded at TECO Energy parent -- -- -- 0.6 (3.2 ) 3.9
Exclude TECO Transport depreciation -- -- -- -- -- (2.5 )
Exclude gain on TECO Transport sale -- -- -- -- -- (149.4 )
Add parent debt extinguishment -- -- -- -- -- 20.2
Exclude gain on sale of Navega -- -- (8.7 ) -- (8.7 ) --
Add valuation adjustment on auction rate securities 0.2 -- 3.8 -- 3.8 --
Add Tampa Electric waterborne transportation audit adjustment -- -- -- -- 1.9 --
Add taxes on repatriated cash and investments -- -- -- -- 21.6 --
Total charges and gains 20.8 -- 15.7 0.6 36.0 (127.8 )
Non-GAAP results from continuing operations (1) $ 85.6 $ 58.2 $ 176.1 $ 141.0 $ 218.4 $ 186.5
Synthetic fuel cost / (benefit) -- -- -- -- -- 2.2
Non-GAAP results excluding synthetic fuel $ 85.6 $ 58.2 $ 176.1 $ 141.0 $ 218.4 $ 188.7

(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 included or excluded from the most directly
comparable GAAP measure.

Webcast

As previously announced, TECO Energy will host a Webcast with the investment
community at the Edison Electric Institute Financial Conference at 11:15 AM
Eastern time, Tuesday, November 3, 2009. 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 Web
site, 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). Other
subsidiaries include TECO Coal, which owns and operates coal production
facilities in Kentucky and Virginia, and TECO Guatemala, which is engaged in
electric power generation and distribution and energy-related businesses in
Guatemala.

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; 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 price and operating cost changes 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; the ability of TECO Energy's subsidiaries
to operate equipment without undue accidents, breakdowns or failures; changes in
the U.S. federal tax code on earnings from foreign investments that could reduce
earnings; the ability to increase the utilization of the coal-fired San José
Power Station versus competing oil-fired generators during a period of lower oil
prices; and the ultimate outcome of efforts to revise the significantly lower
EEGSA VAD tariff rates implemented by regulatory authorities in Guatemala
effective Aug. 1, 2008 affecting TECO Guatemala's results. Additional
information is contained under "Risk Factors" in TECO Energy, Inc.'s Annual
Report on Form 10-K for the period ended Dec. 31, 2008, and as updated in
periodic filings with the SEC.

Summary Information as of September 30, 2009
3 months 9 months 12 months
ended ended ended
(millions except per share amounts)
2009 2008 2009 2008 2009 2008
Revenues $ 896.3 $ 926.1 $ 2,545.5 $ 2,605.0 $ 3,315.8 $ 3,463.3
Net income $ 64.8 $ 58.2 $ 160.4 $ 140.4 $ 182.4 $ 314.3
Earnings (loss) per share - basic $ 0.30 $ 0.28 $ 0.75 $ 0.67 $ 0.86 $ 1.50

Earnings (loss) per share - diluted $ 0.30 $ 0.27 $ 0.75 $ 0.66 $ 0.86 $ 1.49
Average common shares outstanding - basic 211.9 211.2 211.7 210.4 211.6 210.2
Average common shares outstanding - diluted 213.2 212.6 212.8 211.7 212.6 211.4

TECO ENERGY

SEPTEMBER 2009

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 Nine Months Ended Twelve Months Ended
September 30, September 30, September 30,
(millions except share data) 2009 2008 2009 2008 2009 2008

Revenues
Regulated electric and gas $ 719.3 $ 782.1 $ 2,036.0 $ 2,152.3 $ 2,661.9 $ 2,818.6
Unregulated 177.0 144.0 509.5 452.7 653.9 644.7
Total revenues 896.3 926.1 2,545.5 2,605.0 3,315.8 3,463.3
Expenses
Regulated operations
Fuel 253.5 263.7 707.7 603.5 923.5 810.7
Purchased power 46.3 65.0 144.6 262.8 187.2 327.1
Cost of natural gas sold 47.5 134.9 186.7 387.7 275.7 478.1
Other 87.1 72.9 245.1 216.1 306.7 295.3
Operation other expense
Mining related costs 123.2 108.9 352.6 332.9 460.3 453.5
Waterborne transportation costs 0.0 0.0 0.0 0.0 0.0 42.4
Other 3.5 4.0 11.9 13.9 16.2 19.3
Maintenance 46.3 41.4 144.9 133.0 185.7 179.0
Depreciation and amortization 72.8 66.7 213.8 196.6 283.3 262.0
Restructuring charges 25.0 0.0 25.0 0.0 25.0 0.0
Loss / (Gain) on sale, net of transaction related costs 0.0 0.0 0.0 0.9 0.0 (241.5 )
Taxes, other than income 56.1 52.1 172.4 161.1 222.9 212.0
Total expenses 761.3 809.6 2,204.7 2,308.5 2,886.5 2,837.9
Income from operations 135.0 116.5 340.8 296.5 429.3 625.4
Other income (expense)
Allowance for other funds used during construction 2.5 1.3 8.3 4.3 10.3 5.2
Other income 1.2 7.9 21.3 17.2 25.6 29.2
Loss on debt exchange / extinguishment 0.0 0.0 0.0 0.0 0.0 (32.9 )
Income from equity investments 11.3 18.5 33.0 57.5 48.4 75.6
Total other income 15.0 27.7 62.6 79.0 84.3 77.1
Interest charges
Interest expense 58.2 57.9 173.2 172.7 231.8 234.1
Allowance for borrowed funds used during construction (0.9 ) (0.5 ) (3.2 ) (1.7 ) (4.0 ) (2.0 )
Total interest charges 57.3 57.4 170.0 171.0 227.8 232.1
Income before provision for income taxes 92.7 86.8 233.4 204.5 285.8 470.4
Provision for income taxes 27.9 28.6 73.0 64.1 103.4 173.6
Income before Noncontrolling Interest 64.8 58.2 160.4 140.4 182.4 296.8
Noncontrolling Interest 0.0 0.0 0.0 0.0 0.0 17.5
Net income $ 64.8 $ 58.2 $ 160.4 $ 140.4 $ 182.4 $ 314.3

Average common shares outstanding - basic (millions) 211.9 211.2 211.7 210.4 211.6 210.2
Average common shares outstanding - diluted (millions) 213.2 212.6 212.8 211.7 212.6 211.4

Earnings per average common share outstanding:
Earnings per share -- basic 0.30 0.28 0.75 0.67 0.86 1.50
Earnings per share -- diluted 0.30 0.27 0.75 0.66 0.86 1.49

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

September 30, December 31,
(millions) 2009 2008

Assets
Current assets
Cash and cash equivalents $ 45.5 $ 12.2
Short-term investments 0.0 2.4
Receivables 336.6 285.9
Inventories at average cost
Fuel 131.9 90.2
Materials and supplies 68.7 72.8
Current derivative assets 2.0 0.0
Income tax receivables 0.4 3.5
Prepayments and other current assets 27.4 25.8
Current regulatory assets 115.7 272.6
Total current assets 728.2 765.4
Property, plant and equipment
Utility plant in service
Electric 5,965.5 5,528.3
Gas 1,005.6 964.4
Construction work in progress 330.5 463.5
Other property 369.9 354.8
Property plant and equipment at original cost 7,671.5 7,311.0
Accumulated depreciation (2,193.8 ) (2,089.7 )
Total property, plant and equipment, net 5,477.7 5,221.3
Other assets
Deferred income taxes 247.2 333.8
Other investments 0.0 21.3
Long-term regulatory assets 307.2 325.3
Investment in unconsolidated affiliates 283.8 284.0
Goodwill 59.4 59.4
Long-term derivative assets 0.8 0.1
Deferred charges and other assets 119.9 136.8
Total other assets 1,018.3 1,160.7
Total assets $ 7,224.2 $ 7,147.4

Liabilities and capital
Current liabilities
Long-term debt due within one year
Recourse $ 106.5 $ 5.5
Non-recourse 1.4 1.4
Notes payable 60.0 93.0
Accounts payable 248.9 304.4
Other current liabilities 20.6 15.3
Customer deposits 150.5 144.6
Current derivative liabilities 59.3 132.1
Interest accrued 82.4 45.1
Taxes accrued 58.5 21.2
Current regulatory liabilities 49.1 21.7
Total current liabilities 837.2 784.3
Other liabilities
Investment tax credits 10.9 11.2
Long-term regulatory liabilities 589.9 588.2
Long-term derivative liabilities 3.6 19.4
Deferred credits and other liabilities 515.1 530.0
Long-term debt, less amount due within one year
Recourse 3,195.5 3,199.0
Non-recourse 6.2 7.6
Total other liabilities 4,321.2 4,355.4
Total Liabilities 5,158.4 5,139.7
Capital
Common equity 213.7 212.9
Additional paid in capital 1,527.3 1,518.2
Retained earnings 355.0 322.6
Accumulated other comprehensive loss (30.2 ) (46.0 )
Total capital 2,065.8 2,007.7
Total liabilities and capital $ 7,224.2 $ 7,147.4

Book Value Per Share $ 9.66 $ 9.43

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
September 30, September 30, September 30,
(millions) 2009 2008 2009 2008 2009 2008

Cash flows from operating activities
Net income $ 64.8 $ 58.2 $ 160.4 $ 140.4 $ 182.4 $ 314.3

Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization 72.8 66.7 213.8 196.6 283.3 262.0
Deferred income taxes 27.5 29.8 73.0 69.5 98.8 163.7
Investment tax credits, net (0.1 ) 0.0 (0.3 ) (1.0 ) (0.4 ) (1.5 )
Allowance for other funds used during construction (2.5 ) (1.3 ) (8.3 ) (4.3 ) (10.3 ) (5.2 )
Non-cash stock compensation 3.9 1.8 8.6 7.9 10.4 9.6
Loss / (Gain) on sales of business / assets, pretax 3.1 (0.3 ) (15.5 ) (1.4 ) (15.7 ) (220.3 )
Noncash debt extinguishment / exchange, pretax 0.0 0.0 0.0 0.0 0.0 2.6
Equity in earnings of unconsolidated affiliates, net of cash distributions on earnings (9.5 ) (18.5 ) (9.2 ) (25.3 ) (6.7 ) (36.0 )
Noncontrolling interest 0.0 0.0 0.0 0.0 0.0 (17.5 )
Derivatives marked to market 0.0 0.0 0.0 0.0 0.0 (34.0 )
Deferred recovery clause 28.1 (24.7 ) 111.4 (117.1 ) 112.7 (71.5 )
Receivables, less allowance for uncollectibles (26.9 ) (10.6 ) (50.7 ) (44.6 ) 3.9 45.5
Inventories 9.8 (1.3 ) (37.6 ) (9.2 ) (37.3 ) 15.0
Prepayments and other current assets (2.3 ) (1.1 ) (1.6 ) (3.2 ) (1.2 ) (0.4 )
Taxes accrued 12.0 7.9 39.2 23.6 0.8 (3.3 )
Interest accrued 34.1 32.4 37.1 47.4 2.2 (2.7 )
Accounts payable (17.7 ) (64.6 ) (27.3 ) 12.3 (48.0 ) 24.8
Other 14.8 12.8 46.9 34.1 27.1 20.5
211.9 87.2 539.9 325.7 602.0 465.6

Cash flows from investing activities
Capital expenditures (131.6 ) (136.8 ) (499.4 ) (402.5 ) (686.4 ) (537.2 )
Allowance for other funds used during construction 2.5 1.3 8.3 4.3 10.3 5.2
Net proceeds from sale of business / assets 0.3 3.6 29.5 (3.7 ) 33.8 340.7
Restricted cash 0.3 (0.1 ) 0.5 (0.1 ) 0.5 29.9
Distributions from / (Contributions to) unconsolidated affiliates (0.2 ) 0.0 (0.2 ) 13.2 (0.2 ) 13.8
Other investments 7.4 0.0 17.1 76.2 17.0 103.5
(121.3 ) (132.0 ) (444.2 ) (312.6 ) (625.0 ) (44.1 )

Cash flows from financing activities
Dividends (42.8 ) (42.6 ) (128.1 ) (126.1 ) (170.6 ) (167.2 )
Proceeds from sale of common stock 1.1 0.9 3.5 20.9 4.4 25.1
Proceeds from long-term debt 102.1 (0.1 ) 102.1 327.8 102.1 327.8
Repayment of long-term debt / Purchase in lieu of redemption (5.5 ) (5.7 ) (6.9 ) (293.8 ) (6.9 ) (591.0 )
Debt exchange premiums 0.0 0.0 0.0 0.0 0.0 (21.2 )
Noncontrolling interest 0.0 0.0 0.0 0.0 0.0 21.4
Net increase (decrease) in short-term debt (128.0 ) 13.0 (33.0 ) (12.0 ) 47.0 (60.0 )
(73.1 ) (34.5 ) (62.4 ) (83.2 ) (24.0 ) (465.1 )

Net increase (decrease) in cash and cash equivalents 17.5 (79.3 ) 33.3 (70.1 ) (47.0 ) (43.6 )
Cash and cash equivalents at beginning of period 28.0 171.8 12.2 162.6 92.5 136.1
Cash and cash equivalents at end of period $ 45.5 $ 92.5 $ 45.5 $ 92.5 $ 45.5 $ 92.5

TECO ENERGY, Inc.
SEGMENT INFORMATION (Unaudited)

(millions) Tampa Peoples TECO TECO TECO Other & TECO
Electric Gas Coal Guatemala Transport Eliminations Energy
Three months ended September 30,
2009 Revenues - outsiders $ 620.6 $ 98.7 $ 175.1 $ 1.9 $ - $ - $ 896.3
Sales to affiliates 0.3 2.3 - - - (2.6 ) -
Total revenues 620.9 101.0 175.1 1.9 - (2.6 ) 896.3
Equity Earnings in Unconsolidated Affiliates - - - 11.3 - - 11.3
Depreciation 50.8 11.1 10.6 0.2 - 0.1 72.8
Restructuring charges 18.1 4.5 - - - 2.4 25.0
Total interest charges (1) 29.8 4.6 1.8 3.3 - 17.8 57.3
Allocated interest expense (income) included above (1) - - 1.6 3.2 - (4.8 ) -
Provision (Benefit) for income taxes 31.9 2.2 3.7 1.1 - (11.0 ) 27.9
Net income (loss) from continuing operations $ 54.3 (3) $ 3.4 (4) $ 11.6 $ 8.1 $ - $ (12.6 ) (2) $ 64.8
2008 Revenues - outsiders $ 601.5 $ 180.6 $ 142.0 $ 1.8 $ - $ 0.2 $ 926.1
Sales to affiliates 0.3 - - - - (0.3 ) -
Total revenues 601.8 180.6 142.0 1.8 - (0.1 ) 926.1
Equity Earnings in Unconsolidated Affiliates - - - 18.5 - - 18.5
Depreciation 46.6 10.6 9.3 0.2 - - 66.7
Restructuring charges - - - - - - -
Total interest charges (1) 28.7 4.8 1.7 3.9 - 18.3 57.4
Allocated interest expense (income) included above (1) - - 1.4 3.8 - (5.2 ) -
Provision (Benefit) for income taxes 33.1 1.6 0.4 2.1 - (8.6 ) 28.6
Net income (loss) from continuing operations $ 50.6 $ 2.6 $ 3.7 $ 11.7 $ - $ (10.4 ) $ 58.2
Nine months ended September 30,
2009 Revenues - outsiders $ 1,691.1 $ 344.9 $ 503.4 $ 6.0 0.1 $ 2,545.5
Sales to affiliates 1.0 12.2 - - (13.2 ) -
Total revenues 1,692.1 357.1 503.4 6.0 (13.1 ) 2,545.5
Equity Earnings in Unconsolidated Affiliates - - - 33.0 - 33.0
Depreciation 148.1 32.9 32.0 0.6 0.2 213.8
Restructuring charges 18.1 4.5 - - 2.4 25.0
Total interest charges (1) 86.6 14.1 5.5 9.6 54.2 170.0
Allocated interest expense (income) included above (1) - - 4.8 9.4 (14.2 ) -
Provision (Benefit) for income taxes 69.1 12.3 6.7 10.7 (25.8 ) (6) 73.0
Net income (loss) from continuing operations $ 121.1 $ 19.2 $ 29.7 $ 29.2 (5) $ (38.8 ) (6) $ 160.4
2008 Revenues - outsiders $ 1,608.4 $ 543.9 $ 446.3 $ 6.1 $ - $ 0.3 $ 2,605.0
Sales to affiliates 1.0 - - - - (1.0 ) -
Total revenues 1,609.4 543.9 446.3 6.1 - (0.7 ) 2,605.0
Equity Earnings in Unconsolidated Affiliates - - - 57.5 - - 57.5
Depreciation 136.8 31.2 27.8 0.6 - 0.2 196.6
Restructuring charges - - - - - - -
Total interest charges (1) 86.0 13.5 6.2 11.4 - 53.9 171.0
Allocated interest expense (income) included above (1) - - 5.2 11.2 - (16.4 ) -
Provision (Benefit) for income taxes 65.2 11.4 2.5 6.1 - (21.1 ) 64.1
Net income (loss) from continuing operations 106.7 17.9 15.4 37.1 - (36.7 ) $ 140.4
Twelve months ended September 30,
2009 Revenues - outsiders $ 2,172.5 $ 489.3 $ 645.4 $ 8.3 $ - $ 0.3 $ 3,315.8
Sales to affiliates 1.3 12.3 - - - (13.6 ) -
Total revenues 2,173.8 501.6 645.4 8.3 - (13.3 ) 3,315.8
Equity Earnings in Unconsolidated Affiliates - - - 48.0 - 0.4 48.4
Depreciation 196.9 43.6 41.8 0.8 - 0.2 283.3
Restructuring charges 18.1 4.5 - - - 2.4 25.0
Total interest charges (1) 115.3 18.8 7.3 13.5 - 72.9 227.8
Allocated interest expense (income) included above (1) - - 6.3 13.2 - (19.5 ) -
Provision (Benefit) for income taxes 85.8 18.1 6.5 19.4 - (26.4 ) (6) 103.4
Net income (loss) from continuing operations $ 150.0 (7) $ 28.5 $ 32.4 $ 28.9 (5) $ - $ (57.4 ) (6)(8) $ 182.4
2008 Revenues - outsiders $ 2,132.9 $ 685.7 $ 594.1 $ 8.2 $ 42.1 $ 0.3 $ 3,463.3
Sales to affiliates 1.5 - - - 17.0 (18.5 ) -
Total revenues 2,134.4 685.7 594.1 8.2 59.1 (18.2 ) 3,463.3
Equity Earnings in Unconsolidated Affiliates - - - 75.6 - - 75.6
Depreciation 182.2 41.4 37.3 0.8 - 0.3 262.0
Restructuring charges - - - - - - -
Total interest charges (1) 114.1 17.7 9.4 15.3 0.9 74.7 232.1
Allocated interest expense (income) included above (1) - - 8.2 15.1 0.9 (24.2 ) -
Provision (Benefit) for income taxes 81.3 15.0 11.6 8.9 2.3 54.5 173.6
Net income (loss) from continuing operations $ 135.7 $ 24.2 $ 22.6 $ 48.6 $ 7.0 $ 76.2 (9)(10) $ 314.3

(1) Segment net income is reported on a basis that includes internally allocated financing costs. Allocated interest is included in "Total interest charges".
(2) Results for the 3 months ended Sep. 30, 2009 include a $0.2 million loss related to the sale of the auction rate security and $1.5 million after-tax restructuring costs.
(3) Results for the 3 months ended Sep. 30, 2009 include a $5.2 million write-off related to project development costs and $11.1 million after-tax restructuring costs.
(4) Results for the 3 months ended Sep. 30, 2009 include $2.8 million after-tax restructuring costs.
(5) Results for the 9 and 12 months ended Sep. 30, 2009 include a $8.7 million gain related to the sale of Navega in the first quarter of 2009. Additionally, the 12 months ended Sep. 30, 2009 results include $9.6 million in taxes related to the repatriated cash and investments from Guatemala in the fourth quarter of 2008.
(6) Results for the 9 and 12 months ended Sep. 30, 2009 include a $3.6 million loss related to the sale of auction rate securities in the first quarter of 2009. Additionally, the 12 months ended Sep. 30, 2009 includes a $12.0 million valuation allowance in consolidated income taxes related to the cash and investments repatriated from Guatemala in the fourth quarter of 2008.
(7) Results for the 12 months ended Sep. 30, 2009 include a $1.9 million after-tax charge related to a settlement in the fourth quarter of 2008 with the Florida Public Service Commission Staff of issues involving waterborne coal transportation services provided by a former affiliate company (TECO Transport).
(8) Results for the 12 months ended Sep. 30, 2009 include a $3.2 million tax benefit booked in the fourth quarter of 2008 related to the sale of TECO Transport.
(9) Results for the 12 months ended Sep. 30, 2008 include $3.9 million in after-tax transaction costs related to the sale of TECO Transport ($3.3 million in the fourth quarter of 2007, and $0.6 million in the first quarter of 2008).
(10) Results for the 12 months ended Sep. 30, 2008 include the $149.4 million gain on the sale of TECO Transport and $20.2 million of debt extinguishment costs.

TAMPA ELECTRIC COMPANY
ELECTRIC OPERATING STATISTICS (Unaudited)

Operating Revenues* Sales -- Kilowatt-hours*
Three Months Ended September 30, Percent Percent
2009 2008 Change 2009 2008 Change

Residential $ 325,123 $ 299,293 8.6 2,677,315 2,638,801 1.5
Commercial 183,210 176,289 3.9 1,747,816 1,784,064 (2.0 )
Industrial -- Phosphate 20,071 14,323 40.1 217,686 208,324 4.5
Industrial -- Other 26,821 28,155 (4.7 ) 271,505 326,992 (17.0 )
Other sales of electricity 52,246 49,387 5.8 492,839 494,476 (0.3 )

607,471 567,447 7.1 5,407,161 5,452,657 (0.8 )

Deferred and other revenues (7,797 ) (276 ) -- -- -- --
Sales for resale 8,341 18,334 (54.5 ) 81,111 241,394 (66.4 )
Other operating revenue 12,900 11,766 9.6 -- -- --
SO2 Allowance Sales - 4,633 (100.0 ) -- --
$ 620,915 $ 601,904 3.2 5,488,272 5,694,051 (3.6 )

Average customers 666,464 666,164 0.0 -- -- --

Retail Net Energy For Load 5,722,363 5,729,058 (0.1 )

Total Degree Days 1,673 1,525 9.7

Operating Revenues* Sales -- Kilowatt-hours*
Nine Months Ended September 30, Percent Percent
2009 2008 Change 2009 2008 Change

Residential $ 833,787 $ 753,544 10.6 6,622,089 6,570,333 0.8
Commercial 522,749 485,634 7.6 4,711,266 4,873,600 (3.3 )
Industrial -- Phosphate 60,896 47,412 28.4 684,834 693,125 (1.2 )
Industrial -- Other 85,445 85,827 (0.4 ) 830,725 957,065 (13.2 )
Other sales of electricity 152,709 138,804 10.0 1,357,679 1,377,059 (1.4 )

1,655,586 1,511,221 9.6 14,206,593 14,471,182 (1.8 )

Deferred and other revenues (32,919 ) 5,495 (699.1 ) -- -- --
Sales for resale 33,541 53,515 (37.3 ) 347,764 661,194 (47.4 )
Other operating revenue 35,803 32,657 9.6 -- -- --
SO2 Allowance Sales 93 6,595 (98.6 ) -- -- --
$ 1,692,104 $ 1,609,483 5.1 14,554,357 15,132,376 (3.8 )

Average customers 666,716 667,574 (0.1 ) -- -- --

Retail Net Energy For Load 15,185,734 15,362,654 (1.2 )

Total Degree Days 3,511 3,261 7.7

Operating Revenues* Sales -- Kilowatt-hours*
Twelve Months Ended September 30, Percent Percent
2009 2008 Change 2009 2008 Change

Residential $ 1,061,957 $ 989,802 7.3 8,598,224 8,618,365 (0.2 )
Commercial 676,086 647,645 4.4 6,236,385 6,488,593 (3.9 )
Industrial -- Phosphate 79,548 65,978 20.6 960,844 960,489 0.0
Industrial -- Other 110,859 114,573 (3.2 ) 1,109,395 1,275,035 (13.0 )
Other sales of electricity 199,624 185,382 7.7 1,820,168 1,835,867 (0.9 )

2,128,074 2,003,380 6.2 18,725,016 19,178,349 (2.4 )

Deferred and other revenues (56,707 ) (23,529 ) 141.0 -- -- --
Sales for resale 49,710 70,650 (29.6 ) 570,541 895,764 (36.3 )
Other operating revenue 47,493 42,902 10.7 -- -- --
SO2 Allowance Sales 5,293 41,011 (87.1 ) -- -- --
$ 2,173,863 $ 2,134,414 1.8 19,295,557 20,074,113 (3.9 )

Average customers 666,623 667,703 (0.2 ) -- -- --

Retail Net Energy For Load 19,721,865 20,116,635 (2.0 )

Total Degree Days 4,173 4,079 2.3

* in thousands

PEOPLES GAS SYSTEM
GAS OPERATING STATISTICS (Unaudited)

Operating Revenues* Therms*
Three Months Ended September 30, Percent Percent
2009 2008 Change 2009 2008 Change

By Customer Segment:
Residential $ 24,973 $ 26,582 (6.1) 9,947 10,724 (7.2)
Commercial 29,072 34,104 (14.8) 83,262 82,075 1.4
Industrial 1,723 1,855 (7.1) 41,548 44,381 (6.4)
Off System Sales 31,905 105,430 (69.7) 82,763 99,018 (16.4)
Power generation 2,397 2,869 (16.5) 158,994 134,318 18.4
Other revenues 8,739 7,815 11.8 - - --
$ 98,809 $ 178,655 (44.7) 376,514 370,516 1.6

By Sales Type:
System supply $ 69,693 $ 151,262 (53.9) 104,049 122,544 (15.1)
Transportation 20,377 19,579 4.1 272,465 247,972 9.9
Other revenues 8,739 7,814 11.8 - - --
$ 98,809 $ 178,655 (44.7) 376,514 370,516 1.6

Average customers 333,034 334,077 (0.3) -- -- --

Operating Revenues* Therms*
Nine Months Ended September 30, Percent Percent
2009 2008 Change 2009 2008 Change

By Customer Segment:
Residential $ 111,440 $ 107,536 3.6 56,740 53,329 6.4
Commercial 109,561 116,534 (6.0) 284,924 279,855 1.8
Industrial 5,707 6,345 (10.1) 133,837 144,534 (7.4)
Off System Sales 84,615 271,810 (68.9) 195,948 259,668 (24.5)
Power generation 7,752 10,028 (22.7) 412,026 373,963 10.2
Other revenues 31,701 26,244 20.8 - - --
$ 350,776 $ 538,497 (34.9) 1,083,475 1,111,349 (2.5)

By Sales Type:
System supply $ 252,937 $ 445,620 (43.2) 295,232 357,476 (17.4)
Transportation 66,138 66,633 (0.7) 788,243 753,873 4.6
Other revenues 31,701 26,244 20.8 - - --
$ 350,776 $ 538,497 (34.9) 1,083,475 1,111,349 (2.5)

Average customers 334,720 335,496 (0.2) -- -- --

Operating Revenues* Therms*
Twelve Months Ended September 30, Percent Percent
2009 2008 Change 2009 2008 Change

By Customer Segment:
Residential $ 154,361 $ 139,128 10.9 77,788 69,851 11.4
Commercial 148,581 151,861 (2.2) 380,951 371,366 2.6
Industrial 7,605 8,679 (12.4) 178,984 188,863 (5.2)
Off System Sales 130,306 330,423 (60.6) 260,063 336,787 (22.8)
Power generation 10,391 13,464 (22.8) 493,507 490,696 0.6
Other revenues 41,954 34,958 20.0 - - --
$ 493,198 $ 678,513 (27.3) 1,391,293 1,457,563 (4.5)

By Sales Type:
System supply $ 363,294 $ 554,520 (34.5) 395,531 465,817 (15.1)
Transportation 87,950 89,035 (1.2) 995,762 991,746 0.4
Other revenues 41,954 34,958 20.0 - - --
$ 493,198 $ 678,513 (27.3) 1,391,293 1,457,563 (4.5)

Average customers 334,557 335,027 (0.1) -- -- --

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

Copyright Business Wire 2009