SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
September 25, 1996
TECO ENERGY, INC.
(Exact name of registrant as specified in its charter)
FLORIDA 1-8180 59-2052286
(State or other jurisdiction (Commission file (IRS Employer
of incorporation) Number) Identification No.)
702 North Franklin Street, Tampa Florida 33602
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (813) 228-4111
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Item 5. Other Events
See the Press Release dated September 25, 1996, filed as Exhibit
99.1 and incorporated herein by reference, describing the agreement
among Tampa Electric Company, the Office of Public Counsel and the
Florida Industrial Power Users Group which, subject to Florida Public
Service Commission approval, resolves all regulatory issues related to
a prudence review of Tampa Electric Company s Polk Power Station,
extends the current base rate freeze through 1999 and provides for a
temporary reduction in base rates.
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Item 7. Financial Statements and Exhibits
(c) Exhibits
99.1 Press Release dated September 25, 1996.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
Dated: September 25, 1996 TECO Energy, Inc.
By:/s/ S. W. Callahan
S. W. Callahan
Treasurer
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INDEX TO EXHIBITS
Exhibit No. Description of Exhibits Page No.
99.1 Press Release dated September 25, 1996 6
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TECO Energy Letterhead
FOR IMMEDIATE RELEASE
Contact: Mike Mahoney
Office: 813 228-4271
Home: 813 991-6229
TAMPA ELECTRIC ANNOUNCES AGREEMENT ON ALL POLK POWER STATION
REGULATORY ISSUES AND AN EXTENSION OF A PRICE FREEZE PLAN
TAMPA, Sept. 25, 1996 -- Tampa Electric Company announced
today that it has reached agreement with the Florida Office Of
Public Counsel ( OPC ) and the Florida Industrial Power Users
Group ( FIPUG ) on a plan which resolves, subject to Florida
Public Service Commission ( FPSC ) approval, all of the pending
regulatory issues associated with the company s new, state-of-
the-art Polk Power Station.
The agreement provides for full recovery of all of the
expected capital costs and operation and maintenance expenses
associated with the Polk Power Station. It also provides for an
extension through 1999 of the rate freeze currently in effect and
additional reductions to customers bills.
Said Tampa Electric President Keith Surgenor, By resolving
all of the remaining regulatory issues and building on our
existing agreement, we have achieved our goal of bringing our
clean, highly efficient plant into service without increasing
prices. Upon approval of this new plan, shareholders will
benefit from the opportunity for Tampa Electric to earn a fair
return on our investment and customers will benefit from stable
rates for the next three years.
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The agreement calls for Tampa Electric s base rates to
remain frozen at current levels through Dec. 31, 1999, which
represents a one-year extension to the rate freeze agreement
approved by the FPSC in April. Tampa Electric will have the
option of filing an application with the FPSC on or after July 1,
1999 for authorization to adjust base rates after Jan.1, 2000.
Customers will benefit from a $25 million temporary base
rate reduction to be reflected as a credit on monthly customer
bills over a 15-month period beginning Oct. 1, 1997. This
temporary rate reduction will be netted against refunds which
might otherwise have been made in 1999 under the existing rate
freeze plan.
The new agreement leaves intact the $25 million refund under
the company s existing rate freeze plan which will be credited to
customer bills over the 12-month period commencing Oct. 1, 1996.
It also provides for the possibility of additional refunds in the
year 2000.
Under the new agreement, which closely parallels the
company s existing 1996-1998 rate freeze plan, 60 percent of the
revenues generated in 1999 which contribute to a return on equity
( ROE ) above 12.00 percent will be refunded to customers in 2000
along with any 1999 revenues which contribute to an ROE above
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12.75 percent. The remaining revenues generated in 1999 will be
retained by the company.
The actual capital cost associated with the Polk Power
Station project to be included in Tampa Electric s rate base
under the agreement will be an amount not to exceed one percent
above the $506 million estimate presented by Tampa Electric in
the prudence hearing. In addition, Tampa Electric agreed to
remove from rate base the $5 million investment it has made in
land at Port Manatee. This land will continue to be recorded as
an asset of Tampa Electric. A citizens siting task force
recommended using previously mined land in Polk County over the
Port Manatee site as the preferred location for the new power
station.
Tampa Electric, OPC and FIPUG will promptly petition the
FPSC for approval of the agreement.
Tampa Electric is a regulated public utility with over one-
half million customers in a 2,000 square mile service area that
includes nearly all of Hillsborough County and parts of Polk,
Pasco and Pinellas counties. Tampa Electric is the principal
subsidiary of TECO Energy, Inc., a diversified, energy-related
holding company also based in Tampa.
(30)
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