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):
December 17, 1998
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 and 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 Dec. 17, 1998, filed as Exhibit
99.1 and incorporated herein by reference, reporting on fourth
quarter 1998 earnings expectations.
Item 7. Financial Statements, Pro Forma Financial Information
and Exhibits.
(c) Exhibits
99.1 Press release dated Dec. 17, 1998.<PAGE>
SIGNATURES
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.
December 17, 1998 TECO ENERGY, INC.
By: /s/ G.L. Gillette
G.L. Gillette
Vice President-Finance and
Chief Financial Officer
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EXHIBIT INDEX
Page
99.1 Press release dated Dec. 17, 1998. 5
[TECO Energy, Inc. Letterhead] Exhibit 99.1
Contact: Mike Mahoney
Office: (813) 228-4271
Internet: http://www.tecoenergy.com
TECO ENERGY MANAGEMENT COMMENTS ON 4TH QUARTER EVENTS AFFECTING
1998 EARNINGS
TAMPA, Dec. 17, 1998 -- TECO Energy, Inc. (NYSE/TE) today
reported that fourth quarter earnings will be impacted by a number
of factors, resulting in lower than expected earnings for the year.
Chairman and Chief Executive Officer Girard F. Anderson said,
"While our regulated and unregulated businesses remain strong,
several of our companies have been affected late in the year by
unfavorable weather and unanticipated circumstances, changing our
earnings expectations for the fourth quarter." As a result, TECO
Energy's earnings from continuing operations before one-time gains
and charges are now expected to be slightly ahead of last year.
Unusually warm weather in the fourth quarter has reduced
demand at the Peoples Gas companies, partially offsetting otherwise
strong customer growth in 1998. TECO Transport now expects its
1998 operating results to be only slightly better than last year's,
as its river and ocean barging operations were affected in the
fourth quarter by the two Gulf of Mexico hurricanes, lower than
expected grain loadings, and a vessel incident.
Fourth quarter earnings will also be affected by a one-time
charge at Tampa Electric resulting from a recent Florida Public
Service Commission (FPSC) decision regarding recovery of certain
BTU quality adjustments for coal purchases since 1993. Pending
receipt of the FPSC's final order, management anticipates an after-
tax charge to earnings of 3 - 4 cents per share.
-continued-
In addition, based on reduced prices for natural gas and other
adverse business developments reported by American Resources
Offshore, Inc. ("ARO"), the company is reevaluating the
collectibility of its $18.5 million note from ARO. This note and
$39 million in cash were received by the company in connection with
the March 1998 sale of the offshore oil and gas assets of its
discontinued TECO Oil & Gas business.
Anderson said that, "The temporary factors impacting fourth
quarter earnings do not alter our long-term view of the company.
We have implemented sound strategies to significantly grow our
regulated and diversified businesses, and we remain committed to
our goal of six to eight percent earnings growth over the long-
term."
TECO Energy is a diversified energy-related holding company
headquartered in Tampa, Florida. Its principal businesses are
Tampa Electric, Peoples Gas System, TECO Transport, TECO Coal, TECO
Coalbed Methane, TECO Power Services, Peoples Gas Company, Bosek,
Gibson and Associates and TeCom.
This press release contains forward-looking statements which
are subject to the inherent uncertainties in predicting future
results and conditions. Certain factors that could cause actual
results to differ materially from those projected in these forward-
looking statements include the following: general economic
conditions, particularly those in Tampa Electric's service area
affecting energy sales; weather variations affecting energy sales
and operating costs; potential competitive changes in the electric
and gas industries, particularly in the area of retail competition;
regulatory actions affecting Tampa Electric and Peoples Gas System;
commodity price changes affecting the competitive positions of
Tampa Electric and the Peoples Gas companies as well as the margins
at TECO Coalbed Methane and TECO Coal; and changes in and
compliance with environmental regulations that may impose
additional costs or curtail some activities. These factors are
discussed more fully under _ Investment Considerations_ in the
company's Annual Report on Form 10-K for the year ended December
31, 1997, and reference is made thereto.
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