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):
February 29, 2000
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
Page 1
Item 5. Other Events
See the Press Release dated Feb. 29, 2000, filed as Exhibit
99.1 and incorporated herein by reference, announcing Tampa
Electric Company's agreement with the U.S. Environmental Protection
Agency and the U.S. Department of Justice to resolve the federal
agencies' pending enforcement actions against the company.
Item 7. Financial Statements and Exhibits
(c) Exhibits
99.1 Press Release dated Feb. 29, 2000.
Page 2
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: Feb. 29, 2000 TECO Energy, Inc.
By:/s/ W. L. Griffin
W. L. Griffin
Vice President-Controller,
(Principal Accounting Officer)
Page 3
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: Feb. 29, 2000 TECO Energy, Inc.
By:
W. L. Griffin
Vice President-Controller,
(Principal Accounting Officer)
Page 3
INDEX TO EXHIBITS
Exhibit No. Description of Exhibits Page No.
99.1 Press Release dated Feb. 29, 2000 5
Page 4
[TAMPA ELECTRIC Logo]
CONTACT: Laura Plumb
Work: 813.228.1572
Home: 813.259.9919
E-mail: [email protected]
TAMPA ELECTRIC REACHES AGREEMENT WITH EPA,
DEPARTMENT OF JUSTICE ON ENVIRONMENTAL ISSUES
Tampa, Fla., Feb. 29, 2000 _ Tampa Electric Company, the
U.S. Environmental Protection Agency and the U.S. Department of
Justice announced today they have resolved the federal agencies'
pending enforcement actions against the company, which were filed
last year.
The resolution, which is in the form of a consent decree,
will result in full and final settlement of the November 1999
federal litigation and Notices of Violation alleging violations
of NSR requirements under the Clean Air Act. It will be lodged
with the U.S. District Court in Tampa.
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TAMPA ELECTRIC _ 2
The agreement is substantially the same as Tampa Electric's
earlier agreement with the Florida Department of Environmental
Protection with respect to environmental controls and pollution
reductions. It was developed over six months of negotiations
with the agencies.
While the federal consent decree provides significant
additional details for the implementation by Tampa Electric of
various requirements, the terms of the federal and state
agreements result in substantially the same environmental
controls and pollution reductions.
_We're extremely pleased to have resolved the concerns of
EPA and the Department of Justice,_ said Tampa Electric President
John Ramil. _This consent decree strengthens our historic
environmental plan developed with DEP, and it satisfies
environmental regulators on both the state and federal levels._
Under the consent decree, announced today in Washington,
D.C., Tampa Electric will commit to a comprehensive cleanup
program that will dramatically decrease overall emissions from
the company's power plants.
_This agreement makes Tampa Electric the first utility in
the nation to respond to EPA's coal-fired utility initiative,_
added Ramil, _and we're doing so in a way that benefits our
customers, our community and our environment._
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TAMPA ELECTRIC _ 3
BACKGROUND
On Nov. 3, the Department of Justice filed lawsuits against
seven midwestern and southern utilities, including Tampa
Electric, to install additional pollution control devices on
coal-fired generation units.
The EPA then issued Notices of Violation under its Coal-
Fired Utility Initiative to those same companies. This triggered
a 30-day window of time in which state environmental regulators
were to step in to implement the needed emissions reductions.
On Dec. 7, 1999, Tampa Electric and the Florida Department
of Environmental Protection announced a 10-year environmental
program, which was hailed by Florida Governor Jeb Bush as _the
largest pollution reduction achievements that this state has seen
in the last quarter century._
COMPLIANCE PLAN COMPARISON
The centerpiece of the EPA/Department of Justice consent
decree, like the DEP agreement, is the $600-million conversion of
Tampa Electric's Gannon Station from coal to natural gas by
installing high-efficiency, combined-cycle technology.
The agreements call for all of Gannon's coal-fired
operations to eventually cease, with the station's Units 1, 2 and
6 shutting down in 2004, and Units 3, 4 and 5 being repowered
with combined-cycle technology fired by natural gas.
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TAMPA ELECTRIC _ 4
The repowered plant will be renamed Bayside Power Station
and by 2004 will provide 1,475 megawatts of natural gas-fueled
electric energy.
In addition, Tampa Electric's comprehensive environmental
plans with both the EPA/Department of Justice and DEP call for
the company to:
Reduce sulfur dioxide (SO2) emissions by more than 85 percent and
emissions of oxides of nitrogen (NOx) by 85 percent by the
year 2010 from 1997 levels.
Maximize the efficiency and availability of the new SO2-removing
scrubber for Units 1 and 2 at Tampa Electric's coal-fired Big
Bend Station _ its largest power plant _ to target a 95
percent sulfur removal efficiency and 100 percent
availability, except under specific circumstances.
Develop a plan to maximize efficiency and availability of the
scrubber serving Big Bend Unit 3 in a manner similar to Big
Bend Units 1 and 2.
Achieve major NOx emission reductions by 2010 from the Big Bend
Station units by installing NOx controls, repowering or
shutting down units, with significant emissions reductions as
early as 2007.
Invest up to $9 million for early NOx reductions and for
demonstrating innovative technologies for reducing NOx
emissions at Big Bend and other power plants.
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TAMPA ELECTRIC - 5
Cooperate with DEP on its Bay Regional Air Chemistry Experiment
program that studies nitrogen deposition in Tampa Bay,
including contributing up to $2 million.
Tampa Electric said its environmental plan will also result
in significant reductions in carbon dioxide and other greenhouse
gases. The repowering of Gannon Station alone will result in a
more than 25 percent reduction in carbon dioxide emissions from
1997 levels.
The company has signed a memorandum of agreement with
Environmental Resources Trust, Inc. (ERT) to provide independent
tracking and verification of greenhouse gas emissions reductions,
including carbon dioxide.
_By setting up a comprehensive system for tracking Tampa
Electric's greenhouse gas emissions and reductions, ERT is hoping
to help the company establish its greenhouse gas emissions
performance,_ said Ben Feldman, ERT's Greenhouse Gas Market
Development Project Director. _We think that will provide an
important service both to the company and the public._
_By asking an independent environmental group like ERT to
provide this service, Tampa Electric is signaling its commitment
to such performance,_ added Feldman.
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TAMPA ELECTRIC _ 6
According to the EPA/Department of Justice consent decree,
incremental emissions credits allocated to Tampa Electric as a
result of the emissions reductions may not be sold by the company
but can be kept each year for the company's own use.
The EPA/Department of Justice agreement also requires Tampa
Electric to pay $3.5 million in penalties in exchange for
resolution of the litigation and the violations issued by EPA and
the Department of Justice in November 1999.
According to Ramil, the company has always complied with the
Clean Air Act and its permitting requirements and the historical
interpretation of its rules, but has agreed to settle this matter
and pay the penalties to avoid lengthy and costly litigation with
an uncertain outcome.
_Two to three years of litigation would not have been in the
best interest of our customers, our shareholders or the
environment,_ said Ramil. _In addition to avoiding costly
litigation, we can now move ahead in this new positive direction
for our company and our community._
Tampa Electric is the principal subsidiary of TECO Energy,
Inc. (NYSE: TE). TECO Energy is a diversified, energy-related
utility holding company also based in Tampa. In addition to Tampa
Electric, its principal businesses include Peoples Gas, TECO
Power Services, TECO Transport, TECO Coal, TECO Coalbed Methane,
and Bosek, Gibson and Associates.
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