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Exhibit 99.1
[TECO ENERGY LOGO]
FOR IMMEDIATE RELEASE
CONTACT: MEDIA: INVESTORS:
Laura Plumb Mark Kane
813.228.1572 813.228.1772
TECO POWER SERVICES TO INVEST $330 MILLION IN TWO INDEPENDENT
POWER PROJECTS; TECO ENERGY ELECTS NEW BOARD MEMBER
TAMPA, FLA., OCTOBER 30, 2000 - TECO Energy today announced that its TECO Power
Services subsidiary is acquiring GenPower's interests in two independent power
projects being developed by the company in Arkansas and Mississippi. The
combined capacity of the two plants will be nearly 1,200 megawatts. TPS' equity
investment in the projects is expected to be approximately $330 million.
TECO Energy Chairman and CEO Robert Fagan said, "This is a significant step
forward for us in the independent power business. With this transaction, TPS
has ownership interests in nearly 3,200 megawatts worldwide, operating or under
development, most of which are in domestic, restructured markets. TECO Energy
is moving aggressively toward our transition from a predominately regulated
energy company to one that is competing effectively in emerging competitive
markets."
TPS President Rick Ludwig said, "These are excellent projects scheduled for
commercial service during the second half of 2002. These plants are located in
a region of the country enjoying healthy load growth, and they are
strategically situated to sell into that region's load centers. In 2003, the
first full year of operations, we expect these projects to significantly
increase TPS' contribution to TECO Energy's growth."
The two 599-megawatt facilities, known as the McAdams and Dell projects, will
be natural gas-fired, combined-cycle plants employing GE 7F technology. Both
projects will be interconnected with the Entergy transmission system and will
be able to sell electricity to wholesale customers in the Southeast and
Midwest, including the states of Arkansas, Louisiana, Mississippi, Alabama,
Georgia,
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Tennessee and Kentucky. Each plant is expected to begin commercial operation
during the second half of 2002.
"These projects are a continuation of TECO Energy's growth strategy for our
independent power business, and just one part of the pipeline of projects that
we are now developing," said Fagan.
TPS has ownership interests in nearly 3,200 megawatts operating or under
construction worldwide. Of this total, TPS has brought more than 400 megawatts
online so far in 2000, with an additional 200 megawatts to be in service by
summer 2001.
FINANCIAL SUMMARY
TECO Energy Chief Financial Officer Gordon Gillette said, "The financing for
these projects will be typical for the independent power business. We will use
a variety of financing means for the projects' short-term capital needs and
longer-term project financing. During construction, we will utilize 100 percent
debt construction financing, much of which will be non-recourse. At commercial
operation, the $330-million project equity investment will be financed through
cash flows from operations and other external financing at the TECO Energy
level."
TECO Energy is in the midst of executing an overall financing plan to fund many
of its recent investments, including the recently completed TPS projects and
Tampa Electric's Bayside Power Station. TECO Energy has been in the capital
markets for debt this year and expects to be in the market soon for hybrid
securities and possibly equity.
The projects are expected to be accretive in 2003, the first full year of
operation.
"This acquisition will be an important contributor to the 10 percent core
earnings growth that we have been targeting for the longer term," added
Gillette.
NEW BOARD MEMBER
TECO Energy also announced that William D. Rockford has been named to its Board
of Directors. Rockford is a former Chase Manhattan executive, with a 28-year
career specializing in global project finance and the power industry.
Fagan said, "TECO Energy is fortunate that Bill Rockford has joined our Board
of Directors, and his qualifications are a perfect match for our business
strategy, with aggressive plans to grow our independent power company."
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Among other senior-level positions at Chase Manhattan Corporation, Rockford
served as vice president of the Project Finance Division, senior vice president
of the Global Power Division, and co-head of the Power and Utilities group.
While employed at Chase Securities, Inc., Rockford was involved in several
power industry merger and acquisition transactions and was responsible for all
corporate finance activity for the company's power industry clients.
ABOUT TECO ENERGY
TECO Energy (NYSE:TE) is a diversified, energy-related holding company
headquartered in Tampa. Its principal businesses are Tampa Electric, Peoples
Gas, TECO Power Services, TECO Transport, TECO Coal, TECO Coalbed Methane, TECO
Propane Ventures and TECO Solutions. TECO Power Services, its independent power
business, builds, owns and operates electric generation facilities, and pursues
opportunities in electric distribution and transmission in high-growth areas of
North and Central America.
For more information, visit TPS at WWW.TECOPOWERSERVICES.COM and TECO Energy's
newsroom and investor relations' pages at WWW.TECOENERGY.COM.
Note: 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: TPS'
ability to successfully complete its projects on schedule and within budget;
TECO Energy's ability to find and successfully implement attractive investments
in unregulated businesses; interest rates and other factors that could impact
TECO Energy's ability to obtain access to sufficient capital on satisfactory
terms; general economic conditions, particularly those affecting energy sales;
weather variations affecting energy sales and operating costs; potential
competitive changes in the electric industry, commodity price changes; energy
price changes affecting TPS' merchant plants; changes in law or regulation
impacting the receipt of Section 29 synthetic fuel tax credits; and changes in
and compliance with environmental regulations that may impose additional costs
or curtail some activities. Some of 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, 1999, and reference is made thereto.
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