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EXHIBIT 12
TECO ENERGY, INC.
RATIO OF EARNINGS TO FIXED CHARGES
The following table sets forth the company's ratio of earnings to fixed
charges for the periods indicated.
<TABLE>
<CAPTION>
SIX MONTHS TWELVE MONTHS YEAR ENDED DECEMBER 31,
ENDED ENDED ------------------------------------------------------------------
JUNE 30, 2000 JUNE 30, 2000 1999 1998 1997 1996 1995
------------- ------------- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C>
2.79x 2.90 x (1) 3.25x(2) 3.67x(3) 3.77x(4) 3.72x 3.50x
</TABLE>
For the purposes of calculating these ratios, earnings consist of
income from continuing operations before income taxes and fixed charges. Fixed
charges consist of interest on indebtedness, amortization of debt premium, the
interest component of rentals and preferred stock dividend requirements.
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(1) Includes the effect of non-recurring pretax charges totaling $21.0
million recorded in the third and fourth quarters of 1999. Charges
consisted of the following: $10.5 million recorded at Tampa Electric
based on FPSC audits of its 1997 and 1998 earnings which limited its
equity ratio to 58.7 percent; $3.5 million at Tampa Electric to resolve
litigation filed by the U.S. Environmental Protection Agency; $6.0
million at TECO Investments to adjust the carrying value of certain
leveraged leases; and $4.3 million at Tampa Electric and $3.3 million
net benefit at TECO Energy for corporate income tax settlements related
to prior years' tax returns. The effect of these charges was to reduce
the ratio of earnings to fixed charges. Had these charges been excluded
from the calculation, the ratio of earning to fixed charges would have
been 3.18x for the twelve-months ended June 30, 2000.
(2) Includes the effect of non-recurring pretax charges totaling $21.0
million recorded at Tampa Electric, TECO Investments and TECO Energy
described in (1) above. The effect of these charges was to reduce the
ratio of earnings to fixed charges. Had these charges been excluded
from the calculation, the ratio of earnings to fixed charges would have
been 3.60x for the year ended Dec. 31, 1999.
(3) Includes the effect of non-recurring pretax charges totaling $30.5
million associated with write-offs at TECO Coal and Tampa Electric, and
$.6 million pretax of merger-related costs. The effect of these charges
was to reduce the ratio of earnings to fixed charges. Had these charges
been excluded from the calculation, the ratio of earnings to fixed
charges would have been 3.95x for the year ended Dec. 31, 1998.
(4) Includes a $2.6-million pretax charge for all costs associated with the
mergers completed in June 1997. The effect of this charge was to reduce
the ratio of earnings to fixed charges. Had this charge been excluded
from the calculation, the ratio of earnings to fixed charges would have
been 3.79x for the year ended Dec. 31, 1997.
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