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):
March 25, 1996
TAMPA ELECTRIC COMPANY
(Exact name of registrant as specified in its charter)
FLORIDA 1-5007 59-0475140
(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<PAGE>
Item 5. Other Events
See the Press Release dated March 25, 1996, filed as Exhibit
99.1 and incorporated herein by reference, describing the
agreement between the Company, the Office of Public Counsel and
the Florida Industrial Power Users Group on a multi-year base
rate freeze, revenue deferral and refund plan for the Company.
Page 2<PAGE>
Item 7. Financial Statements and Exhibits
(C) Exhibits
99.1 Press Release dated March 25, 1996.
Page 3<PAGE>
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: March 25, 1996 Tampa Electric Company
By:/s/ A. D. Oak
A. D. Oak
Vice President-Treasurer
And Chief Financial
Officer
Page 4<PAGE>
INDEX TO EXHIBITS
Exhibit No. Description of Exhibits Page No.
99.1 Press Release dated March 25, 1996 6
Page 5<PAGE>
EXHIBIT 99.1
[TAMPA ELECTRIC COMPANY LETTERHEAD]
FOR IMMEDIATE RELEASE
Contact: Mike Mahoney
Office: 813/228-4271
Home: 813/991-6229
TAMPA ELECTRIC ANNOUNCES RATE AGREEMENT
TAMPA, March 25, 1996 -- Tampa Electric Company announced
today an agreement with the Florida Office of Public Counsel
(OPC) and the Florida Industrial Power Users Group (FIPUG) on a
new multi-year base rate freeze and refund plan for the utility.
If approved by the Florida Public Service Commission (FPSC),
customers will benefit from stable base rates and a $25 million
refund even while the company puts into service its new, highly
efficient Polk Power Station.
Under the agreement, Tampa Electric's base rates will be
frozen at current levels through Dec. 31, 1998. Tampa Electric
will have the option of filing an application with the FPSC on or
after July 1, 1998 for authorization to adjust base rates during
1999.
The $25 million refund will be reflected as a credit on
customer bills over a 12-month period that starts Oct. 1, 1996.
As a result, the bill to the typical customer who uses 1,000
kilowatt-hours will be reduced about $1.60 each month. There is
also a possibility of a refund in 1999. The refund beginning in
1996 will consist of $10 million of revenues deferred from 1995
and $15 million of 1996's revenues.
-more-<PAGE>
Tampa Electric -- 2
In addition to the refund and rate freeze, the agreement
sets forth a multi-year plan for allocating revenues based on the
level of Tampa Electric's earnings on utility assets.
Tampa Electric's President, Keith Surgenor, said, "Our
vision has been to provide good value, excellent service and high
reliability to our customers, and to hold down electric bills
while preparing to bring on line our clean, state-of-the-art
power plant. This new agreement helps us achieve that goal."
Under the agreement, for the years 1996 through 1998 Tampa
Electric will keep in each year all revenues contributing to a
return on common equity (ROE) up to 11.75 percent. Any
additional revenues will be allocated according to a formula.
In 1996, 40 percent of any actual revenues that contribute
to a ROE in excess of 11.75 percent will be included in 1996
revenues and the remaining 60 percent will be deferred for use in
1997 and 1998. There will also be available for use in 1997 and
1998 about $41 million of the revenues deferred from 1995 after
giving effect to the $10 million portion of the $25 million
refund.
S i milarly, 40 percent of any revenues in 1997 that
c o n tribute to a ROE in excess of 11.75 percent up to
12.75 percent will be included in Tampa Electric's 1997 revenues.
The remaining 60 percent will be deferred for use in 1998. Any
-more-<PAGE>
Tampa Electric -- 3
revenues contributing to a ROE exceeding 12.75 percent will be
deferred for use during 1998.
The same 40 percent allocation of revenues will be made in
1998 after taking into account any deferred revenues not used in
previous years. The remaining 60 percent as well as all revenues
contributing to a ROE in excess of 12.75 percent, if any, will be
refunded to customers in 1999.
Finally, the agreement calls for an expeditious review of
the regulatory treatment to be afforded the company's Polk Power
Plant. Tampa Electric is optimistic that the FPSC will complete
this task in the third quarter of this year.
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., an investor-owned, energy-
related holding company also based in Tampa.
-30-
