TECO Energy, Inc. is a diversified, energy-related holding company. Its principal businesses are Tampa Electric, Peoples Gas, Florida's largest natural gas distributor; TECO Power Services, an independent power company; TECO Transport, a river and ocean transportation company; TECO Coal, producer of coal and synthetic fuel; and TECO Solutions, an energy services/engineering company. (Company Press Release)
Industry:UTIL-ELEC PWR Sector: Utilities Fiscal Year End:December Last Reported Quarter:03/31/12 Next EPS Date:08/09/12
Capital Structure Solvency and Cash Flow
Tampa Electric is currently installing environmental upgrades at its Big Bend Station. It will invest approximately $330.0 million to install selective catalytic reduction (SCR) systems at each of the four units at the station. The SCRs for Unit 4 and 3 were completed in June 2007 and May 2008, while Units 2 and 1 are targeted for completion by May 2009 and May 2010, respectively.
TE is still evaluating its options on ways to meet its 2013 baseload needs following the 2007 rejection of an IGCC plant. The need in part arises as its long-term PPA for output from the Hardee Power Station expires after 2012, with Seminole Electric having the first option to take the entire plant's output after the date. The most likely option would be construction of a combined-cycle natural gas-fired facility, which TE estimates would cost $500.0-$600.0 million for an approximate 555-MW facility. To meet the 2013 need, engineering for the project would need to begin in 2009 with peak spending occurring in 2011.
Last edited Tue Jun 16, 2009 03:28 PM by RJha (Zacks Investment Research)
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Governance Social Responsibility and Employee Relations
• Tampa Electric faces certain risks with regulated operations
• TE continues to struggle with storm-related expenses
• TE is highly dependent on rate relief changes in regulatory environment. It could adversely impact TE's earnings
• Spike in the price of natural gas and oil could impact TE's financial results
Last edited Wed Apr 15, 2009 02:11 PM by RJha (Zacks Investment Research)
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