Third-quarter 2009 non-GAAP results from continuing operations, which exclude charges and gains, were $85.6 million compared to net income of $58.2 million in the 2008 period (see the Results Reconciliation table later in this release).

Year-to-date net income and earnings per share were $160.4 million or $0.75 per share in 2009, compared to $140.4 million or $0.67 per share in the same period in 2008.

Year-to-date 2009 non-GAAP results from continuing operations, which exclude charges and gains, were $176.1 million compared to non-GAAP results of $141.0 million in the 2008 period (see the Results Reconciliation table later in this release).

Included in the $20.8 million of third quarter charges were $15.4 million of restructuring charges at Tampa Electric, Peoples Gas and TECO Energy, the write-off of $5.2 million of project development costs at Tampa Electric primarily related to the Polk Unit 6 IGCC plant, and $0.2 million associated with the sale of student loan securities in the third quarter. Year-to-date net income in 2009 included the third-quarter items, and an $8.7 million net gain on the sale of TECO Guatemala's 16.5% interest in the Central American fiber optic telecommunications provider Navega, and a $3.6 million valuation adjustment charge to student loan securities held at TECO Energy. Year-to-date 2008 net income included a $0.6 million charge for adjustments to previously estimated costs associated with the sale of TECO Transport (see the Results Reconciliation table later in this release).

TECO Energy Chairman and CEO Sherrill Hudson said, "Our results this quarter reflect the restructuring actions taken to create a leaner, more nimble organization, and to position the utilities to earn their allowed returns despite the weakened Florida economy. Like others, we are seeing some signs in the local and national economies that the worst of the recession may be over and that economic conditions are starting to slowly improve. We expect that improving economic conditions and the benefits from our restructuring actions should lead to improved results in 2010."

Non-GAAP Results

The table below compares the TECO Energy GAAP net income to the non-GAAP measures used in this release. Non-GAAP results in the third quarter, year-to-date and 12-months ended periods exclude the charges and gains described in the operating company discussions. Non-GAAP Results Excluding Synthetic Fuel excluded charges and gains and also excluded the earnings benefits associated with the production of synthetic fuel in the 12-months ended Sept. 30, 2008 period. For a reconciliation to GAAP results and a discussion regarding this presentation of non-GAAP results and management's use of this information, please see the Non-GAAP Presentation section and Results Reconciliation table later in this release.

                                                                                                                       
 Results Comparisons                                                                                                   
                                             3 monthsended Sept. 30   9 monthsended Sept. 30   12 monthsended Sept. 30 
 (millions)                                  2009      2008           2009       2008          2009       2008         
 Net income                                  $  64.8   $  58.2        $  160.4   $  140.4      $  182.4   $  314.3     
 Net income from continuing operations       $  64.8   $  58.2        $  160.4   $  140.4      $  182.4   $  314.3     
 Non-GAAP Results With Synthetic Fuel        $  85.6   $  58.2        $  176.1   $  141.0      $  218.4   $  186.5     
 Non-GAAP Results Excluding Synthetic Fuel   $  85.6   $  58.2        $  176.1   $  141.0      $  218.4   $  188.7     
                                                                                                                       


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Segment Reporting

The table below includes TECO Energy segment information on a GAAP basis, which includes all charges and gains and synthetic fuel-related benefits or costs for the periods shown.

                                                                                                                         
 Segment Information                     3 monthsended Sept. 30      9 monthsended Sept. 30      12 monthsended Sept. 30 
 (millions)                                                                                                              
 Net Income (loss)                       2009          2008          2009          2008          2009          2008      
 Tampa Electric                          $  54.3       $  50.6       $  121.1      $  106.7      $  150.0      $  135.7  
 Peoples Gas System                         3.4           2.6           19.2          17.9          28.5          24.2   
 TECO Coal                                  11.6          3.7           29.7          15.4          32.4          22.6   
 TECO Guatemala                             8.1           11.7          29.2          37.1          28.9          48.6   
 Parent/other                               (12.6  )      (10.4  )      (38.8  )      (36.7  )      (57.4  )      76.2   
 TECO Transport((1))                        --            --            --            --            --            7.0    
 Net income from continuing operations      64.8          58.2          160.4         140.4         182.4         314.3  
 Discontinued operations((1))               --            --            --            --            --            --     
 Total net income                        $  64.8       $  58.2       $  160.4      $  140.4      $  182.4      $  314.3  
                                                                                                                         


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(1) Due to the ongoing contractual relationship for solid fuel waterborne transportation services, TECO Transport was not classified as a discontinued operation and is included in TECO Energy's historical results through the sale in December 2007.

Operating Company Results

All amounts included in the operating company and Parent/other results discussions are after tax, unless otherwise noted.

Tampa Electric

Tampa Electric reported net income for the third quarter of $54.3 million, compared with $50.6 million for the same period in 2008. Tampa Electric had third quarter non-GAAP results of $70.6, which excluded $11.1 million of restructuring charges and the $5.2 million write-off of project development costs primarily related to the Polk Unit 6 IGCC project (see the Results Reconciliation table later in this release). There were no non-GAAP adjustments to the 2008 quarter. Results for the quarter reflected 15.0% higher base revenues due to the increase in base rates effective May 7, 2009, higher earnings on nitrogen oxide (NOx) control projects, a 0.1% lower average number of customers, and slightly higher operations and maintenance expenses. Net income included $2.5 million of Allowance for Funds Used During Construction (AFUDC) - equity, which represents allowed equity cost capitalized to construction costs, related to the installation of NOx control equipment, coal rail unloading facilities and combustion turbines for peak loads, compared with $1.3 million in the 2008 period.

In the third quarter of 2009, there was no reduction in net income due to the previous waterborne transportation disallowance for the transportation of solid fuel, which reduced net income $2.4 million in the 2008 period. In November 2008, the Florida Public Service Commission (FPSC) approved Tampa Electric's fuel adjustment filing, which included full recovery of waterborne transportation costs under new contracts effective Jan. 1, 2009. This approval eliminated the annual reduction in net income that occurred in 2004 through 2008 during the previous transportation contract.

Total retail energy sales decreased less than 1.0% in the third quarter of 2009, compared to the same period in 2008. Total degree days in Tampa Electric's service area were 2% above normal and 10% above the third quarter of 2008, which drove a 1.5% increase in sales to residential customers and partially offset lower sales to commercial and non-phosphate industrial customers. Pretax base revenues increased approximately $33 million in the third quarter due to higher base rates approved by the Florida Public Service Commission for Tampa Electric effective May 7, 2009, which were partially offset by the lower number of customers.

Operations and maintenance expense, excluding all FPSC-approved cost recovery clauses and non-GAAP charges, increased $1.6 million primarily due to higher power generating unit maintenance.

Compared to the third quarter of 2008, depreciation expense increased $2.2 million, reflecting additions to facilities to serve customers. Interest expense at Tampa Electric increased slightly due to higher long-term debt balances outstanding, and interest income decreased due to lower interest rates and lower under-recovered fuel balances on which interest is accrued.

Year-to-date net income was $121.1 million, compared with $106.7 million in the 2008 period. Year-to-date non-GAAP results were $137.4 million, which excluded the third-quarter items noted above (see the Results Reconciliation table later in this release). There were no non-GAAP adjustments to the 2008 period. These results were driven primarily by the higher base revenues from the new base rates and higher earnings on NOx control projects, partially offset by 0.2% lower average number of customers and higher operations and maintenance expenses. Net income included $8.3 million of AFUDC - equity related to the installation of NOx control equipment and combustion turbines for peak loads, compared with $4.3 million in the 2008 period. Sales volumes to other utilities declined 47% from the 2008 period, reflecting lower demand. In the 2009 year-to-date period, there was no reduction in net income due to the waterborne transportation disallowance for the transportation of solid fuel, compared to a $6.3 million reduction in the 2008 period.

In the 2009 year-to-date period, total retail energy sales decreased 1.8% compared to the 2008 period, driven primarily by the economy, weather in the second quarter, and the 0.2% decline in the average number of customers. Total degree days in Tampa Electric's service area were 3% above normal and 8% above the prior year; however, extended periods of rain reduced sales in the second quarter. Colder winter weather in the first quarter contributed to a 0.8% increase in sales to the weather-sensitive residential customer class, while sales to commercial and industrial customers declined, primarily due to economic conditions. Operations and maintenance expense, excluding all FPSC-approved cost recovery clauses and non-GAAP items noted in the third quarter, increased $5.1 million. The increase included the write-off of $0.6 million of disallowed rate case expenses, $1.8 million higher employee-related expenses, $1.6 million higher tree trimming expense, $1.0 million higher transmission and distribution system storm damage reserve accrual, and $1.2 million higher power generating unit maintenance partially offset by cost reductions in other operating areas. Bad-debt expense was $0.4 million higher in the 2009 year-to-date period than in 2008.

Compared to the 2008 year-to-date period, depreciation expense increased $6.2 million, reflecting additions to facilities to serve customers. Interest expense at Tampa Electric increased slightly due to higher long-term debt balances outstanding.

Peoples Gas

Peoples Gas reported net income of $3.4 million for the third quarter, compared to $2.6 million in the same period in 2008. Non-GAAP results, which exclude $2.8 million of restructuring costs, were $6.2 million in the third quarter of 2009 (see the Results Reconciliation table later in this release). There were no non-GAAP adjustments to the 2008 quarter. Quarterly results reflect a 0.3% lower average number of customers due to the weak Florida housing market, decreased sales to residential customers and increased sales to commercial customers due to several higher volume new customers and conversion of propane customers to natural gas. Base revenues increased due to the higher permanent base rates that became effective June 18, 2009. Gas transported for power generation customers increased in 2009, compared to the third quarter of 2008 when high natural gas prices reduced demand for natural gas for power generation. Lower sales volumes to industrial customers reflected economic conditions and reduced operations by industries sensitive to the housing market, such as cement plants. Off-system sales volumes, which are very low margin sales, decreased due to lower spot sales to power generation customers. Excluding restructuring charges, non-fuel operations and maintenance expense was essentially unchanged from 2008 levels due to cost control efforts by the operating areas. Results also reflect increased depreciation expense due to routine plant additions.

Peoples Gas reported net income of $19.2 million for the year-to-date period, compared to $17.9 million in the same period in 2008. Year-to-date non-GAAP results, which exclude the third quarter restructuring charges, were $22.0 million (see the Results Reconciliation table later in this release). There were no non-GAAP adjustments to the 2008 period. Results reflect a 0.2% lower average number of customers. Residential customer usage increased due to colder winter weather in the first quarter of 2009, compared to the very mild winter weather in 2008. Gas transported for power generation customers increased over the 2008 year-to-date period due to lower natural gas prices, which made it a more economical generating fuel choice. Excluding restructuring charges, non-fuel operations and maintenance expense increased due to higher pipeline integrity costs and the $0.4 million write-off of disallowed rate case expenses.

TECO Coal

In 2009, TECO Coal achieved third quarter net income of $11.6 million on sales of 2.3 million tons, compared to $3.7 million on sales of 2.2 million tons in the same period in 2008. Results reflect an average net per-ton selling price, excluding transportation allowances, of more than $73 per ton, almost 20% higher than 2008. Compared to prior 2009 quarters, metallurgical coal sales increased in the third quarter due to slightly higher operating rates at steel producers, although economic conditions continue to keep demand for steel products at lower levels worldwide. In the third quarter of 2009, the all-in total per-ton cost of production increased to almost $67 per ton, 9% over 2008's level, and above the cost guidance range previously provided, but on lower tons than previously forecast. Cost increased in the third quarter due to reclamation work at surface mines that were closed earlier in the year due to weak demand. Due to tax percentage depletion differences between periods, in the third quarter of 2009 TECO Coal's effective income tax rate was a more normal 24% compared to 20% in the 2008 period. Third quarter net income in 2008 included a $2.6 million benefit from a contract settlement related to future coal sales.

TECO Coal recorded year-to-date net income of $29.7 million on sales of 6.8 million tons in 2009, compared to $15.4 million on sales of 7.1 million tons in the 2008 period. The year-to-date sales mix was driven by the same factors as the third quarter. At $71 per ton, the 2009 year-to-date average net per-ton selling price was almost 20% above the 2008 average selling price. At $66 per ton, the all-in total per-ton cost of production was 14% higher than 2008, as expected. In the 2009 year-to-date period, TECO Coal's effective income tax rate was 18% compared to 13% in the 2008 period.

TECO Guatemala

TECO Guatemala reported third quarter net income of $8.1 million in 2009, compared to $11.7 million in the 2008 period. Year-to-date 2009 net income was $29.2 million, compared to $37.1 million in the 2008 period. Year-to-date 2009 non-GAAP results were $20.5 million, which exclude the $8.7 million gain on the sale of the telecommunication company, Navega, recorded in the first quarter (see the Results Reconciliation table later in this release). There were no non-GAAP adjustments to 2008 results in either period.

Lower contract and spot energy sales and lower capacity payments due to the unplanned outages at the San José Power Station reduced net income $3.5 million in the third quarter of 2009. The 2009 results reflect $1.3 million of lower net income from the distribution company, EEGSA, as a result of the reduction in the Value Added Distribution tariff (VAD) in August 2008, partially offset by customer and energy sales growth, and cost reduction actions by EEGSA to offset the impact of the lower VAD. Results for the quarter included a $1.2 million benefit associated with the final settlement of contingencies related to Central American interests previously sold.

Lower year-to-date results reflect the impact of unplanned outages at the San José Power Station and lower net income from EEGSA as a result of the VAD reduction. Results for both the quarter and year-to-date periods reflect the absence of earnings from the telecommunications company, Navega, which was sold in March. Year-to-date results in 2009 for the distribution utility (EEGSA) and affiliated companies also include a $2.5 million benefit related to an adjustment to previously estimated year-end equity balances, compared to a similar $3.1 million benefit in 2008.

Parent/other

The cost for "Parent/other" in the third quarter of 2009 was $12.6 million, compared to a cost of $10.4 million in the same period in 2008. The third quarter non-GAAP cost was $10.9 million, which excluded $1.5 million of restructuring costs and a $0.2 million charge associated with the sale of student loan securities in the third quarter (see the Results Reconciliation table later in this release). The year-to-date "Parent/other" cost was $38.8 million in 2009, compared to $36.7 million in the 2008 period. The 2009 year-to-date Parent/other non-GAAP cost was $33.6 million, excluding the third quarter items and the $3.6 million valuation adjustment recorded in the first quarter on student-loan securities held at TECO Energy parent. In 2008, the year-to-date non-GAAP cost for Parent/other was $36.1 million excluding the $0.6 million after-tax adjustment to previously estimated transaction costs related to the sale of TECO Transport (see the Results Reconciliation table later in this release). Results in the third quarter included a $1.5 million gain on the sale of a lease, the final asset held in a leveraged lease portfolio. Year-to-date results in 2009 included a $2.6 million benefit from a sale of property by TECO Properties.

Cash and Liquidity

The table below sets forth the Sept. 30, 2009 consolidated liquidity and cash balances, the cash balances at the operating companies and TECO Energy parent, and amounts available under the TECO Energy/Finance and Tampa Electric Company credit facilities.

                                                                                                          
 Balances as of Sept. 30, 2009                                                                            
 (millions)                        Consolidated   Tampa ElectricCompany   UnregulatedCompanies   Parent   
 Credit facilities                 $  675.0       $  475.0                $  --                  $  200.0 
 Drawn amounts/LCs                    67.8           54.7                    --                     13.1  
 Available credit facilities          607.2          420.3                   --                     186.9 
 Cash and short-term investments      45.5           6.7                     17.7                   21.1  
 Total liquidity                   $  652.7       $  427.0                $  17.7                $  208.0 
                                                                                                          


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Consolidated other cash and short-term investments includes $17.7 million of cash at the unregulated operating companies for normal operations. In addition to consolidated cash, as of Sept.