Tampa Electric Company (TECO) helps to illuminate the sunshine state when the sun is not shining. The company transmits and distributes electricity in a 2,000-square mile service territory in West Central Florida (including Tampa). Its Tampa Electric division provides electric service to about 720,000 customers and has a generating capacity of more than 4,700 MW. The TECO Energy subsidiary also operates four fossil-fueled power plants and distributes natural gas to more than 360,000 customers through its Peoples Gas unit. Other services include residential surge protection and the trimming of trees interfering with power lines. TECO Energy was acquired by Canada's Emera in 2016.
Change in Company Type
To expand its portfolio of US energy assets, in 2016 Canada-based energy and services company Emera acquired TECO Energy for $6.5 billion.
Tampa Electric has two business segments. Its Tampa Electric division provides retail electric service. Peoples Gas System, the gas division, is engaged in the purchase, distribution, and sale of natural gas for residential, commercial, industrial and electric power generation customers.
Tampa Electric serves nearly customers in West Central Florida. Its West Central Florida service area includes all of Hillsborough County and parts of Pasco, Pinellas, and Polk counties. Peoples Gas System has operations in Florida's major metropolitan areas.
Total revenues of $2.4 billion were flat in 2015. The company posted electric revenues of $2 billion as higher residential and commercial sales were offset by lower wholesale and other results. Gas utility revenues ($396 million) were also flat.
Tampa Electric's net income grew by 6% in 2015 to $276 million due to a drop in regulated operations and maintenance costs (primarily fuel and purchased power costs).
Cash flows from operating activities declined from $647.2 million in 2014 to $607.9 million in 2015, primarily due to higher inventories, prepayments and other products, taxes, interest accrued, and other.
Tampa Electric is pursuing a strategy to become greener. To help reduce the need for building more fossil-fuel power generation plants, Tampa Electric is partnering with customers to help them be more efficient in their energy use. It offers its customers 12 residential and 16 commercial energy efficiency programs.
In 2017 Tampa Electric began commercial operation of the Big Bend solar array, the largest solar energy installation in the Tampa Bay area. The 23-MW photovoltaic array includes more than 200,000 thin-film solar panels and will provide environmental savings of up to 30,000 tons of carbon dioxide a year (the equivalent of removing up to 6,000 automobiles from the road). The project has the capacity to power nearly 3,300 homes.
Tampa Electric was founded in 1899 and was reincorporated in 1949.