TECO Energy pares down debt by $630 million since 2005

By Lisa Kerner

Charlotte, N.C., March 14 - TECO Energy, Inc. chairman and chief executive officer Sherrill Hudson said the company had a good 2006, ending the year with $402 million in cash at the parent-company level.

Hudson made the remarks at the 2007 Morgan Stanley Global Power Electricity & Energy Conference Wednesday in New York.

"This strong cash position was after the planned $52 million equity contribution to Tampa Electric, retirement of $100 million of 8½% trust preferred securities and the voluntary and unplanned $30 million contribution to our pension plan to accelerate the improvement in its funding status," Hudson said.

Hudson noted that since 2005, the company has retired $630 million in parent-level debt. TECO Energy has the cash on hand to meet the $300 million notes due in May.

"As we look at 2007, we plan to continue to follow our cash priorities," Hudson said.

"Those priorities are to retire parent-level debt, to invest in our utilities to support their growth and to make smaller, incremental investments in our unregulated companies to support their growth."

In February, TECO Energy said it is considering a sale of TECO Transport as the company continues to pare down parent debt.

Last April, the company committed to retiring $500 million of parent debt in the 2008-2010 period in addition to the $357 million of debt reduction planned for 2007.

TECO is an integrated energy-related holding company based in Tampa, Fla.

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