10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File No	Exact name of each registrant as specified in its charter, state of incorporation, address of principal executive offices, telephone number	I.R.S. Employer Identification Number
1-5007	TAMPA ELECTRIC COMPANY	59-0475140
	(a Florida corporation) TECO Plaza 702 N. Franklin Street Tampa, Florida 33602 (813) 228-1111

Securities registered or to be registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
None.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ NO ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ NO ☐

Indicate by check mark whether Tampa Electric Company is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark whether Tampa Electric Company has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether Tampa Electric Company is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ☐ NO ☒

As of November 8, 2024, there were 10 shares of Tampa Electric Company’s common stock issued and outstanding, all of which were held, beneficially and of record, by TECO Holdings, Inc.

Tampa Electric Company meets the conditions set forth in General Instruction (H)(1)(a) and (b) of Form 10-Q and is therefore filing this form with the reduced disclosure format specified in General Instruction H(2) of Form 10-Q.

ACRONYMS

Acronyms used in this and other filings with the U.S. Securities and Exchange Commission in 2024 and 2023 include the following:

Term	Meaning
AFUDC	allowance for funds used during construction
AFUDC-debt	debt component of allowance for funds used during construction
AFUDC-equity	equity component of allowance for funds used during construction
APBO	accumulated postretirement benefit obligation
ARO	asset retirement obligation
ASC	Accounting Standards Codification
ASU	Accounting Standards Update
BCF	billion cubic feet
CCRs	coal combustion residuals
CMO	collateralized mortgage obligation
CO2	carbon dioxide
CPI	consumer price index
CT	combustion turbine
D.C. Circuit Court	D.C. Circuit Court of Appeals
ECRC	environmental cost recovery clause
Emera	Emera Inc., a geographically diverse energy and services company headquartered in Nova Scotia, Canada and the indirect parent company of Tampa Electric Company
EPA	U.S. Environmental Protection Agency
ERISA	Employee Retirement Income Security Act
EROA	expected return on plan assets
EUSHI	Emera US Holdings Inc., a wholly owned subsidiary of Emera, which is the sole shareholder of TECO Holdings’ common stock as of April 1, 2024, and the sole shareholder of TECO Energy's common stock prior to April 1, 2024
FASB	Financial Accounting Standards Board
FDEP	Florida Department of Environmental Protection
FERC	Federal Energy Regulatory Commission
FPSC	Florida Public Service Commission
GHG	greenhouse gas
IRS	Internal Revenue Service
ITCs	investment tax credits
kWac	kilowatt on an alternating current basis
MBS	mortgage-backed securities
MD&A	the section of this report entitled Management’s Discussion and Analysis of Financial Condition and Results of Operations
MGP	manufactured gas plant
MMBTU	one million British Thermal Units
MRV	market-related value
MW	megawatt(s)
MWH	megawatt-hour(s)
NAV	net asset value
Note	Note to financial statements
NPDES	National Pollutant Discharge Elimination System
NPNS	normal purchase normal sale
O&M expenses	operations and maintenance expenses
OCI	other comprehensive income
OPC	Office of Public Counsel
OPEB	other postemployment benefits
Parent	the direct parent company of Tampa Electric Company, which is TECO Holdings, Inc. as of April 1, 2024, and TECO Energy, Inc., prior to April 1, 2024
PBO	projected benefit obligation
PGS	Peoples Gas System, the former gas division of Tampa Electric Company
PGSI	Peoples Gas System, Inc.
PPA	power purchase agreement
PRP	potentially responsible party

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R&D	research and development
REIT	real estate investment trust
ROE	return on common equity
Regulatory ROE	return on common equity as determined for regulatory purposes
S&P	Standard and Poor’s
SEC	U.S. Securities and Exchange Commission
SERP	Supplemental Executive Retirement Plan
SoBRAs	solar base rate adjustments
SPP	storm protection plan
STIF	short-term investment fund
TEC	Tampa Electric Company
TECO Energy	TECO Energy, Inc., the direct parent company of Tampa Electric Company prior to April 1, 2024
TECO Holdings	TECO Holdings, Inc., the direct parent company of Tampa Electric Company as of April 1, 2024
U.S. GAAP	generally accepted accounting principles in the United States

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION

This Form 10-Q contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. The factors that could cause actual results to differ materially from the forward-looking statements made by TEC include those factors discussed herein, including those factors discussed with respect to TEC in (1) TEC’s 2023 Annual Report on Form 10-K in (a) Part I, Item 1A. Risk Factors, (b) Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) Part II, Item 8. Financial Statements: Note 8, Commitments and Contingencies; (2) this Quarterly Report on Form 10-Q in (a) Part 1, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (b) Part 1, Item 1. Financial Statements: Note 8, Commitments and Contingencies, and (3) other factors discussed in filings with the SEC by TEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this Report. TEC does not undertake any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this Form 10-Q.

All references to “dollars” and “$” in this and other filings with the U.S. Securities and Exchange Commission are references to U.S. dollars, unless specifically indicated otherwise.

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PART I. FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

TAMPA ELECTRIC COMPANY

Condensed Balance Sheets

Unaudited

Assets	September 30,			December 31,
(millions)	2024			2023
Property, plant and equipment
Utility plant, at original costs	$	14,487		$	13,655
Accumulated depreciation		(3,604	)		(3,443	)
Utility plant, net		10,883			10,212
Other property		17			16
Total property, plant and equipment, net		10,900			10,228
Current assets
Cash and cash equivalents		15			5
Receivables, less allowance for credit losses of $2 and $2 at September 30, 2024 and December 31, 2023, respectively		307			286
Due from affiliates		26			19
Inventories, at average cost
Fuel		40			36
Materials and supplies		182			181
Regulatory assets		104			161
Prepayments and other current assets		40			32
Total current assets		714			720
Other assets
Regulatory assets		841			827
Other		83			56
Total other assets		924			883
Total assets	$	12,538		$	11,831

The accompanying notes are an integral part of the condensed financial statements.

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TAMPA ELECTRIC COMPANY

Condensed Balance Sheets - continued

Unaudited

Liabilities and Capitalization	September 30,			December 31,
(millions)	2024			2023
Capitalization
Common stock	$	5,060		$	4,505
Accumulated other comprehensive loss		(1	)		(1	)
Retained earnings		319			219
Total capital		5,378			4,723
Long-term debt		3,934			3,933
Total capitalization		9,312			8,656
Current liabilities
Long-term debt due within one year		0			300
Notes payable		385			209
Accounts payable		302			354
Due to affiliates		9			10
Customer deposits		124			121
Regulatory liabilities		188			94
Accrued interest		45			28
Accrued taxes		79			14
Other		54			43
Total current liabilities		1,186			1,173
Long-term liabilities
Deferred income taxes		920			880
Regulatory liabilities		692			701
Investment tax credits		236			237
Deferred credits and other liabilities		192			184
Total long-term liabilities		2,040			2,002
Commitments and Contingencies (see Note 8)
Total liabilities and capitalization	$	12,538		$	11,831

The accompanying notes are an integral part of the condensed financial statements.

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TAMPA ELECTRIC COMPANY

Condensed Statements of Income and Comprehensive Income

Unaudited

	Three months ended September 30,
(millions)	2024			2023
Revenues
Electric	$	724		$	795
Expenses
Fuel		139			179
Purchased power		25			31
Operations and maintenance		138			172
Depreciation and amortization		115			107
Taxes, other than income		59			67
Total expenses		476			556
Income from operations		248			239
Other income
Allowance for equity funds used during construction		9			6
Interest income from affiliates		0			10
Other income, net		4			8
Total other income		13			24
Interest charges
Interest expense		52			60
Interest expense to affiliates		0			3
Allowance for borrowed funds used during construction		(3	)		(2	)
Total interest charges		49			61
Income before provision for income taxes		212			202
Provision for income taxes		27			32
Net income	$	185		$	170
Comprehensive income	$	185		$	170

The accompanying notes are an integral part of the condensed financial statements.

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TAMPA ELECTRIC COMPANY

Condensed Statements of Income and Comprehensive Income

Unaudited

	Nine months ended September 30,
(millions)	2024			2023
Revenues
Electric	$	1,944		$	2,024
Expenses
Fuel		403			455
Purchased power		68			65
Operations and maintenance		414			447
Depreciation and amortization		340			316
Taxes, other than income		170			177
Total expenses		1,395			1,460
Income from operations		549			564
Other income
Allowance for equity funds used during construction		20			13
Interest income from affiliates		0			28
Other income, net		13			27
Total other income		33			68
Interest charges
Interest expense		152			176
Interest expense to affiliates		0			8
Allowance for borrowed funds used during construction		(7	)		(4	)
Total interest charges		145			180
Income before provision for income taxes		437			452
Provision for income taxes		53			71
Net income	$	384		$	381
Comprehensive income	$	384		$	381

The accompanying notes are an integral part of the condensed financial statements.

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TAMPA ELECTRIC COMPANY

Condensed Statements of Cash Flows

Unaudited

	Nine months ended September 30,
(millions)	2024			2023
Cash flows from operating activities
Net income	$	384		$	381
Adjustments to reconcile net income to cash from operating activities:
Depreciation and amortization		340			316
Deferred income taxes and investment tax credits		3			(18	)
Allowance for equity funds used during construction		(20	)		(13	)
Deferred recovery clauses		132			312
Regulatory assets and liabilities		24			75
Pension and post-retirement asset and liabilities		(10	)		(20	)
Other		5			15
Changes in working capital:
Receivables, less allowance for credit losses		(18	)		(132	)
Inventories		(5	)		(47	)
Taxes accrued		55			81
Interest accrued		17			22
Accounts payable		(47	)		(51	)
Other		(7	)		(10	)
Cash flows from operating activities		853			911
Cash flows used in investing activities
Capital expenditures		(989	)		(889	)
Net proceeds from sale of assets		3			0
Cash flows used in investing activities		(986	)		(889	)
Cash flows from financing activities
Equity contributions from Parent		555			300
Proceeds from long-term debt issuance		495			0
Repayment of long-term debt		(300	)		0
Net increase (decrease) in short-term debt (maturities of 90 days or less)		(321	)		139
Advances to affiliate		0			(160	)
Dividends to Parent		(284	)		(302	)
Other		(2	)		(1	)
Cash flows from (used in) financing activities		143			(24	)
Net increase (decrease) in cash and cash equivalents		10			(2	)
Cash and cash equivalents at beginning of period		5			10
Cash and cash equivalents at end of period	$	15		$	8
Supplemental disclosure of non-cash activities
Change in accrued capital expenditures	$	3		$	(19	)
Change in notes receivable from PGS	$	0		$	(736	)

The accompanying notes are an integral part of the condensed financial statements.

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TAMPA ELECTRIC COMPANY

Condensed Statements of Capitalization

Unaudited

									Accumulated
									Other
			Common			Retained			Comprehensive			Total
(millions, except share amounts)	Shares		Stock			Earnings			Loss			Capital
Three months ended September 30, 2024
Balance, June 30, 2024		10	$	4,925		$	270		$	(1	)	$	5,194
Net income							185						185
Equity contributions from Parent				135									135
Dividends to Parent							(136	)					(136	)
Balance, September 30, 2024		10	$	5,060		$	319		$	(1	)	$	5,378
Three months ended September 30, 2023
Balance, June 30, 2023		10	$	4,405		$	266		$	(1	)	$	4,670
Net income							170						170
Equity contributions from Parent				100									100
Dividends to Parent							(132	)					(132	)
Balance, September 30, 2023		10	$	4,505		$	304		$	(1	)	$	4,808
Nine months ended September 30, 2024
Balance, December 31, 2023		10	$	4,505		$	219		$	(1	)	$	4,723
Net income							384						384
Equity contributions from Parent				555									555
Dividends to Parent							(284	)					(284	)
Balance, September 30, 2024		10	$	5,060		$	319		$	(1	)	$	5,378
Nine months ended September 30, 2023
Balance, December 31, 2022		10		5,075		$	346		$	(1	)	$	5,420
Net income							381						381
Separation of PGS equity from TEC				(871	)		(121	)					(992	)
Equity contributions from Parent				300									300
Dividends to Parent							(302	)					(302	)
Other				1									1
Balance, September 30, 2023		10	$	4,505		$	304		$	(1	)	$	4,808

The accompanying notes are an integral part of the condensed financial statements.

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TAMPA ELECTRIC COMPANY

NOTES TO CONDENSED FINANCIAL STATEMENTS

UNAUDITED

1. Summary of Significant Accounting Policies

See TEC’s Annual Report on Form 10-K for the year ended December 31, 2023 for a complete discussion of accounting policies. The significant accounting policies for TEC include:

Principles of Consolidation and Basis of Presentation

TEC is comprised of the electric division, referred to as Tampa Electric, and prior to January 1, 2023, the natural gas division, referred to as PGS. Prior to April 1, 2024, TEC was a wholly owned subsidiary of TECO Energy, which is an indirect, wholly owned subsidiary of Emera. On April 1, 2024, TECO Energy distributed its investment in TEC to TECO Holdings, Inc. in a transaction intended to qualify as a tax-free reorganization. This new corporation is also an indirect, wholly owned subsidiary of Emera.

In the opinion of management, the unaudited condensed financial statements include all adjustments that are of a recurring nature and necessary to state fairly the financial position of TEC as of September 30, 2024 and December 31, 2023, and the results of operations and cash flows for the periods ended September 30, 2024 and 2023. The results of operations for the three and nine months ended September 30, 2024 are not necessarily indicative of the results that can be expected for the entire fiscal year ending December 31, 2024.

The use of estimates is inherent in the preparation of financial statements in accordance with U.S. GAAP. Actual results could differ from these estimates. The year-end Condensed Balance Sheet was derived from audited financial statements; however, this quarterly report on Form 10-Q does not include all year-end disclosures required for an annual report on Form 10-K by U.S. GAAP.

Receivables and Allowance for Credit Losses

Receivables on the Condensed Balance Sheets include receivables from contracts with customers, which consist of services to residential, commercial, industrial and other customers, totaling $307 million and $284 million as of September 30, 2024 and December 31, 2023, respectively. An allowance for credit losses is established based on TEC’s collection experience and reasonable and supportable forecasts that affect the collectibility of the reported amount. Circumstances that could affect TEC’s estimates of credit losses include, but are not limited to, customer credit issues, generating fuel prices, customer deposits and general economic conditions. Accounts are reserved in the allowance or written off once they are deemed to be uncollectible.

As of September 30, 2024 and December 31, 2023, unbilled revenues of $92 million and $63 million, respectively, are included in the “Receivables” line item on the Condensed Balance Sheets.

Accounting for Franchise Fees and Gross Receipts

TEC is allowed to recover certain costs from customers on a dollar-for-dollar basis through rates approved by the FPSC. The amounts included in customers’ bills for franchise fees and gross receipt taxes are included as revenues on the Condensed Statements of Income. Franchise fees and gross receipt taxes payable by TEC are included as an expense on the Condensed Statements of Income in “Taxes, other than income”. These amounts totaled $35 million and $43 million for the three months ended September 30, 2024 and 2023, respectively, and totaled $92 million and $106 million for the nine months ended September 30, 2024 and 2023, respectively.

2. New Accounting Pronouncements

Reportable Segment Disclosures

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures. The change in the standard improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The changes improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. The guidance will be effective for annual reporting periods beginning after December 15, 2023, and for interim periods beginning after December 15, 2024. Early adoption is permitted. The standard will be applied retrospectively. TEC is currently evaluating the impact of adoption of the standard on its financial statement disclosures.

Income Tax Disclosures

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures. The standard enhances the transparency, decision usefulness and effectiveness of income tax disclosures by requiring consistent categories and greater disaggregation of information in the reconciliation of income taxes computed using the enacted statutory income tax rate to the actual income tax provision and effective income tax rate, as well as the disaggregation of income taxes paid (refunded) by jurisdiction. The standard also requires disclosure of income (loss) before provision for income taxes and income tax expense (benefit)

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in accordance with U.S. Securities and Exchange Commission (SEC) Regulation S-X 210.4-08(h), Rules of General Application – General Notes to Financial Statements: Income Tax Expense, and the removal of disclosures no longer considered cost beneficial or relevant. The guidance will be effective for annual reporting periods beginning after December 15, 2024. Early adoption is permitted. The standard will be applied on a prospective basis, with retrospective application permitted. TEC is currently evaluating the impact of adoption of the standard on its financial statement disclosures.

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU 2024-03, Income Statement Reporting–Comprehensive Income–Expense Disaggregation Disclosures (Subtopic 220-40), Disaggregation of Income Statement Expenses. The standard update improves the disclosures about a public business entity’s expenses by requiring more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation and amortization) included within income statement expense captions. The guidance will be effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The standard updates are to be applied prospectively with the option for retrospective application. TEC is currently evaluating the impact of adoption of the standard update on its financial statement disclosures.

3. Regulatory

Tampa Electric Base Rates

On April 2, 2024, Tampa Electric requested a base rate increase, reflecting an increased revenue requirement increase of $297 million, effective January 1, 2025, and additional adjustments of $100 million and $72 million for 2026 and 2027, respectively. Tampa Electric’s proposed rates include recovery of solar generation projects, energy storage capacity, a more resilient and modernized energy control center, and other resiliency and reliability projects. Prior to the rate case hearing, Tampa Electric submitted revisions to its requested base rate increase to reflect items that included production tax credits, energy storage life expectancy, and the company’s grid reliability and resilience project. The company’s August 22, 2024, requested revenue requirement reflects a base rate increase of $288 million, effective January 1, 2025, and adjustments of $92 million and $65 million for 2026 and 2027, respectively. From August 26 through 30, 2024, Tampa Electric’s rate case hearing was heard by the FPSC. A decision by the FPSC is expected by the end of 2024.

Tampa Electric Mid-Course Adjustment to Fuel Recovery

On April 2, 2024, Tampa Electric requested a mid-course adjustment to its fuel and capacity charges, reflecting a $138 million reduction over 12 months, from June 2024 through May 2025. The requested reduction is due to a significant decrease in actual and projected 2024 natural gas prices since Tampa Electric submitted its projected 2024 costs in the fall of 2023. On May 7, 2024, the FPSC approved the mid-course adjustment.

Tampa Electric Storm Restoration Cost Recovery

In accordance with Tampa Electric’s 2021 rate case settlement agreement, in the event of a named storm that results in damage to its system, Tampa Electric can petition the FPSC to seek recovery of those costs over a 12-month period or longer as determined by the FPSC, as well as replenish its storm reserve regulatory liability. Based on an FPSC order, if the charges to the storm reserve exceed the reserve liability account balance, the excess is to be carried as a regulatory asset. At June 30, 2024, the balance in the reserve liability for storm restoration costs was $5 million. At September 30, 2024, the balance in the regulatory asset for storm restoration costs was $35 million.

Hurricane Helene made landfall on September 26, 2024. Tampa Electric was impacted by Hurricane Helene, resulting in a peak number of customers out of approximately 100,000. Tampa Electric expects approximately $45 million to $55 million to be charged to the storm reserve regulatory asset and a minimal impact to earnings. The majority of the costs that are expected to be charged to the storm regulatory accounts were recorded in September 2024.

​Hurricane Milton, the worst weather event to impact the area in over 100 years, made landfall on October 9, 2024. Tampa Electric was impacted by Hurricane Milton, resulting in a peak number of customers out of approximately 600,000. Tampa Electric expects approximately $320 million to $370 million to be charged to the storm reserve regulatory asset and a minimal impact to earnings.

Restoration costs for the storms described above will be deferred and are expected to be collected from customers in subsequent periods. Tampa Electric will determine the timing of the request for recovery of Hurricane Helene and Hurricane Milton costs at a future time.

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Regulatory Assets and Liabilities

Details of the regulatory assets and liabilities are presented in the following table:

Regulatory Assets and Liabilities
(millions)	September 30, 2024		December 31, 2023
Regulatory assets:
Regulatory tax asset (1)	$	117	$	112
Cost-recovery clauses (2)		17		94
Capital cost recovery for early retired assets (3)		513		507
Postretirement benefits (4)		234		236
Storm reserve (5)		35		7
Other		29		32
Total regulatory assets		945		988
Less: Current portion		104		161
Long-term regulatory assets	$	841	$	827
Regulatory liabilities:
Regulatory tax liability (6)	$	445	$	477
Cost-recovery clauses - deferred balances (2)		75		20
Accumulated reserve - cost of removal (7)		302		271
Other		58		27
Total regulatory liabilities		880		795
Less: Current portion		188		94
Long-term regulatory liabilities	$	692	$	701

(1)The regulatory tax asset is primarily associated with the depreciation and recovery of AFUDC-equity. This asset does not earn a return but rather is included in the capital structure, which is used in the calculation of the weighted cost of capital used to determine revenue requirements. It will be recovered over the expected life of the related assets.

(2)These assets and liabilities are related to FPSC clauses and riders, primarily related to the fuel clause and the decrease in natural gas prices. They are recovered or refunded through cost-recovery mechanisms approved by the FPSC on a dollar-for-dollar basis in a subsequent period.

(3)This asset is related to the remaining net book value of Big Bend Units 1 through 3 and meter assets that were retired. The balance earns a rate of return as permitted by the FPSC and will be recovered as a separate line item on customer bills for a period of 15 years, beginning in 2022 through 2036.

(4)This asset is related to the deferred costs of postretirement benefits and it is amortized over the remaining service life of plan participants. Deferred costs of postretirement benefits that are included in expense are recognized as cost of service for rate-making purposes as permitted by the FPSC.

(5)See "Tampa Electric Storm Restoration Cost Recovery" above for information regarding this reserve. The regulatory asset is included in rate base and earns a rate of return as permitted by the FPSC.

(6)The regulatory tax liability is primarily related to the revaluation of TEC’s deferred income tax balances recorded on December 31, 2017 at the lower corporate income tax rate due to U.S. tax reform. The liability related to the revaluation of the deferred income tax balances is amortized and returned to customers through rate reductions or other revenue offsets based on IRS regulations and the settlement agreement for tax reform benefits approved by the FPSC.

(7)This item represents the non-ARO cost of removal in the accumulated reserve for depreciation. AROs are costs for legally required removal of property, plant and equipment. Non-ARO cost of removal represents estimated funds received from customers through depreciation rates to cover future non-legally required cost of removal of property, plant and equipment, net of salvage value upon retirement, which reduces rate base for ratemaking purposes. This liability is reduced as costs of removal are incurred.

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4. Income Taxes

Inflation Reduction Act

On August 16, 2022, the Inflation Reduction Act was signed into legislation and includes numerous tax incentives for clean energy, such as the extension and modification of existing investment and production tax credits for projects placed in service through 2024, the expansion of ITC for energy storage technology beginning in 2023 and introduces new technology-neutral clean energy related credits beginning in 2025. TEC has determined that electing production tax credits for its solar plants placed in service through 2024 will be more beneficial for customers compared to ITCs and has recorded a regulatory liability in recognition of its obligation to pass the tax benefits to customers of $52 million and $23 million as of September 30, 2024 and December 31, 2023, respectively.

Income Tax Expense

TEC is included in a consolidated U.S. federal income tax return with EUSHI and its subsidiaries. TEC’s income tax expense is based upon a standalone return method, modified for the benefits-for-loss allocation in accordance with EUSHI's tax sharing agreement. To the extent that TEC’s cash tax positions are settled differently than the amount reported as realized under the tax sharing agreement, the difference is accounted for as either a capital contribution or a distribution.

TEC’s effective tax rates for the nine months ended September 30, 2024 and 2023 were 12.1% and 15.7%, respectively. The September 30, 2024 and 2023 effective tax rates are an estimate of the annual effective income tax rate. TEC’s effective tax rate for the nine months ended September 30, 2024 and 2023 differed from the statutory rate principally due to production tax credits and amortization of the regulatory tax liability resulting from tax reform. The effective tax rate for the nine months ended September 30, 2024 is lower compared to the same period in 2023 primarily due to production tax credits. See Note 3 for further information regarding the regulatory tax liability.

Unrecognized Tax Benefits

As of September 30, 2024 and December 31, 2023, the amount of unrecognized tax benefits was $11 million and $10 million, respectively, all of which was recorded as a reduction of deferred income tax assets for tax credit carryforwards. The unrecognized tax benefits, if recognized, would reduce TEC’s effective tax rate.

5. Employee Postretirement Benefits

TEC is a participant in the comprehensive retirement plans of TECO Energy, LLC (formerly known as TECO Energy, Inc. prior to April 1, 2024). The following table presents detail related to TECO Energy’s periodic benefit cost for pension and other postretirement benefits. Amounts disclosed for TECO Energy’s pension benefits include the amounts related to its qualified pension plan and non-qualified, non-contributory SERP and Restoration Plan.

TECO Energy Benefit Cost
(millions)	Pension Benefits						Other Postretirement Benefits
Three months ended September 30,	2024			2023			2024			2023
Components of net periodic benefit cost
Service cost	$	4		$	3		$	1		$	0
Interest cost		9			8			2			2
Expected return on assets		(14	)		(13	)		0			0
Amortization of actuarial loss (gain)		2			2			(1	)		0
Settlement cost (1)		0			0			0			0
Net periodic benefit cost	$	1		$	0		$	2		$	2
Nine months ended September 30,
Components of net periodic benefit cost
Service cost	$	13		$	11		$	1		$	0
Interest cost		26			26			5			6
Expected return on assets		(41	)		(40	)		0			0
Amortization of actuarial loss (gain)		5			4			(2	)		(1	)
Settlement cost (1)		0			2			0			0
Net periodic benefit cost	$	3		$	3		$	4		$	5

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(1) Represents TEC's SERP and Restoration Plan settlement charges as a result of the prior retirements of certain executives.

TEC’s portion of the net periodic benefit cost for the three months ended September 30, 2024 and 2023, respectively, was $1 million and $0 million for pension benefits, and $1 million and $1 million for other postretirement benefits. TEC’s portion of the net periodic benefit cost for the nine months ended September 30, 2024 and 2023, respectively, was $1 million and $1 million for pension benefits, and $3 million and $4 million for other postretirement benefits. TEC’s portion of net periodic benefit costs for pension and other benefits is included as an expense on the Condensed Statements of Income in “Operations & maintenance”.

TECO Energy assumed a long-term EROA of 7.05% and a discount rate of 5.27% for pension benefits under its qualified pension plan for 2024. For TECO Energy’s other postretirement benefits, TECO Energy used a discount rate of 5.28% for 2024.

TECO Energy and TECO Holdings made contributions of $16 million and $16 million to its qualified pension plan in the nine months ended September 30, 2024 and 2023, respectively. TEC’s portion of these contributions was $10 million and $10 million during the nine months ended September 30, 2024 and 2023, respectively. TECO Holdings does not expect to make contributions to the pension plan for the remainder of 2024. See Note 1 for further information regarding TECO Holdings.

Included in the benefit cost discussed above, for the three and nine months ended September 30, 2024, $0 million and $2 million, respectively, of unamortized prior service benefits and costs and actuarial gains and losses were reclassified by TEC from regulatory assets to the Condensed Statement of Income, compared with $0 million and $1 million for the three and nine months ended September 30, 2023, respectively.

6. Short-Term Debt

Details of TEC’s short-term borrowings are presented in the following table:

	September 30, 2024								December 31, 2023
			Borrowings		Borrowings		Letters				Borrowings		Borrowings		Letters
	Credit		Outstanding -		Outstanding -		of Credit		Credit		Outstanding -		Outstanding -		of Credit
(millions)	Facilities		Credit Facilities (1)		Commercial Paper (1)		Outstanding		Facilities		Credit Facilities (1)		Commercial Paper (1)		Outstanding
Credit facility (2)	$	800	$	0	$	385	$	1	$	800	$	0	$	706	$	1
1-year term facility (3)		0		0		0		0		200		0		0		0
1-year term facility (4)		0		0		0		0		200		0		0		0
Total	$	800	$	0	$	385	$	1	$	1,200	$	0	$	706	$	1

(1)Borrowings outstanding are reported as notes payable.

(2)This credit facility was planned to mature on December 17, 2026. On April 1, 2024, TEC amended the credit facility agreement to extend the maturity date to December 1, 2028. TEC also has an active commercial paper program for up to $800 million, of which the full amount outstanding is backed by TEC’s credit facility. The amount of commercial paper issued results in an equal amount of its credit facility being considered drawn and unavailable. On January 30, 2024, TEC completed a sale of $500 million aggregate principal amount of 4.90% Notes due March 1, 2029. TEC used the net proceeds from this offering for the repayment of a portion of the borrowings outstanding under the credit facility. Therefore, $497 million of borrowings outstanding under the credit facility were reclassified as long-term debt on the Balance Sheet as of December 31, 2023.

(3)On March 1, 2023, TEC entered into a 1-year term facility that matured on February 28, 2024.

(4)On April 3, 2023, TEC entered into a 1-year term facility that matured on April 1, 2024.

At September 30, 2024, these credit facilities required a commitment fee of 12.5 basis points. The weighted-average interest rate on borrowings outstanding under the credit facilities and commercial paper at September 30, 2024 and December 31, 2023 was 5.03% and 5.68%, respectively.

As of September 30, 2024 and December 31, 2023, the carrying value of TEC’s short-term debt was not materially different from the fair value due to the short-term nature of the instruments and because the stated rates approximate market rates. The fair value of TEC’s short-term debt is determined using Level 2 measurements.

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7. Long-Term Debt

Fair Value of Long-Term Debt

At September 30, 2024, TEC’s long-term debt, including the current portion, had a carrying amount of $3,934 million and an estimated fair market value of $3,629 million. At December 31, 2023, long-term debt, including the current portion, had a carrying amount of $4,233 million and an estimated fair market value of $3,831 million. The fair value of the debt securities is determined using Level 2 measurements.

TEC 4.90% Notes due 2029

On January 30, 2024, TEC completed a sale of $500 million aggregate principal amount of 4.90% Notes due March 1, 2029 (the 2029 Notes). Prior to February 1, 2029, in the case of the 2029 Notes, TEC may redeem all or any part of such series of Notes at its option at a redemption price equal to the greater of (i) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the redemption date on a semi-annual basis at the Treasury Rate plus 15 basis points less interest accrued to the date of redemption or (ii) 100% of the principal amount of the notes to be redeemed, plus, in either case, accrued and unpaid interest thereon to the redemption date. On or after February 1, 2029, TEC may redeem the 2029 Notes, in whole or in part, at any time and from time to time, at a redemption price equal to 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest thereon to the redemption date. TEC used the net proceeds from this offering for the repayment of a portion of the borrowings outstanding under the credit facility. Therefore, $497 million of borrowings outstanding under the credit facility were reclassified from notes payable to long-term debt on the Balance Sheet as of December 31, 2023.

TEC 3.875% Notes due 2024

On July 12, 2024, TEC repaid a $300 million note upon maturity. This note was repaid with proceeds from commercial paper.

8. Commitments and Contingencies

Legal Contingencies

From time to time, TEC and its subsidiaries are involved in various legal, tax and regulatory proceedings before various courts, regulatory commissions and governmental agencies in the ordinary course of business. Where appropriate, accruals are made in accordance with accounting standards for contingencies to provide for matters that are probable of resulting in an estimable loss.

Long-Term Commitments

TEC has commitments for various purchases as disclosed below, including payment obligations under contractual agreements for fuel, fuel transportation and power purchases that are recovered from customers under regulatory clauses. The following is a schedule of future payments under net purchase obligations/commitments at September 30, 2024:

					Fuel		Long-term
			Capital		and		Service
(millions)	Transportation		Projects (1)		Gas Supply		Agreements		Other (2)		Total
2024	$	35	$	496	$	60	$	6	$	6	$	603
2025		146		54		144		22		8		374
2026		145		14		30		23		2		214
2027		177		5		4		22		2		210
2028		138		0		1		17		1		157
Thereafter		1,320		0		0		33		75		1,428
Total future minimum payments	$	1,961	$	569	$	239	$	123	$	94	$	2,986

(1) These estimates are subject to continuing review and adjustment and actual capital expenditures may vary significantly from these estimates.

(2) Other includes contractual obligations under operating leases, demand side management, and purchased power agreements.

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Debt Covenants

TEC must meet certain financial tests, including a debt to capital ratio, as defined in the applicable debt agreements and has certain restrictive covenants in specific agreements and debt instruments. At September 30, 2024, TEC was in compliance with all required covenants.

9. Revenue
 

The following disaggregates TEC’s revenue by major source:

(millions)
Three months ended September 30,	2024			2023
Electric revenue
Residential	$	471		$	567
Commercial		190			234
Industrial		42			56
Regulatory deferrals		(56	)		(137	)
Unbilled revenue		1			(8	)
Other (1)		76			83
Total revenue	$	724		$	795
Nine months ended September 30,	2024			2023
Electric revenue
Residential	$	1,160		$	1,322
Commercial		522			605
Industrial		124			152
Regulatory deferrals		(106	)		(297	)
Unbilled revenue		28			16
Other (1)		216			226
Total revenue	$	1,944		$	2,024

(1)Other electric revenue includes sales to public authorities, off-system sales to other utilities and various other items.

Remaining Performance Obligations

Remaining performance obligations primarily represent lighting contracts with fixed contract terms. As of September 30, 2024 and December 31, 2023, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $78 million and $78 million, respectively. As allowed under ASC 606, Revenue from Contracts with Customers, these amounts exclude contracts with an original expected length of one year or less and variable amounts for which TEC recognizes revenue at the amount to which it has the right to invoice for services performed. TEC expects to recognize revenue for the remaining performance obligations through 2044.

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Item 2. MANAGEMENT’S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION & RESULTS OF OPERATIONS

Operating Company Results

Amounts included below are pre-tax, except net income and income taxes.

Tampa Electric’s net income for the third quarter of 2024 was $185 million, compared with $170 million for the same period in 2023. Results primarily reflected higher base revenues resulting from customer growth and the 2021 rate case settlement agreement combined with additional storm protection plan return on investment and additional AFUDC earnings, partially offset by the impact of unfavorable weather and higher depreciation expense. Base revenues are energy sales excluding revenues from clauses, gross receipts taxes and franchise fees. Clauses, gross receipts taxes and franchise fees do not have a material effect on net income as these revenues substantially represent a dollar-for-dollar recovery of clause and other pass-through costs.

Revenues for the third quarter of 2024 were $71 million lower than in the same period in 2023, driven by decreased fuel clause and storm surcharge revenue and less favorable weather, partially offset by customer growth and new base rates as a result of the 2021 rate case settlement agreement. Total degree days (a measure of heating and cooling demand) in Tampa Electric's service area in the third quarter of 2024 were 6% above normal (a 20-year statistical degree day average) and 6% below the 2023 period, reflecting unfavorable weather in the third quarter of 2024 compared to 2023. Net energy for load, which is a calendar measurement of energy output, decreased by 1% in the third quarter of 2024 compared to the same period in 2023.

O&M expense for the third quarter of 2024 was $34 million lower than in 2023 due to decreased storm cost recognition of $34 million related to storm surcharge revenue (offset in revenue). Depreciation and amortization expense increased $8 million for the third quarter of 2024 compared to 2023 as a result of additions to facilities and the in-service of generation projects.

Tampa Electric’s net income year-to-date 2024 was $384 million, compared with $381 million for the same period in 2023. Results primarily reflected higher base revenues resulting from customer growth and the 2021 rate case settlement agreement combined with additional storm protection plan return on investment and additional AFUDC earnings, partially offset by the impact of unfavorable weather, higher depreciation expense and higher operations and maintenance expense.

Revenues were $80 million lower than year-to-date 2023 primarily driven by decreased fuel clause and storm surcharge revenue and less favorable weather, partially offset by customer growth and new base rates as a result of the 2021 rate case settlement agreement. Total degree days (a measure of heating and cooling demand) in Tampa Electric's service area year-to-date 2024 were 4% above normal (a 20-year statistical degree day average) and 5% below the 2023 period, reflecting less favorable weather year-to-date in 2024 compared to 2023. Results also reflect a 2% increase in the number of customers year-to-date in 2024 compared to the same period in 2023. Net energy for load, which is a calendar measurement of energy output, for year-to date 2024 was consistent with the same period in 2023.

O&M expense was $33 million lower than year-to-date 2023 due to decreased storm cost recognition of $55 million related to storm surcharge revenue (offset in revenue) partially offset by increased operational expenses of $10 million and regulatory deferrals of $12 million. The increase in operating expenses was primarily due to higher generation costs related to outages, transmission and distribution expense, and bad debt expense. Depreciation and amortization expense increased $24 million year-to-date 2024 compared to the same period in 2023 primarily due to additions to facilities and the in-service of generation projects.

Tampa Electric’s regulated operating statistics for the three and nine months ended September 30, 2024 and 2023 were as follows:

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(millions, except customers and total degree days)	Operating Revenues									Kilowatt-Hours Billed
Three months ended September 30,	2024			2023			% Change			2024		2023		% Change
By Customer Type
Residential (1)	$	471		$	567			(17	)		3,321		3,400		(2	)
Commercial (1)		190			234			(19	)		1,905		1,901		0
Industrial (1)		42			56			(25	)		541		579		(7	)
Other (1)		57			68			(16	)		555		543		2
Regulatory deferrals and unbilled revenue (2)		(55	)		(145	)		(62	)
Total retail sales of electricity		705			780			(10	)		6,322		6,423		(2	)
Off system sales of electricity		4			3			33			115		496		(77	)
Other operating revenue		15			12			25
Total revenues	$	724		$	795			(9	)		6,437		6,919		(7	)
By Sales Type
Base	$	442		$	431			3
Clause		198			241			(18	)
Capital cost recovery for early retired assets		21			21			0
Storm surcharge		9			43			(79	)
Gross receipts taxes and franchise fees		35			43			(19	)
Other		19			16			19
Total revenues	$	724		$	795			(9	)
Retail net energy for load (kilowatt hours)		6,658			6,714			(1	)
Total degree days		1,800			1,908			(6	)
(millions, except customers and total degree days)	Operating Revenues									Kilowatt-Hours Billed
Nine months ended September 30,	2024			2023			% Change			2024		2023		% Change
By Customer Type
Residential (1)	$	1,160		$	1,322			(12	)		7,879		8,020		(2	)
Commercial (1)		522			605			(14	)		4,916		4,898		0
Industrial (1)		124			152			(18	)		1,525		1,573		(3	)
Other (1)		162			185			(12	)		1,453		1,455		(0	)
Regulatory deferrals and unbilled revenue (2)		(78	)		(281	)		(72	)
Total retail sales of electricity		1,890			1,983			(5	)		15,773		15,946		(1	)
Off system sales of electricity		11			6			83			307		583		(47	)
Other operating revenue		43			35			23
Total revenues	$	1,944		$	2,024			(4	)		16,080		16,529		(3	)
By Sales Type
Base	$	1,157		$	1,134			2
Clause		566			614			(8	)
Capital cost recovery for early retired assets		53			52			2
Storm surcharge		22			77			(71	)
Gross receipts taxes and franchise fees		92			106			(13	)
Other		54			41			32
Total revenues	$	1,944		$	2,024			(4	)
Customers at September 30, (thousands)		854			836			2
Retail net energy for load (kilowatt-hours)		17,001			17,022			(0	)
Total degree days		3,720			3,901			(5	)

(1)Reflects a billing cycle measurement.

(2)Primarily reflects unbilled revenue, which incorporates a calendar measurement, and postings for clause recovery deferrals.

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Other Income

For the third quarter of 2024 and 2023, respectively, TEC’s other income was $13 million and $24 million, which included AFUDC-equity of $9 million and $6 million, interest income from affiliate of $0 and $10 million, and other income of $4 million and $8 million. For the year-to-date periods in 2024 and 2023, respectively, TEC’s other income was $33 million and $68 million, which included AFUDC-equity of $20 million and $13 million, interest income from affiliate of $0 and $28 million, and other income of $13 million and $27 million. The increase in AFUDC-equity is primarily due to the timing of resiliency and other projects. The decrease in interest income from affiliate is primarily due to the repayment of the receivable from PGS on December 20, 2023. The decrease in other income is primarily due to lower interest income on the deferred fuel balance.

Interest Expense

For the third quarter of 2024 and 2023, TEC’s interest expense, including interest expense to affiliates and excluding AFUDC-debt, was $52 million and $63 million, respectively. For the year-to-date periods in 2024 and 2023, TEC’s interest expense, including interest expense to affiliates and excluding AFUDC-debt, was $152 million and $184 million, respectively. The decrease was due to lower borrowings resulting from proceeds received from affiliate loan repayments related to the separation of PGS from TEC in 2023 and lower fuel under-recoveries. See Other Income above for information regarding the 2023 interest income from affiliate associated with PGS's allocation of short-term and long-term debt resulting from the separation of PGS from TEC as of January 1, 2023. The 2023 interest income from affiliate partially offsets the impact of TEC's 2023 interest expense within Net Income on the Statement of Income.

Income Taxes

The provisions for income taxes were $27 million and $32 million for the three months ended September 30, 2024 and 2023, respectively, and $53 million and $71 million for the nine months ended September 30, 2024 and 2023, respectively. Compared to the 2023 periods, the decrease in the provision for income taxes for the three and nine months ended September 30, 2024 was primarily due to higher benefit from production tax credits related to solar facilities.

Liquidity and Capital Resources

The table below sets forth the September 30, 2024 liquidity, cash balances and amounts available under the TEC credit facilities.

(millions)
Credit facilities/ commercial paper	$	800
Drawn amounts/letters of credit		(386	)
Available credit facilities		414
Cash		15
Total liquidity	$	429

Cash Impacts Related to Operating Activities

Cash flows from operating activities in the nine months ended September 30, 2024 were $853 million, a decrease of $58 million compared to the same period in 2023. Decreases to cash from operations were primarily due to the timing of fuel cost collection and changes in accounts receivable balances resulting from decreased fuel and storm cost recoveries reflected in customer bills.

Cash Impacts Related to Financing Activities

Cash flows from financing activities for the nine months ended September 30, 2024 resulted in net cash inflows of $143 million. TEC received $555 million of equity contributions from Parent and $495 million of net proceeds from a long-term debt issuance, partially offset by $321 million of net payments in short-term debt with maturities with 90 days or less, $300 million of repayment of long-term debt and $284 million of dividends to Parent.

Covenants in Financing Agreements

In order to utilize its bank credit facilities, TEC must meet certain financial tests as defined in the applicable agreements. In addition, TEC has certain restrictive covenants in specific agreements and debt instruments. At September 30, 2024, TEC was in

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compliance with all applicable financial covenants. The following table contains the significant financial covenant and the performance relative to it at September 30, 2024.

Significant Financial Covenants

			Calculation at
Instrument (1)	Financial Covenant (2)	Requirement/Restriction	September 30, 2024
Credit facility - $800 million	Debt/capital	Cannot exceed 65%	44.5%

(1)See Note 6 to the TEC Condensed Financial Statements for details of the credit facility.

(2)As defined in the instrument.

Credit Ratings of Senior Unsecured Debt at September 30, 2024

	S&P	Moody’s	Fitch
Credit ratings of senior unsecured debt	BBB+	A3	A
Credit ratings outlook	Negative	Negative	Negative

Certain of TEC’s derivative instruments contain provisions that require TEC’s debt to maintain investment-grade credit ratings.

Commitments and Contingencies

See Note 8 to the TEC Condensed Financial Statements for information regarding TEC’s commitments and contingencies as of September 30, 2024.

Regulatory Matters

See Note 3 to the TEC Condensed Financial Statements for information regarding TEC’s regulatory matters, including TEC's request for a base rate increase and TEC's storm restoration cost recovery.

Fair Value Measurements

TEC considered the impact of nonperformance risk in determining the fair value of derivatives. TEC considered the net position with each counterparty, past performance and the intent of the parties, indications of credit deterioration and whether the markets in which TEC transacts have experienced dislocation. At September 30, 2024, the fair value of derivatives was not materially affected by nonperformance risk.

Critical Accounting Policies and Estimates

Critical accounting policies and estimates have not materially changed in 2024. For further discussion of critical accounting policies and estimates, see TEC’s Annual Report on Form 10-K for the year ended December 31, 2023.

Environmental Compliance

On April 24, 2024, the EPA issued its final power plant rules for certain electric generating units, including (i) new GHG standards; (ii) Mercury and Air Toxics Standards (MATS); (iii) Effluent Limit Guidelines (ELGs) and (iv) new Coal Combustion Residual (CCR) rules. The new MATS and ELGs will not have a material impact on TEC. The new GHG standard applies only to existing coal-fired and new natural gas electric generating units and will therefore have limited impact on Tampa Electric generating units. Big Bend Unit 4 is the only unit affected. As written, the rule would require Big Bend Unit 4 to retire in 2039 without major enhancements to the unit, instead of the current planned retirement date of 2040.

The new CCR rule covers any landfill or impoundment in existence at an inactive power facility but not receiving CCRs as of 2015, any CCR placed into the environment for beneficial uses, or CCR units (landfills and impoundments) previously closed under state programs. TEC is currently evaluating the impact of the new CCR rule at the Big Bend Power Station and will likely require site evaluations beginning in 2025 to determine the presence or absence of CCR management units. If found, additional evaluations would be required in 2026 and based on those findings, modifications to the site groundwater monitoring could be required beginning in 2027 to determine the need for additional corrective action.

TEC expects that the costs to comply with new environmental regulations would be eligible for recovery. If approved as prudent, the costs would be reflected in customers’ bills, recovered through either the ECRC or base rates.

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Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Information required by Item 3 is omitted pursuant to General Instruction H(2) of Form 10-Q.

Item 4. CONTROLS AND PROCEDURES

(a)Evaluation of Disclosure Controls and Procedures. TEC’s management, with the participation of its principal executive officer and principal financial officer, has evaluated the effectiveness of TEC’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of September 30, 2024. Based on such evaluation, TEC’s principal financial officer and principal executive officer have concluded that, as of September 30, 2024, TEC’s disclosure controls and procedures are effective.

(b)Changes in Internal Controls. There was no change in TEC’s internal controls over financial reporting (as defined in Rules 13a–15(f) and 15d-15(f) under the Exchange Act) identified in connection with the evaluation of TEC’s internal control over financial reporting that occurred during TEC’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, such controls.

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PART II. OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

From time to time, TEC is involved in various legal, tax and regulatory proceedings before various courts, regulatory commissions and governmental agencies in the ordinary course of business. Where appropriate, accruals are made in accordance with accounting standards for contingencies to provide for matters that are probable of resulting in an estimable loss. For a discussion of legal proceedings and environmental matters, see Note 8 of the TEC Condensed Financial Statements.

Item 6. EXHIBITS

Exhibit
No.	Description
3.1	Restated Articles of Incorporation of Tampa Electric Company, as amended on November 30, 1982 (Exhibit 3 to Registration Statement No. 2-70653 of Tampa Electric Company). (P)	*
3.2	Bylaws of Tampa Electric Company, as amended effective February 2, 2011 (Exhibit 3.4, Form 10-K for 2010 of Tampa Electric Company).	*
31.1	Certification of the Chief Executive Officer of Tampa Electric Company pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of the Chief Financial Officer of Tampa Electric Company pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32	Certification of the Chief Executive Officer and Chief Financial Officer of Tampa Electric Company pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (1)
101.INS**	Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the inline XBRL document.
101.SCH**	Inline XBRL Taxonomy Extension Schema Document.
101.CAL**	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF**	Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB**	Inline XBRL Taxonomy Label Linkbase Document.
101.PRE**	Inline XBRL Taxonomy Presentation Linkbase Document.
104	The cover page from TEC’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 has been formatted in Inline XBRL.

(1)This certification accompanies the Quarterly Report on Form 10-Q and is not filed as part of it.

* Indicates exhibit previously filed with the Securities and Exchange Commission and incorporated herein by reference. Exhibits filed with periodic reports of TECO Energy, Inc. and TEC were filed under Commission File Nos. 1-8180 and 1-5007, respectively.

** The XBRL related information in Exhibit 101 to this quarterly report on Form 10-Q shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that section and shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.

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SIGNATURES

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, thereunto duly authorized.

	TAMPA ELECTRIC COMPANY
	(Registrant)
Date: November 8, 2024	By:	/s/ Gregory W. Blunden
		Gregory W. Blunden
		Treasurer and Chief Financial Officer
		(Principal Financial and Accounting Officer)

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EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Archie Collins, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Tampa Electric Company;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 8, 2024	/s/ ARCHIE COLLINS
		ARCHIE COLLINS
		President and Chief Executive Officer
		(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Gregory W. Blunden, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Tampa Electric Company;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 8, 2024	/s/ GREGORY W. BLUNDEN
		GREGORY W. BLUNDEN
		Treasurer and Chief Financial Officer
		(Principal Financial and Accounting Officer)

EX-32

Exhibit 32

TAMPA ELECTRIC COMPANY

Certification of Periodic Financial Report

Pursuant to 18 U.S.C. Section 1350

Each of the undersigned officers of Tampa Electric Company (the “Company”) certifies, under the standards set forth in and solely for the purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to his or her knowledge, the Quarterly Report on Form 10-Q of the Company for the quarter ended September 30, 2024 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and information contained in that Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	November 8, 2024	/s/ ARCHIE COLLINS
		ARCHIE COLLINS
		President and Chief Executive Officer
		(Principal Executive Officer)
Date:	November 8, 2024	/s/ GREGORY W. BLUNDEN
		GREGORY W. BLUNDEN
		Treasurer and Chief Financial Officer (Principal Financial and Accounting Officer)

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

The foregoing certification is being furnished to the Securities and Exchange Commission as an exhibit to the Form 10-Q and shall not be considered filed as part of the Form 10-Q.

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2024	Nov. 08, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity Registrant Name	TAMPA ELECTRIC COMPANY
Entity Interactive Data Current	Yes
Entity File Number	1-5007
Entity Address, Address Line One	TECO Plaza
Entity Address, Address Line Two	702 N. Franklin Street
Entity Address, City or Town	Tampa
Entity Address, State or Province	FL
Entity Tax Identification Number	59-0475140
Entity Incorporation, State or Country Code	FL
Entity Address, Postal Zip Code	33602
City Area Code	813
Local Phone Number	228-1111
Document Quarterly Report	true
Document Transition Report	false
Entity Central Index Key	0000096271
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		10

XML

Condensed Balance Sheets (Unaudited) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Property, plant and equipment
Utility plant, at original costs	$ 14,487	$ 13,655
Accumulated depreciation	(3,604)	(3,443)
Utility plant, net	10,883	10,212
Other property	17	16
Total property, plant and equipment, net	10,900	10,228
Current assets
Cash and cash equivalents	15	5
Receivables, less allowance for credit losses of $2 and $2 at September 30, 2024 and December 31, 2023, respectively	307	286
Inventories, at average cost
Regulatory assets	104	161
Prepayments and other current assets	40	32
Total current assets	714	720
Other assets
Regulatory assets	841	827
Other	83	56
Total other assets	924	883
Total assets	12,538	11,831
Capitalization
Common stock	5,060	4,505
Accumulated other comprehensive loss	(1)	(1)
Retained earnings	319	219
Total capital	5,378	4,723
Long-term debt	3,934	3,933
Total capitalization	9,312	8,656
Current liabilities
Long-term debt due within one year	0	300
Notes payable	385	209
Accounts payable	302	354
Customer deposits	124	121
Regulatory liabilities	188	94
Accrued interest	45	28
Accrued taxes	79	14
Other	54	43
Total current liabilities	1,186	1,173
Long-term liabilities
Deferred income taxes	920	880
Regulatory liabilities	692	701
Investment tax credits	236	237
Deferred credits and other liabilities	192	184
Total long-term liabilities	2,040	2,002
Commitments and Contingencies (see Note 8)
Total liabilities and capitalization	12,538	11,831
Related Party [Member]
Current assets
Due from affiliates	26	19
Current liabilities
Due to affiliates	9	10
Fuel [Member]
Inventories, at average cost
Utility inventories	40	36
Materials and Supplies [Member]
Inventories, at average cost
Utility inventories	$ 182	$ 181

XML

Condensed Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Allowance for credit losses	$ 2	$ 2

XML

Condensed Statements of Income and Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenues
Electric	$ 724	$ 795	$ 1,944	$ 2,024
Expenses
Fuel	139	179	403	455
Purchased power	25	31	68	65
Operations and maintenance	138	172	414	447
Depreciation and amortization	115	107	340	316
Taxes, other than income	59	67	170	177
Total expenses	476	556	1,395	1,460
Income from operations	248	239	549	564
Other income
Allowance for equity funds used during construction	9	6	20	13
Interest income from affiliates	0	10	0	28
Other income, net	4	8	13	27
Total other income	13	24	33	68
Interest charges
Interest expense	52	60	152	176
Interest expense to affiliates	0	3	0	8
Allowance for borrowed funds used during construction	(3)	(2)	(7)	(4)
Total interest charges	49	61	145	180
Income before provision for income taxes	212	202	437	452
Provision for income taxes	27	32	53	71
Net income	185	170	384	381
Comprehensive income	$ 185	$ 170	$ 384	$ 381

XML

Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities
Net income	$ 384	$ 381
Adjustments to reconcile net income to cash from operating activities:
Depreciation and amortization	340	316
Deferred income taxes and investment tax credits	3	(18)
Allowance for equity funds used during construction	(20)	(13)
Deferred recovery clauses	132	312
Regulatory assets and liabilities	24	75
Pension and post-retirement asset and liabilities	(10)	(20)
Other	5	15
Changes in working capital:
Receivables, less allowance for credit losses	(18)	(132)
Inventories	(5)	(47)
Taxes accrued	55	81
Interest accrued	17	22
Accounts payable	(47)	(51)
Other	(7)	(10)
Cash flows from operating activities	853	911
Cash flows used in investing activities
Capital expenditures	(989)	(889)
Net proceeds from sale of assets	3	0
Cash flows used in investing activities	(986)	(889)
Cash flows from financing activities
Equity contributions from Parent	555	300
Proceeds from long-term debt issuance	495	0
Repayment of long-term debt	(300)	0
Net increase (decrease) in short-term debt (maturities of 90 days or less)	(321)	139
Advances to affiliate	0	(160)
Dividends to Parent	(284)	(302)
Other	(2)	(1)
Cash flows from (used in) financing activities	143	(24)
Net increase (decrease) in cash and cash equivalents	10	(2)
Cash and cash equivalents at beginning of period	5	10
Cash and cash equivalents at end of period	15	8
Supplemental disclosure of non-cash activities
Change in accrued capital expenditures	3	(19)
Change in notes receivable from PGS	$ 0	$ (736)

XML

Condensed Statements of Capitalization (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Beginning balance	$ 5,194	$ 4,670	$ 4,723	$ 5,420
Net income	185	170	384	381
Separation of PGS equity from TEC				(992)
Equity contributions from Parent	135	100	555	300
Dividends to Parent	(136)	(132)	(284)	(302)
Other				1
Ending balance	5,378	4,808	5,378	4,808
Common Stock [Member]
Beginning balance	$ 4,925	$ 4,405	$ 4,505	$ 5,075
Beginning balance	10	10	10	10
Separation of PGS equity from TEC				$ (871)
Equity contributions from Parent	$ 135	$ 100	$ 555	300
Other				1
Ending balance	$ 5,060	$ 4,505	$ 5,060	$ 4,505
Ending balance	10	10	10	10
Retained Earnings [Member]
Beginning balance	$ 270	$ 266	$ 219	$ 346
Net income	185	170	384	381
Separation of PGS equity from TEC				(121)
Dividends to Parent	(136)	(132)	(284)	(302)
Ending balance	319	304	319	304
Accumulated Other Comprehensive Loss [Member]
Beginning balance	(1)	(1)	(1)	(1)
Ending balance	$ (1)	$ (1)	$ (1)	$ (1)

XML

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 185	$ 170	$ 384	$ 381

XML

Insider Trading Arrangements	9 Months Ended
	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

XML

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

1. Summary of Significant Accounting Policies

See TEC’s Annual Report on Form 10-K for the year ended December 31, 2023 for a complete discussion of accounting policies. The significant accounting policies for TEC include:

Principles of Consolidation and Basis of Presentation

TEC is comprised of the electric division, referred to as Tampa Electric, and prior to January 1, 2023, the natural gas division, referred to as PGS. Prior to April 1, 2024, TEC was a wholly owned subsidiary of TECO Energy, which is an indirect, wholly owned subsidiary of Emera. On April 1, 2024, TECO Energy distributed its investment in TEC to TECO Holdings, Inc. in a transaction intended to qualify as a tax-free reorganization. This new corporation is also an indirect, wholly owned subsidiary of Emera.

In the opinion of management, the unaudited condensed financial statements include all adjustments that are of a recurring nature and necessary to state fairly the financial position of TEC as of September 30, 2024 and December 31, 2023, and the results of operations and cash flows for the periods ended September 30, 2024 and 2023. The results of operations for the three and nine months ended September 30, 2024 are not necessarily indicative of the results that can be expected for the entire fiscal year ending December 31, 2024.

The use of estimates is inherent in the preparation of financial statements in accordance with U.S. GAAP. Actual results could differ from these estimates. The year-end Condensed Balance Sheet was derived from audited financial statements; however, this quarterly report on Form 10-Q does not include all year-end disclosures required for an annual report on Form 10-K by U.S. GAAP.

Receivables and Allowance for Credit Losses

Receivables on the Condensed Balance Sheets include receivables from contracts with customers, which consist of services to residential, commercial, industrial and other customers, totaling $307 million and $284 million as of September 30, 2024 and December 31, 2023, respectively. An allowance for credit losses is established based on TEC’s collection experience and reasonable and supportable forecasts that affect the collectibility of the reported amount. Circumstances that could affect TEC’s estimates of credit losses include, but are not limited to, customer credit issues, generating fuel prices, customer deposits and general economic conditions. Accounts are reserved in the allowance or written off once they are deemed to be uncollectible.

As of September 30, 2024 and December 31, 2023, unbilled revenues of $92 million and $63 million, respectively, are included in the “Receivables” line item on the Condensed Balance Sheets.

Accounting for Franchise Fees and Gross Receipts

TEC is allowed to recover certain costs from customers on a dollar-for-dollar basis through rates approved by the FPSC. The amounts included in customers’ bills for franchise fees and gross receipt taxes are included as revenues on the Condensed Statements of Income. Franchise fees and gross receipt taxes payable by TEC are included as an expense on the Condensed Statements of Income in “Taxes, other than income”. These amounts totaled $35 million and $43 million for the three months ended September 30, 2024 and 2023, respectively, and totaled $92 million and $106 million for the nine months ended September 30, 2024 and 2023, respectively.

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New Accounting Pronouncements

9 Months Ended

Sep. 30, 2024

Accounting Changes and Error Corrections [Abstract]

New Accounting Pronouncements

2. New Accounting Pronouncements

Reportable Segment Disclosures

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures. The change in the standard improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The changes improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. The guidance will be effective for annual reporting periods beginning after December 15, 2023, and for interim periods beginning after December 15, 2024. Early adoption is permitted. The standard will be applied retrospectively. TEC is currently evaluating the impact of adoption of the standard on its financial statement disclosures.

Income Tax Disclosures

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures. The standard enhances the transparency, decision usefulness and effectiveness of income tax disclosures by requiring consistent categories and greater disaggregation of information in the reconciliation of income taxes computed using the enacted statutory income tax rate to the actual income tax provision and effective income tax rate, as well as the disaggregation of income taxes paid (refunded) by jurisdiction. The standard also requires disclosure of income (loss) before provision for income taxes and income tax expense (benefit)

in accordance with U.S. Securities and Exchange Commission (SEC) Regulation S-X 210.4-08(h), Rules of General Application – General Notes to Financial Statements: Income Tax Expense, and the removal of disclosures no longer considered cost beneficial or relevant. The guidance will be effective for annual reporting periods beginning after December 15, 2024. Early adoption is permitted. The standard will be applied on a prospective basis, with retrospective application permitted. TEC is currently evaluating the impact of adoption of the standard on its financial statement disclosures.

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU 2024-03, Income Statement Reporting–Comprehensive Income–Expense Disaggregation Disclosures (Subtopic 220-40), Disaggregation of Income Statement Expenses. The standard update improves the disclosures about a public business entity’s expenses by requiring more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation and amortization) included within income statement expense captions. The guidance will be effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The standard updates are to be applied prospectively with the option for retrospective application. TEC is currently evaluating the impact of adoption of the standard update on its financial statement disclosures.

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Regulatory

9 Months Ended

Sep. 30, 2024

Regulated Operations [Abstract]

Regulatory

3. Regulatory

Tampa Electric Base Rates

On April 2, 2024, Tampa Electric requested a base rate increase, reflecting an increased revenue requirement increase of $297 million, effective January 1, 2025, and additional adjustments of $100 million and $72 million for 2026 and 2027, respectively. Tampa Electric’s proposed rates include recovery of solar generation projects, energy storage capacity, a more resilient and modernized energy control center, and other resiliency and reliability projects. Prior to the rate case hearing, Tampa Electric submitted revisions to its requested base rate increase to reflect items that included production tax credits, energy storage life expectancy, and the company’s grid reliability and resilience project. The company’s August 22, 2024, requested revenue requirement reflects a base rate increase of $288 million, effective January 1, 2025, and adjustments of $92 million and $65 million for 2026 and 2027, respectively. From August 26 through 30, 2024, Tampa Electric’s rate case hearing was heard by the FPSC. A decision by the FPSC is expected by the end of 2024.

Tampa Electric Mid-Course Adjustment to Fuel Recovery

On April 2, 2024, Tampa Electric requested a mid-course adjustment to its fuel and capacity charges, reflecting a $138 million reduction over 12 months, from June 2024 through May 2025. The requested reduction is due to a significant decrease in actual and projected 2024 natural gas prices since Tampa Electric submitted its projected 2024 costs in the fall of 2023. On May 7, 2024, the FPSC approved the mid-course adjustment.

Tampa Electric Storm Restoration Cost Recovery

In accordance with Tampa Electric’s 2021 rate case settlement agreement, in the event of a named storm that results in damage to its system, Tampa Electric can petition the FPSC to seek recovery of those costs over a 12-month period or longer as determined by the FPSC, as well as replenish its storm reserve regulatory liability. Based on an FPSC order, if the charges to the storm reserve exceed the reserve liability account balance, the excess is to be carried as a regulatory asset. At June 30, 2024, the balance in the reserve liability for storm restoration costs was $5 million. At September 30, 2024, the balance in the regulatory asset for storm restoration costs was $35 million.

Hurricane Helene made landfall on September 26, 2024. Tampa Electric was impacted by Hurricane Helene, resulting in a peak number of customers out of approximately 100,000. Tampa Electric expects approximately $45 million to $55 million to be charged to the storm reserve regulatory asset and a minimal impact to earnings. The majority of the costs that are expected to be charged to the storm regulatory accounts were recorded in September 2024.

​Hurricane Milton, the worst weather event to impact the area in over 100 years, made landfall on October 9, 2024. Tampa Electric was impacted by Hurricane Milton, resulting in a peak number of customers out of approximately 600,000. Tampa Electric expects approximately $320 million to $370 million to be charged to the storm reserve regulatory asset and a minimal impact to earnings.

Restoration costs for the storms described above will be deferred and are expected to be collected from customers in subsequent periods. Tampa Electric will determine the timing of the request for recovery of Hurricane Helene and Hurricane Milton costs at a future time.

Regulatory Assets and Liabilities

Details of the regulatory assets and liabilities are presented in the following table:

Regulatory Assets and Liabilities
(millions)	September 30, 2024		December 31, 2023
Regulatory assets:
Regulatory tax asset (1)	$	117	$	112
Cost-recovery clauses (2)		17		94
Capital cost recovery for early retired assets (3)		513		507
Postretirement benefits (4)		234		236
Storm reserve (5)		35		7
Other		29		32
Total regulatory assets		945		988
Less: Current portion		104		161
Long-term regulatory assets	$	841	$	827
Regulatory liabilities:
Regulatory tax liability (6)	$	445	$	477
Cost-recovery clauses - deferred balances (2)		75		20
Accumulated reserve - cost of removal (7)		302		271
Other		58		27
Total regulatory liabilities		880		795
Less: Current portion		188		94
Long-term regulatory liabilities	$	692	$	701

(1)The regulatory tax asset is primarily associated with the depreciation and recovery of AFUDC-equity. This asset does not earn a return but rather is included in the capital structure, which is used in the calculation of the weighted cost of capital used to determine revenue requirements. It will be recovered over the expected life of the related assets.

(2)These assets and liabilities are related to FPSC clauses and riders, primarily related to the fuel clause and the decrease in natural gas prices. They are recovered or refunded through cost-recovery mechanisms approved by the FPSC on a dollar-for-dollar basis in a subsequent period.

(3)This asset is related to the remaining net book value of Big Bend Units 1 through 3 and meter assets that were retired. The balance earns a rate of return as permitted by the FPSC and will be recovered as a separate line item on customer bills for a period of 15 years, beginning in 2022 through 2036.

(4)This asset is related to the deferred costs of postretirement benefits and it is amortized over the remaining service life of plan participants. Deferred costs of postretirement benefits that are included in expense are recognized as cost of service for rate-making purposes as permitted by the FPSC.

(5)See "Tampa Electric Storm Restoration Cost Recovery" above for information regarding this reserve. The regulatory asset is included in rate base and earns a rate of return as permitted by the FPSC.

(6)The regulatory tax liability is primarily related to the revaluation of TEC’s deferred income tax balances recorded on December 31, 2017 at the lower corporate income tax rate due to U.S. tax reform. The liability related to the revaluation of the deferred income tax balances is amortized and returned to customers through rate reductions or other revenue offsets based on IRS regulations and the settlement agreement for tax reform benefits approved by the FPSC.

(7)This item represents the non-ARO cost of removal in the accumulated reserve for depreciation. AROs are costs for legally required removal of property, plant and equipment. Non-ARO cost of removal represents estimated funds received from customers through depreciation rates to cover future non-legally required cost of removal of property, plant and equipment, net of salvage value upon retirement, which reduces rate base for ratemaking purposes. This liability is reduced as costs of removal are incurred.

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Income Taxes

9 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

4. Income Taxes

Inflation Reduction Act

On August 16, 2022, the Inflation Reduction Act was signed into legislation and includes numerous tax incentives for clean energy, such as the extension and modification of existing investment and production tax credits for projects placed in service through 2024, the expansion of ITC for energy storage technology beginning in 2023 and introduces new technology-neutral clean energy related credits beginning in 2025. TEC has determined that electing production tax credits for its solar plants placed in service through 2024 will be more beneficial for customers compared to ITCs and has recorded a regulatory liability in recognition of its obligation to pass the tax benefits to customers of $52 million and $23 million as of September 30, 2024 and December 31, 2023, respectively.

Income Tax Expense

TEC is included in a consolidated U.S. federal income tax return with EUSHI and its subsidiaries. TEC’s income tax expense is based upon a standalone return method, modified for the benefits-for-loss allocation in accordance with EUSHI's tax sharing agreement. To the extent that TEC’s cash tax positions are settled differently than the amount reported as realized under the tax sharing agreement, the difference is accounted for as either a capital contribution or a distribution.

TEC’s effective tax rates for the nine months ended September 30, 2024 and 2023 were 12.1% and 15.7%, respectively. The September 30, 2024 and 2023 effective tax rates are an estimate of the annual effective income tax rate. TEC’s effective tax rate for the nine months ended September 30, 2024 and 2023 differed from the statutory rate principally due to production tax credits and amortization of the regulatory tax liability resulting from tax reform. The effective tax rate for the nine months ended September 30, 2024 is lower compared to the same period in 2023 primarily due to production tax credits. See Note 3 for further information regarding the regulatory tax liability.

Unrecognized Tax Benefits

As of September 30, 2024 and December 31, 2023, the amount of unrecognized tax benefits was $11 million and $10 million, respectively, all of which was recorded as a reduction of deferred income tax assets for tax credit carryforwards. The unrecognized tax benefits, if recognized, would reduce TEC’s effective tax rate.

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Employee Postretirement Benefits

9 Months Ended

Sep. 30, 2024

Retirement Benefits [Abstract]

Employee Postretirement Benefits

5. Employee Postretirement Benefits

TEC is a participant in the comprehensive retirement plans of TECO Energy, LLC (formerly known as TECO Energy, Inc. prior to April 1, 2024). The following table presents detail related to TECO Energy’s periodic benefit cost for pension and other postretirement benefits. Amounts disclosed for TECO Energy’s pension benefits include the amounts related to its qualified pension plan and non-qualified, non-contributory SERP and Restoration Plan.

TECO Energy Benefit Cost
(millions)	Pension Benefits						Other Postretirement Benefits
Three months ended September 30,	2024			2023			2024			2023
Components of net periodic benefit cost
Service cost	$	4		$	3		$	1		$	0
Interest cost		9			8			2			2
Expected return on assets		(14	)		(13	)		0			0
Amortization of actuarial loss (gain)		2			2			(1	)		0
Settlement cost (1)		0			0			0			0
Net periodic benefit cost	$	1		$	0		$	2		$	2
Nine months ended September 30,
Components of net periodic benefit cost
Service cost	$	13		$	11		$	1		$	0
Interest cost		26			26			5			6
Expected return on assets		(41	)		(40	)		0			0
Amortization of actuarial loss (gain)		5			4			(2	)		(1	)
Settlement cost (1)		0			2			0			0
Net periodic benefit cost	$	3		$	3		$	4		$	5

(1) Represents TEC's SERP and Restoration Plan settlement charges as a result of the prior retirements of certain executives.

TEC’s portion of the net periodic benefit cost for the three months ended September 30, 2024 and 2023, respectively, was $1 million and $0 million for pension benefits, and $1 million and $1 million for other postretirement benefits. TEC’s portion of the net periodic benefit cost for the nine months ended September 30, 2024 and 2023, respectively, was $1 million and $1 million for pension benefits, and $3 million and $4 million for other postretirement benefits. TEC’s portion of net periodic benefit costs for pension and other benefits is included as an expense on the Condensed Statements of Income in “Operations & maintenance”.

TECO Energy assumed a long-term EROA of 7.05% and a discount rate of 5.27% for pension benefits under its qualified pension plan for 2024. For TECO Energy’s other postretirement benefits, TECO Energy used a discount rate of 5.28% for 2024.

TECO Energy and TECO Holdings made contributions of $16 million and $16 million to its qualified pension plan in the nine months ended September 30, 2024 and 2023, respectively. TEC’s portion of these contributions was $10 million and $10 million during the nine months ended September 30, 2024 and 2023, respectively. TECO Holdings does not expect to make contributions to the pension plan for the remainder of 2024. See Note 1 for further information regarding TECO Holdings.

Included in the benefit cost discussed above, for the three and nine months ended September 30, 2024, $0 million and $2 million, respectively, of unamortized prior service benefits and costs and actuarial gains and losses were reclassified by TEC from regulatory assets to the Condensed Statement of Income, compared with $0 million and $1 million for the three and nine months ended September 30, 2023, respectively.

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Short-Term Debt

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Short-Term Debt

6. Short-Term Debt

Details of TEC’s short-term borrowings are presented in the following table:

	September 30, 2024								December 31, 2023
			Borrowings		Borrowings		Letters				Borrowings		Borrowings		Letters
	Credit		Outstanding -		Outstanding -		of Credit		Credit		Outstanding -		Outstanding -		of Credit
(millions)	Facilities		Credit Facilities (1)		Commercial Paper (1)		Outstanding		Facilities		Credit Facilities (1)		Commercial Paper (1)		Outstanding
Credit facility (2)	$	800	$	0	$	385	$	1	$	800	$	0	$	706	$	1
1-year term facility (3)		0		0		0		0		200		0		0		0
1-year term facility (4)		0		0		0		0		200		0		0		0
Total	$	800	$	0	$	385	$	1	$	1,200	$	0	$	706	$	1

(1)Borrowings outstanding are reported as notes payable.

(2)This credit facility was planned to mature on December 17, 2026. On April 1, 2024, TEC amended the credit facility agreement to extend the maturity date to December 1, 2028. TEC also has an active commercial paper program for up to $800 million, of which the full amount outstanding is backed by TEC’s credit facility. The amount of commercial paper issued results in an equal amount of its credit facility being considered drawn and unavailable. On January 30, 2024, TEC completed a sale of $500 million aggregate principal amount of 4.90% Notes due March 1, 2029. TEC used the net proceeds from this offering for the repayment of a portion of the borrowings outstanding under the credit facility. Therefore, $497 million of borrowings outstanding under the credit facility were reclassified as long-term debt on the Balance Sheet as of December 31, 2023.

(3)On March 1, 2023, TEC entered into a 1-year term facility that matured on February 28, 2024.

(4)On April 3, 2023, TEC entered into a 1-year term facility that matured on April 1, 2024.

At September 30, 2024, these credit facilities required a commitment fee of 12.5 basis points. The weighted-average interest rate on borrowings outstanding under the credit facilities and commercial paper at September 30, 2024 and December 31, 2023 was 5.03% and 5.68%, respectively.

As of September 30, 2024 and December 31, 2023, the carrying value of TEC’s short-term debt was not materially different from the fair value due to the short-term nature of the instruments and because the stated rates approximate market rates. The fair value of TEC’s short-term debt is determined using Level 2 measurements.

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Long-Term Debt

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Long-Term Debt

7. Long-Term Debt

Fair Value of Long-Term Debt

At September 30, 2024, TEC’s long-term debt, including the current portion, had a carrying amount of $3,934 million and an estimated fair market value of $3,629 million. At December 31, 2023, long-term debt, including the current portion, had a carrying amount of $4,233 million and an estimated fair market value of $3,831 million. The fair value of the debt securities is determined using Level 2 measurements.

TEC 4.90% Notes due 2029

On January 30, 2024, TEC completed a sale of $500 million aggregate principal amount of 4.90% Notes due March 1, 2029 (the 2029 Notes). Prior to February 1, 2029, in the case of the 2029 Notes, TEC may redeem all or any part of such series of Notes at its option at a redemption price equal to the greater of (i) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the redemption date on a semi-annual basis at the Treasury Rate plus 15 basis points less interest accrued to the date of redemption or (ii) 100% of the principal amount of the notes to be redeemed, plus, in either case, accrued and unpaid interest thereon to the redemption date. On or after February 1, 2029, TEC may redeem the 2029 Notes, in whole or in part, at any time and from time to time, at a redemption price equal to 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest thereon to the redemption date. TEC used the net proceeds from this offering for the repayment of a portion of the borrowings outstanding under the credit facility. Therefore, $497 million of borrowings outstanding under the credit facility were reclassified from notes payable to long-term debt on the Balance Sheet as of December 31, 2023.

TEC 3.875% Notes due 2024

On July 12, 2024, TEC repaid a $300 million note upon maturity. This note was repaid with proceeds from commercial paper.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

8. Commitments and Contingencies

Legal Contingencies

From time to time, TEC and its subsidiaries are involved in various legal, tax and regulatory proceedings before various courts, regulatory commissions and governmental agencies in the ordinary course of business. Where appropriate, accruals are made in accordance with accounting standards for contingencies to provide for matters that are probable of resulting in an estimable loss.

Long-Term Commitments

TEC has commitments for various purchases as disclosed below, including payment obligations under contractual agreements for fuel, fuel transportation and power purchases that are recovered from customers under regulatory clauses. The following is a schedule of future payments under net purchase obligations/commitments at September 30, 2024:

					Fuel		Long-term
			Capital		and		Service
(millions)	Transportation		Projects (1)		Gas Supply		Agreements		Other (2)		Total
2024	$	35	$	496	$	60	$	6	$	6	$	603
2025		146		54		144		22		8		374
2026		145		14		30		23		2		214
2027		177		5		4		22		2		210
2028		138		0		1		17		1		157
Thereafter		1,320		0		0		33		75		1,428
Total future minimum payments	$	1,961	$	569	$	239	$	123	$	94	$	2,986

(1) These estimates are subject to continuing review and adjustment and actual capital expenditures may vary significantly from these estimates.

(2) Other includes contractual obligations under operating leases, demand side management, and purchased power agreements.

Debt Covenants

TEC must meet certain financial tests, including a debt to capital ratio, as defined in the applicable debt agreements and has certain restrictive covenants in specific agreements and debt instruments. At September 30, 2024, TEC was in compliance with all required covenants.

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Revenue

9 Months Ended

Sep. 30, 2024

Revenues [Abstract]

Revenue

9. Revenue
 

The following disaggregates TEC’s revenue by major source:

(millions)
Three months ended September 30,	2024			2023
Electric revenue
Residential	$	471		$	567
Commercial		190			234
Industrial		42			56
Regulatory deferrals		(56	)		(137	)
Unbilled revenue		1			(8	)
Other (1)		76			83
Total revenue	$	724		$	795
Nine months ended September 30,	2024			2023
Electric revenue
Residential	$	1,160		$	1,322
Commercial		522			605
Industrial		124			152
Regulatory deferrals		(106	)		(297	)
Unbilled revenue		28			16
Other (1)		216			226
Total revenue	$	1,944		$	2,024

(1)Other electric revenue includes sales to public authorities, off-system sales to other utilities and various other items.

Remaining Performance Obligations

Remaining performance obligations primarily represent lighting contracts with fixed contract terms. As of September 30, 2024 and December 31, 2023, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $78 million and $78 million, respectively. As allowed under ASC 606, Revenue from Contracts with Customers, these amounts exclude contracts with an original expected length of one year or less and variable amounts for which TEC recognizes revenue at the amount to which it has the right to invoice for services performed. TEC expects to recognize revenue for the remaining performance obligations through 2044.

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Principles of Consolidation and Basis of Presentation

Principles of Consolidation and Basis of Presentation

TEC is comprised of the electric division, referred to as Tampa Electric, and prior to January 1, 2023, the natural gas division, referred to as PGS. Prior to April 1, 2024, TEC was a wholly owned subsidiary of TECO Energy, which is an indirect, wholly owned subsidiary of Emera. On April 1, 2024, TECO Energy distributed its investment in TEC to TECO Holdings, Inc. in a transaction intended to qualify as a tax-free reorganization. This new corporation is also an indirect, wholly owned subsidiary of Emera.

In the opinion of management, the unaudited condensed financial statements include all adjustments that are of a recurring nature and necessary to state fairly the financial position of TEC as of September 30, 2024 and December 31, 2023, and the results of operations and cash flows for the periods ended September 30, 2024 and 2023. The results of operations for the three and nine months ended September 30, 2024 are not necessarily indicative of the results that can be expected for the entire fiscal year ending December 31, 2024.

The use of estimates is inherent in the preparation of financial statements in accordance with U.S. GAAP. Actual results could differ from these estimates. The year-end Condensed Balance Sheet was derived from audited financial statements; however, this quarterly report on Form 10-Q does not include all year-end disclosures required for an annual report on Form 10-K by U.S. GAAP.

Receivables and Allowance for Credit Losses

Receivables and Allowance for Credit Losses

Receivables on the Condensed Balance Sheets include receivables from contracts with customers, which consist of services to residential, commercial, industrial and other customers, totaling $307 million and $284 million as of September 30, 2024 and December 31, 2023, respectively. An allowance for credit losses is established based on TEC’s collection experience and reasonable and supportable forecasts that affect the collectibility of the reported amount. Circumstances that could affect TEC’s estimates of credit losses include, but are not limited to, customer credit issues, generating fuel prices, customer deposits and general economic conditions. Accounts are reserved in the allowance or written off once they are deemed to be uncollectible.

As of September 30, 2024 and December 31, 2023, unbilled revenues of $92 million and $63 million, respectively, are included in the “Receivables” line item on the Condensed Balance Sheets.

Accounting for Franchise Fees and Gross Receipts

Accounting for Franchise Fees and Gross Receipts

TEC is allowed to recover certain costs from customers on a dollar-for-dollar basis through rates approved by the FPSC. The amounts included in customers’ bills for franchise fees and gross receipt taxes are included as revenues on the Condensed Statements of Income. Franchise fees and gross receipt taxes payable by TEC are included as an expense on the Condensed Statements of Income in “Taxes, other than income”. These amounts totaled $35 million and $43 million for the three months ended September 30, 2024 and 2023, respectively, and totaled $92 million and $106 million for the nine months ended September 30, 2024 and 2023, respectively.

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Regulatory (Tables)

9 Months Ended

Sep. 30, 2024

Regulated Operations [Abstract]

Schedule of Regulatory Assets and Regulatory Liabilities

Details of the regulatory assets and liabilities are presented in the following table:

Regulatory Assets and Liabilities
(millions)	September 30, 2024		December 31, 2023
Regulatory assets:
Regulatory tax asset (1)	$	117	$	112
Cost-recovery clauses (2)		17		94
Capital cost recovery for early retired assets (3)		513		507
Postretirement benefits (4)		234		236
Storm reserve (5)		35		7
Other		29		32
Total regulatory assets		945		988
Less: Current portion		104		161
Long-term regulatory assets	$	841	$	827
Regulatory liabilities:
Regulatory tax liability (6)	$	445	$	477
Cost-recovery clauses - deferred balances (2)		75		20
Accumulated reserve - cost of removal (7)		302		271
Other		58		27
Total regulatory liabilities		880		795
Less: Current portion		188		94
Long-term regulatory liabilities	$	692	$	701

(1)The regulatory tax asset is primarily associated with the depreciation and recovery of AFUDC-equity. This asset does not earn a return but rather is included in the capital structure, which is used in the calculation of the weighted cost of capital used to determine revenue requirements. It will be recovered over the expected life of the related assets.

(2)These assets and liabilities are related to FPSC clauses and riders, primarily related to the fuel clause and the decrease in natural gas prices. They are recovered or refunded through cost-recovery mechanisms approved by the FPSC on a dollar-for-dollar basis in a subsequent period.

(3)This asset is related to the remaining net book value of Big Bend Units 1 through 3 and meter assets that were retired. The balance earns a rate of return as permitted by the FPSC and will be recovered as a separate line item on customer bills for a period of 15 years, beginning in 2022 through 2036.

(4)This asset is related to the deferred costs of postretirement benefits and it is amortized over the remaining service life of plan participants. Deferred costs of postretirement benefits that are included in expense are recognized as cost of service for rate-making purposes as permitted by the FPSC.

(5)See "Tampa Electric Storm Restoration Cost Recovery" above for information regarding this reserve. The regulatory asset is included in rate base and earns a rate of return as permitted by the FPSC.

(6)The regulatory tax liability is primarily related to the revaluation of TEC’s deferred income tax balances recorded on December 31, 2017 at the lower corporate income tax rate due to U.S. tax reform. The liability related to the revaluation of the deferred income tax balances is amortized and returned to customers through rate reductions or other revenue offsets based on IRS regulations and the settlement agreement for tax reform benefits approved by the FPSC.

(7)This item represents the non-ARO cost of removal in the accumulated reserve for depreciation. AROs are costs for legally required removal of property, plant and equipment. Non-ARO cost of removal represents estimated funds received from customers through depreciation rates to cover future non-legally required cost of removal of property, plant and equipment, net of salvage value upon retirement, which reduces rate base for ratemaking purposes. This liability is reduced as costs of removal are incurred.

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Employee Postretirement Benefits (Tables)

9 Months Ended

Sep. 30, 2024

TECO Energy [Member]

Schedule of Net Periodic Benefit Cost

The following table presents detail related to TECO Energy’s periodic benefit cost for pension and other postretirement benefits. Amounts disclosed for TECO Energy’s pension benefits include the amounts related to its qualified pension plan and non-qualified, non-contributory SERP and Restoration Plan.

TECO Energy Benefit Cost
(millions)	Pension Benefits						Other Postretirement Benefits
Three months ended September 30,	2024			2023			2024			2023
Components of net periodic benefit cost
Service cost	$	4		$	3		$	1		$	0
Interest cost		9			8			2			2
Expected return on assets		(14	)		(13	)		0			0
Amortization of actuarial loss (gain)		2			2			(1	)		0
Settlement cost (1)		0			0			0			0
Net periodic benefit cost	$	1		$	0		$	2		$	2
Nine months ended September 30,
Components of net periodic benefit cost
Service cost	$	13		$	11		$	1		$	0
Interest cost		26			26			5			6
Expected return on assets		(41	)		(40	)		0			0
Amortization of actuarial loss (gain)		5			4			(2	)		(1	)
Settlement cost (1)		0			2			0			0
Net periodic benefit cost	$	3		$	3		$	4		$	5

(1) Represents TEC's SERP and Restoration Plan settlement charges as a result of the prior retirements of certain executives.

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Short-Term Debt (Tables)

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Short-Term Debt Credit Facilities

Details of TEC’s short-term borrowings are presented in the following table:

	September 30, 2024								December 31, 2023
			Borrowings		Borrowings		Letters				Borrowings		Borrowings		Letters
	Credit		Outstanding -		Outstanding -		of Credit		Credit		Outstanding -		Outstanding -		of Credit
(millions)	Facilities		Credit Facilities (1)		Commercial Paper (1)		Outstanding		Facilities		Credit Facilities (1)		Commercial Paper (1)		Outstanding
Credit facility (2)	$	800	$	0	$	385	$	1	$	800	$	0	$	706	$	1
1-year term facility (3)		0		0		0		0		200		0		0		0
1-year term facility (4)		0		0		0		0		200		0		0		0
Total	$	800	$	0	$	385	$	1	$	1,200	$	0	$	706	$	1

(1)Borrowings outstanding are reported as notes payable.

(2)This credit facility was planned to mature on December 17, 2026. On April 1, 2024, TEC amended the credit facility agreement to extend the maturity date to December 1, 2028. TEC also has an active commercial paper program for up to $800 million, of which the full amount outstanding is backed by TEC’s credit facility. The amount of commercial paper issued results in an equal amount of its credit facility being considered drawn and unavailable. On January 30, 2024, TEC completed a sale of $500 million aggregate principal amount of 4.90% Notes due March 1, 2029. TEC used the net proceeds from this offering for the repayment of a portion of the borrowings outstanding under the credit facility. Therefore, $497 million of borrowings outstanding under the credit facility were reclassified as long-term debt on the Balance Sheet as of December 31, 2023.

(3)On March 1, 2023, TEC entered into a 1-year term facility that matured on February 28, 2024.

(4)On April 3, 2023, TEC entered into a 1-year term facility that matured on April 1, 2024.

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Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Schedule of Long-term Commitments

The following is a schedule of future payments under net purchase obligations/commitments at September 30, 2024:

					Fuel		Long-term
			Capital		and		Service
(millions)	Transportation		Projects (1)		Gas Supply		Agreements		Other (2)		Total
2024	$	35	$	496	$	60	$	6	$	6	$	603
2025		146		54		144		22		8		374
2026		145		14		30		23		2		214
2027		177		5		4		22		2		210
2028		138		0		1		17		1		157
Thereafter		1,320		0		0		33		75		1,428
Total future minimum payments	$	1,961	$	569	$	239	$	123	$	94	$	2,986

(1) These estimates are subject to continuing review and adjustment and actual capital expenditures may vary significantly from these estimates.

(2) Other includes contractual obligations under operating leases, demand side management, and purchased power agreements.

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Revenue (Tables)

9 Months Ended

Sep. 30, 2024

Revenue Recognition [Abstract]

Summary of Disaggregates TEC Revenue by Major Source

The following disaggregates TEC’s revenue by major source:

(millions)
Three months ended September 30,	2024			2023
Electric revenue
Residential	$	471		$	567
Commercial		190			234
Industrial		42			56
Regulatory deferrals		(56	)		(137	)
Unbilled revenue		1			(8	)
Other (1)		76			83
Total revenue	$	724		$	795
Nine months ended September 30,	2024			2023
Electric revenue
Residential	$	1,160		$	1,322
Commercial		522			605
Industrial		124			152
Regulatory deferrals		(106	)		(297	)
Unbilled revenue		28			16
Other (1)		216			226
Total revenue	$	1,944		$	2,024

(1)Other electric revenue includes sales to public authorities, off-system sales to other utilities and various other items.

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Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Summary Of Significant Accounting Policies [Line Items]
Receivables from contracts with customers	$ 307		$ 307		$ 284
Unbilled revenues	92		92		$ 63
Franchise fees and gross receipts taxes	$ 35	$ 43	$ 92	$ 106

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Regulatory - Additional Information (Detail)						9 Months Ended	12 Months Ended
	Jan. 31, 2027 USD ($)	Jan. 31, 2026 USD ($)	Jan. 31, 2025 USD ($)	Oct. 09, 2024 USD ($) Customer	Sep. 26, 2024 USD ($) Customer	Sep. 30, 2024 USD ($)	May 31, 2025 USD ($)	Jun. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
Public Utilities General Disclosures [Line Items]
Accumulated depreciation						$ 3,604,000,000			$ 3,443,000,000
Regulatory asset for storm restoration costs						$ 945,000,000			$ 988,000,000
Scenario Forecast [Member]
Public Utilities General Disclosures [Line Items]
Adjustments to fuel and capacity charges reduction over period							$ 138,000,000
Storm Restoration Cost Recovery [Member]
Public Utilities General Disclosures [Line Items]
Minimum cost recovery period						12 months
Reserve liability for storm restoration cost								$ 5,000,000
Regulatory asset for storm restoration costs						$ 35,000,000
Tampa Electric Base Rates, on April 02, 2024 [Member] | Scenario Forecast [Member]
Public Utilities General Disclosures [Line Items]
Effect of base rate adjustment on revenue	$ 72,000,000	$ 100,000,000	$ 297,000,000
Tampa Electric Base Rates on August 22, 2024 [Member] | Scenario Forecast [Member]
Public Utilities General Disclosures [Line Items]
Effect of base rate adjustment on revenue	$ 65,000,000	$ 92,000,000	$ 288,000,000
Hurricane Helene [Member]
Public Utilities General Disclosures [Line Items]
Number of customers impacted by storm | Customer					100,000
Hurricane Helene [Member] | Minimum [Member]
Public Utilities General Disclosures [Line Items]
Storm restoration costs charged to reserve					$ 45,000,000
Hurricane Helene [Member] | Maximum [Member]
Public Utilities General Disclosures [Line Items]
Storm restoration costs charged to reserve					$ 55,000,000
Hurricane Milton [Member]
Public Utilities General Disclosures [Line Items]
Number of customers impacted by storm | Customer				600,000
Number of years worst weather event impact on area				100 years
Hurricane Milton [Member] | Minimum [Member] | Scenario Forecast [Member]
Public Utilities General Disclosures [Line Items]
Storm restoration costs charged to reserve				$ 320,000,000
Hurricane Milton [Member] | Maximum [Member] | Scenario Forecast [Member]
Public Utilities General Disclosures [Line Items]
Storm restoration costs charged to reserve				$ 370,000,000

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Regulatory - Schedule of Regulatory Assets and Regulatory Liabilities (Detail) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Regulatory assets:
Regulatory assets	$ 945	$ 988
Less: Current portion	104	161
Long-term regulatory assets	841	827
Regulatory liabilities:
Regulatory liabilities	880	795
Less: Current portion	188	94
Long-term regulatory liabilities	692	701
Regulatory Tax Asset [Member]
Regulatory assets:
Regulatory assets	117	112
Cost-Recovery Clauses [Member]
Regulatory assets:
Regulatory assets	17	94
Capital Cost Recovery for Early Retired Assets [Member]
Regulatory assets:
Regulatory assets	513	507
Postretirement Benefits [Member]
Regulatory assets:
Regulatory assets	234	236
Storm Reserve [Member]
Regulatory assets:
Regulatory assets	35	7
Other [Member]
Regulatory assets:
Regulatory assets	29	32
Regulatory Tax Liability [Member] | Non-Current Liabilities [Member]
Regulatory liabilities:
Regulatory liabilities	445	477
Cost-recovery Clauses - Deferred Balances [Member]
Regulatory liabilities:
Regulatory liabilities	75	20
Accumulated Reserve - Cost of Removal [Member]
Regulatory liabilities:
Regulatory liabilities	302	271
Other [Member]
Regulatory liabilities:
Regulatory liabilities	$ 58	$ 27

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Regulatory - Schedule of Regulatory Assets and Regulatory Liabilities (Parenthetical) (Detail)	9 Months Ended
	Sep. 30, 2024
Capital Cost Recovery for Early Retired Assets [Member]
Schedule Of Regulatory Assets And Liabilities [Line Items]
Settlement agreement cost recovery period	15 years

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Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Income Taxes [Line Items]
Regulatory liability due to obligation to transfer tax rate reduction expense benefit	$ 52		$ 23
Effective tax rate	12.10%	15.70%
Unrecognized tax benefit that would reduce effective tax rate	$ 11		$ 10

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Employee Postretirement Benefits - Schedule of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pension Benefits [Member]
Amortization of:
Net periodic benefit cost	$ 1	$ 0	$ 1	$ 1
Other Postretirement Benefits [Member]
Amortization of:
Net periodic benefit cost	1	1	3	4
TECO Energy [Member] | Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	4	3	13	11
Interest cost	9	8	26	26
Expected return on assets	(14)	(13)	(41)	(40)
Amortization of:
Amortization of actuarial loss (gain)	2	2	5	4
Settlement cost	0	0	0	2
Net periodic benefit cost	1	0	3	3
TECO Energy [Member] | Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	1	0	1	0
Interest cost	2	2	5	6
Expected return on assets	0	0	0	0
Amortization of:
Amortization of actuarial loss (gain)	(1)	0	(2)	(1)
Settlement cost	0	0	0	0
Net periodic benefit cost	$ 2	$ 2	$ 4	$ 5

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Employee Postretirement Benefits - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Defined Benefit Plan Disclosure [Line Items]
Reclassification of regulatory assets to net income as part of periodic benefit cost	$ 0	$ 0	$ 2	$ 1
TECO Energy [Member]
Defined Benefit Plan Disclosure [Line Items]
Long-term EROA			7.05%
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Net periodic benefit cost	1	0	$ 1	1
Employer contributions			10	10
Pension Benefits [Member] | TECO Energy [Member]
Defined Benefit Plan Disclosure [Line Items]
Net periodic benefit cost	1	0	$ 3	3
Discount rate			5.27%
Employer contributions			$ 16
Pension Benefits [Member] | TECO Holdings [Member]
Defined Benefit Plan Disclosure [Line Items]
Employer contributions				16
Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Net periodic benefit cost	1	1	3	4
Other Postretirement Benefits [Member] | TECO Energy [Member]
Defined Benefit Plan Disclosure [Line Items]
Net periodic benefit cost	$ 2	$ 2	$ 4	$ 5
Discount rate			5.28%

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Short-Term Debt - Credit Facilities (Detail) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Line Of Credit Facility [Line Items]
Credit Facilities	$ 800,000,000	$ 1,200,000,000
Borrowings Outstanding	385,000,000	209,000,000
Letters of Credit Outstanding	1,000,000	1,000,000
Credit Facilities [Member]
Line Of Credit Facility [Line Items]
Borrowings Outstanding	0	0
Commercial Paper [Member]
Line Of Credit Facility [Line Items]
Borrowings Outstanding	385,000,000	706,000,000
Credit Facility [Member] | December 1, 2028 [Member]
Line Of Credit Facility [Line Items]
Credit Facilities	800,000,000	800,000,000
Letters of Credit Outstanding	1,000,000	1,000,000
Credit Facility [Member] | December 1, 2028 [Member] | Credit Facilities [Member]
Line Of Credit Facility [Line Items]
Borrowings Outstanding	0	0
Credit Facility [Member] | December 1, 2028 [Member] | Commercial Paper [Member]
Line Of Credit Facility [Line Items]
Borrowings Outstanding	385,000,000	706,000,000
1-year Term Facility [Member] | February 28, 2024 [Member]
Line Of Credit Facility [Line Items]
Credit Facilities	0	200,000,000
Letters of Credit Outstanding	0	0
1-year Term Facility [Member] | February 28, 2024 [Member] | Credit Facilities [Member]
Line Of Credit Facility [Line Items]
Borrowings Outstanding	0	0
1-year Term Facility [Member] | February 28, 2024 [Member] | Commercial Paper [Member]
Line Of Credit Facility [Line Items]
Borrowings Outstanding	0	0
1-year Term Facility [Member] | April 1, 2024 [Member]
Line Of Credit Facility [Line Items]
Credit Facilities	0	200,000,000
Letters of Credit Outstanding	0	0
1-year Term Facility [Member] | April 1, 2024 [Member] | Credit Facilities [Member]
Line Of Credit Facility [Line Items]
Borrowings Outstanding	0	0
1-year Term Facility [Member] | April 1, 2024 [Member] | Commercial Paper [Member]
Line Of Credit Facility [Line Items]
Borrowings Outstanding	$ 0	$ 0

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Short-Term Debt - Credit Facilities (Parenthetical) (Detail) - USD ($)				9 Months Ended	12 Months Ended
	Jan. 30, 2024	Apr. 03, 2023	Mar. 01, 2023	Sep. 30, 2024	Dec. 31, 2023
Line Of Credit Facility [Line Items]
Debt instrument, offering date	Jan. 30, 2024
Aggregate principal amount issued	$ 500,000,000
Stated interest rate	4.90%
Debt instrument maturity date	Mar. 01, 2029
Credit Facility [Member]
Line Of Credit Facility [Line Items]
Credit facility maturity date				Dec. 01, 2028	Dec. 01, 2028
Credit Facility [Member] | Long-Term Debt [Member]
Line Of Credit Facility [Line Items]
Borrowings outstanding	$ 497,000,000
1-year Term Facility [Member]
Line Of Credit Facility [Line Items]
Credit facility maturity date		Apr. 01, 2024	Feb. 28, 2024
Maximum [Member] | Commercial Paper Program [Member]
Line Of Credit Facility [Line Items]
Commercial paper issued				$ 800,000,000

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Short-Term Debt - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Line Of Credit Facility [Line Items]
Commitment fees, percentage	0.125%
Weighted-average interest rate	5.03%	5.68%

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Long-Term Debt - Additional Information (Detail) - USD ($) $ in Millions			9 Months Ended
	Jul. 12, 2024	Jan. 30, 2024	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Debt Instrument [Line Items]
Long-term debt			$ 3,934		$ 4,233
Estimated fair value			3,629		$ 3,831
Aggregate principal amount issued		$ 500
Stated interest rate		4.90%
Debt instrument maturity date		Mar. 01, 2029
Repayment of notes			$ 300	$ 0
Debt instrument, offering date		Jan. 30, 2024
3.875% Notes [Member]
Debt Instrument [Line Items]
Repayment of notes	$ 300
4.90% Notes [Member]
Debt Instrument [Line Items]
Debt instrument, maturity year		2029
Aggregate principal amount issued		$ 500
Stated interest rate		4.90%
Debt instrument maturity date		Mar. 01, 2029
Redeemable principal amount percentage		100.00%
Basis spread on federal funds rate		15.00%
Redeemable principal amount percentage		100.00%
Debt instrument, offering date		Jan. 30, 2024
4.90% Notes [Member] | Long-Term Debt [Member] | Credit Facility [Member]
Debt Instrument [Line Items]
Borrowings outstanding		$ 497

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Commitments and Contingencies - Schedule of Long-term Commitments (Detail) $ in Millions	Sep. 30, 2024 USD ($)
Other Commitments [Line Items]
2024	$ 603
2025	374
2026	214
2027	210
2028	157
Thereafter	1,428
Total future minimum payments	2,986
Transportation [Member]
Other Commitments [Line Items]
2024	35
2025	146
2026	145
2027	177
2028	138
Thereafter	1,320
Total future minimum payments	1,961
Capital Projects [Member]
Other Commitments [Line Items]
2024	496
2025	54
2026	14
2027	5
2028	0
Thereafter	0
Total future minimum payments	569
Fuel and Gas Supply [Member]
Other Commitments [Line Items]
2024	60
2025	144
2026	30
2027	4
2028	1
Thereafter	0
Total future minimum payments	239
Long-term Service Agreements [Member]
Other Commitments [Line Items]
2024	6
2025	22
2026	23
2027	22
2028	17
Thereafter	33
Total future minimum payments	123
Other [Member]
Other Commitments [Line Items]
2024	6
2025	8
2026	2
2027	2
2028	1
Thereafter	75
Total future minimum payments	$ 94

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Revenue - Summary of Disaggregates TEC Revenue by Major Source (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation Of Revenue [Line Items]
Total electric revenue	$ 724	$ 795	$ 1,944	$ 2,024
Total revenue	724	795	1,944	2,024
Residential [Member]
Disaggregation Of Revenue [Line Items]
Total electric revenue	471	567	1,160	1,322
Commercial [Member]
Disaggregation Of Revenue [Line Items]
Total electric revenue	190	234	522	605
Industrial [Member]
Disaggregation Of Revenue [Line Items]
Total electric revenue	42	56	124	152
Regulatory Deferrals [Member]
Disaggregation Of Revenue [Line Items]
Total electric revenue	(56)	(137)	(106)	(297)
Unbilled Revenue [Member]
Disaggregation Of Revenue [Line Items]
Total electric revenue	1	(8)	28	16
Other [Member]
Disaggregation Of Revenue [Line Items]
Total electric revenue	$ 76	$ 83	$ 216	$ 226

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Revenue - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Regulated Operating Revenue [Abstract]
Remaining performance obligations, transaction price	$ 78	$ 78
Remaining performance obligations, expected year of revenue recognition	2044