UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
OR
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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 |
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Exact name of each registrant as specified in its charter, state of incorporation, address of principal executive offices, telephone number |
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I.R.S. Employer Identification Number |
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(a ( |
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Securities registered or to be registered pursuant to Section 12(b) of the Act:
Title of each class |
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Trading symbol(s) |
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Name of each exchange on which registered |
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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.
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).
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 |
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Accelerated filer |
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Smaller reporting company |
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Emerging growth company |
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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
As of August 10, 2021, there were
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 2021 and 2020 include the following:
Term |
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Meaning |
AFUDC |
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allowance for funds used during construction |
AFUDC-debt |
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debt component of allowance for funds used during construction |
AFUDC-equity |
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equity component of allowance for funds used during construction |
APBO |
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accumulated postretirement benefit obligation |
ARO |
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asset retirement obligation |
ASC |
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Accounting Standards Codification |
CAD |
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Canadian dollars |
CAIR |
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Clean Air Interstate Rule |
CCRs |
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coal combustion residuals |
CMO |
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collateralized mortgage obligation |
CNG |
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compressed natural gas |
CO2 |
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carbon dioxide |
COVID-19 |
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coronavirus disease 2019 |
CPI |
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consumer price index |
CSAPR |
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Cross State Air Pollution Rule |
CT |
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combustion turbine |
ECRC |
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environmental cost recovery clause |
Emera |
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Emera Inc., a geographically diverse energy and services company headquartered in Nova Scotia, Canada |
EPA |
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U.S. Environmental Protection Agency |
ERISA |
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Employee Retirement Income Security Act |
EROA |
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expected return on plan assets |
EUSHI |
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Emera US Holdings Inc., a wholly owned subsidiary of Emera, which is the sole shareholder of TECO Energy’s common stock |
FASB |
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Financial Accounting Standards Board |
FDEP |
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Florida Department of Environmental Protection |
FERC |
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Federal Energy Regulatory Commission |
FPSC |
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Florida Public Service Commission |
IGCC |
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integrated gasification combined-cycle |
IOU |
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investor owned utility |
IRS |
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Internal Revenue Service |
ITCs |
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investment tax credits |
kWac |
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kilowatt on an alternating current basis |
LNG |
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liquefied natural gas |
MBS |
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mortgage-backed securities |
MD&A |
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the section of this report entitled Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Merger |
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Merger of Emera US Inc. with and into TECO Energy, with TECO Energy as the surviving corporation |
MGP |
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manufactured gas plant |
MMBTU |
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one million British Thermal Units |
MRV |
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market-related value |
MW |
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megawatt(s) |
MWH |
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megawatt-hour(s) |
NAV |
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net asset value |
Note |
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Note to consolidated financial statements |
NPNS |
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normal purchase normal sale |
O&M expenses |
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operations and maintenance expenses |
OCI |
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other comprehensive income |
OPC |
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Office of Public Counsel |
OPEB |
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other postemployment benefits |
Parent |
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TECO Energy, Inc., the direct parent company of Tampa Electric Company |
PBGC |
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Pension Benefit Guarantee Corporation |
PBO |
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projected benefit obligation |
PGA |
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purchased gas adjustment |
PGS |
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Peoples Gas System, the gas division of Tampa Electric Company |
PPA |
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power purchase agreement |
2
Term |
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Meaning |
PRP |
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potentially responsible party |
R&D |
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research and development |
REIT |
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real estate investment trust |
RFP |
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request for proposal |
ROE |
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return on common equity |
Regulatory ROE |
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return on common equity as determined for regulatory purposes |
S&P |
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Standard and Poor’s |
SCR |
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selective catalytic reduction |
SEC |
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U.S. Securities and Exchange Commission |
SoBRAs |
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solar base rate adjustments |
SERP |
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Supplemental Executive Retirement Plan |
STIF |
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short-term investment fund |
Tampa Electric |
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Tampa Electric, the electric division of Tampa Electric Company |
TEC |
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Tampa Electric Company |
TECO Energy |
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TECO Energy, Inc., the direct parent company of Tampa Electric Company |
TSI |
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TECO Services, Inc. |
U.S. GAAP |
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generally accepted accounting principles in the United States |
VIE |
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variable interest entity |
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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 2020 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.
3
TAMPA ELECTRIC COMPANY
Consolidated Condensed Balance Sheets
Unaudited
Assets |
June 30, |
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December 31, |
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(millions) |
2021 |
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2020 |
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Property, plant and equipment |
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Utility plant |
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Electric |
$ |
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$ |
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Gas |
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Utility plant, at original costs |
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Accumulated depreciation |
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Utility plant, net |
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Other property |
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Total property, plant and equipment, net |
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Current assets |
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Cash and cash equivalents |
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Receivables, less allowance for credit losses of $ |
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Due from affiliates |
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Inventories, at average cost |
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Fuel |
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Materials and supplies |
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Regulatory assets |
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Prepayments and other current assets |
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Total current assets |
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Deferred debits |
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Regulatory assets |
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Other |
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Total deferred debits |
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Total assets |
$ |
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$ |
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The accompanying notes are an integral part of the consolidated condensed financial statements.
4
TAMPA ELECTRIC COMPANY
Consolidated Condensed Balance Sheets - continued
Unaudited
Liabilities and Capitalization |
June 30, |
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December 31, |
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(millions) |
2021 |
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2020 |
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Capitalization |
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Common stock |
$ |
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$ |
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Accumulated other comprehensive loss |
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Retained earnings |
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Total capital |
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Long-term debt |
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Total capitalization |
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Current liabilities |
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Long-term debt due within one year |
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Notes payable |
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Accounts payable |
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Due to affiliates |
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Customer deposits |
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Regulatory liabilities |
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Accrued interest |
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Accrued taxes |
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Other |
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Total current liabilities |
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Long-term liabilities |
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Deferred income taxes |
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Regulatory liabilities |
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Investment tax credits |
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Deferred credits and other liabilities |
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Total long-term liabilities |
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Commitments and Contingencies (see Note 8) |
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Total liabilities and capitalization |
$ |
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$ |
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The accompanying notes are an integral part of the consolidated condensed financial statements.
5
TAMPA ELECTRIC COMPANY
Consolidated Condensed Statements of Income and Comprehensive Income
Unaudited
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Three months ended June 30, |
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(millions) |
2021 |
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2020 |
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Revenues |
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Electric |
$ |
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$ |
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Gas |
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Total revenues |
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Expenses |
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Fuel |
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Purchased power |
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Cost of natural gas sold |
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Operations and maintenance |
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Depreciation and amortization |
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Taxes, other than income |
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Total expenses |
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Income from operations |
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Other income |
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Allowance for equity funds used during construction |
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Other income, net |
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Total other income |
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Interest charges |
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Interest expense |
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Allowance for borrowed funds used during construction |
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( |
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Total interest charges |
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Income before provision for income taxes |
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Provision for income taxes |
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Net income |
$ |
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$ |
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Comprehensive income |
$ |
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$ |
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The accompanying notes are an integral part of the consolidated condensed financial statements.
6
TAMPA ELECTRIC COMPANY
Consolidated Condensed Statements of Income and Comprehensive Income
Unaudited
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Six months ended June 30, |
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(millions) |
2021 |
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2020 |
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Revenues |
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Electric |
$ |
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$ |
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Gas |
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Total revenues |
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Expenses |
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Fuel |
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Purchased power |
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Cost of natural gas sold |
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Operations and maintenance |
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Depreciation and amortization |
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Taxes, other than income |
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Total expenses |
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Income from operations |
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Other income |
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Allowance for equity funds used during construction |
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Other income, net |
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Total other income |
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Interest charges |
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Interest expense |
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Allowance for borrowed funds used during construction |
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( |
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( |
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Total interest charges |
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Income before provision for income taxes |
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Provision for income taxes |
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Net income |
$ |
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$ |
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Comprehensive income |
$ |
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$ |
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The accompanying notes are an integral part of the consolidated condensed financial statements.
7
TAMPA ELECTRIC COMPANY
Consolidated Condensed Statements of Cash Flows
Unaudited
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Six months ended June 30, |
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(millions) |
2021 |
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2020 |
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Cash flows from operating activities |
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Net income |
$ |
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$ |
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Adjustments to reconcile net income to cash from operating activities: |
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Depreciation and amortization |
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Deferred income taxes and investment tax credits |
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Allowance for equity funds used during construction |
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( |
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( |
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Deferred recovery clauses |
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( |
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Receivables, less allowance for credit losses |
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( |
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( |
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Prepayments and other deposits |
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( |
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( |
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Taxes accrued |
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Accounts payable |
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( |
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( |
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Regulatory assets and liabilities |
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( |
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( |
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Other |
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( |
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Cash flows from operating activities |
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Cash flows used in investing activities |
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Capital expenditures |
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( |
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( |
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Net proceeds from sale of assets |
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Cash flows used in investing activities |
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( |
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( |
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Cash flows from financing activities |
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Equity contributions from Parent |
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Proceeds from long-term debt issuance |
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Repayment of long-term debt |
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( |
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Net decrease in short-term debt (maturities of 90 days or less) |
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( |
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( |
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Proceeds from other short-term debt (maturities over 90 days) |
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Repayment of other short-term debt (maturities over 90 days) |
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( |
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Dividends to Parent |
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( |
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( |
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Cash flows from financing activities |
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Net increase (decrease) in cash and cash equivalents |
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( |
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Cash and cash equivalents at beginning of period |
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Cash and cash equivalents at end of period |
$ |
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$ |
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Supplemental disclosure of non-cash activities |
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Change in accrued capital expenditures |
$ |
( |
) |
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$ |
( |
) |
The accompanying notes are an integral part of the consolidated condensed financial statements.
8
TAMPA ELECTRIC COMPANY
Consolidated Condensed Statements of Capital
Unaudited
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Accumulated |
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Other |
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Common |
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Retained |
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Comprehensive |
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Total |
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(millions, except share amounts) |
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Shares |
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Stock |
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Earnings |
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Loss |
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Capital |
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Three months ended June 30, 2021 |
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Balance, March 31, 2021 |
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$ |
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$ |
( |
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$ |
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Net income |
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Equity contributions from Parent |
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Dividends to Parent |
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( |
) |
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( |
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Balance, June 30, 2021 |
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$ |
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$ |
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$ |
( |
) |
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$ |
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Three months ended June 30, 2020 |
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Balance, March 31, 2020 |
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$ |
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$ |
( |
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$ |
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Net income |
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Equity contributions from Parent |
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Dividends to Parent |
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( |
) |
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( |
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Other |
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|
|
( |
) |
|
|
|
|
|
|
( |
) |
Balance, June 30, 2020 |
|
|
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
( |
) |
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2020 |
|
|
|
|
|
|
|
|
|
$ |
|
|
|
$ |
( |
) |
|
$ |
|
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity contributions from Parent |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends to Parent |
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
( |
) |
Balance, June 30, 2021 |
|
|
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
( |
) |
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2019 |
|
|
|
|
|
|
|
|
|
$ |
|
|
|
$ |
( |
) |
|
$ |
|
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity contributions from Parent |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends to Parent |
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
( |
) |
Other |
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
( |
) |
Balance, June 30, 2020 |
|
|
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
( |
) |
|
$ |
|
|
The accompanying notes are an integral part of the consolidated condensed financial statements.
9
TAMPA ELECTRIC COMPANY
NOTES TO CONSOLIDATED 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, 2020 for a complete discussion of accounting policies. The significant accounting policies for TEC include:
Principles of Consolidation and Basis of Presentation
TEC is a wholly owned subsidiary of TECO Energy, which is an indirect, wholly owned subsidiary of Emera. TEC is comprised of the electric division, referred to as Tampa Electric, and the natural gas division, referred to as PGS.
Intercompany balances and transactions within the divisions have been eliminated in consolidation. In the opinion of management, the unaudited consolidated condensed financial statements include all adjustments that are of a recurring nature and necessary to state fairly the financial position of TEC as of June 30, 2021 and December 31, 2020, and the results of operations and cash flows for the periods ended June 30, 2021 and 2020. The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results that can be expected for the entire fiscal year ending December 31, 2021.
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 Consolidated 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.
Since 2020, the outbreak of COVID-19 has resulted in governments worldwide enacting emergency measures to combat the spread of the virus. While management considered the impact of the COVID-19 pandemic in TEC’s estimates and results, the financial statements as of June 30, 2021 and December 31, 2020 and for the three and six months ended June 30, 2021 and 2020 were not materially impacted by the COVID-19 pandemic.
Receivables and Allowance for Credit Losses
Receivables from contracts with customers, which consist of services to residential, commercial, industrial and other customers, were $
As of June 30, 2021 and December 31, 2020, unbilled revenues of $
Accounting for Franchise Fees and Gross Receipts
Tampa Electric and PGS are 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 Consolidated Condensed Statements of Income. Franchise fees and gross receipt taxes payable by Tampa Electric and PGS are included as an expense on the Consolidated Condensed Statements of Income in “Taxes, other than income”. These amounts totaled $
2. New Accounting Pronouncements
TEC considers the applicability and impact of all ASUs issued by the FASB. The ASUs that have been issued, but that are not yet effective, are consistent with those disclosed in TEC’s Annual Report on Form 10-K for the year ended December 31, 2020.
10
3. Regulatory
Tampa Electric Base Rates
On September 27, 2017, Tampa Electric filed with the FPSC an amended and restated settlement agreement that replaced the existing 2013 base rate settlement agreement and extended it another
The amended agreement provides for SoBRAs for TEC’s investments in up to
On December 12, 2017, TEC filed its first petition regarding the SoBRAs along with supporting tariffs demonstrating the cost-effectiveness of the September 1, 2018 tranche representing
The true-up filing for SoBRA tranche 1 and 2 revenue requirement estimates that were included in base rates as of September 2018 and January 2019, respectively, was submitted on April 30, 2020, and the FPSC approved the amount on August 18, 2020. The $
On August 6, 2021, TEC filed with the FPSC a joint motion for approval of a settlement agreement dated as of
Tampa Electric Big Bend Modernization Project
Tampa Electric expects to invest approximately $
11
Tampa Electric plans to retire Big Bend Unit 3 in 2023 as it is in the best interest of customers from economic, environmental risk and operational perspectives. Similar to the retirement plan for Unit 1 and Unit 2, Tampa Electric will continue to account for its existing investment in Unit 3 in electric utility plant and depreciate the assets using the current depreciation rates until December 31, 2021.
On December 30, 2020, Tampa Electric filed a depreciation and dismantlement study and request for capital recovery schedule for all three units with the FPSC.
Tampa Electric Mid-Course Adjustment to Fuel Recovery
In July 2021, Tampa Electric requested a mid-course adjustment to its fuel and capacity charges, effective with September 2021 customer bills, due to an increase in fuel commodity and capacity costs in 2021. On August 3, 2021, the FPSC approved the request to recover $
Tampa Electric Storm Protection Cost Recovery Clause and Settlement Agreement
On October 3, 2019, the FPSC issued a rule to implement a Storm Protection Plan (SPP) Cost Recovery Clause. This new clause provides a process for Florida investor-owned utilities, including Tampa Electric, to recover transmission and distribution storm hardening costs for incremental activities not already included in base rates. Tampa Electric submitted its storm protection plan with the FPSC on April 10, 2020. On April 27, 2020, Tampa Electric submitted a settlement agreement with the FPSC which specified a $
The June 9, 2020 settlement agreement approved by the FPSC described above also included approval of Tampa Electric’s petition to eliminate its $
PGS Base Rates
On June 8, 2020, PGS filed a petition for an increase in rates and service charges effective January 2021. On November 19, 2020, the FPSC approved a settlement agreement filed by PGS. The settlement agreement provides for an increase in base rates by $
Regulatory Assets and Liabilities
Details of the regulatory assets and liabilities are presented in the following table:
12
Regulatory Assets and Liabilities |
|
|
|
|
|
|
|
(millions) |
June 30, 2021 |
|
|
December 31, 2020 |
|
||
Regulatory assets: |
|
|
|
|
|
|
|
Regulatory tax asset (1) |
$ |
|
|
|
$ |
|
|
Cost-recovery clauses (2) |
|
|
|
|
|
|
|
Environmental remediation (3) |
|
|
|
|
|
|
|
Postretirement benefits (4) |
|
|
|
|
|
|
|
Asset retirement obligation (5) |
|
|
|
|
|
|
|
Other |
|
|
|
|
|
|
|
Total regulatory assets |
|
|
|
|
|
|
|
Less: Current portion |
|
|
|
|
|
|
|
Long-term regulatory assets |
$ |
|
|
|
$ |
|
|
Regulatory liabilities: |
|
|
|
|
|
|
|
Regulatory tax liability (6) |
$ |
|
|
|
$ |
|
|
Cost-recovery clauses (2) |
|
|
|
|
|
|
|
Accumulated reserve - cost of removal (7) |
|
|
|
|
|
|
|
Storm reserve (8) |
|
|
|
|
|
|
|
Other |
|
|
|
|
|
|
|
Total regulatory liabilities |
|
|
|
|
|
|
|
Less: Current portion |
|
|
|
|
|
|
|
Long-term regulatory liabilities |
$ |
|
|
|
$ |
|
|
(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. The regulatory tax asset balance reflects the impact of the federal tax rate reduction. |
(2) |
These assets and liabilities are related to FPSC clauses and riders. 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 costs associated with environmental remediation primarily at MGP sites. The balance is included in rate base, partially offsetting the related liability, and earns a rate of return as permitted by the FPSC. The timing of recovery is based on a settlement agreement approved by the FPSC. |
(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) |
This asset is related to costs associated with an asset retirement obligation, which is a legal obligation for the future retirement of certain tangible, long-lived assets. This regulatory asset does not earn a return because it is offset with related assets and liabilities within rate base. It is recovered and removed as the obligation is settled and removed as the activities for the retirement of the related assets have been completed. |
(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 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. |
(8) |
As a result of Tampa Electric’s 2013 rate case settlement, 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 |
13
4. Income Taxes
CARES Act
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. The CARES Act includes several business provisions including deferral in employer payroll taxes and an employee retention payroll tax credit. On December 27, 2020, the Consolidated Appropriations Act, 2021 (the 2021 Act) was signed into law. The 2021 Act provides for modifications and expansion of the employee retention payroll tax credit enacted under the CARES Act. These Acts did not have a material impact to TEC’s financial statements.
American Rescue Plan Act of 2021
On March 11, 2021, the American Rescue Plan Act of 2021 (the Act) was signed into law. The Act includes an extension of the employee retention credit through December 31, 2021. The Act did not have a material impact to TEC’s financial statements.
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 separate return method, modified for the benefits-for-loss allocation in accordance with respective tax sharing agreements with TECO Energy and EUSHI. 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 reflected in common stock.
TEC’s effective tax rates for the six months ended June 30, 2021 and 2020 were
Unrecognized Tax Benefits
As of June 30, 2021 and December 31, 2020, the amount of unrecognized tax benefits was $
14
5. Employee Postretirement Benefits
TEC is a participant in the comprehensive retirement plans of TECO Energy.
TECO Energy Benefit Cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(millions) |
Pension Benefits |
|
|
Other Postretirement Benefits |
|
||||||||||
Three months ended June 30, |
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
Components of net periodic benefit cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service cost |
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
Interest cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expected return on assets |
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
Amortization of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actuarial loss (gain) |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
Net periodic benefit cost |
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
Six months ended June 30, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of net periodic benefit cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service cost |
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
Interest cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expected return on assets |
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
Amortization of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actuarial loss (gain) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Settlement cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net periodic benefit cost |
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
TEC’s portion of the net periodic benefit cost for the three months ended June 30, 2021 and 2020, respectively, was $
TECO Energy assumed a long-term EROA of
TECO Energy made contributions of $
Included in the benefit cost discussed above, for the three and six months ended June 30, 2021, $
15
6. Short-Term Debt
Details of TEC’s short-term borrowings are presented in the following table:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2021 |
|
|
December 31, 2020 |
|
|||||||||||||||||||||
|
|
|
|
|
Borrowings |
|
Borrowings |
|
|
Letters |
|
|
|
|
|
|
|
|
|
|
Letters |
|
||||
|
Credit |
|
|
Outstanding - |
|
Outstanding - |
|
|
of Credit |
|
|
Credit |
|
|
Borrowings |
|
|
of Credit |
|
|||||||
(millions) |
Facilities |
|
|
Credit Facilities (1) |
|
Commercial Paper (1) |
|
|
Outstanding |
|
|
Facilities |
|
|
Outstanding (1) |
|
|
Outstanding |
|
|||||||
5-year facility (2) |
$ |
|
|
|
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
3-year accounts receivable facility (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-year term facility (4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
$ |
|
|
|
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
(1) |
Borrowings outstanding are reported as notes payable. |
(2) |
This 5-year facility matures |
(3) |
This 3-year facility matured on |
(4) |
This 1-year term facility was terminated on |
At June 30, 2021, the credit facility required a commitment fee of
Commercial Paper Program
On May 25, 2021, TEC established a commercial paper program (the Program) under which TEC may issue on a private placement basis unsecured commercial paper notes (the Notes). Amounts available under the Program may be borrowed, repaid and reborrowed with the aggregate amount of the Notes outstanding under the Program at any time not to exceed $
Accounts Receivable Facility
On
Non Revolving Term Loan
On February 6, 2020, TEC entered into a
5-Year Credit Facility
On December 18, 2020, TEC amended and restated its bank credit facility, entering into a Sixth Amended and Restated Credit Agreement. The amendment extended the maturity date of the credit facility from
16
7. Long-Term Debt
Fair Value of Long-Term Debt
At June 30, 2021, TEC’s long-term debt, including the current portion, had a carrying amount of $
Tampa Electric Company 2.40% Notes due 2031 and 3.45% Notes due 2051
On
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.
Superfund and Former Manufactured Gas Plant Sites
TEC, through its Tampa Electric and PGS divisions, is a PRP for certain superfund sites and, through its PGS division, for certain former MGP sites. While the joint and several liability associated with these sites presents the potential for significant response costs, as of June 30, 2021 and December 31, 2020, TEC has estimated its ultimate financial liability to be $
The estimated amounts represent only the portion of the cleanup costs attributable to TEC. The estimates to perform the work are based on TEC’s experience with similar work, adjusted for site-specific conditions and agreements with the respective governmental agencies. The estimates are made in current dollars, are not discounted and do not assume any insurance recoveries.
In instances where other PRPs are involved, most of those PRPs are creditworthy and are likely to continue to be creditworthy for the duration of the remediation work. However, in those instances that they are not, TEC could be liable for more than TEC’s currently assessed percentage of the remediation costs.
Factors that could impact these estimates include the ability of other PRPs to pay their pro-rata portion of the cleanup costs, additional testing and investigation which could expand the scope of the cleanup activities, additional liability that might arise from the cleanup activities themselves or changes in laws or regulations that could require additional remediation. Under current regulations, these costs are recoverable through customer rates established in subsequent base rate proceedings. See Note 3 for information regarding the related regulatory asset.
17
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term |
|
|
|
|
|
|
|
Demand |
|
|
|
|
|
||
|
|
Purchased |
|
|
|
|
|
|
Capital |
|
|
Fuel and |
|
|
Service |
|
|
|
Operating |
|
|
Side |
|
|
|
|
|
||||||
(millions) |
|
Power |
|
|
Transportation |
|
|
Projects |
|
|
Gas Supply |
|
|
Agreements |
|
|
|
Leases |
|
|
Management |
|
|
Total |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thereafter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total future minimum payments |
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
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 June 30, 2021, TEC was in compliance with all required covenants.
18
9. Segment Information
(millions) |
Tampa |
|
|
|
|
|
|
|
|
|
|
Tampa Electric |
|
||
Three months ended June 30, |
Electric |
|
|
PGS |
|
|
Eliminations |
|
|
Company |
|
||||
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues - external |
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
Intracompany sales |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
Total revenues |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
Total interest charges |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues - external |
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
Intracompany sales |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
Total revenues |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
Total interest charges |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues - external |
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
Intracompany sales |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
Total revenues |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
Total interest charges |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues - external |
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
Intracompany sales |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
Total revenues |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
Total interest charges |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
Total assets at June 30, 2021 |
$ |
|
|
|
$ |
|
|
|
$ |
( |
) |
(1) |
$ |
|
|
Total assets at December 31, 2020 |
$ |
|
|
|
$ |
|
|
|
$ |
( |
) |
(1) |
$ |
|
|
(1) |
Amounts primarily relate to consolidated deferred tax reclassifications. Deferred tax assets are reclassified and netted with deferred tax liabilities upon consolidation. |
10. Revenue
The following disaggregates TEC’s revenue by major source:
(millions) |
Tampa |
|
|
|
|
|
|
|
|
|
|
Tampa Electric |
|
||
Three months ended June 30, 2021 |
Electric |
|
|
PGS |
|
|
Eliminations |
|
|
Company |
|
||||
Electric revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory deferrals and unbilled revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (1) |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
Total electric revenue |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
Gas revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total gas revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
$ |
|
|
|
$ |
|
|
|
$ |
( |
) |
|
$ |
|
|
19
Three months ended June 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electric revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory deferrals and unbilled revenue |
|
( |
) |
|
|
|
|
|
|
|
|
|
|
( |
) |
Other (1) |
|
|
|
` |
|
|
|
|
|
( |
) |
|
|
|
|
Total electric revenue |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
Gas revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (3) |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
Total gas revenue |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
Total revenue |
$ |
|
|
|
$ |
|
|
|
$ |
( |
) |
|
$ |
|
|
20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(millions) |
Tampa |
|
|
|
|
|
|
|
|
|
|
Tampa Electric |
|
||
Six months ended June 30, 2021 |
Electric |
|
|
PGS |
|
|
Eliminations |
|
|
Company |
|
||||
Electric revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory deferrals and unbilled revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (1) |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
Total electric revenue |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
Gas revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (3) |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
Total gas revenue |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
Total revenue |
$ |
|
|
|
$ |
|
|
|
$ |
( |
) |
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electric revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory deferrals and unbilled revenue |
|
( |
) |
|
|
|
|
|
|
|
|
|
|
( |
) |
Other (1) |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
Total electric revenue |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
Gas revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (3) |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
Total gas revenue |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
Total revenue |
$ |
|
|
|
$ |
|
|
|
$ |
( |
) |
|
$ |
|
|
(1) Other electric revenue includes sales to public authorities, off-system sales to other utilities and various other items. |
(2) Industrial gas revenue includes sales to power generation customers. |
(3) Other gas revenue includes off-system sales to other utilities and various other items. |
Remaining Performance Obligations
Remaining performance obligations primarily represent lighting contracts and gas transportation contracts with fixed contract terms. As of June 30, 2021 and December 31, 2020, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $
21
11. Fair Value Measurements
Items Measured at Fair Value on a Recurring Basis
Accounting guidance governing fair value measurements and disclosures provides that fair value represents the amount that would be received in selling an asset or the amount that would be paid in transferring a liability in an orderly transaction between market participants. As a basis for considering assumptions that market participants would use in pricing an asset or liability, accounting guidance also establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:
Level 1: |
Observable inputs, such as quoted prices in active markets; |
Level 2: |
Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and |
Level 3: |
Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions. |
There were no Level 3 assets or liabilities for the periods presented.
As of June 30, 2021 and December 31, 2020, 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. See Note 7 for information regarding the fair value of long-term debt.
12. Subsequent Events
On August 6, 2021, TEC filed with the FPSC a joint motion for approval of a settlement agreement dated as of August 6, 2021 by and among TEC and the intervenors in TEC’s rate case filed with the FPSC in April 2021. In addition, on August 3, 2021, the FPSC approved Tampa Electric’s request for a mid-course adjustment to its fuel and capacity charges, effective with September 2021 customer bills. See Note 3 – Tampa Electric Base Rates, Tampa Electric Big Bend Modernization Project and Tampa Electric Mid-Course Adjustment to Fuel Recovery for further information.
22
Item 2. |
MANAGEMENT’S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION & RESULTS OF OPERATIONS |
Earnings Summary - Unaudited
|
|
|
|
Three months ended June 30, |
|
|
Six months ended June 30, |
|
||||||||||
(millions) |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Tampa Electric |
|
$ |
532 |
|
|
$ |
454 |
|
|
$ |
979 |
|
|
$ |
875 |
|
|
|
PGS |
|
|
123 |
|
|
|
97 |
|
|
|
278 |
|
|
|
227 |
|
|
|
Eliminations |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(4 |
) |
|
|
(6 |
) |
|
|
TEC |
|
$ |
654 |
|
|
$ |
549 |
|
|
$ |
1,253 |
|
|
$ |
1,096 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Tampa Electric |
|
$ |
102 |
|
|
$ |
106 |
|
|
$ |
167 |
|
|
$ |
165 |
|
|
|
PGS |
|
|
19 |
|
|
|
11 |
|
|
|
46 |
|
|
|
29 |
|
|
|
TEC |
|
$ |
121 |
|
|
$ |
117 |
|
|
$ |
213 |
|
|
$ |
194 |
|
Operating Results
Second quarter 2021 net income was $121 million, compared to $117 million in the second quarter of 2020. Second quarter 2021 results were impacted by higher base revenues and AFUDC, partially offset by higher depreciation expense, O&M expense and interest expense at Tampa Electric and PGS. Year-to-date 2021 net income was $213 million, compared to $194 million in the 2020 year-to-date period. Year-to-date 2021 results were impacted by higher base revenues at PGS, lower O&M at Tampa Electric and higher AFUDC at Tampa Electric, partially offset by higher depreciation expense at Tampa Electric and PGS. See Operating Company Results below for further detail.
COVID-19 Pandemic
To date, the COVID-19 pandemic has not had a material financial impact on TEC’s earnings. TEC’s top priority continues to be the health and safety of its customers and employees. Management continues to monitor developments, economic conditions and recommendations by local and national public health authorities related to COVID-19 and is adjusting operational requirements as needed.
To date, customer defaults have not been material and as of June 30, 2021, adjustments to the allowance for credit losses have not had a material impact on the financial statements. TEC is continuing to monitor customer accounts and to work with customers on payment arrangements.
The extent of the future impact of the COVID-19 pandemic on TEC’s financial results and business operations is uncertain at this time but is not expected to have a material financial impact in 2021. Future impacts will depend on a variety of factors, including the duration and severity of the pandemic, further government actions, timing and effectiveness of vaccinations, future economic activity and energy usage. TEC plans to complete its capital investment projects and continue to reliably and safely serve its customers. Capital project delays and supply chain disruptions have been immaterial to date but, depending on the duration of the COVID-19 pandemic, forecasted capital expenditures may be delayed due to supply chain disruptions, travel restrictions or the deferral of non-essential capital work. TEC currently expects to continue to have adequate liquidity given its cash position, existing bank facilities and access to capital but will continue to monitor the impact of the COVID-19 pandemic on future cash flows. For further information on the potential future impacts of COVID-19 on TEC, refer to the COVID-19 Pandemic and Liquidity and Capital Resources sections of TEC’s Annual Report on Form 10-K for the year ended December 31, 2020.
Operating Company Results
Amounts included in the operating company discussions below are pre-tax, except net income and income taxes.
Electric Division
Tampa Electric’s net income for the second quarter of 2021 was $102 million, compared with $106 million for the same period in 2020. Results primarily reflected higher depreciation expense and higher interest expense, partially offset by higher AFUDC, lower income tax expense and higher base revenues. 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.
23
Revenues were $78 million higher than in the same quarter in 2020 primarily driven by higher fuel recovery clause revenue as a result of higher fuel costs. Base revenue increased by $3 million primarily due to customer growth, warmer weather and higher base rates from additional solar generation projects being placed in-service, partially offset by the revenues now being recovered through the Storm Protection Plan Cost Recovery Clause. Total degree days (a measure of heating and cooling demand) in Tampa Electric's service area in the second quarter of 2021 were 8% above normal (a 20-year statistical degree day average) and 3% above the 2020 period, reflecting favorable weather in the second quarter of 2021 compared to 2020. Total net energy for load, which is a calendar measurement of energy output, in the second quarter of 2021 was 2% higher than the same period in 2020.
O&M expense, excluding all FPSC-approved cost-recovery clauses, was $2 million higher than in the same period of 2020 primarily due to higher employee benefit costs. Depreciation and amortization expense increased $12 million in the second quarter of 2021 compared to the same period in 2020 primarily due to normal additions to facilities to reliably serve customers, the in-service of solar generation projects, and an $8 million intangible software amortization credit in 2020 due to a regulatory agreement approved by the FPSC (see Note 3 to the TEC Consolidated Condensed Financial Statements for further information).
Tampa Electric’s net income year-to-date 2021 was $167 million, compared with $165 million for the same period in 2020. Results primarily reflected higher AFUDC and lower O&M expense, partially offset by higher depreciation expense.
Revenues were $104 million higher than year-to-date 2020 primarily driven by higher fuel recovery clause revenue as a result of higher fuel costs. Base revenue was consistent with year-to-date 2020 due to customer growth and higher base rates from additional solar generation projects being placed in-service, offset by less warm weather in the first quarter of 2021 and the revenues now being recovered through the Storm Protection Plan Cost Recovery Clause. Total degree days (a measure of heating and cooling demand) in Tampa Electric's service area year-to-date 2021 were 6% above normal (a 20-year statistical degree day average) and 4% below the 2020 period, reflecting milder weather year-to-date 2021 compared to 2020. Total net energy for load, which is a calendar measurement of energy output, year-to-date 2021 was consistent with year-to-date 2020.
O&M expense, excluding all FPSC-approved cost-recovery clauses, was $10 million lower than year-to-date 2020 primarily due to lower generation costs related to timing and scope of outages, lower labor costs as a result of lower coal generation, the recovery of Storm Protection Plan clause expenses and lower employee benefit costs. Depreciation and amortization expense was $17 million higher in year-to-date 2021 primarily due to normal additions to facilities to reliably serve customers, the in-service of solar generation projects, and an $8 million intangible software amortization credit in 2020 due to a regulatory agreement approved by the FPSC (see Note 3 to the TEC Consolidated Condensed Financial Statements for further information).
24
Tampa Electric’s regulated operating statistics for the three and six months ended June 30, 2021 and 2020 were as follows:
(millions, except customers and total degree days) |
|
Operating Revenues |
|
|
Kilowatt-Hours Billed |
|
||||||||||||||||||
Three months ended June 30, |
|
2021 |
|
|
2020 |
|
|
% Change |
|
|
2021 |
|
|
2020 |
|
|
% Change |
|
||||||
By Customer Type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential (1) |
|
$ |
276 |
|
|
$ |
254 |
|
|
|
9 |
|
|
|
2,472 |
|
|
|
2,518 |
|
|
|
(2 |
) |
Commercial (1) |
|
|
144 |
|
|
|
121 |
|
|
|
19 |
|
|
|
1,525 |
|
|
|
1,431 |
|
|
|
7 |
|
Industrial (1) |
|
|
41 |
|
|
|
32 |
|
|
|
28 |
|
|
|
541 |
|
|
|
452 |
|
|
|
20 |
|
Other (1) |
|
|
47 |
|
|
|
39 |
|
|
|
21 |
|
|
|
478 |
|
|
|
439 |
|
|
|
9 |
|
Regulatory deferrals and unbilled revenue (2) |
|
|
11 |
|
|
|
(3 |
) |
|
|
(467 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Total retail sales of electricity |
|
|
519 |
|
|
|
443 |
|
|
|
17 |
|
|
|
5,016 |
|
|
|
4,840 |
|
|
|
4 |
|
Off system sales of electricity |
|
|
1 |
|
|
|
0 |
|
|
|
#DIV/0 |
! |
|
|
16 |
|
|
|
11 |
|
|
|
45 |
|
Other operating revenue |
|
|
12 |
|
|
|
11 |
|
|
|
9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
$ |
532 |
|
|
$ |
454 |
|
|
|
17 |
|
|
|
5,032 |
|
|
|
4,851 |
|
|
|
4 |
|
Customers at June 30, (thousands) |
|
|
802 |
|
|
|
786 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail net energy for load (kilowatt hours) |
|
|
5,516 |
|
|
|
5,388 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total degree days |
|
|
1,345 |
|
|
|
1,311 |
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By Customer Type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential (1) |
|
$ |
508 |
|
|
$ |
459 |
|
|
|
11 |
|
|
|
4,525 |
|
|
|
4,398 |
|
|
|
3 |
|
Commercial (1) |
|
|
270 |
|
|
|
246 |
|
|
|
10 |
|
|
|
2,850 |
|
|
|
2,804 |
|
|
|
2 |
|
Industrial (1) |
|
|
78 |
|
|
|
69 |
|
|
|
13 |
|
|
|
1,015 |
|
|
|
949 |
|
|
|
7 |
|
Other (1) |
|
|
90 |
|
|
|
81 |
|
|
|
11 |
|
|
|
912 |
|
|
|
883 |
|
|
|
3 |
|
Regulatory deferrals and unbilled revenue (2) |
|
|
9 |
|
|
|
(5 |
) |
|
|
(280 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Total retail sales of electricity |
|
|
955 |
|
|
|
850 |
|
|
|
12 |
|
|
|
9,302 |
|
|
|
9,034 |
|
|
|
3 |
|
Off system sales of electricity |
|
|
1 |
|
|
|
1 |
|
|
|
0 |
|
|
|
27 |
|
|
|
33 |
|
|
|
(18 |
) |
Other operating revenue |
|
|
23 |
|
|
|
24 |
|
|
|
(4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
$ |
979 |
|
|
$ |
875 |
|
|
|
12 |
|
|
|
9,329 |
|
|
|
9,067 |
|
|
|
3 |
|
Customers at June 30, (thousands) |
|
|
802 |
|
|
|
786 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail net energy for load (kilowatt-hours) |
|
|
9,952 |
|
|
|
9,939 |
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total degree days |
|
|
1,953 |
|
|
|
2,034 |
|
|
|
(4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Reflects a billing cycle measurement. |
(2) |
Primarily reflects unbilled revenue, which incorporates a calendar measurement, and postings for clause recovery deferrals. |
Natural Gas Division
PGS had net income of $19 million for the second quarter, compared with $11 million in the second quarter of 2020. Results reflect a 5% higher number of customers in the second quarter of 2021 compared to the second quarter of 2020. Revenues were $26 million higher than the prior year quarter primarily due to higher base rates that went into effect January 2021, customer growth, higher PGA clause-related revenues, and COVID-19 impacts lowering commercial sales in the 2020 period. These revenue increases were partially offset by lower cast iron bare steel replacement rider revenue that is now being recovered through the new base rates and lower off-system sales in 2021. The base revenues increase, excluding the shift of cast iron bare steel rider-related revenue, was $18 million. Operations and maintenance expense, excluding all FPSC-approved cost-recovery clauses, was $2 million higher than in the 2020 quarter primarily due to higher labor and contractor costs to operate and maintain the growing distribution system. Depreciation and amortization increased $3 million due to asset growth.
PGS had net income of $46 million for the 2021 year-to-date period, compared with $29 million in the 2020 period. Revenues were $51 million higher than the prior period primarily due to higher base rates that went into effect January 2021, customer growth, higher PGA clause-related revenues, and COVID-19 impacts lowering commercial sales in the second quarter of 2020. These revenue increases were partially offset by lower cast iron bare steel replacement rider revenue that is now being recovered through the new base rates and lower off-system sales in 2021. The base revenues increase excluding the shift of cast iron bare steel rider-related revenue was $32 million. Operations and maintenance expense, excluding all FPSC-approved cost-recovery clauses, was $2 million higher than in 2020 primarily due to the same quarterly drivers mentioned above. Depreciation and amortization increased $5 million due to asset growth.
25
PGS’s regulated operating statistics for the three and six months ended June 30, 2021 and 2020 were as follows:
(millions, except customers) |
|
Operating Revenues |
|
|
Therms |
|
||||||||||||||||||
Three months ended June 30, |
|
2021 |
|
|
2020 |
|
|
% Change |
|
|
2021 |
|
|
2020 |
|
|
% Change |
|
||||||
By Customer Type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
$ |
49 |
|
|
$ |
36 |
|
|
|
36 |
|
|
|
21 |
|
|
|
19 |
|
|
|
11 |
|
Commercial |
|
|
46 |
|
|
|
28 |
|
|
|
64 |
|
|
|
126 |
|
|
|
99 |
|
|
|
27 |
|
Industrial |
|
|
5 |
|
|
|
4 |
|
|
|
25 |
|
|
|
117 |
|
|
|
118 |
|
|
|
(1 |
) |
Power generation |
|
|
1 |
|
|
|
1 |
|
|
|
0 |
|
|
|
200 |
|
|
|
238 |
|
|
|
(16 |
) |
Off system sales |
|
|
4 |
|
|
|
8 |
|
|
|
(50 |
) |
|
|
10 |
|
|
|
38 |
|
|
|
(74 |
) |
Other operating revenues |
|
|
15 |
|
|
|
17 |
|
|
|
(12 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
120 |
|
|
$ |
94 |
|
|
|
28 |
|
|
|
474 |
|
|
|
512 |
|
|
|
(7 |
) |
By Sales Type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
System supply |
|
$ |
66 |
|
|
$ |
50 |
|
|
|
32 |
|
|
|
39 |
|
|
|
62 |
|
|
|
(37 |
) |
Transportation |
|
|
39 |
|
|
|
27 |
|
|
|
44 |
|
|
|
435 |
|
|
|
450 |
|
|
|
(3 |
) |
Other operating revenues |
|
|
15 |
|
|
|
17 |
|
|
|
(12 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
120 |
|
|
$ |
94 |
|
|
|
28 |
|
|
|
474 |
|
|
|
512 |
|
|
|
(7 |
) |
Customers at June 30, (thousands) |
|
|
436 |
|
|
|
414 |
|
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By Customer Type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
$ |
116 |
|
|
$ |
84 |
|
|
|
38 |
|
|
|
59 |
|
|
|
52 |
|
|
|
13 |
|
Commercial |
|
|
99 |
|
|
|
69 |
|
|
|
43 |
|
|
|
266 |
|
|
|
244 |
|
|
|
9 |
|
Industrial |
|
|
9 |
|
|
|
8 |
|
|
|
13 |
|
|
|
229 |
|
|
|
230 |
|
|
|
(0 |
) |
Power generation |
|
|
3 |
|
|
|
3 |
|
|
|
0 |
|
|
|
418 |
|
|
|
472 |
|
|
|
(11 |
) |
Off system sales |
|
|
10 |
|
|
|
17 |
|
|
|
(41 |
) |
|
|
25 |
|
|
|
80 |
|
|
|
(69 |
) |
Other operating revenues |
|
|
34 |
|
|
|
39 |
|
|
|
(13 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
271 |
|
|
$ |
220 |
|
|
|
23 |
|
|
|
997 |
|
|
|
1,078 |
|
|
|
(8 |
) |
By Sales Type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
System supply |
|
$ |
154 |
|
|
$ |
118 |
|
|
|
31 |
|
|
|
101 |
|
|
|
144 |
|
|
|
(30 |
) |
Transportation |
|
|
83 |
|
|
|
63 |
|
|
|
32 |
|
|
|
896 |
|
|
|
934 |
|
|
|
(4 |
) |
Other operating revenues |
|
|
34 |
|
|
|
39 |
|
|
|
(13 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
271 |
|
|
$ |
220 |
|
|
|
23 |
|
|
|
997 |
|
|
|
1,078 |
|
|
|
(8 |
) |
Customers at June 30, (thousands) |
|
|
436 |
|
|
|
414 |
|
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income
For the second quarter of 2021 and 2020, TEC’s other income was $12 million and $9 million, respectively, and included AFUDC-equity of $10 million and $7 million, respectively. For the year-to-date periods in 2021 and 2020, TEC’s other income was $23 million and $16 million, respectively, and included AFUDC-equity of $20 million and $13 million, respectively. The increase in AFUDC-equity was primarily due to the timing of Tampa Electric’s modernization of its Big Bend Power Station and the construction of solar projects.
Interest Expense
For the second quarter of 2021 and 2020, TEC’s interest expense, excluding AFUDC-debt, was $39 million and $35 million, respectively. For the year-to-date periods in 2021 and 2020, TEC’s interest expense, excluding AFUDC-debt, was $77 million and $72 million, respectively. The increase was due to higher borrowings to support TEC’s ongoing capital investment program.
Income Taxes
The provisions for income taxes were $21 million and $24 million for the three months ended June 30, 2021 and 2020, respectively, and $41 million and $40 million for the six months ended June 30, 2021 and 2020, respectively. Compared to the 2020 period, the provision for income taxes for the six months ended June 30, 2021 was the result of higher pre-tax income, offset by higher tax benefits due to AFUDC, higher amortization of the regulatory liability related to tax reform, higher investment tax credit amortization related to solar projects and higher R&D tax credits. Compared to the second quarter in prior year, the provision for incomes taxes for the three months ended June 30, 2021 decreased primarily due to higher tax benefits due to AFUDC, higher amortization of the regulatory liability related to tax reform, higher investment tax credit
26
amortization related to solar projects and higher R&D tax credits.
Liquidity and Capital Resources
The table below sets forth the June 30, 2021 liquidity, cash balances and amounts available under the TEC credit facilities.
|
|
|
|
|
|
(millions) |
|
|
|
|
|
Credit facilities |
|
$ |
800 |
|
|
Drawn amounts/letters of credit |
|
|
411 |
|
|
Available credit facilities |
|
|
389 |
|
|
Cash and short-term investments |
|
|
24 |
|
|
Total liquidity |
|
$ |
413 |
|
|
Cash Impacts Related to Operating Activities
Cash flows from operating activities for the six months ended June 30, 2021 were $346 million, a decrease of $36 million compared to the same period in 2020. Decreases to cash from operations were primarily the result of higher fuel under-recoveries, partially offset by the timing of invoice payments.
Cash Impacts Related to Financing Activities
Cash flows from financing activities for the six months ended June 30, 2021 resulted in net cash inflows of $256 million. TEC received $790 million of proceeds from long-term debt and $290 million of equity contributions (see Note 7 to the TEC Consolidated Condensed Financial Statements for further information regarding TEC’s long-term debt). These increases in cash flows were partially offset by repayment of $300 million of other short-term debt with a maturity of greater than 90 days, repayment of long-term debt of $278 million, dividend payments to Parent of $181 million and a net repayment of $65 million of short-term debt with maturities of 90 days or less.
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 June 30, 2021, TEC was in compliance with all applicable financial covenants. The following table contains the significant financial covenant and the performance relative to it at June 30, 2021.
Significant Financial Covenants
|
|
|
|
|
|
Calculation at |
|
Instrument (1) |
|
Financial Covenant (2) |
|
Requirement/Restriction |
|
June 30, 2021 |
|
Credit facility - $800 million |
|
Debt/capital |
|
Cannot exceed 65% |
|
46% |
|
(1) |
See Note 6 to the TEC Consolidated Condensed Financial Statements for details of the credit facility. |
(2) |
As defined in the instrument. |
Credit Ratings of Senior Unsecured Debt at June 30, 2021
|
|
S&P |
|
Moody’s |
|
Fitch |
Credit ratings of senior unsecured debt |
|
BBB+ |
|
A3 |
|
A |
Credit ratings outlook |
|
Stable |
|
Positive |
|
Stable |
Certain of TEC’s derivative instruments contain provisions that require TEC’s debt to maintain investment grade credit ratings.
27
Commitments and Contingencies
See Note 8 to the TEC Consolidated Condensed Financial Statements for information regarding TEC’s commitments and contingencies as of June 30, 2021.
Regulatory Matters
See Note 3 to the TEC Consolidated Condensed Financial Statements for information regarding TEC’s regulatory matters as of June 30, 2021.
Fair Value Measurements
The valuation methods used to determine fair value are described in Notes 7 and 11 to the TEC Consolidated Condensed Financial Statements. In addition, TEC considered the impact of nonperformance risk in determining the fair value of derivatives. TEC considered the net position with each counterparty, past performance of both parties and the intent of the parties, indications of credit deterioration and whether the markets in which TEC transacts have experienced dislocation. At June 30, 2021, 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 2021. For further discussion of critical accounting policies and estimates, see TEC’s Annual Report on Form 10-K for the year ended December 31, 2020.
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 June 30, 2021. Based on such evaluation, TEC’s principal financial officer and principal executive officer have concluded that, as of June 30, 2021, 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. |
28
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 Consolidated Condensed Financial Statements.
Item 5. |
OTHER INFORMATION |
On August 6, 2021, TEC filed with the FPSC a joint motion for approval of a settlement agreement dated as of August 6, 2021 (the Settlement Agreement) by and among TEC and the intervenors in TEC’s rate case filed with the FPSC in April 2021. The Settlement Agreement agrees to an increase in base rates annually effective with January 2022 bills, to generate a $191 million increase in revenue consisting of $123 million of traditional base rate charges and $68 million in a new charge to recover the costs of retiring assets. The Settlement Agreement further includes two subsequent year adjustments of $90 million and $21 million, effective January 2023 and January 2024, respectively. Under the agreement, the allowed equity in the capital structure will continue to be 54% from investor sources of capital. The Settlement Agreement includes an allowed regulatory ROE range of 9.0% to 11.0% with a 9.95% midpoint. The Settlement Agreement allows a 25 basis point increase in the allowed ROE range and mid-point, and $10 million of additional revenue, if the average 30-year United States Treasury Bond yield rate for any period of six consecutive months is at least 50 basis points greater than the yield rate on the date the FPSC votes to approve the agreement. Under the agreement, base rates will not change from January 1, 2022 through December 31, 2024, unless TEC’s earned ROE was to fall below the bottom of the range during that time. The Settlement Agreement contains a provision whereby TEC agrees to quantify the future impact of a decrease or increase in corporate income tax rates on net operating income through a reduction or increase in base revenues within 180 days of when such tax change becomes law or its effective date. The Settlement Agreement further creates a mechanism to recover the costs of retiring coal generation units and meter assets over a period of 15 years which survives the term of this agreement. The Settlement Agreement would not become effective unless and until approved by the FPSC, which is expected to consider the matter by October 2021.
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 |
|
* |
|
|
|
|
|
4.1 |
|
* |
|
|
|
|
|
31.1 |
|
|
|
|
|
|
|
31.2 |
|
|
|
|
|
|
|
32 |
|
|
|
|
|
|
|
99.1 |
|
|
|
|
|
|
|
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. |
|
|
|
|
|
29
Exhibit |
|
|
|
No. |
|
Description |
|
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 June 30, 2021 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. |
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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.
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TAMPA ELECTRIC COMPANY |
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(Registrant) |
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Date: August 10, 2021 |
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By: |
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/s/ Gregory W. Blunden |
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Gregory W. Blunden |
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Treasurer and Chief Financial Officer (Chief Accounting Officer) |
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(Principal Financial and Accounting Officer) |
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