TECO Energy 10-Q 2002 Q3 Quarterly report

Exhibit 12

TECO Energy, Inc.

RATIO OF EARNINGS TO FIXED CHARGES

The following table sets forth the company’s ratio of earnings to fixed charges for the periods indicated.

	Nine months ended			Twelve months ended			Year ended Dec. 31, (1)
$ millions	Sept. 30, 2002			Sept. 30, 2002			2001			2000			1999			1998			1997
Income before income tax	$	258		$	301		$	272		$	256		$	280		$	277		$	294
Interest expense (5)		145			194			190			176			131			109			110
Preferred dividends		—			—			—			—			—			—			1
Less: Income from equity     investments		1			(2	)		(7	)		(8	)		(3	)		(3	)		(3	)
Earnings before taxes        and fixed charges	$	404		$	493		$	455		$	424		$	408		$	383		$	402
Interest expense (5)	$	145		$	194		$	190		$	176		$	131		$	109		$	110
Interest on refunding     bonds		(1	)		(1	)		(1	)		(1	)		(1	)		(1	)		(1	)
Preferred dividends		—			—			—			—			—			—			1
Total fixed charges	$	144		$	193		$	189		$	175		$	130		$	108		$	110
Ratio of earnings to fixed     charges		2.81			2.55			2.41			2.42			3.14	(2)		3.55	(3)		3.65	(4)

         For the purposes of calculating these ratios, earnings consist of income from continuing operations before income taxes, income or loss from equity investments and fixed charges. Fixed charges consist of interest on indebtedness, amortization of debt premium, the interest component of rentals and preferred stock dividend requirements.

(1)	All prior periods presented reflect the reclassification of TECO Coalbed Methane’s results from continuing operations to discontinued operations. In September 2002, TECO Energy announced its intention and implemented a plan to sell its interest in the TECO Coalbed Methane operations.
(2)	Includes the effect of other non-operating pretax items totaling $21.0 million recorded at Tampa Electric, TECO Investments and TECO Energy. The effect of these items was to reduce the ratio of earnings to fixed charges. Had these items been excluded from the calculation, the ratio of earnings to fixed charges would have been 3.48 for the year ended Dec. 31, 1999.
(3)	Includes the effect of other non-operating pretax items totaling $30.5 million associated with write-offs at TECO Coal and Tampa Electric, and $0.6 million pretax of merger-related costs. The effect of these items was to reduce the ratio of earnings to fixed charges. Had these items been excluded from the calculation, the ratio of earnings to fixed charges would have been 3.83 for the year ended Dec. 31, 1998.
(4)	Includes a $2.6-million pretax charge for all transactions associated with the mergers completed in June 1997. The effect of this charge was to reduce the ratio of earnings to fixed charges. Had this charge been excluded from the calculation, the ratio of earnings to fixed charges would have been 3.68 for the year ended Dec. 31, 1997.
(5)	Interest expense includes total interest expense excluding AFUDC, and an estimate of the interest component of rentals.