Exhibit 99.1
FOR IMMEDIATE RELEASE
TECO ENERGY REPORTS THIRD QUARTER RESULTS
Company updates 2010 outlook and provides 2011 business drivers
TAMPA, October 28, 2010— TECO Energy, Inc. (NYSE:TE) today reported third quarter net income of $51.0 million or $0.24 per share, compared to $64.8 million or $0.30 per share in the third quarter of 2009. Net income in the third quarter was reduced by the one-time $24.0 million reduction in base revenue ($14.7 million after-tax, or $0.07 per share) at Tampa Electric under its regulatory agreement approved by the Florida Public Service Commission (FPSC) in August. Year-to-date net income and earnings per share were $182.3 million or $0.85 per share in 2010, compared to $160.4 million or $0.75 per share in the same period in 2009.
Third-quarter 2010 non-GAAP results were $74.1 million, which exclude a $24.9 million tax charge on undistributed earnings at DECA II as a result of its sale in October 2010, and a $1.8 million benefit from the recovery of fees related to the previously sold McAdams Power Station. Third-quarter 2009 non-GAAP results, which excluded restructuring charges and the write-off of project development costs, were $85.6 million. These are discussed in the non-GAAP results section below and theResults Reconciliation table later in this release.
Year-to-date 2010 and 2009 non-GAAP results were $226.6 million and $176.1 million, respectively, which exclude $44.3 million and $15.7 million of net charges and gains, respectively, which are discussed in the non-GAAP results section below and theResults Reconciliation table later in this release.
TECO Energy President and Chief Executive Officer John Ramil said, “Our results this quarter reflect stronger than expected customer growth for the Florida utilities, driven by the improvements in the state and local economies that we experienced in the first half of the year.”
Ramil also said, “The sale of our interest in DECA II last week provides cash that we can use to retire TECO Energy debt and to invest in our utility operations. We look forward to the continued good operations and strong earnings and cash flow from our two power plants in Guatemala.”
Non-GAAP Results
The table below compares the TECO Energy GAAP net income to the non-GAAP results used in this release. Non-GAAP results exclude the charges and gains described following the table. See theNon-GAAP Presentation section andResults Reconciliation table later in this release for a reconciliation to GAAP results and a discussion regarding this presentation of non-GAAP results and management’s use of this information.
All amounts included in the non-GAAP discussion below are after tax, unless otherwise noted.
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Results Comparisons | |
| | | 3 months
ended Sep. 30 | | | 9 months
ended Sep. 30 | | | 12 months
ended Sep. 30 | |
(millions) | | 2010 | | | 2009 | | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
Net income attributable to TECO Energy | | $ | 51.0 | | | $ | 64.8 | | | $ | 182.3 | | | $ | 160.4 | | | $ | 253.9 | | | $ | 182.4 | |
Non-GAAP Results | | $ | 74.1 | | | $ | 85.6 | | | $ | 226.6 | | | $ | 176.1 | | | $ | 298.6 | | | $ | 218.4 | |
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Third quarter 2010 non-GAAP results exclude a $24.9 million tax expense on undistributed earnings at DECA II and a $1.8 million benefit from the recovery of fees related to the previously sold McAdams Power Station. Third quarter 2009 non-GAAP results excluded $15.4 million of restructuring charges, the write-off of $5.2 million of project development costs at Tampa Electric and a $0.2 million valuation adjustment on auction-rate securities. In addition to the third quarter charges and gains, year-to-date 2010 non-GAAP results also excluded $20.3 million of early debt retirement charges and the final $0.9 million of restructuring charges recorded in the first quarter of 2010. The $20.3 million charge represents premiums and costs associated with the early retirement of $300 million of TECO Energy and TECO Finance notes with maturities in 2011 and 2012. In addition to the third quarter charges, results in the 2009 year-to-date period excluded a $3.6 million loss on auction-rate securities held at TECO Energy, and an $8.7 million net gain on the sale of TECO Guatemala’s 16.5% interest in the Central American fiber optic telecommunications provider Navega. (See theResults Reconciliationtable.)
Segment Reporting
The table below includes TECO Energy segment information on a GAAP basis, which includes all charges and gains for the periods shown.
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Segment Information (millions) | | 3 months
ended Sep. 30 | | | 9 months
ended Sep. 30 | | | 12 months
ended Sep. 30 | |
| | | 2010 | | | 2009 | | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
Net Income (loss) | | | | | | | | | | | | | | | | | | | | | | | | |
Tampa Electric | | $ | 61.9 | | | $ | 54.3 | | | $ | 166.8 | | | $ | 121.1 | | | $ | 205.9 | | | $ | 150.0 | |
Peoples Gas System | | | 3.7 | | | | 3.4 | | | | 26.7 | | | | 19.2 | | | | 39.3 | | | | 28.5 | |
TECO Coal | | | 8.3 | | | | 11.6 | | | | 45.8 | | | | 29.7 | | | | 53.3 | | | | 32.4 | |
TECO Guatemala | | | (12.6 | ) | | | 8.1 | | | | 8.4 | | | | 29.2 | | | | 17.9 | | | | 28.9 | |
Parent & other | | | (10.3 | ) | | | (12.6 | ) | | | (65.4 | ) | | | (38.8 | ) | | | (80.5 | ) | | | (57.4 | ) |
Net income attributable to TECO Energy | | $ | 51.0 | | | $ | 64.8 | | | $ | 182.3 | | | $ | 160.4 | | | $ | 253.9 | | | $ | 182.4 | |
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Operating Company Results
All amounts included in the operating company and Parent & other results discussions below are after tax, unless otherwise noted.
Due to an accounting rule change related to variable interest entities, effective Jan. 1, 2010 the results from the San José and Alborada power stations at TECO Guatemala were consolidated in the financial statements of TECO Energy. Prior periods have not been restated to reflect this change, which did not affect net income.
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Tampa Electric
Tampa Electric reported net income for the third quarter of $61.9 million, compared with $54.3 million for the same period in 2009. There were no charges or gains in the third quarter of 2010. Third-quarter 2009 non-GAAP results were $70.6 million, which excluded $11.1 million of restructuring charges and the $5.2 million write-off of project development costs primarily related to the Polk Unit 6 IGCC project (see theResults Reconciliation table later in this release).
Net income for the 2010 quarter reflected the one-time $24.0 million reduction in base revenues ($14.7 million after tax) associated with the regulatory agreement approved by the FPSC in August that resolved all outstanding issues in the 2008 base rate case. Net income also reflected the 2010 component of rates approved by the FPSC in December 2009, a 0.8% higher average number of customers, higher earnings on nitrogen oxide (NOx) control projects, and higher operations and maintenance expenses. Net income included $0.2 million of Allowance for Funds Used During Construction (AFUDC) - equity, which represents allowed equity cost capitalized to construction costs, compared with $2.5 million in the 2009 period.
Total retail energy sales increased 3.6% in the third quarter of 2010, compared to the same period in 2009. Total degree days in Tampa Electric’s service area were 6% above normal and 4% higher than in the third quarter of 2009. Pretax base revenue increased between $6 and $8 million from hotter summer weather in the third quarter of 2010, compared to the same period last year. Pretax base revenues increased between $7 and $9 million in the third quarter of 2010, due to the new base rates approved by the FPSC for Tampa Electric effective in January 2010.
Sales to the weather-sensitive residential customer segment increased 5.7% due to the hotter-than-normal summer weather and customer growth. Sales to the commercial customer segment increased 2.6% in the third quarter, primarily due to hotter-than-normal summer weather. Sales to non-phosphate industrial customers increased 5.3% due to increased operations for several customers following low usage in 2009. Sales to industrial-phosphate customers decreased 3.3% in the third quarter of 2010, driven by increased self-generation by a single large phosphate producer.
Operations and maintenance expense, excluding charges and all FPSC-approved cost recovery clauses, increased slightly, driven primarily by the accrual of performance-based incentive compensation for all employees based on financial results.
Compared to the third quarter of 2009, depreciation and amortization expense increased $2.2 million, reflecting additions to facilities to serve customers including peaking combustion turbines, NOx control projects and rail unloading facilities.
Year-to-date net income was $166.8 million, compared with $121.1 million in the 2009 period. There were no charges or gains in the 2010 year-to-date period. Year-to-date 2009 non-GAAP results were $137.4 million, which excluded the $16.3 million of third-quarter charges described above (see theResults Reconciliation table later in this release).
Year-to-date 2010 results were driven primarily by higher base revenues from favorable weather, new base rates, 0.6% higher average number of customers, higher earnings on NOx control projects, and lower operations and maintenance expenses. Net income included $1.6 million of AFUDC - equity, compared with $8.3 million in the 2009 period for NOx control projects, coal rail unloading facilities and peaking combustion turbines. Sales to other utilities increased 15% from the 2009 period, reflecting 2010’s weather extremes.
Total degree days in Tampa Electric’s service area were 14% above normal and 10% above the prior year-to-date period. Pretax base revenue increased between $24 and $33 million
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from favorable weather in 2010 compared to the same period last year. Pretax base revenues increased between $50 and $60 million in the 2010 year-to-date period due to the new base rates approved by the FPSC for Tampa Electric effective in May 2009 and January 2010.
In the 2010 year-to-date period, total retail energy sales increased 4.2%, compared to the 2009 period, driven primarily by favorable weather and the 0.6% increase in the average number of customers. Favorable weather in the period contributed to an 8.6% increase in sales to the weather-sensitive residential customer class. Sales to industrial-other customers declined 3.2% primarily due to economic conditions. Operations and maintenance expense, excluding restructuring charges, project write-off and all FPSC-approved cost recovery clauses, decreased $2.1 million, due to lower spending on generating unit maintenance more than offsetting the accrual of performance-based incentive compensation for all employees.
Compared to the 2009 year-to-date period, depreciation and amortization expense increased $8.0 million, reflecting the additions to facilities to serve customers discussed above. In 2010, interest expense increased $3.2 million due to debt issued in 2009.
Peoples Gas
Peoples Gas reported net income of $3.7 million for the third quarter, compared to $3.4 million in the same period in 2009. There were no charges or gains in the third quarter of 2010. Non-GAAP results of $6.2 million in 2009 excluded $2.8 million of restructuring costs (see theResults Reconciliation table later in this release). Quarterly results reflect a 0.6% higher average number of customers and increased sales to commercial and industrial customers due to the return to service of several higher volume customers that were idle in the 2009 period. Non-fuel operations and maintenance expense increased, due to the accrual of performance-based incentive compensation for all employees based on financial results and a provision related to potential earnings above the top of the allowed return on equity (ROE) range, discussed below. Results also reflect increased depreciation expense due to routine plant additions.
For 2010, as a result primarily of the unprecedented cold winter weather, Peoples Gas expects to earn above the top of its allowed ROE range of 9.75% to 11.75%. As a result, in the third quarter of 2010, Peoples Gas recorded an additional provision related to these potential earnings. The disposition of any earnings above the top of the allowed range will be determined by the FPSC.
Peoples Gas reported net income of $26.7 million for the year-to-date period, compared to net income of $19.2 million and non-GAAP results of $22.0 million, which excluded the restructuring costs, in the same period in 2009. Results reflect a 0.5% higher average number of customers. Residential customer usage increased due to the cold first quarter winter weather in 2010. Pretax base revenues increased approximately $10 million due to the unprecedented cold winter weather and approximately $5 million due to the higher base rates which became effective in June 2009. Increased sales to commercial and industrial customers reflect the colder-than-normal winter weather, the return to service of several higher volume customers that were idle in the 2009 period and generally higher usage by those customers. Gas transported for power generation customers increased over the 2009 year-to-date period due to higher power demand in the first quarter. Non-fuel operations and maintenance expense increased, due to the same factors as in the third quarter.
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TECO Coal
TECO Coal achieved third quarter net income of $8.3 million on sales of 2.2 million tons, compared to $11.6 million on sales of 2.3 million tons in the same period in 2009. In the 2010 third quarter, results reflect an average net per-ton selling price, excluding transportation allowances, of $76 per ton, due to a sales mix that was more heavily weighted to utility steam coal as a result of transportation constraints. In the third quarter of 2010, the all-in total per-ton cost of production increased to almost $71 per ton from the timing of surface mine reclamation activities, generally higher mining costs due to increased inspection activities, and availability of contract miners. TECO Coal’s effective income tax rate in the third quarter of 2010 was 24%, which was the same as the 2009 period.
TECO Coal recorded year-to-date net income of $45.8 million on sales of 6.8 million tons in 2010, compared to $29.7 million on sales of 6.8 million tons in the 2009 period. Year-to-date net income includes a $5.3 million benefit from the settlement of state income tax issues recorded in prior years. The 2010 year-to-date sales mix was driven by the same factors as the third quarter. The 2010 year-to-date average net per-ton selling price was more than $76 per ton, and the all-in total per-ton cost of production was almost $69 per ton. TECO Coal’s effective income tax rate was a more normal 23%, excluding the effect of the state income tax settlements discussed above, compared to 18% in the 2009 year-to-date period.
TECO Guatemala
TECO Guatemala reported a third quarter loss of $12.6 million in 2010, compared to net income of $8.1 million in the 2009 period. TECO Guatemala’s third quarter 2010 non-GAAP results were $12.3 million, which exclude a $24.9 million tax charge related to undistributed earnings as a result of the sale of its ownership interest in DECA II, which included EEGSA and affiliated companies, on Oct. 21, 2010. There were no charges or gains in the third quarter of 2009. Year-to-date 2010 net income was $8.4 million, compared to $29.2 million in the 2009 period. Year-to-date 2010 non-GAAP results were $33.3 million, which excluded the third-quarter tax charge, compared to 2009 non-GAAP results of $20.5 million, which excluded an $8.7 million gain on the sale of the telecommunication company, Navega.
Third quarter results include a $3.6 million benefit from insurance recoveries related to the unplanned outages at the San José Power Station in 2009. Normal operations and capacity payments at San José increased net income $2.9 million in 2010. In the 2010 year-to-date period, higher capacity payments, contract sales and first quarter spot energy sales at the San José Power Station increased net income $11.9 million. Because the capacity payment for the San José Power Station is calculated on a rolling 12-month average, it returned to normal levels in the second quarter of 2010. Year-to-date results in 2010 for DECA II included an $0.8 million benefit related to an adjustment to previously estimated year-end equity balances, compared to a similar $2.5 million benefit in 2009.
Parent & Other
The cost for Parent & other in the third quarter of 2010 was $10.3 million, compared to a cost of $12.6 million in the same period in 2009, which included a $1.5 million gain on the sale of the final lease in a leveraged lease portfolio. Third-quarter 2010 non-GAAP results were a cost of $12.1 million, compared to 2009 non-GAAP cost of $10.9 million. Non-GAAP results in 2010 excluded a $1.8 million benefit from the recovery of fees related to the previously sold McAdams Power Station. Non-GAAP results in 2009 excluded $1.5 million of
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restructuring cost and a $0.2 million charge associated with the sale of auction-rate securities held at TECO Energy parent. The year-to-date Parent & other cost was $65.4 million in 2010, compared to $38.8 million in the 2009 period, which included a $2.6 million benefit from a sale of property by TECO Properties. The 2010 year-to-date non-GAAP cost was $46.0 million, which excluded the third-quarter benefit related to the McAdams Power station, the $20.3 million of debt retirement charges and $0.9 million of final restructuring charges. The 2009 year-to-date Parent & other non-GAAP cost was $33.6 million, excluding the $1.5 million restructuring charge and the $3.8 million valuation adjustment on student-loan securities held at TECO Energy. In 2010, the year-to-date cost for Parent & other also included negative valuation adjustments to foreign tax credits totaling $5.9 million based on estimated foreign source income and projected timing of the utilization of the net operating loss carry forwards, and a $1.1 million charge to adjust deferred tax balances related to the Medicare Part D subsidies as a result of the Patient Protection and Affordable Care Act enacted in the first quarter. (See theResults Reconciliationtable.)
Cash and Liquidity
The table below sets forth the Sep. 30, 2010 consolidated liquidity and cash balances, the cash balances at the operating companies and TECO Energy parent, and amounts available under the TECO Energy/Finance and Tampa Electric Company credit facilities.
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Balances as of Sep. 30, 2010 | |
| (millions) | | Consolidated | | | Tampa Electric
Company | | | Unregulated
Companies | | | Parent | |
Credit facilities | | $ | 675.0 | | | $ | 475.0 | | | $ | — | | | $ | 200.0 | |
Drawn amounts/LCs | | | 34.6 | | | | 27.9 | | | | — | | | | 6.7 | |
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Available credit facilities | | | 640.4 | | | | 447.1 | | | | — | | | | 193.3 | |
Cash and short-term investments | | | 166.3 | | | | 16.2 | | | | 61.8 | | | | 88.3 | |
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Total liquidity | | $ | 806.7 | | | $ | 463.3 | | | $ | 61.8 | | | $ | 281.6 | |
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2010 Earnings Outlook
At the time TECO Energy announced Tampa Electric’s regulatory stipulation and a one-time $24 million reduction in base revenue for 2010, in July it tightened the outlook for 2010 earnings to a range of $1.25 to $1.35 per share including the effects of the regulatory stipulation and excluding charges and gains.
As a result of margin compression on TECO Coal sales, and the loss of DECA II earnings for the final two months of the year, TECO Energy believes it is unlikely that results will exceed the middle of it guidance range.
The guidance was provided in the form of a range to allow for varying outcomes with respect to important variables, such as the strength of the economic recovery in 2010, weather and customer usage at the Florida utilities, and demand for production, achieved margins and the potential for deferral of contracted tons at TECO Coal. The July guidance range included TECO Coal’s sales forecast of 9.0 million tons at an average selling price of $77 per ton. The all-in total cost of production was expected to be within the previously provided range of $65 to $69 per ton
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but towards the high end, reflecting higher contract miner costs and the negative impact on productivity of increased safety inspections. In February, Tampa Electric and Peoples Gas forecasted no customer growth and weather-normalized energy sales below 2009 levels, primarily due to lower expected sales to commercial and non-phosphate industrial customers; however, year-to-date customer and weather normalized energy sales growth has been stronger than initially expected.
Tampa Electric entered into a stipulation with the intervenors from its 2008 base rate proceeding (the Office of Public Counsel, the State of Florida Office of the Attorney General, the Florida Industrial Powers User Group and the Florida Retail Federation). The stipulation, which was approved by the FPSC in August, resolves all issues in the docket and all issues in the intervenors appeal of the FPSC’s 2009 decision in the base rate proceeding pending before the Florida Supreme Court, thereby enabling the docket related to the base rate proceeding to be closed.
Under the terms of the stipulation, the $25.7 million step increase remains in effect for 2010. The stipulation included a one-time reduction of $24.0 million to customer’s bills, which Tampa Electric recognized in the third quarter of 2010 and will apply to customer bills in the fourth quarter. Effective Jan. 1, 2011, and for subsequent years, rates of $24.4 million (a $1.3 million reduction from the $25.7 million in effect for 2010) related to the step increase will be in effect.
With the effects of the regulatory stipulation included, Tampa Electric expects to earn near the midpoint of its allowed ROE range of 10.25% to 12.25%. Taking into account the disposition of earnings above the top of its allowed ROE range, Peoples Gas expects to earn at the top of its allowed ROE range of 9.75% to 11.75% for the year, primarily as a result of the abnormally cold winter weather. In the 2010 year-to-date period, Tampa Electric and Peoples Gas have recorded actual customer growth of 0.6% and 0.5%, respectively, and 4.2% higher retail electric sales and 13.4% higher therm sales, respectively, due to favorable weather and customer growth. The utilities expect to benefit from the year-to-date actual customer growth for the remainder of the year. However, this guidance assumed normal weather for the remainder of the year, but October weather has consistently been milder than normal.
TECO Coal expects to sell almost 9 million tons at an average price of more than $76 per ton. The all-in, total cost of production is expected to be at the top of the previously provided range of $65 to $69 per ton due to the timing of surface mine reclamation activities and generally higher mining costs due to increased inspection activities. The utility steam coal market remains weak for new contract activity, but customers are taking delivery of existing contract amounts in 2010. TECO Coal’s effective income tax rate is expected to be the normal 25% for 2010.
TECO Guatemala expects 2010 non-GAAP results to be above 2009’s level. The San José Power Station is operating normally and the capacity payments are back to normal levels. Due to the resumption of normal rainfall, the ability to make spot energy sales at good margins, which favorably impacted results earlier in the year, is expected to be limited in the fourth quarter. Prior to its sale, EEGSA experienced customer and energy sales growth and that partially mitigated the negative impacts of the lower Value Added Distribution. Prior to the sale, DECA II was expected to contribute approximately $15 million to 2010 net income at TECO Guatemala; the Oct. 21, 2010 sale of DECA II will reduce the expected net income contribution by approximately $2 million. TECO Guatemala extended the power sales contract for the Alborada Power Station for five years at rates approximately 55%, or $7.0 million after tax on an annual basis, below the current contract level effective Sep. 14, 2010. The 2010 impact of the lower capacity payments and the loss of earnings from DECA II are included in the earnings outlook.
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2011 Preliminary Outlook
The operating companies are in the process of developing detailed 2011 business plans and formal 2011 guidance will be provided at the time of TECO Energy’s fourth-quarter earnings release in early February. Major business drivers that are expected to drive 2011 results are:
For 2011, the Florida utilities expect to continue to earn within their allowed ROE ranges of 10.25% to 12.25% for Tampa Electric and 9.75% to 11.75% for Peoples Gas. Tampa Electric expects customer growth to continue in line with the trends experienced in 2010; however, due to the unusual weather experienced in 2010 lower energy sales are expected in 2011 with normal weather. In the first nine months of 2010, weather added between $24 and $33 million to pretax base revenue at Tampa Electric compared to 2009 when weather was more normal. Also in 2010, Tampa Electric reduced base revenue $24.0 million as a one-time item under its regulatory agreement approved by the FPSC.
TECO Coal has approximately 90% of its expected sales of between 8.5 and 9.0 million tons in 2011 contracted or agreed to, resulting in an average contracted or agreed to selling price across all products of $85 per ton. The product mix is expected to be about 35% specialty coal, which includes stoker, metallurgical and PCI coals, and the remainder utility steam coal. The cost of production is expected to increase to a range between $71 and $75 per ton due to expected higher contract miner costs, higher safety related costs and higher surface mining costs due to delays in the issuance of permits.
TECO Guatemala expects normal operations for the Alborada and San José power stations. The Alborada Power Station’s capacity payments will be at the new contract rate.
Non-GAAP Presentation
Management believes it is helpful to present a non-GAAP measure of performance that reflects the ongoing operations of TECO Energy’s businesses and which allows investors to better understand and evaluate the business as it is expected to operate in future periods.
Management and the Board of Directors use non-GAAP results as a benchmark for measuring the company’s performance, for making decisions that are dependent upon the profitability of the company’s various operating units, and for determining levels of incentive compensation.
The non-GAAP results reported by the company is not a measure of performance under accounting principles generally accepted in the United States and should not be considered an alternative to net income or other GAAP figures as an indicator of the company’s financial performance or liquidity. TECO Energy’s non-GAAP presentation of net income may not be comparable to similarly titled measures used by other companies.
TheResults Reconciliation table below presents non-GAAP financial results after elimination of the effects of certain identified charges and gains. This provides investors additional information to assess the company’s results and future earnings potential.
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Results Reconciliation (millions) | | 3 months ended
Sep. 30 | | | 9 months ended
Sep. 30 | | | 12 months ended
Sep. 30 | |
| | | 2010 | | | 2009 | | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
GAAP net income | | $ | 51.0 | | | $ | 64.8 | | | $ | 182.3 | | | $ | 160.4 | | | $ | 253.9 | | | $ | 182.4 | |
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Exclude recovery of fees related to McAdams Power Station sale | | | (1.8 | ) | | | — | | | | (1.8 | ) | | | — | | | | (1.8 | ) | | | — | |
Add taxes on undistributed earnings at DECA II | | | 24.9 | | | | — | | | | 24.9 | | | | — | | | | 24.9 | | | | — | |
Add parent debt extinguishment | | | — | | | | — | | | | 20.3 | | | | — | | | | 20.3 | | | | — | |
Add restructuring charges | | | — | | | | 15.4 | | | | 0.9 | | | | 15.4 | | | | 1.3 | | | | 15.4 | |
Add Tampa Electric project development costs | | | — | | | | 5.2 | | | | — | | | | 5.2 | | | | — | | | | 5.2 | |
Add valuation adjustment on auction rate securities | | | — | | | | 0.2 | | | | — | | | | 3.8 | | | | — | | | | 3.8 | |
Exclude gain on sale of Navega | | | — | | | | — | | | | — | | | | (8.7 | ) | | | — | | | | (8.7 | ) |
Exclude final adjustment on sale of TECO Transport recorded at parent | | | — | | | | — | | | | — | | | | — | | | | — | | | | (3.2 | ) |
Add taxes on repatriated cash and investments | | | — | | | | — | | | | — | | | | — | | | | — | | | | 21.6 | |
Add Tampa Electric waterborne transportation audit adjustment | | | — | | | | — | | | | — | | | | — | | | | — | | | | 1.9 | |
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Total charges and gains | | | 23.1 | | | | 20.8 | | | | 44.3 | | | | 15.7 | | | | 44.7 | | | | 36.0 | |
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Non-GAAP results | | $ | 74.1 | | | $ | 85.6 | | | $ | 226.6 | | | $ | 176.1 | | | $ | 298.6 | | | $ | 218.4 | |
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| (1) | A non-GAAP financial measure is a numerical measure that includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable GAAP measure. |
Webcast
As previously announced, TECO Energy will host a Webcast with the investment community to discuss its third quarter results, its outlook for the remainder of 2010 and preview business drivers for 2011 at 9:00 AM Eastern time, Thursday, October 28, 2010. The Webcast will be accessible through the link on TECO Energy’s Website:www.tecoenergy.com. The Webcast and accompanying slides will be available for replay for 30 days through the Web site, beginning approximately two hours after the conclusion of the live event.
TECO Energy, Inc. (NYSE: TE) is an energy-related holding company. Its principal subsidiary, Tampa Electric Company, is a regulated utility in Florida with both electric and gas divisions (Tampa Electric and Peoples Gas System). Other subsidiaries include TECO Coal, which owns and operates coal production facilities in Kentucky and Virginia, and TECO Guatemala, which is engaged in electric power generation in Guatemala.
Note: This press release contains forward-looking statements, which are subject to the inherent uncertainties in predicting future results and conditions. Actual results may differ materially from those forecasted. The forecasted results are based on the company’s current expectations and assumptions, and the company does not undertake to update that information or any other
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information contained in this press release, except as may be required by law. Factors that could impact actual results include: regulatory actions by federal, state or local authorities; unexpected capital needs or unanticipated reductions in cash flow that affect liquidity; the ability to access the capital and credit markets when required; the availability of adequate rail transportation capacity for the shipment of TECO Coal’s production; general economic conditions affecting energy sales at the utility companies; economic conditions, both national and international, affecting the Florida economy and demand for TECO Coal’s production; weather variations and changes in customer energy usage patterns affecting sales and operating costs at Tampa Electric and Peoples Gas and the effect of extreme weather conditions or hurricanes; operating conditions, commodity prices; operating cost and environmental or safety rule changes affecting the production levels and margins at TECO Coal; fuel cost recoveries and related cash at Tampa Electric and natural gas demand at Peoples Gas; the ability of TECO Energy’s subsidiaries to operate equipment without undue accidents, breakdowns or failures. Additional information is contained under “Risk Factors” in TECO Energy, Inc.’s Annual Report on Form 10-K for the period ended Dec. 31, 2009, and as updated in subsequent SEC filings.
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Summary Information as of Sep. 30, 2010 | |
| | | 3 months
ended | | | 9 months
ended | | | 12 months
ended | |
(millions except per share amounts) | | | | | | | | | | | | | | | | | | |
| | | 2010 | | | 2009 | | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
Revenues | | $ | 901.8 | | | $ | 896.3 | | | $ | 2,712.9 | | | $ | 2,545.5 | | | $ | 3,478.0 | | | $ | 3,315.8 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net income attributable to TECO Energy | | $ | 51.0 | | | $ | 64.8 | | | $ | 182.3 | | | $ | 160.4 | | | $ | 235.9 | | | $ | 182.4 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Earnings per share attributable to TECO Energy – basic | | $ | 0.24 | | | $ | 0.30 | | | $ | 0.85 | | | $ | 0.75 | | | $ | 1.10 | | | $ | 0.86 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Earnings per share attributable to TECO Energy – diluted | | $ | 0.24 | | | $ | 0.30 | | | $ | 0.85 | | | $ | 0.75 | | | $ | 1.10 | | | $ | 0.86 | |
Average common shares outstanding – basic | | | 212.8 | | | | 211.9 | | | | 212.5 | | | | 211.7 | | | | 212.4 | | | | 211.6 | |
Average common shares outstanding – diluted | | | 215.1 | | | | 213.2 | | | | 214.6 | | | | 212.8 | | | | 214.5 | | | | 212.6 | |
| | |
| Contact: | | News Media: Rick Morera - (813) 228-4945 |
| | Investor Relations: Mark Kane – (813) 228-1772 |
| | Internet: http://www.tecoenergy.com |
- More Page 10 -
SEPTEMBER 2010
Figures appearing in these statements are presented as general information and not in connection with any sale or offer to sell or solicitation of an offer to buy any securities, nor are they intended as a representation by the company of the value of its securities. All figures reported are subject to adjustments as the annual audit by independent accountants may determine to be necessary and to the explanatory notes affecting income and balance sheet accounts contained in the company’s Annual Report on Form 10-K. Reference should also be made to information contained in that and other reports filed by TECO Energy, Inc. and Tampa Electric Company with the Securities and Exchange Commission. The financial statements for the periods ended June 30, 2010 include the results of operations, financial position and cash flows for two power generation projects in Guatemala, previously reflected as unconsolidated affiliates, that were reconsolidated effective January 1, 2010 in accordance with new accounting guidance.
- More Page 11 -
TECO ENERGY, Inc.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(All significant intercompany transactions have been eliminated in the consolidated financial statements.)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | | | Twelve Months Ended | |
| | | September 30, | | | September 30, | | | September 30, | |
(millions except share data) | | 2010 | | | 2009 | | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | | | | |
Revenues | | | | | | | | | | | | | | | | | | | | | | | | |
Regulated electric and gas | | $ | 707.4 | | | $ | 719.3 | | | $ | 2,079.1 | | | $ | 2,036.0 | | | $ | 2,692.3 | | | $ | 2,661.9 | |
Unregulated | | | 194.4 | | | | 177.0 | | | | 633.8 | | | | 509.5 | | | | 785.7 | | | | 653.9 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total revenues | | | 901.8 | | | | 896.3 | | | | 2,712.9 | | | | 2,545.5 | | | | 3,478.0 | | | | 3,315.8 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Regulated operations | | | | | | | | | | | | | | | | | | | | | | | | |
Fuel | | | 224.5 | | | | 253.5 | | | | 573.9 | | | | 707.7 | | | | 776.2 | | | | 923.5 | |
Purchased power | | | 45.2 | | | | 46.3 | | | | 151.5 | | | | 144.6 | | | | 184.6 | | | | 187.2 | |
Cost of natural gas sold | | | 61.0 | | | | 47.5 | | | | 236.4 | | | | 186.7 | | | | 292.4 | | | | 275.7 | |
Other | | | 96.1 | | | | 87.1 | | | | 280.5 | | | | 245.1 | | | | 354.0 | | | | 306.7 | |
Operation other expense | | | | | | | | | | | | | | | | | | | | | | | | |
Mining related costs | | | 119.9 | | | | 123.2 | | | | 375.1 | | | | 352.6 | | | | 481.2 | | | | 460.3 | |
Guatemalan power generation | | | 15.6 | | | | 3.0 | | | | 48.5 | | | | 9.2 | | | | 51.7 | | | | 13.0 | |
Other | | | 1.9 | | | | 0.5 | | | | 5.0 | | | | 2.7 | | | | 7.1 | | | | 3.2 | |
Maintenance | | | 44.6 | | | | 46.3 | | | | 137.1 | | | | 144.9 | | | | 179.7 | | | | 185.7 | |
Depreciation and amortization | | | 78.8 | | | | 72.8 | | | | 233.7 | | | | 213.8 | | | | 307.8 | | | | 283.3 | |
Restructuring charges | | | 0.0 | | | | 25.0 | | | | 1.5 | | | | 25.0 | | | | 2.2 | | | | 25.0 | |
Recoveries from previously impaired assets | | | (2.9 | ) | | | 0.0 | | | | (2.9 | ) | | | 0.0 | | | | (2.9 | ) | | | 0.0 | |
Taxes, other than income | | | 57.4 | | | | 56.1 | | | | 174.1 | | | | 172.4 | | | | 226.1 | | | | 222.9 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses | | | 742.1 | | | | 761.3 | | | | 2,214.4 | | | | 2,204.7 | | | | 2,860.1 | | | | 2,886.5 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income from operations | | | 159.7 | | | | 135.0 | | | | 498.5 | | | | 340.8 | | | | 617.9 | | | | 429.3 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Other income (expense) | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for other funds used during construction | | | 0.3 | | | | 2.5 | | | | 1.6 | | | | 8.3 | | | | 2.5 | | | | 10.3 | |
Other income | | | 10.4 | | | | 1.2 | | | | 16.0 | | | | 21.3 | | | | 18.1 | | | | 25.6 | |
Loss on debt extinguishment | | | 0.0 | | | | 0.0 | | | | (33.0 | ) | | | 0.0 | | | | (33.0 | ) | | | 0.0 | |
Income from equity investments | | | 3.6 | | | | 11.3 | | | | 10.5 | | | | 33.0 | | | | 24.3 | | | | 48.4 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total other income | | | 14.3 | | | | 15.0 | | | | (4.9 | ) | | | 62.6 | | | | 11.9 | | | | 84.3 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Interest charges | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | 57.5 | | | | 58.2 | | | | 175.8 | | | | 173.2 | | | | 234.1 | | | | 231.8 | |
Allowance for borrowed funds used during construction | | | (0.1 | ) | | | (0.9 | ) | | | (0.9 | ) | | | (3.2 | ) | | | (2.2 | ) | | | (4.0 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest charges | | | 57.4 | | | | 57.3 | | | | 174.9 | | | | 170.0 | | | | 231.9 | | | | 227.8 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income before provision for income taxes | | | 116.6 | | | | 92.7 | | | | 318.7 | | | | 233.4 | | | | 397.9 | | | | 285.8 | |
Provision for income taxes | | | 65.5 | | | | 27.9 | | | | 135.9 | | | | 73.0 | | | | 161.5 | | | | 103.4 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net income | | | 51.1 | | | | 64.8 | | | | 182.8 | | | | 160.4 | | | | 236.4 | | | | 182.4 | |
Less: Net income attributable to noncontrolling interest | | | (0.1 | ) | | | 0.0 | | | | (0.5 | ) | | | 0.0 | | | | (0.5 | ) | | | 0.0 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net income attributable to TECO Energy | | $ | 51.0 | | | $ | 64.8 | | | $ | 182.3 | | | $ | 160.4 | | | $ | 235.9 | | | $ | 182.4 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Average common shares outstanding - basic (millions) | | | 212.8 | | | | 211.9 | | | | 212.5 | | | | 211.7 | | | | 212.4 | | | | 211.6 | |
Average common shares outstanding - diluted (millions) | | | 215.1 | | | | 213.2 | | | | 214.6 | | | | 212.8 | | | | 214.5 | | | | 212.6 | |
| | | | | | |
Earnings per average common share outstanding: | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings per share attributable to TECO Energy — basic | | | 0.24 | | | | 0.30 | | | | 0.85 | | | | 0.75 | | | | 1.10 | | | | 0.86 | |
Earnings per share attributable to TECO Energy — diluted | | | 0.24 | | | | 0.30 | | | | 0.85 | | | | 0.75 | | | | 1.10 | | | | 0.86 | |
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TECO ENERGY, Inc.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(All significant intercompany transactions have been eliminated in the consolidated financial statements.)
| | | | | | | | |
(millions) | | September 30,
2010 | | | December 31,
2009 | |
| | |
Assets | | | | | | | | |
Current assets | | | | | | | | |
Cash and cash equivalents | | $ | 151.6 | | | $ | 46.0 | |
Short-term investments | | | 14.7 | | | | 0.8 | |
Receivables | | | 371.5 | | | | 277.4 | |
Inventories at average cost | | | | | | | | |
Fuel | | | 156.8 | | | | 124.3 | |
Materials and supplies | | | 77.8 | | | | 65.7 | |
Current derivative assets | | | 0.8 | | | | 0.8 | |
Income tax receivables | | | 2.1 | | | | 1.7 | |
Prepayments and other current assets | | | 31.5 | | | | 25.7 | |
Current regulatory assets | | | 67.6 | | | | 109.2 | |
| | | | | | | | |
Total current assets | | | 874.4 | | | | 651.6 | |
| | | | | | | | |
Property, plant and equipment | | | | | | | | |
Utility plant in service | | | | | | | | |
Electric | | | 6,521.6 | | | | 6,079.5 | |
Gas | | | 1,041.0 | | | | 1,017.2 | |
Construction work in progress | | | 249.0 | | | | 304.5 | |
Other property | | | 395.4 | | | | 377.2 | |
| | | | | | | | |
Property plant and equipment at original cost | | | 8,207.0 | | | | 7,778.4 | |
Accumulated depreciation | | | (2,411.1 | ) | | | (2,234.3 | ) |
| | | | | | | | |
Total property, plant and equipment, net | | | 5,795.9 | | | | 5,544.1 | |
| | | | | | | | |
Other assets | | | | | | | | |
Deferred income taxes | | | 84.3 | | | | 222.7 | |
Long-term regulatory assets | | | 327.4 | | | | 335.6 | |
Investment in unconsolidated affiliates | | | 137.8 | | | | 279.3 | |
Goodwill | | | 59.4 | | | | 59.4 | |
Long-term derivative assets | | | 0.2 | | | | 0.2 | |
Deferred charges and other assets | | | 150.6 | | | | 126.6 | |
| | | | | | | | |
Total other assets | | | 759.7 | | | | 1,023.8 | |
| | | | | | | | |
Total assets | | $ | 7,430.0 | | | $ | 7,219.5 | |
| | | | | | | | |
| | |
Liabilities and capital | | | | | | | | |
Current liabilities | | | | | | | | |
Long-term debt due within one year | | | | | | | | |
Recourse | | $ | 67.1 | | | $ | 106.5 | |
Non-recourse | | | 10.1 | | | | 1.4 | |
Notes payable | | | 27.0 | | | | 55.0 | |
Accounts payable | | | 257.1 | | | | 251.4 | |
Other current liabilities | | | 17.4 | | | | 20.6 | |
Customer deposits | | | 154.9 | | | | 151.2 | |
Current derivative liabilities | | | 45.8 | | | | 34.0 | |
Interest accrued | | | 72.1 | | | | 45.3 | |
Taxes accrued | | | 61.7 | | | | 20.5 | |
Current regulatory liabilities | | | 108.7 | | | | 85.4 | |
| | | | | | | | |
Total current liabilities | | | 821.9 | | | | 771.3 | |
| | | | | | | | |
Other liabilities | | | | | | | | |
Investment tax credits | | | 10.5 | | | | 10.8 | |
Long-term regulatory liabilities | | | 614.5 | | | | 602.6 | |
Long-term derivative liabilities | | | 5.8 | | | | 3.6 | |
Deferred credits and other liabilities | | | 513.3 | | | | 544.2 | |
Long-term debt, less amount due within one year | | | | | | | | |
Recourse | | | 3,275.7 | | | | 3,195.4 | |
Non-recourse | | | 37.1 | | | | 6.2 | |
| | | | | | | | |
Total other liabilities | | | 4,456.9 | | | | 4,362.8 | |
| | | | | | | | |
Total Liabilities | | | 5,278.8 | | | | 5,134.1 | |
Capital | | | | | | | | |
Common equity | | | 214.7 | | | | 213.9 | |
Additional paid in capital | | | 1,537.9 | | | | 1,530.8 | |
Retained earnings | | | 417.4 | | | | 365.7 | |
Accumulated other comprehensive loss | | | (19.6 | ) | | | (25.0 | ) |
| | | | | | | | |
TECO Energy stockholders' equity | | | 2,150.4 | | | | 2,085.4 | |
Noncontrolling interest | | | 0.8 | | | | 0.0 | |
| | | | | | | | |
Total capital | | | 2,151.2 | | | | 2,085.4 | |
| | | | | | | | |
Total liabilities and capital | | $ | 7,430.0 | | | $ | 7,219.5 | |
| | | | | | | | |
| | |
Book Value Per Share | | $ | 10.02 | | | $ | 9.75 | |
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TECO ENERGY, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(All significant intercompany transactions have been eliminated in the consolidated financial statements.)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | | | Twelve Months Ended | |
| | | September 30, | | | September 30, | | | September 30, | |
(millions) | | 2010 | | | 2009 | | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | | | | |
Cash flows from operating activities | | | | | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 51.1 | | | $ | 64.8 | | | $ | 182.8 | | | $ | 160.4 | | | $ | 236.4 | | | $ | 182.4 | |
| | | | | | |
Adjustments to reconcile net income to net cash from operating activities: | | | | | | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization | | | 78.8 | | | | 72.8 | | | | 233.7 | | | | 213.8 | | | | 307.8 | | | | 283.3 | |
Deferred income taxes | | | 63.9 | | | | 27.5 | | | | 136.5 | | | | 73.0 | | | | 161.9 | | | | 98.8 | |
Investment tax credits, net | | | (0.1 | ) | | | (0.1 | ) | | | (0.3 | ) | | | (0.3 | ) | | | (0.4 | ) | | | (0.4 | ) |
Allowance for other funds used during construction | | | (0.3 | ) | | | (2.5 | ) | | | (1.6 | ) | | | (8.3 | ) | | | (2.5 | ) | | | (10.3 | ) |
Non-cash stock compensation | | | 2.0 | | | | 3.9 | | | | 5.4 | | | | 8.6 | | | | 7.1 | | | | 10.4 | |
Loss / (Gain) on sales of business / assets, pretax | | | (0.3 | ) | | | 3.1 | | | | (0.9 | ) | | | (15.5 | ) | | | (1.3 | ) | | | (15.7 | ) |
Noncash debt extinguishment, pretax | | | 0.0 | | | | 0.0 | | | | 0.9 | | | | 0.0 | | | | 0.9 | | | | 0.0 | |
Equity in earnings of unconsolidated affiliates, net of cash distributions on earnings | | | 8.0 | | | | (9.5 | ) | | | 6.8 | | | | (9.2 | ) | | | 11.6 | | | | (6.7 | ) |
Deferred recovery clause | | | 31.7 | | | | 28.1 | | | | 44.6 | | | | 111.4 | | | | 69.8 | | | | 112.7 | |
Receivables, less allowance for uncollectibles | | | (12.0 | ) | | | (26.9 | ) | | | (82.0 | ) | | | (50.7 | ) | | | (22.8 | ) | | | 3.9 | |
Inventories | | | 8.5 | | | | 9.8 | | | | (28.4 | ) | | | (37.6 | ) | | | (17.8 | ) | | | (37.3 | ) |
Prepayments and other current assets | | | (1.5 | ) | | | (2.3 | ) | | | (4.3 | ) | | | (1.6 | ) | | | (2.6 | ) | | | (1.2 | ) |
Taxes accrued | | | 11.4 | | | | 12.0 | | | | 38.6 | | | | 39.2 | | | | (0.5 | ) | | | 0.8 | |
Interest accrued | | | 19.8 | | | | 34.1 | | | | 23.7 | | | | 37.1 | | | | (13.3 | ) | | | 2.2 | |
Accounts payable | | | (2.6 | ) | | | (17.7 | ) | | | 36.8 | | | | (27.3 | ) | | | 25.5 | | | | (48.0 | ) |
Other | | | 7.0 | | | | 14.8 | | | | 0.7 | | | | 46.9 | | | | 17.9 | | | | 27.1 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 265.4 | | | | 211.9 | | | | 593.0 | | | | 539.9 | | | | 777.7 | | | | 602.0 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Cash flows from investing activities | | | | | | | | | | | | | | | | | | | | | | | | |
Capital expenditures | | | (99.8 | ) | | | (131.6 | ) | | | (374.9 | ) | | | (499.4 | ) | | | (515.3 | ) | | | (686.4 | ) |
Allowance for other funds used during construction | | | 0.3 | | | | 2.5 | | | | 1.6 | | | | 8.3 | | | | 2.5 | | | | 10.3 | |
Net proceeds from sale of business / assets | | | 0.5 | | | | 0.3 | | | | 1.4 | | | | 29.5 | | | | 3.6 | | | | 33.8 | |
Net cash increase from consolidation | | | 0.0 | | | | 0.0 | | | | 24.1 | | | | 0.0 | | | | 24.1 | | | | 0.0 | |
Restricted cash | | | 0.0 | | | | 0.3 | | | | 0.0 | | | | 0.5 | | | | 0.0 | | | | 0.5 | |
Contributions to unconsolidated affiliates | | | (0.4 | ) | | | (0.2 | ) | | | (1.7 | ) | | | (0.2 | ) | | | (1.7 | ) | | | (0.2 | ) |
Other investments | | | (14.7 | ) | | | 7.4 | | | | (13.9 | ) | | | 17.1 | | | | (14.7 | ) | | | 17.0 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | (114.1 | ) | | | (121.3 | ) | | | (363.4 | ) | | | (444.2 | ) | | | (501.5 | ) | | | (625.0 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Cash flows from financing activities | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends | | | (44.0 | ) | | | (42.8 | ) | | | (130.7 | ) | | | (128.1 | ) | | | (173.5 | ) | | | (170.6 | ) |
Proceeds from sale of common stock | | | 2.6 | | | | 1.1 | | | | 5.6 | | | | 3.5 | | | | 7.3 | | | | 4.4 | |
Proceeds from long-term debt | | | 0.0 | | | | 102.1 | | | | 543.5 | | | | 102.1 | | | | 543.5 | | | | 102.1 | |
Repayment of long-term debt / Purchase in lieu of redemption | | | (6.1 | ) | | | (5.5 | ) | | | (513.7 | ) | | | (6.9 | ) | | | (513.7 | ) | | | (6.9 | ) |
Dividend to noncontrolling interest | | | 0.0 | | | | 0.0 | | | | (0.7 | ) | | | 0.0 | | | | (0.7 | ) | | | 0.0 | |
Net increase (decrease) in short-term debt | | | (50.0 | ) | | | (128.0 | ) | | | (28.0 | ) | | | (33.0 | ) | | | (33.0 | ) | | | 47.0 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | (97.5 | ) | | | (73.1 | ) | | | (124.0 | ) | | | (62.4 | ) | | | (170.1 | ) | | | (24.0 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net increase (decrease) in cash and cash equivalents | | | 53.8 | | | | 17.5 | | | | 105.6 | | | | 33.3 | | | | 106.1 | | | | (47.0 | ) |
Cash and cash equivalents at beginning of period | | | 97.8 | | | | 28.0 | | | | 46.0 | | | | 12.2 | | | | 45.5 | | | | 92.5 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents at end of period | | $ | 151.6 | | | $ | 45.5 | | | $ | 151.6 | | | $ | 45.5 | | | $ | 151.6 | | | $ | 45.5 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
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TECO ENERGY, Inc.
SEGMENT INFORMATION (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
(millions) | | Tampa
Electric | | | Peoples
Gas | | | TECO
Coal | | | TECO
Guatemala | | | Other &
Eliminations | | | TECO
Energy | |
| | | | | | | | | |
Three months ended September 30, | | | | | | | | | | | | | | | | | | | | | | | | |
2010 | | Revenues - outsiders | | $ | 593.3 | | | $ | 114.1 | | | $ | 165.3 | | | $ | 29.0 | | | $ | 0.1 | | | $ | 901.8 | |
| | Sales to affiliates | | | 0.3 | | | | 2.5 | | | | — | | | | — | | | | (2.8 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Total revenues | | | 593.6 | | | | 116.6 | | | | 165.3 | | | | 29.0 | | | | (2.7 | ) | | | 901.8 | |
| | Equity Earnings in Unconsolidated Affiliates | | | — | | | | — | | | | — | | | | 4.1 | | | | (0.5 | ) | | | 3.6 | |
| | Depreciation | | | 54.4 | | | | 11.5 | | | | 11.0 | | | | 1.8 | | | | 0.1 | | | | 78.8 | |
| | Restructuring charges | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | Total interest charges(1) | | | 30.7 | | | | 4.6 | | | | 1.6 | | | | 4.0 | | | | 16.5 | | | | 57.4 | |
| | Allocated interest expense(1) | | | — | | | | — | | | | 1.5 | | | | 3.0 | | | | (4.5 | ) | | | — | |
| | Provision (Benefit) for income taxes | | | 36.8 | | | | 2.4 | | | | 2.2 | | | | 29.1 | (3) | | | (5.0 | ) | | | 65.5 | |
| | Net income (loss) attributable to TECO Energy | | $ | 61.9 | | | $ | 3.7 | | | $ | 8.3 | | | $ | (12.6 | )(3) | | $ | (10.3 | )(2) | | $ | 51.0 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
2009 | | Revenues - outsiders | | $ | 620.6 | | | $ | 98.7 | | | $ | 175.1 | | | $ | 1.9 | | | $ | — | | | $ | 896.3 | |
| | Sales to affiliates | | | 0.3 | | | | 2.3 | | | | — | | | | — | | | | (2.6 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Total revenues | | | 620.9 | | | | 101.0 | | | | 175.1 | | | | 1.9 | | | | (2.6 | ) | | | 896.3 | |
| | Equity Earnings in Unconsolidated Affiliates | | | — | | | | — | | | | — | | | | 11.3 | | | | — | | | | 11.3 | |
| | Depreciation | | | 50.8 | | | | 11.1 | | | | 10.6 | | | | 0.2 | | | | 0.1 | | | | 72.8 | |
| | Restructuring charges | | | 18.1 | | | | 4.5 | | | | — | | | | — | | | | 2.4 | | | | 25.0 | |
| | Total interest charges(1) | | | 29.8 | | | | 4.6 | | | | 1.8 | | | | 3.3 | | | | 17.8 | | | | 57.3 | |
| | Allocated interest expense(1) | | | — | | | | — | | | | 1.6 | | | | 3.2 | | | | (4.8 | ) | | | — | |
| | Provision (Benefit) for income taxes | | | 31.9 | | | | 2.2 | | | | 3.7 | | | | 1.1 | | | | (11.0 | ) | | | 27.9 | |
| | Net income (loss) attributable to TECO Energy | | $ | 54.3 | (9) | | $ | 3.4 | (10) | | $ | 11.6 | | | $ | 8.1 | | | $ | (12.6 | )(8) | | $ | 64.8 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Nine months ended September 30, | | | | | | | | | | | | | | | | | | | | | | | | |
2010 | | Revenues - outsiders | | $ | 1,670.9 | | | $ | 408.2 | | | $ | 537.9 | | | $ | 95.7 | | | | 0.2 | | | $ | 2,712.9 | |
| | Sales to affiliates | | | 1.0 | | | | 17.4 | | | | — | | | | — | | | | (18.4 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Total revenues | | | 1,671.9 | | | | 425.6 | | | | 537.9 | | | | 95.7 | | | | (18.2 | ) | | | 2,712.9 | |
| | Equity Earnings in Unconsolidated Affiliates | | | — | | | | — | | | | — | | | | 12.1 | | | | (1.6 | ) | | | 10.5 | |
| | Depreciation | | | 161.0 | | | | 34.3 | | | | 32.8 | | | | 5.4 | | | | 0.2 | | | | 233.7 | |
| | Restructuring charges | | | — | | | | — | | | | — | | | | — | | | | 1.5 | | | | 1.5 | |
| | Total interest charges(1) | | | 91.8 | | | | 13.8 | | | | 5.2 | | | | 13.0 | | | | 51.1 | | | | 174.9 | |
| | Allocated interest expense(1) | | | — | | | | — | | | | 5.0 | | | | 9.5 | | | | (14.5 | ) | | | — | |
| | Provision (Benefit) for income taxes | | | 98.4 | | | | 16.9 | | | | 9.1 | | | | 35.9 | (3) | | | (24.4 | ) | | | 135.9 | |
| | Net income (loss) attributable to TECO Energy | | $ | 166.8 | | | $ | 26.7 | | | $ | 45.8 | | | $ | 8.4 | (3) | | | (65.4 | )(4) | | | 182.3 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
2009 | | Revenues - outsiders | | $ | 1,691.1 | | | $ | 344.9 | | | $ | 503.4 | | | $ | 6.0 | | | $ | 0.1 | | | $ | 2,545.5 | |
| | Sales to affiliates | | | 1.0 | | | | 12.2 | | | | — | | | | — | | | | (13.2 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Total revenues | | | 1,692.1 | | | | 357.1 | | | | 503.4 | | | | 6.0 | | | | (13.1 | ) | | | 2,545.5 | |
| | Equity Earnings in Unconsolidated Affiliates | | | — | | | | — | | | | — | | | | 33.0 | | | | — | | | | 33.0 | |
| | Depreciation | | | 148.1 | | | | 32.9 | | | | 32.0 | | | | 0.6 | | | | 0.2 | | | | 213.8 | |
| | Restructuring charges | | | 18.1 | | | | 4.5 | | | | — | | | | — | | | | 2.4 | | | | 25.0 | |
| | Total interest charges(1) | | | 86.6 | | | | 14.1 | | | | 5.5 | | | | 9.6 | | | | 54.2 | | | | 170.0 | |
| | Allocated interest expense(1) | | | — | | | | — | | | | 4.8 | | | | 9.4 | | | | (14.2 | ) | | | — | |
| | Provision (Benefit) for income taxes | | | 69.1 | | | | 12.3 | | | | 6.7 | | | | 10.7 | | | | (25.8 | )(12) | | | 73.0 | |
| | Net income (loss) attributable to TECO Energy | | | 121.1 | (9) | | | 19.2 | (10) | | | 29.7 | | | | 29.2 | (11) | | | (38.8 | )(12) | | $ | 160.4 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Twelve months ended September 30, | | | | | | | | | | | | | | | | | | | | | | | | |
2010 | | Revenues - outsiders | | $ | 2,173.2 | | | $ | 519.1 | | | $ | 687.6 | | | $ | 97.9 | | | $ | 0.2 | | | $ | 3,478.0 | |
| | Sales to affiliates | | | 1.3 | | | | 20.2 | | | | — | | | | — | | | | (21.5 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Total revenues | | | 2,174.5 | | | | 539.3 | | | | 687.6 | | | | 97.9 | | | | (21.3 | ) | | | 3,478.0 | |
| | Equity Earnings in Unconsolidated Affiliates | | | — | | | | — | | | | — | | | | 26.5 | | | | (2.2 | ) | | | 24.3 | |
| | Depreciation | | | 213.4 | | | | 45.6 | | | | 43.0 | | | | 5.6 | | | | 0.2 | | | | 307.8 | |
| | Restructuring charges | | | 0.3 | | | | 0.2 | | | | — | | | | — | | | | 1.7 | | | | 2.2 | |
| | Total interest charges(1) | | | 121.3 | | | | 18.4 | | | | 7.0 | | | | 16.4 | | | | 68.8 | | | | 231.9 | |
| | Allocated interest expense(1) | | | — | | | | — | | | | 6.6 | | | | 12.8 | | | | (19.4 | ) | | | — | |
| | Provision (Benefit) for income taxes | | | 127.7 | | | | 17.9 | | | | 10.3 | | | | 36.0 | (3) | | | (30.4 | ) | | | 161.5 | |
| | Net income (loss) attributable to TECO Energy | | $ | 205.9 | (5) | | $ | 39.3 | (6) | | $ | 53.3 | | | $ | 17.9 | (3) | | | (80.5 | )(7) | | | 235.9 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
2009 | | Revenues - outsiders | | $ | 2,172.5 | | | $ | 489.3 | | | $ | 645.4 | | | $ | 8.3 | | | $ | 0.3 | | | $ | 3,315.8 | |
| | Sales to affiliates | | | 1.3 | | | | 12.3 | | | | — | | | | — | | | | (13.6 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Total revenues | | | 2,173.8 | | | | 501.6 | | | | 645.4 | | | | 8.3 | | | | (13.3 | ) | | | 3,315.8 | |
| | Equity Earnings in Unconsolidated Affiliates | | | — | | | | — | | | | — | | | | 48.0 | | | | 0.4 | | | | 48.4 | |
| | Depreciation | | | 196.9 | | | | 43.6 | | | | 41.8 | | | | 0.8 | | | | 0.2 | | | | 283.3 | |
| | Restructuring charges | | | 18.1 | | | | 4.5 | | | | — | | | | — | | | | 2.4 | | | | 25.0 | |
| | Total interest charges(1) | | | 115.3 | | | | 18.8 | | | | 7.3 | | | | 13.5 | | | | 72.9 | | | | 227.8 | |
| | Allocated interest expense(1) | | | — | | | | — | | | | 6.3 | | | | 13.2 | | | | (19.5 | ) | | | — | |
| | Provision (Benefit) for income taxes | | | 85.8 | | | | 18.1 | | | | 6.5 | | | | 19.4 | | | | (26.4 | )(12) | | | 103.4 | |
| | Net income (loss) attributable to TECO Energy | | $ | 150.0 | (9)(13) | | $ | 28.5 | (10) | | $ | 32.4 | | | $ | 28.9 | (11) | | $ | (57.4 | )(12)(14) | | $ | 182.4 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Segment net income is reported on a basis that includes internally allocated financing costs. Allocated interest is included in “Total interest charges”. |
| (2) | Results for the 3 months months ended September 30, 2010 include a $1.8 million after-tax recovery related to a merchant power plant sold in 2006. |
| (3) | Results for the 3, 9 and 12 months ended September 30, 2010 include a $24.9 million tax charge related to the change in the tax deferral status of an investment in a foreign entity. |
| (4) | Results for the 9 months ended September 30, 2010 include a a $1.8 million after-tax recovery related to a merchant power plant sold in 2006, $20.3 million after tax charge related to the debt extinguishment activities at TECO Energy and TECO Finance, and a $0.9 million charge related to the SERP pay-out that occurred as a result of the restructuring in 2009. |
| (5) | Results for the 12 months ended September 30, 2010 include $0.2 million after-tax restructuring costs. |
| (6) | Results for the 12 months ended September 30, 2010 include $0.1 million after-tax restructuring costs. |
| (7) | Results for the 12 months ended September 30, 2010 include a $1.8 million after-tax recovery related to a merchant power plant sold in 2006, $20.3 million after tax charge related to the debt extinguishment activities at TECO Energy and TECO Finance, and a $1.0 million charge related to the restructuring in 2009. |
| (8) | Results for the 3 months ended September 30, 2009 include a $0.2 million loss related to the sale of the auction rate security and $1.5 million after-tax restructuring costs. |
| (9) | Results for the 3, 9 and 12 months ended September 30, 2009 include a $5.2 million write-off related to project development costs and $11.1 million after-tax restructuring costs. |
| (10) | Results for the 3, 9 and 12 months ended September 30, 2009 include $2.8 million after-tax restructuring costs. |
| (11) | Results for the 9 and 12 months ended September 30, 2009 include a $8.7 million gain related to the sale of Navega in the first quarter of 2009. Additionally, the 12 months ended September 30, 2009 results include $9.6 million in taxes related to the repatriated cash and investments from Guatemala in the fourth quarter of 2008. |
| (12) | Results for the 9 and 12 months ended September 30, 2009 include a $3.8 million loss related to the sale of auction rate securities in the first quarter of 2009 and $1.5 million after-tax restructuring costs. Additionally, the 12 months ended September 30, 2009 includes a $12.0 million valuation allowance in consolidated income taxes related to the cash and investments repatriated from Guatemala in the fourth quarter of 2008. |
| (13) | Results for the 12 months ended September 30, 2009 include a $1.9 million after-tax charge related to a settlement in the fourth quarter of 2008 with the Florida Public Service Commission Staff of issues involving waterborne coal transportation services provided by a former affiliate company (TECO Transport). |
| (14) | Results for the 12 months ended September 30, 2009 include a $3.2 million tax benefit booked in the fourth quarter of 2008 related to the sale of TECO Transport. |
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TAMPA ELECTRIC COMPANY
ELECTRIC OPERATING STATISTICS (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Operating Revenues* | | | | | | Sales — Kilowatt-hours* | | | | |
Three Months Ended September 30, | | 2010 | | | 2009 | | | Percent
Change | | | 2010 | | | 2009 | | | Percent
Change | |
| | | | | | |
Residential | | $ | 339,184 | | | $ | 325,123 | | | | 4.3 | | | | 2,829,963 | | | | 2,677,315 | | | | 5.7 | |
Commercial | | | 183,365 | | | | 183,210 | | | | 0.1 | | | | 1,792,895 | | | | 1,747,816 | | | | 2.6 | |
Industrial — Phosphate | | | 19,030 | | | | 20,071 | | | | (5.2 | ) | | | 210,461 | | | | 217,686 | | | | (3.3 | ) |
Industrial — Other | | | 27,781 | | | | 26,821 | | | | 3.6 | | | | 285,902 | | | | 271,505 | | | | 5.3 | |
Other sales of electricity | | | 50,677 | | | | 52,246 | | | | (3.0 | ) | | | 482,780 | | | | 492,839 | | | | (2.0 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | | 620,037 | | | | 607,471 | | | | 2.1 | | | | 5,602,001 | | | | 5,407,161 | | | | 3.6 | |
| | | | | | |
Deferred and other revenues | | | (28,747 | ) | | | (7,797 | ) | | | 268.7 | | | | — | | | | — | | | | — | |
Provision for Revenue Stipulation | | | (24,000 | ) | | | — | | | | — | | | | — | | | | — | | | | — | |
Sales for resale | | | 13,116 | | | | 8,341 | | | | 57.2 | | | | 173,156 | | | | 81,111 | | | | 113.5 | |
Other operating revenue | | | 13,192 | | | | 12,900 | | | | 2.3 | | | | — | | | | — | | | | — | |
SO2 Allowance Sales | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
NOx Allowance Sales | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 593,598 | | | $ | 620,915 | | | | (4.4 | ) | | | 5,775,157 | | | | 5,488,272 | | | | 5.2 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Average customers | | | 671,014 | | | | 665,597 | | | | 0.8 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Retail Net Energy For Load | | | | | | | | | | | | | | | 5,820,446 | | | | 5,722,363 | | | | 1.7 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total Degree Days | | | | | | | | | | | | | | | 1,744 | | | | 1,673 | | | | 4.2 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | |
| | | Operating Revenues* | | | | | | Sales — Kilowatt-hours* | | | | |
Nine Months Ended September 30, | | 2010 | | | 2009 | | | Percent
Change | | | 2010 | | | 2009 | | | Percent
Change | |
| | | | | | |
Residential | | $ | 862,060 | | | $ | 833,787 | | | | 3.4 | | | | 7,193,727 | | | | 6,622,089 | | | | 8.6 | |
Commercial | | | 491,732 | | | | 522,749 | | | | (5.9 | ) | | | 4,727,362 | | | | 4,711,266 | | | | 0.3 | |
Industrial — Phosphate | | | 64,061 | | | | 60,896 | | | | 5.2 | | | | 725,371 | | | | 684,834 | | | | 5.9 | |
Industrial — Other | | | 78,599 | | | | 85,445 | | | | (8.0 | ) | | | 804,071 | | | | 830,725 | | | | (3.2 | ) |
Other sales of electricity | | | 143,873 | | | | 152,709 | | | | (5.8 | ) | | | 1,352,302 | | | | 1,357,679 | | | | (0.4 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | | 1,640,325 | | | | 1,655,586 | | | | (0.9 | ) | | | 14,802,833 | | | | 14,206,593 | | | | 4.2 | |
| | | | | | |
Deferred and other revenues | | | (15,471 | ) | | | (32,919 | ) | | | (53.0 | ) | | | — | | | | — | | | | — | |
Provision for Revenue Stipulation | | | (24,000 | ) | | | — | | | | — | | | | — | | | | — | | | | — | |
Sales for resale | | | 33,002 | | | | 33,541 | | | | (1.6 | ) | | | 400,228 | | | | 347,764 | | | | 15.1 | |
Other operating revenue | | | 37,781 | | | | 35,803 | | | | 5.5 | | | | — | | | | — | | | | — | |
SO2 Allowance Sales | | | 48 | | | | 93 | | | | (48.4 | ) | | | — | | | | — | | | | — | |
NOx Allowance Sales | | | 206 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 1,671,891 | | | $ | 1,692,104 | | | | (1.2 | ) | | | 15,203,061 | | | | 14,554,357 | | | | 4.5 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Average customers | | | 670,638 | | | | 666,427 | | | | 0.6 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Retail Net Energy For Load | | | | | | | | | | | | | | | 15,769,953 | | | | 15,185,734 | | | | 3.8 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total Degree Days | | | | | | | | | | | | | | | 3,862 | | | | 3,511 | | | | 10.0 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | |
| | | Operating Revenues* | | | | | | Sales — Kilowatt-hours* | | | | |
Twelve Months Ended September 30, | | 2010 | | | 2009 | | | Percent
Change | | | 2010 | | | 2009 | | | Percent
Change | |
| | | | | | |
Residential | | $ | 1,110,732 | | | $ | 1,061,957 | | | | 4.6 | | | | 9,238,109 | | | | 8,598,224 | | | | 7.4 | |
Commercial | | | 658,068 | | | | 676,086 | | | | (2.7 | ) | | | 6,290,399 | | | | 6,236,385 | | | | 0.9 | |
Industrial — Phosphate | | | 84,342 | | | | 79,548 | | | | 6.0 | | | | 946,817 | | | | 960,844 | | | | (1.5 | ) |
Industrial — Other | | | 104,133 | | | | 110,859 | | | | (6.1 | ) | | | 1,061,819 | | | | 1,109,395 | | | | (4.3 | ) |
Other sales of electricity | | | 195,429 | | | | 199,624 | | | | (2.1 | ) | | | 1,833,885 | | | | 1,820,168 | | | | 0.8 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | | 2,152,704 | | | | 2,128,074 | | | | 1.2 | | | | 19,371,029 | | | | 18,725,016 | | | | 3.4 | |
| | | | | | |
Deferred and other revenues | | | (46,760 | ) | | | (56,707 | ) | | | (17.5 | ) | | | — | | | | — | | | | — | |
Provision for Revenue Stipulation | | | (24,000 | ) | | | — | | | | — | | | | — | | | | — | | | | — | |
Sales for resale | | | 42,219 | | | | 49,710 | | | | (15.1 | ) | | | 492,801 | | | | 570,541 | | | | (13.6 | ) |
Other operating revenue | | | 50,131 | | | | 47,493 | | | | 5.6 | | | | — | | | | — | | | | — | |
SO2 Allowance Sales | | | 48 | | | | 5,293 | | | | (99.1 | ) | | | — | | | | — | | | | — | |
NOx Allowance Sales | | | 206 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 2,174,548 | | | $ | 2,173,863 | | | | 0.0 | | | | 19,863,830 | | | | 19,295,557 | | | | 2.9 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Average customers | | | 669,907 | | | | 666,407 | | | | 0.5 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Retail Net Energy For Load | | | | | | | | | | | | | | | 20,336,575 | | | | 19,721,865 | | | | 3.1 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total Degree Days | | | | | | | | | | | | | | | 4,675 | | | | 4,173 | | | | 12.0 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
- More Page 16 -
PEOPLES GAS SYSTEM
GAS OPERATING STATISTICS (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Operating Revenues* | | | | | | Therms* | | | | |
| | | | | | | | | Percent | | | | | | | | | Percent | |
Three Months Ended September 30, | | 2010 | | | 2009 | | | Change | | | 2010 | | | 2009 | | | Change | |
By Customer Segment: | | | | | | | | | | | | | | | | | | | | | | | | |
Residential | | $ | 23,963 | | | $ | 24,973 | | | | (4.0 | ) | | | 9,947 | | | | 9,947 | | | | — | |
Commercial | | | 27,046 | | | | 29,072 | | | | (7.0 | ) | | | 85,505 | | | | 83,262 | | | | 2.7 | |
Industrial | | | 2,169 | | | | 1,723 | | | | 25.9 | | | | 46,492 | | | | 41,548 | | | | 11.9 | |
Off System Sales | | | 49,186 | | | | 31,905 | | | | 54.2 | | | | 94,112 | | | | 82,763 | | | | 13.7 | |
Power generation | | | 2,988 | | | | 2,397 | | | | 24.7 | | | | 179,993 | | | | 158,994 | | | | 13.2 | |
Other revenues | | | 8,893 | | | | 8,739 | | | | 1.8 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 114,245 | | | $ | 98,809 | | | | 15.6 | | | | 416,049 | | | | 376,514 | | | | 10.5 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
By Sales Type: | | | | | | | | | | | | | | | | | | | | | | | | |
System supply | | $ | 83,371 | | | $ | 69,693 | | | | 19.6 | | | | 114,997 | | | | 104,049 | | | | 10.5 | |
Transportation | | | 21,981 | | | | 20,377 | | | | 7.9 | | | | 301,052 | | | | 272,465 | | | | 10.5 | |
Other revenues | | | 8,893 | | | | 8,739 | | | | 1.8 | | | | — �� | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 114,245 | | | $ | 98,809 | | | | 15.6 | | | | 416,049 | | | | 376,514 | | | | 10.5 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Average customers | | | 335,181 | | | | 333,034 | | | | 0.6 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | |
| | | Operating Revenues* | | | | | | Therms* | | | | |
| | | | | | | | | Percent | | | | | | | | | Percent | |
Nine Months Ended September 30, | | 2010 | | | 2009 | | | Change | | | 2010 | | | 2009 | | | Change | |
By Customer Segment: | | | | | | | | | | | | | | | | | | | | | | | | |
Residential | | $ | 124,619 | | | $ | 111,440 | | | | 11.8 | | | | 69,698 | | | | 56,740 | | | | 22.8 | |
Commercial | | | 111,677 | | | | 109,561 | | | | 1.9 | | | | 307,003 | | | | 284,924 | | | | 7.7 | |
Industrial | | | 6,979 | | | | 5,707 | | | | 22.3 | | | | 149,650 | | | | 133,837 | | | | 11.8 | |
Off System Sales | | | 136,528 | | | | 84,615 | | | | 61.4 | | | | 249,261 | | | | 195,948 | | | | 27.2 | |
Power generation | | | 7,518 | | | | 7,752 | | | | (3.0 | ) | | | 452,768 | | | | 412,026 | | | | 9.9 | |
Other revenues | | | 31,323 | | | | 31,701 | | | | (1.2 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 418,644 | | | $ | 350,776 | | | | 19.3 | | | | 1,228,380 | | | | 1,083,475 | | | | 13.4 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
By Sales Type: | | | | | | | | | | | | | | | | | | | | | | | | |
System supply | | $ | 313,344 | | | $ | 252,937 | | | | 23.9 | | | | 359,196 | | | | 295,232 | | | | 21.7 | |
Transportation | | | 73,977 | | | | 66,138 | | | | 11.9 | | | | 869,184 | | | | 788,243 | | | | 10.3 | |
Other revenues | | | 31,323 | | | | 31,701 | | | | (1.2 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 418,644 | | | $ | 350,776 | | | | 19.3 | | | | 1,228,380 | | | | 1,083,475 | | | | 13.4 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Average customers | | | 336,244 | | | | 334,720 | | | | 0.5 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | |
| | | Operating Revenues* | | | | | | Therms* | | | | |
| | | | | | | | | Percent | | | | | | | | | Percent | |
Twelve Months Ended September 30, | | 2010 | | | 2009 | | | Change | | | 2010 | | | 2009 | | | Change | |
By Customer Segment: | | | | | | | | | | | | | | | | | | | | | | | | |
Residential | | $ | 156,546 | | | $ | 154,361 | | | | 1.4 | | | | 86,437 | | | | 77,788 | | | | 11.1 | |
Commercial | | | 144,311 | | | | 148,581 | | | | (2.9 | ) | | | 403,741 | | | | 380,951 | | | | 6.0 | |
Industrial | | | 8,961 | | | | 7,605 | | | | 17.8 | | | | 195,624 | | | | 178,984 | | | | 9.3 | |
Off System Sales | | | 169,988 | | | | 130,306 | | | | 30.5 | | | | 322,252 | | | | 260,063 | | | | 23.9 | |
Power generation | | | 9,814 | | | | 10,391 | | | | (5.6 | ) | | | 579,095 | | | | 493,507 | | | | 17.3 | |
Other revenues | | | 40,234 | | | | 41,954 | | | | (4.1 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 529,854 | | | $ | 493,198 | | | | 7.4 | | | | 1,587,149 | | | | 1,391,293 | | | | 14.1 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
By Sales Type: | | | | | | | | | | | | | | | | | | | | | | | | |
System supply | | $ | 392,790 | | | $ | 363,294 | | | | 8.1 | | | | 461,956 | | | | 395,531 | | | | 16.8 | |
Transportation | | | 96,830 | | | | 87,950 | | | | 10.1 | | | | 1,125,193 | | | | 995,762 | | | | 13.0 | |
Other revenues | | | 40,234 | | | | 41,954 | | | | (4.1 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 529,854 | | | $ | 493,198 | | | | 7.4 | | | | 1,587,149 | | | | 1,391,293 | | | | 14.1 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Average customers | | | 335,593 | | | | 334,557 | | | | 0.3 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
* in thousands
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