Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 08, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Registrant Name | TAMPA ELECTRIC COMPANY | |
Entity Interactive Data Current | Yes | |
Entity File Number | 1-5007 | |
Entity Address, Address Line One | TECO Plaza | |
Entity Address, Address Line Two | 702 N. Franklin Street | |
Entity Address, City or Town | Tampa | |
Entity Address, State or Province | FL | |
Entity Tax Identification Number | 59-0475140 | |
Entity Incorporation, State or Country Code | FL | |
Entity Address, Postal Zip Code | 33602 | |
City Area Code | 813 | |
Local Phone Number | 228-1111 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Central Index Key | 0000096271 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 10 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Property, plant and equipment | ||
Utility plant, at original costs | $ 12,992 | $ 15,474 |
Accumulated depreciation | (3,278) | (3,845) |
Utility plant, net | 9,714 | 11,629 |
Other property | 16 | 15 |
Total property, plant and equipment, net | 9,730 | 11,644 |
Current assets | ||
Cash and cash equivalents | 5 | 14 |
Receivables, less allowance for credit losses of $2 and $4 at June 30, 2023 and December 31, 2022, respectively | 310 | 295 |
Due from affiliates | 893 | 22 |
Inventories, at average cost | ||
Regulatory assets | 310 | 361 |
Prepayments and other current assets | 28 | 35 |
Total current assets | 1,754 | 909 |
Other assets | ||
Regulatory assets | 955 | 1,191 |
Other | 43 | 59 |
Total other assets | 998 | 1,250 |
Total assets | 12,482 | 13,803 |
Capitalization | ||
Common stock | 4,405 | 5,075 |
Accumulated other comprehensive loss | (1) | (1) |
Retained earnings | 266 | 346 |
Total capital | 4,670 | 5,420 |
Long-term debt | 3,735 | 3,734 |
Total capitalization | 8,405 | 9,154 |
Current liabilities | ||
Notes payable | 1,224 | 1,019 |
Accounts payable | 266 | 472 |
Due to affiliates | 209 | 226 |
Customer deposits | 123 | 145 |
Regulatory liabilities | 86 | 85 |
Accrued interest | 30 | 30 |
Accrued taxes | 55 | 15 |
Other | 39 | 45 |
Total current liabilities | 2,032 | 2,037 |
Long-term liabilities | ||
Deferred income taxes | 876 | 1,045 |
Regulatory liabilities | 744 | 1,055 |
Investment tax credits | 240 | 243 |
Deferred credits and other liabilities | 185 | 269 |
Total long-term liabilities | 2,045 | 2,612 |
Commitments and Contingencies (see Note 8) | ||
Total liabilities and capitalization | 12,482 | 13,803 |
Fuel [Member] | ||
Inventories, at average cost | ||
Utility inventories | 43 | 23 |
Materials and Supplies [Member] | ||
Inventories, at average cost | ||
Utility inventories | 165 | 159 |
Electric [Member] | ||
Property, plant and equipment | ||
Utility plant, at original costs | 12,992 | 12,536 |
Gas [Member] | ||
Property, plant and equipment | ||
Utility plant, at original costs | $ 0 | $ 2,938 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 2 | $ 4 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Income and Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenues | ||||
Electric | $ 677 | $ 662 | $ 1,229 | $ 1,171 |
Gas | 0 | 159 | 0 | 341 |
Total revenues | 677 | 821 | 1,229 | 1,512 |
Expenses | ||||
Fuel | 139 | 190 | 276 | 318 |
Purchased power | 24 | 34 | 34 | 41 |
Cost of natural gas sold | 0 | 65 | 0 | 137 |
Operations and maintenance | 157 | 149 | 275 | 296 |
Depreciation and amortization | 105 | 107 | 209 | 212 |
Taxes, other than income | 58 | 66 | 110 | 127 |
Total expenses | 483 | 611 | 904 | 1,131 |
Income from operations | 194 | 210 | 325 | 381 |
Other income | ||||
Allowance for equity funds used during construction | 4 | 9 | 7 | 17 |
Interest income from affiliates | 10 | 0 | 18 | 0 |
Other income, net | 9 | 3 | 19 | 6 |
Total other income | 23 | 12 | 44 | 23 |
Interest charges | ||||
Interest expense | 60 | 40 | 116 | 78 |
Interest expense to affiliates | 2 | 0 | 5 | 0 |
Allowance for borrowed funds used during construction | (1) | (2) | (2) | (5) |
Total interest charges | 61 | 38 | 119 | 73 |
Income before provision for income taxes | 156 | 184 | 250 | 331 |
Provision for income taxes | 24 | 39 | 39 | 68 |
Net income | 132 | 145 | 211 | 263 |
Comprehensive income | $ 132 | $ 145 | $ 211 | $ 263 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities | ||
Net income | $ 211 | $ 263 |
Adjustments to reconcile net income to cash from operating activities: | ||
Depreciation and amortization | 209 | 212 |
Deferred income taxes and investment tax credits | (3) | 64 |
Allowance for equity funds used during construction | (7) | (17) |
Deferred recovery clauses | 160 | (145) |
Regulatory assets and liabilities | 57 | 12 |
Pension and post-retirement asset and liabilities | (12) | (7) |
Other | 5 | 0 |
Increase (Decrease) in Operating Capital [Abstract] | ||
Receivables, less allowance for credit losses | (65) | (87) |
Inventories | (30) | (19) |
Taxes accrued | 37 | 18 |
Accounts payable | (119) | (7) |
Other | 21 | 7 |
Cash flows from operating activities | 464 | 294 |
Cash flows used in investing activities | ||
Capital expenditures | (571) | (607) |
Net proceeds from sale of assets | 0 | 3 |
Cash flows used in investing activities | (571) | (604) |
Cash flows from financing activities | ||
Equity contributions from Parent | 200 | 280 |
Net increase in short-term debt (maturities of 90 days or less) | 205 | 225 |
Advances to affiliate | (132) | 0 |
Dividends to Parent | (170) | (202) |
Other | (1) | 0 |
Cash flows from financing activities | 102 | 303 |
Net decrease in cash and cash equivalents | (5) | (7) |
Cash and cash equivalents at beginning of period (refer to Note 1) | 10 | 18 |
Cash and cash equivalents at end of period | 5 | 11 |
Supplemental disclosure of non-cash activities | ||
Change in accrued capital expenditures | (14) | (22) |
Reclassification of short-term debt from current to long-term | 0 | 470 |
Change in notes receivable from PGS | $ (736) | $ 0 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Capitalization (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Beginning balance | $ 4,517 | $ 5,000 | $ 5,420 | $ 4,792 |
Net income | 132 | 145 | 211 | 263 |
Separation of PGS equity from TEC | (992) | |||
Equity contributions from Parent | 100 | 105 | 200 | 280 |
Dividends to Parent | (79) | (117) | 170 | (202) |
Other | 1 | |||
Ending balance | 4,670 | 5,133 | 4,670 | 5,133 |
Common Stock [Member] | ||||
Beginning balance | $ 4,305 | $ 4,645 | $ 5,075 | $ 4,470 |
Beginning balance | 10 | 10 | 10 | 10 |
Separation of PGS equity from TEC | $ (871) | |||
Equity contributions from Parent | $ 100 | $ 105 | 200 | $ 280 |
Other | 1 | |||
Ending balance | $ 4,405 | $ 4,750 | $ 4,405 | $ 4,750 |
Ending balance | 10 | 10 | 10 | 10 |
Retained Earnings [Member] | ||||
Beginning balance | $ 213 | $ 356 | $ 346 | $ 323 |
Net income | 132 | 145 | 211 | 263 |
Separation of PGS equity from TEC | (121) | |||
Dividends to Parent | (79) | (117) | 170 | (202) |
Ending balance | 266 | 384 | 266 | 384 |
Accumulated Other Comprehensive Loss [Member] | ||||
Beginning balance | (1) | (1) | (1) | (1) |
Ending balance | $ (1) | $ (1) | $ (1) | $ (1) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies See TEC’s Annual Report on Form 10-K for the year ended December 31, 2022 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 prior to January 1, 2023, the natural gas division, referred to as PGS. See "Separation of PGS from TEC" below for further information. 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, 2023 and December 31, 2022, and the results of operations and cash flows for the periods ended June 30, 2023 and 2022. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the results that can be expected for the entire fiscal year ending December 31, 2023. 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. Separation of PGS from TEC PGS became an operating division of TEC in 1997 when TECO Energy purchased PGS and merged that corporation into TEC. Since then, PGS has operated as a stand-alone regulated utility, including having its own tariffs and its own books and records. On January 1, 2023, TEC transferred the assets and liabilities of its PGS division into a separate corporation called Peoples Gas System, Inc. pursuant to a Contribution Agreement. This new corporation is a wholly owned subsidiary of a newly formed gas operations holding company, TECO Gas Operations, Inc., a wholly owned subsidiary of TECO Energy. On January 1, 2023, the assets, liabilities, and equity that had been recorded in the books of PGS were transferred from TEC to the newly formed company at book value in a tax-free transaction. PGS issued 100 shares of common stock to TEC related to the transfer, which were subsequently distributed to TECO Energy, Inc. and then contributed to TECO Gas Operations, Inc. As a result, from and after January 1, 2023, the PGS division is no longer operated by TEC. This is a transaction between entities under common control; therefore, TEC did no t recognize a gain or loss on the transaction. TEC is not required to recast its prior period financial statements and disclosures to exclude PGS prior to January 1, 2023. The TEC consolidated condensed statement of cash flows for the six months ended June 30, 2023 does not include the non-cash impact of separating the PGS assets, liabilities and equity from TEC on January 1, 2023 and excludes PGS’s opening cash balance. The impact of the separation of PGS from TEC on the consolidated condensed statements of capital for the six months ended June 30, 2023 was $ 992 million, which represents the net assets of PGS transferred as of January 1, 2023. TEC recorded $ 121 million to retained earnings, which was the retained earnings of PGS as of January 1, 2023, and the remainder of $ 871 million was recorded to additional paid in capital, which is presented with common stock. Included in the liabilities transferred was PGS’s allocation of outstanding unsecured notes and outstanding short-term borrowings issued by TEC. The obligations related to these combined borrowings are reflected in a loan agreement between TEC and PGS. The initial obligation of PGS under the loan agreement at January 1, 2023 was a term loan in the principal amount of $ 670 million and a revolving loan in the principal amount of $ 66 million. The maturity date for both is December 29, 2023. PGS intends to access the third-party lending market during 2023 but cannot predict when during the year that it will do so. To assist its affiliate and to facilitate an orderly transfer of its gas assets, Tampa Electric will continue to be responsible for providing capital as needed to PGS under a loan agreement. See Note 12 for further information regarding TEC's related party transactions with PGS. For the stand alone PGS balance sheet as of December 31, 2022, see Note 1 of TEC’s Annual Report on Form 10-K for the year ended December 31, 2022. Receivables and Allowance for Credit Losses Receivables on the Consolidated Condensed Balance Sheets include receivables from contracts with customers, which consist of services to residential, commercial, industrial and other customers, totaling $ 304 million and $ 295 million as of June 30, 2023 and December 31, 2022, respectively. An allowance for credit losses is established based on TEC’s collection experience and reasonable and supportable forecasts that affect the collectibility of the reported amount. Circumstances that could affect TEC’s estimates of credit losses include, but are not limited to, customer credit issues, generating fuel prices, customer deposits and general economic conditions. Accounts are reserved in the allowance or written off once they are deemed to be uncollectible. As of June 30, 2023 and December 31, 2022, unbilled revenues of $ 89 million and $ 82 million, respectively, are included in the “Receivables” line item on the Consolidated Condensed Balance Sheets. Accounting for Franchise Fees and Gross Receipts TEC is allowed to recover certain costs from customers on a dollar-for-dollar basis through rates approved by the FPSC. The amounts included in customers’ bills for franchise fees and gross receipt taxes are included as revenues on the Consolidated Condensed Statements of Income. Franchise fees and gross receipt taxes payable by TEC are included as an expense on the Consolidated Condensed Statements of Income in “Taxes, other than income”. These amounts totaled $ 35 million and $ 37 million for the three months ended June 30, 2023 and 2022, respectively, and totaled $ 63 million and $ 69 million for the six months ended June 30, 2023 and 2022, respectively. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | 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, were assessed and determined to be either not applicable to TEC or have an insignificant impact on the consolidated condensed financial statements. |
Regulatory
Regulatory | 6 Months Ended |
Jun. 30, 2023 | |
Regulated Operations [Abstract] | |
Regulatory | 3. Regulatory Tampa Electric Base Rates On August 6, 2021, Tampa Electric 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 Tampa Electric and the intervenors in Tampa Electric’s rate case filed with the FPSC in April 2021. The Settlement Agreement agreed 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 included 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 continued to be 54 % from investor sources of capital. The Settlement Agreement included 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 no t change from January 1, 2022 through December 31, 2024 , unless Tampa Electric’s earned ROE were to fall below the bottom of the range during that time. The Settlement Agreement contained a provision whereby Tampa Electric agreed 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 created 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 that agreement. The Settlement Agreement set new depreciation and dismantlement rates effective January 1, 2022 and contained the provisions that Tampa Electric will not have to file another depreciation study during the term of the agreement but will file a new depreciation study no more than one year, nor less than 90 days, before the filing of its next general base rate proceeding. Additionally, Tampa Electric agreed to a financial hedging moratorium for natural gas ending on December 31, 2024. On October 21, 2021, the FPSC approved the Settlement Agreement and the final order, reflecting such approval, was issued on November 10, 2021. Tampa Electric ROE Adjustment Pursuant to the Settlement Agreement, on July 1, 2022, Tampa Electric requested to adjust its base rates to collect an additional $ 10 million annually (prorated in the first year) effective September 1, 2022 and increase its mid-point ROE and upper and lower allowed ranges. On August 16, 2022, the FPSC approved the change. The new mid-point ROE is 10.20 %, and the range is 9.25 % to 11.25 % effective July 1, 2022. Tampa Electric Mid-Course Adjustment to Fuel Recovery In January 2022, Tampa Electric requested a mid-course adjustment to its fuel and capacity charges to recover an additional $ 169 million beginning April 1, 2022 through December 2022 due to an increase in fuel commodity and capacity costs. On March 1, 2022, the FPSC voted to approve the mid-course adjustment, and the order reflecting such approval was issued on March 18, 2022. On January 23, 2023, Tampa Electric requested an adjustment to its fuel charges to recover the $ 518 million final 2022 fuel under-recovery over a period of 21 months. The request also included an adjustment to 2023 projected fuel costs to reflect the reduction in natural gas prices since September 2022 for a projected reduction of $ 170 million for the balance of 2023. The changes were approved by the FPSC on March 7, 2023, effective April 1, 2023. Tampa Electric Storm Restoration Cost Recovery 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 12-month period or longer as determined by the FPSC, as well as replenish its reserve to $ 56 million, the level of the reserve as of October 31, 2013. This provision was also included in Tampa Electric’s subsequent 2017 amended and restated settlement agreement and in Tampa Electric’s 2021 rate case settlement agreement. In 2021, 2020 and 2019, Tampa Electric incurred total storm restoration preparation costs for multiple hurricanes of approximately $ 10 million, which was charged to the storm reserve regulatory liability. In September 2022, Tampa Electric was impacted by Hurricane Ian. The majority of Hurricane Ian restoration costs were charged against Tampa Electric’s FPSC approved storm reserve, resulting in minimal impact on earnings and capital expenditures. Total restoration costs were $ 129 million, with $ 121 million charged to the storm reserve. Restoration costs charged to the storm reserve exceed the reserve balance and this amount will be deferred and collected from customers in subsequent periods. In November 2022, Tampa Electric incurred costs of approximately $ 2 million related to Hurricane Nicole. In January 2023, Tampa Electric petitioned the FPSC for recovery of storm costs. Recovery will include costs associated with Hurricanes Ian and Nicole that exceeded the reserve, $ 10 million of storm restoration costs charged to the reserve since 2018, and the replenishment of the balance in the reserve to the $ 56 million level that existed as of October 31, 2013 for a total of approximately $ 131 million. The storm cost recovery surcharge was approved by the FPSC on March 7, 2023, and TEC began applying the surcharge on April 2023 bills. The storm recovery is subject to review of the underlying costs for prudency by the FPSC. The review and issuance of an order by the FPSC is likely to occur by the end of 2023. 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 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. A settlement agreement was approved on August 10, 2020 and Tampa Electric’s cost recovery began in January 2021. The current approved plan addresses the years 2023, 2024 and 2025 and was approved by the FPSC on October 4, 2022. Regulatory Assets and Liabilities Details of the regulatory assets and liabilities are presented in the following table: Regulatory Assets and Liabilities (millions) June 30, 2023 December 31, 2022 Regulatory assets: Regulatory tax asset (1) $ 111 $ 124 Cost-recovery clauses (2) 348 525 Capital cost recovery for early retired assets (3) 494 497 Environmental remediation (4) 0 20 Postretirement benefits (5) 239 272 Asset retirement obligation (6) 10 13 Storm reserve (7) 44 76 Other 19 25 Total regulatory assets 1,265 1,552 Less: Current portion 310 361 Long-term regulatory assets $ 955 $ 1,191 Regulatory liabilities: Regulatory tax liability (8) $ 495 $ 601 Cost-recovery clauses - deferred balances (2) 19 30 Accumulated reserve - cost of removal (9) 298 498 Other 18 11 Total regulatory liabilities 830 1,140 Less: Current portion 86 85 Long-term regulatory liabilities $ 744 $ 1,055 (1) The regulatory tax asset is primarily associated with the depreciation and recovery of AFUDC-equity. This asset does not earn a return but rather is included in the capital structure, which is used in the calculation of the weighted cost of capital used to determine revenue requirements. It will be recovered over the expected life of the related assets. (2) These assets and liabilities are related to FPSC clauses and riders, primarily related to the fuel clause and the increase in natural gas prices experienced in 2022. They are recovered or refunded through cost-recovery mechanisms approved by the FPSC on a dollar-for-dollar basis in a subsequent period. (3) This asset is related to the remaining net book value of Big Bend Units 1 through 3 and meter assets that were retired. The balance earns a rate of return as permitted by the FPSC and will be recovered as a separate line item on customer bills for a period of 15 years . See “Tampa Electric Base Rates” above for further information. (4) This asset is related to PGS 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. (5) 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. (6) 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. (7) See "Tampa Electric Storm Restoration Cost Recovery" above for information regarding this reserve. The regulatory asset is included in rate base and earns interest as permitted by the FPSC. (8) The regulatory tax liability is primarily related to the revaluation of TEC’s deferred income tax balances recorded on December 31, 2017 at the lower corporate income tax rate due to U.S. tax reform. The liability related to the revaluation of the deferred income tax balances is amortized and returned to customers through rate reductions or other revenue offsets based on IRS regulations and the settlement agreement for tax reform benefits approved by the FPSC. (9) 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. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 4. Income Taxes Inflation Reduction Act On August 16, 2022, the Inflation Reduction Act was signed into legislation and includes numerous tax incentives for clean energy, such as the extension and modification of existing investment and production tax credits for projects placed in service through 2024, and introduces new technology-neutral clean energy related credits beginning in 2025. TEC has determined that electing production tax credits for its solar plants placed in service in 2022 will be more beneficial for customers compared to ITCs and has recorded a $ 15 million regulatory liability in recognition of its obligation to pass the tax benefits to customers as of June 30, 2023. 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 accounted for as either a capital contribution or a distribution. TEC’s effective tax rates for the six months ended June 30, 2023 and 2022 were 15.6 % and 20.5 %, respectively. The June 30, 2023 and 2022 effective tax rates are an estimate of the annual effective income tax rate. TEC’s effective tax rate for the six months ended June 30, 2023 differed from the statutory rate principally due to production tax credits and amortization of the regulatory tax liability resulting from tax reform. TEC’s effective tax rate for the six months ended June 30, 2022 differed from the statutory rate principally due to the amortization of the regulatory tax liability resulting from tax reform. The effective tax rate for the six months ended June 30, 2023 is lower compared to the same period in 2022 primarily due to production tax credits and the PGS separation from TEC on January 1, 2023. See Note 1 for further information regarding the PGS separation from TEC and Note 3 for further information regarding the regulatory tax liability. Unrecognized Tax Benefits As of June 30, 2023 and December 31, 2022, the amount of unrecognized tax benefits was $ 9 million, all of which was recorded as a reduction of deferred income tax assets for tax credit carryforwards. The unrecognized tax benefits, if recognized, would reduce TEC’s effective tax rate. |
Employee Postretirement Benefit
Employee Postretirement Benefits | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Employee Postretirement Benefits | 5. Employee Postretirement Benefits TEC is a participant in the comprehensive retirement plans of TECO Energy. The following table presents detail related to TECO Energy’s periodic benefit cost for pension and other postretirement benefits. Amounts disclosed for TECO Energy’s pension benefits include the amounts related to its qualified pension plan and non-qualified, non-contributory SERP and Restoration Plan. TECO Energy Benefit Cost (millions) Pension Benefits Other Postretirement Benefits Three months ended June 30, 2023 2022 2023 2022 Components of net periodic benefit cost Service cost $ 4 $ 5 $ 0 $ 1 Interest cost 9 6 2 2 Expected return on assets ( 13 ) ( 13 ) 0 0 Amortization of: Actuarial loss (gain) 1 5 ( 1 ) ( 1 ) Settlement cost (1) 2 1 0 0 Net periodic benefit cost $ 3 $ 4 $ 1 $ 2 Six months ended June 30, Components of net periodic benefit cost Service cost $ 8 $ 9 $ 0 $ 1 Interest cost 18 12 4 3 Expected return on assets ( 27 ) ( 26 ) 0 0 Amortization of: Actuarial loss (gain) 2 9 ( 1 ) 0 Settlement cost (1) 2 1 0 0 Net periodic benefit cost $ 3 $ 5 $ 3 $ 4 (1) Represents TEC's SERP and Restoration Plan settlement charges as a result of the prior retirements of certain executives. TEC’s portion of the net periodic benefit cost for the three months ended June 30, 2023 and 2022, respectively, was $ 1 million and $ 3 million for pension benefits, and $ 2 million and $ 3 million for other postretirement benefits. TEC’s portion of the net periodic benefit cost for the six months ended June 30, 2023 and 2022, respectively, was $ 1 million and $ 4 million for pension benefits, and $ 3 million and $ 5 million for other postretirement benefits. TEC’s portion of net periodic benefit costs for pension and other benefits is included as an expense on the Consolidated Condensed Statements of Income in “Operations & maintenance”. TECO Energy assumed a long-term EROA of 7.05 % and a discount rate of 5.55 % for pension benefits under its qualified pension plan for 2023. For TECO Energy’s other postretirement benefits, TECO Energy used a discount rate of 5.53 % for 2023. TECO Energy made contributions of $ 8 million and $ 9 million to its qualified pension plan in the six months ended June 30, 2023 and 2022, respectively. TEC’s portion of these contributions was $ 5 million and $ 8 million, respectively. TECO Energy expects to make contributions to the pension plan of $ 8 million for the remainder of 2023. TEC estimates its portion of the remaining 2023 contribution to be $ 5 million. Included in the benefit cost discussed above, for the three and six months ended June 30, 2023, $ 1 million and $ 1 million, respectively, of unamortized prior service benefits and costs and actuarial gains and losses were reclassified by TEC from regulatory assets to the Consolidated Condensed Statement of Income, compared with $ 5 million and $ 9 million for the three and six months ended June 30, 2022, respectively. |
Short-Term Debt
Short-Term Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Short-Term Debt | 6. Short-Term Debt Details of TEC’s short-term borrowings are presented in the following table: June 30, 2023 December 31, 2022 Borrowings Borrowings Letters Borrowings Borrowings Letters Credit Outstanding - Outstanding - of Credit Credit Outstanding - Outstanding - of Credit (millions) Facilities Credit Facilities (1) Commercial Paper (1) Outstanding Facilities Credit Facilities (1) Commercial Paper (1) Outstanding 5-year facility (2) $ 800 $ 0 $ 794 $ 1 $ 800 $ 0 $ 619 $ 1 1-year term facility (3) 400 400 0 0 400 400 0 0 1-year term facility (4) 200 30 0 0 0 0 0 0 1-year term facility (5) 200 0 0 0 0 0 0 0 Total $ 1,600 $ 430 $ 794 $ 1 $ 1,200 $ 400 $ 619 $ 1 (1) Borrowings outstanding are reported as notes payable. (2) This 5-year facility matures on December 17, 2026 . TEC also has an active commercial paper program for up to $ 800 million, of which the full amount outstanding is backed by TEC’s credit facility. The amount of commercial paper issued results in an equal amount of its credit facility being considered drawn and unavailable. (3) This 1-year term facility was set to mature on December 16, 2022 . On December 13, 2022, TEC extended the maturity date to December 13, 2023. (4) On March 1, 2023, TEC entered into a 1-year term facility that matures on February 28, 2024 . (5) On April 3, 2023, TEC entered into a 1-year term facility that matures on April 1, 2024 . At June 30, 2023, these credit facilities required a commitment fee of 12.5 basis points. The weighted-average interest rate on borrowings outstanding under the credit facilities and commercial paper at June 30, 2023 and December 31, 2022 was 5.72 % and 5.00 %, respectively. TEC Term Loan On March 1, 2023, TEC entered into a 364-day, $ 200 million senior unsecured revolving loan credit facility with a maturity date of February 28, 2024 . The credit agreement contains customary representations and warranties, events of default, and financial and other covenants; and provides for interest to accrue at variable rates based on either the term secured overnight financing rate (SOFR), The Bank of Nova Scotia’s prime rate, the federal funds rate or the one-month secured overnight financing rate, plus a margin. TEC Term Loan On April 3, 2023, TEC entered into an additional 364-day, $ 200 million senior unsecured revolving loan credit facility with a group of banks. The credit facility has a maturity date of April 1, 2024 . The credit agreement contains customary representations and warranties, events of default, and financial and other covenants; and provides for interest to accrue at variable rates based on either the term SOFR, Wells Fargo’s prime rate, the federal funds rate or the one-month secured overnight financing rate, plus a margin. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 7. Long-Term Debt Fair Value of Long-Term Debt At June 30, 2023, TEC’s long-term debt had a carrying amount of $ 3,735 million and an estimated fair market value of $ 3,240 million. At December 31, 2022, long-term debt had a carrying amount of $ 3,734 million and an estimated fair market value of $ 3,234 million. The fair value of the debt securities is determined using Level 2 measurements (see Note 11 for information regarding the fair value hierarchy). |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies Legal Contingencies From time to time, TEC and its subsidiaries are involved in various legal, tax and regulatory proceedings before various courts, regulatory commissions and governmental agencies in the ordinary course of business. Where appropriate, accruals are made in accordance with accounting standards for contingencies to provide for matters that are probable of resulting in an estimable loss. Superfund and Former Manufactured Gas Plant Sites As of December 31, 2022, TEC, through its Tampa Electric division and former PGS division, was a PRP for certain superfund sites and, through its former PGS division, for certain former MGP sites. As a result of the separation of the PGS division, PGS is now the responsible party for those sites (in addition to third party PRPs for certain sites). See Note 1 for further information regarding the PGS separation from TEC. Long-Term Commitments TEC has commitments for various purchases as disclosed below, including payment obligations under contractual agreements for fuel, fuel transportation and power purchases that are recovered from customers under regulatory clauses. The following is a schedule of future payments under PPAs, minimum lease payments with non-cancelable lease terms in excess of one year, and other net purchase obligations/commitments at June 30, 2023: Fuel Long-term Demand Purchased Capital and Service Operating Side (millions) Power Transportation Projects Gas Supply (1) Agreements Leases Management Total 2023 $ 11 $ 67 $ 426 $ 160 $ 18 $ 1 $ 2 $ 685 2024 0 132 131 36 34 3 5 341 2025 0 128 4 4 22 2 4 164 2026 0 125 4 4 23 1 1 158 2027 0 125 1 4 22 1 1 154 Thereafter 0 930 0 1 50 46 0 1,027 Total future minimum payments $ 11 $ 1,507 $ 566 $ 209 $ 169 $ 54 $ 13 $ 2,529 (1) As of June 30, 2023, $ 13 million of fuel and gas supply contractual obligations were held between Tampa Electric and Emera Energy Services, a related party. 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, 2023, TEC was in compliance with all required covenants. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | 9. Segment Information Due to the separation of PGS from TEC, TEC operates under a single operating and reportable segment effective January 1, 2023 because the operations of TEC only include the operations of the Electric division. See "Separation of PGS from TEC" in Note 1 for further information regarding the separation of PGS from TEC. (millions) Tampa Eliminations/ Tampa Electric Three months ended June 30, Electric PGS Reclassifications Company 2023 Revenues - external $ 677 $ 677 Intracompany sales 0 0 Total revenues 677 677 Total interest charges 61 61 Net income $ 132 $ 132 2022 Revenues - external $ 662 $ 159 $ 0 $ 821 Intracompany sales 1 1 ( 2 ) 0 Total revenues 663 160 ( 2 ) 821 Total interest charges 32 6 0 38 Net income $ 126 $ 19 $ 0 $ 145 Six months ended June 30, 2023 Revenues - external $ 1,229 $ 1,229 Intracompany sales 0 0 Total revenues 1,229 1,229 Total interest charges 119 119 Net income $ 211 $ 211 2022 Revenues - external $ 1,171 $ 341 $ 0 $ 1,512 Intracompany sales 2 2 ( 4 ) 0 Total revenues 1,173 343 ( 4 ) 1,512 Total interest charges 62 11 0 73 Net income $ 214 $ 49 $ 0 $ 263 Total assets at June 30, 2023 $ 13,121 $ ( 639 ) (1) $ 12,482 Total assets at December 31, 2022 $ 12,064 $ 2,471 (2) $ ( 732 ) (1) $ 13,803 (1) Amounts primarily relate to consolidated deferred tax reclassifications. Deferred tax assets are reclassified and netted with deferred tax liabilities upon consolidation. (2) For the summary of the assets and liabilities of PGS as of December 31, 2022, see Note 1 of TEC’s Annual Report on Form 10-K for the year ended December 31, 2022. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2023 | |
Revenues [Abstract] | |
Revenue | 10. Revenue The following disaggregates TEC’s revenue by major source: (millions) Tampa Tampa Electric Three months ended June 30, 2023 Electric PGS Eliminations Company Electric revenue Residential $ 430 $ 430 Commercial 201 201 Industrial 50 50 Regulatory deferrals ( 97 ) ( 97 ) Unbilled revenue 21 21 Other (1) 72 72 Total electric revenue 677 677 Total revenue $ 677 $ 677 Three months ended June 30, 2022 Electric revenue Residential $ 348 $ 0 $ 0 $ 348 Commercial 170 0 0 170 Industrial 47 0 0 47 Regulatory deferrals ( 4 ) 0 0 ( 4 ) Unbilled revenue 20 0 0 20 Other (1) 82 ` 0 ( 1 ) 81 Total electric revenue 663 0 ( 1 ) 662 Gas revenue Residential 0 50 0 50 Commercial 0 49 0 49 Industrial (2) 0 8 0 8 Other (3) 0 53 ( 1 ) 52 Total gas revenue 0 160 ( 1 ) 159 Total revenue $ 663 $ 160 $ ( 2 ) $ 821 (millions) Tampa Tampa Electric Six months ended June 30, 2023 Electric PGS Eliminations Company Electric revenue Residential $ 755 $ 755 Commercial 371 371 Industrial 96 96 Regulatory deferrals ( 160 ) ( 160 ) Unbilled revenue 24 24 Other (1) 143 143 Total electric revenue 1,229 1,229 Total revenue $ 1,229 $ 1,229 Six months ended June 30, 2022 Electric revenue Residential $ 618 $ 0 $ 0 $ 618 Commercial 307 0 0 307 Industrial 84 0 0 84 Regulatory deferrals ( 6 ) 0 0 ( 6 ) Unbilled revenue 25 0 0 25 Other (1) 145 0 ( 2 ) 143 Total electric revenue 1,173 0 ( 2 ) 1,171 Gas revenue Residential 0 125 0 125 Commercial 0 105 0 105 Industrial (2) 0 15 0 15 Other (3) 0 98 ( 2 ) 96 Total gas revenue 0 343 ( 2 ) 341 Total revenue $ 1,173 $ 343 $ ( 4 ) $ 1,512 (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, 2023 and December 31, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $ 62 million and $ 140 million, respectively. The decrease is due to TEC's January 1, 2023 separation from its former PGS division. See Note 1 for further information regarding the separation of PGS from TEC. As allowed under ASC 606, these amounts exclude contracts with an original expected length of one year or less and variable amounts for which TEC recognizes revenue at the amount to which it has the right to invoice for services performed. TEC expects to recognize revenue for the remaining performance obligations through 2043 . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 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, 2023 and December 31, 2022, 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. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 12. Related Party Transactions A summary of activities between TEC and its affiliates follows: Net transactions with affiliates Three months ended June 30, Six months ended June 30, (millions) 2023 2022 2023 2022 Natural gas sales to/(from) affiliates $ ( 14 ) $ ( 52 ) $ ( 36 ) $ ( 114 ) Services to/(from) affiliates 8 ( 1 ) 15 ( 3 ) Interest income from affiliates 10 0 18 0 Interest expense to affiliates 2 0 5 0 Dividends to TECO Energy 79 117 170 202 Equity contributions from TECO Energy 100 105 200 280 Amounts due from or to affiliates (millions) June 30, 2023 December 31, 2022 Note receivable from PGS (1) $ 861 $ 0 Interest receivable (1) 3 0 Accounts receivable related to asset management agreements to Emera Energy Services Inc. (2) 4 7 Accounts receivable excluding asset management agreements (2) 6 5 Taxes receivable (3) 19 10 Accounts payable (2) 13 31 Note payable to TECO Energy (4) 195 195 Interest payable to TECO Energy (4) 1 0 (1) On January 1, 2023, TEC entered into a loan agreement with PGS for PGS’s allocation of outstanding unsecured notes issued by TEC and outstanding short-term borrowings associated with the separation of PGS from TEC on that date. As of June 30, 2023, the note receivable from PGS was a term loan in the principal amount of $ 670 million and a revolving loan in the principal amount of $ 198 million , offset by discounts and issuance costs of $ 7 million. The maturity date for both loans is December 29, 2023 . The note receivable for the term loan bears interest at primarily the stated rate and the revolving loan rate is consistent with the market rate of TEC's commercial paper. See "Separation of PGS from TEC" in Note 1 for further information. (2) Accounts receivable and accounts payable were incurred in the ordinary course of business and do not bear interest. (3) Taxes receivable were due from EUSHI. See Note 4 for additional information. The note payable with TECO Energy bears interest at a rate approximating the market rate of TEC's commercial paper. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | 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 prior to January 1, 2023, the natural gas division, referred to as PGS. See "Separation of PGS from TEC" below for further information. 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, 2023 and December 31, 2022, and the results of operations and cash flows for the periods ended June 30, 2023 and 2022. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the results that can be expected for the entire fiscal year ending December 31, 2023. 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. |
Separation of PGS from TEC | Separation of PGS from TEC PGS became an operating division of TEC in 1997 when TECO Energy purchased PGS and merged that corporation into TEC. Since then, PGS has operated as a stand-alone regulated utility, including having its own tariffs and its own books and records. On January 1, 2023, TEC transferred the assets and liabilities of its PGS division into a separate corporation called Peoples Gas System, Inc. pursuant to a Contribution Agreement. This new corporation is a wholly owned subsidiary of a newly formed gas operations holding company, TECO Gas Operations, Inc., a wholly owned subsidiary of TECO Energy. On January 1, 2023, the assets, liabilities, and equity that had been recorded in the books of PGS were transferred from TEC to the newly formed company at book value in a tax-free transaction. PGS issued 100 shares of common stock to TEC related to the transfer, which were subsequently distributed to TECO Energy, Inc. and then contributed to TECO Gas Operations, Inc. As a result, from and after January 1, 2023, the PGS division is no longer operated by TEC. This is a transaction between entities under common control; therefore, TEC did no t recognize a gain or loss on the transaction. TEC is not required to recast its prior period financial statements and disclosures to exclude PGS prior to January 1, 2023. The TEC consolidated condensed statement of cash flows for the six months ended June 30, 2023 does not include the non-cash impact of separating the PGS assets, liabilities and equity from TEC on January 1, 2023 and excludes PGS’s opening cash balance. The impact of the separation of PGS from TEC on the consolidated condensed statements of capital for the six months ended June 30, 2023 was $ 992 million, which represents the net assets of PGS transferred as of January 1, 2023. TEC recorded $ 121 million to retained earnings, which was the retained earnings of PGS as of January 1, 2023, and the remainder of $ 871 million was recorded to additional paid in capital, which is presented with common stock. Included in the liabilities transferred was PGS’s allocation of outstanding unsecured notes and outstanding short-term borrowings issued by TEC. The obligations related to these combined borrowings are reflected in a loan agreement between TEC and PGS. The initial obligation of PGS under the loan agreement at January 1, 2023 was a term loan in the principal amount of $ 670 million and a revolving loan in the principal amount of $ 66 million. The maturity date for both is December 29, 2023. PGS intends to access the third-party lending market during 2023 but cannot predict when during the year that it will do so. To assist its affiliate and to facilitate an orderly transfer of its gas assets, Tampa Electric will continue to be responsible for providing capital as needed to PGS under a loan agreement. See Note 12 for further information regarding TEC's related party transactions with PGS. For the stand alone PGS balance sheet as of December 31, 2022, see Note 1 of TEC’s Annual Report on Form 10-K for the year ended December 31, 2022. |
Receivables and Allowance for Credit Losses | Receivables and Allowance for Credit Losses Receivables on the Consolidated Condensed Balance Sheets include receivables from contracts with customers, which consist of services to residential, commercial, industrial and other customers, totaling $ 304 million and $ 295 million as of June 30, 2023 and December 31, 2022, respectively. An allowance for credit losses is established based on TEC’s collection experience and reasonable and supportable forecasts that affect the collectibility of the reported amount. Circumstances that could affect TEC’s estimates of credit losses include, but are not limited to, customer credit issues, generating fuel prices, customer deposits and general economic conditions. Accounts are reserved in the allowance or written off once they are deemed to be uncollectible. As of June 30, 2023 and December 31, 2022, unbilled revenues of $ 89 million and $ 82 million, respectively, are included in the “Receivables” line item on the Consolidated Condensed Balance Sheets. |
Accounting for Franchise Fees and Gross Receipts | Accounting for Franchise Fees and Gross Receipts TEC is allowed to recover certain costs from customers on a dollar-for-dollar basis through rates approved by the FPSC. The amounts included in customers’ bills for franchise fees and gross receipt taxes are included as revenues on the Consolidated Condensed Statements of Income. Franchise fees and gross receipt taxes payable by TEC are included as an expense on the Consolidated Condensed Statements of Income in “Taxes, other than income”. These amounts totaled $ 35 million and $ 37 million for the three months ended June 30, 2023 and 2022, respectively, and totaled $ 63 million and $ 69 million for the six months ended June 30, 2023 and 2022, respectively. |
Regulatory (Tables)
Regulatory (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Regulated Operations [Abstract] | |
Schedule of Regulatory Assets and Regulatory Liabilities | Details of the regulatory assets and liabilities are presented in the following table: Regulatory Assets and Liabilities (millions) June 30, 2023 December 31, 2022 Regulatory assets: Regulatory tax asset (1) $ 111 $ 124 Cost-recovery clauses (2) 348 525 Capital cost recovery for early retired assets (3) 494 497 Environmental remediation (4) 0 20 Postretirement benefits (5) 239 272 Asset retirement obligation (6) 10 13 Storm reserve (7) 44 76 Other 19 25 Total regulatory assets 1,265 1,552 Less: Current portion 310 361 Long-term regulatory assets $ 955 $ 1,191 Regulatory liabilities: Regulatory tax liability (8) $ 495 $ 601 Cost-recovery clauses - deferred balances (2) 19 30 Accumulated reserve - cost of removal (9) 298 498 Other 18 11 Total regulatory liabilities 830 1,140 Less: Current portion 86 85 Long-term regulatory liabilities $ 744 $ 1,055 (1) The regulatory tax asset is primarily associated with the depreciation and recovery of AFUDC-equity. This asset does not earn a return but rather is included in the capital structure, which is used in the calculation of the weighted cost of capital used to determine revenue requirements. It will be recovered over the expected life of the related assets. (2) These assets and liabilities are related to FPSC clauses and riders, primarily related to the fuel clause and the increase in natural gas prices experienced in 2022. They are recovered or refunded through cost-recovery mechanisms approved by the FPSC on a dollar-for-dollar basis in a subsequent period. (3) This asset is related to the remaining net book value of Big Bend Units 1 through 3 and meter assets that were retired. The balance earns a rate of return as permitted by the FPSC and will be recovered as a separate line item on customer bills for a period of 15 years . See “Tampa Electric Base Rates” above for further information. (4) This asset is related to PGS 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. (5) 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. (6) 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. (7) See "Tampa Electric Storm Restoration Cost Recovery" above for information regarding this reserve. The regulatory asset is included in rate base and earns interest as permitted by the FPSC. (8) The regulatory tax liability is primarily related to the revaluation of TEC’s deferred income tax balances recorded on December 31, 2017 at the lower corporate income tax rate due to U.S. tax reform. The liability related to the revaluation of the deferred income tax balances is amortized and returned to customers through rate reductions or other revenue offsets based on IRS regulations and the settlement agreement for tax reform benefits approved by the FPSC. (9) 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. |
Employee Postretirement Benef_2
Employee Postretirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
TECO Energy [Member] | |
Schedule of Net Periodic Benefit Cost | The following table presents detail related to TECO Energy’s periodic benefit cost for pension and other postretirement benefits. Amounts disclosed for TECO Energy’s pension benefits include the amounts related to its qualified pension plan and non-qualified, non-contributory SERP and Restoration Plan. TECO Energy Benefit Cost (millions) Pension Benefits Other Postretirement Benefits Three months ended June 30, 2023 2022 2023 2022 Components of net periodic benefit cost Service cost $ 4 $ 5 $ 0 $ 1 Interest cost 9 6 2 2 Expected return on assets ( 13 ) ( 13 ) 0 0 Amortization of: Actuarial loss (gain) 1 5 ( 1 ) ( 1 ) Settlement cost (1) 2 1 0 0 Net periodic benefit cost $ 3 $ 4 $ 1 $ 2 Six months ended June 30, Components of net periodic benefit cost Service cost $ 8 $ 9 $ 0 $ 1 Interest cost 18 12 4 3 Expected return on assets ( 27 ) ( 26 ) 0 0 Amortization of: Actuarial loss (gain) 2 9 ( 1 ) 0 Settlement cost (1) 2 1 0 0 Net periodic benefit cost $ 3 $ 5 $ 3 $ 4 (1) Represents TEC's SERP and Restoration Plan settlement charges as a result of the prior retirements of certain executives. |
Short-Term Debt (Tables)
Short-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Short-Term Debt Credit Facilities | Details of TEC’s short-term borrowings are presented in the following table: June 30, 2023 December 31, 2022 Borrowings Borrowings Letters Borrowings Borrowings Letters Credit Outstanding - Outstanding - of Credit Credit Outstanding - Outstanding - of Credit (millions) Facilities Credit Facilities (1) Commercial Paper (1) Outstanding Facilities Credit Facilities (1) Commercial Paper (1) Outstanding 5-year facility (2) $ 800 $ 0 $ 794 $ 1 $ 800 $ 0 $ 619 $ 1 1-year term facility (3) 400 400 0 0 400 400 0 0 1-year term facility (4) 200 30 0 0 0 0 0 0 1-year term facility (5) 200 0 0 0 0 0 0 0 Total $ 1,600 $ 430 $ 794 $ 1 $ 1,200 $ 400 $ 619 $ 1 (1) Borrowings outstanding are reported as notes payable. (2) This 5-year facility matures on December 17, 2026 . TEC also has an active commercial paper program for up to $ 800 million, of which the full amount outstanding is backed by TEC’s credit facility. The amount of commercial paper issued results in an equal amount of its credit facility being considered drawn and unavailable. (3) This 1-year term facility was set to mature on December 16, 2022 . On December 13, 2022, TEC extended the maturity date to December 13, 2023. (4) On March 1, 2023, TEC entered into a 1-year term facility that matures on February 28, 2024 . (5) On April 3, 2023, TEC entered into a 1-year term facility that matures on April 1, 2024 . |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Long-term Commitments | The following is a schedule of future payments under PPAs, minimum lease payments with non-cancelable lease terms in excess of one year, and other net purchase obligations/commitments at June 30, 2023: Fuel Long-term Demand Purchased Capital and Service Operating Side (millions) Power Transportation Projects Gas Supply (1) Agreements Leases Management Total 2023 $ 11 $ 67 $ 426 $ 160 $ 18 $ 1 $ 2 $ 685 2024 0 132 131 36 34 3 5 341 2025 0 128 4 4 22 2 4 164 2026 0 125 4 4 23 1 1 158 2027 0 125 1 4 22 1 1 154 Thereafter 0 930 0 1 50 46 0 1,027 Total future minimum payments $ 11 $ 1,507 $ 566 $ 209 $ 169 $ 54 $ 13 $ 2,529 (1) As of June 30, 2023, $ 13 million of fuel and gas supply contractual obligations were held between Tampa Electric and Emera Energy Services, a related party. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | (millions) Tampa Eliminations/ Tampa Electric Three months ended June 30, Electric PGS Reclassifications Company 2023 Revenues - external $ 677 $ 677 Intracompany sales 0 0 Total revenues 677 677 Total interest charges 61 61 Net income $ 132 $ 132 2022 Revenues - external $ 662 $ 159 $ 0 $ 821 Intracompany sales 1 1 ( 2 ) 0 Total revenues 663 160 ( 2 ) 821 Total interest charges 32 6 0 38 Net income $ 126 $ 19 $ 0 $ 145 Six months ended June 30, 2023 Revenues - external $ 1,229 $ 1,229 Intracompany sales 0 0 Total revenues 1,229 1,229 Total interest charges 119 119 Net income $ 211 $ 211 2022 Revenues - external $ 1,171 $ 341 $ 0 $ 1,512 Intracompany sales 2 2 ( 4 ) 0 Total revenues 1,173 343 ( 4 ) 1,512 Total interest charges 62 11 0 73 Net income $ 214 $ 49 $ 0 $ 263 Total assets at June 30, 2023 $ 13,121 $ ( 639 ) (1) $ 12,482 Total assets at December 31, 2022 $ 12,064 $ 2,471 (2) $ ( 732 ) (1) $ 13,803 (1) Amounts primarily relate to consolidated deferred tax reclassifications. Deferred tax assets are reclassified and netted with deferred tax liabilities upon consolidation. (2) For the summary of the assets and liabilities of PGS as of December 31, 2022, see Note 1 of TEC’s Annual Report on Form 10-K for the year ended December 31, 2022. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue Recognition [Abstract] | |
Summary of Disaggregates TEC Revenue by Major Source | The following disaggregates TEC’s revenue by major source: (millions) Tampa Tampa Electric Three months ended June 30, 2023 Electric PGS Eliminations Company Electric revenue Residential $ 430 $ 430 Commercial 201 201 Industrial 50 50 Regulatory deferrals ( 97 ) ( 97 ) Unbilled revenue 21 21 Other (1) 72 72 Total electric revenue 677 677 Total revenue $ 677 $ 677 Three months ended June 30, 2022 Electric revenue Residential $ 348 $ 0 $ 0 $ 348 Commercial 170 0 0 170 Industrial 47 0 0 47 Regulatory deferrals ( 4 ) 0 0 ( 4 ) Unbilled revenue 20 0 0 20 Other (1) 82 ` 0 ( 1 ) 81 Total electric revenue 663 0 ( 1 ) 662 Gas revenue Residential 0 50 0 50 Commercial 0 49 0 49 Industrial (2) 0 8 0 8 Other (3) 0 53 ( 1 ) 52 Total gas revenue 0 160 ( 1 ) 159 Total revenue $ 663 $ 160 $ ( 2 ) $ 821 (millions) Tampa Tampa Electric Six months ended June 30, 2023 Electric PGS Eliminations Company Electric revenue Residential $ 755 $ 755 Commercial 371 371 Industrial 96 96 Regulatory deferrals ( 160 ) ( 160 ) Unbilled revenue 24 24 Other (1) 143 143 Total electric revenue 1,229 1,229 Total revenue $ 1,229 $ 1,229 Six months ended June 30, 2022 Electric revenue Residential $ 618 $ 0 $ 0 $ 618 Commercial 307 0 0 307 Industrial 84 0 0 84 Regulatory deferrals ( 6 ) 0 0 ( 6 ) Unbilled revenue 25 0 0 25 Other (1) 145 0 ( 2 ) 143 Total electric revenue 1,173 0 ( 2 ) 1,171 Gas revenue Residential 0 125 0 125 Commercial 0 105 0 105 Industrial (2) 0 15 0 15 Other (3) 0 98 ( 2 ) 96 Total gas revenue 0 343 ( 2 ) 341 Total revenue $ 1,173 $ 343 $ ( 4 ) $ 1,512 (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. Other gas revenue includes off-system sales to other utilities and various other items. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | A summary of activities between TEC and its affiliates follows: Net transactions with affiliates Three months ended June 30, Six months ended June 30, (millions) 2023 2022 2023 2022 Natural gas sales to/(from) affiliates $ ( 14 ) $ ( 52 ) $ ( 36 ) $ ( 114 ) Services to/(from) affiliates 8 ( 1 ) 15 ( 3 ) Interest income from affiliates 10 0 18 0 Interest expense to affiliates 2 0 5 0 Dividends to TECO Energy 79 117 170 202 Equity contributions from TECO Energy 100 105 200 280 Amounts due from or to affiliates (millions) June 30, 2023 December 31, 2022 Note receivable from PGS (1) $ 861 $ 0 Interest receivable (1) 3 0 Accounts receivable related to asset management agreements to Emera Energy Services Inc. (2) 4 7 Accounts receivable excluding asset management agreements (2) 6 5 Taxes receivable (3) 19 10 Accounts payable (2) 13 31 Note payable to TECO Energy (4) 195 195 Interest payable to TECO Energy (4) 1 0 (1) On January 1, 2023, TEC entered into a loan agreement with PGS for PGS’s allocation of outstanding unsecured notes issued by TEC and outstanding short-term borrowings associated with the separation of PGS from TEC on that date. As of June 30, 2023, the note receivable from PGS was a term loan in the principal amount of $ 670 million and a revolving loan in the principal amount of $ 198 million , offset by discounts and issuance costs of $ 7 million. The maturity date for both loans is December 29, 2023 . The note receivable for the term loan bears interest at primarily the stated rate and the revolving loan rate is consistent with the market rate of TEC's commercial paper. See "Separation of PGS from TEC" in Note 1 for further information. (2) Accounts receivable and accounts payable were incurred in the ordinary course of business and do not bear interest. (3) Taxes receivable were due from EUSHI. See Note 4 for additional information. The note payable with TECO Energy bears interest at a rate approximating the market rate of TEC's commercial paper. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jan. 01, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Issuance of common stock on transfer of assets | 100 | |||||
Gain (loss) from transaction | $ 0 | |||||
Receivables from contracts with customers | $ 304,000,000 | $ 304,000,000 | $ 295,000,000 | |||
Unbilled revenues | 89,000,000 | 89,000,000 | 82,000,000 | |||
Franchise fees and gross receipts taxes | 35,000,000 | $ 37,000,000 | 63,000,000 | $ 69,000,000 | ||
Separation of PGS equity from TEC | 992,000,000 | |||||
Retained earnings | 121,000,000 | $ 266,000,000 | 266,000,000 | $ 346,000,000 | ||
Additional Paid in capital | 871,000,000 | |||||
TECO Energy [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Separation of PGS equity from TEC | $ 992,000,000 | |||||
Term Loan [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Principal amount | 670,000,000 | |||||
Revolving Loan [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Principal amount | $ 66,000,000 |
Regulatory - Additional Informa
Regulatory - Additional Information (Detail) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
Jan. 23, 2023 | Jul. 01, 2022 | Aug. 06, 2021 | Oct. 31, 2013 | Jan. 31, 2024 | Jan. 31, 2023 | Nov. 30, 2022 | Sep. 30, 2022 | Jan. 31, 2022 | Jun. 30, 2023 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2022 | |
Public Utilities General Disclosures [Line Items] | ||||||||||||||
Base rate adjustment amount | $ 10,000,000 | |||||||||||||
Adjustments to fuel charges recovery | $ 518,000,000 | |||||||||||||
Adjustments to fuel charges recovery projected reduction | $ 170,000,000 | |||||||||||||
Accumulated depreciation | $ 3,278,000,000 | $ 3,845,000,000 | ||||||||||||
Additional cost recovery from settlement agreement | $ 169,000,000 | |||||||||||||
Settlement Agreement [Member] | ||||||||||||||
Public Utilities General Disclosures [Line Items] | ||||||||||||||
Base rate adjustment amount | $ 123,000,000 | |||||||||||||
Increase in revenue | $ 191,000,000 | |||||||||||||
Settlement agreement number of subsequent years adjustments | 2 years | |||||||||||||
Settlement agreement adjustment amount | $ 90,000,000 | |||||||||||||
Allowed equity in the capital structure | 54% | |||||||||||||
Basis point increase applicable | 0.25% | |||||||||||||
Additional attainable revenue under settlement agreement | $ 10,000,000 | |||||||||||||
Changes in base rate under agreement | $ 0 | |||||||||||||
Impact of tax reform through reduction in base revenue days | 180 days | |||||||||||||
Settlement Agreement [Member] | Scenario Forecast [Member] | ||||||||||||||
Public Utilities General Disclosures [Line Items] | ||||||||||||||
Settlement agreement adjustment amount | $ 21,000,000 | |||||||||||||
Settlement Agreement [Member] | US Treasury Bond [Member] | ||||||||||||||
Public Utilities General Disclosures [Line Items] | ||||||||||||||
Calculating period | 30 years | |||||||||||||
Determining period | 6 months | |||||||||||||
Minimum [Member] | ||||||||||||||
Public Utilities General Disclosures [Line Items] | ||||||||||||||
Percentage of ROE | 9.25% | |||||||||||||
Minimum [Member] | Settlement Agreement [Member] | ||||||||||||||
Public Utilities General Disclosures [Line Items] | ||||||||||||||
Percentage of ROE | 9% | |||||||||||||
Base rate agreement frozen period | Jan. 01, 2022 | |||||||||||||
Minimum [Member] | Settlement Agreement [Member] | US Treasury Bond [Member] | ||||||||||||||
Public Utilities General Disclosures [Line Items] | ||||||||||||||
ROE revenue basis point on yield rate | 0.50% | |||||||||||||
Maximum [Member] | ||||||||||||||
Public Utilities General Disclosures [Line Items] | ||||||||||||||
Percentage of ROE | 11.25% | |||||||||||||
Maximum [Member] | Settlement Agreement [Member] | ||||||||||||||
Public Utilities General Disclosures [Line Items] | ||||||||||||||
Percentage of ROE | 11% | |||||||||||||
Base rate agreement frozen period | Dec. 31, 2024 | |||||||||||||
Mid Point [Member] | ||||||||||||||
Public Utilities General Disclosures [Line Items] | ||||||||||||||
Percentage of ROE | 10.20% | |||||||||||||
Mid Point [Member] | Settlement Agreement [Member] | ||||||||||||||
Public Utilities General Disclosures [Line Items] | ||||||||||||||
Percentage of ROE | 9.95% | |||||||||||||
Retiring Assets [Member] | Settlement Agreement [Member] | ||||||||||||||
Public Utilities General Disclosures [Line Items] | ||||||||||||||
Cost recovery from settlement agreement | $ 68,000,000 | |||||||||||||
Retiring Coal Generation Units and Meter Assets [Member] | Settlement Agreement [Member] | ||||||||||||||
Public Utilities General Disclosures [Line Items] | ||||||||||||||
Settlement agreement cost recovery period | 15 years | |||||||||||||
Storm Restoration Cost Recovery [Member] | ||||||||||||||
Public Utilities General Disclosures [Line Items] | ||||||||||||||
Minimum cost recovery period | 12 months | |||||||||||||
Replenishment reserve for recovery of cost | $ 56,000,000 | |||||||||||||
Multiple Hurricanes [Member] | ||||||||||||||
Public Utilities General Disclosures [Line Items] | ||||||||||||||
Storm restoration preparation costs | $ 10,000,000 | $ 10,000,000 | $ 10,000,000 | |||||||||||
Hurricane Ian [Member] | ||||||||||||||
Public Utilities General Disclosures [Line Items] | ||||||||||||||
Restoration costs | $ 129,000,000 | |||||||||||||
Storm reserve expected to charge | $ 121,000,000 | |||||||||||||
Storm restoration costs charged to reserve | 10,000,000 | |||||||||||||
Replenishment of balance in reserve | $ 131,000,000 | $ 56,000,000 | ||||||||||||
Hurricane Nicole [Member] | ||||||||||||||
Public Utilities General Disclosures [Line Items] | ||||||||||||||
Restoration costs | $ 2,000,000 |
Regulatory - Schedule of Regula
Regulatory - Schedule of Regulatory Assets and Regulatory Liabilities (Detail) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Regulatory assets: | ||
Regulatory assets | $ 1,265 | $ 1,552 |
Less: Current portion | 310 | 361 |
Long-term regulatory assets | 955 | 1,191 |
Regulatory liabilities: | ||
Regulatory liabilities | 830 | 1,140 |
Less: Current portion | 86 | 85 |
Long-term regulatory liabilities | 744 | 1,055 |
Regulatory Tax Asset [Member] | ||
Regulatory assets: | ||
Regulatory assets | 111 | 124 |
Cost-Recovery Clauses [Member] | ||
Regulatory assets: | ||
Regulatory assets | 348 | 525 |
Capital Cost Recovery for Early Retired Assets [Member] | ||
Regulatory assets: | ||
Regulatory assets | 494 | 497 |
Environmental Remediation [Member] | ||
Regulatory assets: | ||
Regulatory assets | 0 | 20 |
Postretirement Benefits [Member] | ||
Regulatory assets: | ||
Regulatory assets | 239 | 272 |
Asset Retirement Obligation [Member] | ||
Regulatory assets: | ||
Regulatory assets | 10 | 13 |
Storm Reserve [Member] | ||
Regulatory assets: | ||
Regulatory assets | 44 | 76 |
Other [Member] | ||
Regulatory assets: | ||
Regulatory assets | 19 | 25 |
Regulatory Tax Liability [Member] | Non-Current Liabilities [Member] | ||
Regulatory liabilities: | ||
Regulatory liabilities | 495 | 601 |
Cost-recovery Clauses - Deferred Balances [Member] | ||
Regulatory liabilities: | ||
Regulatory liabilities | 19 | 30 |
Accumulated Reserve - Cost of Removal [Member] | ||
Regulatory liabilities: | ||
Regulatory liabilities | 298 | 498 |
Other [Member] | ||
Regulatory liabilities: | ||
Regulatory liabilities | $ 18 | $ 11 |
Regulatory - Schedule of Regu_2
Regulatory - Schedule of Regulatory Assets and Regulatory Liabilities (Parenthetical) (Detail) | 6 Months Ended |
Jun. 30, 2023 | |
Capital Cost Recovery for Early Retired Assets [Member] | |
Schedule Of Regulatory Assets And Liabilities [Line Items] | |
Settlement agreement cost recovery period | 15 years |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Income Taxes [Line Items] | |||
Regulatory liability due to obligation to transfer tax rate reduction expense benefit | $ 15 | ||
Effective tax rate | 15.60% | 20.50% | |
Unrecognized tax benefit that would reduce effective tax rate | $ 9 | $ 9 |
Employee Postretirement Benef_3
Employee Postretirement Benefits - Schedule of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Pension Benefits [Member] | |||||
Amortization of: | |||||
Net periodic benefit cost | $ 1 | $ 3 | $ 1 | $ 4 | |
Other Postretirement Benefits [Member] | |||||
Amortization of: | |||||
Net periodic benefit cost | 2 | 3 | 3 | 5 | |
TECO Energy [Member] | Pension Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 4 | 5 | 8 | 9 | |
Interest cost | 9 | 6 | 18 | 12 | |
Expected return on assets | (13) | (13) | (27) | (26) | |
Amortization of: | |||||
Actuarial loss (gain) | 1 | 5 | 2 | 9 | |
Settlement cost | [1] | 2 | 1 | 2 | 1 |
Net periodic benefit cost | 3 | 4 | 3 | 5 | |
TECO Energy [Member] | Other Postretirement Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 0 | 1 | 0 | 1 | |
Interest cost | 2 | 2 | 4 | 3 | |
Expected return on assets | 0 | 0 | 0 | 0 | |
Amortization of: | |||||
Actuarial loss (gain) | (1) | (1) | (1) | 0 | |
Settlement cost | [1] | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $ 1 | $ 2 | $ 3 | $ 4 | |
[1] Represents TEC's SERP and Restoration Plan settlement charges as a result of the prior retirements of certain executives. |
Employee Postretirement Benef_4
Employee Postretirement Benefits - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Reclassification of regulatory assets to net income as part of periodic benefit cost | $ 1 | $ 5 | $ 1 | $ 9 | |
TECO Energy [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Long-term EROA | 7.05% | ||||
Pension Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic benefit cost | 1 | 3 | $ 1 | 4 | |
Employer contributions | 5 | 8 | |||
Pension Benefits [Member] | Scenario Forecast [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employer contributions | $ 5 | ||||
Pension Benefits [Member] | TECO Energy [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic benefit cost | 3 | 4 | $ 3 | 5 | |
Discount rate | 5.55% | ||||
Employer contributions | 8 | 9 | |||
Pension Benefits [Member] | TECO Energy [Member] | Scenario Forecast [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employer contributions | $ 8 | ||||
Other Postretirement Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic benefit cost | 2 | 3 | $ 3 | 5 | |
Other Postretirement Benefits [Member] | TECO Energy [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic benefit cost | $ 1 | $ 2 | $ 3 | $ 4 | |
Discount rate | 5.53% |
Short-Term Debt - Credit Facili
Short-Term Debt - Credit Facilities (Detail) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Line Of Credit Facility [Line Items] | ||
Credit Facilities | $ 1,600,000,000 | $ 1,200,000,000 |
Borrowings Outstanding | 1,224,000,000 | 1,019,000,000 |
Letters of Credit Outstanding | 1,000,000 | 1,000,000 |
Credit Facilities [Member] | ||
Line Of Credit Facility [Line Items] | ||
Letters of Credit Outstanding | 430,000,000 | 400,000,000 |
Commercial Paper [Member] | ||
Line Of Credit Facility [Line Items] | ||
Borrowings Outstanding | 794,000,000 | 619,000,000 |
December 16, 2022 [Member] | Credit Facilities [Member] | ||
Line Of Credit Facility [Line Items] | ||
Letters of Credit Outstanding | 400,000,000 | |
5-year Facility [Member] | December 17, 2026 [Member] | ||
Line Of Credit Facility [Line Items] | ||
Credit Facilities | 800,000,000 | 800,000,000 |
Letters of Credit Outstanding | 1,000,000 | 1,000,000 |
5-year Facility [Member] | December 17, 2026 [Member] | Credit Facilities [Member] | ||
Line Of Credit Facility [Line Items] | ||
Letters of Credit Outstanding | 0 | 0 |
5-year Facility [Member] | December 17, 2026 [Member] | Commercial Paper [Member] | ||
Line Of Credit Facility [Line Items] | ||
Borrowings Outstanding | 794,000,000 | 619,000,000 |
1-year Term Facility [Member] | December 16, 2022 [Member] | ||
Line Of Credit Facility [Line Items] | ||
Credit Facilities | 400,000,000 | 400,000,000 |
Letters of Credit Outstanding | 0 | 0 |
1-year Term Facility [Member] | December 16, 2022 [Member] | Credit Facilities [Member] | ||
Line Of Credit Facility [Line Items] | ||
Letters of Credit Outstanding | 400,000,000 | |
1-year Term Facility [Member] | December 16, 2022 [Member] | Commercial Paper [Member] | ||
Line Of Credit Facility [Line Items] | ||
Borrowings Outstanding | 0 | 0 |
1-year Term Facility [Member] | February 28, 2024 [Member] | ||
Line Of Credit Facility [Line Items] | ||
Credit Facilities | 200,000,000 | 0 |
Letters of Credit Outstanding | 0 | 0 |
1-year Term Facility [Member] | February 28, 2024 [Member] | Credit Facilities [Member] | ||
Line Of Credit Facility [Line Items] | ||
Letters of Credit Outstanding | 30,000,000 | 0 |
1-year Term Facility [Member] | February 28, 2024 [Member] | Commercial Paper [Member] | ||
Line Of Credit Facility [Line Items] | ||
Borrowings Outstanding | 0 | 0 |
1-year Term Facility [Member] | April 1, 2024 [Member] | ||
Line Of Credit Facility [Line Items] | ||
Credit Facilities | 200,000,000 | 0 |
Letters of Credit Outstanding | 0 | 0 |
1-year Term Facility [Member] | April 1, 2024 [Member] | Credit Facilities [Member] | ||
Line Of Credit Facility [Line Items] | ||
Letters of Credit Outstanding | 0 | 0 |
1-year Term Facility [Member] | April 1, 2024 [Member] | Commercial Paper [Member] | ||
Line Of Credit Facility [Line Items] | ||
Borrowings Outstanding | $ 0 | $ 0 |
Short-Term Debt - Credit Faci_2
Short-Term Debt - Credit Facilities (Parenthetical) (Detail) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Apr. 03, 2023 | Mar. 01, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
5-year Facility [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Credit facility maturity date | Dec. 17, 2026 | Dec. 17, 2026 | ||
1-year Term Facility [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Credit facility maturity date | Apr. 01, 2024 | Feb. 28, 2024 | Dec. 16, 2022 | Dec. 16, 2022 |
Maximum [Member] | Commercial Paper Program [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Commercial paper issued | $ 800,000,000 |
Short-Term Debt - Additional In
Short-Term Debt - Additional Information (Detail) - USD ($) | 6 Months Ended | |||
Apr. 03, 2023 | Mar. 01, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Line Of Credit Facility [Line Items] | ||||
Commitment fees, percentage | 0.125% | |||
Weighted-average interest rate | 5.72% | 5% | ||
Line of credit facility maximum borrowing capacity | $ 1,600,000,000 | $ 1,200,000,000 | ||
364-day Credit Agreement [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Line of credit facility maximum borrowing capacity | $ 200,000,000 | $ 200,000,000 | ||
Credit facility maturity date | Apr. 01, 2024 | Feb. 28, 2024 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 3,735 | $ 3,734 |
Estimated fair value | $ 3,240 | $ 3,234 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Long-term Commitments (Detail) $ in Millions | Jun. 30, 2023 USD ($) |
Other Commitments [Line Items] | |
2023 | $ 685 |
2024 | 341 |
2025 | 164 |
2026 | 158 |
2027 | 154 |
Thereafter | 1,027 |
Total future minimum payments | 2,529 |
Purchased Power [Member] | |
Other Commitments [Line Items] | |
2023 | 11 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
Total future minimum payments | 11 |
Transportation [Member] | |
Other Commitments [Line Items] | |
2023 | 67 |
2024 | 132 |
2025 | 128 |
2026 | 125 |
2027 | 125 |
Thereafter | 930 |
Total future minimum payments | 1,507 |
Capital Projects [Member] | |
Other Commitments [Line Items] | |
2023 | 426 |
2024 | 131 |
2025 | 4 |
2026 | 4 |
2027 | 1 |
Thereafter | 0 |
Total future minimum payments | 566 |
Fuel and Gas Supply [Member] | |
Other Commitments [Line Items] | |
2023 | 160 |
2024 | 36 |
2025 | 4 |
2026 | 4 |
2027 | 4 |
Thereafter | 1 |
Total future minimum payments | 209 |
Long-term Service Agreements [Member] | |
Other Commitments [Line Items] | |
2023 | 18 |
2024 | 34 |
2025 | 22 |
2026 | 23 |
2027 | 22 |
Thereafter | 50 |
Total future minimum payments | 169 |
Operating Leases [Member] | |
Other Commitments [Line Items] | |
2023 | 1 |
2024 | 3 |
2025 | 2 |
2026 | 1 |
2027 | 1 |
Thereafter | 46 |
Total future minimum payments | 54 |
Demand Side Management [Member] | |
Other Commitments [Line Items] | |
2023 | 2 |
2024 | 5 |
2025 | 4 |
2026 | 1 |
2027 | 1 |
Thereafter | 0 |
Total future minimum payments | $ 13 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Long-term Commitments (Parenthetical) (Detail) $ in Millions | Jun. 30, 2023 USD ($) |
Other Commitments [Line Items] | |
Contractual obligations | $ 2,529 |
Fuel And Gas Supply [Member] | |
Other Commitments [Line Items] | |
Contractual obligations | 209 |
Fuel And Gas Supply [Member] | Tampa Electric [Member] | |
Other Commitments [Line Items] | |
Contractual obligations | $ 13 |
Segment Information - Additiona
Segment Information - Additional Infomation (Detail) | 6 Months Ended |
Jun. 30, 2023 Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
Segment Information - Schedule
Segment Information - Schedule of Segment Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 677 | $ 821 | $ 1,229 | $ 1,512 | |
Total interest charges | 61 | 38 | 119 | 73 | |
Net income | 132 | 145 | 211 | 263 | |
Total assets | 12,482 | 12,482 | $ 13,803 | ||
Revenues - External [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 677 | 821 | 1,229 | 1,512 | |
Intracompany Sales [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Intracompany sales | 0 | 0 | 0 | 0 | |
Eliminations/Reclassifications [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | (2) | (4) | |||
Total interest charges | 0 | 0 | |||
Net income | 0 | 0 | |||
Total assets | (639) | (639) | (732) | ||
Eliminations/Reclassifications [Member] | Revenues - External [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 0 | 0 | |||
Eliminations/Reclassifications [Member] | Intracompany Sales [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Intracompany sales | (2) | (4) | |||
Tampa Electric [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 677 | 663 | 1,229 | 1,173 | |
Tampa Electric [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 677 | 663 | 1,229 | 1,173 | |
Total interest charges | 61 | 32 | 119 | 62 | |
Net income | 132 | 126 | 211 | 214 | |
Total assets | 13,121 | 13,121 | 12,064 | ||
Tampa Electric [Member] | Operating Segments [Member] | Revenues - External [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 677 | 662 | 1,229 | 1,171 | |
Tampa Electric [Member] | Operating Segments [Member] | Intracompany Sales [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Intracompany sales | $ 0 | 1 | $ 0 | 2 | |
PGS [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 160 | 343 | |||
PGS [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 160 | 343 | |||
Total interest charges | 6 | 11 | |||
Net income | 19 | 49 | |||
Total assets | $ 2,471 | ||||
PGS [Member] | Operating Segments [Member] | Revenues - External [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 159 | 341 | |||
PGS [Member] | Operating Segments [Member] | Intracompany Sales [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Intracompany sales | $ 1 | $ 2 |
Revenue - Summary of Disaggrega
Revenue - Summary of Disaggregates TEC Revenue by Major Source (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation Of Revenue [Line Items] | ||||
Total electric revenue | $ 677 | $ 662 | $ 1,229 | $ 1,171 |
Total gas revenue | 0 | 159 | 0 | 341 |
Total revenue | 677 | 821 | 1,229 | 1,512 |
Residential [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total electric revenue | 430 | 348 | 755 | 618 |
Total gas revenue | 50 | 125 | ||
Commercial [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total electric revenue | 201 | 170 | 371 | 307 |
Total gas revenue | 49 | 105 | ||
Industrial [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total electric revenue | 50 | 47 | 96 | 84 |
Total gas revenue | 8 | 15 | ||
Regulatory Deferrals [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total electric revenue | (97) | (4) | (160) | (6) |
Unbilled Revenue [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total electric revenue | 21 | 20 | 24 | 25 |
Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total electric revenue | 72 | 81 | 143 | 143 |
Total gas revenue | 52 | 96 | ||
Eliminations [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total electric revenue | (1) | (2) | ||
Total gas revenue | (1) | (2) | ||
Total revenue | (2) | (4) | ||
Eliminations [Member] | Residential [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total electric revenue | 0 | 0 | ||
Total gas revenue | 0 | 0 | ||
Eliminations [Member] | Commercial [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total electric revenue | 0 | 0 | ||
Total gas revenue | 0 | 0 | ||
Eliminations [Member] | Industrial [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total electric revenue | 0 | 0 | ||
Total gas revenue | 0 | 0 | ||
Eliminations [Member] | Regulatory Deferrals [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total electric revenue | 0 | 0 | ||
Eliminations [Member] | Unbilled Revenue [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total electric revenue | 0 | 0 | ||
Eliminations [Member] | Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total electric revenue | (1) | (2) | ||
Total gas revenue | (1) | (2) | ||
Tampa Electric [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total electric revenue | 677 | 663 | 1,229 | 1,173 |
Total gas revenue | 0 | 0 | ||
Total revenue | 677 | 663 | 1,229 | 1,173 |
Tampa Electric [Member] | Residential [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total electric revenue | 430 | 348 | 755 | 618 |
Total gas revenue | 0 | 0 | ||
Tampa Electric [Member] | Commercial [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total electric revenue | 170 | 371 | 307 | |
Total gas revenue | 201 | 0 | 0 | |
Tampa Electric [Member] | Industrial [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total electric revenue | 50 | 47 | 96 | 84 |
Total gas revenue | 0 | 0 | ||
Tampa Electric [Member] | Regulatory Deferrals [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total electric revenue | (97) | (4) | (160) | (6) |
Tampa Electric [Member] | Unbilled Revenue [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total electric revenue | 21 | 20 | 24 | 25 |
Tampa Electric [Member] | Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total electric revenue | $ 72 | 82 | $ 143 | 145 |
Total gas revenue | 0 | 0 | ||
PGS [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total electric revenue | 0 | 0 | ||
Total gas revenue | 160 | 343 | ||
Total revenue | 160 | 343 | ||
PGS [Member] | Residential [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total electric revenue | 0 | 0 | ||
Total gas revenue | 50 | 125 | ||
PGS [Member] | Commercial [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total electric revenue | 0 | 0 | ||
Total gas revenue | 49 | 105 | ||
PGS [Member] | Industrial [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total electric revenue | 0 | 0 | ||
Total gas revenue | 8 | 15 | ||
PGS [Member] | Regulatory Deferrals [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total electric revenue | 0 | 0 | ||
PGS [Member] | Unbilled Revenue [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total electric revenue | 0 | 0 | ||
PGS [Member] | Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total electric revenue | 0 | 0 | ||
Total gas revenue | $ 53 | $ 98 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Regulated Operating Revenue [Abstract] | ||
Remaining performance obligations, transaction price | $ 62 | $ 140 |
Remaining performance obligations, expected year of revenue recognition | 2043 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Parties (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||||
Natural gas sales to/(from) affiliates | $ (14) | $ (52) | $ (36) | $ (114) | |
Services to/(from) affiliates | 8 | (1) | 15 | (3) | |
Interest income from affiliates | 10 | 0 | 18 | 0 | |
Interest expense to affiliates | 2 | 0 | 5 | 0 | |
Dividends to TECO Energy | 170 | 202 | |||
Equity contributions from TECO Energy | 200 | 280 | |||
PGS [Member] | |||||
Related Party Transaction [Line Items] | |||||
Note receivable from PGS | 861 | 861 | $ 0 | ||
Interest receivable | 3 | 3 | 0 | ||
Affiliate [Member] | |||||
Related Party Transaction [Line Items] | |||||
Accounts receivable excluding asset management agreements | 6 | 6 | 5 | ||
Taxes receivable | 19 | 19 | 10 | ||
Accounts payable | 13 | 13 | 31 | ||
Note payable to TECO Energy | 195 | 195 | 195 | ||
Interest payable to TECO Energy | 1 | 1 | 0 | ||
Emera Energy Services Inc [Member] | |||||
Related Party Transaction [Line Items] | |||||
Accounts receivable related to asset management agreements to Emera Energy Services Inc. | 4 | 4 | $ 7 | ||
TECO Energy [Member] | |||||
Related Party Transaction [Line Items] | |||||
Dividends to TECO Energy | 79 | 117 | 170 | 202 | |
Equity contributions from TECO Energy | $ 100 | $ 105 | $ 200 | $ 280 |
Related Party Transactions - _2
Related Party Transactions - Schedule of Related Parties (Parenthetical) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jan. 01, 2023 | |
PGSI [Member] | ||
Related Party Transaction [Line Items] | ||
Debt discounts and issuance costs, net | $ 7 | |
Term Loan [Member] | ||
Related Party Transaction [Line Items] | ||
Principal amount | $ 670 | |
Term Loan [Member] | PGSI [Member] | ||
Related Party Transaction [Line Items] | ||
Principal amount | 670 | |
Revolving Loan [Member] | ||
Related Party Transaction [Line Items] | ||
Principal amount | $ 66 | |
Revolving Loan [Member] | PGSI [Member] | ||
Related Party Transaction [Line Items] | ||
Principal amount | $ 198 | |
Term Loan and Revolving Loan [Member] | PGSI [Member] | ||
Related Party Transaction [Line Items] | ||
Debt instrument maturity date | Dec. 29, 2023 |