Tampa Electric 10-Q 10 May 24 2024 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2024	May 09, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
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

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Property, plant and equipment
Utility plant, at original costs	$ 13,852	$ 13,655
Accumulated depreciation	(3,476)	(3,443)
Utility plant, net	10,376	10,212
Other property	16	16
Total property, plant and equipment, net	10,392	10,228
Current assets
Cash and cash equivalents	6	5
Receivables, less allowance for credit losses of $2 and $2 at March 31, 2024 and December 31, 2023, respectively	243	286
Inventories, at average cost
Regulatory assets	109	161
Prepayments and other current assets	27	32
Total current assets	618	720
Other assets
Regulatory assets	832	827
Other	75	56
Total other assets	907	883
Total assets	11,917	11,831
Capitalization
Common stock	4,805	4,505
Accumulated other comprehensive loss	(1)	(1)
Retained earnings	197	219
Total capital	5,001	4,723
Long-term debt	3,933	3,933
Total capitalization	8,934	8,656
Current liabilities
Long-term debt due within one year	300	300
Notes payable	56	209
Accounts payable	226	354
Customer deposits	122	121
Regulatory liabilities	91	94
Accrued interest	49	28
Accrued taxes	32	14
Other	49	43
Total current liabilities	934	1,173
Long-term liabilities
Deferred income taxes	891	880
Regulatory liabilities	730	701
Investment tax credits	235	237
Deferred credits and other liabilities	193	184
Total long-term liabilities	2,049	2,002
Commitments and Contingencies (see Note 8)
Total liabilities and capitalization	11,917	11,831
Related Party [Member]
Current assets
Due from affiliates	13	19
Current liabilities
Due to affiliates	9	10
Fuel [Member]
Inventories, at average cost
Utility inventories	35	36
Materials and Supplies [Member]
Inventories, at average cost
Utility inventories	$ 185	$ 181

Condensed Balance Sheets (Una_2

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

Condensed Statements of Income

Condensed Statements of Income and Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenues
Electric	$ 548	$ 552
Expenses
Fuel	133	137
Purchased power	8	10
Operations and maintenance	134	118
Depreciation and amortization	112	104
Taxes, other than income	52	52
Total expenses	439	421
Income from operations	109	131
Other income
Allowance for equity funds used during construction	5	3
Interest income from affiliates	0	8
Other income, net	6	10
Total other income	11	21
Interest charges
Interest expense	51	56
Interest expense to affiliates	0	3
Allowance for borrowed funds used during construction	(2)	(1)
Total interest charges	49	58
Income before provision for income taxes	71	94
Provision for income taxes	8	15
Net income	63	79
Comprehensive income	$ 63	$ 79

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities
Net income	$ 63	$ 79
Adjustments to reconcile net income to cash from operating activities:
Depreciation and amortization	112	104
Deferred income taxes and investment tax credits	6	14
Allowance for equity funds used during construction	(5)	(3)
Deferred recovery clauses	42	50
Regulatory assets and liabilities	19	11
Pension and post-retirement asset and liabilities	(3)	(5)
Other	(4)	6
Changes in working capital:
Receivables, less allowance for credit losses	46	(2)
Inventories	(3)	(10)
Taxes accrued	20	19
Interest accrued	21	8
Accounts payable	(112)	(125)
Other	3	5
Cash flows from operating activities	205	151
Cash flows used in investing activities
Capital expenditures	(268)	(254)
Net proceeds from sale of assets	3	0
Cash flows used in investing activities	(265)	(254)
Cash flows from financing activities
Equity contributions from Parent	300	100
Proceeds from long-term debt issuance	496	0
Net increase (decrease) in short-term debt (maturities of 90 days or less)	(650)	164
Advances to affiliate	0	(76)
Dividends to Parent	(85)	(91)
Cash flows from financing activities	61	97
Net increase (decrease) in cash and cash equivalents	1	(6)
Cash and cash equivalents at beginning of period	5	10
Cash and cash equivalents at end of period	6	4
Supplemental disclosure of non-cash activities
Change in accrued capital expenditures	(11)	(9)
Change in notes receivable from PGS	$ 0	$ (736)

Condensed Statements of Capital

Condensed Statements of Capitalization (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Beginning balance	$ 4,723	$ 5,420
Net income	63	79
Separation of PGS equity from TEC		(992)
Equity contributions from Parent	300	100
Dividends to Parent	(85)	(91)
Other		1
Ending balance	5,001	4,517
Common Stock [Member]
Beginning balance	$ 4,505	$ 5,075
Beginning balance	10	10
Separation of PGS equity from TEC		$ (871)
Equity contributions from Parent	$ 300	100
Other		1
Ending balance	$ 4,805	$ 4,305
Ending balance	10	10
Retained Earnings [Member]
Beginning balance	$ 219	$ 346
Net income	63	79
Separation of PGS equity from TEC		(121)
Dividends to Parent	(85)	(91)
Ending balance	197	213
Accumulated Other Comprehensive Loss [Member]
Beginning balance	(1)	(1)
Ending balance	$ (1)	$ (1)

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	1. Summary of Significant Accounting Policies See TEC’s Annual Report on Form 10-K for the year ended December 31, 2023 for a complete discussion of accounting policies. The significant accounting policies for TEC include: Principles of Consolidation and Basis of Presentation TEC is comprised of the electric division, referred to as Tampa Electric, and prior to January 1, 2023, the natural gas division, referred to as PGS. Prior to April 1, 2024, TEC was a wholly owned subsidiary of TECO Energy, which is an indirect, wholly owned subsidiary of Emera. On April 1, 2024, TECO Energy distributed its investment in TEC to TECO Holdings, Inc. This new corporation is also an indirect, wholly owned subsidiary of Emera. In the opinion of management, the unaudited condensed financial statements include all adjustments that are of a recurring nature and necessary to state fairly the financial position of TEC as of March 31, 2024 and December 31, 2023, and the results of operations and cash flows for the periods ended March 31, 2024 and 2023. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results that can be expected for the entire fiscal year ending December 31, 2024. The use of estimates is inherent in the preparation of financial statements in accordance with U.S. GAAP. Actual results could differ from these estimates. The year-end Condensed Balance Sheet was derived from audited financial statements; however, this quarterly report on Form 10-Q does not include all year-end disclosures required for an annual report on Form 10-K by U.S. GAAP. Receivables and Allowance for Credit Losses Receivables on the Condensed Balance Sheets include receivables from contracts with customers, which consist of services to residential, commercial, industrial and other customers, totaling $ 243 million and $ 284 million as of March 31, 2024 and December 31, 2023, respectively. An allowance for credit losses is established based on TEC’s collection experience and reasonable and supportable forecasts that affect the collectibility of the reported amount. Circumstances that could affect TEC’s estimates of credit losses include, but are not limited to, customer credit issues, generating fuel prices, customer deposits and general economic conditions. Accounts are reserved in the allowance or written off once they are deemed to be uncollectible. As of March 31, 2024 and December 31, 2023, unbilled revenues of $ 67 million and $ 63 million, respectively, are included in the “Receivables” line item on the Condensed Balance Sheets. Accounting for Franchise Fees and Gross Receipts TEC is allowed to recover certain costs from customers on a dollar-for-dollar basis through rates approved by the FPSC. The amounts included in customers’ bills for franchise fees and gross receipt taxes are included as revenues on the Condensed Statements of Income. Franchise fees and gross receipt taxes payable by TEC are included as an expense on the Condensed Statements of Income in “Taxes, other than income”. These amounts totaled $ 26 million and $ 28 million for the three months ended March 31, 2024 and 2023, respectively.

New Accounting Pronouncements

New Accounting Pronouncements	3 Months Ended
	Mar. 31, 2024
Accounting Changes and Error Corrections [Abstract]
New Accounting Pronouncements	2. New Accounting Pronouncements Reportable Segment Disclosures In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures. The change in the standard improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The changes improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. The guidance will be effective for annual reporting periods beginning after December 15, 2023, and for interim periods beginning after December 15, 2024. Early adoption is permitted. The standard will be applied retrospectively. TEC is currently evaluating the impact of adoption of the standard on its financial statement disclosures. Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures. The standard enhances the transparency, decision usefulness and effectiveness of income tax disclosures by requiring consistent categories and greater disaggregation of information in the reconciliation of income taxes computed using the enacted statutory income tax rate to the actual income tax provision and effective income tax rate, as well as the disaggregation of income taxes paid (refunded) by jurisdiction. The standard also requires disclosure of income (loss) before provision for income taxes and income tax expense (benefit) in accordance with U.S. Securities and Exchange Commission (SEC) Regulation S-X 210.4-08(h), Rules of General Application – General Notes to Financial Statements: Income Tax Expense, and the removal of disclosures no longer considered cost beneficial or relevant. The guidance will be effective for annual reporting periods beginning after December 15, 2024. Early adoption is permitted. The standard will be applied on a prospective basis, with retrospective application permitted. TEC is currently evaluating the impact of adoption of the standard on its financial statement disclosures.

Regulatory

Regulatory	3 Months Ended
	Mar. 31, 2024
Regulated Operations [Abstract]
Regulatory	3. Regulatory Tampa Electric Base Rates On April 2, 2024, Tampa Electric requested a base rate increase, reflecting a revenue requirement increase of $ 297 million, effective January 1, 2025, and additional adjustments of $ 100 million and $ 72 million for 2026 and 2027, respectively. Tampa Electric’s proposed rates include recovery of solar generation projects, energy storage capacity, a more resilient and modernized energy control center, and numerous other resiliency and reliability projects. A decision by the FPSC is expected by the end of 2024. Tampa Electric Mid-Course Adjustment to Fuel Recovery On April 2, 2024, Tampa Electric requested a mid-course adjustment to its fuel and capacity charges, reflecting a $ 137 million reduction over 12 months, from June 2024 through May 2025. The requested reduction is due to a significant decrease in actual and projected 2024 natural gas prices since Tampa Electric submitted its projected 2024 costs in the fall of 2023. On May 7, 2024, the FPSC voted to approve the mid-course adjustment. Regulatory Assets and Liabilities Details of the regulatory assets and liabilities are presented in the following table: Regulatory Assets and Liabilities (millions) March 31, 2024 December 31, 2023 Regulatory assets: Regulatory tax asset (1) $ 113 $ 112 Cost-recovery clauses (2) 46 94 Capital cost recovery for early retired assets (3) 514 507 Postretirement benefits (4) 236 236 Storm reserve (5) 2 7 Other 30 32 Total regulatory assets 941 988 Less: Current portion 109 161 Long-term regulatory assets $ 832 $ 827 Regulatory liabilities: Regulatory tax liability (6) $ 474 $ 477 Cost-recovery clauses - deferred balances (2) 14 20 Accumulated reserve - cost of removal (7) 300 271 Other 33 27 Total regulatory liabilities 821 795 Less: Current portion 91 94 Long-term regulatory liabilities $ 730 $ 701 (1) The regulatory tax asset is primarily associated with the depreciation and recovery of AFUDC-equity. This asset does not earn a return but rather is included in the capital structure, which is used in the calculation of the weighted cost of capital used to determine revenue requirements. It will be recovered over the expected life of the related assets. (2) These assets and liabilities are related to FPSC clauses and riders, primarily related to the fuel clause and the decrease in natural gas prices. They are recovered or refunded through cost-recovery mechanisms approved by the FPSC on a dollar-for-dollar basis in a subsequent period. (3) This asset is related to the remaining net book value of Big Bend Units 1 through 3 and meter assets that were retired. The balance earns a rate of return as permitted by the FPSC and will be recovered as a separate line item on customer bills for a period of 15 years , beginning in 2022 through 2036. (4) This asset is related to the deferred costs of postretirement benefits and it is amortized over the remaining service life of plan participants. Deferred costs of postretirement benefits that are included in expense are recognized as cost of service for rate-making purposes as permitted by the FPSC. (5) This asset is related to storm restoration cost recovery. The regulatory asset is included in rate base and earns interest as permitted by the FPSC. (6) The regulatory tax liability is primarily related to the revaluation of TEC’s deferred income tax balances recorded on December 31, 2017 at the lower corporate income tax rate due to U.S. tax reform. The liability related to the revaluation of the deferred income tax balances is amortized and returned to customers through rate reductions or other revenue offsets based on IRS regulations and the settlement agreement for tax reform benefits approved by the FPSC. (7) This item represents the non-ARO cost of removal in the accumulated reserve for depreciation. AROs are costs for legally required removal of property, plant and equipment. Non-ARO cost of removal represents estimated funds received from customers through depreciation rates to cover future non-legally required cost of removal of property, plant and equipment, net of salvage value upon retirement, which reduces rate base for ratemaking purposes. This liability is reduced as costs of removal are incurred.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	4. Income Taxes Inflation Reduction Act On August 16, 2022, the Inflation Reduction Act was signed into legislation and includes numerous tax incentives for clean energy, such as the extension and modification of existing investment and production tax credits for projects placed in service through 2024, the expansion of ITC for energy storage technology beginning in 2023 and introduces new technology-neutral clean energy related credits beginning in 2025. TEC has determined that electing production tax credits for its solar plants placed in service through 2024 will be more beneficial for customers compared to ITCs and has recorded a regulatory lia bility in recognition of its obligation to pass the tax benefits to customers of $ 29 million and $ 23 million as of March 31, 2024 and December 31, 2023, respectively. Income Tax Expense TEC is included in a consolidated U.S. federal income tax return with EUSHI and its subsidiaries. TEC’s income tax expense is based upon a standalone return method, modified for the benefits-for-loss allocation in accordance with 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 three months ended March 31, 2024 and 2023 were 11.3 % and 16.0 %, respectively. The March 31, 2024 and 2023 effective tax rates are an estimate of the annual effective income tax rate. TEC’s effective tax rate for the three months ended March 31, 2024 and 2023 differed from the statutory rate principally due to production tax credits and amortization of the regulatory tax liability resulting from tax reform. The effective tax rate for the three months ended March 31, 2024 is lower compared to the same period in 2023 primarily due to production tax credits. See Note 3 for further information regarding the regulatory tax liability. Unrecognized Tax Benefits As of March 31, 2024 and December 31, 2023, the amount of unrecognized tax benefits was $ 10 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	3 Months Ended
	Mar. 31, 2024
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 March 31, 2024 2023 2024 2023 Components of net periodic benefit cost Service cost $ 4 $ 4 $ 0 $ 0 Interest cost 9 9 2 2 Expected return on assets ( 14 ) ( 14 ) 0 0 Amortization of actuarial loss (gain) 2 1 ( 1 ) 0 Net periodic benefit cost $ 1 $ 0 $ 1 $ 2 TEC’s portion of the net periodic benefit cost for the three months ended March 31, 2024 and 2023, respectively, was $ 0 million and $ 0 million for pension benefits, and $ 1 million and $ 1 million for other postretirement benefits. TEC’s portion of net periodic benefit costs for pension and other benefits is included as an expense on the Condensed Statements of Income in “Operations & maintenance”. TECO Energy assumed a long-term EROA of 7.05 % and a discount rate of 5.27 % for pension benefits under its qualified pension plan for 2024. For TECO Energy’s other postretirement benefits, TECO Energy used a discount rate of 5.28 % for 2024. TECO Energy made contributions of $ 4 million and $ 4 million to its qualified pension plan in the three months ended March 31, 2024 and 2023, respectively. TEC’s portion of these contributions was $ 2 million and $ 3 million, respectively. TECO Energy expects to make contributions to the pension plan of $ 12 million for the remainder of 2024. TEC estimates its portion of the remaining 2024 contribution to be $ 8 million. Included in the benefit cost discussed above, for the three months ended March 31, 2024, $ 1 million of unamortized prior service benefits and costs and actuarial gains and losses were reclassified by TEC from regulatory assets to the Condensed Statement of Income, compared with $ 0 million for the three months ended March 31, 2023, respectively.

Short-Term Debt

Short-Term Debt	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Short-Term Debt	6. Short-Term Debt Details of TEC’s short-term borrowings are presented in the following table: March 31, 2024 December 31, 2023 Borrowings Borrowings Letters Borrowings Borrowings Letters Credit Outstanding - Outstanding - of Credit Credit Outstanding - Outstanding - of Credit (millions) Facilities Credit Facilities (1) Commercial Paper (1) Outstanding Facilities Credit Facilities (1) Commercial Paper (1) Outstanding Credit facility (2) $ 800 $ 0 $ 56 $ 1 $ 800 $ 0 $ 706 $ 1 1-year term facility (3) 0 0 0 0 200 0 0 0 1-year term facility (4) 200 0 0 0 200 0 0 0 Total $ 1,000 $ 0 $ 56 $ 1 $ 1,200 $ 0 $ 706 $ 1 (1) Borrowings outstanding are reported as notes payable. (2) This credit facility was planned to mature on December 17, 2026. On April 1, 2024, TEC amended the credit facility agreement to extend the maturity date to December 1, 2028 . TEC also has an active commercial paper program for up to $ 800 million, of which the full amount outstanding is backed by TEC’s credit facility. The amount of commercial paper issued results in an equal amount of its credit facility being considered drawn and unavailable. On January 30, 2024 , TEC completed a sale of $ 500 million aggregate principal amount of 4.90 % Notes due March 1, 2029 . TEC used the net proceeds from this offering for the repayment of a portion of the borrowings outstanding under the credit facility. Therefore, $ 497 million of borrowings outstanding under the credit facility were reclassified as long-term debt on the Balance Sheet as of December 31, 2023. (3) On March 1, 2023, TEC entered into a 1-year term facility that matured on February 28, 2024 . (4) On April 3, 2023, TEC entered into a 1-year term facility that matured on April 1, 2024 . At March 31, 2024, these credit facilities required a commitment fee of 12.5 basis points. The weighted-average interest rate on borrowings outstanding under the credit facilities and commercial paper at March 31, 2024 and December 31, 2023 was 5.48 % and 5.68 %, respectively. As of March 31, 2024 and December 31, 2023, the carrying value of TEC’s short-term debt was not materially different from the fair value due to the short-term nature of the instruments and because the stated rates approximate market rates. The fair value of TEC’s short-term debt is determined using Level 2 measurements.

Long-Term Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Long-Term Debt	7. Long-Term Debt Fair Value of Long-Term Debt At March 31, 2024, TEC’s long-term debt, including the current portion, had a carrying amount of $ 4,233 million and an estimated fair market value of $ 3,746 million. At December 31, 2023, long-term debt had a carrying amount of $ 4,233 million and an estimated fair market value of $ 3,831 million. The fair value of the debt securities is determined using Level 2 measurements. TEC 4.90% Notes due 2029 On January 30, 2024 , TEC completed a sale of $ 500 million aggregate principal amount of 4.90 % Notes due March 1, 2029 (the 2029 Notes). Prior to February 1, 2029, in the case of the 2029 Notes, TEC may redeem all or any part of such series of Notes at its option at a redemption price equal to the greater of (i) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the redemption date on a semi-annual basis at the Treasury Rate plus 15 basis points less interest accrued to the date of redemption or (ii) 100 % of the principal amount of the notes to be redeemed, plus, in either case, accrued and unpaid interest thereon to the redemption date. On or after February 1, 2029, TEC may redeem the 2029 Notes, in whole or in part, at any time and from time to time, at a redemption price equal to 100 % of the principal amount of the notes being redeemed plus accrued and unpaid interest thereon to the redemption date. TEC used the net proceeds from this offering for the repayment of a portion of the borrowings outstanding under the credit facility. Therefore, $ 497 million of borrowings outstanding under the credit facility were reclassified from notes payable to long-term debt on the Balance Sheet as of December 31, 2023.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	8. Commitments and Contingencies Legal Contingencies From time to time, TEC and its subsidiaries are involved in various legal, tax and regulatory proceedings before various courts, regulatory commissions and governmental agencies in the ordinary course of business. Where appropriate, accruals are made in accordance with accounting standards for contingencies to provide for matters that are probable of resulting in an estimable loss. Long-Term Commitments TEC has commitments for various purchases as disclosed below, including payment obligations under contractual agreements for fuel, fuel transportation and power purchases that are recovered from customers under regulatory clauses. The following is a schedule of future payments under PPAs, minimum lease payments with non-cancelable lease terms in excess of one year, and other net purchase obligations/commitments at March 31, 2024: Fuel Long-term Capital and Service (millions) Transportation Projects Gas Supply Agreements Other (1) Total 2024 $ 103 $ 601 $ 162 $ 9 $ 8 $ 883 2025 131 98 69 22 8 328 2026 130 58 17 23 2 230 2027 130 6 4 22 2 164 2028 102 0 1 17 1 121 Thereafter 840 0 0 33 75 948 Total future minimum payments $ 1,436 $ 763 $ 253 $ 126 $ 96 $ 2,674 (1) Other includes contractual obligations under operating leases, demand side management and purchased power agreements. Debt Covenants TEC must meet certain financial tests, including a debt to capital ratio, as defined in the applicable debt agreements and has certain restrictive covenants in specific agreements and debt instruments. At March 31, 2024, TEC was in compliance with all required covenants.

Revenue

Revenue	3 Months Ended
	Mar. 31, 2024
Revenues [Abstract]
Revenue	9. Revenue The following disaggregates TEC’s revenue by major source: (millions) Three months ended March 31, 2024 2023 Electric revenue Residential $ 304 $ 325 Commercial 155 170 Industrial 40 46 Regulatory deferrals ( 23 ) ( 63 ) Unbilled revenue 3 3 Other (1) 69 71 Total revenue $ 548 $ 552 (1) Other electric revenue includes sales to public authorities, off-system sales to other utilities and various other items. Remaining Performance Obligations Remaining performance obligations primarily represent lighting contracts with fixed contract terms. As of March 31, 2024 and December 31, 2023, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $ 78 million and $ 78 million, respectively. As allowed under ASC 606, Revenue from Contracts with Customers, these amounts exclude contracts with an original expected length of one year or less and variable amounts for which TEC recognizes revenue at the amount to which it has the right to invoice for services performed. TEC expects to recognize revenue for the remaining performance obligations through 2044 .

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Principles of Consolidation and Basis of Presentation	Principles of Consolidation and Basis of Presentation TEC is comprised of the electric division, referred to as Tampa Electric, and prior to January 1, 2023, the natural gas division, referred to as PGS. Prior to April 1, 2024, TEC was a wholly owned subsidiary of TECO Energy, which is an indirect, wholly owned subsidiary of Emera. On April 1, 2024, TECO Energy distributed its investment in TEC to TECO Holdings, Inc. This new corporation is also an indirect, wholly owned subsidiary of Emera. In the opinion of management, the unaudited condensed financial statements include all adjustments that are of a recurring nature and necessary to state fairly the financial position of TEC as of March 31, 2024 and December 31, 2023, and the results of operations and cash flows for the periods ended March 31, 2024 and 2023. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results that can be expected for the entire fiscal year ending December 31, 2024. The use of estimates is inherent in the preparation of financial statements in accordance with U.S. GAAP. Actual results could differ from these estimates. The year-end Condensed Balance Sheet was derived from audited financial statements; however, this quarterly report on Form 10-Q does not include all year-end disclosures required for an annual report on Form 10-K by U.S. GAAP.
Receivables and Allowance for Credit Losses	Receivables and Allowance for Credit Losses Receivables on the Condensed Balance Sheets include receivables from contracts with customers, which consist of services to residential, commercial, industrial and other customers, totaling $ 243 million and $ 284 million as of March 31, 2024 and December 31, 2023, respectively. An allowance for credit losses is established based on TEC’s collection experience and reasonable and supportable forecasts that affect the collectibility of the reported amount. Circumstances that could affect TEC’s estimates of credit losses include, but are not limited to, customer credit issues, generating fuel prices, customer deposits and general economic conditions. Accounts are reserved in the allowance or written off once they are deemed to be uncollectible. As of March 31, 2024 and December 31, 2023, unbilled revenues of $ 67 million and $ 63 million, respectively, are included in the “Receivables” line item on the Condensed Balance Sheets.
Accounting for Franchise Fees and Gross Receipts	Accounting for Franchise Fees and Gross Receipts TEC is allowed to recover certain costs from customers on a dollar-for-dollar basis through rates approved by the FPSC. The amounts included in customers’ bills for franchise fees and gross receipt taxes are included as revenues on the Condensed Statements of Income. Franchise fees and gross receipt taxes payable by TEC are included as an expense on the Condensed Statements of Income in “Taxes, other than income”. These amounts totaled $ 26 million and $ 28 million for the three months ended March 31, 2024 and 2023, respectively.

Regulatory (Tables)

Regulatory (Tables)	3 Months Ended
	Mar. 31, 2024
Regulated Operations [Abstract]
Schedule of Regulatory Assets and Regulatory Liabilities	Details of the regulatory assets and liabilities are presented in the following table: Regulatory Assets and Liabilities (millions) March 31, 2024 December 31, 2023 Regulatory assets: Regulatory tax asset (1) $ 113 $ 112 Cost-recovery clauses (2) 46 94 Capital cost recovery for early retired assets (3) 514 507 Postretirement benefits (4) 236 236 Storm reserve (5) 2 7 Other 30 32 Total regulatory assets 941 988 Less: Current portion 109 161 Long-term regulatory assets $ 832 $ 827 Regulatory liabilities: Regulatory tax liability (6) $ 474 $ 477 Cost-recovery clauses - deferred balances (2) 14 20 Accumulated reserve - cost of removal (7) 300 271 Other 33 27 Total regulatory liabilities 821 795 Less: Current portion 91 94 Long-term regulatory liabilities $ 730 $ 701 (1) The regulatory tax asset is primarily associated with the depreciation and recovery of AFUDC-equity. This asset does not earn a return but rather is included in the capital structure, which is used in the calculation of the weighted cost of capital used to determine revenue requirements. It will be recovered over the expected life of the related assets. (2) These assets and liabilities are related to FPSC clauses and riders, primarily related to the fuel clause and the decrease in natural gas prices. They are recovered or refunded through cost-recovery mechanisms approved by the FPSC on a dollar-for-dollar basis in a subsequent period. (3) This asset is related to the remaining net book value of Big Bend Units 1 through 3 and meter assets that were retired. The balance earns a rate of return as permitted by the FPSC and will be recovered as a separate line item on customer bills for a period of 15 years , beginning in 2022 through 2036. (4) This asset is related to the deferred costs of postretirement benefits and it is amortized over the remaining service life of plan participants. Deferred costs of postretirement benefits that are included in expense are recognized as cost of service for rate-making purposes as permitted by the FPSC. (5) This asset is related to storm restoration cost recovery. The regulatory asset is included in rate base and earns interest as permitted by the FPSC. (6) The regulatory tax liability is primarily related to the revaluation of TEC’s deferred income tax balances recorded on December 31, 2017 at the lower corporate income tax rate due to U.S. tax reform. The liability related to the revaluation of the deferred income tax balances is amortized and returned to customers through rate reductions or other revenue offsets based on IRS regulations and the settlement agreement for tax reform benefits approved by the FPSC. (7) This item represents the non-ARO cost of removal in the accumulated reserve for depreciation. AROs are costs for legally required removal of property, plant and equipment. Non-ARO cost of removal represents estimated funds received from customers through depreciation rates to cover future non-legally required cost of removal of property, plant and equipment, net of salvage value upon retirement, which reduces rate base for ratemaking purposes. This liability is reduced as costs of removal are incurred.

Employee Postretirement Benef_2

Employee Postretirement Benefits (Tables)	3 Months Ended
	Mar. 31, 2024
TECO Energy [Member]
Schedule of Net Periodic Benefit Cost	The following table presents detail related to TECO Energy’s periodic benefit cost for pension and other postretirement benefits. Amounts disclosed for TECO Energy’s pension benefits include the amounts related to its qualified pension plan and non-qualified, non-contributory SERP and Restoration Plan. TECO Energy Benefit Cost (millions) Pension Benefits Other Postretirement Benefits Three months ended March 31, 2024 2023 2024 2023 Components of net periodic benefit cost Service cost $ 4 $ 4 $ 0 $ 0 Interest cost 9 9 2 2 Expected return on assets ( 14 ) ( 14 ) 0 0 Amortization of actuarial loss (gain) 2 1 ( 1 ) 0 Net periodic benefit cost $ 1 $ 0 $ 1 $ 2

Short-Term Debt (Tables)

Short-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Short-Term Debt Credit Facilities	Details of TEC’s short-term borrowings are presented in the following table: March 31, 2024 December 31, 2023 Borrowings Borrowings Letters Borrowings Borrowings Letters Credit Outstanding - Outstanding - of Credit Credit Outstanding - Outstanding - of Credit (millions) Facilities Credit Facilities (1) Commercial Paper (1) Outstanding Facilities Credit Facilities (1) Commercial Paper (1) Outstanding Credit facility (2) $ 800 $ 0 $ 56 $ 1 $ 800 $ 0 $ 706 $ 1 1-year term facility (3) 0 0 0 0 200 0 0 0 1-year term facility (4) 200 0 0 0 200 0 0 0 Total $ 1,000 $ 0 $ 56 $ 1 $ 1,200 $ 0 $ 706 $ 1 (1) Borrowings outstanding are reported as notes payable. (2) This credit facility was planned to mature on December 17, 2026. On April 1, 2024, TEC amended the credit facility agreement to extend the maturity date to December 1, 2028 . TEC also has an active commercial paper program for up to $ 800 million, of which the full amount outstanding is backed by TEC’s credit facility. The amount of commercial paper issued results in an equal amount of its credit facility being considered drawn and unavailable. On January 30, 2024 , TEC completed a sale of $ 500 million aggregate principal amount of 4.90 % Notes due March 1, 2029 . TEC used the net proceeds from this offering for the repayment of a portion of the borrowings outstanding under the credit facility. Therefore, $ 497 million of borrowings outstanding under the credit facility were reclassified as long-term debt on the Balance Sheet as of December 31, 2023. (3) On March 1, 2023, TEC entered into a 1-year term facility that matured on February 28, 2024 . (4) On April 3, 2023, TEC entered into a 1-year term facility that matured on April 1, 2024 .

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2024
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 March 31, 2024: Fuel Long-term Capital and Service (millions) Transportation Projects Gas Supply Agreements Other (1) Total 2024 $ 103 $ 601 $ 162 $ 9 $ 8 $ 883 2025 131 98 69 22 8 328 2026 130 58 17 23 2 230 2027 130 6 4 22 2 164 2028 102 0 1 17 1 121 Thereafter 840 0 0 33 75 948 Total future minimum payments $ 1,436 $ 763 $ 253 $ 126 $ 96 $ 2,674 (1) Other includes contractual obligations under operating leases, demand side management and purchased power agreements.

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2024
Revenue Recognition [Abstract]
Summary of Disaggregates TEC Revenue by Major Source	The following disaggregates TEC’s revenue by major source: (millions) Three months ended March 31, 2024 2023 Electric revenue Residential $ 304 $ 325 Commercial 155 170 Industrial 40 46 Regulatory deferrals ( 23 ) ( 63 ) Unbilled revenue 3 3 Other (1) 69 71 Total revenue $ 548 $ 552 (1) Other electric revenue includes sales to public authorities, off-system sales to other utilities and various other items.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Summary Of Significant Accounting Policies [Line Items]
Receivables from contracts with customers	$ 243		$ 284
Unbilled revenues	67		$ 63
Franchise fees and gross receipts taxes	$ 26	$ 28

Regulatory - Additional Informa

Regulatory - Additional Information (Detail) - USD ($) $ in Millions				12 Months Ended
	Jan. 31, 2027	Jan. 31, 2026	Jan. 31, 2025	May 31, 2025	Mar. 31, 2024	Dec. 31, 2023
Public Utilities General Disclosures [Line Items]
Accumulated depreciation					$ 3,476	$ 3,443
Scenario Forecast [Member]
Public Utilities General Disclosures [Line Items]
Effect of base rate adjustment on revenue	$ 72	$ 100	$ 297
Adjustments to fuel and capacity charges reduction over period				$ 137

Regulatory - Schedule of Regula

Regulatory - Schedule of Regulatory Assets and Regulatory Liabilities (Detail) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Regulatory assets:
Regulatory assets	$ 941	$ 988
Less: Current portion	109	161
Long-term regulatory assets	832	827
Regulatory liabilities:
Regulatory liabilities	821	795
Less: Current portion	91	94
Long-term regulatory liabilities	730	701
Regulatory Tax Asset [Member]
Regulatory assets:
Regulatory assets	113	112
Cost-Recovery Clauses [Member]
Regulatory assets:
Regulatory assets	46	94
Capital Cost Recovery for Early Retired Assets [Member]
Regulatory assets:
Regulatory assets	514	507
Postretirement Benefits [Member]
Regulatory assets:
Regulatory assets	236	236
Storm Reserve [Member]
Regulatory assets:
Regulatory assets	2	7
Other [Member]
Regulatory assets:
Regulatory assets	30	32
Regulatory Tax Liability [Member] | Non-Current Liabilities [Member]
Regulatory liabilities:
Regulatory liabilities	474	477
Cost-recovery Clauses - Deferred Balances [Member]
Regulatory liabilities:
Regulatory liabilities	14	20
Accumulated Reserve - Cost of Removal [Member]
Regulatory liabilities:
Regulatory liabilities	300	271
Other [Member]
Regulatory liabilities:
Regulatory liabilities	$ 33	$ 27

Regulatory - Schedule of Regu_2

Regulatory - Schedule of Regulatory Assets and Regulatory Liabilities (Parenthetical) (Detail)	3 Months Ended
	Mar. 31, 2024
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	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Income Taxes [Line Items]
Regulatory liability due to obligation to transfer tax rate reduction expense benefit	$ 29		$ 23
Effective tax rate	11.30%	16%
Unrecognized tax benefit that would reduce effective tax rate	$ 10		$ 10

Employee Postretirement Benef_3

Employee Postretirement Benefits - Schedule of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pension Benefits [Member]
Amortization of:
Net periodic benefit cost	$ 0	$ 0
Other Postretirement Benefits [Member]
Amortization of:
Net periodic benefit cost	1	1
TECO Energy [Member] | Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	4	4
Interest cost	9	9
Expected return on assets	(14)	(14)
Amortization of:
Amortization of actuarial loss (gain)	2	1
Net periodic benefit cost	1	0
TECO Energy [Member] | Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	0	0
Interest cost	2	2
Expected return on assets	0	0
Amortization of:
Amortization of actuarial loss (gain)	(1)	0
Net periodic benefit cost	$ 1	$ 2

Employee Postretirement Benef_4

Employee Postretirement Benefits - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2024
Defined Benefit Plan Disclosure [Line Items]
Reclassification of regulatory assets to net income as part of periodic benefit cost	$ 1	$ 0
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	$ 0	0
Employer contributions	2	3
Pension Benefits [Member] | Scenario Forecast [Member]
Defined Benefit Plan Disclosure [Line Items]
Employer contributions			$ 8
Pension Benefits [Member] | TECO Energy [Member]
Defined Benefit Plan Disclosure [Line Items]
Net periodic benefit cost	$ 1	0
Discount rate	5.27%
Employer contributions	$ 4	4
Pension Benefits [Member] | TECO Energy [Member] | Scenario Forecast [Member]
Defined Benefit Plan Disclosure [Line Items]
Employer contributions			$ 12
Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Net periodic benefit cost	1	1
Other Postretirement Benefits [Member] | TECO Energy [Member]
Defined Benefit Plan Disclosure [Line Items]
Net periodic benefit cost	$ 1	$ 2
Discount rate	5.28%

Short-Term Debt - Credit Facili

Short-Term Debt - Credit Facilities (Detail) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Line Of Credit Facility [Line Items]
Credit Facilities	$ 1,000,000,000	$ 1,200,000,000
Borrowings Outstanding	56,000,000	209,000,000
Letters of Credit Outstanding	1,000,000	1,000,000
Credit Facilities [Member]
Line Of Credit Facility [Line Items]
Borrowings Outstanding	0	0
Commercial Paper [Member]
Line Of Credit Facility [Line Items]
Borrowings Outstanding	56,000,000	706,000,000
Credit Facility [Member] | December 1, 2028 [Member]
Line Of Credit Facility [Line Items]
Credit Facilities	800,000,000	800,000,000
Letters of Credit Outstanding	1,000,000	1,000,000
Credit Facility [Member] | December 1, 2028 [Member] | Credit Facilities [Member]
Line Of Credit Facility [Line Items]
Borrowings Outstanding	0	0
Credit Facility [Member] | December 1, 2028 [Member] | Commercial Paper [Member]
Line Of Credit Facility [Line Items]
Borrowings Outstanding	56,000,000	706,000,000
1-year Term Facility [Member] | February 28, 2024 [Member]
Line Of Credit Facility [Line Items]
Credit Facilities	0	200,000,000
Letters of Credit Outstanding	0	0
1-year Term Facility [Member] | February 28, 2024 [Member] | Credit Facilities [Member]
Line Of Credit Facility [Line Items]
Borrowings Outstanding	0	0
1-year Term Facility [Member] | February 28, 2024 [Member] | Commercial Paper [Member]
Line Of Credit Facility [Line Items]
Borrowings Outstanding	0	0
1-year Term Facility [Member] | April 1, 2024 [Member]
Line Of Credit Facility [Line Items]
Credit Facilities	200,000,000	200,000,000
Letters of Credit Outstanding	0	0
1-year Term Facility [Member] | April 1, 2024 [Member] | Credit Facilities [Member]
Line Of Credit Facility [Line Items]
Borrowings Outstanding	0	0
1-year Term Facility [Member] | April 1, 2024 [Member] | Commercial Paper [Member]
Line Of Credit Facility [Line Items]
Borrowings Outstanding	$ 0	$ 0

Short-Term Debt - Credit Faci_2

Short-Term Debt - Credit Facilities (Parenthetical) (Detail) - USD ($)				3 Months Ended	12 Months Ended
	Jan. 30, 2024	Apr. 03, 2023	Mar. 01, 2023	Mar. 31, 2024	Dec. 31, 2023
Line Of Credit Facility [Line Items]
Debt instrument, offering date	Jan. 30, 2024
Aggregate principal amount issued	$ 500,000,000
Stated interest rate	4.90%
Debt instrument maturity date	Mar. 01, 2029
Credit Facility [Member]
Line Of Credit Facility [Line Items]
Credit facility maturity date				Dec. 01, 2028	Dec. 01, 2028
Credit Facility [Member] | Long-Term Debt [Member]
Line Of Credit Facility [Line Items]
Borrowings outstanding	$ 497,000,000
1-year Term Facility [Member]
Line Of Credit Facility [Line Items]
Credit facility maturity date		Apr. 01, 2024	Feb. 28, 2024
Maximum [Member] | Commercial Paper Program [Member]
Line Of Credit Facility [Line Items]
Commercial paper issued				$ 800,000,000

Short-Term Debt - Additional In

Short-Term Debt - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Line Of Credit Facility [Line Items]
Commitment fees, percentage	0.125%
Weighted-average interest rate	5.48%	5.68%

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Detail) - USD ($) $ in Millions	Jan. 30, 2024	Mar. 31, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Long-term debt		$ 4,233	$ 4,233
Estimated fair value		$ 3,746	$ 3,831
Aggregate principal amount issued	$ 500
Stated interest rate	4.90%
Debt instrument maturity date	Mar. 01, 2029
Debt instrument, offering date	Jan. 30, 2024
4.90% Notes [Member]
Debt Instrument [Line Items]
Debt instrument, maturity year	2029
Aggregate principal amount issued	$ 500
Stated interest rate	4.90%
Debt instrument maturity date	Mar. 01, 2029
Redeemable principal amount percentage	100%
Basis spread on federal funds rate	15%
Redeemable principal amount percentage	100%
Debt instrument, offering date	Jan. 30, 2024
4.90% Notes [Member] | Long-Term Debt [Member] | Credit Facility [Member]
Debt Instrument [Line Items]
Borrowings outstanding	$ 497

Commitments and Contingencies -

Commitments and Contingencies - Schedule of Long-term Commitments (Detail) $ in Millions	Mar. 31, 2024 USD ($)
Other Commitments [Line Items]
2024	$ 883
2025	328
2026	230
2027	164
2028	121
Thereafter	948
Total future minimum payments	2,674
Transportation [Member]
Other Commitments [Line Items]
2024	103
2025	131
2026	130
2027	130
2028	102
Thereafter	840
Total future minimum payments	1,436
Capital Projects [Member]
Other Commitments [Line Items]
2024	601
2025	98
2026	58
2027	6
2028	0
Thereafter	0
Total future minimum payments	763
Fuel and Gas Supply [Member]
Other Commitments [Line Items]
2024	162
2025	69
2026	17
2027	4
2028	1
Thereafter	0
Total future minimum payments	253
Long-term Service Agreements [Member]
Other Commitments [Line Items]
2024	9
2025	22
2026	23
2027	22
2028	17
Thereafter	33
Total future minimum payments	126
Other [Member]
Other Commitments [Line Items]
2024	8
2025	8
2026	2
2027	2
2028	1
Thereafter	75
Total future minimum payments	$ 96

Revenue - Summary of Disaggrega

Revenue - Summary of Disaggregates TEC Revenue by Major Source (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation Of Revenue [Line Items]
Total electric revenue	$ 548	$ 552
Total revenue	548	552
Residential [Member]
Disaggregation Of Revenue [Line Items]
Total electric revenue	304	325
Commercial [Member]
Disaggregation Of Revenue [Line Items]
Total electric revenue	155	170
Industrial [Member]
Disaggregation Of Revenue [Line Items]
Total electric revenue	40	46
Regulatory Deferrals [Member]
Disaggregation Of Revenue [Line Items]
Total electric revenue	(23)	(63)
Unbilled Revenue [Member]
Disaggregation Of Revenue [Line Items]
Total electric revenue	3	3
Other [Member]
Disaggregation Of Revenue [Line Items]
Total electric revenue	$ 69	$ 71

Revenue - Additional Informatio

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