TE » Topics » Cash from Investing Activities

These excerpts taken from the TE 10-K filed Mar 5, 2009.

Cash from Investing Activities

Our investing activities in 2008 resulted in a net use of cash of $493 million, including capital expenditures totaling $590 million. We received in January 2008 $79 million representing the remaining net hedge settlement of 2007 oil price hedges associated with TECO Coal’s synthetic fuel program. Investing activity in 2008 also included $13 million received primarily from the unconsolidated Guatemalan affiliates, in addition to cash of $58 million repatriated from TECO Guatemala in December.

We expect capital spending for the next several years to be higher, primarily at Tampa Electric due to spending on combustion turbines to meet peak load needs, the completion of the third NOx control project, transmission and distribution system reliability improvements, rail unloading facilities for the delivery of coal and improvements to coal-fired unit reliability (see the Tampa Electric and Capital Expenditures sections).

Cash from Investing Activities

STYLE="margin-top:3px;margin-bottom:0px; text-indent:3%">Our investing activities in 2008 resulted in a net use of cash of $493 million, including capital expenditures totaling $590 million. We received in
January 2008 $79 million representing the remaining net hedge settlement of 2007 oil price hedges associated with TECO Coal’s synthetic fuel program. Investing activity in 2008 also included $13 million received primarily from the
unconsolidated Guatemalan affiliates, in addition to cash of $58 million repatriated from TECO Guatemala in December.

STYLE="margin-top:6px;margin-bottom:0px; text-indent:3%;padding-bottom:3px;line-height:95%; vertical-align:top">We expect capital spending for the next several years to be higher, primarily at Tampa Electric due
to spending on combustion turbines to meet peak load needs, the completion of the third NO
x control project, transmission and distribution system
reliability improvements, rail unloading facilities for the delivery of coal and improvements to coal-fired unit reliability (see the Tampa Electric and Capital Expenditures sections).

STYLE="margin-top:9px;margin-bottom:0px">Cash from Financing Activities

Our financing
activities in 2008 resulted in net use of cash of $45 million. Major items included Tampa Electric’s net reduction of $95 million in outstanding auction rate bonds, the issuance of $150 million of 10-year notes for Tampa Electric and PGS, and
the payment of $12 million in settlement of interest rate swaps associated with the 10-year note issuance (see the Financing Activity section). In addition, net borrowings under the bank credit facilities of Tampa Electric Company and TECO
Finance in 2008 increased $68 million. We paid $169 million in common stock dividends, and we received $22 million in proceeds from our dividend reinvestment program and exercises of stock options.

STYLE="margin-top:6px;margin-bottom:0px; text-indent:3%">In 2009, Tampa Electric Company expects to utilize equity contributions from TECO Energy, short-term borrowings under its credit facilities and a planned
long-term debt issuance to support its capital spending program and for normal working capital fluctuations. We have no significant debt maturities in 2009. See the Cash and Liquidity Outlook section below for a discussion of financing
expectations beyond 2009.

 


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These excerpts taken from the TE 10-K filed Feb 26, 2009.

Cash from Investing Activities

Our investing activities in 2008 resulted in a net use of cash of $493 million, including capital expenditures totaling $590 million. We received in January 2008 $79 million representing the remaining net hedge settlement of 2007 oil price hedges associated with TECO Coal’s synthetic fuel program. Investing activity in 2008 also included $13 million received primarily from the unconsolidated Guatemalan affiliates, in addition to cash of $58 million repatriated from TECO Guatemala in December.

We expect capital spending for the next several years to be higher, primarily at Tampa Electric due to spending on combustion turbines to meet peak load needs, the completion of the third NOx control project, transmission and distribution system reliability improvements, rail unloading facilities for the delivery of coal and improvements to coal-fired unit reliability (see the Tampa Electric and Capital Expenditures sections).

Cash from Investing Activities

STYLE="margin-top:3px;margin-bottom:0px; text-indent:3%">Our investing activities in 2008 resulted in a net use of cash of $493 million, including capital expenditures totaling $590 million. We received in
January 2008 $79 million representing the remaining net hedge settlement of 2007 oil price hedges associated with TECO Coal’s synthetic fuel program. Investing activity in 2008 also included $13 million received primarily from the
unconsolidated Guatemalan affiliates, in addition to cash of $58 million repatriated from TECO Guatemala in December.

STYLE="margin-top:6px;margin-bottom:0px; text-indent:3%;padding-bottom:3px;line-height:95%; vertical-align:top">We expect capital spending for the next several years to be higher, primarily at Tampa Electric due
to spending on combustion turbines to meet peak load needs, the completion of the third NO
x control project, transmission and distribution system
reliability improvements, rail unloading facilities for the delivery of coal and improvements to coal-fired unit reliability (see the Tampa Electric and Capital Expenditures sections).

STYLE="margin-top:9px;margin-bottom:0px">Cash from Financing Activities

Our financing
activities in 2008 resulted in net use of cash of $45 million. Major items included Tampa Electric’s net reduction of $95 million in outstanding auction rate bonds, the issuance of $150 million of 10-year notes for Tampa Electric and PGS, and
the payment of $12 million in settlement of interest rate swaps associated with the 10-year note issuance (see the Financing Activity section). In addition, net borrowings under the bank credit facilities of Tampa Electric Company and TECO
Finance in 2008 increased $68 million. We paid $169 million in common stock dividends, and we received $22 million in proceeds from our dividend reinvestment program and exercises of stock options.

STYLE="margin-top:6px;margin-bottom:0px; text-indent:3%">In 2009, Tampa Electric Company expects to utilize equity contributions from TECO Energy, short-term borrowings under its credit facilities and a planned
long-term debt issuance to support its capital spending program and for normal working capital fluctuations. We have no significant debt maturities in 2009. See the Cash and Liquidity Outlook section below for a discussion of financing
expectations beyond 2009.

 


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Table of Contents


These excerpts taken from the TE 10-K filed Feb 28, 2008.

Cash from Investing Activities

Our investing activities in 2007 resulted in a net use of cash of $28 million, including, among other items, capital expenditures totaling $494 million and the $405 million of gross proceeds from the sale of TECO Transport. In 2007, proceeds related to the sale of the 98% ownership interests in TECO Coal’s synthetic fuel facilities were eliminated due to the 67% phase-out of the tax credits. TECO Coal received in 2007 synfuel proceeds of $30 million that had been held in escrow for several years. In 2007 we placed hedges to protect against the phase-out of synfuel proceeds due to high oil prices and paid premiums of approximately $31 million. We received $42 million associated with the oil price hedges in 2007 with the remaining hedge net settlement of $79 million received in January 2008. Investing activity in 2007 also included $27.5 million received primarily from the unconsolidated Guatemalan affiliates, less $15 million of investments in a tax-deferred status.

We expect capital spending for the next several years to be higher, primarily at Tampa Electric due to spending on combustion turbines to meet peak load needs and the initial spending on its next baseload generating capacity addition, which is expected to be required in early 2013 (see the Tampa Electric and Capital Expenditures sections).

Cash from Investing Activities

STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%">Our investing activities in 2007 resulted in a net use of cash of $28 million, including, among other items, capital expenditures totaling $494 million
and the $405 million of gross proceeds from the sale of TECO Transport. In 2007, proceeds related to the sale of the 98% ownership interests in TECO Coal’s synthetic fuel facilities were eliminated due to the 67% phase-out of the tax credits.
TECO Coal received in 2007 synfuel proceeds of $30 million that had been held in escrow for several years. In 2007 we placed hedges to protect against the phase-out of synfuel proceeds due to high oil prices and paid premiums of approximately $31
million. We received $42 million associated with the oil price hedges in 2007 with the remaining hedge net settlement of $79 million received in January 2008. Investing activity in 2007 also included $27.5 million received primarily from the
unconsolidated Guatemalan affiliates, less $15 million of investments in a tax-deferred status.

We expect capital spending for the next
several years to be higher, primarily at Tampa Electric due to spending on combustion turbines to meet peak load needs and the initial spending on its next baseload generating capacity addition, which is expected to be required in early 2013 (see
the Tampa Electric and Capital Expenditures sections).

This excerpt taken from the TE 10-K filed Feb 28, 2007.

Cash from Investing Activities

Our investing activities in 2006 resulted in a net use of cash of $352 million, including, among other items, capital expenditures totaling $456 million and net asset sale proceeds of $100 million. Asset sales included $8 million from the sale of two unused steam turbines remaining from the TWG Merchant operations, $10 million from the sale of a district cooling plant in Miami, $57 million from the sale of the 98% ownership interests in TECO Coal’s synthetic fuel facilities, $15 million from the sale of land and $7 million from the sale of marine transportation equipment no longer used by TECO Transport.

We expect capital spending for the next several years to be higher, primarily at Tampa Electric. Our capital spending forecast currently does not include amounts for Tampa Electric’s next baseload generating capacity addition, which is expected to be required in early 2013 (see the Tampa Electric and Capital Expenditures sections).

We have completed our disposition of merchant and energy services assets, and do not anticipate significant additional proceeds from sales of this nature. Proceeds from investors in the synthetic fuel production facilities will conclude after 2007 when the non-conventional fuels tax credit program expires.

This excerpt taken from the TE 10-K filed Mar 7, 2006.

Cash from Investing Activities

Cash from investing activities of $37 million in 2005 included, among other items, capital investments totaling $295 million and net asset sale proceeds of $310 million. Asset sales included $90 million from the sale of the Commonwealth Chesapeake Power Station, $75 million from the sale of the Dell Power Station, $123 million from the sale of the 98% ownership interests in TECO Coal’s synthetic fuel facilities and $22 million from the sale of smaller, non-core assets. Cash from the release of previously restricted cash included the release of $20 million of previously restricted cash associated with the initial sale of a 49.5% ownership interest in TECO Coal’s synthetic fuel production facilities and $28 million of cash related to the Union and Gila River power stations.

Capital spending in 2005 was essentially at the maintenance levels required to support customer growth, system safety and reliability at Tampa Electric and Peoples Gas and maintenance levels at TECO Coal and TECO Transport for normal equipment replacements and capitalized maintenance expenditures. In addition, capital spending included expenditures for environmental compliance required under Tampa Electric’s consent decree (see the Environmental Compliance section).

We expect capital spending for the next several years to be higher than previously forecast primarily as a result of capital spending for Tampa Electric’s generation capacity additions, as well as customer service enhancements, improvements in reliability and capacity factors of its coal-fired units to mitigate the impact of high natural gas prices, and increased spending on distribution system reliability, based on lessons learned in recent hurricane seasons. Expectations of higher capital spending also include, to a lesser extent, capital to incrementally expand TECO Coal’s production (see the Capital Investments section).

This excerpt taken from the TE 8-K filed May 23, 2005.

Cash from Investing Activities

 

Cash from investing activities of $90 million in 2004 included, among other items, capital investments totaling $272 million and net asset sale proceeds of $315 million. Asset sales included $141 million from the sale of the Frontera and Hamakua power stations, $83 million from the sale of the TECO Solutions companies including Prior Energy and our interest in the propane business, and installments of $84 million (net of $35 million of escrowed funds) from the sale of the more than 90% membership interest in TECO Coal’s synthetic fuel facilities.

 

Following the completion of a substantial capital investment program in 2003, both for TWG’s merchant power facilities and for Tampa Electric’s Bayside Power Station, capital spending in 2004 was at the maintenance levels required to support customer growth and system safety and reliability at Tampa Electric and Peoples Gas and maintenance levels at TECO Coal and TECO Transport for normal equipment replacements and capitalized maintenance expenditures. For the next several years, we expect capital spending at similar levels supporting customer growth, safety and reliability, and renewal and replacement of capital in addition to the required capital expenditures for committed environmental projects at Tampa Electric (see Capital Investments section).

 

This excerpt taken from the TE 10-K filed Mar 15, 2005.

Cash from Investing Activities

 

Cash from investing activities of $90 million in 2004 included, among other items, capital investments totaling $272 million and net asset sale proceeds of $315 million. Asset sales included $141 million from the sale of the Frontera and Hamakua power stations, $83 million from the sale of the TECO Solutions companies including Prior Energy and our interest in the propane business, and installments of $84 million (net of $35 million of escrowed funds) from the sale of the more than 90% membership interest in TECO Coal’s synthetic fuel facilities.

 

Following the completion of a substantial capital investment program in 2003, both for TWG’s merchant power facilities and for Tampa Electric’s Bayside Power Station, capital spending in 2004 was at the maintenance levels required to support customer growth and system safety and reliability at Tampa Electric and Peoples Gas and maintenance levels at TECO Coal and TECO Transport for normal equipment replacements and capitalized maintenance expenditures. For the next several years, we expect capital spending at similar levels supporting customer growth, safety and reliability, and renewal and replacement of capital in addition to the required capital expenditures for committed environmental projects at Tampa Electric (see Capital Investments section).

 

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