News Release

TECO Energy announces dividend increase

TAMPA, April 18, 2001

TECO Energy’s quarterly dividend will increase from 33.5 cents per share to 34.5 cents per share, the company announced today.

This increase brings TECO Energy’s annual dividend rate to $1.38 per share, a 4-cent increase. The dividend is payable May 15 to shareholders of record as of May 1.

TECO Energy (NYSE:TE) is a diversified energy-related holding company headquartered in Tampa. Its principal businesses are Tampa Electric, Peoples Gas System, TECO Power Services, TECO Transport, TECO Coal, TECO Coalbed Methane, TECO Propane Ventures and TECO Solutions.