News Release

TECO Energy declares quarterly dividend

TAMPA, October 16, 2002

At its meeting today, the Board of Directors of TECO Energy, Inc. declared a quarterly dividend of 35.5 cents per share on the company’s common stock. The dividend is payable November 15 to shareholders of record as of November 1. The year 2002 is the company’s 43rd consecutive year of increasing its dividend.

Chairman and CEO Robert D. Fagan said, “This demonstrates TECO Energy’s continued commitment to the dividend. And, as we’ve said previously, our business plan includes maintaining our dividend in 2003.”

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