News Release

TECO Energy sells interest in Hamakua Power Station

TAMPA, July 19, 2004

TECO Energy, Inc. (NYSE: TE) announced that its TECO Wholesale Generation subsidiaries have sold their 50 percent indirect interest in the Hamakua Power Station in Hawaii.

TECO’s interest in the 60-megawatt Hamakua Power Station, which was acquired in 2000, was sold to an affiliate of Black River Energy, an affiliate of Energy Investors Funds’ US Power Fund, L.P. Via its ownership of Black River Energy, which already owns 50 percent of the plant, Energy Investors Funds is now the sole owner of Hamakua.

Cash proceeds from the sale were approximately $12 million. As a result of the transaction TECO Energy was also relieved of certain financial guarantees related to the facility. The company will record a small gain as a result of the transaction. 

TECO Energy, Inc. is a diversified energy-related holding company headquartered in Tampa, Florida. Its principal businesses are Tampa Electric, Peoples Gas System, TECO Transport, TECO Coal and TECO Wholesale Generation.