News Release

TECO Energy closes the sale of its interest in Frontera Power Station

TAMPA, December 23, 2004

TECO Energy, Inc. (NYSE: TE) announced that all required regulatory approvals have been obtained and its subsidiaries have closed the previously announced sale of Frontera Generation Limited Partnership, the owner of the Frontera Power Station in Texas, to a subsidiary of Centrica plc for $134 million.  The Frontera Power Station is a 477-megawatt natural gas fired, combined-cycle merchant power plant located near McAllen, Texas, operating in the Electric Reliability Council of Texas (ERCOT) market. 

TECO Energy, Inc. (NYSE: TE) is an integrated energy-related holding company with core businesses in the utility sector, complemented by a family of unregulated businesses. Its principal subsidiary, Tampa Electric Company, is a regulated utility with both electric and gas divisions (Tampa Electric and Peoples Gas System). Other subsidiaries are engaged in waterborne transportation, coal and synthetic fuel production and independent power.