News Release

TECO Energy declares quarterly dividend

TAMPA, October 24, 2006

At its meeting today, the Board of Directors of TECO Energy, Inc. declared a dividend of 19 cents per share on the company’s common stock. The dividend is payable November 15 to shareholders of record as of November 3.

Effective with the February 2007 dividend, the expected payment dates will move from the 15th of the month to the 28th. Thus, the expected 2007 dividend payment dates will be: February 28, May 28, August 28 and November 28, or the first business day following in the event that date falls on a weekend or bank holiday.

TECO Energy, Inc. (NYSE: TE) is an integrated energy-related holding company with regulated utility businesses, 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 electric generation and distribution in Guatemala.