News Release

Redemption of 8.5% trust preferred securities of TECO Capital Trust I

TAMPA, November 14, 2006

TECO Energy, Inc. (NYSE: TE) today announced that, as part of its previously reported debt redemption and refinancing plan, it is calling for redemption of the remaining outstanding 8.50% Junior Subordinated Notes due 2041 (the “Junior Subordinated Notes”).  The redemption of the Junior Subordinated Notes will cause the trustee of TECO Capital Trust I (NYSE: TEPRT) (the “Trust”) to call for redemption all outstanding 8.5% Trust Preferred Securities (CUSIP No. 87875R208) of the Trust.  The redemption date will be December 20, 2006.  The Trust Preferred Securities called for redemption will be redeemed at a redemption price equal to the $25 liquidation amount for each of the Trust Preferred Securities to be redeemed plus accumulated but unpaid distributions to the redemption date.  These transactions will result in TECO Energy’s redeeming the $100 million aggregate principal amount of Junior Subordinated Notes underlying the 8.5% Trust Preferred Securities of the Trust for $100 million plus accrued but unpaid interest to the redemption date, after which no 8.5% Trust Preferred Securities will remain outstanding.

The Trust Preferred Securities are held only in book-entry form through The Depository Trust Company (“DTC”).  DTC will redeem the securities in accordance with its procedures and will notify holders.

Notice of redemption is being sent to the registered holder of the Trust Preferred Securities, DTC.  Copies of the notice of redemption may be obtained from The Bank of New York, the trustee for the Trust, at:  The Bank of New York, Attn: Alexander Pabon, Assistant Vice President, 101 Barclay Street, 8w, New York, NY 10286 (phone: 212-815-4799).

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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.