News Release

TECO Energy declares quarterly dividend

TAMPA, January 31, 2007

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 February 28 to shareholders of record as of February 15.

Effective with this dividend, the expected payment dates move from the 15th of the month to the 28th. Thus, the expected 2007 dividend payment dates for the remainder of the year are: 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.