News Release

TECO Energy declares quarterly dividend

TAMPA, August 1, 2007

At its meeting today, the Board of Directors of TECO Energy, Inc. declared a dividend of 19.5 cents per share on the company’s common stock. The dividend is payable August 28 to shareholders of record as of August 15.

Effective with the January 2007 dividend, the expected payment dates moved from the 15th of the month to the 28th. Thus, the next expected 2007 dividend payment date is November 28.

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.