TECO Energy announces the formation of a new subsidiary, SeaCoast Gas Transmission, LLC
New venture aims to provide enhanced access to natural gas supplies, improved pricing
TAMPA, August 4, 2008
TECO Energy today announced the formation of a new subsidiary, SeaCoast Gas Transmission, LLC, to develop and own a high-volume Florida intrastate natural gas transmission pipeline.
Natural gas continues to play a major role in serving the incremental energy needs in the State of Florida, and this new subsidiary provides TECO Energy with an opportunity to participate in a business line that complements its existing regulated businesses in Florida.
SeaCoast Gas has entered into an agreement with JEA (formerly Jacksonville Electric Authority), the company’s first pipeline customer, that would provide for long-term transportation of natural gas to JEA’s planned Greenland Energy Center. SeaCoast Gas’ planned pipeline, which is currently under development, would connect both the Florida Gas Transmission and Southern Natural gas transmission pipelines to JEA’s proposed power plant. The SeaCoast project is designed to provide improved and competitively priced access to natural gas supplies.
Given the expected growth of natural gas-fired electric generation in Florida and the availability of additional natural gas supplies in the Jacksonville area, SeaCoast Gas also is exploring opportunities for the future expansion of the pipeline in order to deliver natural gas to electric generators in the East Central Florida markets. This would provide an economic alternative for natural gas transportation to electric generators utilizing the expanded system, which could translate to savings for their customers.
TECO Energy President and Chief Operating Officer John Ramil said “Our new SeaCoast subsidiary will allow us to expand our natural gas business by providing electric generating facilities with clean-burning natural gas supplies at competitive prices.”
TECO Energy, Inc. (NYSE: TE) is an energy-related holding company. Its principal subsidiary, Tampa Electric Company, is a regulated utility in Florida with both electric and gas divisions (Tampa Electric and Peoples Gas System). Other subsidiaries include TECO Coal, which owns and operates coal production facilities in Kentucky and Virginia, and TECO Guatemala, which is engaged in electric power generation and distribution and energy-related businesses in Guatemala.
Note: This press release contains forward-looking statements, which are subject to the inherent uncertainties in predicting future results and conditions. Actual results may differ materially from those forecasted. The forecasted information is based on the company’s current expectations and assumptions, and the company does not undertake to update that information or any other information contained in this release, except as may be required by law. Factors that could impact actual results include the ability to obtain necessary permits for the construction of the pipeline and for JEA’s Greenland Energy Center; the availability of materials and skilled labor; the ability to acquire land rights to complete the pipeline and other factors that could impact the ability to complete the pipeline on schedule and on budget; and commodity prices including those for natural gas and steel. Additional information is contained under “Risk Factors” in TECO Energy, Inc.’s and Tampa Electric Company’s combined Annual Report on Form 10-K for the period ended Dec. 31, 2007 as updated by the information contained in Item 1A of Part II of the Quarterly Report on Form 10-Q for the period ended Jun. 30, 2008.