News Release

TECO Energy declares quarterly dividend

TAMPA, May 4, 2011

At its meeting today, the Board of Directors of TECO Energy, Inc. declared a dividend of 21.5 cents per share on the company’s common stock. The dividend is payable May 27 to shareholders of record as of May 16.

In February, the TECO Energy Board of Directors set the annual 2011 dividend rate of $0.85 per share, a 3.7% increase.

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 energy-related businesses in Guatemala.