Strategy and Focus
A strategy that is focused on the future
This is a transformational time for the energy industry and regulated utilities. Changes in industry trends are being driven by innovative technologies, governmental policies and customer preferences.
Finding opportunities among the transformation, TECO Energy is actively addressing these industry trends and challenges.
FOCUS is the name we have given a process designed to help us concentrate on value-added activities with full engagement from the entire organization. Our companies are united under this strategy to turn challenges into opportunities when it makes good business sense.
Our FOCUS strategy centers on three foundational priorities represented below.
TECO Energy's priorities flow from our mission to become a values-driven, financially successful Fortune 500 company. We aim to engage our constituencies while earning industry-leading returns and relying on key values embedded in the company's nearly 120-year tradition. Behind every sustainable business is a vision with distinct priorities. Our business strategy centers on three high-level foundational tactics: to deliver superior, sustainable financial performance; to optimize value with customers and constituents; and to strengthen our foundation.
Strategies at a glance
Our Core Strategies for our electric and gas utilities include:
- Grow electric and natural gas utilities inorganically – Growth through mergers and acquisition (M&A) or asset purchases where we identify, execute and integrate meaningful opportunities that position us for growth and competitive success while providing benefits to customers and shareholders. Our 2014 acquisition of New Mexico Gas Co. increased our customer base to more than 1.5 million customers in two states with opportunity for additional growth.
- Expand the electric utility organically – We plan to grow through prudent investments in new and existing generating assets – including renewable generation if we gain necessary regulatory treatment – and by advancing in grid modernizations and seeking opportunities from emerging technologies. We are investing nearly $700 million in the expansion of Tampa Electric's Polk Power Station to add 460 megawatts of capacity by 2017.
- Increase the natural gas utility base organically – Peoples Gas is well-positioned to take advantage of the increased supply of natural gas and resulting depressed prices, as electric utilities modernize coal and oil generation facilities and transportation alternatives are sought in compressed natural gas vehicles. We are also enhancing our gas distribution system integrity by investing $80 million in Peoples Gas' cast iron and bare steel replacement program.
- Improve and leverage external relations in economic development, customer interaction and regulatory relationships – Load growth is lower than it has been historically, and we want to attract businesses to the areas we serve. We also aim to improve the customer experience and interactions in ways they value.
- Optimize internal resources through operational efficiency, human capital and enterprise information – We will instill a culture of continuous improvement, increase team member capabilities, engagement and performance reduce enterprise risk and transform capabilities through the modernization of our information systems and grid infrastructure to support current and future growth.