Refunds won't grow for TECO customers

The utility company won't be forced to double the refunds it plans to pay customers for excess profits it earned in 1999.

By STEVE HUETTEL, Times Staff Writer
© St. Petersburg Times
published March 6, 2002

The state Public Service Commission won't force Tampa Electric Co. to more than double the refund it plans to give customers.

The decision Tuesday means TECO ratepayers could receive a refund of $6.3-million this year. A typical residential customer using 1,000 kilowatt hours per month would get a monthly credit of about $1.60 for three months. The refund covers excess profits TECO earned in 1999, plus interest.

The Office of Public Counsel, which represents Florida utility ratepayers, contended that TECO owed customers an additional $8.3-million. That amount represents interest on a federal tax bill TECO paid after losing an appeal with the Internal Revenue Service.

Attorneys for the Office of Public Counsel argued that an agreement with TECO in the early 1990s did not specifically allow the utility to claim interest on taxes as a business expense and, therefore, reduce its 1999 earnings.

But the PSC agreed with TECO in December that the interest was a legitimate expense and the tax appeal saved ratepayers money. Commission members noted that the IRS did not say the appeal was without merit and did not impose a penalty on the utility.

Tuesday, the PSC declined to hear the public counsel's request to reconsider that decision.

Deputy Public Counsel Roger Howe said the office hadn't decided whether to appeal the case to the Florida Supreme Court, which would delay the refund.

Meanwhile, the utility's parent, TECO Energy, released its 2001 annual report that included a none-too-subtle swipe at Enron Corp.

"We think investors will find our (management discussion and analysis) clear and understandable and be pleased that we do not make extensive use of derivatives in our energy management group," wrote Gordon Gillette, the company's chief financial officer.

TECO Energy also said Tuesday it will file a $1.2-billion shelf registration statement with the Securities and Exchange Commission for debt, equity and hybrid securities.

The filing would let TECO Energy finance ongoing activities and its subsidiaries' capital investments, and to replace debt as it matures.

-- Steve Huettel can be reached at huettel@sptimes.com or (813) 226-3384.

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