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FPSC AUTHORIZES REVIEW OF ALLOWED RETURN ON EQUITY AT TAMPA ELECTRIC COMPANY

 FPSC AUTHORIZES REVIEW OF ALLOWED RETURN ON EQUITY
 AT TAMPA ELECTRIC COMPANY
 TAMPA, Fla., Feb. 4 /PRNewswire/ -- TECO Energy, Inc. (NYSE: TE) reported that the Florida Public Service Commission today voted to hold a limited proceeding to consider whether to update Tampa Electric Company's authorized rate of return on common equity for regulatory purposes. The hearing schedule will be announced at a later date. Last month, the staff requested such a review citing changes in market conditions reflecting lower capital costs since 1985 when Tampa Electric's authorized rate of return was last set in a full requirements case.
 Alan D. Oak, senior vice president-finance and treasurer, noted that the limited review ordered by the commission does not involve setting permanent future prices and any permanent price change would have to be addressed in a subsequent proceeding. He said that rate of return is only one of many components which determine the company's prices, noting that in Florida, prices are set prospectively. In the near term, the possible effects of the limited proceeding would be limited to interim rates, Oak added.
 Tampa Electric is considering filing a full revenue requirements case as early as June or July of this year. In that proceeding, the company expects to fully address rate of return on equity as well as all of the other components which determine the company's prices.
 While the authorized rate of return on equity granted in the company's last full requirements proceeding in 1985 is 14.5 percent, in January 1990 Tampa Electric's prices were reduced as a result of lower federal income tax rates and effective cost-control efforts within the company, using a return rate on equity of 13.5 percent.
 TECO Energy is a diversified energy-related holding company headquartered in Tampa, Fla. In addition to Tampa Electric, its principal companies include TECO Transport & Trade, TECO Coal, TECO Coalbed Methane, TECO Power Services and TECO Properties. In 1991, the non-utility companies contributed 29 percent of TECO Energy's earnings.
 -0- 2/4/92 R
 /CONTACT: Mike Mahoney of TECO Energy, Inc., 813-228-4271 (office), or 813-961-9456 (home)/
 (TE) CO: TECO Energy; Tampa Electric Company ST: Florida IN: UTI SU:


AW-JJ -- FL005 -- 6957 02/04/92 19:18 EST
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Publication:PR Newswire
Date:Feb 4, 1992
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