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FPSC STAFF RECOMMENDS REVIEW OF ALLOWED RETURN ON EQUITY AT TAMPA ELECTRIC COMPANY

 FPSC STAFF RECOMMENDS REVIEW OF ALLOWED RETURN ON EQUITY
 AT TAMPA ELECTRIC COMPANY
 TAMPA, Fla., Jan. 20 /PRNewswire/ -- TECO Energy, Inc. (NYSE: TE) reported today that the Staff of the Florida Public Service Commission (FPSC) recommended in a report dated Jan. 17, 1992, that the Commission hold a limited proceeding to consider whether to update Tampa Electric Company's authorized return rate on equity for all regulatory purposes.
 The commission is expected to consider the staff's recommendation at its Feb. 4 session. The staff recommendation states that capital costs are significantly lower now than they were at the time Tampa Electric's authorized return rate on equity was last established in a general price case.
 Alan D. Oak, senior vice president-finance and treasurer, said Tampa Electric is considering its options for moving this issue forward. He noted that rate of return is only one of many components that determine the company's prices and that in Florida prices are set prospectively.
 The review recommended by Staff does not involve setting future prices, and any price change would have to be addressed in a subsequent proceeding, Oak added.
 In January 1990, Tampa Electric's prices were reduced as the 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. Tampa Electric reported in its surveillance report for Oct. 1, 1991 an achieved regulatory rate of return of 12.8 percent on equity. In its last general price case in 1985, the company was authorized a 14.5 percent return on equity.
 The FPSC Staff has indicated that if its recommendation to hold a limited proceeding is followed, it will assess then whether Tampa Electric is in an over earnings position and file a recommendation.
 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- 1/20/92
 /CONTACT: Mike Mahoney of TECO Energy, 813-228-4271 (office) or 813-961-9456 (home)/
 (TE) CO: TECO Energy, Inc. ST: Florida IN: UTI SU:


SS-AW -- FL004 -- 1399 01/20/92 11:53 EST
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Date:Jan 20, 1992
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