Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ NO ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ NO ☐

Indicate by check mark whether Tampa Electric Company is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark whether Tampa Electric Company has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether Tampa Electric Company is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ☐ NO ☒

As of May ~~11, 2022,~~9, 2023, there were 10 shares of Tampa Electric Company’s common stock issued and outstanding, all of which were held, beneficially and of record, by TECO Energy, Inc.

Tampa Electric Company meets the conditions set forth in General Instruction (H)(1)(a) and (b) of Form 10-Q and is therefore filing this form with the reduced disclosure format specified in General Instruction H(2) of Form 10-Q.

Acronyms used in this and other filings with the U.S. Securities and Exchange Commission in ~~2022~~2023 and ~~2021~~2022 include the following:

This Form 10-Q contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. The factors that could cause actual results to differ materially from the forward-looking statements made by TEC include those factors discussed herein, including those factors discussed with respect to TEC in (1) TEC’s ~~2021~~2022 Annual Report on Form 10-K in (a) Part I, Item 1A. Risk Factors, (b) Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) Part II, Item 8. Financial Statements: Note 8, Commitments and Contingencies; (2) this Quarterly Report on Form 10-Q in (a) Part 1, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (b) Part 1, Item 1. Financial Statements: Note 8, Commitments and Contingencies, and (3) other factors discussed in filings with the SEC by TEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this Report. TEC does not undertake any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this Form 10-Q.

All references to “dollars” and “$” in this and other filings with the U.S. Securities and Exchange Commission are references to U.S. dollars, unless specifically indicated otherwise.

The accompanying notes are an integral part of the consolidated condensed financial statements.

2. New Accounting Pronouncements

TEC considers the applicability and impact of all ASUs issued by the FASB. The ASUs that have been issued, but that are not yet effective, were assessed and determined to be either not applicable to TEC or have an insignificant impact on the consolidated condensed ~~consolidated~~ financial statements.

3. Regulatory

Tampa Electric Base Rates

On August 6, 2021, Tampa Electric filed with the FPSC a joint motion for approval of a settlement agreement dated as of August 6, 2021 (the Settlement Agreement) by and among Tampa Electric and the intervenors in Tampa Electric’s rate case filed with the FPSC in April 2021. The Settlement Agreement ~~agrees~~agreed to an increase in base rates annually effective with January 2022 bills, to generate a $191 million increase in revenue consisting of $123 million of traditional base rate charges and $68 million in a new charge to recover the costs of retiring assets. The Settlement Agreement further ~~includes~~included twosubsequent year adjustments of $90 million and $21 million, effective January 2023 and January 2024, respectively. Under the agreement, the allowed equity in the capital structure ~~will continue~~continued to be 54% from investor sources of capital. The Settlement Agreement ~~includes~~included an allowed regulatory ROE range of 9.0% to 11.0% with a 9.95% midpoint. The Settlement Agreement allows a 25 basis point increase in the allowed ROE range and

mid-point, and $10 million of additional revenue, if the average 3030-year~~-year~~ United States Treasury Bond yield rate for any period of six consecutive months is at least 50 basis points greater than the yield rate on the date the FPSC votes to approve the agreement. Under the agreement, base rates will 0not change from January 1, 2022 through December 31, 2024, unless Tampa Electric’s earned ROE were to fall below the bottom of the range during that time. The Settlement Agreement ~~contains~~contained a provision whereby Tampa Electric agrees to quantify the future impact of a decrease or increase in corporate income tax rates on net operating income through a reduction or increase in base revenues within 180 ~~days~~ days of when such tax change becomes law or its effective date. The Settlement Agreement further ~~creates~~created a mechanism to recover the costs of retiring coal generation units and meter assets over a period of 15 ~~years~~ years which survives the term of that agreement. The Settlement Agreement ~~sets~~set new depreciation and dismantlement rates effective January 1, 2022 and ~~contains~~contained the provisions that Tampa Electric will not have to file another depreciation study during the term of the agreement but will file a new depreciation study no more than one year, nor less than 90 days, before the filing of its next general base rate proceeding. Additionally, Tampa Electric agreed to a financial hedging moratorium for natural gas ending on December 31, 2024. On October 21, 2021, the FPSC approved the Settlement Agreement and the final order, reflecting such approval, was issued on November 10, 2021.

Tampa ~~Electric’s~~Electric ROE Adjustment

Pursuant to the Settlement Agreement, ~~provides recovery for~~on July 1, 2022, Tampa Electric requested to adjust its base rates to collect an additional $10 million annually (prorated in the ~~Big Bend modernization project in two phases.~~first year) effective September 1, 2022 and increase its mid-point ROE and upper and lower allowed ranges. On August 16, 2022, the FPSC approved the change. The ~~first phase~~new mid-point ROE is ~~a revenue increase~~10.20%, and the range is 9.25% to ~~cover the costs of the assets in service during 2022, among other items. The remainder of the project costs will be recovered as part of the 2023 subsequent year adjustment.~~ ~~The Settlement Agreement also includes a new charge to recover the remaining costs of the retiring Big Bend coal generation assets, Units 1 through 3, which will be spread over~~ 11.2515 ~~years and will survive the term of the Settlement Agreement. The special capital recovery schedule for all three units was applied beginning January~~% effective July 1, 2022.

Tampa Electric Mid-Course Adjustment to Fuel Recovery

In January 2022, Tampa Electric requested a mid-course adjustment toto its fuel and capacity charges to recover an additional $169 million beginning April 1, 2022 through December 2022 due to an increase in fuel commodity and capacity costs. On March 1, 2022, the FPSC voted to approve the mid-course adjustment, and the order reflecting such approval was issued on March 18, 2022.

On January 23, 2023, Tampa Electric requested an adjustment to its fuel charges to recover the $518 million final 2022 fuel under-recovery over a period of 21 months. The request also included an adjustment to 2023 projected fuel costs to reflect the

reduction in natural gas prices since September 2022 for a projected reduction of $170 million for the balance of 2023. The changes were approved by the FPSC on March 7, 2023, effective April 1, 2023.

Tampa Electric Storm Restoration Cost Recovery

As a result of Tampa Electric’s 2013 rate case settlement, in the event of a named storm that results in damage to its system, Tampa Electric can petition the FPSC to seek recovery of those costs over a 12-month period or longer as determined by the FPSC, as well as replenish its reserve to $56 million, the level of the reserve as of October 31, 2013. This provision was also included in Tampa Electric’s subsequent 2017 amended and restated settlement agreement and in Tampa Electric’s 2021 rate case settlement agreement. In 2021, 2020 and 2019, Tampa Electric incurred total storm restoration preparation costs for multiple hurricanes of approximately $10 million, which was charged to the storm reserve regulatory liability.

In September 2022, Tampa Electric was impacted by Hurricane Ian. The majority of Hurricane Ian restoration costs were charged against Tampa Electric’s FPSC approved storm reserve, resulting in minimal impact on earnings and capital expenditures. Total restoration costs were $126 million, with $119 million charged to the storm reserve. Restoration costs charged to the storm reserve exceed the reserve balance and this amount will be deferred and collected from customers in subsequent periods. In November 2022, Tampa Electric incurred costs of approximately $2 million related to Hurricane Nicole. In January 2023, Tampa Electric petitioned the FPSC for recovery of storm costs. Recovery will include costs associated with Hurricanes Ian and Nicole that exceeded the reserve, $10 million of storm restoration costs charged to the reserve since 2018, and the replenishment of the balance in the reserve to the $56 million level that existed as of October 31, 2013 for a total of approximately $131 million. The storm cost recovery surcharge was approved by the FPSC on March 7, 2023, and TEC began applying the surcharge on April 2023 bills. The storm recovery is subject to review of the underlying costs for prudency by the FPSC. The review and issuance of an order by the FPSC is likely to occur by the end of 2023.

Tampa Electric Storm Protection Cost Recovery Clause and Settlement Agreement

On October 3, 2019, the FPSC issued a rule to implement a Storm Protection Plan (SPP) Cost Recovery Clause. This clause provides a process for Florida investor-owned utilities, including Tampa Electric, to recover transmission and distribution storm hardening costs for incremental activities not already included in base rates. ~~On June 9, 2020, the FPSC approved a settlement agreement submitted by Tampa Electric which specified a $~~15 million base rate reduction for SPP program costs previously recovered in base rates beginning January 1, 2021. On August 3, 2020, Tampa Electric submitted another settlement agreement to the FPSC for approval, including cost recovery of approximately $39 ~~million in proposed storm protection project costs for 2020 and 2021. This cost recovery includes the $~~15 ~~million of costs removed from base rates. This~~A settlement agreement was approved on August 10, 2020 and Tampa Electric’s cost recovery began in January 2021. The current approved plan addresses the years ~~2020, 2021 and 2022, and in April 2022 Tampa Electric submitted a new plan to determine cost recovery in~~ 2023, 2024 and ~~2025.~~

~~PGS Base Rates~~

~~On June 8, 2020, PGS filed a petition for an increase in rates~~2025 and ~~service charges effective January 2021. On November 19, 2020,~~was approved by the FPSC ~~approved a settlement agreement filed by PGS and OPC. The settlement agreement provides for an increase in base rates by $~~58 ~~million annually effective January 2021, which is a $~~34 ~~million increase in revenue and $~~24 ~~million increase of revenues previously recovered through the cast iron and bare steel replacement rider. This settlement agreement includes an allowed regulatory ROE range of~~ ~~8.90% to~~ ~~11.00% with a~~ ~~9.90% midpoint, including the ability to reverse a total of $~~34 ~~million of accumulated depreciation through 2023. PGS has reversed $~~5 ~~million of the $~~34 million accumulated depreciation during the period ended March 31, 2022, and no amounts were reversed in prior periods. In addition, the agreement set new depreciation rates effective January 1, 2021 that are consistent with PGS’s current overall average depreciation rate. Under the agreement, base rates are frozen from ~~January 1, 2021~~ to ~~December 31, 2023, unless its earned ROE were to fall below~~ ~~8.90% before that time with an allowed equity in the capital structure of~~ ~~54.7% from investor sources of capital.~~on October 4, 2022.

Regulatory Assets and Liabilities

Details of the regulatory assets and liabilities are presented in the following table:


Regulatory Assets and Liabilities
(millions)	March 31, 2023		December 31, 2022
Regulatory assets:
Regulatory tax asset (1)	$	110	$	124
Cost-recovery clauses (2)		461		525
Capital cost recovery for early retired assets (3)		493		497
Environmental remediation (4)		0		20
Postretirement benefits (5)		241		272
Asset retirement obligation (6)		10		13
Storm reserve (7)		76		76
Other		23		25
Total regulatory assets		1,414		1,552
Less: Current portion		384		361
Long-term regulatory assets	$	1,030	$	1,191
Regulatory liabilities:
Regulatory tax liability (8)	$	507	$	601
Cost-recovery clauses - deferred balances (2)		22		30
Accumulated reserve - cost of removal (9)		302		498
Other		13		11
Total regulatory liabilities		844		1,140
Less: Current portion		83		85
Long-term regulatory liabilities	$	761	$	1,055

Regulatory Assets and Liabilities

(millions)
March 31, 2022

December 31, 2021

Regulatory assets:

Regulatory tax asset (1)
$
119

$
117

Cost-recovery clauses (2)

142

89

Capital cost recovery for early retired assets (3)

512

518

Environmental remediation (4)

22

22

Postretirement benefits (5)

225

230

Asset retirement obligation (6)

11

11

Other

17

15

Total regulatory assets

1,048

1,002

Less: Current portion

209

136

Long-term regulatory assets
$
839

$
866

Regulatory liabilities:

Regulatory tax liability (7)
$
641

$
638

Cost-recovery clauses - deferred balances (2)

22

16

Accumulated reserve - cost of removal (8)

470

468

Storm reserve (9)

46

46

Other

2

2

Total regulatory liabilities

1,181

1,170

Less: Current portion

49

78

Long-term regulatory liabilities
$
1,132

$
1,092

(1)

The regulatory tax asset is primarily associated with the depreciation and recovery of AFUDC-equity. This asset does not earn a return but rather is included in the capital structure, which is used in the calculation of the weighted cost of capital used to determine revenue requirements. It will be recovered over the expected life of the related assets. The regulatory tax asset balance reflects the impact of the federal corporate income tax rate reduction.

(2)

These assets and liabilities are related to FPSC clauses and ~~riders.~~riders, primarily related to the fuel clause and the increase in natural gas prices experienced in 2022. They are recovered or refunded through cost-recovery mechanisms approved by the FPSC on a dollar-for-dollar basis in a subsequent period.

(3)

This ~~regulatory~~ asset is related to the remaining net book value of Big Bend Units 1 through 3 and ~~smart~~ meter assets that were retired. The balance earns a rate of return as permitted by the FPSC and will be recovered as a separate line item on customer bills for a period of 15 years. See “Tampa Electric Base Rates” above for further information.

(4)

This asset is related to PGS costs associated with environmental remediation primarily at MGP sites. The balance is included in rate base, partially offsetting the related liability, and earns a rate of return as permitted by the FPSC. The timing of recovery is based on a settlement agreement approved by the FPSC.

(5)

This asset is related to the deferred costs of postretirement benefits and it is amortized over the remaining service life of plan participants. Deferred costs of postretirement benefits that are included in expense are recognized as cost of service for rate-making purposes as permitted by the FPSC.

(6)

This asset is related to costs associated with an asset retirement obligation, which is a legal obligation for the future retirement of certain tangible, long-lived assets. This regulatory asset does not earn a return because it is offset with related assets and liabilities within rate base. It is recovered and removed as the obligation is settled and removed as the activities for the retirement of the related assets have been completed.

(7)

See "Tampa Electric Storm Restoration Cost Recovery" above for information regarding this reserve. The regulatory asset is included in rate base and earns interest as permitted by the FPSC.

(8)

The regulatory tax liability is primarily related to the revaluation of TEC’s deferred income tax balances recorded on December 31, 2017 at the lower corporate income tax rate due to U.S. tax reform. The liability related to the revaluation of the deferred income tax balances is amortized and returned to customers through rate reductions or other revenue offsets based on IRS regulations and the settlement agreement for tax reform benefits approved by the FPSC.

~~(8)~~(9)

This item represents the non-ARO cost of removal in the accumulated reserve for depreciation. AROs are costs for legally required removal of property, plant and equipment. Non-ARO cost of removal represents estimated funds received from customers through depreciation rates to cover future non-legally required cost of removal of property, plant and equipment, net of salvage value upon retirement, which reduces rate base for ratemaking purposes. This liability is reduced as costs of removal are incurred.

~~(9)~~

As a result of Tampa Electric’s 2013 rate case settlement, in the event of a named storm that results in damage to its system, Tampa Electric can petition the FPSC to seek recovery of those costs over a ~~12-month~~ ~~period or longer as determined by the FPSC, as well as replenish its reserve to $~~56 million, the level of the reserve as of October 31, 2013. This provision was also included in Tampa Electric’s subsequent 2017 amended and restated settlement agreement and in Tampa Electric’s 2021 rate case settlement agreement.

6. Short-Term Debt

Details of TEC’s short-term borrowings are presented in the following table:



	March 31, 2022								December 31, 2021								March 31, 2023								December 31, 2022
			Borrowings		Borrowings		Letters				Borrowings		Borrowings		Letters				Borrowings		Borrowings		Letters				Borrowings		Borrowings		Letters
	Credit		Outstanding -		Outstanding -		of Credit		Credit		Outstanding -		Outstanding -		of Credit		Credit		Outstanding -		Outstanding -		of Credit		Credit		Outstanding -		Outstanding -		of Credit
(millions)	Facilities		Credit Facilities (1)		Commercial Paper (1)		Outstanding		Facilities		Credit Facilities (1)		Commercial Paper (1)		Outstanding		Facilities		Credit Facilities (1)		Commercial Paper (1)		Outstanding		Facilities		Credit Facilities (1)		Commercial Paper (1)		Outstanding
5-year facility (2)	$	800	$	0	$	313	$	1	$	800	$	0	$	245	$	1	$	800	$	0	$	783	$	1	$	800	$	0	$	619	$	1
1-year term facility (3)		500		500		0		0		500		500		0		0		400		400		0		0		400		400		0		0
1-year term facility (4)																		200		0		0		0		0		0		0		0
Total	$	1,300	$	500	$	313	$	1	$	1,300	$	500	$	245	$	1	$	1,400	$	400	$	783	$	1	$	1,200	$	400	$	619	$	1

(1)

Borrowings outstanding are reported as notes payable.

(2)

This 5-year facility matures on December 17, 2026. TEC also has an active commercial paper program for up to $800 million, of which the full amount outstanding is backed by TEC’s credit facility. The amount of commercial paper issued results in an equal amount of its credit facility being considered drawn and unavailable.

(3)

This 1-year term facility was set to mature on December 16, 2022. On December ~~17, 2021,~~13, 2022, TEC extended the maturity date to December 13, 2023.

(4)

On March 1, 2023, TEC entered into a 1-year term facility that matures on ~~December 16, 2022~~February 28, 2024.

At March 31, ~~2022,~~2023, these credit facilities required a commitment fee of 12.5 basis points. The weighted-average interest rate on borrowings outstanding under the credit facilities and commercial paper at March 31, ~~2022~~2023 and December 31, ~~2021~~2022 was ~~1.04~~5.55% and ~~0.58~~5.00%, respectively.

On March 1, 2023, TEC entered into a 364-day, $200 million senior unsecured revolving loan credit facility with a maturity date of February 28, 2024. The credit agreement contains customary representations and warranties, events of default, and financial and other covenants; and provides for interest to accrue at variable rates based on either the term secured overnight financing rate (SOFR), The Bank of Nova Scotia’s prime rate, the federal funds rate or the one-month secured overnight financing rate, plus a margin.

Subsequent to the quarter end, on April 3, 2023, TEC entered into an additional 364-day, $200 million senior unsecured revolving loan credit facility with a group of banks. The credit facility has a maturity date of April 1, 2024. The credit agreement contains customary representations and warranties, events of default, and financial and other covenants; and provides for interest to accrue at variable rates based on either the term SOFR, Wells Fargo’s prime rate, the federal funds rate or the one-month secured overnight financing rate, plus a margin.

9. Segment Information

(millions)
Tampa

Tampa Electric

Three months ended March 31,
Electric

PGS

Eliminations

Company

2022

Revenues - external
$
509

$
182

$
0

$
691

Intracompany sales

1

1

(2
)

0

Total revenues

510

183

(2
)

691

Total interest charges

30

5

0

35

Net income
$
88

$
30

$
0

$
118

2021

Revenues - external
$
446

$
153

$
0

$
599

Intracompany sales

1

2

(3
)

0

Total revenues

447

155

(3
)

599

Total interest charges

28

5

0

33

Net income
$
65

$
27

$
0

$
92

Total assets at March 31, 2022
$
10,873

$
2,263

$
(688
)
(1)
$
12,448

Total assets at December 31, 2021
$
10,650

$
2,209

$
(663
)
(1)
$
12,196

Due to the separation of PGS from TEC, TEC operates under a single operating and reportable segment effective January 1, 2023 because the operations of TEC only include the operations of the Electric division. See "Separation of PGS from TEC" in Note 1 for further information regarding the separation of PGS from TEC.


(millions)	Tampa					Eliminations/				Tampa Electric
Three months ended March 31,	Electric		PGS			Reclassifications				Company
2023
Revenues - external	$	552								$	552
Intracompany sales		0									0
Total revenues		552									552
Total interest charges		58									58
Net income	$	79								$	79
2022
Revenues - external	$	509	$	182		$	0			$	691
Intracompany sales		1		1			(2	)			0
Total revenues		510		183			(2	)			691
Total interest charges		30		5			0				35
Net income	$	88	$	30		$	0			$	118
Total assets at March 31, 2023	$	12,920				$	(647	)	(1)	$	12,273
Total assets at December 31, 2022	$	12,064	$	2,471	(2)	$	(732	)	(1)	$	13,803

(1)

Amounts primarily relate to consolidated deferred tax reclassifications. Deferred tax assets are reclassified and netted with deferred tax liabilities upon consolidation.

(2)

For the summary of the assets and liabilities of PGS as of December 31, 2022, see Note 1 of TEC’s Annual Report on Form 10-K for the year ended December 31, 2022.

10. Revenue

The following disaggregates TEC’s revenue by major source:


(millions)	Tampa			Tampa Electric
Three months ended March 31, ~~2022~~2023	Electric	PGS	Eliminations	Company


Electric revenue
Residential												$	325							$	325
Commercial													170								170
Industrial													46								46
Regulatory deferrals and unbilled revenue													(60	)							(60	)
Other (1)													71								71
Total electric revenue													552								552
Total revenue												$	552							$	552

Three months ended March 31, 2022
Electric revenue
Residential	$	270		$	0	$	0		$	270		$	270		$	0	$	0		$	270
Commercial		137			0		0			137			137			0		0			137
Industrial		37			0		0			37			37			0		0			37
Regulatory deferrals and unbilled revenue		3			0		0			3			3			0		0			3
Other (1)		63			0		(1	)		62			63			0		(1	)		62
Total electric revenue		510			0		(1	)		509			510			0		(1	)		509
Gas revenue
Residential		0			75		0			75			0			75		0			75
Commercial		0			56		0			56			0			56		0			56
Industrial (2)		0			7		0			7			0			7		0			7
Other (3)		0			45		(1	)		44			0			45		(1	)		44
Total gas revenue		0			183		(1	)		182			0			183		(1	)		182
Total revenue	$	510		$	183	$	(2	)	$	691		$	510		$	183	$	(2	)	$	691

Three months ended March 31, 2021
Electric revenue
Residential	$	232		$	0	$	0		$	232
Commercial		126			0		0			126
Industrial		37			0		0			37
Regulatory deferrals and unbilled revenue		(2	)		0		0			(2	)
Other (1)		54			0		(1	)		53
Total electric revenue		447			0		(1	)		446
Gas revenue
Residential		0			67		0			67
Commercial		0			53		0			53
Industrial (2)		0			6		0			6
Other (3)		0			29		(2	)		27
Total gas revenue		0			155		(2	)		153
Total revenue	$	447		$	155	$	(3	)	$	599

(1)

Other electric revenue includes sales to public authorities, off-system sales to other utilities and various other items.

(2)

Industrial gas revenue includes sales to power generation customers.

(3)

Other gas revenue includes off-system sales to other utilities and various other items.

Remaining Performance Obligations

Remaining performance obligations primarily represent lighting contracts and gas transportation contracts with fixed contract terms. As of March 31, ~~2022~~2023 and December 31, ~~2021,~~2022, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $~~135~~62 ~~million.~~million and $140 million, respectively. The decrease is due to TEC's January 1, 2023 separationfrom its former PGS division. See Note 1 for further information regarding the separation of PGS from TEC. As allowed under ASC 606, these amounts exclude contracts with an original expected length of one year or less and variable amounts for which TEC recognizes revenue at the amount to which it has the right to invoice for services performed. TEC expects to recognize revenue for the remaining performance obligations through ~~2041~~2043.

11.11. Fair Value Measurements

Items Measured at Fair Value on a Recurring Basis

Accounting guidance governing fair value measurements and disclosures provides that fair value represents the amount that would be received in selling an asset or the amount that would be paid in transferring a liability in an orderly transaction between market participants. As a basis for considering assumptions that market participants would use in pricing an asset or liability,

accounting guidance also establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:


Level 1:	Observable inputs, such as quoted prices in active markets;
Level 2:	Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and
Level 3:	Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions.

There were no Level 3 assets or liabilities for the periods presented.

As of March 31, ~~2022~~2023 and December 31, ~~2021,~~2022, the carrying value of TEC’s short-term debt was not materially different from the fair value due to the short-term nature of the instruments and because the stated rates approximate market rates. The fair value of TEC’s short-term debt is determined using Level 2 measurements. See Note 7 for information regarding the fair value of long-term debt.

12. Related Party Transactions

A summary of activities between TEC and its affiliates follows:

Net transactions with affiliates


(millions)
Three months ended March 31,	2023		2022
Natural gas sales to/(from) affiliates	$	33	$	83
Services to/(from) affiliates		12		(2	)
Interest income from PGS		8		0
Interest expense to TECO Energy		3		0
Dividends to TECO Energy		91		85
Equity contributions from TECO Energy		100		175

17Amounts due from or to affiliates


(millions)	March 31, 2023		December 31, 2022
Note receivable from PGS (1)	$	805	$	0
Interest receivable (1)		12		0
Accounts receivable related to asset management agreements to Emera Energy Services Inc. (2)		5		7
Accounts receivable excluding asset management agreements (2)		7		5
Taxes receivable (3)		9		10
Accounts payable (2)		18		31
Note payable to TECO Energy (4)		195		195
Interest payable to TECO Energy (4)		1		0

(1)

On January 1, 2023, TEC entered into a loan agreement with PGS for PGS’s allocation of outstanding unsecured notes issued by TEC and outstanding short-term borrowings associated with the separation of PGS from TEC on that date. As of March 31, 2023, the note receivable from PGS was a term loan in the principal amount of $670 million and a revolving loan in the principal amount of $142 million, net of discounts and issuance costs of $7 million. The maturity date for both loans is December 29, 2023. The note receivable for the term loan bears interest at primarily the stated rate and the revolving loan rate approximates the market rate of TEC's commercial paper. See "Separation of PGS from TEC" in Note 1 for further information.

(2)

Accounts receivable and accounts payable were incurred in the ordinary course of business and do not bear interest.

(3)

Taxes receivable were due from EUSHI. See Note 4 for additional information.

(4)

The note payable with TECO Energy bears interest at a rate approximating the market rate of TEC's commercial paper.

Item 2. MANAGEMENT’S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION & RESULTS OF OPERATIONS

Earnings Summary - Unaudited


			Three months ended March 31,								Three months ended March 31,
(millions)			2022			2021					2023		2022
Revenues	Revenues								Revenues
		Tampa Electric	$	510		$	447			Tampa Electric	$	552	$	510
		PGS		183			155			PGS				183
		Eliminations		(2	)		(3	)		Eliminations				(2	)
		TEC	$	691		$	599			TEC	$	552	$	691

Net income	Net income								Net income
		Tampa Electric	$	88		$	65			Tampa Electric	$	79	$	88
		PGS		30			27			PGS				30
		TEC	$	118		$	92			TEC	$	79	$	118

Operating Results

First quarter ~~2022~~2023 net income was ~~$118~~$79 million, compared to ~~$92~~$118 million in the first quarter of ~~2021.~~2022. First quarter ~~2022~~2023 results ~~were impacted by higher base revenues at Tampa Electric and~~decreased primarily due to the separation of PGS ~~partially offset by higher O&M and depreciation and amortization expenses at Tampa Electric.~~from TEC on January 1, 2023 (see section below for further information on the separation). See Operating Company Results below for ~~further detail.~~detail on the results of operations at Tampa Electric during the first quarter of 2023 compared to the first quarter of 2022.

Separation of PGS From TEC

On January 1, 2023, TEC transferred the assets and liabilities of its PGS division into a separate corporation called Peoples Gas System, Inc. pursuant to a Contribution Agreement. This new corporation is a wholly owned subsidiary of a newly formed gas operations holding company, TECO Gas Operations, Inc., a wholly owned subsidiary of TECO Energy. On January 1, 2023, the assets, liabilities, and equity that had been recorded in the books of PGS were transferred from TEC to the newly formed company at book value in a tax-free transaction. PGS issued 100 shares of common stock to TEC related to the transfer, which were subsequently distributed to TECO Energy, Inc. and then contributed to TECO Gas Operations, Inc. As a result, from and after January 1, 2023, the PGS division is no longer operated by TEC. This is a transaction between entities under common control; therefore, TEC did not recognize a gain or loss on the transaction. TEC is not required to recast its prior period financial statements and disclosures to exclude PGS prior to January 1, 2023.

Included in the liabilities transferred was PGS’s allocation of outstanding unsecured notes and outstanding short-term borrowings issued by TEC. The obligations related to these combined borrowings are reflected in a loan agreement between TEC and PGS. The initial obligation of PGS under the loan agreement at January 1, 2023 was a term loan in the principal amount of $670 million and a revolving loan in the principal amount of $66 million. The maturity date for both is December 29, 2023. PGS intends to access the third-party lending market during 2023 but cannot predict when during the year that it will do so. To assist its affiliate and to facilitate an orderly transfer of its gas assets, Tampa Electric will continue to be responsible for providing capital as needed to PGS under a loan agreement guaranteed by TECO Energy and TECO Gas Operations, Inc. See Note 12 to the TEC Consolidated Condensed Financial Statements for details of the related party transactions as of March 31, 2023.

Operating Company Results

Amounts included in the operating company discussions below are pre-tax, except net income and income taxes.

Electric Division

Tampa Electric’s net income for the first quarter of ~~2022~~2023 was ~~$88~~$79 million, compared with ~~$65~~$88 million for the same period in ~~2021.~~2022. Results primarily reflected higher interest expense, depreciation expense and O&M expense, partially offset by higher base revenues resulting from the 2021 rate case settlement agreement, ~~returns related to capital cost recovery for early retired assets~~customer growth and ~~favorable weather, partially offset by higher depreciation expense and higher O&M expense.~~interest income from affiliate. Base revenues are energy sales excluding revenues from clauses, gross receipts taxes and franchise fees. Clauses, gross receipts taxes and franchise fees do not have a material effect on net income as these revenues substantially represent a dollar-for-dollar recovery of clause and other pass-through costs.

Revenues were ~~$63~~$42 million higher than in the same period in ~~2021,~~2022, primarily driven by higher base revenue due to new base rates as a result of the 2021 rate case settlement agreement ~~returns related to capital cost recovery for early retired assets, favorable~~and customer growth, partially offset by mild weather compared to the same period in ~~2021~~2022, and ~~customer growth.~~higher fuel recovery clause revenue as a result of increased fuel costs in 2022. Total degree days (a measure

of heating and cooling demand) in Tampa Electric's service area in the first quarter of ~~2022~~2023 were ~~14%~~6% above normal (a 20-year statistical degree day average) and ~~12% above~~8% below the ~~2021~~2022 period, reflecting ~~favorable~~mild weather in the first quarter of ~~2022~~2023 compared to ~~2021.~~2022. Total net energy for load, which is a calendar measurement of energy output, in the first quarter of ~~2022~~2023 was ~~3% higher than~~consistent with the same period in ~~2021.~~2022.

~~O&M~~In 2023, operations and maintenance expense ~~excluding all FPSC-approved cost-recovery clauses,~~ was $7$11 million higher than in ~~the same period~~2022 due to increased operating expenses of $6 million and increased costs related to FPSC-approved cost-recovery clauses of $5 million. The increase in ~~2021,~~operating expenses was due to higher transmission and distribution, ~~insurance~~generation maintenance, customer support and ~~benefit~~information technology costs. Depreciation and amortization expense ~~excluding all FPSC-approved cost-recovery clauses,~~ increased $7$9 million in ~~the first quarter of 2022~~2023 compared to 2022 as a result of the ~~same period in 2021, primarily due to~~depreciation of additions to facilities ~~to reliably serve customers~~ and the in-service of generation ~~projects.~~

projects of $10 million, slightly offset by decreased depreciation costs related to FPSC-approved cost-recovery clauses of $1 million.

Tampa Electric’s regulated operating statistics for the three months ended March 31, ~~2022~~2023 and ~~2021~~2022 were as follows:


(millions, except customers and total degree days)	Operating Revenues								Kilowatt-Hours Billed						Operating Revenues								Kilowatt-Hours Billed
Three months ended March 31,	2022		2021			% Change			2022		2021		% Change		2023			2022		% Change			2023		2022		% Change
By Customer Type
Residential (1)	$	270	$	232			16			2,082		2,053		1	$	325		$	270		20			2,073		2,082		(0	)
Commercial (1)		137		126			9			1,375		1,325		4		170			137		24			1,403		1,375		2
Industrial (1)		37		37			0			484		474		2		46			37		24			493		484		2
Other (1)		47		43			9			448		434		3		57			47		21			452		448		1
Regulatory deferrals and unbilled revenue (2)		3		(2	)		(250	)								(60	)		3		(2,100	)
Total retail sales of electricity		494		436			13			4,389		4,286		2		538			494		9			4,421		4,389		1
Off system sales of electricity		4		0		-				84		11		664		2			4		(50	)		53		84		(37	)
Other operating revenue		12		11			9									12			12		0
Total revenues	$	510	$	447			14			4,473		4,297		4	$	552		$	510		8			4,474		4,473		0
By Sales Type
Base															$	321		$	299		7
Clause																174			157		11
Capital cost recovery for early retired assets																15			15		0
Other																42			39		8
Total revenues															$	552		$	510		8

Customers at March 31, (thousands)		814		796			2									832			814		2
Retail net energy for load (kilowatt-hours)		4,575		4,436			3									4,583			4,575		0
Total degree days		688		614			12									635			688		(8	)

(1)

Reflects a billing cycle measurement.

(2)

Primarily reflects unbilled revenue, which incorporates a calendar measurement, and postings for clause recovery deferrals.

~~Natural Gas Division~~

PGS had net income of $30 million for the first quarter of 2022 compared with $27 million in the first quarter of 2021. Results reflect a 4.6% higher number of customers in the first quarter of 2022 compared to the first quarter of 2021. Revenues were $28 million higher than in the first quarter of 2021 primarily due to higher PGA clause-related revenues and higher off-system sales. The base revenue increase of $2 million was primarily due to customer growth. Operations and maintenance expense, excluding all FPSC-approved cost-recovery clauses, was $1 million higher than the 2021 quarter. Depreciation and amortization decreased $3 million in the 2022 quarter due to the $5 million reversal of accumulated depreciation as provided for in PGS’s 2020 settlement agreement (see ~~Note 3~~ ~~to the~~ ~~TEC Consolidated Financial Statements~~ ~~for further information), partially offset by increases due to asset growth.~~

~~PGS’s regulated operating statistics for the three months ended March 31, 2022 and 2021 were as follows:~~

(millions, except customers)

Operating Revenues

Therms

Three months ended March 31,

2022

2021

% Change

2022

2021

% Change

By Customer Type

Residential

$
75

$
67

12

39

38

3

Commercial

56

53

6

147

140

5

Industrial

5

4

25

120

112

7

Power generation

2

2

0

189

218

(13
)
Off system sales

15

6

150

25

15

67

Other operating revenues

26

19

37

Total

$
179

$
151

19

520

523

(1
)
By Sales Type

System supply

$
108

$
88

23

73

62

18

Transportation

45

44

2

447

461

(3
)
Other operating revenues

26

19

37

Total

$
179

$
151

19

520

523

(1
)
Customers at March 31, (thousands)

452

432

5

Other Income

For the first quarter of ~~2022~~2023 and ~~2021,~~2022, TEC’s other income was $21 million and $11 million, ~~and~~respectively, which included AFUDC-equity of $3 million and $8 million, respectively, interest income from affiliate of $8 million and $0, respectively, and other income of $10 million and $3 million, respectively. The decrease in AFUDC-equity was primarily due to the in-service timing of Tampa Electric’s modernization of its Big Bend Power ~~Station~~Station. The interest income from affiliate is related to the note receivable from PGS for PGS's allocation of short-term and long-term debt resulting from the separation of PGS from TEC as of January 1, 2023. See Notes 1 and 12 to the TEC Consolidated Condensed Financial Statements for details of the separation of PGS from TEC and the ~~construction of solar projects.~~resulting related party transactions. The increase in Other Income is primarily due to interest income on the deferred fuel balance.

Interest Expense

For the first quarter of ~~2022~~2023 and ~~2021,~~2022, TEC’s interest expense, excluding AFUDC-debt, was $59 million and $38 ~~million.~~million, respectively. The increase was due to higher interest rates and higher borrowings to support TEC’s ongoing capital investment program and ongoing operations, including fuel under recoveries and costs for hurricane restoration. The weighted-average interest rate on borrowings outstanding under the credit facilities and commercial paper at March 31, 2023 and 2022 was 5.55% and 1.04%,

respectively. See Other Income above for information regarding the interest income from affiliate associated with PGS's allocation of short-term and long-term debt resulting from the separation of PGS from TEC as of January 1, 2023. The interest income from affiliate partially offsets the impact of TEC's interest expense on the Consolidated Condensed Statement of Income.

Income Taxes

The provisions for income taxes were ~~$29~~$15 million and ~~$20~~$29 million for the three months ended March 31, ~~2022~~2023 and ~~2021,~~2022, respectively. Compared to the ~~2021~~2022 period, the ~~increase~~decrease in the provision for income taxes for the three months ended March 31, ~~2022~~2023 was primarily the result of ~~higher~~lower pre-tax ~~income.~~income due to PGS's separation from TEC on January 1, 2023 and production tax credits related to solar facilities.

Liquidity and Capital Resources

The table below sets forth the March 31, ~~2022~~2023 liquidity, cash balances and amounts available under the TEC credit facilities.

(millions)

Credit facilities

$
1,300

Drawn amounts/letters of credit

(814
)

Available credit facilities

486

Cash and short-term investments

20

Total liquidity

$
506



(millions)
Credit facilities/ commercial paper / advances from affiliates	$	1,595
Drawn amounts/letters of credit		(1,379	)
Available credit facilities		216
Cash and short-term investments		4
Total liquidity	$	220

Cash Impacts Related to Operating Activities

Cash flows from operating activities for the three months ended March 31, ~~2022~~2023 were ~~$142~~$151 million, ~~a decrease~~an increase of ~~$38~~$9 million compared to the same period in ~~2021. Decreases~~2022. Increases to cash from operations were primarily the result of ~~higher fuel under-recoveries due to rising~~lower natural gas prices, ~~and higher materials and supplies inventory~~, partially o~~ffset~~offset by the timing of ~~deferred taxes and higher base revenues resulting from new base rates as a result of the 2021 rate case agreement and favorable weather.~~invoice payments.

Cash Impacts Related to Financing Activities

Cash flows from financing activities for the three months ended March 31, ~~2022~~2023 resulted in net cash inflows of ~~$158~~$97 million. TEC received ~~$175~~$100 million of equity contributions from Parent and ~~$68~~$88 million of net proceeds from short-term debt with maturities with 90 days or less. These increases in cash flows were partially offset by dividend payments to Parent of ~~$85~~$91 million.

Covenants in Financing Agreements

In order to utilize its bank credit facilities, TEC must meet certain financial tests as defined in the applicable agreements. In addition, TEC has certain restrictive covenants in specific agreements and debt instruments. At March 31, ~~2022,~~2023, TEC was in compliance with all applicable financial covenants. The following table contains the significant financial covenant and the performance relative to it at March 31, ~~2022.~~2023.

Significant Financial Covenants


			Calculation at
Instrument (1)	Financial Covenant (2)	Requirement/Restriction	March 31, ~~2022~~2023
Credit facility - $800 million	Debt/capital	Cannot exceed 65%	~~45.6%~~52.1%
Term facility- ~~$500~~$400 million	Debt/capital	Cannot exceed 65%	~~45.6%~~52.1%
Term facility - $200 million	Debt/capital	Cannot exceed 65%	52.1%

(1)

See Note 6 to the TEC Consolidated Condensed Financial Statements for details of the credit facility.

(2)

As defined in the instrument.

Credit Ratings of Senior Unsecured Debt at March 31, ~~2022~~

2023


	S&P	Moody’s	Fitch
Credit ratings of senior unsecured debt	BBB+	A3	A
Credit ratings outlook	~~Stable~~Negative	~~Positive~~Negative	~~Stable~~Negative

Certain of TEC’s derivative instruments contain provisions that require TEC’s debt to maintain investment grade credit ratings.

Commitments and Contingencies

See Note 8 to the TEC Consolidated Condensed Financial Statements for information regarding TEC’s commitments and contingencies as of March 31, ~~2022.~~2023.

Regulatory Matters

See Note 3 to the TEC Consolidated Condensed Financial Statements for information regarding TEC’s regulatory matters as of March 31, ~~2022.~~2023.

Fair Value Measurements

TEC's fair value measurements are described in Notes 7 and 11 to the TEC Consolidated Condensed Financial Statements. In addition, TEC considered the impact of nonperformance risk in determining the fair value of derivatives. TEC considered the net position with each counterparty, past performance of both parties and the intent of the parties, indications of credit deterioration and whether the markets in which TEC transacts have experienced dislocation. At March 31, ~~2022,~~2023, the fair value of derivatives was not materially affected by nonperformance risk.

Critical Accounting Policies and Estimates

Critical accounting policies and estimates have not materially changed in ~~2022.~~2023. For further discussion of critical accounting policies and estimates, see TEC’s Annual Report on Form 10-K for the year ended December 31, ~~2021.~~2022.

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Information required by Item 3 is omitted pursuant to General Instruction H(2) of Form 10-Q.

Item 4. CONTROLS AND PROCEDURES

(a)

Evaluation of Disclosure Controls and Procedures. TEC’s management, with the participation of its principal executive officer and principal financial officer, has evaluated the effectiveness of TEC’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of March 31, ~~2022.~~2023. Based on such evaluation, TEC’s principal financial officer and principal executive officer have concluded that, as of March 31, ~~2022,~~2023, TEC’s disclosure controls and procedures are effective.

(b)

Changes in Internal Controls. There was no change in TEC’s internal controls over financial reporting (as defined in Rules 13a–15(f) and 15d-15(f) under the Exchange Act) identified in connection with the evaluation of TEC’s internal control over financial reporting that occurred during TEC’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, such controls.

2122

PART II. OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

From time to time, TEC is involved in various legal, tax and regulatory proceedings before various courts, regulatory commissions and governmental agencies in the ordinary course of business. Where appropriate, accruals are made in accordance with accounting standards for contingencies to provide for matters that are probable of resulting in an estimable loss. For a discussion of legal proceedings and environmental matters, see Note 8 of the TEC Consolidated Condensed Financial Statements.

Item 6. EXHIBITS


Exhibit
No.	Description
3.1	Restated Articles of Incorporation of Tampa Electric Company, as amended on November 30, 1982 (Exhibit 3 to Registration Statement No. 2-70653 of Tampa Electric Company). (P)	*

3.2	Bylaws of Tampa Electric Company, as amended effective February 2, 2011 (Exhibit 3.4, Form 10-K for 2010 of Tampa Electric Company).	*

10.1	Credit Agreement dated as of March 1, 2023, among Tampa Electric Company, as Borrower, The Bank of Nova Scotia, as Administrative Agent, and the Lenders party thereto (Exhibit 10.1, Form 8-K dated March 1, 2023 of Tampa Electric Company).	*

31.1	Certification of the Chief Executive Officer of Tampa Electric Company pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2	Certification of the Chief Financial Officer of Tampa Electric Company pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32	Certification of the Chief Executive Officer and Chief Financial Officer of Tampa Electric Company pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (1)

101.INS**	Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the inline XBRL document.

101.SCH**	Inline XBRL Taxonomy Extension Schema Document.

101.CAL**	Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF**	Inline XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB**	Inline XBRL Taxonomy Label Linkbase Document.

101.PRE**	Inline XBRL Taxonomy Presentation Linkbase Document.

104	The cover page from TEC’s Quarterly Report on Form 10-Q for the quarter ended March 31, ~~2022~~2023 has been formatted in Inline XBRL.

(1)

This certification accompanies the Quarterly Report on Form 10-Q and is not filed as part of it.

* Indicates exhibit previously filed with the Securities and Exchange Commission and incorporated herein by reference. Exhibits filed with periodic reports of TECO Energy, Inc. and TEC were filed under Commission File Nos. 1-8180 and 1-5007, respectively.

** The XBRL related information in Exhibit 101 to this quarterly report on Form 10-Q shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that section and shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.

2223

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	TAMPA ELECTRIC COMPANY
	(Registrant)

Date: May ~~13, 2022~~11, 2023	By:	/s/ Gregory W. Blunden
		Gregory W. Blunden
		Treasurer and Chief Financial Officer
		(Principal Financial and Accounting Officer)

2324


Commission File No	Exact name of each registrant as specified in its charter, state of incorporation, address of principal executive offices, telephone number	I.R.S. Employer Identification Number
1-5007	TAMPA ELECTRIC COMPANY	59-0475140
	(a Florida corporation) TECO Plaza 702 N. Franklin Street Tampa, Florida 33602 (813) 228-1111


Title of each class	Trading symbol(s)	Name of each exchange on which registered
None.


Term		Meaning

AFUDC		allowance for funds used during construction
AFUDC-debt		debt component of allowance for funds used during construction
AFUDC-equity		equity component of allowance for funds used during construction
APBO		accumulated postretirement benefit obligation
ARO		asset retirement obligation
ASC		Accounting Standards Codification
ASU		Accounting Standards Update
BCF		billion cubic feet
CCRs		coal combustion residuals
CMO		collateralized mortgage obligation
CNG		compressed natural gas
CO2		carbon dioxide
COVID-19		coronavirus disease 2019
CPI		consumer price index
CT		combustion turbine
D.C. Circuit Court		D.C. Circuit Court of Appeals
ECRC		environmental cost recovery clause
Emera		Emera Inc., a geographically diverse energy and services company headquartered in Nova Scotia, Canada and the indirect parent company of Tampa Electric Company
EPA		U.S. Environmental Protection Agency
ERISA		Employee Retirement Income Security Act
EROA		expected return on plan assets
EUSHI		Emera US Holdings Inc., a wholly owned subsidiary of Emera, which is the sole shareholder of TECO Energy’s common stock
FASB		Financial Accounting Standards Board
FDEP		Florida Department of Environmental Protection
FERC		Federal Energy Regulatory Commission
FPSC		Florida Public Service Commission
GHG		greenhouse gas
IGCC		integrated gasification combined-cycle
IRS		Internal Revenue Service
ITCs		investment tax credits
kWac		kilowatt on an alternating current basis
LNG		liquefied natural gas
MBS		mortgage-backed securities
MD&A		the section of this report entitled Management’s Discussion and Analysis of Financial Condition and Results of Operations
MGP		manufactured gas plant
MMBTU		one million British Thermal Units
MRV		market-related value
MW		megawatt(s)
MWH		megawatt-hour(s)
NAV		net asset value
Note		Note to consolidated financial statements
NPNS		normal purchase normal sale
O&M expenses		operations and maintenance expenses
OCI		other comprehensive income
OPC		Office of Public Counsel
OPEB		other postemployment benefits
Parent		TECO Energy, Inc., the direct parent company of Tampa Electric Company
PBGC		Pension Benefit Guarantee Corporation
PBO		projected benefit obligation
PGA		purchased gas adjustment
PGS		Peoples Gas System, ~~the gas division of Tampa Electric Company~~Inc., formerly Peoples Gas System


PPA		power purchase agreement
PRP		potentially responsible party
R&D		research and development
REIT		real estate investment trust
RFP		request for proposal
ROE		return on common equity
Regulatory ROE		return on common equity as determined for regulatory purposes
S&P		Standard and Poor’s
SCR		selective catalytic reduction
SEC		U.S. Securities and Exchange Commission
SERP		Supplemental Executive Retirement Plan
SoBRAs		solar base rate adjustments
SPP		storm protection plan
STIF		short-term investment fund
Tampa Electric		Tampa Electric, the electric division of Tampa Electric Company
TEC		Tampa Electric Company
TECO Energy		TECO Energy, Inc., the direct parent company of Tampa Electric Company
TSI		TECO Services, Inc.
U.S. GAAP		generally accepted accounting principles in the United States


Assets	March 31,			December 31,			March 31,			December 31,
(millions)	2022			2021			2023			2022
Property, plant and equipment
Utility plant
Electric	$	11,739		$	11,563		$	12,720		$	12,536
Gas		2,698			2,626			0			2,938
Utility plant, at original costs		14,437			14,189			12,720			15,474
Accumulated depreciation		(3,663	)		(3,601	)		(3,202	)		(3,845	)
Utility plant, net		10,774			10,588			9,518			11,629
Other property		14			14			15			15
Total property, plant and equipment, net		10,788			10,602			9,533			11,644

Current assets
Cash and cash equivalents		20			18			4			14
Receivables, less allowance for credit losses of $7 and $7 at March 31, 2022 and December 31, 2021, respectively		258			254
Receivables, less allowance for credit losses of $2 and $4 at March 31, 2023 and December 31, 2022, respectively								231			295
Due from affiliates		11			8			838			22
Inventories, at average cost
Fuel		16			20			31			23
Materials and supplies		133			121			157			159
Regulatory assets		209			136			384			361
Prepayments and other current assets		23			22			22			35
Total current assets		670			579			1,667			909

Deferred debits
Other assets
Regulatory assets		839			866			1,030			1,191
Other		151			149			43			59
Total deferred debits		990			1,015
Total other assets								1,073			1,250
Total assets	$	12,448		$	12,196		$	12,273		$	13,803


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


Liabilities and Capitalization	March 31,			December 31,			March 31,			December 31,
(millions)	2022			2021			2023			2022
Capitalization
Common stock	$	4,645		$	4,470		$	4,305		$	5,075
Accumulated other comprehensive loss		(1	)		(1	)		(1	)		(1	)
Retained earnings		356			323			213			346
Total capital		5,000			4,792			4,517			5,420
Long-term debt		3,137			3,136			3,734			3,734
Total capitalization		8,137			7,928			8,251			9,154

Current liabilities
Long-term debt due within one year		250			250
Notes payable		813			745			1,183			1,019
Accounts payable		285			390			247			472
Due to affiliates		33			44			214			226
Customer deposits		134			132			119			145
Regulatory liabilities		49			78			83			85
Accrued interest		39			18			45			30
Accrued taxes		40			19			27			15
Other		53			51			35			45
Total current liabilities		1,696			1,727			1,953			2,037

Long-term liabilities
Deferred income taxes		864			858			878			1,045
Regulatory liabilities		1,132			1,092			761			1,055
Investment tax credits		280			249			243			243
Deferred credits and other liabilities		339			342			187			269
Total long-term liabilities		2,615			2,541			2,069			2,612

Commitments and Contingencies (see Note 8)

Total liabilities and capitalization	$	12,448		$	12,196		$	12,273		$	13,803


	Three months ended March 31,						Three months March 31,
(millions)	2022			2021			2023			2022
Revenues
Electric	$	509		$	446		$	552		$	509
Gas		182			153			0			182
Total revenues		691			599			552			691
Expenses
Fuel		128			109			137			128
Purchased power		7			18			10			7
Cost of natural gas sold		72			50			0			72
Operations and maintenance		147			128			118			147
Depreciation and amortization		105			106			104			105
Taxes, other than income		61			54			52			61
Total expenses		520			465			421			520
Income from operations		171			134			131			171
Other income
Allowance for equity funds used during construction		8			10			3			8
Interest income from affiliates								8			0
Other income, net		3			1			10			3
Total other income		11			11			21			11
Interest charges
Interest expense		38			38			56			38
Interest expense to affiliates								3			0
Allowance for borrowed funds used during construction		(3	)		(5	)		(1	)		(3	)
Total interest charges		35			33			58			35
Income before provision for income taxes		147			112			94			147
Provision for income taxes		29			20			15			29
Net income	$	118		$	92		$	79		$	118
Comprehensive income	$	118		$	92		$	79		$	118


								Accumulated														Accumulated
								Other														Other
			Common		Retained			Comprehensive			Total					Common			Retained			Comprehensive			Total
(millions, except share amounts)	Shares		Stock		Earnings			Loss			Capital			Shares		Stock			Earnings			Loss			Capital
Three months ended March 31, 2023
Balance, December 31, 2022															10	$	5,075		$	346		$	(1	)	$	5,420
Net income																				79						79
Separation of PGS equity from TEC																	(871	)		(121	)					(992	)
Equity contributions from Parent																	100									100
Dividends to Parent																				(91	)					(91	)
Other																	1									1
Balance, March 31, 2023															10	$	4,305		$	213		$	(1	)	$	4,517

Three months ended March 31, 2022
Balance, December 31, 2021		10		4,470	$	323		$	(1	)	$	4,792			10		4,470		$	323		$	(1	)	$	4,792
Net income						118						118								118						118
Equity contributions from Parent				175								175					175									175
Dividends to Parent						(85	)					(85	)							(85	)					(85	)
Balance, March 31, 2022		10	$	4,645	$	356		$	(1	)	$	5,000			10	$	4,645		$	356		$	(1	)	$	5,000

Three months ended March 31, 2021
Balance, December 31, 2020		10		3,890	$	327		$	(1	)	$	4,216
Net income						92						92
Equity contributions from Parent				155								155
Dividends to Parent						(88	)					(88	)
Balance, March 31, 2021		10	$	4,045	$	331		$	(1	)	$	4,375


TECO Energy Benefit Cost
(millions)	Pension Benefits						Other Postretirement Benefits				Pension Benefits						Other Postretirement Benefits
Three months ended March 31,	2022			2021			2022		2021		2023			2022			2023		2022
Components of net periodic benefit cost
Service cost	$	4		$	5		$	0	$	0	$	4		$	4		$	0	$	0
Interest cost		6			5			1		1		9			6			2		1
Expected return on assets		(13	)		(13	)		0		0		(14	)		(13	)		0		0
Amortization of:
Actuarial loss (gain)		4			6			1		1		1			4			0		1
Net periodic benefit cost	$	1		$	3		$	2	$	2	$	0		$	1		$	2	$	2


					Fuel		Long-term				Demand										Fuel		Long-term				Demand
			Capital		and		Service		Operating		Side				Purchased				Capital		and		Service		Operating		Side
(millions)	Transportation		Projects		Gas Supply		Agreements		Leases		Management		Total		Power		Transportation		Projects		Gas Supply (1)		Agreements		Leases		Management		Total

2022	$	182	$	224	$	393	$	24	$	2	$	4	$	829
2023		224		63		38		29		3		1		358	$	7	$	103	$	368	$	223	$	20	$	2	$	4	$	727
2024		215		2		0		27		3		1		248		0		130		111		36		36		3		5		321
2025		200		1		0		19		2		1		223		0		126		5		4		22		2		4		163
2026		197		0		0		19		1		0		217		0		124		4		4		23		1		1		157
2027																0		124		0		4		22		1		1		152
Thereafter		1,868		0		0		52		48		0		1,968		0		924		0		1		50		46		0		1,021
Total future minimum payments	$	2,886	$	290	$	431	$	170	$	59	$	7	$	3,843	$	7	$	1,531	$	488	$	272	$	173	$	55	$	15	$	2,541


(millions, except customers)	Operating Revenues						Therms
Three months ended March 31,	2022		2021		% Change		2022		2021		% Change
By Customer Type
Residential	$	75	$	67		12		39		38		3
Commercial		56		53		6		147		140		5
Industrial		5		4		25		120		112		7
Power generation		2		2		0		189		218		(13	)
Off system sales		15		6		150		25		15		67
Other operating revenues		26		19		37
Total	$	179	$	151		19		520		523		(1	)
By Sales Type
System supply	$	108	$	88		23		73		62		18
Transportation		45		44		2		447		461		(3	)
Other operating revenues		26		19		37
Total	$	179	$	151		19		520		523		(1	)
Customers at March 31, (thousands)		452		432		5



(millions)
Credit facilities	$	1,300
Drawn amounts/letters of credit		(814	)
Available credit facilities		486
Cash and short-term investments		20
Total liquidity	$	506

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Non-accelerated filer

Smaller reporting company

Emerging growth company