TECO Energy Inc.’s (TE) subsidiary, Tampa Electric Company continues to do its bit to lower the emission of green house gas in the environment. As in the past, the company will encourage its customers to be a part of the green energy mission through its renewable energy program.
Tampa Electric has chosen Earth Day, which is held on April 22, for this cause and has requested customers to “Go Green” by purchasing renewable energy for their homes and businesses. The company is offering renewable energy in 200 kilowatt-hours (kWh) blocks for $5.00 each per month, under this program.
The renewable energy program was initiated by this TECO Energy unit more than a decade earlier and since then the consumers have used more than 41 million kWh of electricity generated from renewable sources, resulting in reduction of more than 35,000 tons of carbon dioxide emission in the atmosphere.
Tampa Electric was a major contributor to TECO Energy’s total earnings in 2010. This segment registered an 18% year-over-year growth driven by higher base revenues from favorable weather, new base rates, a 0.6% rise in the average number of customers and higher earnings on nitrogen oxide control projects.
The TECO energy unit expects customer growth in 2011 to continue to match 2010 levels. However, a more normal weather pattern forecast for 2011 will bring down sales from 2010 levels, which experienced higher sales due to unusual weather.
TECO Energy expects earnings per share in 2011 to be between $1.25 and $1.40. Our Zacks Consensus Estimate for 2011 presently stands at $1.37, on the higher side of the guided range.
Tampa Electric Company is a regulated, wholly owned subsidiary of TECO Energy and runs both electric and gas operations.
TECO Energy currently retains a Zacks #3 Rank (short-term Hold rating). We also maintain our Neutral rating on the stock. TECO Energy competes head to head with NextEra Energy Inc. (NEE), Progress Energy Inc. (PGN) and Southern Company (SO).
Based in Tampa, Florida, TECO Energy is involved in the generation, purchase, transmission, distribution, and sale of electric energy in Florida.
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