TECO Energy and the project companies extend discussions with the Union and Gila River projects lending banks

TAMPA, Fla., Feb. 2, 2004 — TECO Energy, Inc. announced that it, the Union and Gila River project companies and the lending banks have orally entered into a standstill agreement through February 5, 2004 relating to matters covered by the Suspension Agreement and those that have arisen or may arise thereafter relating to the project debt.

Under this agreement, the lending banks have agreed not to exercise remedies related to the projects while discussions continue between TECO Energy, the project companies and the lending banks.

TECO Energy will provide additional information on the status of these projects at the time of its fourth quarter earnings release on Feb. 5, 2004.

Additional information related to the company and its operations is available at TECO Energy’s web site at .

TECO Energy is a diversified energy-related holding company headquartered in Tampa. Its principal businesses are Tampa Electric, Peoples Gas System, TECO Wholesale Generation (formerly known as TECO Power Services), TECO Transport, TECO Coal and TECO Solutions.