Summary of TECO ENERGY INC

Costs Associated with Exit or Disposal Activities, Change in Directors or Princip

Item 2.05 - Costs Associated with Exit or Disposal Activities

On July 30, 2009, TECO Energy, Inc. (the "Corporation") announced organizational changes and a new senior executive team structure as part of its response to industry changes, economic uncertainties and the overall need to maintain a lean and efficient organization. As a second step in response to these factors, on August 31, 2009, the Corporation committed to a total reduction in force of approximately 225 jobs. The reduction in force is expected to be substantially completed by September 30, 2009. In connection with the reduction in force, the Corporation currently expects to incur total costs of approximately $25-30 million related to severance and related benefits and expects to recognize the majority of these charges in the quarter ended September 30, 2009. The Corporation's wholly-owned subsidiary, Tampa Electric Company, expects to incur approximately $20-25 million of such costs and expects to recognize the majority of these charges in the quarter ended September 30, 2009. The estimated cash expenditures related to these actions are expected to be in a range between $20-25 million during the third and fourth quarters of 2009 and early 2010.

Item 5.02 - Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

(e) On July 30, 2009, TECO Energy, Inc. filed a Current Report on Form 8-K reporting on a management reorganization in which the Corporation's subsidiary, Tampa Electric Company (the "Company"), appointed Gordon L. Gillette to replace its former President (Charles R. Black) and President of its Peoples Gas System Division (William N. Cantrell). In connection with such reorganization, the Company entered into a Retirement Agreement and General Release with Mr. Black dated August 31, 2009 (the "Agreement"). The Agreement provides for Mr. Black to receive a payment equal to 1.5 times his base salary plus target bonus and a credit of two years additional age and service to be applied toward his retirement benefits. The Agreement also provides that, if the threshold performance goal is achieved for the Corporation's 2009 Annual Incentive Plan, Mr. Black will receive an amount equal to his target incentive award with respect to his individual goals under such Plan, and an amount calculated based on corporate performance for the financial incentive goals under such Plan (in both cases prorated for 8 months). The Agreement provides for a waiver of the retiree portion of the retiree medical premium for 18 months and an option to participate in a 12-month outplacement program. Mr. Black's time-vested restricted stock vested and he received the number of performance-based restricted shares that were earned based on performance as of August 31, 2009. His stock options will remain exercisable for the remainder of their respective 10-year terms.

The foregoing summary of the Agreement is qualified in its entirety by reference to the Agreement, which is filed as Exhibit 10.1 hereto, and is incorporated, herein by reference.