Item 8.01: Other Events

On December 19, 2012, the closing occurred on the previously announced sale of TECO Energy, Inc.'s remaining Guatemalan operations. The December 19, 2012 closing related to the sale to C.F. Financeco, Ltd. of (i) the San José power station and solid fuel handling and port facilities in Guatemala for a purchase price of $213.5 million and (ii) the remaining TECO Guatemala operations company, for a purchase price of $1.5 million. As previously reported, the sale of the Alborada power station closed in September 2012. While TECO Energy, Inc. and its subsidiaries will no longer have assets or operations in Guatemala, its subsidiary, TECO Guatemala, Inc., has retained its rights under its arbitration claim filed against the Republic of Guatemala in October 2010 under the Dominican Republic Central America - United States Free Trade Agreement (DR -
CAFTA).

Net proceeds from the sale of the San José power station and solid fuel handling and port facilities and remaining TECO Guatemala operations, after estimated transaction-related costs, were approximately $209.8 million. TECO Energy utilized $25.3 million of the net proceeds to repay San José power station project debt at closing. As previously reported, the sale resulted in an after-tax book loss and an after-tax charge associated with foreign tax credits. An after-tax book loss and charge of $31.2 million and $22.6 million, respectively, related to the sales of all Guatemalan operations, were recorded in the third quarter of 2012, and will be updated as of the closing date. Any changes to these amounts, which are not expected to be material, will be reflected in the fourth quarter of 2012. The TECO Guatemala segment was accounted for as discontinued operations beginning in the third quarter of 2012.

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