| Letter to the Shareholders | ||||||
Last year at this time, I promised you a year of growth and success in 2000. We have delivered on this promise with double-digit earnings growth every quarter. This we achieved by executing the three-pronged business strategy that focuses attention on our Florida operations, our independent power company and our transportation business. Our loyal adherence to this strategy continues to pay off. In 2000, we delivered 10 percent earnings growth in our core businesses. And with the positive effect of high natural gas prices on TECO Coalbed Methane and the success of our new synthetic fuel production interests at TECO Coal, 2000 earnings per share growth overall totaled 18 percent. Projects announced this year have added definition to how we will maintain this momentum going forward. Through these developments, we are expanding the competitive nature of our company, transforming it from being primarily regulated to being primarily unregulated. And we’re doing so in a financially disciplined manner that we’re confident will provide continued strong earnings growth. Independent Power With a number of sizeable generation projects announced late last year, TECO Power Services rapidly emerged as one of the top independent power companies in the nation. Upon completion of these projects, TPS would be able to serve customers in 18 states, spanning the southern half of the nation. The company now has interests in more than 7,000 net megawatts of generation, either operating, in construction or under development. Florida Operations Tampa Electric Company and Peoples Gas System enjoyed healthy customer growth of 3 and 4 percent, respectively, in 2000. Tampa Electric continued to move forward with the repowering of its Gannon Power Station from coal to natural gas. The company also brought Polk Power Station’s second unit into commercial operation. Peoples Gas continues to expand into unserved parts of the state. This year, the company began a pipeline expansion into Northeast Florida. Our energy services subsidiary, TECO BGA, combined its operations with BCH Mechanical, Inc., one of the leading mechanical contracting firms in Florida. The resulting new TECO Energy subsidiary, TECO Solutions, provides customized energy-efficient design, construction, operations and maintenance services for commercial and public sector customers. Transportation Long-term contracts and increased vessel utilization led to a solid contribution to earnings from our TECO Transport businesses. TECO Transport also added strategic assets to its fleet to serve long-term customer contracts. The company experienced solid northbound river shipments and record U.S. government grain shipments this year. Full Speed Ahead Our superior performance in all areas of TECO Energy resulted in record revenues of $2.3 billion and record earnings per share of $1.99. Clearly, we are pleased with our growth in 2000 and the performance of our stock, but this is only the beginning. What we’ve set in place this year is the foundation for TECO Energy’s growth in 2001, 2002 and beyond. Florida’s energy market is in the early stages of a movement toward increased competition. This is a transition TECO Energy supports, and we’re prepared for a growing role in a restructured Florida market, when the time comes. And, in advance of that transition, we’re expanding our company outside the Florida market, establishing ourselves as an independent power leader in the United States. These developments have put in place the momentum that will enable us to continue to grow our business and our shareholder value –– so, full speed ahead! Sincerely,  Robert D. Fagan Chairman of the Board, President and Chief Executive Officer February 8, 2001 | ||||||
