Tampa Electric renews fuel transportation contract
TAMPA, October 10, 2003
Tampa Electric Company announced today that is has signed a five-year contract renewal with TECO Transport Corporation for integrated waterborne transportation services. The contract is effective on January 1, 2004.
The contract calls for river and ocean transportation along with terminal storage and blending services for up to 5.5 million tons of coal annually for 2004 through 2008.
The new contract is priced at prevailing market rates, is at a lower price than the current contract, and represents savings to customers.
During the annual cost recovery hearings scheduled for November 12 -14, the Florida Public Service Commission (PSC) will review the selection process as well as the transportation charges to ensure that the services are fairly priced with reasonable terms and conditions.
Transportation costs, which are necessary costs of business in moving coal to Tampa Electric's power plants, are included in Tampa Electrics overall fuel costs for generating electricity for its more than 600,000 customers.
TECO Transport is a subsidiary of TECO Energy, Inc. and provides full-service river terminal and ocean transportation and handling services to Tampa Electric and others. TECO Transport was originally created to provide an economic waterborne fuel transportation service as an alternative to foreign oil imports.
Tampa Electric Company is the principal subsidiary of TECO Energy, Inc. (NYSE:TE), a diversified holding company of energy-related businesses that include Peoples Gas System, TECO Power Services, TECO Transport, TECO Coal and TECO Solutions.