UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File No	Exact name of each registrant as specified in its charter, state of incorporation, address of principal executive offices, telephone number	I.R.S. Employer Identification Number
1-5007	TAMPA ELECTRIC COMPANY	59-0475140
	(a Florida corporation) TECO Plaza 702 N. Franklin Street Tampa, Florida 33602 (813) 228-1111

Securities registered or to be registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
None.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ NO ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ NO ☐

Indicate by check mark whether Tampa Electric Company is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark whether Tampa Electric Company has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether Tampa Electric Company is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ☐ NO ☒

As of May 7, 2025, there were 10 shares of Tampa Electric Company’s common stock issued and outstanding, all of which were held, beneficially and of record, by TECO Holdings, Inc.

Tampa Electric Company meets the conditions set forth in General Instruction (H)(1)(a) and (b) of Form 10-Q and is therefore filing this form with the reduced disclosure format specified in General Instruction H(2) of Form 10-Q.

ACRONYMS

Acronyms used in this and other filings with the U.S. Securities and Exchange Commission in 2025 and 2024 include the following:

Term	Meaning
AFUDC	allowance for funds used during construction
AFUDC-debt	debt component of allowance for funds used during construction
AFUDC-equity	equity component of allowance for funds used during construction
APBO	accumulated postretirement benefit obligation
ARO	asset retirement obligation
ASC	Accounting Standards Codification
ASU	Accounting Standards Update
CCRs	coal combustion residuals
CO2	carbon dioxide
CODM	chief operating decision maker
Emera	Emera Inc., a geographically diverse energy and services company headquartered in Nova Scotia, Canada and the indirect parent company of Tampa Electric Company
EPA	U.S. Environmental Protection Agency
ERISA	Employee Retirement Income Security Act
EUSHI	Emera US Holdings Inc., a wholly owned subsidiary of Emera, which is the sole shareholder of TECO Holdings’ common stock as of April 1, 2024, and the sole shareholder of TECO Energy's common stock prior to April 1, 2024
FASB	Financial Accounting Standards Board
FDEP	Florida Department of Environmental Protection
FERC	Federal Energy Regulatory Commission
FPSC	Florida Public Service Commission
GHG	greenhouse gas
IRS	Internal Revenue Service
ITCs	investment tax credits
MD&A	the section of this report entitled Management’s Discussion and Analysis of Financial Condition and Results of Operations
MGP	manufactured gas plant
MMBTU	one million British Thermal Units
MW	megawatt(s)
MWH	megawatt-hour(s)
NAV	net asset value
Note	Note to financial statements
NPNS	normal purchase normal sale
O&M expenses	operations and maintenance expenses
OCI	other comprehensive income
OPEB	other postemployment benefits
Parent	the direct parent company of Tampa Electric Company, which is TECO Holdings, Inc. as of April 1, 2024, and TECO Energy, Inc., prior to April 1, 2024
PBO	projected benefit obligation
PGS	Peoples Gas System, the former gas division of Tampa Electric Company
PGSI	Peoples Gas System, Inc.
PPA	power purchase agreement
PRP	potentially responsible party
PTCs	production tax credits
ROE	return on common equity
Regulatory ROE	return on common equity as determined for regulatory purposes
S&P	Standard and Poor’s
SEC	U.S. Securities and Exchange Commission
SERP	Supplemental Executive Retirement Plan
SPP	storm protection plan
TEC	Tampa Electric Company
TECO Energy	TECO Energy, Inc., the direct parent company of Tampa Electric Company prior to April 1, 2024
TECO Holdings	TECO Holdings, Inc., the direct parent company of Tampa Electric Company as of April 1, 2024
U.S. GAAP	generally accepted accounting principles in the United States

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CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION

This Form 10-Q contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. Forward-looking statements generally can be identified by words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "predicts," "projects," "will be," "will continue," "may," "could," "will likely result," and similar expressions. The factors that could cause actual results to differ materially from the forward-looking statements made by TEC include those factors discussed herein, including those factors discussed with respect to TEC in (1) TEC’s 2024 Annual Report on Form 10-K in (a) Part I, Item 1A. Risk Factors, (b) Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) Part II, Item 8. Financial Statements: Note 8, Commitments and Contingencies; (2) this Quarterly Report on Form 10-Q in (a) Part 1, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (b) Part 1, Item 1. Financial Statements: Note 8, Commitments and Contingencies, and (3) other factors discussed in filings with the SEC by TEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this Report. TEC does not undertake any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this Form 10-Q.

All references to “dollars” and “$” in this and other filings with the U.S. Securities and Exchange Commission are references to U.S. dollars, unless specifically indicated otherwise.

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PART I. FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

TAMPA ELECTRIC COMPANY

Condensed Balance Sheets

Unaudited

Assets	March 31,			December 31,
(millions)	2025			2024
Property, plant and equipment
Utility plant, at original costs	$	14,749		$	14,433
Accumulated depreciation		(3,432	)		(3,348	)
Utility plant, net		11,317			11,085
Other property		19			18
Total property, plant and equipment, net		11,336			11,103
Current assets
Cash and cash equivalents		8			4
Receivables, less allowance for credit losses of $1 and $1 at March 31, 2025 and December 31, 2024, respectively		228			220
Due from affiliates		24			13
Inventories, at average cost
Fuel		40			45
Materials and supplies		201			191
Regulatory assets		411			343
Prepayments and other current assets		29			32
Total current assets		941			848
Other assets
Regulatory assets		1,020			1,098
Other		65			58
Total other assets		1,085			1,156
Total assets	$	13,362		$	13,107

The accompanying notes are an integral part of the condensed financial statements.

4

TAMPA ELECTRIC COMPANY

Condensed Balance Sheets - continued

Unaudited

Liabilities and Capitalization	March 31,			December 31,
(millions)	2025			2024
Capitalization
Common stock	$	5,255		$	5,105
Accumulated other comprehensive loss		(1	)		(1	)
Retained earnings		248			218
Total capital		5,502			5,322
Long-term debt		4,529			3,935
Total capitalization		10,031			9,257
Current liabilities
Notes payable		158			636
Accounts payable		604			666
Due to affiliates		9			18
Customer deposits		126			126
Regulatory liabilities		129			146
Accrued interest		46			31
Accrued taxes		34			12
Other		69			58
Total current liabilities		1,175			1,693
Long-term liabilities
Deferred income taxes		984			976
Regulatory liabilities		730			758
Investment tax credits		230			224
Deferred credits and other liabilities		212			199
Total long-term liabilities		2,156			2,157
Commitments and Contingencies (see Note 8)
Total liabilities and capitalization	$	13,362		$	13,107

The accompanying notes are an integral part of the condensed financial statements.

5

TAMPA ELECTRIC COMPANY

Condensed Statements of Income and Comprehensive Income

Unaudited

	Three months ended March 31,
(millions)	2025			2024
Revenues
Electric	$	649		$	548
Expenses
Fuel		123			133
Purchased power		38			8
Operations and maintenance		142			134
Depreciation and amortization		122			112
Taxes, other than income		56			52
Total expenses		481			439
Income from operations		168			109
Other income
Allowance for equity funds used during construction		10			5
Other income, net		6			6
Total other income		16			11
Interest charges
Interest expense		55			51
Allowance for borrowed funds used during construction		(3	)		(2	)
Total interest charges		52			49
Income before provision for income taxes		132			71
Provision for income taxes		18			8
Net income	$	114		$	63
Comprehensive income	$	114		$	63

The accompanying notes are an integral part of the condensed financial statements.

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TAMPA ELECTRIC COMPANY

Condensed Statements of Cash Flows

Unaudited

	Three months ended March 31,
(millions)	2025			2024
Cash flows from operating activities
Net income	$	114		$	63
Adjustments to reconcile net income to cash from operating activities:
Depreciation and amortization		122			112
Deferred income taxes and investment tax credits		13			6
Allowance for equity funds used during construction		(10	)		(5	)
Deferred recovery clauses		(35	)		42
Regulatory assets and liabilities		26			19
Pension and post-retirement asset and liabilities		(2	)		(3	)
Other		2			(4	)
Changes in working capital:
Receivables, less allowance for credit losses		(19	)		46
Inventories		(5	)		(3	)
Taxes accrued		21			20
Interest accrued		15			21
Accounts payable		(112	)		(112	)
Other		1			3
Cash flows from operating activities		131			205
Cash flows used in investing activities
Capital expenditures		(309	)		(268	)
Net proceeds from sale of assets		0			3
Cash flows used in investing activities		(309	)		(265	)
Cash flows from financing activities
Equity contributions from Parent		150			300
Proceeds from long-term debt issuance		594			496
Net decrease in short-term debt (maturities of 90 days or less)		(478	)		(650	)
Dividends to Parent		(84	)		(85	)
Cash flows from financing activities		182			61
Net increase in cash and cash equivalents		4			1
Cash and cash equivalents at beginning of period		4			5
Cash and cash equivalents at end of period	$	8		$	6
Supplemental disclosure of non-cash activities
Change in accrued capital expenditures	$	45		$	(11	)

The accompanying notes are an integral part of the condensed financial statements.

7

TAMPA ELECTRIC COMPANY

Condensed Statements of Capitalization

Unaudited

								Accumulated
								Other
			Common		Retained			Comprehensive			Total
(millions, except share amounts)	Shares		Stock		Earnings			Loss			Capital
Three months ended March 31, 2025
Balance, December 31, 2024		10	$	5,105	$	218		$	(1	)	$	5,322
Net income						114						114
Equity contributions from Parent				150								150
Dividends to Parent						(84	)					(84	)
Balance, March 31, 2025		10	$	5,255	$	248		$	(1	)	$	5,502
Three months ended March 31, 2024
Balance, December 31, 2023		10		4,505	$	219		$	(1	)	$	4,723
Net income						63						63
Equity contributions from Parent				300								300
Dividends to Parent						(85	)					(85	)
Balance, March 31, 2024		10	$	4,805	$	197		$	(1	)	$	5,001

The accompanying notes are an integral part of the condensed financial statements.

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TAMPA ELECTRIC COMPANY

NOTES TO CONDENSED FINANCIAL STATEMENTS

UNAUDITED

1. Summary of Significant Accounting Policies

See TEC’s Annual Report on Form 10-K for the year ended December 31, 2024 for a complete discussion of accounting policies. The significant accounting policies for TEC include the following:

Principles of Consolidation and Basis of Presentation

TEC is comprised of the electric division, referred to as Tampa Electric, and prior to January 1, 2023, the natural gas division, referred to as PGS. Prior to April 1, 2024, TEC was a wholly owned subsidiary of TECO Energy, which is an indirect, wholly owned subsidiary of Emera. On April 1, 2024, TECO Energy distributed its investment in TEC to TECO Holdings, Inc. in a transaction intended to qualify as a tax-free reorganization. This new corporation is also an indirect, wholly owned subsidiary of Emera.

In the opinion of management, the unaudited condensed financial statements include all adjustments that are of a recurring nature and necessary to state fairly the financial position of TEC as of March 31, 2025 and December 31, 2024, and the results of operations and cash flows for the periods ended March 31, 2025 and 2024. The results of operations for the three months ended March 31, 2025 are not necessarily indicative of the results that can be expected for the entire fiscal year ending December 31, 2025.

The use of estimates is inherent in the preparation of financial statements in accordance with U.S. GAAP. Actual results could differ from these estimates. The year-end Condensed Balance Sheet was derived from audited financial statements; however, this quarterly report on Form 10-Q does not include all year-end disclosures required for an annual report on Form 10-K by U.S. GAAP.

Receivables and Allowance for Credit Losses

Receivables on the Condensed Balance Sheets include receivables from contracts with customers, which consist of services to residential, commercial, industrial and other customers, totaling $228 million and $219 million as of March 31, 2025 and December 31, 2024, respectively. An allowance for credit losses is established based on TEC’s collection experience and reasonable and supportable forecasts that affect the collectibility of the reported amount. Circumstances that could affect TEC’s estimates of credit losses include, but are not limited to, customer credit issues, generating fuel prices, customer deposits and general economic conditions. Accounts are reserved in the allowance or written off once they are deemed to be uncollectible.

As of March 31, 2025 and December 31, 2024, unbilled revenues of $72 million and $68 million, respectively, are included in the “Receivables” line item on the Condensed Balance Sheets.

Accounting for Franchise Fees and Gross Receipts

TEC is allowed to recover certain costs from customers on a dollar-for-dollar basis through rates approved by the FPSC. The amounts included in customers’ bills for franchise fees and gross receipt taxes are included as revenues on the Condensed Statements of Income. Franchise fees and gross receipt taxes payable by TEC are included as an expense on the Condensed Statements of Income in “Taxes, other than income”. These amounts totaled $29 million and $26 million for the three months ended March 31, 2025 and 2024, respectively.

2. New Accounting Pronouncements

Income Tax Disclosures

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures. The standard enhances the transparency, decision usefulness and effectiveness of income tax disclosures by requiring consistent categories and greater disaggregation of information in the reconciliation of income taxes computed using the enacted statutory income tax rate to the actual income tax provision and effective income tax rate, as well as the disaggregation of income taxes paid (refunded) by jurisdiction. The standard also requires disclosure of income (loss) before provision for income taxes and income tax expense (benefit) in accordance with U.S. Securities and Exchange Commission (SEC) Regulation S-X 210.4-08(h), Rules of General Application – General Notes to Financial Statements: Income Tax Expense, and the removal of disclosures no longer considered cost beneficial or relevant. The guidance will be effective for annual reporting periods beginning after December 15, 2024. Early adoption is permitted. The standard will be applied on a prospective basis, with retrospective application permitted. TEC is currently evaluating the impact of adoption of the standard on its financial statement disclosures.

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Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU 2024-03, Income Statement Reporting–Comprehensive Income–Expense Disaggregation Disclosures (Subtopic 220-40), Disaggregation of Income Statement Expenses. The standard update improves the disclosures about a public business entity’s expenses by requiring more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation and amortization) included within income statement expense captions. The guidance will be effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The standard updates are to be applied prospectively with the option for retrospective application. TEC is currently evaluating the impact of adoption of the standard update on its financial statement disclosures.

3. Regulatory

Tampa Electric Base Rates

On April 2, 2024, Tampa Electric requested a base rate increase, reflecting an increased revenue requirement of $297 million, effective January 1, 2025, and additional adjustments of $100 million and $72 million for 2026 and 2027, respectively. Prior to the rate case hearing, Tampa Electric submitted revisions to its requested base rate increase to reflect items that included production tax credits, energy storage life expectancy, and the company’s grid reliability and resilience project. On December 3, 2024, the FPSC rendered a decision during a Special Agenda and the final order, reflecting such decision, was issued on February 3, 2025. The FPSC decision includes an increase of $185 million in 2025 and adjustments of $87 million and $9 million in 2026 and 2027, respectively. The decision also allowed for equity in the capital structure to continue to be 54% from investor sources of capital. The allowed regulatory ROE range is 9.50% to 11.50% with a 10.50% midpoint, effective January 1, 2025. On February 18, 2025, a motion for reconsideration on certain aspects of the rate case order was filed by an intervening party with the FPSC. On May 6, 2025, the FPSC denied the motion for reconsideration, except with respect to immaterial calculation corrections. On March 3, 2025, two intervening parties each filed a notice of appeal to the Florida Supreme Court regarding the outcome of Tampa Electric's 2024 base rate proceeding. As of May 8, 2025, the intervening parties have not filed their briefs related to the appeal.

Tampa Electric Storm Restoration Cost Recovery

In accordance with Tampa Electric’s 2021 rate case settlement agreement and continued with Tampa Electric's 2024 rate case order, in the event of a named storm that results in damage to its system, Tampa Electric can petition the FPSC to seek recovery of those costs over a 12-month period or longer as determined by the FPSC, as well as replenish its storm reserve regulatory liability of $56 million. Based on an FPSC order, if the charges to the storm reserve exceed the reserve liability account balance, the excess is to be carried as a regulatory asset. At March 31, 2025 and December 31, 2024, the balance in the regulatory asset for storm restoration costs was $354 million and $377 million, respectively.

Hurricane Helene made landfall on September 26, 2024. Tampa Electric was impacted by Hurricane Helene, resulting in a peak number of customers out of approximately 100,000. As of December 31, 2024, TEC deferred $49 million related to Hurricane Helene to the storm reserve for future recovery, with a minimal impact to earnings.

​Hurricane Milton, the worst weather event to impact the area in over 100 years, made landfall on October 9, 2024. Tampa Electric was impacted by Hurricane Milton, resulting in a peak number of customers out of approximately 600,000. As of December 31, 2024, TEC deferred $340 million related to Hurricane Milton to the storm reserve for future recovery, with a minimal impact to earnings.

Restoration costs for the storms described above are deferred and will be collected from customers in subsequent periods. On February 4, 2025, the FPSC approved Tampa Electric’s petition filed on December 27, 2024 for the recovery, over an 18-month period beginning in March 2025, of $466 million to replenish the storm reserve for costs associated with Hurricane Idalia, Hurricane Debby, Hurricane Helene and Hurricane Milton and the associated interest. The amount of cost-recovery is subject to a true-up mechanism with the FPSC.

Regulatory Assets and Liabilities

Details of the regulatory assets and liabilities are presented in the following table:

10

Regulatory Assets and Liabilities
(millions)	March 31, 2025		December 31, 2024
Regulatory assets:
Regulatory tax asset (1)	$	121	$	117
Cost-recovery clauses (2)		31		20
Capital cost recovery for early retired assets (3)		515		513
Capital cost recovery for retired Polk Unit 1 components (4)		139		142
Postretirement benefits (5)		241		243
Storm reserve (6)		354		377
Other		30		29
Total regulatory assets		1,431		1,441
Less: Current portion		411		343
Long-term regulatory assets	$	1,020	$	1,098
Regulatory liabilities:
Regulatory tax liability (7)	$	452	$	456
Cost-recovery clauses - deferred balances (2)		56		80
Accumulated reserve - cost of removal (8)		292		304
Deferred production tax credits (9)		52		57
Other		7		7
Total regulatory liabilities		859		904
Less: Current portion		129		146
Long-term regulatory liabilities	$	730	$	758

(1)The regulatory tax asset is primarily associated with the depreciation and recovery of AFUDC-equity. This asset does not earn a return but rather is included in the capital structure, which is used in the calculation of the weighted cost of capital used to determine revenue requirements. It will be recovered over the expected regulatory life of the related assets.

(2)These assets and liabilities are related to FPSC clauses and riders. They are recovered or refunded through cost-recovery mechanisms approved by the FPSC on a dollar-for-dollar basis in a subsequent period.

(3)This regulatory asset is related to the remaining net book value of Big Bend Units 1 through 3 and smart meter assets that were retired. The balance earns a rate of return as permitted by the FPSC and will be recovered as a separate line item on customer bills for a period of 15 years, beginning in 2022 through 2036.

(4)This regulatory asset is related to the remaining net book value of certain components of Polk Unit 1 that were early retired on December 31, 2024. The balance earns a rate of return as permitted by the FPSC and will be recovered through base rates over an 11-year recovery period beginning on January 1, 2025.

(5)This asset is related to the deferred costs of postretirement benefits and it is amortized over the remaining service life of plan participants. Deferred costs of postretirement benefits that are included in expense are recognized as cost of service for rate-making purposes as permitted by the FPSC.

(6)See "Tampa Electric Storm Restoration Cost Recovery" above for information regarding this reserve. The regulatory asset is included in rate base and earns a rate of return as permitted by the FPSC.

(7)The regulatory tax liability is primarily related to the revaluation of TEC’s deferred income tax balances recorded on December 31, 2017 at the lower corporate income tax rate due to U.S. tax reform. The liability related to the revaluation of the deferred income tax balances is amortized and returned to customers through rate reductions or other revenue offsets based on IRS regulations and the settlement agreement for tax reform benefits approved by the FPSC.

(8)This item represents the non-ARO cost of removal in the accumulated reserve for depreciation. AROs are costs for legally required removal of property, plant and equipment. Non-ARO cost of removal represents estimated funds received from customers through depreciation rates to cover future non-legally required cost of removal of property, plant and equipment, net of salvage value upon retirement, which reduces rate base for ratemaking purposes. This liability is reduced as costs of removal are incurred.

(9)This regulatory liability represents the deferred benefit for production tax credits (PTC) available for qualifying solar facilities placed in service beginning January 1, 2022 through December 31, 2024, which reduced income tax expense and reduces rate base for ratemaking purposes. Following the recommendation of the FPSC, these PTC deferrals are being amortized over a three-year period starting in 2025.

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4. Income Taxes

Income Tax Expense

TEC is included in a consolidated U.S. federal income tax return with EUSHI and its subsidiaries. TEC’s income tax expense is based upon a standalone return method, modified for the benefits-for-loss allocation in accordance with EUSHI's tax sharing agreement. To the extent that TEC’s cash tax positions are settled differently than the amount reported as realized under the tax sharing agreement, the difference is accounted for as either a capital contribution or a distribution.

TEC’s effective tax rates for the three months ended March 31, 2025 and 2024 were 13.6% and 11.3%, respectively. The March 31, 2025 and 2024 effective tax rates are an estimate of the annual effective income tax rate. TEC’s effective tax rate for the three months ended March 31, 2025 and 2024 differed from the statutory rate principally due to the tax benefit from production tax credits and amortization of the regulatory tax liability resulting from tax reform. The effective tax rate for the three months ended March 31, 2025 is higher compared to the same period in 2024 primarily due to an increase in pre-tax income, partially offset by higher benefit from production tax credits related to solar facilities. See Note 3 for further information regarding the regulatory tax liability.

5. Employee Postretirement Benefits

In 2024, TEC was a participant in the comprehensive retirement plans of TECO Energy, LLC (formerly known as TECO Energy, Inc. prior to April 1, 2024). Effective January 1, 2025, the comprehensive retirement plans were transferred to TECO Holdings, Inc. The following table presents detail related to TECO Holdings' periodic benefit cost for pension and other postretirement benefits. Amounts disclosed for TECO Holdings' pension benefits include the amounts related to its qualified pension plan and non-qualified, non-contributory SERP and Restoration Plan.

TECO Holdings Benefit Cost
(millions)	Pension Benefits						Other Postretirement Benefits
Three months ended March 31,	2025			2024			2025		2024
Components of net periodic benefit cost
Service cost	$	4		$	4		$	0	$	0
Interest cost		9			9			2		2
Expected return on assets		(13	)		(14	)		0		0
Amortization of actuarial loss (gain)		2			2			0		(1	)
Net periodic benefit cost	$	2		$	1		$	2	$	1

TEC’s portion of the net periodic benefit cost for the three months ended March 31, 2025 and 2024, respectively, was $1 million and zero for pension benefits, and $1 million and $1 million for other postretirement benefits. TEC’s portion of net periodic benefit costs for pension and other benefits is included as an expense on the Condensed Statements of Income in “Operations & maintenance”.

TECO Holdings assumed a long-term EROA of 7.05% and a discount rate of 5.66% for pension benefits under its qualified pension plan for 2025. For TECO Holdings' other postretirement benefits, TECO Energy used a discount rate of 5.69% for 2025.

TECO Holdings made contributions of $4 million and $4 million to its qualified pension plan in the three months ended March 31, 2025 and 2024, respectively. TEC’s portion of these contributions was $3 million and $2 million during the three months ended March 31, 2025 and 2024, respectively. TECO Holdings expects to make contributions to the pension plan of $14 million for the remainder of 2025. TEC estimates its portion of the remaining 2025 contributions to be $8 million. See Note 1 for further information regarding TECO Holdings.

Included in the benefit cost discussed above, for the three months ended March 31, 2025, $1 million of unamortized prior service benefits and costs and actuarial gains and losses were reclassified by TEC from regulatory assets to the Condensed Statement of Income, compared with $1 million for the three months ended March 31, 2024.

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6. Short-Term Debt

Details of TEC’s short-term borrowings are presented in the following table:

March 31, 2025

December 31, 2024

Borrowings

Borrowings

Letters

Borrowings

Borrowings

Letters

Credit

Outstanding -

Outstanding -

of Credit

Credit

Outstanding -

Outstanding -

of Credit

(millions)

Facilities

Credit Facilities (1)

Commercial Paper (1)

Outstanding

Facilities

Credit Facilities (1)

Commercial Paper (1)

Outstanding

Credit facility (2)

$

800

$

0

$

158

$

1

$

800

$

0

$

636

$

1

(1)Borrowings outstanding are reported as notes payable.

(2)This credit facility was planned to mature on December 17, 2026. On April 1, 2024, TEC amended the credit facility agreement to extend the maturity date to December 1, 2028. TEC also has an active commercial paper program for up to $800 million, of which the full amount outstanding is backed by TEC’s credit facility. The amount of commercial paper issued results in an equal amount of its credit facility being considered drawn and unavailable.

At March 31, 2025, these credit facilities required a commitment fee of 12.5 basis points. The weighted-average interest rate on borrowings outstanding under the credit facilities and commercial paper at March 31, 2025 and December 31, 2024 was 4.6% and 4.8%, respectively.

As of March 31, 2025 and December 31, 2024, the carrying value of TEC’s short-term debt was not materially different from the fair value due to the short-term nature of the instruments and because the stated rates approximate market rates. The fair value of TEC’s short-term debt is determined using Level 2 measurements.

7. Long-Term Debt

Fair Value of Long-Term Debt

At March 31, 2025, TEC’s long-term debt, including the current portion, had a carrying amount of $4,529 million and an estimated fair market value of $4,057 million. At December 31, 2024, long-term debt had a carrying amount of $3,935 million and an estimated fair market value of $3,431 million. The fair value of the debt securities is determined using Level 2 measurements.

TEC 5.15% Notes due 2035

On March 6, 2025, TEC completed a sale of $600 million aggregate principal amount of 5.15% Notes due March 1, 2035 (the 2035 Notes). Prior to December 1, 2034, in the case of the 2035 Notes, TEC may redeem all or any part of such series of Notes at its option at a redemption price equal to the greater of (i) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the redemption date on a semi-annual basis at the Treasury Rate plus 15 basis points less interest accrued to the date of redemption or (ii) 100% of the principal amount of the notes to be redeemed, plus, in either case, accrued and unpaid interest thereon to the redemption date. On or after December 1, 2034, TEC may redeem the 2035 Notes, in whole or in part, at any time and from time to time, at a redemption price equal to 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest thereon to the redemption date. TEC used the net proceeds from this offering for the repayment of a portion of the borrowings outstanding under the 5-year credit facility as disclosed in Note 6.

8. Commitments and Contingencies

Legal Contingencies

From time to time, TEC and its subsidiaries are involved in various legal, tax and regulatory proceedings before various courts, regulatory commissions and governmental agencies in the ordinary course of business. Where appropriate, accruals are made in accordance with accounting standards for contingencies to provide for matters that are probable of resulting in an estimable loss.

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Long-Term Commitments

TEC has commitments for various purchases as disclosed below, including payment obligations under contractual agreements for fuel, fuel transportation and power purchases that are recovered from customers under regulatory clauses. The following is a schedule of future payments under net purchase obligations/commitments at March 31, 2025:

					Fuel		Long-term				Purchased		Demand
			Capital		and		Service				Power		Side
(millions)	Transportation		Projects (1)		Gas Supply		Agreements		Leases		Agreements		Management		Total
2025	$	114	$	260	$	307	$	14	$	3	$	66	$	3	$	767
2026		146		161		69		15		2		7		1		401
2027		178		14		22		33		2		7		1		257
2028		140		2		0		21		2		7		1		173
2029		121		0		0		21		2		7		0		151
Thereafter		1,208		0		0		32		108		38		0		1,386
Total future minimum payments	$	1,907	$	437	$	398	$	136	$	119	$	132	$	6	$	3,135

(1) These estimates are subject to continuing review and adjustment and actual capital expenditures may vary significantly from these estimates.

Debt Covenants

TEC must meet certain financial tests, including a debt to capital ratio, as defined in the applicable debt agreements and has certain restrictive covenants in specific agreements and debt instruments. At March 31, 2025, TEC was in compliance with all required covenants.

9. Revenue
 

The following disaggregates TEC’s revenue by major source:

(millions)
Three months ended March 31,	2025		2024
Electric revenue
Residential	$	336	$	304
Commercial		172		155
Industrial		46		40
Regulatory deferrals		10		(23	)
Unbilled revenue		4		3
Other (1)		81		69
Total revenue	$	649	$	548

(1)Other electric revenue includes sales to public authorities, off-system sales to other utilities and various other items.

Remaining Performance Obligations

Remaining performance obligations primarily represent lighting contracts with fixed contract terms. As of March 31, 2025 and December 31, 2024, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $99 million. As allowed under ASC 606, Revenue from Contracts with Customers, these amounts exclude contracts with an original expected length of one year or less and variable amounts for which TEC recognizes revenue at the amount to which it has the right to invoice for services performed. TEC expects to recognize revenue for the remaining performance obligations through 2045.

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10. Segment Information

Segments are determined based on how TEC's chief operating decision maker (CODM) evaluates, measures and makes decisions with respect to the operations of the entity, resulting in segments based on products and services. TEC operates under a single operating and reportable segment because the operations of TEC only include the operations of the electric division. TEC is a public utility operating within the State of Florida and is engaged in the generation, purchase, transmission, distribution and sale of electric energy in West Central Florida.

TEC's CODM is the Chief Executive Officer. The CODM uses several measures to allocate capital and resources for TEC, predominantly in the annual budget and forecasting processes. The CODM evaluates performance by considering budget-to-actual variances for these measures monthly. The measure used by the CODM that is the most consistent with US GAAP measurement principles is net income.

(millions)
Three months ended March 31,	2025		2024
Revenues	$	649	$	548
Less:
Fuel		123		133
Purchased power		38		8
Operations & maintenance, excluding FPSC-approved regulatory deferrals		97		95
Operations & maintenance related to FPSC-approved regulatory deferrals		45		39
Depreciation and amortization		122		112
Interest charges		52		49
Other segment items (1)		40		41
Provision for income taxes		18		8
Net income	$	114	$	63
Capital expenditures	$	309	$	268
Total assets at March 31, 2025	$	13,362
Total assets at December 31, 2024	$	13,107

(1)Other segment items include taxes other than income, partially offset by AFUDC and other income, net.

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Item 2. MANAGEMENT’S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION & RESULTS OF OPERATIONS

Operating Company Results

Amounts included below are pre-tax, except net income and income taxes.

TEC’s net income for the first quarter of 2025 was $114 million, compared with $63 million for the same period in 2024. Results primarily reflected higher base revenues, partially offset by higher depreciation expense. Base revenues are energy sales excluding revenues from clauses, gross receipts taxes and franchise fees. Clauses, gross receipts taxes and franchise fees do not have a material effect on net income as these revenues substantially represent a dollar-for-dollar recovery of clause and other pass-through costs.

Revenues were $101 million higher than in the same period in 2024, primarily driven by higher base revenue due to new base rates as a result of the 2024 rate case, favorable weather compared to the same period in 2024, customer growth and increased regulatory deferral revenue and storm surcharge revenue. Total degree days (a measure of heating and cooling demand) in Tampa Electric's service area in the first quarter of 2025 were 2% below normal (a 20-year statistical degree day average) and 12% above the 2024 period, reflecting cooler weather in the first quarter of 2025 compared to 2024. As revenue also reflects a 2% increase in the number of customers in the first quarter of 2025 compared to the same period in 2024, net energy for load, which is a calendar measurement of energy output, increased by 3% in the first quarter of 2025 compared to the same period in 2024.

In 2025, operations and maintenance expense was $8 million higher than in 2024 due to storm restoration cost recognition of $13 million related to storm surcharge revenue (offset in revenue) and increased operational expenses of $2 million, partially offset by decreased expenses related to clause and regulatory deferral activity of $7 million. The increase in operating expenses was primarily due to higher solar operation costs. Depreciation and amortization expense increased $10 million in 2025 compared to 2024 as a result of additions to facilities and the in-service of generation projects.

TEC’s regulated operating statistics for the three months ended March 31, 2025 and 2024 were as follows:

(millions, except customers and total degree days)	Operating Revenues							Kilowatt-Hours Billed
Three months ended March 31,	2025		2024			% Change		2025		2024		% Change
By Customer Type
Residential (1)	$	336	$	304			11		2,087		1,958		7
Commercial (1)		172		155			11		1,412		1,362		4
Industrial (1)		46		40			15		521		477		9
Other (1)		56		51			10		449		422		6
Regulatory deferrals and unbilled revenue (2)		14		(20	)		170
Total retail sales of electricity		624		530			18		4,469		4,219		6
Off system sales of electricity		10		5			100		167		131		27
Other operating revenue		15		13			15
Total revenues	$	649	$	548			18		4,636		4,350		7
By Sales Type
Base	$	370	$	315			17
Clause		192		169			14
Capital cost recovery for early retired assets		15		15			0
Storm surcharge		19		6			217
Gross receipts taxes and franchise fees		29		26			12
Other		24		17			41
Total revenues	$	649	$	548			18
Customers at March 31, (thousands)		858		845			2
Retail net energy for load (kilowatt-hours)		4,609		4,459			3
Total degree days		593		530			12

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(1)Reflects a billing cycle measurement.

(2)Primarily reflects unbilled revenue, which incorporates a calendar measurement, and postings for clause recovery deferrals.

Other Income

For the first quarter of 2025 and 2024, respectively, TEC’s other income was $16 million and $11 million, which included AFUDC-equity of $10 million and $5 million and other income of $6 million and $6 million. The increase in AFUDC-equity is primarily due to the timing of solar, resiliency and other projects.

Interest Expense

For the first quarter of 2025 and 2024, TEC’s interest expense, excluding AFUDC-debt, was $55 million and $51 million, respectively. The increase is due to higher borrowings, primarily resulting from storm costs incurred in 2024 and support of TEC's capital program.

Income Taxes

The provisions for income taxes were $18 million and $8 million for the three months ended March 31, 2025 and 2024, respectively. Compared to the 2024 period, the increase in the provision for income taxes for the three months ended March 31, 2025 was primarily due to higher pre-tax income, partially offset by higher benefit from production tax credits related to solar facilities.

Liquidity and Capital Resources

The table below sets forth the March 31, 2025 liquidity, cash balances and amounts available under the TEC credit facilities.

(millions)
Credit facilities/ commercial paper	$	800
Drawn amounts/letters of credit		(159	)
Available credit facilities		641
Cash		8
Total liquidity	$	649

Cash Impacts Related to Operating Activities

Cash flows from operating activities in the three months ended March 31, 2025 were $131 million, a decrease of $74 million compared to the same period in 2024. Decreases to cash from operations were primarily due to higher fuel costs driving under-recoveries and changes in accounts receivable balances resulting from increased base rates and storm cost recoveries reflected in customer bills offset by higher net income.

Cash Impacts Related to Financing Activities

Cash flows from financing activities for the three months ended March 31, 2025 resulted in net cash inflows of $182 million. TEC received $150 million of equity contributions from Parent and $594 million of net proceeds from a long-term debt issuance, partially offset by $478 million of net payments in short-term debt with maturities with 90 days or less and $84 million of dividends to Parent.

Covenants in Financing Agreements

In order to utilize its bank credit facilities, TEC must meet certain financial tests as defined in the applicable agreements. In addition, TEC has certain restrictive covenants in specific agreements and debt instruments. At March 31, 2025, TEC was in compliance with all applicable financial covenants. The following table contains the significant financial covenant and the performance relative to it at March 31, 2025.

Significant Financial Covenants

			Calculation at
Instrument (1)	Financial Covenant (2)	Requirement/Restriction	March 31, 2025
Credit facility - $800 million	Debt/capital	Cannot exceed 65%	46.0%

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(1)See Note 6 to the TEC Condensed Financial Statements for details of the credit facility.

(2)As defined in the instrument.

Credit Ratings of Senior Unsecured Debt at March 31, 2025

	S&P	Moody’s	Fitch
Credit ratings of senior unsecured debt	BBB+	A3	A
Credit ratings outlook	Stable	Negative	Negative

Certain of TEC’s derivative instruments contain provisions that require TEC’s debt to maintain investment-grade credit ratings.

Commitments and Contingencies

See Note 8 to the TEC Condensed Financial Statements for information regarding TEC’s commitments and contingencies as of March 31, 2025.

Regulatory Matters

See Note 3 to the TEC Condensed Financial Statements for information regarding TEC’s regulatory matters, including TEC's request for a base rate increase and TEC's storm restoration cost recovery.

Fair Value Measurements

TEC considered the impact of nonperformance risk in determining the fair value of derivatives. TEC considered the net position with each counterparty, past performance and the intent of the parties, indications of credit deterioration and whether the markets in which TEC transacts have experienced dislocation. At March 31, 2025, the fair value of derivatives was not materially affected by nonperformance risk.

Critical Accounting Policies and Estimates

Critical accounting policies and estimates have not materially changed in 2025. For further discussion of critical accounting policies and estimates, see TEC’s Annual Report on Form 10-K for the year ended December 31, 2024.

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Information required by Item 3 is omitted pursuant to General Instruction H(2) of Form 10-Q.

Item 4. CONTROLS AND PROCEDURES

(a)Evaluation of Disclosure Controls and Procedures. TEC’s management, with the participation of its principal executive officer and principal financial officer, has evaluated the effectiveness of TEC’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of March 31, 2025. Based on such evaluation, TEC’s principal financial officer and principal executive officer have concluded that, as of March 31, 2025, TEC’s disclosure controls and procedures are effective.

(b)Changes in Internal Controls. There was no change in TEC’s internal controls over financial reporting (as defined in Rules 13a–15(f) and 15d-15(f) under the Exchange Act) identified in connection with the evaluation of TEC’s internal control over financial reporting that occurred during TEC’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, such controls.

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PART II. OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

From time to time, TEC is involved in various legal, tax and regulatory proceedings before various courts, regulatory commissions and governmental agencies in the ordinary course of business. Where appropriate, accruals are made in accordance with accounting standards for contingencies to provide for matters that are probable of resulting in an estimable loss. For a discussion of legal proceedings and environmental matters, see Note 8 of the TEC Condensed Financial Statements.

Item 6. EXHIBITS

Exhibit
No.	Description
3.1	Restated Articles of Incorporation of Tampa Electric Company, as amended on November 30, 1982 (Exhibit 3 to Registration Statement No. 2-70653 of Tampa Electric Company). (P)	*
3.2	Bylaws of Tampa Electric Company, as amended effective February 2, 2011 (Exhibit 3.4, Form 10-K for 2010 of Tampa Electric Company).	*
4.1	Nineteenth Supplemental Indenture dated as of March 6, 2025, between Tampa Electric Company, as issuer, and The Bank of New York Mellon, as trustee, supplementing the Indenture dated as of July 1, 1998, as amended (Exhibit 4.11, Form 8-K dated March 6, 2025 of Tampa Electric Company).	*
31.1	Certification of the Chief Executive Officer of Tampa Electric Company pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of the Chief Financial Officer of Tampa Electric Company pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32	Certification of the Chief Executive Officer and Chief Financial Officer of Tampa Electric Company pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (1)
101.INS**	Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the inline XBRL document.
101.SCH**	Inline XBRL Taxonomy Extension Schema Document.
101.CAL**	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF**	Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB**	Inline XBRL Taxonomy Label Linkbase Document.
101.PRE**	Inline XBRL Taxonomy Presentation Linkbase Document.
104	The cover page from TEC’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 has been formatted in Inline XBRL.

(1)This certification accompanies the Quarterly Report on Form 10-Q and is not filed as part of it.

* Indicates exhibit previously filed with the Securities and Exchange Commission and incorporated herein by reference. Exhibits filed with periodic reports of TECO Energy, Inc. and TEC were filed under Commission File Nos. 1-8180 and 1-5007, respectively.

** The XBRL related information in Exhibit 101 to this quarterly report on Form 10-Q shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that section and shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	TAMPA ELECTRIC COMPANY
	(Registrant)
Date: May 8, 2025	By:	/s/ Gregory W. Blunden
		Gregory W. Blunden
		Treasurer and Chief Financial Officer
		(Principal Financial and Accounting Officer)

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