Commitments and Contingencies

12 Months Ended

Dec. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

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.

Superfund and Former Manufactured Gas Plant Sites

As of December 31, 2024, TEC, through its Tampa Electric division and former PGS division, was a PRP for certain superfund sites and, through its former PGS division, for certain former MGP sites. As a result of the separation of the PGS division, PGS is now the responsible party for those sites (in addition to third party PRPs for certain sites). See Note 1 to the 2024 Annual TEC Consolidated Financial Statements for information regarding the separation of PGS from TEC.

Long-Term Commitments

TEC has commitments for various purchases as disclosed below, including payment obligations for capital projects and 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 December 31, 2024:


			Capital		Fuel and Gas		Long-term Service
(millions)	Transportation		Projects (1)		Supply		Agreements		Leases		Other (2)		Total
Year ended December 31:
2025	$	146	$	279	$	156	$	21	$	4	$	15	$	621
2026		145		161		27		22		2		1		358
2027		176		17		4		40		2		1		240
2028		138		0		1		30		2		0		171
2029		120		0		0		31		2		0		153
Thereafter		1,200		0		0		33		107		0		1,340
Total future minimum payments	$	1,925	$	457	$	188	$	177	$	119	$	17	$	2,883

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

(2) Other includes contractual obligations under demand side management and purchased power agreements.

Financial Covenants

TEC must meet certain financial tests, including a debt to capital ratio, as defined in the applicable debt agreements. TEC has certain restrictive covenants in specific agreements and debt instruments. At December 31, 2024 and 2023, TEC was in compliance with all required financial covenants.