Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2015

The following is a schedule of future minimum lease payments with non-cancelable lease terms in excess of one year, capacity payments under PPAs, and other net purchase obligations/commitments at Dec. 31, 2015:

	Capacity		Operating		Net Purchase
(millions)	Payments		Leases⁽¹⁾		Obligations/Commitments⁽¹⁾		Total
Year ended Dec. 31:
2016	$	14.6	$	7.7	$	222.5	$	244.8
2017		9.9		7.1		21.5		38.5
2018		10.1		6.4		9.6		26.1
2019		0.0		5.7		9.7		15.4
2020		0.0		5.4		4.7		10.1
Thereafter		0.0		18.6		20.0		38.6
Total future minimum payments	$	34.6	$	50.9	$	288.0	$	373.5

(1)

Reflects those contractual obligations and commitments considered material to the respective operating companies, individually. The table above excludes payment obligations under contractual agreements of Tampa Electric, PGS and NMGC for fuel, fuel transportation and power purchases which are recovered from customers under regulatory clauses.

Letters of Credit and Guarantees

A summary of the face amount or maximum theoretical obligation under TECO Energy’s letters of credit and guarantees as of Dec. 31, 2015 are as follows:

(millions)	Year of Expiration						Maximum
					After ⁽¹⁾		Theoretical		Liabilities Recognized
Guarantees for the Benefit of:	2016		2017-2020		2020		Obligation		at Dec. 31, 2015
TECO Energy
Fuel sales and transportation⁽²⁾	$	0.0	$	0.0	$	92.9	$	92.9	$	0.0
Letters of indemnity - coal mining permits⁽³⁾		90.0		0.0		0.0		90.0		0.0
	$	90.0	$	0.0	$	92.9	$	182.9	$	0.0

(millions)	Year of Expiration						Maximum
					After ⁽¹⁾		Theoretical		Liabilities Recognized
Letter of Credit for the Benefit of:	2016		2017-2020		2020		Obligation		at Dec. 31, 2015 ⁽⁴⁾
TEC	$	0.0	$	0.0	$	0.5	$	0.5	$	0.1
NMGC	$	0.0	$	0.0	$	1.7	$	1.7	$	0.0

(1) These letters of credit and guarantees renew annually and are shown on the basis that they will continue to renew beyond 2020.

(2) The amounts shown represent the maximum theoretical amounts of cash collateral that TECO Energy would be required to post in the event of a downgrade below investment grade for its long-term debt ratings by the major credit rating agencies. Liabilities recognized represent the associated potential obligation related to net derivative liabilities under these agreements at Dec. 31, 2015. See Note 16 for additional information.

(3) These letters of indemnity guarantee payments to certain surety companies that issued reclamation bonds to the Commonwealths of Kentucky and Virginia in connection with TECO Coal's mining operations. Payments to the surety companies would be triggered if the reclamation bonds are called upon by either of these states and the permit holder, TECO Coal, does not pay the surety. The amounts shown represent the maximum theoretical amounts that TECO Energy would be required to pay to the surety companies. As discussed in Note 19, TECO Coal was sold on Sept. 21, 2015 to Cambrian. Pursuant to the SPA, Cambrian is obligated to file applications required in connection with the change of control with the appropriate governmental entities. Once the applicable governmental agency deems each application to be acceptable, Cambrian is obligated to post a bond or other appropriate collateral necessary to obtain the release of the corresponding bond secured by the TECO Energy indemnity for that permit. Until the bonds secured by TECO Energy's indemnity are released, TECO Energy's indemnity will remain effective. At the date of sale in September 2015, the letters of indemnity guaranteed $93.8 million. The company is working with Cambrian on the process to replace the bonds and expects the process to be completed in 2016. Pursuant to the SPA, Cambrian has the obligation to indemnify and hold TECO Energy harmless from any losses incurred that arise out of the coal mining permits during the period commencing on the closing date through the date all permit approvals are obtained.

(4) The amounts shown are the maximum theoretical amounts guaranteed under current agreements. Liabilities recognized represent the associated obligation of TECO Energy, TEC or NMGC under these agreements at Dec. 31, 2015. The obligations under these letters of credit include certain accrued injuries and damages when a letter of credit covers the failure to pay these claims.

Tampa Electric Company [Member]

Schedule of Long-term Commitments

	Capacity		Operating		Net Purchase
(millions)	Payments		Leases⁽¹⁾		Obligations/Commitments⁽¹⁾		Total
Year ended Dec. 31:
2016	$	14.6	$	5.7	$	218.3	$	238.6
2017		9.9		5.2		21.5		36.6
2018		10.1		4.7		9.6		24.4
2019		0.0		4.4		9.7		14.1
2020		0.0		4.1		4.7		8.8
Thereafter		0.0		14.5		20.0		34.5
Total future minimum payments	$	34.6	$	38.6	$	283.8	$	357.0

(1)	Excludes payment obligations under contractual agreements of Tampa Electric and PGS for fuel, fuel transportation and power purchases which are recovered from customers under regulatory clauses approved by the FPSC annually.

Letters of Credit and Guarantees

At Dec. 31, 2015, TEC was not obligated under guarantees, but had the following letters of credit outstanding.

(millions)	Year of Expiration						Maximum
					After ⁽¹⁾		Theoretical		Liabilities Recognized
Letter of Credit for the Benefit of:	2016		2017-2020		2020		Obligation		at Dec. 31, 2015 ⁽²⁾
TEC	$	0.0	$	0.0	$	0.5	$	0.5	$	0.1

(1)	These letters of credit and guarantees renew annually and are shown on the basis that they will continue to renew beyond 2020.

(2)

The amounts shown are the maximum theoretical amounts guaranteed under current agreements. Liabilities recognized represent the associated obligation under these agreements at Dec. 31, 2015. The obligations under these letters of credit include certain accrued injuries and damages when a letter of credit covers the failure to pay these claims.