TECO Energy reported late last week that higher commodity pricesand colder weather are the primary reasons it expects to exceedconsensus earnings forecasts for the first quarter. TECO forecaststhat it will beat First Call’s consensus of $0.46 per share byexceeding $0.50 per share, more than 15% higher than the sameperiod last year.

TECO said its increased first-quarter earnings are being drivenby higher than expected utilization at TECO Power Services’Commonwealth Chesapeake Station, which the company brought onlinein the second half of 2000, higher gas prices at TECO CoalbedMethane, cold winter weather at both Tampa Electric and PeoplesGas, and a strong performance from TECO coal.

“We are hitting on all cylinders now and producing very strongresults,” said CEO Bob Fagan. “The expansion of our domesticindependent power generation operations is producing betterresults, sooner than we anticipated, and improved prices for bothcoal and gas production are combining to give us a very strongfirst quarter. We see that we have the pieces in place to produceoutstanding results in 2001.”

After seeing how the first quarter is shaping up, the companysaid it now expects to see 15% earnings growth for 2001, instead ofthe 10% previously forecast.

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