1. Summary of Significant Accounting Policies

Principles of Consolidation and Basis of Presentation

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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, 2026


☐	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) Midtown East Tower 3600 Midtown Drive Tampa, Florida 33607 (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.

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, 2026, 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 2026 and 2025 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
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
IT		information technology
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
OBBBA		One Big Beautiful Bill Act
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
PP&E		property, plant and equipment
PTCs		production tax credits
ROE		return on common equity
Regulatory ROE		return on common equity as determined for regulatory purposes
ROU		right-of-use
S&P		Standard and Poor’s
SEC		U.S. Securities and Exchange Commission
SERP		Supplemental Executive Retirement 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

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 2025 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 I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (b) Part I, 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.

PART I. FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

TAMPA ELECTRIC COMPANY

Condensed Balance Sheets

Unaudited


Assets	March 31,			December 31,
(millions)	2026			2025
Property, plant and equipment
Utility plant, at original costs	$	16,128		$	15,787
Accumulated depreciation		(3,703	)		(3,626	)
Utility plant, net		12,425			12,161
Other property		26			20
Total property, plant and equipment, net		12,451			12,181

Current assets
Cash and cash equivalents		8			3
Receivables, less allowance for credit losses of $1 and $1 at March 31, 2026 and December 31, 2025, respectively		272			258
Due from affiliates		17			17
Inventories, at average cost
Fuel		27			38
Materials and supplies		218			216
Regulatory assets		171			226
Prepayments and other current assets		34			38
Total current assets		747			796

Other assets
Regulatory assets		967			956
Other		144			138
Total other assets		1,111			1,094
Total assets	$	14,309		$	14,071

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

TAMPA ELECTRIC COMPANY

Condensed Balance Sheets - continued

Unaudited


Liabilities and Capitalization	March 31,			December 31,
(millions)	2026			2025
Capitalization
Common stock	$	5,835		$	5,635
Accumulated other comprehensive loss		(1	)		(1	)
Retained earnings		265			219
Total capital		6,099			5,853
Long-term debt		4,532			4,531
Total capitalization		10,631			10,384

Current liabilities
Notes payable		765			773
Accounts payable		339			366
Due to affiliates		26			15
Customer deposits		131			129
Regulatory liabilities		94			114
Accrued interest		46			42
Accrued taxes		39			14
Other		54			60
Total current liabilities		1,494			1,513

Long-term liabilities
Deferred income taxes		991			969
Regulatory liabilities		721			727
Investment tax credits		231			234
Finance lease liabilities - long-term		48			48
Deferred credits and other liabilities		193			196
Total long-term liabilities		2,184			2,174

Commitments and Contingencies (see Note 8)

Total liabilities and capitalization	$	14,309		$	14,071

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

TAMPA ELECTRIC COMPANY

Condensed Statements of Income and Comprehensive Income

Unaudited


	Three months ended March 31,
(millions)	2026			2025
Revenues
Electric	$	802		$	649
Expenses
Fuel		176			123
Purchased power		38			38
Operations and maintenance		193			142
Depreciation and amortization		134			122
Taxes, other than income		64			56
Total expenses		605			481
Income from operations		197			168
Other income
Allowance for equity funds used during construction		7			10
Other income, net		6			6
Total other income		13			16
Interest charges
Interest expense		62			55
Allowance for borrowed funds used during construction		(3	)		(3	)
Total interest charges		59			52
Income before provision for income taxes		151			132
Provision for income taxes		20			18
Net income	$	131		$	114
Comprehensive income	$	131		$	114

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

TAMPA ELECTRIC COMPANY

Condensed Statements of Cash Flows

Unaudited


	Three months ended March 31,
(millions)	2026			2025
Cash flows from operating activities
Net income	$	131		$	114
Adjustments to reconcile net income to cash flows from operating activities:
Depreciation and amortization		134			122
Deferred income taxes and investment tax credits		7			13
Allowance for equity funds used during construction		(7	)		(10	)
Deferred recovery clauses		(27	)		(35	)
Regulatory assets and liabilities		52			26
Pension and postretirement asset and liabilities		(2	)		(2	)
Other		3			2
Changes in working capital:
Receivables, less allowance for credit losses		(13	)		(19	)
Inventories		7			(5	)
Taxes accrued		25			21
Interest accrued		4			15
Accounts payable		(20	)		(112	)
Other		3			1
Cash flows from operating activities		297			131
Cash flows used in investing activities
Capital expenditures		(406	)		(309	)
Net proceeds from sale of assets		7			0
Cash flows used in investing activities		(399	)		(309	)
Cash flows from financing activities
Equity contributions from Parent		200			150
Proceeds from long-term debt issuance		0			594
Net decrease in short-term debt (maturities of 90 days or less)		(8	)		(478	)
Dividends to Parent		(85	)		(84	)
Cash flows from financing activities		107			182
Net increase in cash and cash equivalents		5			4
Cash and cash equivalents at beginning of period		3			4
Cash and cash equivalents at end of period	$	8		$	8
Supplemental disclosure of non-cash activities
Change in accrued capital expenditures	$	(4	)	$	45

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

TAMPA ELECTRIC COMPANY

Condensed Statements of Capital

Unaudited


								Accumulated
								Other
			Common		Retained			Comprehensive			Total
(millions, except share amounts)	Shares		Stock		Earnings			Loss			Capital
Three months ended March 31, 2026
Balance, December 31, 2025		10	$	5,635	$	219		$	(1	)	$	5,853
Net income						131						131
Equity contributions from Parent				200								200
Dividends to Parent						(85	)					(85	)
Balance, March 31, 2026		10	$	5,835	$	265		$	(1	)	$	6,099

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

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

TAMPA ELECTRIC COMPANY

NOTES TO CONDENSED FINANCIAL STATEMENTS

UNAUDITED

See TEC’s Annual Report on Form 10-K for the year ended December 31, 2025 for a complete discussion of accounting policies. The significant accounting policies for TEC include the following:

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

Tampa Electric Company (TEC or Tampa Electric) is engaged in the generation, purchase, transmission, distribution and sale of electric energy in West Central Florida. TEC maintains its accounts in accordance with recognized policies prescribed or permitted by the FPSC and the FERC. These policies conform with U.S. GAAP in all material respects. 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.

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. Therefore, TEC is 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, 2026 and December 31, 2025, and the results of operations and cash flows for the periods ended March 31, 2026 and 2025. The results of operations for the three months ended March 31, 2026 are not necessarily indicative of the results that can be expected for the entire fiscal year ending December 31, 2026.

The Condensed Balance Sheet at December 31, 2025, 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 $272 million and $258 million as of March 31, 2026, and December 31, 2025, respectively. An allowance for credit losses is established based on TEC’s collection experience and reasonable and supportable forecasts that affect the collectability 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, 2026 and December 31, 2025, unbilled revenues of $78 million and $73 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 $34 million and $29 million for the three months ended March 31, 2026, and 2025, respectively.

2. New Accounting Pronouncements

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.

Targeted Improvements to the Accounting for Internal-Use Software

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The standard update modernizes accounting for internal-use software by eliminating references to project stages and clarifying the threshold to begin capitalizing costs. The standard update also specifies that the disclosure requirements under ASC 360, Property, Plant and Equipment, apply to capitalized software costs accounted for under ASC 350-40. The guidance will be effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The standard updates are to be applied using either a prospective, retrospective, or modified transition approach. TEC is currently evaluating the impact of adoption of the standard update on its financial statements.

Accounting for Government Grants Received by Business Entities

In December 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832) – Accounting for Government Grants Received by Business Entities. The ASU adds guidance to ASC 832 on the recognition, measurement, and presentation of government grants. The guidance will be effective for annual reporting periods beginning after December 15, 2028, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The standard updates are to be applied using either a modified prospective, modified retrospective, or full retrospective approach, as detailed in the ASU. TEC is currently evaluating the impact of adoption of the standard update on its financial statements.

3. Regulatory

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, and a final order was issued on June 11, 2025. 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. On January 12, 2026, the intervening parties filed their briefs related to the appeal. On April 13, 2026, the FPSC and TEC filed responses to the briefs. To date, the Florida Supreme Court has not made a decision regarding this case.

On September 4, 2025, TEC petitioned the FPSC to increase base revenue by $88 million to reflect the 2026 adjustment in accordance with the 2024 rate case decision. On November 4, 2025, the FPSC approved the adjustment, with new rates becoming effective January 1, 2026.

Storm Restoration Cost Recovery

In accordance with Tampa Electric’s 2021 rate case settlement agreement and 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, 2026, and December 31, 2025, the balance in the regulatory asset for storm restoration costs was $51 million and $116 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 March 31, 2026, TEC deferred $48 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 March 31, 2026, TEC deferred $333 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 were deferred and are being collected from customers. 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, of which $329 million has been collected as of March 31, 2026. 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:


Regulatory Assets and Liabilities
(millions)	March 31, 2026		December 31, 2025
Regulatory assets:
Regulatory tax asset (1)	$	129	$	126
Cost-recovery clauses (2)		44		37
Capital cost recovery for early retired assets (3)		532		530
Capital cost recovery for retired Polk Unit 1 components (4)		126		129
Postretirement benefits (5)		204		206
Storm reserve (6)		51		116
Other		52		38
Total regulatory assets		1,138		1,182
Less: Current portion		171		226
Long-term regulatory assets	$	967	$	956
Regulatory liabilities:
Regulatory tax liability (7)	$	417	$	426
Cost-recovery clauses - deferred balances (2)		18		38
Accumulated reserve - cost of removal (8)		321		315
Deferred production tax credits (9)		33		38
Other		26		24
Total regulatory liabilities		815		841
Less: Current portion		94		114
Long-term regulatory liabilities	$	721	$	727

(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 "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 PTCs 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.

4. Income Taxes

One Big Beautiful Bill Act

On July 4, 2025, H.R. 1 – One Big Beautiful Bill Act (OBBBA) was signed into law. The OBBBA makes permanent many of the expired and expiring tax provisions originally enacted in the Tax Cuts and Jobs Act of 2017. It also includes significant changes in future years to the timing and availability of several clean energy tax credits previously enacted in the Inflation Reduction Act, including the investment tax credit and production tax credit. On August 15, 2025, the IRS released guidance on determining when wind and solar projects have begun construction for purposes of qualifying for these tax credits. While TEC does not expect material current year impacts to its financial statements as a result of the OBBBA signed into law, TEC will continue to evaluate the future impact of this tax law as additional guidance becomes available.

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, 2026 and 2025 were 13.2% and 13.6%, respectively. The March 31, 2026 and 2025 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, 2026 and 2025 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. 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), including a qualified, non-contributory defined benefit retirement plan that covers substantially all employees. Subsequent to April 1, 2024, TECO Energy, LLC became a wholly owned subsidiary of the newly created TECO Holdings (see Note 1 for further detail). Effective January 1, 2025, the comprehensive retirement plans were transferred to TECO Holdings. Effective January 1, 2026, the active employees of New Mexico Gas Company and the benefits attributable to those active employees under the TECO Holdings Group Retirement Plan were transferred from this TECO Holdings plan to the New Mexico Gas Company Spin-off plan. 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,	2026			2025			2026		2025
Components of net periodic benefit cost
Service cost	$	5		$	4		$	0	$	0
Interest cost		9			9			2		2
Expected return on assets		(13	)		(13	)		0		0
Amortization of actuarial loss		3			2			0		0
Net periodic benefit cost	$	4		$	2		$	2	$	2

TEC’s portion of the net periodic benefit cost for the three months ended March 31, 2026 and 2025, respectively, was $2 million and $1 million 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 expected return on assets of 7.30% and a discount rate of 5.41% for pension benefits under its qualified pension plan for 2026. For TECO Holdings' other postretirement benefits, TECO Holdings used a discount rate of 5.52% for 2026.

TECO Holdings made contributions of $4 million and $4 million to its qualified pension plan in the three months ended March 31, 2026 and 2025, respectively. TEC’s portion of these contributions was $3 million and $3 million during the three months ended March 31, 2026 and 2025, respectively. TECO Holdings expects to make contributions to the pension plan of $12 million for the remainder of 2026. TEC estimates its portion of the remaining 2026 contributions to be $9 million. See Note 1 for further information regarding TECO Holdings.

Included in the benefit cost discussed above, for the three months ended March 31, 2026 and 2025, respectively, $2 million and $1 million of costs and actuarial losses were reclassified by TEC from regulatory assets to the Condensed Statement of Income.

6. Short-Term Debt

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

          
         March 31, 2026

         December 31, 2025

          
         Borrowings

         Borrowings

         Letters

         Borrowings

         Borrowings

         Letters

          
         Credit

         Outstanding -

         Outstanding -

         of Credit

         Credit

         Outstanding -

         Outstanding -

         of Credit

         (millions)

         Facility

         Credit Facility (1)

         Commercial Paper (1)

         Outstanding

         Facility

         Credit Facility (1)

         Commercial Paper (1)

         Outstanding

5-year facility (2)

1,200

0

765

1

1,200

0

773

1

(1)

Borrowings outstanding are reported as notes payable.

(2)

On November 20, 2025, TEC amended the credit facility agreement to increase the capacity amount from $800 million to $1.2 billion and extend the maturity date to November 20, 2030. At December 31, 2025, TEC also had 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. On January 22, 2026, TEC amended the commercial paper program to increase the amount to $1.2 billion from $800 million.

At March 31, 2026, the credit facility required a commitment fee of 12.5 basis points. The weighted-average interest rate on borrowings outstanding under the credit facility and commercial paper at March 31, 2026 and December 31, 2025 was 4.1% and 4.0%, respectively.

As of March 31, 2026 and December 31, 2025, 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.

Commercial Paper Program

On May 25, 2021, TEC established a commercial paper program (the Program) under which TEC may issue on a private placement basis unsecured commercial paper notes (the Notes). On January 22, 2026, TEC amended the commercial paper program to increase the amount from $800 million to $1.2 billion. The maturities of the Notes will vary, but may not exceed 270 days from the date of issue. The rates of interest will depend on whether the Note will be a fixed or floating rate. TEC must have credit facilities in place, at least equal to the amount of its commercial paper program. TEC cannot issue commercial paper in an aggregate amount exceeding the then available capacity under its credit facility.

7. Long-Term Debt

Fair Value of Long-Term Debt

At March 31, 2026, TEC’s long-term debt, including the current portion, had a carrying amount of $4,532 million and an estimated fair market value of $4,079 million. At December 31, 2025, long-term debt had a carrying amount of $4,531 million and an estimated fair market value of $4,139 million. The fair value of the debt securities is determined using Level 2 measurements.

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.

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, 2026:


					Fuel		Long-term				Purchased
			Capital		and		Service				Power
(millions)	Transportation		Projects (1)		Gas Supply		Agreements		Leases		Agreements		Total
2026	$	116	$	108	$	228	$	15	$	3	$	16	$	486
2027		180		38		115		29		4		12		378
2028		140		29		76		21		4		13		283
2029		121		2		79		22		4		13		241
2030		115		0		0		22		4		13		154
Thereafter		1,096		0		0		22		162		54		1,334
Total future minimum payments	$	1,768	$	177	$	498	$	131	$	181	$	121	$	2,876

(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, 2026, 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,	2026			2025
Electric revenue
Residential	$	404		$	336
Commercial		199			172
Industrial		46			46
Regulatory deferrals		(1	)		10
Unbilled revenue		5			4
Other (1)		149			81
Total revenue	$	802		$	649

(1)

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

Remaining Performance Obligations

As allowed under ASC 606, TEC excludes contracts with an original expected length of one year or less and variable amounts for which the company recognizes revenue at the amount to which it has the right to invoice for services performed.

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 U.S. GAAP measurement principles is net income.


(millions)
Three months ended March 31,	2026		2025
Revenues	$	802	$	649
Less:
Fuel		176		123
Purchased power		38		38
Operations and maintenance, excluding FPSC-approved regulatory deferrals		104		97
Operations and maintenance related to FPSC-approved regulatory deferrals		89		45
Depreciation and amortization		134		122
Interest charges		59		52
Other segment items (1)		51		40
Provision for income taxes		20		18
Net income	$	131	$	114
Capital expenditures	$	406	$	309

Total assets at March 31, 2026	$	14,309
Total assets at December 31, 2025	$	14,071

(1)

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

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.

Tampa Electric’s net income for the first quarter of 2026 was $131 million, compared with $114 million for the same period in 2025. Results primarily reflected higher base revenues resulting from the subsequent year adjustment in the 2024 rate case, 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 for the first quarter of 2026 were $153 million higher than in the same period in 2025, driven by storm surcharge revenue, increased off-system sales, higher base revenue due to new base rates as a result of the subsequent year adjustment in the 2024 rate case, favorable weather, and customer growth. Total degree days (a measure of heating and cooling demand) in Tampa Electric's service area in the first quarter of 2026 were 24% above normal (a 20-year statistical degree day average) and 26% above the same period in 2025. As revenue also reflects a 1% increase in the number of customers in the first quarter of 2026 compared to the same period in 2025, net energy for load, which is a calendar measurement of energy output, increased by 2% in the first quarter of 2026 compared to the same period in 2025.

O&M expense for the first quarter of 2026 was $51 million higher than in 2025 primarily due to increased storm cost recognition of $47 million related to storm surcharge revenue (offset in revenue) and increased operational expenses of $6 million. The increase in operating expenses was primarily due to the timing of production outage costs and increased solar operation costs. Depreciation and amortization expense increased $12 million for the first quarter of 2026 compared to 2025 as a result of additions to facilities and the in-service of capital projects.

TEC’s regulated operating statistics for the three months ended March 31, 2026 and 2025 were as follows:


(millions, except customers and total degree days)	Operating Revenues							Kilowatt-Hours Billed
Three months ended March 31,	2026		2025		% Change			2026		2025		% Change
By Customer Type
Residential (1)	$	404	$	336		20			2,158		2,087		3
Commercial (1)		199		172		16			1,428		1,412		1
Industrial (1)		46		46		0			481		521		(8	)
Other (1)		63		56		13			453		449		1
Regulatory deferrals and unbilled revenue (2)		4		14		(71	)
Total retail sales of electricity		716		624		15			4,520		4,469		1
Off system sales of electricity		53		10		430			191		167		14
Other operating revenue		33		15		120
Total revenues	$	802	$	649		24			4,711		4,636		2
By Sales Type
Base	$	397	$	370		7
Clause		205		192		7
Capital cost recovery for early retired assets		15		15		0
Storm surcharge		66		19		247
Gross receipts taxes and franchise fees		34		29		17
Other		85		24		254
Total revenues	$	802	$	649		24

Customers at March 31, (thousands)		870		858		1
Retail net energy for load (kilowatt-hours)		4,689		4,609		2
Total degree days		747		593		26

(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 2026 and 2025, respectively, TEC’s other income was $13 million and $16 million, which included AFUDC-equity of $7 million and $10 million and other income of $6 million and $6 million. The decrease in AFUDC-equity in the first quarter of 2026 compared to the first quarter of 2025 is due to the timing of the in-service of resiliency projects.

Interest Expense

For the first quarters of 2026 and 2025, TEC’s interest expense, excluding AFUDC-debt, was $62 million and $55 million, respectively. The increase is due to higher borrowings, primarily in support of TEC's capital program.

Income Taxes

The provisions for income taxes were $20 million and $18 million for the three months ended March 31, 2026 and 2025, respectively. Compared to the 2025 period, the increase in the provision for income taxes for the three months ended March 31, 2026 was primarily due to higher pre-tax income, partly offset by higher benefit from production tax credits related to solar facilities and increased amortization of the deferred investment tax credit related to battery storage facilities.

Liquidity and Capital Resources

The table below sets forth the March 31, 2026 liquidity, cash balances and amounts available under the TEC credit facilities.



(millions)
Credit facilities/ commercial paper	$	1,200
Drawn amounts/letters of credit		(766	)
Available credit facilities		434
Cash		8
Total liquidity	$	442

Cash Impacts Related to Operating Activities

Cash flows from operating activities in the three months ended March 31, 2026 were $297 million, an increase of $166 million compared to the same period in 2025. Increases to cash from operations were primarily due to higher 2025 payments related to the 2024 storm season and higher storm surcharge collections in 2026.

Cash Impacts Related to Financing Activities

Cash flows from financing activities for the three months ended March 31, 2026 resulted in net cash inflows of $107 million. TEC received $200 million of equity contributions from Parent, partially offset by $8 million of net payments in short-term debt with maturities with 90 days or less and $85 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, 2026, 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, 2026.

Significant Financial Covenants


			Calculation at
Instrument (1)	Financial Covenant (2)	Requirement/Restriction	March 31, 2026
Credit facility - $1,200 million	Debt/capital	Cannot exceed 65%	46.5%

(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, 2026


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

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, 2026.

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, 2026, 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 2026. For further discussion of critical accounting policies and estimates, see TEC’s Annual Report on Form 10-K for the year ended December 31, 2025.

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, 2026. Based on such evaluation, TEC’s principal financial officer and principal executive officer have concluded that, as of March 31, 2026, 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.

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).	*

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)

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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	Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).

(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.

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, 2026	By:	/s/ Jared Green
		Jared Green
		Treasurer and Chief Financial Officer
		(Principal Financial and Accounting Officer)

TAMPA ELECTRIC CO 10-Q