Clarissa/Fremera Smith
TECO Electric: To invest or not invest, that is the question.
Financial Management
September 24, 2013
Mewborn/Vaugh
Do you have a gas stove, water heater, washer, or dryer? If you live in the Auburndale, Winter Haven, Tampa, Dade City, or Outskirts of Lakeland; you probably have heard of a little company by the name of Tampa Electric Company (TECO). This energy company provides a number of services to many different areas. With over a million customers strong and projects of expansion to Mexico and new developments in green energy they would seem a sure chose to invest your money. But some would say that its risk will be greater than its profits for them. But the question of the hour is the risk of investing worth the wait for the “gold”.
How it all started?
Tampa Electric Company was started in 1899. At this time the company managed the electric trolley services for the 12-year old city. Consumer Electric at this time was the energy provider for the area but was forced to sell to TECO after a series of unfortunate events. After taking over, TECO rebuilt the dam that was formerly owned by Consumer Electric and used the hydropower to generate energy until a hurricane carried the dam away. Thus introducing the very first steam generated plant for the company which took place in 1961. This was just a start to many different advancements: (1913) encouraged residents to transfer to electricity by giving them light bulbs as an incentive, (1920) cigar factories put the company in the position to surpass its planned revenue by producing 300 million cigars per year, (1932) it remained a healthy company during the great depression, and in 1981 it expanded from solely electricity and broaden its horizons and took on other energy sources such as natural gas. In 2014, TECO has a bid on the table to take over the New Mexico Gas Company with profitable returns by 2015. By 2017 it has hopes of being a service provider for some parts of the Orlando area.
So who were the heavy hitters of the TECO Family?
Behind every good company is great planning and a great leader. TECO is no exception to this rule. Francis Bellamy, writer of the Pledge of Allegiance, was director of advertising in the 1920’s. Peter O. Knight served with the company since its beginnings first as vice president and then president. He saw the company through many different transitions such as The Great Depression. He remained with the company for 22 years until retirement. Under his guidance the company’s debts were paid off by 1932 and all of the ice companies in Winter Haven, Dade City, and a few others were acquired. William Maclnnes took over in 1954 as president after working for six years as an accountant executive with Stone and Weber Corp. William made a very insightful decision to shift the company’s dependency on oil to coal because oil suppliers constantly raised the prices of the barrels of oil which created some uncertainties of oil prices in the near future. H.L Culbeath served as president in 1971 where under his reign Garliff Coal Company was bought by TECO to ensure long term coal supply. This was not only a profitable move but a brilliant one as well because government regulations and federal rules were pushing for companies to take a more economic safe approach. Culbreath served until the early 1990s and provided the company with it most profitable and successful years. Culbreath was the leading source of TECO broadens its horizons and presenting the company in a positive light when it came to economic awareness. Timothy Guzzle succeeded Culbreath and stays true to the develop plan that was put in place by the former president. The philosophy to this day still is to continue to develop its own business and projects rather than buying into existing ones as a way to create value and increase earnings.
What is new for the company?
Currently, TECO transmits and
