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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549



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FORM 10-K



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(Mark One)

|x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ------------------------------------------------------------------------------------



For the fiscal year ended December 31, 2004.



or



| ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------------



For the transition period from  to
.



Commission File Number 1-16297



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TECO CAPITAL TRUST I

(Exact Name of Registrant as Specified in Its Charter)



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|                                        |  |                                 
|--------------------------------------- |  | --------------------------------
|Delaware                                |  | 13-4164838                      
|(State of Incorporationor Organization) |  | (IRS EmployerIdentification No.)



|                                                                         |  |           
|------------------------------------------------------------------------ |  | ----------
|c/o The Bank of New York 101 Barclay Street, 8thFloor New York, New York |  | 10286     
|(Address of Principal Executive Offices)                                 |  | (Zip Code)



Registrants
telephone number, including area code: (212) 815-5088



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Securities registered pursuant to Section 12(b) of the Act:



|                           |  |                                          
|-------------------------- |  | -----------------------------------------
|Title of Each Class        |  | Name of Each Exchange on Which Registered
|Trust Preferred Securities |  | The New York Stock Exchange              



Securities
registered pursuant to Section 12(g) of the Act:



N/A

(Title of Class)



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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.    x  Yes ̈No



Indicate by check mark if disclosure of delinquent
filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of the Registrants knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K
or any amendment to this Form 10-K.  x



Indicate by check mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Securities Exchange Act of 1934) ̈Yes    x  No



The aggregate market value of the voting and non-voting common equity held by non-affiliates of the Registrant as of June 30, 2004 was $0.



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PART I



ITEM 1. BUSINESS.



TECO Capital Trust I (the Trust) is a statutory business trust that TECO Funding Company I, LLC (the LLC), a subsidiary of TECO
Energy, Inc. (TECO Energy), formed under Delaware law on November 20, 2000 pursuant to a certificate of trust filed with the Delaware Secretary of State. The Trust is governed by an Amended and Restated Trust Agreement dated December 1,
2000 by and among the LLC as depositor, by The Bank of New York as property trustee, and by The Bank of New York (Delaware) as Delaware trustee (the Trust Agreement). The Trust Agreement is qualified as an indenture under the Trust
Indenture Act of 1939. The Trust issued to the public 8,000,000 trust preferred securities at the annual rate of 8.50%, with an aggregate liquidation amount of $200 million on December 20, 2000 for the purpose of acquiring related company preferred
securities from the LLC. The Trust has minimal assets other than the company preferred securities. The Trust Agreement does not permit the Trust to engage in any activities other than holding the company preferred securities, issuing the trust
preferred securities, and engaging in other related activities.



The LLC sold company preferred securities to the Trust and company common securities to TECO Energy. The LLC used the proceeds from the sale of the company preferred securities and the company common securities to buy from TECO Energy a
series of 8.50% junior subordinated notes due January 31, 2041, with the same financial terms as the company preferred securities. TECO Energy has guaranteed payments to be made on the company preferred securities pursuant to a guarantee agreement
and, indirectly, payments to be made on the trust preferred securities as a result of their beneficial interest in the company preferred securities.



The cumulative cash distributions are subject to certain deferral provisions. TECO Energy can defer interest payments on the underlying junior
subordinated notes for up to five years, but not beyond the maturity date on the junior subordinated notes of January 31, 2041. If TECO Energy defers interest payments on the junior subordinated notes, the Trust will defer distributions on the trust
preferred securities. During any deferral period, distributions on the trust preferred securities will continue to accumulate quarterly at the annual rate of 8.5% of the stated liquidation amount.



TECO Energy may elect to redeem the junior subordinated notes in whole, at
any time, or in part, from time to time, on or after December 20, 2005, at a redemption price equal to 100% of the principal amount to be redeemed plus any accrued and unpaid interest to the redemption date. If all or part of the junior subordinated
notes are redeemed, the LLC must redeem a corresponding amount of the company preferred securities and the common securities and, consequently, the Trust must redeem a corresponding amount of trust preferred securities.



As long as the trust preferred securities remain outstanding, TECO Energy is
required to maintain a 100 percent direct or indirect ownership in the company common securities issued by the LLC. TECO Energy was in compliance with this covenant at December 31, 2004.



The fiscal year of the Trust is the calendar year. The LLC pays all fees and expenses related to the Trust.



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ITEM 2. PROPERTIES.



The Trust has no physical property. Its primary assets are the company preferred securities issued by the LLC. The primary assets of the LLC are the junior subordinated
debt securities issued by TECO Energy.



ITEM 3. LEGAL PROCEEDINGS.



The Trust is not a party to any legal proceedings.



ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.



No matters were submitted to a vote of security holders during the quarter ended December
31, 2004.



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PART II



ITEM 5. MARKET FOR REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.



The Trust has not issued common equity securities.



ITEM 6. SELECTED FINANCIAL DATA.



|                                                     |  |         |       |   |      |   |       |      |  |   |       |   |  |         |       |   |  |   |        |  
|---------------------------------------------------- |  | ------- | ----- | - | ---- | - | ----- | ---- |  | - | ----- | - |  | ------- | ----- | - |  | - | ------ | -
|(millions)Year ended Dec. 31,                        |  | 2004(1) |       |   | 2003 |   |       | 2002 |  |   | 2001  |   |  | 2000(2) |      
|Jr. Subordinated Debt Securities Interest Income     |  | $       | 17.5  |   |      | $ |      |      |  | $ |      |   |  | $       |      |   |  | $ |       |  
|Company Preferred Security Dividend Income           |  |         |      |   |      |   | 17.0  |      |  |   | 16.9  |   |  |         | 17.0  |   |  |   | 0.6    |  
|Issuance of Trust Preferred Securities               |  |         |      |   |      |   |      |      |  |   |      |   |  |         |      |   |  |   | 200.0  |  
|Trust Preferred Security Dividends                   |  |         | (17.0 | ) |      |   | (17.0 | )    |  |   | (16.9 | ) |  |         | (17.0 | ) |  |   | (0.6   | )
|Minority Interest Dividends                          |  |         | (0.5  | ) |      |   |      |      |  |   |      |   |  |         |      |   |  |   |       |  
|Purchase of Company Preferred Securities             |  |         |      |   |      |   |      |      |  |   |      |   |  |         |      |   |  |   | (200.0 | )
|                                                     |  |         |       |   |      |   |       |      |  |   |       |   |  |         |       |   |  |   |        |  
|Changes in Net Assets Available for Trust Activities |  | $       |      |   |      | $ |      |      |  | $ |      |   |  | $       |      |   |  | $ |       |  
|                                                     |  |         |       |   |      |   |       |      |  |   |       |   |  |         |       |   |  |   |        |  
|Dividends Receivable                                 |  | $       | 2.9   |   |      | $ | 2.8   |      |  | $ | 2.9   |   |  | $       | 2.9   |   |  | $ | 0.6    |  
|Investment in Jr. Subordinated Debt Securities       |  |         | 206.2 |   |      |   |      |      |  |   |      |   |  |         |      |   |  |   |       |  
|Investment in Company Preferred Securities           |  |         |      |   |      |   | 200.0 |      |  |   | 200.0 |   |  |         | 200.0 |   |  |   | 200.0  |  
|                                                     |  |         |       |   |     
|Trust Preferred Securities Dividends Payable         |  |         | 2.8   |   |      |   | 2.8   |      |  |   | 2.9   |   |  |         | 2.9   |   |  |   | 0.6    |  
|Minority Interest Dividends Payable                  |  |         | 0.1   |   |      |   |      |      |  |   |      |   |  |         |      |   |  |   |       |  
|Trust Preferred Securities                           |  |         | 200.0 |   |      |   | 200.0 |      |  |   | 200.0 |   |  |         | 200.0 |   |  |   | 200.0  |  
|Minority Interest                                    |  |         | 6.2   |   |      |   |      |      |  |   |      |   |  |         |      |   |  |   |       |  
|                                                     |  |         |       |   |      |   |       |      |  |   |       |   |  |         |       |   |  |   |        |  
|Net Assets Available for Trust Activities            |  | $       |      |   |      | $ |      |      |  | $ |      |   |  | $       |      |   |  | $ |       |  
|                                                     |  |         |       |   |      |   |       |      |  |   |       |   |  |         |       |   |  |   |        |  

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|(1) | Reflects the consolidation of the LLC by the Trust effective January 1, 2004 in accordance with FIN 46. For more information on the consolidation of the LLC, see Note B of
Notes to Financial Statements.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | The Trust was established on November 20, 2000 and commenced operations on December 20, 2000.
|--- | ---------------------------------------------------------------------------------------------



ITEM 7. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION FOR THE YEAR ENDED DEC. 31, 2004.



TECO Capital Trust I was formed on November 20, 2000 and issued to the
public 8,000,000 of its trust preferred securities for an aggregate purchase price of $200,000,000 on December 20, 2000. The proceeds from the issuance were remitted to the TECO Funding Company I, LLC (the LLC) in exchange for 8,000,000
company preferred securities for an aggregate purchase price of $200,000,000. TECO Energy purchased all of the company common securities of the LLC for an aggregate purchase price of $6,200,000. The LLC remitted the proceeds from the issuance of
both its company common securities and company preferred securities to TECO Energy in exchange for $206,200,000 aggregate principal amount of 8.50% Junior Subordinated Notes Due 2041 of TECO Energy, dated December 20, 2000, and bearing interest and
maturing on the dates and in the amounts set forth in the Indenture, dated as of August 17, 1998, by and between TECO Energy and The Bank of New York, as Trustee, as supplemented by the Third Supplemental Indenture, dated as of December 1, 2000.



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On January 17, 2003, the FASB issued FIN 46, Consolidation of Variable Interest Entities, an interpretation of ARB No.
51, which imposes a new approach in determining if a reporting entity should consolidate certain legal entities, including partnerships, limited liability companies, or trusts, among others, collectively defined as variable interest entities or
VIEs. On December 24, 2003, the FASB published a revision to FIN 46 (FIN 46R), to clarify some of the provisions of FIN 46 and exempt certain legal entities from its requirements.



Under FIN 46R, a legal entity is considered a VIE, with some exemptions if specific criteria are met, if it does not have sufficient equity
at risk to finance its own activities without relying on financial support from other parties. Additional criteria must be applied to determine if this condition is met or if the equity holders, as a group, lack any one of three stipulated
characteristics of a controlling financial interest. If the legal entity is a VIE, then the reporting entity determined to be the primary beneficiary of the VIE must consolidate it. Even if a reporting entity is not obligated to consolidate a VIE,
then certain disclosures must be made about the VIE if the reporting entity has a significant variable interest. The Trust adopted the provisions of FIN 46R as of January 1, 2004.



The LLC is considered a VIE in accordance with FIN 46R. In accordance with the guidance under FIN 46R, the Trust consolidated the LLC.
Likewise, TECO Energy deconsolidated the LLC as of January 1, 2004. As of December 31, 2004 and for the twelve-month period ended December 31, 2004, the financial statements of the Trust include the consolidated net assets and reflect the changes in
consolidated net assets of the LLC and all inter-company/trust transactions have been eliminated. The financial statements of the Trust as of December 31, 2003 and for the twelve-month periods ended December 31, 2003 and 2002 have not been restated
to reflect the consolidation of the LLC. The cumulative effect of the adoption of FIN 46R was to recognize the cash on hand at the LLC as of January 1, 2004.



The trust preferred securities represent undivided beneficial interests in the assets of the Trust, which on a consolidated basis consist of a corresponding amount of the
company preferred securities. Distributions on the company preferred securities are passed on to the holders of the trust preferred securities. The Trust is required to make distributions on the trust preferred securities concurrently with, and in
the same amount as, the distributions on the company preferred securities. Distributions on the company preferred securities are cumulative and will accumulate from the date they are first issued at the annual rate of 8.50% of the $25 per company
preferred security liquidation preference. Distributions are payable quarterly in arrears on January 31, April 30, July 31 and October 31 of each year. Distributions on the company preferred securities were made in 2004 and 2003 and were
subsequently distributed by the Trust to the holders of the trust preferred securities.



The trust preferred securities began trading on the New York Stock Exchange on January 12, 2001 under the symbol TE PRT.



TECO Energy owns all of the company common securities of the LLC, which, unless an event of default has occurred and is continuing with respect to the junior subordinated
notes, represent 100 percent of the voting rights in the LLC. The LLC is managed by a board of directors who are designated as managers of the LLC within the meaning of Delaware law. The directors will serve until their successors are
duly elected and qualified. The directors may appoint officers of the limited liability company from time to time to manage the day-to-day affairs of the limited liability company. All voting rights in the LLC are vested in TECO Energy as the sole
holder of the company common securities, including the right to elect the board of directors.



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Liquidity and Capital Resources:



Because the Trust is a special purpose financing entity with no separate business operations and minimal assets other than the company
preferred securities, the Trusts ability to pay distributions on the trust preferred securities depends on the ability of the LLC to pay distributions on the company preferred securities, which in turn depends on the LLCs receipt of
payments from TECO Energy. Accordingly, an evaluation of TECO Energys financial condition is relevant to an evaluation of the financial condition of the Trust and its ability to pay distributions on the trust preferred securities, and the
Trust refers you to the information about TECO Energy., including financial statements and other financial information, included in TECO Energys Quarterly Reports on Form 10-Q for the quarters ended March 31, 2004, June 30, 2004 and September
30, 2004, its Annual Report on Form 10-K for the year ended December 31, 2004, and its Current Reports on Form 8-K as filed with the Securities and Exchange Commission, copies of which may be obtained from the Director of Investor Relations at TECO
Energy, Inc., 702 North Franklin Street, Tampa, Florida 33602 or from its website at www.tecoenergy.com.



Contractual Obligations:



Contractual obligations of the Trust consist only of repayment of the principal amount of trust preferred securities ($200 million at December 31, 2004) due on January
31, 2041 and the annual payment of dividends of approximately $17 million.



ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.



On December 20, 2000, the LLC purchased junior subordinated notes from TECO Energy with an annual interest rate of 8.50% for an aggregate purchase price of $206,200,000 and issued company common securities to TECO Energy in an aggregate
amount of $6,200,000. TECO Energy has guaranteed all payments to be made on the company preferred securities. There is no public market for these company preferred securities, the junior subordinated notes or the company common securities.



ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.



INDEX TO FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA



|                                                                                                                       |  |         
|---------------------------------------------------------------------------------------------------------------------- |  | --------
|                                                                                                                       |  | Page No.
|Report of Independent Registered Certified Public Accounting Firm                                                      |  | 7       
|                                                                                                                       | 
|Statement of Net Assets Available for Trust Activities, December 31, 2004 and 2003                                     |  | 8       
|                                                                                                                       | 
|Statement of Changes in Net Assets Available for Trust Activities For the years ended December 31, 2004, 2003 and 2002 |  | 9       
|                                                                                                                       | 
|Notes to Financial Statements                                                                                          |  | 10-12   



All financial
statement schedules have been omitted since they are not required, are inapplicable or the required information is presented in the financial statements or notes thereto.



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Report of Independent Registered Certified Public Accounting Firm



To the Trustees of the TECO Capital Trust I:



In our opinion, the financial statements listed in the accompanying index present fairly, in all material respects, the net assets available for trust activities of the TECO Capital Trust I (the Trust) at December 31, 2004 and
2003, and the changes in net assets available for trust activities for each of the three years in the period ended December 31, 2004, in conformity with accounting principles generally accepted in the United States of America. These financial
statements are the responsibility of the Trusts management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our opinion.



/s/ PricewaterhouseCoopers LLP



Tampa, Florida

March 21, 2005



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TECO CAPITAL TRUST I



STATEMENT
OF NET ASSETS AVAILABLE FOR TRUST ACTIVITIES



|                                                |  |              |             |      |   |            
|----------------------------------------------- |  | ------------ | ----------- | ---- | - | -----------
|                                                |  | December 31,
|                                                |  | 2004         |             | 2003
|Assets                                          |  |              |             |      |   |            
|Cash                                            |  | $            | 12,045      |      | $ |           
|Interest Receivable  Jr. Subordinated Debt     |  |              | 2,921,166   |      |   |           
|Dividends Receivable  Co. Preferred Securities |  |              |            |      |   | 2,833,333  
|Investment in Jr. Subordinated Debt Securities  |  |              | 206,200,000 |      |   |           
|Investment in Company Preferred Securities      |  |              |            |      |   | 200,000,000
|                                                |  |              |             |      |   |            
|Total Assets                                    |  |              | 209,133,211 |      |   | 202,833,333
|                                                |  |              |             |      |   |            
|Liabilities                                     |  |              |             |      |   |            
|Trust Preferred Securities Dividends Payable    |  |              | 2,833,333   |      |   | 2,833,333  
|Minority Interest Dividends Payable             |  |              | 87,833      |      |   |           
|Trust Preferred Securities                      |  |              | 200,000,000 |      |   | 200,000,000
|Minority Interest                               |  |              | 6,200,000   |      |   |           
|                                                |  |              |             |      |   |            
|Total Liabilities                               |  |              | 209,121,166 |      |   | 202,833,333
|                                                |  |              |             |      |   |            
|Net assets available for trust activities       |  | $            | 12,045      |      | $ |           
|                                                |  |              |             |      |   |            



The accompanying notes
are an integral part of the financial statements



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TECO CAPITAL TRUST I



STATEMENT
OF CHANGES IN NET ASSETS AVAILABLE FOR TRUST ACTIVITIES



|                                                     |  |                         |             |   |                         |   |             |                         |  |   |             |  
|---------------------------------------------------- |  | ----------------------- | ----------- | - | ----------------------- | - | ----------- | ----------------------- |  | - | ----------- | -
|                                                     |  | Year endedDec. 31, 2004 |             |   | Year endedDec. 31, 2003 |   |             | Year endedDec. 31, 2002 | 
|Additions to net assets attributed to:               |  |                         |             |   |                         |   |             |                         |  |   |             |  
|Jr. Subordinated Debt Securities Interest Income     |  | $                       | 17,527,000  |   |                         | $ |            |                         |  | $ |            |  
|Company Preferred Security Dividend Income           |  |                         |            |   |                         |   | 17,000,000  |                         |  |   | 16,905,555  |  
|Interest Income  Money Market Fund                  |  |                         | 1,228       |   |                         |   |            |                         |  |   |            |  
|                                                     |  |                         |             |   |                         |   |             |                         |  |   |             |  
|                                                     |  |                         | 17,528,228  |   |                         |   | 17,000,000  |                         |  |   | 16,905,555  |  
|                                                     |  |                         |             |   |                         |   |             |                         |  |   |             |  
|Deductions from net assets attributed to:            |  |                         |             |   |                         |   |             |                         |  |   |             |  
|Trust Preferred Securities Dividends                 |  |                         | (17,000,000 | ) |                         |   | (17,000,000 | )                       |  |   | (16,905,555 | )
|Minority Interest Dividends                          |  |                         | (527,000    | ) |                         |   |            |                         |  |   |            |  
|Administrative and General Expenses                  |  |                         | (2,961      | ) |                         |   |            |                         |  |   |            |  
|                                                     |  |                         |             |   |                         |   |             |                         |  |   |             |  
|                                                     |  |                         | (17,529,961 | ) |                         |   | (17,000,000 | )                       |  |   | (16,905,555 | )
|                                                     |  |                         |             |   |                         |   |             |                         |  |   |             |  
|Changes in net assets available for trust activities |  |                         | (1,733      | ) |                         |   |            |                         |  |   |            |  
|Cumulative Effect of Change in Accounting Principle  |  |                         | 13,778      |   |                         |   |            |                         |  |   |            |  
|Net assets available for trust activities:           |  |                         |             |   |                         |   |             |                         |  |   |             |  
|Beginning of year                                    |  |                         |            |   |                         |   |            |                         |  |   |            |  
|                                                     |  |                         |             |   |                         |   |             |                         |  |   |             |  
|End of year                                          |  | $                       | 12,045      |   |                         | $ |            |                         |  | $ |            |  
|                                                     |  |                         |             |   |                         |   |             |                         |  |   |             |  



The accompanying notes
are an integral part of the financial statements



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NOTES TO FINANCIAL STATEMENTS



A. OVERVIEW



TECO Capital Trust I (the Trust) is a
statutory business trust that TECO Funding Company I, LLC (the LLC), a wholly owned subsidiary of TECO Energy, Inc. (TECO Energy) formed under Delaware law on November 20, 2000 pursuant to a certificate of trust filed with
the Delaware Secretary of State. The Trust is governed by an Amended and Restated Trust Agreement dated as of December 1, 2000 by and among the LLC as depositor, by The Bank of New York as property trustee, and by The Bank of New York (Delaware) as
Delaware trustee (the Trust Agreement). The Trust Agreement is qualified as an indenture under the Trust Indenture Act of 1939. The Trust issued to the public 8,000,000 trust preferred securities at the annual rate of 8.50%, with an
aggregate liquidation amount of $200 million on December 20, 2000 for the purpose of acquiring related company preferred securities from the LLC. The trust preferred securities represent a corresponding amount of company preferred securities of the
LLC. The Trust has minimal assets other than the company preferred securities. The Trust Agreement does not permit the Trust to engage in any activities other than holding the company preferred securities, issuing the trust preferred securities, and
engaging in other related activities. The trust preferred securities began trading on the New York Stock Exchange on January 12, 2001 under the symbol TE PRT. At December 31, 2004, the trust preferred securities had a carrying amount of
$200 million and an estimated fair market value of $211 million. The estimated fair market value was based on quoted market prices.



The LLC sold company preferred securities to the Trust and company common securities to TECO Energy. The LLC used the proceeds from the sale of the
company preferred securities and the company common securities to buy from TECO Energy a series of 8.50% junior subordinated notes due January 31, 2041, with the same financial terms as the company preferred securities. TECO Energy has guaranteed
payments to be made on the company preferred securities pursuant to a guarantee agreement. TECO Energy has indirectly guaranteed payments to be made to the holders of the trust preferred securities as a result of their beneficial interest in the
company preferred securities.



The cumulative cash
distributions are subject to certain deferral provisions. TECO Energy can defer interest payments on the underlying junior subordinated notes for up to five years, but not beyond the maturity date on the junior subordinated notes of January 31,
2041. If TECO Energy defers interest payments on the junior subordinated notes, the Trust will defer distributions on the trust preferred securities. During any deferral period, distributions on the trust preferred securities will continue to
accumulate quarterly at the annual rate of 8.5% of the stated liquidation amount.



TECO Energy may elect to redeem the junior subordinated notes in whole, at any time, or in part, from time to time, on or after December 20, 2005, at a redemption price equal to 100% of the principal amount to be
redeemed plus any accrued and unpaid interest to the redemption date. If all or part of the junior subordinated notes are redeemed, the LLC must redeem a corresponding amount of the company preferred securities and the common securities and,
consequently, the Trust must redeem a corresponding amount of trust preferred securities.



As long as the trust preferred securities remain outstanding, TECO Energy is required to maintain a 100% direct or indirect ownership in the company common securities issued by the LLC. TECO Energy was in compliance
with this covenant at December 31, 2004.



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B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES



BASIS OF PRESENTATION



Additions to net assets, including dividend income, and deductions from net assets, including dividend distributions, are recognized on an accrual basis.
Dividend distributions accumulated from the date the Trust issued the trust preferred securities and are payable quarterly in arrears on January 31, April 30, July 31 and October 31 of each year, beginning January 31, 2001.



On January 17, 2003, the FASB issued FIN 46, Consolidation of Variable
Interest Entities, an interpretation of ARB No. 51, which imposes a new approach in determining if a reporting entity should consolidate certain legal entities, including partnerships, limited liability companies, or trusts, among others,
collectively defined as variable interest entities or VIEs. On December 24, 2003, the FASB published a revision to FIN 46 (FIN 46R), to clarify some of the provisions of FIN 46 and exempt certain legal entities from its requirements.



Under FIN 46R, a legal entity is considered a VIE, with some exemptions if
specific criteria are met, if it does not have sufficient equity at risk to finance its own activities without relying on financial support from other parties. Additional criteria must be applied to determine if this condition is met or if the
equity holders, as a group, lack any one of three stipulated characteristics of a controlling financial interest. If the legal entity is a VIE, then the reporting entity determined to be the primary beneficiary of the VIE must consolidate it. Even
if a reporting entity is not obligated to consolidate a VIE, then certain disclosures must be made about the VIE if the reporting entity has a significant variable interest. The Trust adopted the provisions of FIN 46R as of January 1, 2004.



In November 2000, TECO Energy established TECO Funding Company
I, LLC (the LLC). This limited-liability company is a wholly-owned subsidiary of TECO Energy. This LLC sold preferred securities to the Trust. The LLC used the proceeds to purchase subordinated notes from TECO Energy. The subordinated notes are not
secured by specific assets of TECO Energy. The terms of these notes are similar to the terms of the preferred securities. The LLC is considered a VIE in accordance with FIN 46R. In accordance with the guidance under FIN 46R, the Trust consolidated
the LLC. Likewise, TECO Energy deconsolidated the LLC as of January 1, 2004. As of December 31, 2004 and for the twelve-month period ended December 31, 2004, the financial statements of the Trust include the consolidated net assets and reflect the
changes in consolidated net assets of the LLC and all inter-company/trust transactions have been eliminated. The financial statements of the Trust as of December 31, 2003 and for the twelve-month periods ended December 31, 2003 and 2002 have not
been restated to reflect the consolidation of the LLC. The cumulative effect of the adoption of FIN 46R was to recognize the cash on hand at the LLC as of January 1, 2004.



INCOME TAXES



The Trust is characterized for United States federal income tax purposes as a grantor trust and will not be taxed as a corporation. For income tax
purposes, any income or losses from the Trust are passed through to the holders of the trust preferred securities. Therefore, no provision for income taxes has been included on the Trusts financial statements.



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C. RELATED PARTIES



During the years ended 2004 and 2003, the LLC recognized and received interest income on the junior subordinated notes from TECO Energy of $17,527,000.
During the years ended December 31, 2004 and 2003, the Trust recognized and received dividend income on the company preferred securities of $17,000,000. The LLC also paid dividends on the company common securities of $527,000 to TECO Energy during
2004 and 2003. TECO Energy is the sole minority interest shareholder of the LLC, as discussed in Note B.



ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON FINANCIAL DISCLOSURE.



During the period Jan. 1, 2003 to the date of this report, neither TECO Energy nor TECO Capital Trust I has had or has filed with the Commission a report
as to any changes in or disagreements with accountants on accounting principles or practices, financial statement disclosure, or auditing scope or procedure.



ITEM 9A. CONTROLS AND PROCEDURES.



Conclusions Regarding Effectiveness of Disclosure Controls and Procedures.



TECO Energy, Inc. (the Company) is designated to make compliance filings on behalf of the Trust. The Companys
management, with the participation of its principal executive officer and principal financial officer, has evaluated the effectiveness of the Trusts disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e)
under the Securities Exchange Act of 1934, as amended (the Exchange Act)) as of the end of the period covered by this annual report (the Evaluation Date). Based on such evaluation, the principal executive officer and
principal financial officer have concluded that, as of the Evaluation Date, the Trusts disclosure controls and procedures are effective and designed to ensure that the information relating to the Trust required to be disclosed in the
Trusts reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the requisite time periods.



Changes in Internal Control over Financial Reporting.



There was no change in the Trusts internal control 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 the Trusts internal controls that occurred during the Trusts last fiscal quarter that has materially affected, or is reasonably likely to materially affect, such controls.



ITEM 9B. OTHER INFORMATION.



None.



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PART III



ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT.



The Bank of New York (Delaware), a Delaware banking corporation, acts as the Delaware Trustee, pursuant to the certificate of trust that formed the Trust in November
2000. The Trust has no executive officers or directors.



ITEM 11. EXECUTIVE
COMPENSATION.



Not applicable.



ITEM 12. SECURITY OWNERSHIP OF BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER
MATTERS.



Not applicable.



ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.



Not applicable.



ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES.



The LLC pays all fees and expenses related to the Trust including audit fees. The following table presents fees for professional audit
services rendered by PricewaterhouseCoopers LLP for the audit of the Trusts annual financial statements for the years ended December 31, 2004 and December 31, 2003.



|                   |  |      |        |      |   |       
|------------------ |  | ---- | ------ | ---- | - | ------
|                   |  | 2004 |        | 2003
|Audit fees         |  | $    | 25,000 |      | $ | 24,050
|Audit-related fees |  |      |       |      |   |      
|Tax fees           |  |      |       |      |   |      
|All other fees     |  |      |       |      |   |      
|                   |  |      |        |      |   |       
|Total              |  | $    | 25,000 |      | $ | 24,050
|                   |  |      |        |      |   |       



Audit fees consist of professional
services for the audit of the Trusts annual financial statements and review of financial statements included in the Trusts 10-Q filings.



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##### Table of Contents

PART IV



ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.



|(a) | Certain documents filed as part of this report.
|--- | -----------------------------------------------



| | 1. | Financial Statements
| | -- | --------------------



The financial statements are listed under Item 8 of this report.



| | 2. | Financial Statement Schedules
| | -- | -----------------------------



None



| | 3. | Exhibits  See index on page 16
| | -- | -------------------------------



|(b) | The exhibits filed as part of this Form 10-K are listed on the Exhibit Index immediately preceding such Exhibits. The Exhibit Index is incorporated herein by reference.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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SIGNATURE



Pursuant to the requirements of Section 13 or 15(d) of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.



|                     |  |  |  |                      |  |                             |  | 
|-------------------- |  |  |  | -------------------- |  | --------------------------- |  | 
|                     |  |  |  | TECO CAPITAL TRUST I
|                     |  |  | 
|                     |  |  |  | By:                  |  | TECO Energy, Inc.          
|                     |  |  |  |                      |  | as designated signatory    
|                     |  |  | 
|Date: March 30, 2005 |  |  |  | By:                  |  | /s/ Gordon L. Gillette     
|                     |  |  |  | Name:                |  | Gordon L. Gillette         
|                     |  |  |  | Title:               |  | Principal Financial Officer



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##### Table of Contents

EXHIBIT INDEX



|     |  |                                                                                                                                                                                                                                                                                                         
|---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|3.1  |  | Amended and Restated Trust Agreement of TECO Capital Trust I dated as of December 1, 2000.(1)                                                                                                                                                                                                           
|     | 
|4.1  |  | Indenture dated as of August 17, 1998 between TECO Energy, Inc. and The Bank of New York, as trustee. Filed as Exhibit 4 to TECO Energy, Inc.s Amendment No. 1 to Registration Statement
on Form S-3 (No. 333-60819) filed with the Commission on August 24, 1998 and incorporated herein by reference.
|     | 
|4.2  |  | Certificate of Trust of TECO Capital Trust I.(2)                                                                                                                                                                                                                                                        
|     | 
|4.3  |  | Trust Agreement of TECO Capital Trust I.(2)                                                                                                                                                                                                                                                             
|     | 
|4.4  |  | Third Supplemental Indenture dated as of December 1, 2000 by and between TECO Energy, Inc. and The Bank of New York.(2)                                                                                                                                                                                 
|     | 
|4.5  |  | Certificate representing Trust Preferred Securities issued by TECO Capital Trust I.(2)                                                                                                                                                                                                                  
|     | 
|4.6  |  | Amended and Restated Limited Liability Company Agreement of TECO Funding Company I, LLC dated as of December 1, 2000.(2)                                                                                                                                                                                
|     | 
|4.7  |  | Guarantee Agreement dated as of December 1, 2000 by and between TECO Energy, Inc. as Guarantor and The Bank of New York as Guarantee Trustee.(2)                                                                                                                                                        
|     | 
|4.9  |  | 8.5% Junior Subordinated Notes due January 31, 2041.(2)                                                                                                                                                                                                                                                 
|     | 
|4.10 |  | Certificate representing company preferred securities issued by TECO Funding Company I, LLC.(2)                                                                                                                                                                                                         
|     | 
|23.1 |  | Consent of Independent Certified Public Accountants. Filed herewith.                                                                                                                                                                                                                                    
|     | 
|31.1 |  | Certification of the Chief Executive Officer of TECO Energy, Inc. pursuant to Securities Exchange Act Rules 13a-15(e) and 15d-15(e) as adopted pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.                                                                                               
|     | 
|31.2 |  | Certification of the Chief Financial Officer of TECO Energy, Inc. pursuant to Securities Exchange Act Rules 13a-15(e) and 15d-15(e) as adopted pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002                                                                                                
|     | 
|32   |  | Certification by Chief Executive Officer and Chief Financial Officer of TECO Energy, Inc. of Periodic Financial Report Pursuant to 18 U.S.C. Section 1350.                                                                                                                                              
|     | 
|99.1 |  | The consolidated financial statements of TECO Energy, Inc. and its subsidiaries included in Item 8 of TECO Energy, Inc.s Annual Report on Form 10-K. Filed as Item 8 to TECO Energy,
Inc.s Annual Report on Form 10-K filed on March 15, 2005 (File No. 1-08180) and incorporated herein by reference.

---

|(1) | Incorporated by reference to the identically titled exhibit to the Current Report on Form 8-K (File No. 1-08180) filed by TECO Energy, Inc. on December 21, 2000.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Incorporated by reference to the identically titled exhibit to the Registration Statement on
Form S-3 (File No. 333-50808) filed by TECO Capital Trust I on November 28, 2000.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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