Exhibit 10.1

                         TECO ENERGY GROUP
               SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
                        FOR ROBERT D. FAGAN


SECTION 1.     PURPOSE AND EFFECTIVE DATE
     The  purpose of this plan is to provide Robert D. Fagan, Chief
Executive  Officer  of TECO Energy, Inc. with additional retirement
income  by supplementing the retirement benefits provided under the
retirement plan.  The plan is effective as of May 24, 1999.


SECTION 2.     DEFINITIONS

     This  section  contains definitions of terms used in the plan.
Where  the  context  so requires, the singular includes the plural,
and the plural includes the singular.
     2.1  Annual  earnings  will  have  the  same meaning as in the
retirement  plan,  except  that the same will be determined without
regard  to  (a)  any dollar limitation on such annual earnings that
may  be  imposed  under the retirement plan or (b) any reduction in
taxable  income as a result of voluntary salary reduction deferrals
under the TECO Energy Group Retirement Savings Excess Benefit Plan.

     2.2  Average  annual  earnings  of Mr. Fagan as of any date of
reference  means  the  average of his annual earnings during the 36
consecutive  months  of  active  employment  preceding  the date of
reference.   Bonuses are included as compensation for the period in
which paid, provided that if more than three regular annual bonuses
are paid in any 36 consecutive month period, only the largest three
bonuses will be counted.
     2.3  Board means the Board of Directors of TECO Energy.

     2.4  C o m mittee  means  the  retirement  plan  committee  as
constituted under the retirement plan.
     2.5  TECO  Energy means TECO Energy, Inc. and any successor to
all  or a major portion of its assets or business which assumes the
obligations of TECO Energy, Inc. under this plan.

     2.6  Disability  income  plan  means  the  TECO  Energy  Group
Disability Income Plan, as amended from time to time.
     2.7  Plan  means  the TECO Energy Group Supplemental Executive
Retirement  Plan  for  Robert  D.  Fagan, as set forth in this plan
instrument, and as it may be amended from time to time.
     2.8  Retirement  means  termination  of Mr. Fagan s employment
with TECO Energy by Mr. Fagan or TECO Energy for any reason.

     2.9  Retirement  plan  means  the TECO Energy Group Retirement
Plan, as amended from time to time.

     2.10 Service  will  have the same meaning as  plan service  in
the retirement plan.

     2.11 Social  security  benefit  of Mr. Fagan as of any date of
reference  (the    computation  date  ) means the primary insurance
amount  to which he is or would be entitled, payable under Title II
of  the Social Security Act as in effect on such date, based on the
assumptions:  (a)  that no changes in the benefit levels payable or
the  wage base under Title II occur after the computation date; (b)
that,  if  the  computation date falls before his 63   birthday, his
annual  earnings  during the calendar year in which the computation
date  falls  and  during  any  subsequent  calendar year before the
calendar  year  in  which  his 63   birthday falls is zero; (c) that

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payment  of his primary insurance amount begins for the month after
he  reaches  age  63,  or  his  retirement  date  if later, without
reduction or delay because of future gainful employment or delay in
applying for benefits; and (d) that his earnings for calendar years
before  the  calendar year in which the computation date falls will
be  determined  using his actual earnings history if available, and
otherwise  by  applying a six percent retrospective salary scale to
his rate of annual earnings in effect on the computation date.  The
social  security  benefit  of Mr. Fagan if he retires after his 66
birthday will include any delayed retirement credit.
     2.12 Survivor income plan means the TECO Energy Group Survivor
Income Plan, as amended from time to time.



SECTION 3.     RETIREMENT BENEFITS
     3.1  Amount.   Subject to the reductions in Section 6.1 below,
Mr.  Fagan  will  receive a supplemental monthly retirement benefit
equal  to  one-twelfth  of the greater of (a) (1) the sum of (A) 20
percent and (B) four percent multiplied by his years of service (or
portions  thereof),  multiplied by (2) his average annual earnings,
up  to  a maximum benefit of 60 percent of his average earnings (60
percent  is  equal  to 20 percent plus four percent multiplied by a
maximum  of  ten  years of service), and (b) $160,000.  Mr. Fagan s
retirement  benefit hereunder will be calculated using his years of
service (or portions thereof) and average annual earnings as of his
actual date of retirement.
     3.2  Form of Payment.

          (a)  Normal form of retirement benefits.  The normal form
of retirement benefit payable to Mr. Fagan under the plan is a life
annuity.    Benefits  payable  in the normal form will begin on the
first  day  of the month coinciding with or next following the date
of Mr. Fagan s retirement.
          (b)  Optional  lump  sum  benefit.  In lieu of the normal
form  of  benefit,  Mr.  Fagan  may elect to receive payment of his
benefit  in  the  form of a commuted single sum payment that is the
actuarial  equivalent  of the normal form of benefit (including the
value of the post-retirement surviving spouse benefit under Section
4.2(c)).    If Mr. Fagan elects to receive a lump sum payment, such
payment  will be made on the first day of the month coinciding with
or  next  following  the  date  Mr.  Fagan s employment terminates.
Actuarial  equivalence  will  be based on the actuarial assumptions
specified  from  time  to  time in the retirement plan for lump sum
payments.  Mr.  Fagan s election to receive a lump sum payment will
be  effective  only with respect to a retirement occurring at least
12  months  after the date Mr. Fagan submits the election, provided
that  elections  submitted  on  or  before  June  30,  1999 will be
immediately effective.



SECTION 4.     SURVIVING SPOUSE BENEFIT
     4.1  Eligibility.    Mr. Fagan s surviving spouse will receive
the  surviving  spouse  benefit  if  Mr.  Fagan and his spouse were
married  to  each  other  for  at least the 12 months preceding Mr.
Fagan  s  death  and,  in  the  case  of  Mr.  Fagan  s death after
retirement,  Mr. Fagan and his spouse were married to each other on
Mr. Fagan s date of retirement.

     4.2  Amount  of  surviving  spouse  benefit.    Subject to the
reductions  described  in  Section  6.2 below, the benefit provided
under  the  plan to Mr. Fagan s surviving spouse will be determined
as follows:

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          (a)  Pre-retirement  before  age  63.   If Mr. Fagan dies
during  employment  with  TECO  Energy and before his 63rd birthday,
his surviving spouse will receive a monthly survivor income payment
equal  to  50  percent of his monthly projected retirement benefit.
Mr.  Fagan  s  monthly  projected retirement benefit is the monthly
benefit  he  would  have received if he had retired at age 63 under
Section 3.1 calculated using his average annual earnings determined
as of his date of death.
          (b)  Pre-retirement  on  or  after  age 63.  If Mr. Fagan
dies  during  employment  with  TECO  Energy  on or after his 63rd
birthday,  his  surviving  spouse  will  receive a monthly survivor
income  payment  equal  to  50  percent  of  his monthly retirement
benefit  earned  under  Section  3.1 using his years of service (or
portions thereof) and his average annual earnings as of his date of
death.

          (c)  Post-retirement.   If Mr. Fagan dies on or after the
date of his retirement, his surviving spouse will receive a monthly
survivor  income payment equal to 50 percent of the monthly benefit
payment he was receiving at his death (or would have received if he
had survived until the first payment date).
     4.3  Form  and  time  of  surviving spouse benefit.  Surviving
spouse benefits under this Section 4 will be payable in the form of
a  life  annuity  to  the  surviving spouse.  Benefit payments will
begin  on  the  first  day  of  the  month  coinciding with or next
following the date of Mr. Fagan s death.
     4.4  Death benefit where lump sum paid.  If Mr. Fagan received
a  lump  sum  payment  of  his  benefit  under  Section  3.2(b), no
surviving  spouse  benefit  or  other death benefit will be payable
under the plan to any person.



SECTION 5.     DISABILITY
     5.1  If  Mr.  Fagan  suffers a total disability (as defined in
the  disability  income  plan)  before  his  63rd birthday, he will
continue  to  be  credited  with  service  as  if  he were actively
employed by TECO Energy during his period of total disability.  Mr.
Fagan  may not receive benefits under this plan at any time when he
is receiving disability income payments under the disability income
plan.    Benefits  under  this  plan will begin when payments cease
under the disability income plan.

     5.2  Mr.  Fagan  s disability date is his last day of work for
TECO  Energy  before becoming unable to continue working because of
his  total  disability.   A period of total disability of Mr. Fagan
will  begin  on  his disability date and will end on the earlier of
the  last  day  of  the  month in which his final disability income
payment  is  due under the disability income plan or on the date he
retires hereunder and starts receiving benefit payments.
     5.3  If  Mr. Fagan does not return to active service with TECO
Energy  after suffering a total disability, his retirement benefits
under  Section  3  will  be  calculated  using  his  average annual
earnings  as  of  his  disability date, his total service including
service  credited  under  Section 5.1 above, and his primary social
security benefit as of his date of disability.

     5.4  If  Mr.  Fagan  dies while disabled, his surviving spouse
will,  if  eligible,  receive  the  pre-retirement surviving spouse
benefit determined under Section 4.2(a) or (b).


SECTION 6.     OFFSET FOR OTHER PAYMENTS


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     6.1  Mr.  Fagan  s retirement benefit will be reduced (but not
below  zero)  by  the  following  payments,  with  such  reductions
starting  when such payments are assumed to begin:  (a) 100 percent
of  the  social security benefit of Mr. Fagan assuming such benefit
begins  on  the later of his 63rd birthday or the date of his actual
retirement  and  (b)  the  amount of his benefit payments under the
retirement  plan  and  any  tax-qualified  or  nonqualified defined
benefit retirement plan of former employers of Mr. Fagan (converted
in all cases to a life annuity if such payments are in a form other
than  a  life  annuity, using the actuarial assumptions in the TECO
Energy  retirement plan), assuming such payments begin on the later
of  the  earliest  date  on which he could begin receiving payments
from such plan or the date of his actual retirement.
     6.2  The  benefit  of  Mr.  Fagan  s  surviving spouse will be
reduced (but not below zero) by the following payments to her:  (a)
payments under the survivor income plan, and (b) payments under the
retirement  plan  and  any  tax-qualified  or  nonqualified defined
benefit retirement plans of former employers of Mr. Fagan.



SECTION 7.     BENEFITS NOT CURRENTLY FUNDED
     7.1  Nothing  in this plan will be construed to create a trust
or  to  obligate  TECO  Energy or any other employer to segregate a
fund, purchase an insurance contract, or in any other way currently
to  fund  the  future  payment  of any benefits hereunder, nor will
anything  herein be construed to give Mr. Fagan or any other person
rights  to  any  specific  assets  of  TECO  Energy or of any other
employer or entity.
     7.2  Notwithstanding  Section 7.1, TECO Energy has established
a  grantor  trust of which it is treated as the owner under Section
671  of  the  Internal  Revenue  Code to provide for the payment of
benefits hereunder.



SECTION 8.     ADMINISTRATION
     The  plan  will  be  administered by the committee, which will
have full power and authority to construe, interpret and administer
the  plan.  Decisions of the committee will be final and binding on
all  persons.    The committee may, in its discretion, adopt, amend
and rescind rules and regulations relating to the administration of
the plan.


SECTION 9.     RIGHTS NON-ASSIGNABLE

     Neither  Mr. Fagan, his surviving spouse, nor any other person
will have any right to assign or otherwise to alienate the right to
receive payments under the plan, in whole or in part.


SECTION 10.    OTHER BENEFIT PLANS
     This plan will supersede any obligation to pay benefits to Mr.
Fagan  under  the  excess  benefit plan contained in the retirement
plan  or  the  TECO  Energy Group Supplemental Executive Retirement
Plan,  as  they may be amended from time to time.  No benefits will
be  payable to Mr. Fagan under such excess benefit plan or the TECO
Energy Group Supplemental Executive Retirement Plan.






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SECTION 11.    AMENDMENT
     TECO  Energy  reserves  the right at any time by action of the
board  to  amend the plan in any way.  However, no amendment of the
plan  may  reduce  the  benefits  to  be  paid  to Mr. Fagan or his
surviving  spouse below those that would have been paid if the plan
had continued without change to the date of Mr. Fagan s retirement.

     Executed as of May 24, 1999


                              TECO ENERGY, INC.


                              By:  /s/ G. F. Anderson
                                   G. F. Anderson
                                   Chairman of the Board















































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