# EDGAR Filing Document

**Accession Number:** 0000096271
**File Stem:** 0001193125-23-002428
**Filing Date:** 2023-1
**Character Count:** 56947
**Document Hash:** 7443f90253c3d55582e70f58b0700e57
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-23-002428.hdr.sgml**: 20230105

**ACCESSION NUMBER**: 0001193125-23-002428

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230101

**ITEM INFORMATION**: Entry into a Material Definitive Agreement

**ITEM INFORMATION**: Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230105

**DATE AS OF CHANGE**: 20230105

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** TAMPA ELECTRIC CO
- **CENTRAL INDEX KEY:** 0000096271
- **STANDARD INDUSTRIAL CLASSIFICATION:** ELECTRIC SERVICES [4911]
- **IRS NUMBER:** 590475140
- **STATE OF INCORPORATION:** FL
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-05007
- **FILM NUMBER:** 23511625

**BUSINESS ADDRESS:**
- **STREET 1:** 702 N FRANKLIN ST
- **STREET 2:** TECO PLZA
- **CITY:** TAMPA
- **STATE:** FL
- **ZIP:** 33602
- **BUSINESS PHONE:** 8132284111

**MAIL ADDRESS:**
- **STREET 1:** TAMPA ELECTRIC CO
- **STREET 2:** TECO PLAZA 702 N FRANKLIN ST
- **CITY:** TAMPA
- **STATE:** FL
- **ZIP:** 33602

?xml version="1.0" encoding="utf-8" ? Form 8-K

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### UNITED STATES

### SECURITIES AND EXCHANGE COMMISSION

#### Washington, D.C. 20549

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### FORM 8-K

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#### CURRENT REPORT

#### Pursuant to Section 13 or 15(d)

#### of the Securities Exchange Act of 1934

#### Date of Report (Date of earliest event reported): January 1, 2023

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## TAMPA ELECTRIC COMPANY

#### (Exact name of registrant as specified in its charter)

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| | | |
|:---|:---|:---|
| **Florida** | **1-5007** | **59-0475140** |
| **(State or other jurisdiction**<br> **of incorporation)** | **(Commission**<br> **File Number)** | **(IRS Employer**<br> **Identification No.)** |

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#### TECO Plaza

#### 702 N. Franklin Street

#### Tampa, Florida 33602

#### (Address of principal executive offices)
(813) 228-1111

#### (Registrant's telephone number, including area code)

#### N/A

#### (Former name or former address, if changed since last report)

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Securities Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act: None

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act (§230.405 of this chapter) or Rule 12b-2 of the Exchange Act (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant 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. ☐

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| | |
|:---|:---|
| **Item 1.01.** | **Entry into a Material Definitive Agreement.** |

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On January 1, 2023 (the "Effective Date"), Tampa Electric Company ("Tampa Electric"), a subsidiary of TECO Energy, Inc. ("TECO"), entered into a Contribution Agreement (the "Contribution Agreement") with Peoples Gas System, Inc. ("PGSI"), which on the Effective Date was a wholly-owned subsidiary of Tampa Electric. Per the terms of the Contribution Agreement, Tampa Electric contributed the assets and liabilities of its natural gas division to PGSI and PGSI accepted the assets and assumed the liabilities, as of the Effective Date. Following the contribution, the stock of PGSI was distributed by Tampa Electric to its parent TECO, which in turn contributed the stock of PGSI to another wholly-owned TECO subsidiary.

Also on the Effective Date, as part of the contribution of assets and assumption of liabilities, Tampa Electric, as lender, and PGSI, as borrower, entered into a Loan Agreement (the "Loan Agreement"). Pursuant to the terms of the Loan Agreement, Tampa Electric agreed to make (i) a term loan in the principal amount of $670,000,000 (the "Term Loan") and (ii) an initial revolving loan in the principal amount of $66,000,000 (the "Revolving Loans") to PGSI, which loans represent the portion of Tampa Electric's previously incurred indebtedness that was attributable to its natural gas division. In addition, Tampa Electric agreed to make certain additional revolving loans to PGSI. The maturity date for the Term Loan and the Revolving Loans is December 29, 2023. Under the Loan Agreement, PGSI agrees to reimburse Tampa Electric for all interest, prepayment premiums and costs incurred by Tampa Electric in connection with the loans.

Following the completion of the foregoing transactions, the former natural gas division of Tampa Electric will be operated by PGSI as a separate, indirect subsidiary of TECO.

The foregoing descriptions of the Contribution Agreement and the Loan Agreement are qualified in their entirety by reference to the complete text of each of the Contribution Agreement and the Loan Agreement, which are filed as Exhibit 10.1 and 10.2, respectively, to this Report and incorporated herein by reference.

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| | |
|:---|:---|
| **Item 2.03.** | **Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.** |

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The information provided in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.

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| | |
|:---|:---|
| **Item 9.01.** | **Financial Statements and Exhibits.** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Exhibits.

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| | |
|:---|:---|
| 10.1 | [Contribution Agreement dated January 1, 2023 between Tampa Electric Company and Peoples Gas System, Inc.](d637088dex101.htm) |
| 10.2 | [Loan Agreement dated January 1, 2023 between Tampa Electric Company and Peoples Gas System, Inc.](d637088dex102.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

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#### 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 hereunto duly authorized.

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| | | |
|:---|:---|:---|
| Date: January 5, 2023 |  | **TAMPA ELECTRIC COMPANY**<br> (Registrant) |
|  | By: | /s/ Michelle V. Szekeres |
|  |  | Michelle V. Szekeres |
|  |  | Associate General Counsel and Corporate Secretary |

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## Exhibit 10.1

**Exhibit 10.1** 

**CONTRIBUTION AGREEMENT** 

THIS CONTRIBUTION AGREEMENT, dated as of January 1, 2023 (this "<u>Agreement</u>"), is by and between **Peoples Gas System, Inc**., a Florida corporation ("<u>PGSI</u>") and **Tampa Electric Company**, a Florida corporation ("<u>Tampa Electric</u>"). PGSI and Tampa Electric each a "<u>Party</u>" and, collectively, they are sometimes referred to as the "<u>Parties</u>."

**W I T N E S S E T H:** 

WHEREAS, TECO Energy, Inc., a Florida corporation ("<u>TECO</u>") owns 100% of the issued and outstanding capital stock of Tampa Electric;

WHEREAS, Tampa Electric has an electric division and the natural gas division known as Peoples Gas System (the "<u>Gas Division</u>") each of which is regulated by the Florida Public Service Commission, and each maintain separate books and records;

WHEREAS, prior to the Closing and the transactions described in these recitals below, Tampa Electric owns (i) 100% of the issued and outstanding capital stock of PGSI and (ii) the Assets (as defined below) which are all of the assets of the Gas Division and 100% of the issued and outstanding capital stock (the "<u>TPI Stock</u>") of TECO Partners, Inc., a Florida corporation ("<u>TPI</u>");

WHEREAS, Tampa Electric desires to contribute, transfer, assign and deliver to PGSI, and PGSI desires to accept the Assets, including the TPI Stock; and

WHEREAS, after the contribution, transfer, assignment and delivery of the Assets to PGSI; Tampa Electric will distribute, transfer and assign 100% of the issued and outstanding capital stock of PGSI (the "<u>Peoples Stock</u>") to TECO, which in turn will contribute the Peoples Stock to TECO Gas Operations, Inc., a Florida corporation and a wholly-owned subsidiary of TECO ("<u>TGO</u>"), such that after the transactions contemplated by this Agreement and such distributions, PGSI will own the Assets and be a direct, wholly-owned subsidiary of TGO.

NOW, THEREFORE, in consideration of the premises and the representations, warranties, covenants and agreements stated herein, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, covenant and agree as follows:

**ARTICLE I** 

**CONTRIBUTION AND DELIVERY** 

**Section 1.1 Assets**. Subject to the terms and conditions of this Agreement, and on the basis of the representations and warranties hereinafter set forth, at the Closing (as hereinafter defined), Tampa Electric shall contribute, transfer, convey, assign and deliver to PGSI, and PGSI shall accept and acquire from Tampa Electric, the TPI Stock and all of the assets of the Gas Division, which are listed on <u>Exhibit A</u> attached hereto (collectively, the "<u>Assets</u>"). After completion of the audit of the financial statements of the Gas Division as at December 31, 2022, the Parties agree to amend this Agreement to replace Exhibit A with the audited financial assets of the Gas Division transferred to PGSI effective as of the Closing Date.

**Section 1.2 Excluded Assets**. Notwithstanding anything to the contrary contained in <u>Section</u> <u>1.1</u> or elsewhere in this Agreement, except for the Assets, Tampa Electric is not contributing and PGSI is not acquiring pursuant to this Agreement the following assets of Tampa Electric (collectively, the "<u>Excluded Assets</u>"), (a) any assets related to Tampa Electric's electric utility business, including assets for the generation, purchase, transmission, distribution, and wholesale and retail sale of electric energy; (b) Tampa

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Electric's allocated portion of TECO benefit plans relating to its electric utility business, including all rights and obligations thereunder; (c) books and records that relate to (i) the organizational or governance proceedings of Tampa Electric, (ii) Tampa Electric's tax returns and tax records, or (iii) the Excluded Assets; and (d) Tampa Electric's allocated portion of any insurance policies and rights thereunder relating to its electric utility business, including pre-paid insurance premiums.

**Section 1.3 Closing**. The closing of the contribution, transfer, conveyance and assignment of the Assets (the "<u>Closing</u>") provided for in this Agreement shall take place at the offices of Tampa Electric or remotely pursuant to the exchange of electronic documents, as of 12:01 a.m. on January 1, 2023 (the "<u>Closing Date</u>").

**Section 1.4 Closing Deliveries**.

(a) At the Closing, Tampa Electric shall deliver to PGSI the following, representing all of the assets of its Gas Division:

(i) the Assets;

(ii) a Bill of Sale, in the form attached hereto as <u>Exhibit B</u> (the "<u>Bill of Sale</u>"), transferring to PGSI title to all of the Assets, duly executed by Tampa Electric;

(iii) an Assignment and Assumption of Franchises, in the form attached hereto as <u>Exhibit C-1</u> (the "<u>Franchise Assignment</u>"), transferring to PGSI all of the franchises of its Gas Division, duly executed by Tampa Electric;

(iv) an Assignment and Assumption of General Contracts, in the form attached hereto as <u>Exhibit C-2</u> (the "<u>Contract Assignment</u>"), transferring to PGSI all of the other contracts of its Gas Division, duly executed by Tampa Electric;

(v) a Quit Claim Deed for each fee owned property by the Gas Division in the form attached hereto as <u>Exhibit D-1</u> and recordable assignments for each county in which easements lie in the form attached hereto as <u>Exhibit D-2</u> (collectively, the "<u>Real Property Assignment</u>"), transferring to PGSI all of the interests in real estate including easements of its Gas Division, duly executed by Tampa Electric;

(vi) such instruments and documents reasonably necessary to transfer the TPI Stock to PGSI;

(vii) all consents and approvals required in connection with the execution, delivery and performance of this Agreement (except for (A) those consents and approvals customarily obtained post-Closing and (B) those consents and approvals for which the Parties will satisfy pursuant to <u>Section</u> <u>5.6</u>);

(viii) all Tampa Electric's books and records and other data relating to the Assets; and

(ix) such other separate instruments of assignment or transfer reasonably required by PGSI to effect the transfer of the foregoing.

(b) At the Closing, PGSI shall deliver to Tampa Electric:

(i) the Bill of Sale, duly executed by PGSI;

(ii) the Franchise Assignment, duly executed by PGSI

(iii) the Contract Assignment, duly executed by PGSI;

(iv) the Real Property Assignment, duly executed by PGSI; and

(v) such other separate instruments of assignment or transfer reasonably required by Tampa Electric.

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**ARTICLE II** 

**LIABILITIES AND OBLIGATIONS** 

**Section 2.1 Assumed Liabilities**. At the Closing, PGSI shall assume and be solely responsible for (collectively, the "<u>Assumed Liabilities</u>"):

(a) the payment, performance, observance and fulfillment of all of the debts, Liabilities, obligations of Tampa Electric related to its Gas Division or the Assets whether incurred, or related to events occurring, before, during or after the Closing Date; *provided that*, with respect to obligations for borrowed money relating to its Gas Division or the Assets, the obligations being assumed by PGSI are specified in that certain Loan Agreement between PGSI and Tampa Electric dated as of even date herewith;

(b) all risk of loss with respect to the Assets; and

(c) any damages, costs, losses, Liabilities and expenses ("<u>Damages</u>") resulting from any claim, actions, lawsuit, demand or proceeding before a governmental authority or arbitrator relating to the Assets, irrespective of whether any such Damages are the result of any fault, latent defect, condition or circumstance existing prior to the Closing Date or arising thereafter.

For the avoidance of doubt, it is the intention of the Parties that PGSI shall assume all debts, Liabilities and obligations of Tampa Electric relating to its Gas Division. The term "<u>Liability</u>" means any liability or obligation of any nature whatsoever (direct or indirect, matured or unmatured, absolute, accrued, contingent or otherwise), whether or not required by generally accepted accounting principles to be provided or reserved against on a balance sheet.

**ARTICLE III** 

**REPRESENTATIONS AND WARRANTIES OF PGSI** 

PGSI represents and warrants to Tampa Electric as follows:

**Section 3.1 Organization and Qualification**. PGSI is a corporation duly organized, validly existing and in good standing under the laws of the State of Florida and has full corporate power and authority to own, lease and operate its assets and properties and to carry on its business as it is now being conducted.

**Section 3.2 Authority; Binding Agreement**. PGSI has full power and authority to execute and deliver this Agreement and the other documents delivered by PGSI at Closing and to consummate the transactions contemplated hereby or thereby. This Agreement has been approved by the board of directors of PGSI, and no additional approvals or proceedings on the part of PGSI are necessary to authorize the execution and delivery of this Agreement or the consummation by PGSI of the transactions contemplated hereby. This Agreement has been duly executed and delivered by PGSI and, assuming the due authorization, execution and delivery hereof by Tampa Electric, constitutes a valid and binding agreement of PGSI and is enforceable against PGSI in accordance with its terms, except that such enforcement may be subject to bankruptcy, insolvency, reorganization or other similar laws affecting or relating to enforcement of creditors' rights generally.

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**Section 3.3 Non-Contravention; Approvals**.

(a) The execution and delivery of this Agreement and the other documents delivered by PGSI at Closing, and the consummation by PGSI of the transactions contemplated hereby and thereby, do not and will not violate or result in a breach of any provision of, or constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under, or result in the termination of, or accelerate the performance required by, or result in a right of termination or acceleration under, or result in the creation of any encumbrance upon any of the properties or assets of PGSI under any of the terms, conditions or provisions of (i) the articles of incorporation or bylaws of PGSI, (ii) any statute, law, ordinance, rule, regulation, judgment, decree, order, injunction, writ, permit or license of any court or governmental authority applicable to PGSI, or (iii) any note, bond, mortgage, indenture, deed of trust, license, franchise, permit, concession, contract, lease or other instrument, obligation or agreement of any kind to which PGSI is now a party or by which PGSI may be bound or affected.

(b) No declaration, filing or registration with, or notice to, or authorization, consent or approval of, any governmental or regulatory body or authority is necessary for the execution and delivery of this Agreement by PGSI or the consummation by PGSI of the transactions contemplated hereby.

**ARTICLE IV** 

**REPRESENTATIONS AND WARRANTIES OF TAMPA ELECTRIC** 

Tampa Electric represents and warrant to PGSI as follows:

**Section 4.1 Organization and Qualification**. Tampa Electric is a corporation duly organized, validly existing and in good standing under the laws of the State of Florida and has the requisite corporate power and authority to own, lease and operate the Assets and to carry on its business as it is now being conducted. Tampa Electric is duly qualified to do business as a foreign corporation and is in good standing in each jurisdiction in which the properties owned, leased, or operated by it or the nature of the business conducted by it makes such qualification necessary.

**Section 4.2 Authority; Non-Contravention; Approvals**.

(a) Tampa Electric has the full power and authority to execute and deliver this Agreement and the other documents delivered by Tampa Electric at Closing and to consummate the transactions contemplated hereby or thereby. This Agreement has been approved by the board of directors of Tampa Electric, and no additional approvals or proceedings on the part of Tampa Electric are necessary to authorize the execution and delivery of this Agreement or the consummation by Tampa Electric of the transactions contemplated hereby. This Agreement has been duly executed and delivered by Tampa Electric, and, assuming the due authorization, execution and delivery hereof by PGSI, constitutes a valid and binding agreement of Tampa Electric, enforceable against Tampa Electric in accordance with its terms, except that such enforcement may be subject to bankruptcy, insolvency, reorganization or other similar laws affecting or relating to enforcement of creditors' rights generally.

(b) The execution and delivery of this Agreement and the other documents delivered by Tampa Electric at Closing, and the consummation by Tampa Electric of the transactions contemplated hereby and thereby, do not and will not violate or result in a breach of any provision of, or constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under, or result in the termination of, or accelerate the performance required by, or result in a right of termination or acceleration under, or result in the creation of any encumbrance upon any of the properties or assets of Tampa Electric under any of the terms, conditions or provisions of (i) the articles of incorporation or bylaws of Tampa Electric, (ii) any statute, law, ordinance, rule, regulation, judgment, decree, order, injunction, writ, permit or license of

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any court or governmental authority applicable to Tampa Electric, or any of the Assets, or (iii) any note, bond, mortgage, indenture, deed of trust, license, franchise, permit, concession, contract, lease or other instrument, obligation or agreement of any kind to which Tampa Electric is now a party or by which Tampa Electric or any of Assets may be bound or affected; except in each case (in (i), (ii) or (iii) above) as would not have a material adverse effect on PGSI's ability to operate the Assets after Closing (taking into account the covenants in <u>Section</u> <u>5.6</u>).

(c) No declaration, filing or registration with, or notice to, or authorization, consent or approval of, any governmental or regulatory body or authority is necessary for the execution and delivery of this Agreement by Tampa Electric or the consummation by Tampa Electric of the transactions contemplated hereby.

**ARTICLE V** 

**CERTAIN UNDERSTANDINGS AND AGREEMENTS OF THE PARTIES** 

**Section 5.1 Confidentiality**. Each Party agrees to maintain in confidence and not disclose to any other Person the terms of the transactions contemplated hereby and the information obtained in confidence from the other Party in connection with the transactions contemplated hereby, other than (i) disclosures required to obtain the approvals for the transactions contemplated hereby; (ii) disclosures to those professionals and advisors who have a need to know; (iii) disclosures of information already available to the public that does not result from a breach of this Agreement; or (iv) any other disclosures required by applicable law or regulation (including applicable securities laws and regulations). For purposes of this Agreement, "<u>Person</u>" means any individual, corporation, partnership, limited liability company, association, trust, unincorporated entity, governmental authority, or other legal entity.

**Section 5.2 Further Assurances**. The Parties shall execute and deliver to the other, after the Closing Date, any other instrument which may be reasonably requested by the other and which is reasonably appropriate to perfect or evidence any of the contributions, assignments, transfers or conveyances contemplated by this Agreement.

**Section 5.3 Expenses and Fees**. Each Party shall be responsible for all costs and expenses incurred by such Party in connection with this Agreement and the transactions contemplated hereby, including, without limitation, any and all broker's commissions and the fees and expenses of such Party's attorneys and accountants.

**Section 5.4 Agreement to Cooperate**. Subject to the terms and conditions herein provided, the Parties hereto shall use all reasonable efforts to take, or cause to be taken, all action and to do, or cause to be done, all things necessary, proper or advisable under applicable laws and regulations to consummate and make effective the transactions contemplated hereby, including using all reasonable efforts to obtain (i) all necessary, proper or advisable waivers, consents and approvals under applicable laws and regulations to consummate and make effective the transactions contemplated hereby, and (ii) all necessary or appropriate waivers, consents or approvals of third parties required in order to preserve material contractual relationships.

**Section 5.5 Transfer Taxes**. PGSI shall be liable for and pay, and shall indemnify and hold the other Parties harmless from all transfer, sales, use, gross receipts, stamp, value added, excise, or similar taxes imposed on or relating to the transfer of the Assets.

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**Section 5.6 Transfer Restrictions**. If prohibitions against or other restrictions on the assignment or conveyance of any of the Assets without the prior written consent of third persons exist (other than those normally granted in the ordinary course of business) that if not satisfied would result in a breach by Tampa Electric or that would give a third party a right to terminate Tampa Electric's or PGSI's rights with respect to the affected Asset (a "<u>Restriction</u>"), this Agreement shall not be an undertaking to transfer any Asset in contravention of any Restriction, but the Parties shall cooperate together and use commercially reasonable efforts to obtain consents necessary or appropriate to satisfy or remove the Restriction. Alternatively, at the request of PGSI the Parties will cooperate in any reasonable and lawful arrangement designed to provide PGSI with the benefits of any Assets subject to a Restriction and to enforce, at the request of PGSI, any rights of Tampa Electric arising from the affected Asset until the Restriction is satisfied or waived. Upon satisfaction or waiver of the Restriction, the assignment of the affected Asset will become effective automatically as of the Closing Date without further action by Tampa Electric or PGSI.

**Section 5.7 Survival**. The covenants and agreements set forth in this Agreement shall be continuing and shall survive the Closing.

**Section 5.8 PGSI Acknowledgement**. ALL OF THE ASSETS CONVEYED HEREBY ARE CONVEYED "AS IS," "WHERE IS," AND "WITH ALL FAULTS," EXCEPT AS SPECIFICALLY SET OUT HEREIN. TAMPA ELECTRIC MAKES NO REPRESENTATION OR WARRANTY WHATSOEVER WHETHER EXPRESSED, IMPLIED OR STATUTORY WITH RESPECT TO THE KIND, SIZE, QUALITY, DESCRIPTION, MERCHANTABILITY, CONDITION, USE OR FITNESS FOR ANY PARTICULAR PURPOSE OF THE ASSETS, EXCEPT AS SPECIFICALLY SET OUT HEREIN. PGSI AGREES, BY ITS EXECUTION HEREOF, THAT (i) THERE ARE NO REPRESENTATIONS AND WARRANTIES EXCEPT AS SPECIFICALLY SET OUT HEREIN, (ii) IT IS NOT RELYING ON ANY REPRESENTATION OR WARRANTY OF TAMPA ELECTRIC WITH RESPECT TO THE FITNESS OF THE ASSETS FOR ANY PURPOSE INTENDED BY PGSI, (iii) IT HAS EXAMINED AND IS FAMILIAR WITH THE ASSETS AND (iv) IS ACQUIRING THE ASSETS "AS IS," "WHERE IS," AND "WITH ALL FAULTS" AND WITHOUT ANY EXPRESSED OR IMPLIED WARRANTIES OF ANY KIND, EXCEPT AS SPECIFICALLY SET OUT HEREIN, INCLUDING, BUT NOT LIMITED TO, WARRANTIES RELATED TO MATERIALS, WORKMANSHIP, MERCHANTABILITY, CONDITION, USE, OR FITNESS FOR ANY PARTICULAR PURPOSE, AND TAMPA ELECTRIC HEREBY DISCLAIMS ANY SUCH WARRANTIES.

**ARTICLE VI** 

**GENERAL PROVISIONS** 

**Section 6.1 Notices**. All notices and other communications hereunder shall be in writing and shall be deemed given if delivered personally, mailed by registered or certified mail (return receipt requested) or sent via facsimile to the Parties at the following addresses (or at such other address for a Party as shall be specified by like notice):

(a) If to PGSI, to:

Peoples Gas Company, Inc.

702 North Franklin Street

Tampa, FL 33602

Attention: Corporate Secretary

Telephone No.: (813) 228-1429

Telecopy No.: (813) 228-1328

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(b) If to Tampa Electric, to:

Tampa Electric Company

702 North Franklin Street

Tampa, FL 33602

Attention: Corporate Secretary

Telephone No.: (813) 228-1429

Telecopy No.: (813) 228-1328

**Section 6.2 Interpretation**. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the interpretation of this Agreement. In this Agreement, unless a contrary intention is specifically set forth, (i) the words "<u>herein</u>", "<u>hereof</u>" and "<u>hereunder</u>" and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section or other subdivision and (ii) reference to any Article or Section means such Article or Section hereof. No provision of this Agreement shall be interpreted or construed against any Party solely because such Party or its legal representative drafted such provision.

**Section 6.3 Entire Agreement; Assignment**. This Agreement (including the documents and instruments referred to herein and the Schedules and Exhibits attached hereto) (a) constitutes the entire agreement and supersedes all other prior agreements and understandings, both written and oral, among the Parties, or any of them, with respect to the subject matter hereof, and (b) shall not be assigned by operation of law or otherwise by either Party without the prior written consent of the other Party, which consent shall not be unreasonably withheld, conditioned or delayed.

**Section 6.4 Governing Law. THIS AGREEMENT SHALL BE GOVERNED IN ALL RESPECTS, INCLUDING VALIDITY, INTERPRETATION AND EFFECT, BY THE LAWS OF THE STATE OF FLORIDA APPLICABLE TO CONTRACTS EXECUTED AND TO BE PERFORMED WHOLLY WITHIN SUCH STATE.** 

**Section 6.5 Amendment**. This Agreement may not be amended except by an instrument in writing signed on behalf of the Parties.

**Section 6.6 Parties in Interest**. This Agreement shall be binding upon and inure solely to the benefit of each Party hereto, and nothing in this Agreement, express or implied, is intended to confer upon any other Person any rights or remedies of any nature whatsoever under or by reason of this Agreement.

**Section 6.7 Validity**. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provisions of this Agreement, which shall remain in full force and effect.

**Section 6.8 Waiver of Consequential Damages. NO PARTY SHALL HAVE ANY LIABILITY TO ANY OTHER PARTY FOR ANY CONSEQUENTIAL, INDIRECT, PUNITIVE, EXEMPLARY, OR SPECIAL DAMAGES UNDER THIS AGREEMENT OR BASED ON THE TRANSACTIONS CONTEMPLATED IN THIS AGREEMENT, WHETHER BASED IN CONTRACT, TORT, STRICT LIABILITY, OTHER LAW OR OTHERWISE.** 

**Section 6.9 Severability.** If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law or public policy, all other terms and provisions of this Agreement shall nevertheless remain in full force and effect. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that the transactions contemplated by this Agreement are fulfilled to the greatest extent possible.

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**Section 6.10 Counterparts**. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement.

**[Signature Page Follows]** 

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IN WITNESS WHEREOF, the Parties have executed and delivered this Agreement effective as of the date first written above.

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| | |
|:---|:---|
| <u>PGSI:</u> | <u>PGSI:</u> |
| PEOPLES GAS SYSTEM, INC. | PEOPLES GAS SYSTEM, INC. |
| By: | /s/ Helen Wesley |
|  | Helen Wesley |
|  | President |
| By: | /s/ Rachel Parsons |
|  | Rachel Parsons |
|  | Vice President of Finance and Planning |
| <u>TAMPA ELECTRIC:</u> | <u>TAMPA ELECTRIC:</u> |
| TAMPA ELECTRIC COMPANY | TAMPA ELECTRIC COMPANY |
| By: | /s/ Archibald Collins |
|  | Archibald Collins |
|  | President and Chief Executive Officer |
| By: | /s/ Jeffrey S. Chronister |
|  | Jeffrey S. Chronister |
|  | Vice President-Finance and Controller |

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## Exhibit 10.2

**Exhibit 10.2** 

**LOAN AGREEMENT** 

This LOAN AGREEMENT (this "***Agreement***") is dated as of January 1, 2023 (the "***Effective Date***"), between Peoples Gas System, Inc., a Florida corporation (the "***Borrower***"), and Tampa Electric Company, a Florida corporation (the "***Lender***").

WHEREAS, effective as of the Effective Date, the Lender has transferred to the Borrower the assets and liabilities of its Peoples Gas Division pursuant to a Contribution Agreement dated as of the Effective Date (the "***Contribution Agreement***") between the Borrower and the Lender pursuant to which the Lender transferred the assets and liabilities of its Peoples Gas Division to the Borrower, and the Borrower will continue the operations of the former Peoples Gas Division as a separate company; immediately thereafter the Lender will transfer the shares of the Borrower to TECO Energy, Inc., a Florida corporation (the "***Parent***"), and the Parent then intends to contribute the shares of the Borrower to the Parent's wholly-owned subsidiary TECO Gas Operations, Inc., a Florida corporation; and

WHEREAS, the Lender has, prior to the date hereof, incurred indebtedness for borrowed money for the benefit of its Peoples Gas Division (as herein defined, the "***Existing Indebtedness***"); and

WHEREAS, in connection with the Contribution Agreement, the Borrower has entered into a term loan with Lender in the principal amount of $670,000,000 and an initial revolving loan in the principal amount of $66,000,000, collectively representing the principal amount of the Existing Indebtedness on the Effective Date; and

WHEREAS, the Borrower has requested the Lender to make additional loans to the Borrower to support its operations until the Borrower can arrange its own financing;

WHEREAS, the Lender is willing to incur additional indebtedness for borrowed money in order to make the additional loans to the Borrower, *provided,* that the Borrower agrees to reimburse the Lender for its costs to fund the loans on the terms set forth herein; and

WHEREAS, this Agreement is being entered into pursuant to the authority granted by the Florida Public Service Commission to the parties in Order No. PSC-2022-0363-FOF-PU, issued on October 25, 2022 in Docket No. 20220146-PU;

NOW, THEREFORE, in consideration of the foregoing and the agreements contained herein, the parties hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Definitions</u>. As used in this Agreement, the following terms have the meanings set forth below:

"***Additional Revolving Loans***" has the meaning set forth in Section 2(b) herein.

"***Availability Period***" means the period beginning on the Effective Date and ending on the Maturity Date.

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"***Banking Day***" means any day, other than a Saturday, Sunday or other day on which banks are or are authorized to be closed in New York, New York, and on which the Lender may borrow under the Credit Agreement and issue Commercial Paper.

"***Bankruptcy Law***" means Title 11, United States Code, and any other state or federal insolvency, reorganization, moratorium or similar law for the relief of debtors, or any successor statute.

"***Borrower Account***" means the deposit account or accounts of the Borrower from which the Borrower has authorized the Lender to make payments in accordance with Section 4(d) hereof.

"***Commercial Paper***" means the commercial paper issued from time to time by the Lender under its commercial paper program, as the same may be amended, supplemented or replaced from time to time.

"***Default Rate***" means, (a) with respect to any Obligation for which the rate is specified, a rate per annum equal to two percent (2%) in excess of the rate otherwise applicable thereto, and (b) with respect to an Obligation for which a rate is not specified or available, a rate per annum equal to the prime rate as published from time to time in The Wall Street Journal, or if such rate is not published or available, such similar rate as determined by the Lender from time to time.

"***Existing Indebtedness***" means (i) the Existing Term Indebtedness and (ii) the Borrower's allocable share, as of the Effective Date, of the principal amount of the indebtedness outstanding under the Revolving Credit Agreement or Commercial Paper, as applicable, as set forth on <u>Schedule</u> <u>1</u> hereto.

"***Existing Term Indebtedness***" means Borrower's allocable share, as of the Effective Date, of the principal amount of (i) the Long Term Notes, and (ii) the Term Loans, in each case as set forth on <u>Schedule</u> <u>1</u> hereto.

"***Event of Default***" has the meaning specified in Section 6(a) hereof.

"***Indenture***" means the Indenture dated as of July 1, 1998, as amended by the Third Supplemental Indenture dated as of June 15, 2001, and the Tenth Supplemental Indenture dated as of September 19, 2012, between the Lender and The Bank of New York Mellon, as trustee, as the same has been further supplemented and as may be supplemented and amended from time to time.

"***Initial Revolving Loan***" means the loan entered into hereunder with a principal amount equal to the Borrower's allocable share, as of the Effective Date, of the principal amount of the indebtedness outstanding under the Revolving Credit Agreement or Commercial Paper, as applicable, as set forth on <u>Schedule</u> <u>1</u> hereto.

"***Initial Term Loan***" means the installment term loan entered into hereunder with a principal amount equal to the principal amount of the Existing Term Indebtedness

"***Loans***" mean, collectively, the initial Revolving Loan and the Initial Term Loan entered into by the Borrower hereunder as of the Effective Date and the Additional Revolving Loans made to the Borrower by the Lender hereunder.

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"***Long Term Notes***" means the Borrower's share of the notes issued by the Lender for the benefit of the Lender's Peoples Gas Division pursuant to the Indenture and the Supplemental Indentures identified on <u>Schedule</u> <u>1</u> hereto.

"***Maturity Date***" means December 29, 2023.

"***Obligations***" means, collectively, the Loans and all other obligations of the Borrower to the Lender arising under this Agreement, in each case whether fixed, contingent, now existing or hereafter arising.

"***Other Comprehensive Income***" means the Borrower's portion of the unamortized gains or losses on the termination of hedges entered into upon the issuance of Long Term Notes.

"***Revolving Commitment***" means, initially, the commitment of the Lender up to the amount of $300,000,000 to make Revolving Loans to the Borrower, as such amount may be adjusted from time to time by agreement of the parties.

"***Revolving Credit Agreement***" means the Seventh Amended and Restated Credit Agreement dated as of December 17, 2021, among the Lender, as borrower, the lenders party thereto, each LC Issuing Bank party hereto and Wells Fargo Bank, National Association, as Administrative Agent, as the same may be amended, restated, supplemented, replaced or otherwise modified from time to time.

"***Revolving Loans***" means the Initial Revolving Loan incurred by the Borrower on the Effective Date pursuant to Section 2(a) and any Additional Revolving Loans made to the Borrower by the Lender during the Availability Period pursuant to Section 2(b) hereunder.

"***Short Term Debt Facility Fees***" means the unamortized portion of the Borrower's share of the fees and costs paid by the Lender for the establishment of the Revolving Credit Agreement.

"***Supplemental Indenture***" refers to each of the Supplemental Indentures between the Lender and The Bank of New York Mellon, as trustee, identified in <u>Schedule 1</u> hereto relating to the Long Term Notes.

"***Term Loans***" means the Borrower's share of the term loans of the Lender outstanding under the Term Loan Agreement as of the Effective Date.

"***Term Loan Agreement***" means the Amended and Restated Credit Agreement dated as of December 14, 2022, among the Lender as borrower, the lenders party thereto and Wells Fargo Bank, National Association as Administrative Agent, as the same may be amended, restated, supplemented, replaced or otherwise modified from time to time.

"***Unamortized Debt Discount***" means the unamortized portion of the Borrower's share of initial issuance discount on the Long Term Notes.

"***Unamortized Debt Issuance Costs***" means the unamortized portion of the Borrower's share of (i) the costs of issuance of the Long Term Notes and (ii) the fees and costs paid by the Lender for the establishment of the Term Loan Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Revolving Loans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Initial Revolving Loan</u>*. On or prior to the Maturity Date, the Borrower agrees to pay the Lender the principal amount of the Initial Revolving Loan in an amount equal to $66,000,000, which is equal to Borrower's share of the loans borrowed by the Lender under the Revolving Credit Agreement or debt incurred through the issuance of Commercial Paper as set forth on <u>Schedule 1</u> hereto. The Borrower agrees to reimburse the Lender for the Borrower's proportionate amount of all interest, prepayment premiums and costs incurred by the Lender to fund the Initial Revolving Loan, when and as such amounts are payable by the Lender in accordance with the Revolving Credit Agreement or Commercial Paper, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Additional Revolving Loans</u>*. In addition to the Initial Revolving Loan, and subject to the terms and conditions set forth herein, the Lender agrees to make additional Revolving Loans (the "***Additional Revolving Loans***") to the Borrower upon request from the Borrower, from time to time, on any Banking Day during the Availability Period, in an aggregate amount for all Revolving Loans outstanding not to exceed at any time the amount of the Lender's Revolving Commitment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Changes in Revolving Commitment</u>*. The Borrower may, from time to time during the Availability Period, upon written notice to the Lender, permanently reduce a portion of, or cancel in its entirety, the unused portion of the Revolving Commitment. The Borrower may, from time to time during the Availability Period by written request to the Lender, request an increase in the Revolving Commitment, which the Lender may grant or decline in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Interest and Fees; Cost of Funding</u>*. The interest rate on each Revolving Loan will be equal to the cost of borrowing that the Lender incurs to fund the amount of the Revolving Loan, as calculated by the Lender, and shall include interest at the Default Rate on any amount not paid when due. The cost of funding the Revolving Loans will be calculated by Lender in accordance with the obligations of the Lender under the Revolving Credit Agreement or the Commercial Paper, as applicable, issued to fund the Revolving Loans, and shall include a proportionate cost of commitment and other fees incurred by the Lender under the Revolving Credit Agreement and Commercial Paper program, the payment terms of which are hereby incorporated herein, payable when and as such obligations are payable by the Lender in accordance with the Revolving Credit Agreement or Commercial Paper, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Initial Term Loan</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Initial Term Loan</u>*. On or prior to the Maturity Date, the Borrower agrees to pay the Lender the principal amount of the Initial Term Loan in an amount equal to $670,000,000, with interest thereon as set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Interest and Fees</u>*. The outstanding principal balance of the Initial Term Loan shall bear interest in an amount equal to the Borrower's proportionate amount of all interest incurred by Lender with respect to the Existing Term Indebtedness, treating any prepayments of the Initial Term Loan as a prepayment of the Existing Term Indebtedness, payable when and as interest on such obligations are payable by the Lender in accordance with the Indenture and the related Supplemental Indentures, in the case of the Long Term Notes, and in accordance with the Term

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Loan Agreement, in the case of the Term Loans. Interest on the Initial Term Loan shall include interest at the Default Rate on any amount not paid when due. In addition, Borrower agrees to reimburse the Lender for the Borrower's proportionate amount of all prepayment premiums and costs (excluding Unamortized Debt Issuance Costs) incurred by the Lender with respect to the Borrower's share of the Long Term Notes and Term Loans, when and as such obligations are payable by the Lender in accordance with the Indenture and the related Supplemental Indentures with respect to the Long Term Notes, and in accordance with the Term Loan Agreement with respect to the Term Loans. The payment terms of Existing Term Indebtedness are incorporated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Payment of Obligations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Revolving Loans</u>*. The Borrower may prepay any Revolving Loans at any time without penalty, *provided, however,* if the Lender incurs any break-funding or other costs for prepayment upon prepayment of any borrowings funding such Revolving Loans, the Borrower shall reimburse the Lender for its share of such costs. Revolving Loans prepaid during the Availability Period may be reborrowed in accordance with the provisions of Section 2(b) hereof. The Borrower shall repay all Revolving Loans to the Lender in full on the Maturity Date, including all principal, interest, costs and fees (excluding the Borrower's allocation of unamortized Short Term Debt Facility Fees, which shall be paid by the Lender to the Borrower) payable on the Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Initial Term Loan</u>*. The Borrower may prepay all or any portion of the Initial Term Loan at any time without penalty, *provided, however,* if the Lender incurs any make-whole, break funding or other costs as a result of the prepayment of all or any portion of the Initial Term Loan as a result of the prepayment of any Long Term Notes or Term Loans, the Borrower shall reimburse the Lender for its share of such costs. Any portion of the Initial Term Loan that is prepaid before the Maturity Date may not be reborrowed. The Borrower shall repay to the Lender all Obligations of the Borrower to the Lender relating to all of the Initial Term Loan in full on the Maturity Date. Upon each prepayment before the Maturity Date and upon repayment in full on the Maturity Date of the Initial Term Loan, the Borrower shall pay principal, net of the Borrower's share of Unamortized Debt Discount on the Long Term Notes existing at the time of payment, interest to the date of payment, costs (excluding Borrower's allocation of Unamortized Debt Issuance Costs, which shall be paid by the Lender to the Borrower), the Other Comprehensive Income allocable to the payment, and fees payable on the date of payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Representations and Warranties.</u> The Borrower hereby represents and warrants to the Lender that (a) its execution, delivery and performance of this Agreement (i) have been duly authorized by all necessary corporate action on the part of the Borrower, (ii) will not violate any applicable law or regulation or the organizational documents of the Borrower, (iii) will not violate or result in a default under any indenture, agreement or other instrument binding on the Borrower, and (iv) do not require any consent, waiver, approval, authorization or order of, or filing, registration or qualification with, any court or governmental authority or any person which has not been made or obtained; and (b) it has duly executed and delivered this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Events of Default and Remedies.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Events of Default</u>*. The occurrence of any of the following events shall constitute an event of default ("***Event of Default***") hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. *Payments*. Borrower shall fail to pay, in accordance with the terms of this Agreement, any principal, interest, fee, cost, charge or any other sum due under this Agreement on the date such sum is due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. *Bankruptcy; Insolvency*. Borrower shall institute a voluntary case seeking liquidation or reorganization under any Bankruptcy Law, or shall consent to the institution of an involuntary case thereunder against it; or shall apply for, or by its consent or acquiescence there shall be an appointment of, a receiver, liquidator, sequestrator, trustee or other officer with similar powers for itself or any substantial part of its assets; or shall make a general assignment for the benefit of its creditors; or if an involuntary case shall be commenced seeking liquidation or reorganization of the Borrower under a Bankruptcy Law and (A) the petition commencing the involuntary case is not timely controverted, (B) the petition commencing the involuntary case is not dismissed within 30 days of its filing, (C) an interim trustee is appointed to take possession of all or a substantial portion of the property, and/or to operate all or any material part of the business of the Borrower and such appointment is not vacated within 30 days, or (D) an order for relief shall have been issued or entered therein; or a decree or order of a court having jurisdiction in the premises for the appointment of a receiver, liquidator, sequestrator, trustee or other officer having similar powers, over the Borrower or all or a substantial part of its property shall have been entered; or any other similar relief shall be granted against the Borrower under any applicable federal or state law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Remedies</u>*. Upon the occurrence and during the continuation of an Event of Default, the Lender may, without further notice of default, presentment or demand for payment, protest or notice of nonpayment or dishonor, or other notices or demands of any kind, all such notices and demands other than notices required by this Agreement being waived (to the extent permitted by applicable law), exercise any or all of the following rights and remedies, in any combination or order that the Lender may elect, in addition to such other rights or remedies as the Lender may have hereunder, or at law or in equity, as follows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The Lender may refuse and shall not be obligated to make any Additional Revolving Loans, and the Revolving Commitment may be terminated; *provided* that in the event of an Event of Default occurring under Section 6(a)(ii), the foregoing shall take effect immediately and without further act of the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. The Lender may declare and make all sums of accrued and outstanding principal and accrued but unpaid interest remaining under this Agreement together with all unpaid fees, costs and charges due hereunder, immediately due and payable and require Borrower immediately, without presentment, demand, protest or other notice of any kind, all of which Borrower hereby expressly waives, to pay the Lender an amount in immediately available funds equal to the aggregate amount of any outstanding Loans and other Obligations; *provided* that in the event of an Event of Default occurring under Section 6(a)(ii), all such amounts shall become immediately due and payable without further act of the Lender.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Notices</u>*. Any communications between the parties hereto or notices provided herein to be given shall be given to the following addresses:

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If to the Borrower: | Peoples Gas System, Inc.<br> 702 North Franklin Street<br> Tampa, FL 33602<br> Attention: Corporate Secretary<br> Telephone No.: (813) 228-1429<br> Telecopy No.: (813) 228-1328 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If to the Lender: | Tampa Electric Company<br> 702 North Franklin Street<br> Tampa, FL 33602<br> Attention: Corporate Secretary<br> Telephone No.: (813) 228-1429<br> Telecopy No.: (813) 228-1328 |

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All notices or other communications required or permitted to be given hereunder shall be in writing and shall be considered as properly given (a) if delivered in person, (b) if sent by overnight delivery service, (c) if mailed by first class United States Mail, postage prepaid, registered or certified with return receipt requested or (d) if sent by facsimile or e-mail. Either party shall have the right to change its address for notice hereunder to any other location by giving notice to the other party in the manner set forth above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Costs, Expenses and Attorneys' Fees</u>.* Borrower will pay to the Lender all of its reasonable costs and expenses in connection with the enforcement of this Agreement in connection with an Event of Default including in the case of a restructuring or other workout or negotiation of the Loans hereunder in connection with the bankruptcy or insolvency of Borrower or any amendments to Agreement requested by the Borrower. Borrower shall not be responsible for any counsel fees of the Lender other than as set forth above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Governing Law</u><u>; Successors and Assigns</u>*. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED UNDER, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO CONFLICTS OF LAWS (OTHER THAN SECTION 5-1401 AND SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW). This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Severability</u>*. In case any one or more of the provisions contained in this Agreement should be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Interpretation</u>*. Paragraph headings have been inserted in this Agreement as a matter of convenience for reference only; such paragraph headings are not a part of this Agreement and shall not be used in the interpretation of any provision of this Agreement. In this Agreement, unless a contrary intention is specifically set forth, (i) the words "<u>herein</u>", "<u>hereof</u>" and "<u>hereunder</u>" and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section or other subdivision and (ii) reference to any Article or Section means such Article or Section hereof. No provision of this Agreement shall be interpreted or construed against any Party solely because such Party or its legal representative drafted such provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *<u>Execution in Counterparts</u>*. This Agreement may be executed in any number of counterparts, each of which, when executed and delivered, shall be an original, but all counterparts shall together constitute one instrument. Delivery of an executed counterpart of a signature page of this Agreement by facsimile transmission or electronic transmission (in .pdf format) will be effective as delivery of a manually executed counterpart hereof.

[Signature Page Follows]

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

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| | |
|:---|:---|
| <u>**BORROWER**</u> | <u>**BORROWER**</u> |
| PEOPLES GAS SYSTEM, INC. | PEOPLES GAS SYSTEM, INC. |
| By: | /s/ Helen Wesley |
|  | Helen Wesley |
|  | President |
| By: | /s/ Rachel Parsons |
|  | Rachel Parsons |
|  | Vice President of Finance and Planning |
| **<u>LENDER</u>:** | **<u>LENDER</u>:** |
| TAMPA ELECTRIC COMPANY | TAMPA ELECTRIC COMPANY |
| By: | /s/ Archibald Collins |
|  | Archibald Collins |
|  | President and Chief Executive Officer |
| By: | /s/ Jeffrey S. Chronister |
|  | Jeffrey S. Chronister |
|  | Vice President-Finance and Controller |

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*[Signature Page to Loan Agreement]*