ATLANTA CLEVELAND DAYTON WASHINGTON, D.C. CINCINNATI

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1 HOMPSON LINE ATLANTA CLEVELAND DAYTON WASHINGTON, D.C. CINCINNATI COLUMBUS NEW YORK Via Electronic Filing Ms. Kimberly D. Bose Secretary Federal Energy Regulatory Commission 888 First Street, N.E. Washington, DC Re: Tampa Electric Company Docket No. ER Annual Update Annual Wholesale Requirements Service Revenue Requirements (Informational Filing) Dear Ms. Bose: Tampa Electric Company ("Tampa Electric") hereby submits for filing its 2018 Annual Update to recalculate its annual revenue requirements for service under its Wholesale Requirements Tariff ("WR Tariff'). The 2018 Annual Update is submitted pursuant to Sections 1(d)(xvii), 2(a), and 2(b) of the formula rate implementation protocols in Appendix B to the WR Tariff ("Protocols"). This filing is for informational purposes only, and does not require action by the Federal Energy Regulatory Commission ("Commission"). I. THE 2018 ANNUAL UPDATE The 2018 Annual Update is based on the formula rate schedules in Appendix A to the WR Tariff ("Formula Rate"). The attachments to this letter show the actual annual revenue requirement ("Actual ARR") and calculation of the WR Tariff rates based on 2017 actual data, and the projected annual revenue requirement ("Projected ARR") and calculation of the WR Tariff rates based on 2017 actual data and 2018 projected capital additions. The WR Tariff rates for the Rate Year commencing on August 1, 2018, are as follows: Schedule A-1 Determination of Demand-Related Costs and Generation Capacity Charge at column 5, line 13 - Generation Capacity Charge (adjusted by the Transmission Loss Factor and True-Up): $15.09 per kw/month. Schedule A-2 Determination of Energy & Non-Fuel Energy Charges at column 5, line 20 - Non-Fuel Variable Cost Energy Charge (adjusted by, the Transmission Loss Factor and True-Up): $ per kwh. THOMPSON HINE LLP ATTORNEYS AT LAW 1919 M Street, N.W. Suite 700 Washington, D.C Phone Fax

2 Page 2 Also attached is a workable Excel file containing the 2018 Annual Update - Projected ARR Model. A. Material Accounting Changes This 2018 Annual Update reflects the following Material Accounting Changes, as defined in Section 1(d)(xii) of the Protocols: 1. On June 29, 2017, Tampa Electric filed with the Commission revised tariff sheets reflecting inclusion in the WR Tariff Formula Rate of depreciation and amortization rates for solar photovoltaic ("PV") arrays and associated equipment, and removal of depreciation and amortization rates for certain retired generating stations. The filing was accepted, and the tariff sheets made effective on January 1, 2016, by letter order dated August 22, 2017, in Docket No. ER The changes in accounts and depreciation rates to include the solar PV arrays and to exclude the retired generating stations are included on Schedule A-7.1 of the Formula Rate model. 2. On November 16, 2017, Tampa Electric filed with the Commission revised tariff sheets reflecting inclusion in the WR Tariff Formula Rate of depreciation and amortization rates for the Polk 2 combined cycle generating units and associated equipment. The filing was accepted, and the tariff sheets made effective on February 1, 2017, by letter order dated January 10, 2018, in Docket No. ER The changes in accounts and depreciation rates to include the Polk 2 units and associated equipment are included on Schedule A-7.1 Production Applied Depreciation Rates of the Formula Rate model. 3. On December 20, 2017, Tampa Electric filed with the Commission revised tariff sheets reflecting inclusion in the WR Tariff Formula Rate of depreciation and amortization rates for miscellaneous equipment at seven existing generating units. Tampa Electric amended the filing on January 12, The filing was accepted, and the tariff sheets made effective on December 12, 2017, by letter order dated February 21, 2018, in Docket No. ER The changes in accounts and depreciation rates to include the miscellaneous equipment are included on Schedule A- 7.1 Production Applied Depreciation Rates of the Formula Rate model.

3 Page 3 4. Schedule A-4 Production-Related Electric Plant in Service includes $55 million of land purchased in 2017 that is associated with solar array generation facilities. The expected commercial operation date for the first solar array generation facility is September, Tampa Electric included a footnote in the 2017 FERC Form 1, Page 204, Line 37, Column (c) Additions related to the solar array land purchases. B. Other Features of the 2018 Annual Update This 2018 Annual Update also includes the following steps and features: Tampa Electric has excluded the $53,837 of General Advertising Expenses that was included in the 2017 FERC Form No. 1, page 323, line 191, Account This is shown on Schedule A-6, line 6, column 5 of the Formula Rate model. 2. Section 1.167(1)-1(h)(6)(ii) of the Internal Revenue Service Income Taxes Regulations (26 CFR 1.167(1)-1(h)(6)(ii) (2017)) contains a formula to be used to calculate the amount of reserve for accumulated deferred income taxes ("ADIT") subject to exclusion from the rate base in the event that a taxpayer chooses to compute its ratemaking tax expense and rate base exclusion amount using projected data. In view of this regulation and due to the 2018 projected capital additions in Schedule A-4.2 Capital Additions Placed in Service, Tampa Electric has included an adjustment for additional ADIT in the amount of $4,642,158 on Schedule A-4.1 Accumulated Deferred Income Taxes (ADIT) Worksheet, Schedule ADIT 282, Additional ADIT for Projected Capital Additions Schedule A-4.2 of the Projected ARR formula model. The ADIT shown in Schedule A- 4.1 at column 4, line 3 and column 7, line 9, and in Schedule A-4 Production-Related Electric Plant in Service at column 6, line 34, and columns 7 through 8, line 35 of the Projected ARR formula model are also affected by this adjustment. 3. Schedule A-4 Production-Related Electric Plant in Service of the Formula Rate model includes storm-related capitalized restoration costs of $9.1 million, and the production portion of that total is $5 million, which is primarily related to Hurricane Irma in September, The total noncapitalized expenses are $103 million, and the production portion of the total is $1.5 million, which was deducted from the storm reserve accruals in FERC Account 924 Property Insurance.

4 Page 4 C. Other Noteworthy Developments 1. Commencement of Service By Polk Steam Turbine Unit 2 The combined-cycle Polk Steam Turbine Unit 2 at the site of Tampa Electric's Polk Power Station commenced commercial operation on January 16, This new gas-fired generating unit is included in the 2017 FERC Form 1 at page 402.1, column (b) Polk 2 CC, line nos. 1 44, in addition to Schedule A-4 Production-Related Electric Plant in Service of the 2018 Actual ARR and Projected ARR models. 3. Commencement of Service By Big Bend Solar Array The Big Bend Solar facility commenced commercial operation on February 10, This solar unit is included in the 2017 FERC Form 1 at pages , line 3, in addition to Schedule A-4 Production-Related Electric Plant in Service of the 2018 Actual ARR and Projected ARR models. II. EFFECT OF TAX CUTS AND JOBS ACT OF 2017 The Tax Cuts and Jobs Act of 2017 reduced the corporate income tax rate from 35% to 21% effective January 1, The 2018 Actual ARR formula model contains a federal corporate income tax rate of 35%. The 2018 Projected ARR formula model contains a federal corporate income tax rate of 21%. In accordance with Section 4 of the Protocols, consequent changes to the Formula Rate data inputs will be made in the 2019 Annual Update for the Rate Year commencing on August 1, III. POSTING, SERVICE, AND OPEN MEETING Pursuant to Section 2(b)(iv) of the Protocols, on, the 2018 Annual Update will be posted on Tampa Electric's website under "Annual Update Wholesale Requirements Rates" at: wholesalerates/

5 Page 5 On the same date, a copy of this informational filing will be served electronically on the Florida Public Service Commission.' Tampa Electric will hold the Open Meeting for the 2018 Annual Update required under Section 1(d)(xiii) of the Protocols no earlier than 15 days and no later than 30 days after the date of this informational filing. Tampa Electric will post the location, date, time, and call-in information for the Open Meeting on its website within two business days of this filing, in accordance with the Protocols. Please contact the undersigned if you have any questions concerning this informational filing. Respectfully submitted, /s/ Peter C. Lesch Peter C. Lesch Thompson Hine LLP 1919 M Street, N.W. Suite 700 Washington, DC Telephone: (202) Fax: (202) peter.lesch@thompsonhine.com Attorney for Tampa Electric Company Attachments Currently, Tampa Electric does not have any customers under the WR Tariff.

6 TAMPA ELECTRIC COMPANY GENERATION CAPACITY CHARGE ("GCC") 2018 Annual Update - Annual Wholesale Requirements Service Revenue Requirements Rates Effective August 1, July 31, 2019 Line Description Reference Update Actual Annual Revenue Requirement ("Actual ARR") Annual Update (based on 2017 actuals) 1 Annual Production Demand Revenue Requirement A-1, Line 8 $ 643,131,932 2 Total 12 Months System Peaks (MW) A-1, Line 9 40,158 MW 3 Generation Capacity Charge (per kw/month) A-1, Line 10 $ /kw 4 Transmission Loss Factor ("TLF") A-1, Footnote a/ Generation Capacity Charge ("GCC") (per kw/month) (adjusted by TLF) A-1, Line 11 $ /kw Projected Annual Revenue Requirement ("Projected ARR") Annual Update (based on 2017 actuals and 2018 projected capital additions) 1 Annual Production Demand Revenue Requirement A-1, Line 8 $ 626,439,823 2 Total 12 Months System Peaks (MW) A-1, Line 9 40,158 MW 3 Generation Capacity Charge (per kw/month) A-1, Line 10 $ /kw 4 Transmission Loss Factor ("TLF") A-1, Footnote a/ Generation Capacity Charge ("GCC") (per kw/month) (adjusted by TLF) A-1, Line 11 $ /kw 6 True-Up Adjustment Rate (adjusted by TLF) A-1, Line 12 $ (0.86) /kw 7 Total Generation Capacity Charge, adjusted by TLF and True-Up A-1, Line 13 $ /kw

7 TAMPA ELECTRIC COMPANY NON-FUEL VARIABLE COST ENERGY CHARGE ("NFVC") 2018 Annual Update - Annual Wholesale Requirements Service Revenue Requirements Rates Effective August 1, July 31, 2019 Line Description Reference Update Actual Annual Revenue Requirement ("Actual ARR") Annual Update (based on 2017 actuals) 1 Total Non-Fuel Variable Cost less Production Non-Fuel Revenue Credits A-2, Line 15 $ 79,226,024 2 Total Energy less Non-Requirements Sales for Resale (MWh) A-2, Line 16 20,330,253 MWh 3 Non-Fuel Variable Cost Energy Charge (per kwh) A-2, Line 17 $ /kwh 4 Transmission Loss Factor ("TLF") A-2, Footnote b/ line Non-Fuel Variable Cost Energy Charge ("NFVC") (Adjusted by TLF) (per kwh) A-2, Line 18 $ /kwh Projected Annual Revenue Requirement ("Projected ARR") Annual Update (based on 2017 actuals and 2018 projected capital additions) 1 Total Non-Fuel Variable Cost less Production Non-Fuel Revenue Credits A-2, Line 15 $ 78,290,155 2 Total Energy less Non-Requirements Sales for Resale (MWh) A-2, Line 16 20,330,253 MWh 3 Non-Fuel Variable Cost Energy Charge (per kwh) A-2, Line 17 $ /kwh 4 Transmission Loss Factor ("TLF") A-2, Footnote b/ line Non-Fuel Variable Cost Energy Charge ("NFVC") (Adjusted by TLF) (per kwh) A-2, Line 18 $ /kwh 6 True-Up Adjustment Rate (adjusted by TLF) A-2, Line 19 $ ( ) /kwh 7 Non-Fuel Variable Cost Energy Charge, Adjusted by TLF and True-Up A-2, Line 20 $ /kwh

August 1, Amended Attachment S under Southern Companies Open Access Transmission Tariff, effective January 1, 2014

August 1, Amended Attachment S under Southern Companies Open Access Transmission Tariff, effective January 1, 2014 August 1, 2014 Ms. Kimberly D. Bose, Secretary Mr. Nathaniel J. Davis, Jr., Deputy Secretary Federal Energy Regulatory Commission 888 First Street, N.E. Washington, DC 20426 Re: Amended Attachment S under