TECO Power Services Corporation (TPS) today announced the successful testing and operation of its interconnection between the TPS-owned and operated Frontera Power Station in Southwest Texas and the Cumbres substation in Mexico, owned and operated by the Comision Federal de Electricidad (CFE).

The interconnection provides for the first fully dispatchable electrical transmission line between the United States and Mexico, and is designed to provide up to 150 megawatts of electricity from the Frontera facility to Mexico via a two-mile, 138-kv transmission line. The plant is also interconnected to the U.S. energy market, allowing for domestic sales as well.

Fully operational since May 2000, Frontera is a 477-megawatt, natural gas- fueled, combined-cycle power plant located 10 miles west of McAllen, Texas, and two miles from the U.S.-Mexico border.

Senior Vice President-Energy Marketing and Development Michael Schuyler said, "We are excited about the opportunity to sell power into Mexico. The success of this interconnection with CFE is a major milestone in TPS' efforts to supply electricity to the fast-growing Mexican energy market."

TECO Power Services Corporation is a wholly owned subsidiary of TECO Energy, Inc. (NYSE: TE) a diversified, energy-related holding company headquartered in Tampa. Other TECO Energy businesses include Tampa Electric, Peoples Gas System, TECO Transport, TECO Coal, TECO Coalbed Methane and TECO Solutions. TPS builds, owns, and operates electric generation facilities with emphasis on high growth areas of North America. Domestically, announced projects call for TPS to serve customers in 18 states, spanning the southern half of the United States. TECO Energy as a whole has ownership interests in more than 10,500 megawatts, operating, in construction, or in advanced stages of development worldwide. For more information, visit online at www.tecopowerservices.com.