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• BIG BEND STATION 1900 MW4 Coal fired steam units

TAMPA ELECTRIC GENERATION

•BAYSIDE POWER STATION 1800 MWRepowered NGCCOne 3 on 1One 4 on 1

•POLK POWER STATION 650 MWOne IGCCTwo Peaking CT’s

•PHILLIPS POWER STATION 36 MWTwo slow speed diesels ________

TOTAL CAPACITY (approx) 4400 MW

• UNIT 1 IGCC, Base load on syngas, intermediate on oil Combined cycle, GE 7F, 7221 192MW

GE D11, steam 120MW Dual fuel, Syngas/Distillate Oil DOE Clean Coal Technology co-funding $120M In service 1996

POLK POWER STATION

•UNIT 2, 3, 4 & 5 Simple Cycle CT, PeakingSimple cycle GE 7FA+E, 7241 165 MW each2 & 3 Dual fuel, Nat gas/Distillate Oil; 4 & 5 Nat Gas onlyUnit 2 in service 2000, Unit 3 2002, Units 4&5 2007

•Total site over 4000 acres (previously mined for phosphate)750 acre cooling pond80 Tampa Electric employees

• Gasification technology originally developed by Texaco, now owned by General Electric• Oxygen blown, slurry fed, entrained flow gasifier• Operating pressure 400 psi nominal• Gasifier vessel refractory lined (largest built)• Radiant plus convective syngas coolers for heat recovery• Single train configuration (one gasifier supplying one CT)• CT is GE 7F w/ MNQC combusters, larger 1st stage nozzle• Diluent N2 plus syngas saturation for NOx control• Modest air extraction rate from CT to ASU• Feedstock is 2200 tons/day coal and petroleum coke blend• ASU by Air Products, 2100 tons/day oxygen production• Sulfuric acid plant by Monsanto, (unique to Florida)• Acid gas removal via MDEA and COS hydrolysis

POLK 1 – Technology Summary

AERIAL PHOTO

ADMINISTRATIONCONTROL

YOU ARE HERE

NOXYGEN PLANT

GASIFIER STRUCTURECOAL SILOS

SLURRY PREPARATION

SULFURIC ACID PLANT

HRSG

UNIT 1 CTSTEAM TURBINEUNIT 2 CTUNIT 3 CT

UNDER CONSTRUCTION

,

Main AirCompressor

32 MW

Dryers

Coal &Pet Coke2300 TPD

Rod Mills

Water &Recycled Char

SlurryTanks

SlurryPump

ProductCompressors

18 MW

Oxygen2100 TPD

ColdBox

LockhopperChar &

Slag

Char & Cl

Compressor Turbine

Combustor

Generator192 MW

CleanStackGas Air

Condenser

CondensatePump

1600 psigSaturated

Steam

7000 KSCFHClean Syngas

Diluent Nitrogen5250 TPD

RadiantSyngasCooler

Gasifier

SyngasCooler

Final Filter

CoolingWater

MDEA Acid Gas RemovalAcid GasH2S + CO2

CoolingWater

55 psigSteam

EconomizedBoiler

Feedwater

BFW Pump

Heat RecoverySteam Generator

(HRSG)

Generator123 MW

Steam Turbine

Raw Syngas

COSHydrolysis

(COS H2S)

Convective

CombustionTurbine

Saturator

WaterScrubbers

400psigSteam

450 gpmSlurry

Backup/StartupDistillate Fuel

To SulfuricAcid Plant

LPSteam

BFW

Overall Flowsheet

LOW EMISSIONS FROM

LOW COST FEEDSTOCKSFOR

LOW COST ELECTRICITY

IGCC DRIVER

POLK 1 PERFORMANCEENVIRONMENTAL

• Polk rated the “Cleanest Coal Fired Power Plant in North America” by the Energy Probe Research Foundation

(total emissions from 2002 TRI data)

LOW EMISSIONS

Typical Emissions (Lb/MMBTU)

Polk Polk Expected (Permit) (Steady State) New IGCC

SO2 0.14 0.12 0.02

NOx 0.055 0.04 0.02 (w/SCR)

Particulate 0.007 <0.004 0.007

Mercury NA NA 90% removal

(New IGCC values are basis 8,800 hhv btu/kwh net)

•Beneficial Reuse of Sulfur – H2SO4 at Polk•Beneficial Reuse of Slag•Low Water Use (2/3 that of PC unit)•Minimal solid waste (no gypsum from FGD)•Zero Process Water Discharge

OTHER ENVIRONMENTAL ADVANTAGES

ENVIRONMENTAL OPPORTUNITIES

Mercury - Cost-Effective Removal on IGCC using small activated carbon bed

( $0.25/MWh vs. $3.10/MWh for PC)

• Testing done at Polk

• Commercially at Eastman to 95+%

Other Volatile Metals – Will also be removed by carbon bed

ENVIRONMENTAL OPPORTUNITIES

CO2 Removal

Solvents used for sulfur removal can also remove CO2 (more cost effective due to <1% volume)

For New Solid Fuel Power Plants (EPRI estimates)

25% Higher COE with IGCC

50% + Higher COE with PC

CO2 Sequestration

Saline aquifer injection – USF feasibility study

FUEL FLEXIBILITY• Polk has operated on over 20 different fuels including: Coals

Coal BlendsCoal/Pet Coke BlendsCoal/Coke/Biomass Blends

• Slagging gasifier requires somewhat higher fusion temps (Polk targets 2350 – 2700 F T-250 temps)

• Low rank fuels can be used in slurry fed gasifiers, but hurt efficiency

• Power block can operate on syngas or distillate oil

RELATIVE FUEL PRICES AT POLK

• 40% Coal/60% Pet Coke Blend 1.0

• Pet Coke 0.7

• Coal 1.5

• Natural Gas 3.6

• Low Sulfur Oil 6.0

LOW COST FEEDSTOCKS

RENEWABLE FUELS

BIOMASS CO-UTILIZATION TESTS

• Eucalyptus Biomass Test - December, 2001

• Bahiagrass Biomass Test - April, 2004 (Bahiagrass Harvest and Storage Test started approximately one year prior)

• No impact on syngas quality or emissions

• Minor issues with material handling

REPRESENTATIVE COSTS

Fuel processing costs per mmbtu fuel input(Excludes combined cycle costs)

Fuel $1.62O&M $0.96“Controllable Expense” $2.58A&G, Depreciation, Taxes, etc $1.06Solid Fuel Processing Cost $3.64

For Natural Gas Comparison, Multiply by heat rate ratio: $3.64 X 9,500 / 7,000 = $4.93

Current Natural Gas Price: $8.00 +/-

KEY AVAILABILITY STATISTICS

Polk Unit 1 IGCC Factors

0

10

20

30

40

50

60

70

80

90

100

96 97 98 99 00 01 02 03 04 05 06

Year

Ho

urs

/ P

eri

od

Ho

urs

x 1

00

CT On Syngas Early CT Fleet Issues CT Availability Early CT Fleet Issues

TEC’s ADVANCMENTS of IGCC

• Refractory life extension to 3 years

• Successful integration of fines recycle

• NOx below 15ppm with diluent N2 and saturation

• Successful zero process water discharge system

• Air extraction/integration with GE 7F turbine

• IGCC use with sulfuric acid plant with variable %

• Leader in clean coal power production > 13M gwhrs

• IGCC ambassadors, 4000+ visitors

• HIGHER INSTALLED COST – TRUE Current estimates are 10 – 20% higher than SCPC unit with scrubber and

SCR. This is offset by lower fuel cost and reduced emissions.

• NO SINGLE SUPPLIER OR OVERALL PERFORMANCE

GUARANTEE – NO LONGER TRUE Alliances GE/Bechtel and Conoco/Phillips-Fluor are offering comprehensive

EPC contracts with performance guarantees.

• NO FINANCIAL REWARD FOR SUPERIOR

ENVIRONMENTAL PERFORMANCE – SOMEWHAT TRUE IGCC is capable of lower emissions than other coal based technologies and

will be the most cost effective at mercury and CO2 removal. Anticipated

environmental regulations will define financial value.

PERCEPTIONS AND MISPERCEPTIONSREGARDING IGCC

PERCEPTIONS AND MISPERCEPTIONSREGARDING IGCC (cont’d)

• IGCC HAS LOW AVAILABILITY – NOT TRUE Overall reliability of the power block is higher than other “coal-fired” units

(95%). The dual fuel capability of IGCC adds significant value. Gasifier

reliability (currently low 80%), will be higher for next generation, dual train

plants.

• IGCC IS EXPERIMENTAL AND REQUIRES UNIQUE SKILLS

– NOT TRUE Gasification has been used since the 1800’s and there are hundreds of gasifiers

operating worldwide. The first generation IGCC plants have now been in

service for 10 years.

Tampa Electric (a modest size electric utility) has successfully operated and

maintained the Polk Unit 1 IGCC since 1996.

POLK UNIT 6• TEC is planning for the addition of a 630 MW IGCC unit in 2013.

• Preliminary engineering and preparations for permitting and regulatory approval are in progress.

• TEC has been awarded a $133.5M tax credit under the Energy Policy Act of 2005 for Polk 6.

• Expected configuration is two gasifiers feeding two CT’s with one ST. Minimum scale up (same size gasifiers as Polk 1).

• Allowances made in design for addition of CO2

capture and sequestration equipment.