1. Welcome

2. SAFETY FIRST Safety tip for the day

3. BIG BEND STATION1900 MW 4 Coal fired steam units TAMPA ELECTRIC GENERATION BAYSIDE POWER STATION 1800 MW Repowered NGCC One 3 on 1 One 4 on 1 POLK POWER STATION 650 MW One IGCC Two Peaking CTs PHILLIPS POWER STATION 36 MW Two slow speed diesels________ TOTAL CAPACITY(approx)4400 MW

4. UNIT 1 IGCC, Base load on syngas, intermediate on oil Combined cycle, GE 7F, 7221192MW 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, Peaking Simple cycle GE 7FA+E, 7241165 MW each 2 & 3 Dual fuel, Nat gas/Distillate Oil; 4 & 5 Nat Gas only Unit 2 in service 2000, Unit 3 2002, Units 4&5 2007 Total site over 4000 acres (previously mined for phosphate) 750 acre cooling pond 80 Tampa Electric employees

5. 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 1 st 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

6. AERIAL PHOTO ADMINISTRATION CONTROL YOU ARE HERE N OXYGEN PLANT GASIFIER STRUCTURE COAL SILOS SLURRY PREPARATION SULFURIC ACID PLANT HRSG UNIT 1 CT STEAM TURBINE UNIT 2 CT UNIT 3 CT UNDER CONSTRUCTION,

7. Overall Flowsheet

8. LOW EMISSIONS FROM LOW COST FEEDSTOCKS FOR LOW COST ELECTRICITY IGCC DRIVER

9. POLK 1 PERFORMANCE ENVIRONMENTAL Polk rated the Cleanest Coal Fired Power Plant in North America by the Energy Probe Research Foundation (total emissions from 2002 TRI data)

10. LOW EMISSIONS Typical Emissions (Lb/MMBTU) Polk Polk Expected (Permit) (Steady State) New IGCC SO 2 0.14 0.12 0.02 NOx0.055 0.04 0.02 ( w/SCR ) Particulate0.007 <0.004 0.007 Mercury NA NA 90% removal (New IGCC values are basis 8,800 hhv btu/kwh net)

11. Beneficial Reuse of Sulfur – H 2 SO 4 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

12. 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

13. ENVIRONMENTAL OPPORTUNITIES CO 2 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 CO 2 Sequestration Saline aquifer injection – USF feasibility study

14. FUEL FLEXIBILITY Polk has operated on over 20 different fuels including:Coals Coal Blends Coal/Pet Coke Blends Coal/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

15. RELATIVE FUEL PRICES AT POLK 40% Coal/60% Pet Coke Blend1.0 Pet Coke0.7 Coal 1.5 Natural Gas 3.6 Low Sulfur Oil6.0 LOW COST FEEDSTOCKS

16. 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

17. REPRESENTATIVE COSTS Fuel processing costs per mmbtu fuel input (Excludes combined cycle costs) Fuel$1.62 O&M$0.96 Controllable Expense$2.58 A&G, Depreciation, Taxes, etc$1.06 Solid 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 +/-

18. KEY AVAILABILITY STATISTICS

19. TECs 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

20. 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 CO 2 removal. Anticipated environmental regulations will define financial value. PERCEPTIONS AND MISPERCEPTIONS REGARDING IGCC

21. PERCEPTIONS AND MISPERCEPTIONS REGARDING IGCC (contd) 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 1800s 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.

22. 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 CTs with one ST. Minimum scale up (same size gasifiers as Polk 1). Allowances made in design for addition of CO 2 capture and sequestration equipment.