Tampa Electric awarded IRS tax credits for proposed advanced clean coal project
TAMPA, November 30, 2006
United States Department of Energy Secretary Samuel W. Bodman announced today at the National Coal Council meeting in Washington, D.C., that Tampa Electric has been awarded $133.5 million in Internal Revenue Service clean coal tax credits for the proposed Polk Unit 6, a 630-megawatt Integrated Gasification Combined Cycle facility that would be located on the site of the current Polk Power Station in Polk County, Florida. The purpose of the tax credit program is the deployment of clean coal-based generation technologies.
If the plant moves forward and receives the needed approvals from state regulators, environmental agencies and others, it would be in service in 2013.
“I congratulate Tampa Electric for being awarded a $133.5 million tax credit as part of the Bush Administration's commitment to support the deployment of the most advanced technologies currently available to utilize coal in the cleanest, most efficient manner,” Bodman said.
In March 2006, the IRS in conjunction with the Department of Energy, under the Energy Policy Act statutes, announced two programs under the Internal Revenue Code to award certain clean coal technology projects investment tax credits to a maximum amount of $133.5 million.
“This state-of-the-art IGCC plant would utilize coal, an abundant lower-cost resource to produce reliable electric power for our customers in the most environmentally sensitive manner possible,” said Tampa Electric President Chuck Black. “These tax credits would also represent significant customer savings.”
Tampa Electric was the first utility in the nation to commercialize IGCC technology in partnership with the Department of Energy’s clean coal technology program by developing the Polk Power Station in 1996. Tampa Electric is now recognized as the world leader in clean coal technology. The Polk Power Station has been named as the cleanest coal-fired power plant in North America by Canada’s Energy Probe Research Foundation.
The new Polk Unit 6 would allow Tampa Electric to continue to build capacity to meet the future needs of its customers for safe, reliable and affordable electricity with an environmental stewardship that is an integral part of the company’s business plans for the future of the communities it serves.
Tampa Electric Company is the principal subsidiary of TECO Energy, Inc. (NYSE: TE), an integrated energy-related holding company with core businesses in the utility sector, complemented by a family of unregulated businesses. Tampa Electric Company is a regulated utility with both electric and gas divisions (Tampa Electric and Peoples Gas System). Other subsidiaries are engaged in waterborne transportation, coal and synthetic fuel production and independent power.
TECO Energy, Inc. (NYSE: TE) is an integrated energy-related holding company with regulated utility businesses, complemented by a family of unregulated businesses. Its principal subsidiary, Tampa Electric Company, is a regulated utility with both electric and gas divisions (Tampa Electric and Peoples Gas System). Other subsidiaries are engaged in waterborne transportation, coal and synthetic fuel production and electric generation and distribution in Guatemala.
Note: This press release contains forward-looking statements, which are subject to the inherent uncertainties in predicting future results and conditions. Factors that could impact actual results include: unforeseen regulatory actions by federal, state or local authorities; the prices of commodities such as coal or natural gas that would impact the economics of an IGCC power plant; the availability of and prices for materials and labor necessary to construct an IGCC power plant; unexpected capital needs or unanticipated reductions in cash flow that affect the ability to finance the construction of an IGCC power plant; and general economic conditions in Tampa Electric’s service area affecting energy sales and demand growth and the need for additional generating plants. Additional information is contained under “Risk Factors” in TECO Energy, Inc.’s Annual Report on Form 10-K for the period ended Dec. 31, 2005.