Florida Gas Transmission Company announces gas transportation agreement with Tampa Electric Company
HOUSTON, June 19, 2000
Florida Gas Transmission Company (FGT) and Tampa Electric Company today announced that they have entered into a long-term firm natural gas transportation contract as part of FGT's Phase V Expansion. The contract calls for FGT to provide 180 million cubic feet per day (MMcf/d) of additional capacity to serve Tampa Electric's planned Bayside generating facility located in Southwest Florida in Hillsborough County. This agreement, together with the other Phase V Expansion agreements, results in an increase of FGT's Phase V Expansion to 428 MMcf/d, net of turn-back capacity.
"We're pleased to expand our pipeline to add Tampa Electric Company to the FGT system," said Rockford G. Meyer, president of FGT. "This contract, along with the other Phase V contracts, will bring increased natural gas supplies to meet the growing energy needs of Florida."
"FGT's proven track record and ability to deliver this additional natural gas to Tampa Electric by spring 2002 will help us meet the timetable for our natural gas repowering project," said John Ramil, president of Tampa Electric. "This is a very important part of our aggressive plan to serve our growing customer needs and improve the air quality in the Tampa Bay area."
The repowering of Tampa Electric's Gannon Power Station from coal to natural gas fuel is the centerpiece of the company's $1 billion environmental plan announced earlier this year with the U.S. Environmental Protection Agency and the U.S. Department of Justice. The plant, to be renamed Bayside Power Station, will dramatically reduce sulfur dioxide and nitrogen oxide emissions while improving system reliability.
FGT's amended Phase V expansion will cost approximately $440 million and is expected to be in-service by the second quarter of 2002. FGT plans to file an amended project application on Aug. 1, 2000 with the Federal Energy Regulatory Commission (FERC).
As previously announced, FGT's $268 million Phase IV expansion was approved by the FERC in February. Construction of the project is currently underway and is expected to be in service by May 2001. For the Phase IV expansion, seven shippers executed 20-year firm commitments for 197 MMcf/d of incremental firm service, net of turn-back capacity.
Tampa Electric serves more than 550,000 residential, commercial and industrial customers in West Central Florida. It is the principal subsidiary of TECO Energy, Inc. (NYSE: TE), a diversified, energy related holding company headquartered in Tampa. Other TECO Energy businesses include Peoples Gas, TECO Power Services, TECO Transport, TECO Coal, TECO Coalbed Methane, and Bosek, Gibson and Associates. Additional information is available in TECO Energy's online newsroom at www.tecoenergy.com.
Florida Gas Transmission, a wholly owned subsidiary of Citrus Corp, operates an approximately 4,700-mile interstate natural gas transmission system extending from South Texas to South Florida. Citrus Corp. is owned jointly by a subsidiary of Enron Corp. and El Paso Energy Corporation. Detailed information is available on the Internet at www.fgt.enron.com.
Gina Taylor – Florida Gas
Ross Bannister –