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US Department of Energy awards Tampa Electric $1.5 million

TAMPA, October 19, 2001

The United States Department of Energy (DOE) has announced plans to provide Tampa Electric more than $1.5 million in funding to test and demonstrate new technologies for improving reliability and reducing pollutants at coal-burning power plants. Overall, more that $100 million will be provided to seven facilities across the country.

In a statement released by the DOE, Secretary of Energy Spencer Abraham said, “Our National Energy Plan recognizes that America cannot generate the electricity it needs without coal. That is why the President has pledged a new effort to work with the power industry to apply our best technology to use our vast coal reserves cleanly and economically.”

Tampa Electric has been selected for two projects. At Big Bend Power Station in Apollo Beach a sophisticated computer technology will be used to determine when and how best to clean soot that can build up inside a boiler and hamper performance. The 36-month project will receive just under $1 million from the DOE and, in addition, Tampa Electric expects to provide almost $1.5 million.

In the second project, Tampa Electric will demonstrate a laser system to measure the deterioration of the refractive brick liner inside the coal gasifier at Polk Power Station in southwest Polk County. The DOE will fund $640,000 of the $1.7-million expected total cost.

This is the second time the DOE has partnered with Tampa Electric’s Polk Power Station. In 1994, the DOE provided more than $100 million to develop Polk Power Station with the mission of demonstrating significantly improved environmental performance and increased efficiency over today's coal-burning boilers.

As the first large-scale commercial integration of gasification and combined-cycle technologies, Polk Power Station remains a showcase facility for DOE and regularly hosts visitors from around the world.

Over the past year Polk Power Station has been featured in many national media outlets, including USA Today, The Los Angeles Times, and Knight-Ridder Newspapers.

Tampa Electric is the principal subsidiary of TECO Energy, Inc. (NYSE: TE), a diversified energy-related holding company headquartered in Tampa. Tampa Electric has supplied the Tampa Bay area with electricity since 1899. Its West Central service area covers approximately 2,000 square miles, serving more than 550,000 residential and commercial customers with reliable power and value-added services. In addition to Tampa Electric Company, TECO Energy's principal businesses include Peoples Gas System, TECO Power Services, TECO Transport, TECO Coal, TECO Coalbed Methane, TECO Propane Ventures and TECO Solutions.

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