LIFE RUNS ON ENERGY Owner s Update

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1 LIFE RUNS ON ENERGY Owner s Update Tampa Electric May, 2014

2 LIFE RUNS ON ENERGY About Tampa Electric Supplied Tampa area with electricity since 1899 Investor owned utility 2,000-square-mile service area More than 645,000 residential, commercial, and industrial customers Five electric generating stations with a total capacity of 4,800 MW

3 LIFE RUNS ON ENERGY New Mexico Gas Purchase to close in 3Q ,000 Customers

4 LIFE RUNS ON ENERGY Major Maintenance Activities BB4 Spring 2014 $80M BB1 Fall 2015 $60M BB2 Fall 2016 $50M BB3 Spring 2017 $60M BB4 Spring 2018 $40M

5 LIFE RUNS ON ENERGY Major Maintenance Activities BPS 1 Spring 2016 $30M BPS 1 Spring 2017 $30M

6 RTI International Energy Technology Division Original 3-D Model of the Demonstration System RTI s Warm Syngas Cleanup Demonstration Project Status Project Goals Demonstrate RTI technology to reduce capital costs, improve efficiency, and lower carbon footprint for gasification Mitigate design and scale-up risks Verify capital and operating costs WDP Water Gas Shift Reactor Syngas Cooling amdea CO 2 Recovery Capture >90% of carbon dioxide Air Air Separation Oxygen Project Scope Regenerator Gas Currently vented, but could be sequestered or recycled or used Sulfuric Acid Plant Sulfuric Acid Continued RD&D for application to chemicals and fuels production Coal/Petcoke GE Gasifier (400 psig) Syngas Cooling Scrubbers COS Hydrolysis Syngas Cooling MDEA Acid Gas Char Process Condensate Clean Fuel Gas Slag Syngas Diluent (N 2) Reheat/ Humidify Extraction Air 8% H 2O ~ Raw Syngas ~ 128 Mwe (122 Mwe) 20% slipstream test (~50 MW e ) enables direct commercial scale-up from this demonstration scale Project Team Role RTI Project management; technology developer Tampa Electric Host site and operations oversight Shaw Group, AMEC Engineering (Shaw - FEED, AMEC - EPC) CH2M Hill Owner s engineer BASF Technology (amdea ) for syngas CO 2 capture Clariant Produce sulfur sorbent & other catalysts DOE/NETL Funding agency; project consultation Eastman Chemical Technical and operations support

7 RTI International Energy Technology Division Warm Gas Cleanup

8 RTI International Energy Technology Division Vendor Fabrication of a Portion of WDP Unit

9 RTI International Energy Technology Division Installing WDP Equipment

10 RTI International Energy Technology Division Installing WDP Equipment

11 RTI International Energy Technology Division Installing WDP Equipment

12 RTI International Energy Technology Division Installing WDP Equipment

13 RTI International Energy Technology Division Installing WDP Equipment

14 RTI International Energy Technology Division Site Aerial View Near Completion

15 LIFE RUNS ON ENERGY Regional Reclaimed Water Partnership Partners: SWFWMD, Lakeland, Polk County, Mulberry Project benefits: Reduces ground water usage. Improves water quality at Polk Power. Addresses future compliance issues for Lakeland, Polk and Mulberry at greatly reduced cost Cleaner Alafia river

16 LIFE RUNS ON ENERGY Regional Reclaimed Water Partnership The pipeline from Lakeland to Polk Power Station will handle flows from Lakeland, Polk County and Mulberry. The water treatment system is modular/ adjustable for increased flow Initial capacity MGD. Expandable to 17 MGD

17 LIFE RUNS ON ENERGY Regional Reclaimed Water Partnership Project is nearing completion Startup to begin in June

18 LIFE RUNS ON ENERGY Phase 1 Underway Phase 2 award anticipated in May In service January 2017 Polk Combined Cycle Conversion

19 Florida Conservation & Technology Park Interpretive Kayaking Trails Rope Courses Recreation & Learning Manatee Viewing Animal Rescue Conservation Fish Hatcheries Bird Watching Interpretive Hiking Trails Camps & Educational Programs Visitor Tours Research & Technology Coral Propagation & Reef Restoration Plant Propagation Fishing New Energy Technologies Science Laboratories

20 Florida Conservation & Technology Center Manatee Viewing Center Wildlife Viewing Tower Interpretive Walking Trails Viewing Tower Boardwalk Interpretive Canoe & Kayak Trails Welcome & Orientation Center Energy Technology Resource Center Interpretive Trail Visitor Parking Tram Drive Canoe & Kayak Access Fishing & Canal Boat Access Center for Conservation

21 Florida Conservation & Technology Center

22 Florida Conservation & Technology Center

23 Florida Conservation & Technology Center

24 TECO ENERGY TECHNOLOGY CENTER Provide springboard for electric and gas business opportunities Provide TEC with operating and maintenance data Serve as a USF laboratory Alternative fueled vehicles demo Showcase renewable energy technologies

25 Stirling Solar Dish 60 kw AC output 24% Capacity Factor Cost $325,000 Delivery late 2015 Manufactured in Sweden

26 Concentrating Solar PV 31.8% efficiency 500 Suns

27 Soitec System 7 kw DC Output 24% Capacity Factor Cost $12,000 Delivery Late 2014 Manufactured in San Diego, CA

28 Solar Trough Parabolic trough

29 Sunlight focused on heat transfer fluid Supply Industrial hot water for entire sire USF 30kW AC generator USF thermal storage demo Delivery early 2015 Cost $30,000 without power block and thermal storage Fluid sent to heat exchanger Hot water or Power

30 Axial Wind Turbine 4.5 kw AC Output 22% Capacity Factor Cost $18,000 Delivery mid 2014 Manufactured Poway, CA

31 Ducted Wind Turbine 200 kw AC Output 24-80% Capacity Factor Cost $465,000 Delivery early 2015 Manufactured Chaska, MN

32 PEM Fuel Cell 5 kw DC Output 100% Capacity Factor Cost $60,000 Delivery late 2014 Manufactured Hillsboro, OR Refrigerator sized Fueled with natural gas Type used in automobiles

33 Bloom Box 50 kw DC Output 100% Capacity Factor Cost $ 350,000 Delivery late 2014 Manufactured Newark, DE Fueled with natural gas

34 Micro Turbine 30kW capacity Very small portable

35 REDOX Flow Battery 10 kw-hr storage 20 micro-second response time Load stabilization Cost $ 30,000 Delivery late 2014 Manufactured Brisbane, Australia Many different electrolytes FGCU testing

36 LIFE RUNS ON ENERGY Natural Gas Igniters Replacing oil igniters with natural gas. Up to 30% co-firing capability Fuel savings of $76M per unit over life of project

37 LIFE RUNS ON ENERGY New Process Equipment/Process vendor selected Design/Build opportunity Potential Project

38 Questions? LIFE RUNS ON ENERGY