Thomas L. Hernandez. Tampa Electric Company

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1 WATER CONSERVATION: SUSTAINING A VITAL AND PRECIOUS RESOURCE Thomas L. Hernandez Vice President - Energy Supply Tampa Electric Company

2 We are committed to using the least amount of groundwater possible in all of our operations, recycling large volumes of water and seeking alternate t sources to reduce overall use of groundwater. * * TECO Energy 2013 Sustainability Report 2

3 2,000-square-mile q service area More than 687,000 residential, commercial, and industrial customers Five electric generating stations with a total capacity of 4,700 MW TEC P Polk lk Power P Station St ti is the site of the regional reclaimed water project 3

4 Big Bend Power Station Bayside Power Station Phillips Power Station Polk Power Station 4

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7 < 0.2% 7

8 Capture process water and contact storm water sources, operate on-site water treatment facilities and beneficially reuse at all Tampa Electric Company generating stations Developed unique partnerships to produce alternate water supplies and promote energy and water conservation Reclaimed R l i d Water W Partnership P hi Florida Conservation and Technology C t (FCTC) Center 8

9 Filtration System y Ultrafiltration System Demineralizer Ch i l P Chemical Precipitation i it ti Clarification Breakpoint p Chlorination Filtration Brine Concentrator Forced d Circulation l Evaporator Reverse Osmosis First pass & second pass capabilities Recycle Water Ponds Oily Water Separator Onsite sewage t t treatment t plant l t Electrodeionization ((EDI)) Sand Filter Cooling Reservoir 9

10 Current Project j Participants p Southwest Florida Water Management District City of Lakeland/City of Mulberry/Polk County Tampa Electric Company Main Goals Provide water resource benefits to each participant Reduce current and future groundwater withdrawals within the Southwest Water Use Cautionary Area (SWUCA) Reduce nutrient loading to the Alafia River, Tampa Bay and other surface waters 10

11 Key Aspects of Project $120 Million Project $42 Million co-funded by y SWFWMD Capture reclaimed water from Lakeland s wetland treatment system Eli i Eliminate the h NPDES surface f water di discharge h off wetland treatment system ~15-mile 15 mile underground pipeline from City of Lakeland to Polk Power Station Two underground Injection wells used for disposal 20 MGD onsite water treatment system 11

12 Permitting i and Design 2009 First Well Construction Second Well 2011 Pipeline Construction 2012 Start Operation Dec 2013

13 Feet bls Injection Wells 52-inch Casing to inch Borehole 42-inch Casing to inch Borehole 28-inch Steel Casing to 3400 Corrosion Inhibitor Fluid in Annulus ~10,000 mg/l TDS 26-inch Borehole to 4400 Dual-Zone Monitoring Well 16-inch Casing to inch ID (7.54-inch OD, Box) Red Box 2500 FRP to 4400 Packer Assembly Cement 14-inch Reamed Borehole o e to 5300 Open Hole inch Pilot Hole to 5800 LEGEND 30-inch Borehole 24-inch Casing to inch Borehole 16-inch Steel Casing To 1100 (0.375-inch wall) PVC Sampling Tube 15-inch Borehole to inch ID FRP Casing to 3200 Cement filled Annulus to ~ inch Open Hole to 3400 Annular Fluid Carbon Steel Casing Fiberglass Reinforced Pipe (FRP) Packer Assembly TECO Polk Power Station - Exploratory Well and Monitoring Well Completion Details

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15 Florida Conservation & Technology Center Create a unique, world-class destination for all ages that celebrates the creation & sustainability of healthy natural environments - for wildlife & mankind through new energy and water solutions, Florida native plant & wildlife conservation & recreational & educational opportunities.

16 Florida Conservation & Technology Center Manatee Viewing Center Wildlife Viewing Tower Potential Future Interpretive Walking Trails Existing Interpretive Walking Trail Potential Future Viewing Tower Energy Technology Center Interpretive Canoe & Kayak Trails Welcome & Orientation Center Treetop Trails Tram Drive Boat Access Visitor Parking Interpretive Trail Canoe & Kayak Access Center for Conservation

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19 Water is critical for current and future generating system operations and expansion Lack of water could curtail electric power production and increase cost to customers Economic and operating impacts of new regulations on recycling and reuse Effluent Limitations Guidelines Numeric Nutrient Criteria (NNC) Migration of constituents from air to water changing regulatory environment 19

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