TECO Energy receives private letter ruling for synfuel operations
TAMPA, November 3, 2003
IRS gives the company a clean bill of health on Section 29
TECO Energy today reported that it has received its Private Letter Ruling (PLR) from the Internal Revenue Service for its Section 29 synthetic fuel production. The PLR, received by the company on Friday, confirms that synthetic fuel produced by TECO Coal is eligible for Section 29 credits and that its test procedures are in compliance with the requirements as outlined recently by the IRS.
Chairman and CEO Robert Fagan said, “We’re glad to finally put these issues behind us and move forward. The recent news from the IRS affirms the non-conventional fuels program adopted by Congress and validates TECO Coal’s proven production processes and compliance with all aspects of its PLR, as we expected.”
As a result of the PLR, TECO Energy has completed all subsequent events required on the sale of 49.5 percent of its synthetic fuel production. That transaction, funds for which have been in escrow, will make up to $68 million in cash available, further improving the company’s financial position.
TECO Energy, Inc. (NYSE: TE) is a diversified energy-related holding company based in Tampa. Its principal businesses are Tampa Electric, Peoples Gas, TECO Power Services, TECO Transport, TECO Coal and TECO Solutions.