Hartford Business Journal

20 ConneCTiCuT Green Guide • SprinG 2014 www.CTGreenGuide.com When the six plants were constructed, they re- ceived lucrative power-purchase agreements from state utilities paying 10-20 cents per kilowatt hour for electricity. Now those contracts are expired or expiring, and plants receive the market rate of about 4 cents per kilowatt hour. As a solution, the trash-to-energy plants have pro- posed Connecticut make their renewable energy credits more valuable. The plants receive about 50 cents per credit while technologies like solar, wind, and even landfill gas get between $38-$58. Bringing trash-to-energy credits in line with other technologies would generate $10 to $25 million each for the three plant operators. "We should at least be on par with landfill gas, since waste-to-energy is better at avoiding greenhouse gases and generates more energy," said Steve Diaz, vice presi- dent of the New England region for New Jersey-based Covanta Energy. "Our environmental benefit is really significantly higher, and this is due really because we are able to keep waste out of landfills." The Connecticut General Assembly rejected previous proposals to increase the trash-to-energy credits. Malloy has a different idea. Malloy proposed legislation saying the state would enter into power purchase agreements with the plants, so they could get a consistent stream of revenue. Mu- nicipalities served by trash-to-energy operators could opt-in to the agreements as well. However, the con- tracts would pay closer to the utility standard service rate of 7-9 cents per kilowatt hour, about double the market rate but far below plants' previous lucrative agreements with the utilities. "The state is willing to put skin in the game," Mc- Cleary said. "This power is valuable, and we are willing to pay a fair market rate for it." Malloy's proposal also transforms CRRA into a leaner Trash-to-Energy Plants Trash handled Power Generated Plant operator (tons) (megawatt hours) Mid-CT (Hartford) CRRA 789,333 390,426 Bridgeport Wheelabrator 732,735 478,410 SeConn (Preston) Covanta 274,787 131,500 Bristol Covanta 198,086 106,622 Lisbon Wheelabrator 185,685 111,542 Wallingford Covanta 148,617 57,979 SouRCe: GoveRnMenT ADviSoRy ASSoCiATeS Covanta's Bristol facility sits on 18 acres. ConTRiBuTeD PHoTo John Vinson of the Covanta facility in Preston with the ash that results from the burning process. Covanta serves 42 Connecticut communities. PhoTo | STEVE LaSChEVER

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