Wallingford, Conn. Waste-to-Energy Plant could be sold

Date: November 25, 2008

Source: News Room

Officials of towns surrounding the Wallingford waste-to-energy plant in south central Connecticut are said to be considering an offer from Covanta Energy, the plant's operator, to buy the facility from its owner the Connecticut Resources Recovery Authority (CRRA). The CRRA has until the end of the year to work out an arrangement under which the agency, or the five municipalities served, can buy the facility or sign an agreement to have Covanta continue operating it. But, if not decided by Jan. 1, Covanta can purchase the plant for $1, according to its contract. Paul Nonnenmacher, a spokesman for the quasi-governmental CRRA said that the agency will seek to "exhaust all reasonable possibilities to keep the plant under public ownership." However, Covanta is offering a lower tipping fee of $65 per ton which would climb each year according to the consumer price index. CRRA's offer includes a tipping fee of between $67.45 and $75.30 in 2010. The plant is estimated to be worth $23.5 million.

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