FERC Grants Covanta Lease Extension for NJ Waste-to-Energy Facility

Date: June 21, 2016

Source: Covanta Holding Corp.

Covanta has been granted a 22-year extension to its lease for a 45-MW waste-to-energy power project in Rahway, N.J. by the Federal Energy Regulatory Commission (FERC). The Covanta Holding Corp. subsidiary leases the facility from the Union County Utilities Authority. The facility, which began commercial operation in June 1994, processes about 1,500 tons of solid waste each day, converting it into enough electricity to power about 30,000 homes. The regulator last extended the lease in 2011 to run until December 15, 2031; the lease now extends to December 15, 2053, according to a June 20 release. The extension does not affect Covanta's control of the power plant, which sells its output into the PJM market, a regional transmission organization (RTO) that coordinates the movement of wholesale electricity in parts of the Midwest and Mid-Atlantic states.

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