As any regular reader of these pages knows, trash disposal is a big, confusing issue right now. Because I work in trash in every day, I want to give you my 2 cents.
I’ve been with the Penobscot Energy Recovery Company for 28 years, and I can tell you the PERC plant is in great shape and good to operate for many more years.
I also can attest to the skill and dedication of the 77 men and women who work here. Our plant is not a concept. It’s here, it runs well and it has a long history of recovering energy from materials that might otherwise end up in the ground.
We’ve done our jobs for years, with great concern for the environment and always staying in compliance with our air quality permits. In fact, a recent study indicated that the air in Bangor was among the cleanest in the country.
Furthermore, we received a U.S. Environmental Protection Agency award this spring for moving to a zero wastewater discharge program. This was not done at some outside request or for any particular economic benefit; it was done by PERC employees who believed they could do it, felt it was the right thing to do and worked hard to make it happen.
And if our employees represent a skilled workforce, our private partners bring decades of experience running electric utilities and generating plants, as well as decades of experience in waste hauling, transfer stations and composting. They know this business, and they have a sound plan for operating successfully after our contracts expire in 2018.
OK, the facility is here, it works, it’s environmentally responsible and its workforce and leadership are very experienced, so what’s the big deal about February of 2018?
Well, at that point in time the current above-market contract for the power generated by the facility runs out. This contract has been the reason the facility been pushed to process as much waste and generate as much electricity as possible for nearly 30 years.
This way of operating has generated substantial revenue that has been split among Emera Maine, the equity charter communities that collectively own 23 percent of PERC and the private partners that own the rest.
After the contract ends, the electricity generated by PERC will be worth less and sold at market rates. Although that doesn’t sound good, there are other factors to keep in mind. The facility will be paid off in 2018, so there won’t be a debt to pay off and “excess profits” will no longer be shared with Emera Maine to buy down the cost of the contract.
This will give us the freedom and flexibility to operate differently in the future. We will maximize the money we get paid by generating electricity when the prices are highest. This is called “peaking” or “load following.” When the prices are low, the facility will be preparing for the next peak by making fuel and completing maintenance.
We know we can do this, because there have been hundreds of instances over the years when we have operated at less than full capacity or shut down one of our boilers for maintenance, and we’ve never had any problems or been out of compliance with our permits.
In fact, many other plants like ours around the country operate in this way, and the manufacturers of our boilers and turbine have reviewed our future operating plans and have found them to be reasonable for our equipment.
Finally, PERC has committed to a tipping fee of $84.36 per ton for 15 years, adjustable only by the annual Consumer Price Index. Our contracts are uncomplicated and have no guaranteed delivery amounts. They are based on nearly three decades of operating experience and represent the best overall value with the least risk.
Our contracts also encourage source-separation of recyclable materials and organic waste, the most effective way to reduce the volume of waste that ends up in a landfill.
I encourage anyone making a decision on waste disposal options for their community to become well informed and objectively look at their options. I am confident they will conclude that staying with PERC is the most reliable, affordable and environmentally responsible choice.
Henry Lang of Lincolnville is a Maine Maritime Academy graduate and plant manager of the PERC facility in Orrington.