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SPSA DEAL WITH COVANTA OFF: NYC TRASH TO VIRGINIA PORT A NO-GO
(CHESAPEAKE, VA.; October 26, 2006) – Accepting the recommendation of its executive committee and staff, the Southeastern Public Service Authority (SPSA) Board of Directors, on Wednesday, October 25, decided to discontinue pursuit of a contract with Covanta Energy. All work on the project has ceased.
"It is our understanding that Covanta must make their best and final proposal to New York City next week, so that will effectively end our consideration of this project," said SPSA Board of Directors Chair Leroy Bennett of Suffolk, Va. "However regarding our efforts with the City of Portsmouth, we will continue the newly established Portsmouth Citizen Advisory Committee as well as work on a memorandum of intent to continue to build our relationships there. Those items are planned regardless of the Covanta project."
SPSA Deputy Executive Director Louie Jordan said, "It should be understood that the only reason SPSA pursued this project was for the purpose of providing a large financial benefit to our member-communities by offsetting some of the upward pressure on the municipal tipping fee. The extensive work done by both SPSA staff and the City of Portsmouth indicated that this project could be done in an environmentally sensitive manner. The only reason we have chosen to halt this project is that Covanta is unable to provide the necessary guarantees that the tons delivered to SPSA will be sufficient to produce the financial returns necessary to justify this project to our constituents.”
Covanta Energy has negotiated in good faith with SPSA and Portsmouth throughout this process, he said, but the company is constricted by New York City’s position that it will only guarantee recovery of fixed capital costs, and not the variable costs, associated with the volume of waste. “All parties involved should be commended for the countless hours spent conducting due -diligence on this project and for their professional conduct in dealing with the sensationalism and misinformation that has been put out into the public."
SPSA’s plant converts solid waste into fuel that is sold primarily to the Norfolk Naval Shipyard and Dominion Virginia Power.
For additional information, contact Felicia Blow at 757 -420-4700.
SPSA has been providing
efficient and environmentally sound waste disposal services to the region
and its residents since 1985. SPSA’s solid waste management system
includes waste-to-energy, yard waste composting, drop-off and curbside
recycling as well as other recycling programs, household hazardous waste
collection, landfilling, landfill gas-to-energy and education programs.
This integrated waste management system enables SPSA to put 57% of the
waste it receives to a beneficial use, thus allowing the region to reduce
its dependence on landfills.
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