RWS Signs New Power Contract Expected to Generate More Than $1 Million a Year in Additional Revenue

Board re-signs with Constellation Energy Group after seeking competitive bids

PORTLAND, Maine – The Board of Regional Waste Systems has negotiated and signed a new power contract that is expected to generate more than $1 million a year in additional revenue.

The Board re-signed with Constellation Energy Group, but not before completing a rigorous competitive bid process that enabled the non-profit solid waste management corporation to receive a highly favorable rate for the energy it produces.

The new power sales agreement, which will remain in effect for 31 months beginning today (July 1), calls for RWS to receive an average of 6.3 cents per kilowatt hour – a 47 percent increase from the average rate of 4.3 cents received over the past two years.

“The Board as well as the staff here at RWS was committed to and insistent upon obtaining the best possible rate for our power,” said Kevin Roche, the RWS general manager. “We accomplished that goal by actively soliciting competition, which compelled those who were interested in our business to really sharpen their pencils and offer us their best rate.”

Roche added that the rising price of a barrel of oil also played a role in the strong rate received by RWS.

He said RWS looks forward to a continued strong relationship with Constellation Energy Group, a Maryland-based Fortune 500 Company that owns energy-related businesses. Through a subsidiary, Constellation supplies power to customers of Central Maine Power.

Under terms of the contract, Constellation will buy 11 megawatts of electricity per hour, 24 hours a day, 365 days a year from RWS. Each year, RWS processes more than 170,000 tons of trash. The heat created by burning the waste generates steam, which is then transformed into enough electricity to meet the needs of 15,000 homes.

The new power sales agreement will provide RWS with $13.4 million in revenues over the 31-month life of the contract, an increase of more than $1 million per year. The increased revenues will help RWS, owned and operated by 21 cities and towns in Maine, keep costs down for taxpayers in member communities.

“This new contract is another positive sign for RWS and another indication that the financial interests of residents in our member communities are being looked after,” said Board Chairman Jeffrey Jordan of South Portland.

Regional Waste Systems is a non-profit solid waste management corporation that is owned and operated by 21 cities and towns (Bridgton, Cape Elizabeth, Casco, Cumberland, Falmouth, Freeport, Gorham, Gray, Harrison, Hollis, Limington, Lyman, North Yarmouth, Ogunquit, Portland, Pownal, Scarborough, South Portland, Waterboro, Windham and Yarmouth), and also has six associate member towns (Baldwin, Hiram, Naples, Parsonsfield, Porter and Standish.)

Besides the waste-to-energy facility, RWS operates the largest, most comprehensive municipal recycling program in the state, recycling more than 17,000 tons of recycled materials each year. Established in 1974 after Portland, South Portland, Cape Elizabeth and Scarborough decided to form a cooperative to handle their waste disposal, RWS today is governed by a 28-member board, consisting of officials appointed from member communities. RWS accepts solid waste and recycled materials from these communities. For more info, visit the RWS web site at www.regionalwaste.org.

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