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Need to Know

Maine Energy Firm, Casella Strike Deal

The Penobscot Energy Recovery Co. (PERC) and Casella Waste Systems have reached a deal under which Casella will deliver commercial waste from the region to Penobscot’s incinerator in Orrington, Maine.

The deal comes amid rancor between PERC and the Municipal Review Committee. The committee represents 187 Maine municipalities. PERC and the committee currently have an energy purchasing agreement that expires in 2018, but the committee is negotiating with Fiberight LLC to start a new facility.

The Casella deal, PERC says, will keep the facility viable after the contract with the municipalities expires.

The Bangor Daily News has the report:

Bob Knudsen, vice president of USA Energy Group, claims this agreement is enough to keep the PERC facility open after a lucrative energy purchasing contract expires in 2018.

The essence of the agreement, he added, is that Casella will provide enough waste as needed for PERC to stay viable, a practice called backfilling. PERC today burns around 309,000 tons of trash annually, but plans to operate in 2018 with only 210,000 tons, Knudsen said.

In talking points about the agreement he provided to the Bangor Daily News, Knudsen said this backfill would come from “all the commercial tons Casella collects in the PERC service area,” which includes, but is not limited to, Bangor, Brewer, Orono, Old Town, Hermon, Holden, Ellsworth, Hampden, Eddington and Belfast.

Read the full story here.

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