The harsh winter conditions paid off in a big way for the Lancaster County Solid Waste Management Authority and its recently purchased waste-to-energy facility in Harrisburg.
The Harrisburg incinerator, which is now known as the Susquehanna Resource Management Complex, beat budget projections on electric revenue by $1.4 million from Dec. 23 to Feb. 28, said Kathryn Sandoe, an authority spokeswoman.
“Electric prices spiked and we started the year on a strong financial note with the SRMC,” she said.
LCSWMA was selling into the spot market during that time — having assumed ownership of the facility Dec. 23 as part of the capital city’s asset monetization process under its debt recovery plan. The authority paid $129.9 million for the incinerator.
Since March 1, the authority has been selling power to the state Department of General Services. It has a 20-year agreement with the state. The purchase also was supported by 20-year waste disposal contracts with Harrisburg and Dauphin County.
Using actual figures for the first two months, the authority is projecting electric revenue of about $6.7 million this year at the SRMC, she said.
LCSWMA has budgeted total system revenue of about $80 million. Of that, SRMC’s budget is $28.8 million for the year, which includes the energy sales, tipping fees and metal recovery revenue, Sandoe said.