Has the Time Come for More Publicly Operated WTE Facilities in the United States?

Abstract

When the current generation of U.S. waste-to-energy (WTE) facilities was developed during the 1980s and early 1990s, there were a large number of companies competing to design, build, operate and maintain them under a long term contract. Over the years, almost all of these firms have left the WTE business for a variety of reasons leaving essentially only two U.S. firms actively competing for renewed operating and maintenance (O&M) contracts for publicly owned WTE facilities. This consolidation has significantly reduced the level of competition for public owners who are interested in rebidding their WTE O&M contracts at the end of their initial or extended terms and, as a result, has the potential to increase the cost of service. Consolidation has likewise reduced the level of competition for potential new WTE projects in the U.S. This paper reviews the history of public sector operation of WTE facilities in the U.S., the unique challenges presented by public operation and whether it is time for more public owners to consider this alternative for existing WTE facilities in light of the lack of competition by private operating companies. Perceived risks and impediments to public operation of WTE facilities and suggestions on how to overcome them are presented as well as the benefits and opportunities available to public owners. The keys to a successful public WTE operating venture are also discussed based on the experiences of ecomaine, a consortium of 21 member municipalities in southern Maine that have operated and maintained their own 550 ton per day (tpd) WTE facility for more than 20 years. Public versus private operating practices for European WTE facilities are also explored as well as public ownership and operation of new WTE facilities including those based on alternative or emerging technologies.