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Solid Waste: loss of capacity payments forces reserve use and a phased tipping‑fee increase
Summary
Solid waste leaders told commissioners the December expiration of the power‑purchase/capacity agreement removed a major recurring revenue stream; the department is brokering power sales on the spot market while using reserves and a proposed phased tipping‑fee increase to replace lost revenue
Solid Waste officials briefed the Board on FY26 after the December expiration of the prior power‑purchase agreement and capacity payments.
James Lewis (OMB) summarized that revenue from the power buyback and capacity payments fell from $77 million (FY24 actual, the year that included full capacity payments) to far smaller electricity sales in FY25 and that FY26 must rely on market brokering and reserve drawdowns. Solid Waste officials told commissioners they have begun brokering electricity on the…
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