The Eastern Connecticut Resource Recovery Authority (“ECRRA”) was established as a public Authority under State law in 1990. ECRRA owns and operates, via an operating contract with Wheelabrator Lisbon, Inc., a 500 ton per day mass burn resource recovery facility located in Lisbon Ct. The City of Middletown (the “City”) is currently the sole municipal member of ECRRA. Facility construction was financed with $128 million of tax exempt revenue bonds issued by ECRRA in 1993 and the facility commenced commercial operation, on time and under budget, in January, 1996. The bonds are payable solely from net revenues generated by facility operations and neither ECRRA not the City have any obligation whatsoever for the repayment of debt principal and interest.
ECRRA is a separate and unrelated entity to the Connecticut Resource Recovery Authority (“CRRA”), which is one of several other public and private sector entities which also offer waste management and recycling services to Connecticut municipalities.
UNIQUE FEATURES OF ECCRA’S STRUCTURE
ECRRA was structured to offer several unique and beneficial features to its current and potential future municipal members. Neither the Authority nor Middletown is obligated to deliver more waste than the City itself may directly collect from time to time through its City Sanitation District. There is no “put or pay obligation” or flow control risk borne by any municipal participant. Furthermore, tip fees payable by the City and private haulers choosing to collect and deliver Middletown waste are effectively capped at a level not to exceed a fixed rate plus an annual CPI adjustment. Wheelabrator is obligated to provide sufficient waste to fill the capacity of the facility and to pay all facility costs and expenses. To date, waste generated in Middletown has represented approximately 10-15% of total waste processed.
Upon repayment of the revenue bonds in 2020 and simultaneous termination of its Wheelabrator service agreement, CL&P electric sale agreement and other project contracts, ECRRA, not Wheelabrator, will own the facility free and clear. ECRRA member Towns will be free to arrange for continued operation as a publicly owned and controlled facility under new operating contracts with Wheelabrator or other parties.
OVERVIEW OF THE EASTERN CONNECTICUT
RESOURCE RECOVERY AUTHORITY