Apr 1 - McClatchy-Tribune Regional News - Christian M. Wade Tampa Tribune, Fla.



For decades, the city and Tampa Electric Co. have been partners in a waste-to-energy project that has prevented millions of tons of trash from ending up in landfills.

Under an agreement, the McKay Bay Refuse-to-Energy plant incinerates about 1,000 tons of trash a day, converting it to 22 megawatts of electricity an hour. Some of that energy is used to run the plant; the rest is sold at a low rate to Tampa Electric.

Tampa Electric and city officials have been trying to hammer out an agreement to replace a contract set to expire in 2011. The new contract would run into 2024.

Those talks have collapsed, with both parties saying they want out of the deal.

 Mayor Pam Iorio has submitted a request to the city council, which the board is expected to consider at today's regular meeting, to terminate the contract with Tampa Electric effective August 2011, allowing the city to negotiate with another utility.

In September, the Florida Public Service Commission rejected a proposed agreement, saying Tampa Electric was offering to pay too much for power produced by the plant.

State regulators expressed concern that that cost would be passed along to consumers in higher rates and ordered both parties back to the negotiating table.

Under state and federal laws, the city can use only enough power to run the plant. Most of it is sold to TECO at wholesale prices.

City Attorney Chip Fletcher said the power rate was a major sticking point, and after several months of discussions the two sides could not agree on a rate.

Another concern was that the contract prohibits the city from providing electricity for anything other than the waste-to-energy plant, such as other city-owned buildings.

The city pays the residential rate to power its buildings.

A Tampa Electric spokesman said the two sides were not able to work out differences.

"It got to the point where we just couldn't reach an agreement that would have been acceptable to the PSC," Rick Morera said. "But we are still open to renewed talks."

The city council will meet at 9 a.m. in city hall, 315 E. Kennedy Blvd.

Reporter Christian M. Wade can be reached at (813) 259-7679.

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