Power Purchase Agreement

The electricity produced by PERC is sold to the Bangor Hydro Electric Company (Bangor Hydro).  Under the Power Purchase Agreement, Bangor Hydro has agreed to purchase all net electric power generated by the Facility until 2018.

Waste Disposal Agreement

PERC has contracts with 170+ communities to accept and process their MSW through 2018.  The waste disposal agreements guarantee approximately two thirds of the required MSW and refuse derived fuel (RDF).  The remaining one third of the MSW for fuel comes through the spot market. 

As of December 31, 2007, the Company had in place 170+ long-term waste disposal agreements with Maine Municipalities for disposal of MSW at the Facility.  Of these agreements, [90+] are Waste Disposal Agreements relating to approximately 90+ so-called "Charter Municipalities" that are represented by the MRC.  These 82 Waste Disposal Agreements are substantially similar in substance and, as currently in effect, terminate, subject to certain options granted to the Charter Municipalities, on March 31, 2018.

Residue Disposal and Bypass Agreements 

PERC has made various arrangements for the disposal of non-combustible and other waste, including front-end processing residue and non-processable waste, which it diverts-(No.) from the Facility (FEPR+N/P's) and waste or residue produced during the combustion process at the Facility (Residue).  Approximately 55,000 tons per year of FEPR+N/P'sand 50,000 tons per year of Residue are disposed of by landfilling.  Additionally, approximately 8,000 tons per year of ferrous material is disposed of through recycling.

Under the Amended and Restated Bypass Agreement with Juniper Ridge Landfill (JRL), which has a current term expiring February 1, 2018 for ash and March 1, 2018 for FEPRs and NPs,  JRL is obligated to accept delivery of unlimited tonnage from PERC.  PERC is obligated to make available 100% of the ash, FEPR and N/P's to Juniper Ridge Landfill.  During 2002, PERC paid a disposal fee of $40.82, 55.12 and 42.87 for FEPR, N/P's and ash, respectively.  The disposal fee is adjusted each year pursuant to a formula based upon the Consumer Price Index. 

Ash Disposal

Ash residue is the remaining by-product of the facility's energy generation process.  The facility disposes of its ash residue at a landfill located in Old Town, Maine that is licensed by the Maine Department of Environmental Protection and provides up to approximately fifteen years of disposal capacity.  In addition, at least one other commercial  landfill in Maine has additional capacity for disposal of the Facility's ash residue, and the State of Maine has the authority to develop, and has obtained the requisite approvals for, an additional landfill with ash residue disposal capacity.

Operation and Maintenance Agreement

Pursuant to the Operation and Maintenance Agreement dated as of June 30, 1989, as amended, ESOCO Orrington, Inc. operates and maintains the Facility.  The term of the agreement is five years with renewals for successive five-year terms.  The current five-year term expires on June 30, 2009.