On June 20, the Federal Energy Regulatory Commission granted an April 22 request from Covanta Union LLC for authorization to extend an existing lease with the Union County Utilities Authority for a 45-MW waste-to-energy qualifying small power production facility located in Rahway, New Jersey.
Covanta Union is an indirect subsidiary of Covanta Energy LLC, which is a subsidiary of Covanta Holding Corp., a public utility holding company that is engaged in the energy and insurance businesses through its subsidiaries. Covanta Energy directly and indirectly owns, operates or has interests in 45 energy facilities in the United States.
Covanta Union sells the output of the facility into the PJM Interconnection market pursuant to its market-based rate authority. Covanta Union states that it also has affiliates that own or lease and operate generation facilities within the PJM market.
The term of the current lease agreement was extended to Dec. 15, 2031, under an agreement approved by the commission in November 2011. Under this new lease extension, Covanta Union and the Union County Utilities Authority would extend the term of the lease for an additional 22 years, ending on Dec. 15, 2053. Covanta Union said the extension would make no other substantive changes to the existing lease agreement.