Dive summary:
- The State Department of Corrections is going to stop purchasing steam from the Jackson County incinerator in Jackson, Mich., resulting in a loss of about $2.4 million in revenue for the county.
- The state decided not stop using steam from the incinerator because they can produce it on their own for 60% of the cost and the incinerator is not always reliable.
- The contract will end on Sept. 30; at about the same time, heavy bond debt on the incinerator will be paid off, giving the incinerator a better chance to recover from the loss of the contract.
From the article:
This isn’t the first time the department of corrections has tried to end the partnership.
In 2010, the county agreed to charge $200,000 per month instead of $300,000 per month, saving the contract. The bond debt, at that time, was $6 million and if an agreement had not been reached the incinerator most likely would have shut down in 2010.
Jackson County Administrator Michael Overton said he met with Randy Treacher, the department of corrections chief deputy director. Treacher was involved with the 2010 negotiations with the state when he served as the Jackson County Administrator. ...