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No performance bonuses for Covanta


Due to a failed stack test in May of last year, Covanta will receive no performance bonuses for the year.

By Dave Flaherty/The Oshawa Express

Covanta, the operator of the Durham York Energy Centre (DYEC), will not receive any performance adjustments for 2016.

Gioseph Anello, manager of waste planning and technical services for Durham Region, confirmed the company would not receive any extra cash under the DYEC’s project agreement.

Under that agreement, Covanta can gain or lose up to two per cent of the project’s annual $15 million operating fee for environmental performance adjustments.

The company can also receive or lose out on up to one per cent for service level adjustments.

Anello says staff from both Durham and York regions track Covanta’s performance throughout the calendar year and then assign a number of points to the company based on its performance in both categories.

For 2016, Anello said Covanta was given a zero per cent adjustment based on a number of factors.

The agreement states that “the exceedance of any environmental and operational aspects of any of the Certificates of Approval resulting in any Ministry of Environment fine/order/directive” will result in Covanta forfeiting any bonus payments for that calendar year.

As reported earlier in The Express, a stack test performed in May 2016 found that one of the boilers at the DYEC was emitting 13 times the amount of dioxins and furans permitted under the contract between Covanta and the regions.

“The overlying reason for the zero per cent adjustment was for the exceedance,” Anello says.

As for service level performance, Anello says Covanta had a very good safety record last year, but there was concerns regarding truck processing times, which led to another zero per cent adjustment.

Because Covanta was not given a negative adjustment, the company cannot dispute the regions’ ratings, Anello added.

Jill Stueck, manager of marketing and communications for Covanta, told The Express her company was in agreement with the ratings received from Durham and York.