But why tinker with success during challenging economic times when so many would envy our company's record? Among other reasons, we know that avoiding change is simply not an option in today's business world. Further, shifts in the independent power sector and waste markets that we serve are creating interesting opportunities. And finally, geographic separation within out company had long been an obstacle to alignment that needed correction.
PROTECTING WHAT WE HAVE
Even in these difficult economic times, given the volatility mentioned above, we're pleased to report that American Ref-Fuel continued to run all of our plants near capacity. During the last three years, we completed a major refurbishment of eight of our 19 boilers, overhauled five of our nine turbine generators, and embarked on a disciplined inspection and assessment protocol to ensure continued reliability of our equipment. In addition, we've entered 2003 with more than 90 percent of our municipal solid waste needs under contract. We accepted higher volumes of special waste last year than ever before as more customers turned to us for certified, secure destruction. We amended certain power contracts to provide for the ability to sell into merchant markets while in all cases maintaining competitive floor pricing. This economic stability was rewarded in late 2002 when major rating agencies reaffirmed American Ref-Fuel's investment grade credit rating.
RESPONDING TO OPPORTUNITY
Opportunities come in different shapes and sizes. In addition to amending power sales agreements to provide future marketing flexibility, we also amended several operating permits to similarly provide operating flexibility. We expanded our waste collection, transfer, and disposal capabilities. A new steam line is under construction at our Niagara facility to add a fifth steam customer by next summer. And although we acquired no new assets in 2002, the current business environment is providing many potential opportunities for well positioned companies like American Ref-Fuel. We will evaluate these options as we look to strengthen our portfolio for the future.
ALIGNING OUR FOCUS
The relocation of our headquarters office to New Jersey has already and will continued to produce the efficiencies and improved communications that we anticipated. In this era of very active cost management, the reduced overhead resulting from this move is important, but the non-economic benefits created by the improved alignment if the team will ultimately be the true measure of its success.
Simply put, the American Ref-Fuel management team is excited about our future. With enhanced alignment, solid plant performance brought about by recent improvements, a strong balance sheet, and a relentless drive to explore new opportunities, our preparation for "going the distance" has never been better. Sound execution will see us through. We thank all of our employees and their families, our investors, and all of the other stakeholders who contributed to our accomplishments in 2002. We need and appreciate your continued support.
John T. Miller
Chief Executive Officer
John M. O'Sullivan
Executive Vice President, Operations