the EPA reports that cities with WTE plants have a 33-percent recycling rate, compared with the 28-percent national average. the need for such compatible strategies is especially evident in the Northeast, where the 2001 closure of New York City's primary landfill has spurred a burgeoning market for economically sound and environmentally safe solid waste disposal.
Combustion reduces the volume of incoming waste by about 90 percent, minimizing the need for land-based disposal options and recovering energy content and ferrous and non-ferrous metals. It is estimated that each person in the United States generates approximately a ton of waste per year. By this measure, American Ref-fuel processes the waste discarded by approximately five million Americans annually.
ENERGY
While we continue to sell the majority of the energy produced in the form of electricity to local utilities, energy deregulation has created opportunities on the spot market. We are developing the skills to optimize the market of power in these changing market conditions as we begin the sale of power generated at out Essex facility into the open market in 2003.
At our Niagara Falls plant, we are expanding energy export capability by constructing another steam connection, in this case to Norampac Industries. Norampac has contracted with us for five years to purchase 600 million pounds of steam per year for use in producing corrugated paper. the project is targeted for a mid-2003 in-service date.
Coincident with that opportunity, we negotiated the ability to "opt out" of the current Power Purchase Agreement with Niagara Mohawk for certain periods at our choice. This allows us to take advantage of higher pricing when the market exceeds our base contract rate, thus providing additional flexibility during periods of market fluctuation.
We also executed a mutually advantageous amendment to the Power Purchase Agreement for electricity produced at our Hempstead plant. Under the new provision, the company is able to market more power at a reduced price, allowing the Long Island Power Authority to better meet its growing demand for electricity. Our Engineering group is in the prices of finalizing the design of several alternatives to capitalize on this opportunity.
