SPSA wants judge to settle Portsmouth dispute

PORTSMOUTH

The Southeastern Public Service Authority has asked a judge to help it resolve a dispute with the city over about $1.5 million in service fees Portsmouth wants to collect from the regional waste authority.

In June, the city notified the authority that the service fees were being assessed on its three facilities in Portsmouth - a power plant, a refuse-derived fuel plant and a parcel of land with a conveyor system that runs between the two.

The assessments go back to the 2006 tax year, according to the petition filed Sept. 24 in Circuit Court.

The authority disputes the fees, stating that it has operated its waste-to-energy facilities in Portsmouth for more than 20 years without having to pay service charge assessments.

City officials have said a review of the 1983 agreement with SPSA revealed that the authority agreed to pay certain charges and fees in lieu of taxes.

In its petition to the courts, SPSA's attorneys argue that the authority does not "have a sufficient ownership interest in the property" to allow for such assessments.

The attorneys say SPSA does not lease the power plant it acquired from the U.S. Navy, but operates it "pursuant to an easement on the property." SPSA makes a similar claim about its refuse-derived fuel facility in Portsmouth.

The authority also is arguing that, under state code, it is exempt from taxation and assessments.

Janie Bryant, (757) 446-2453, janie.bryant@pilotonline.com