Georgia Power has signed a long-term contract with Waste Management that will produce electricity from landfill gas. This contract will take effect after Georgia Public Service Commission approval.

Georgia Power and Waste Management Renewable Energy entered into a 10-year deal for electricity that will be generated from everyday household trash. The power will come from Waste Management’s new energy-generating facility at its Superior Landfill and Recycling Center in Savannah, Georgia.

According to US Environmental Protection Agency (EPA) data, the facility developed by Waste Management is among the largest in Georgia and the Southeast. The methane gas used to make electricity comes from natural decomposition of the garbage disposed at the landfill.

The agreement will provide Georgia Power with 100% of the renewable energy annually from Waste Management’s 6.4MW facility in Savannah, Georgia, as well as the associated renewable energy credits.

Georgia Power selected Waste Management from a number of independent renewable generators who submitted bids through the company’s green request for proposals issued in April 2009. The energy from Superior Landfill will be used to help grow Georgia Power’s Green Energy program.

Paul Pabor, vice president of renewable energy at Waste Management, said: “Landfill gas is a clean energy resource that has been endorsed by the US EPA as an environmentally wise alternative that reduces our reliance on fossil fuels.”

Landfill gas is produced when microorganisms break down organic material in the landfill. The resulting gas is comprised of approximately 50%-60% methane. Waste Management collects methane and uses it to fuel on-site engines or turbines, generating electricity to power surrounding homes and neighborhoods.

Georgia Power is working to increase its renewable energy portfolio both through the purchase of energy from renewable generators and through investments in self-owned renewable generation.

Additionally, Georgia Power will invest $43m annually in 18 different demand response and energy-efficiency programs. These programs are expected to reduce electricity demand by 900MW by 2013, or enough electricity to power 225,000 homes using 1,000 kilowatt-hours per month.