Toledo City Council next week will consider borrowing an additional $2.25 million to pay for increased engineering and construction costs for $26.6 million of infrastructure being installed at the Hoffman Road landfill to capture methane gas and pipe it to the city's wastewater treatment plant.
The methane gas, a natural by-product of rotting garbage, will be mixed with methane produced at the Bay View wastewater treatment plant.
The combined stream of gas will be used to power turbines that generate electricity.
The project, which is supposed to be operating by the spring of 2009, includes 1.7 miles of pipeline between the city landfill and the treatment plant.
Dave Leffler, Toledo's director of public utilities, said the 20-year loan will be borrowed at 3.25 percent interest.
The project is expected to generate 7 to 10 megawatts of electricity a day for years - enough to cover the 7 megawatts a day needed to power the wastewater treatment plant and then some.
The city expects to save $2 million a year in energy costs by generating its own power for the wastewater plant.